Tecnoglass Inc. Q4 FY2025 earnings call

• Strong 2025 performance with record revenues of $984 million. Single-family residential had record revenues of $403 million driven by expanding dealer network, geographic diversification, strong pricing, and vinyl product line momentum. Multifamily and commercial had $580 million in revenues from robust demand. Maintained industry-leading margin profile through pricing discipline and cost control despite tariffs and raw material costs. Ramped up vinyl windows portfolio and diversified manufacturing footprint via Continental Glass System acquisition. Generated strong cash flow, repurchased shares, and Board expanded share repurchase authorization by $100 million. - In 2025, multifamily and commercial had double-digit revenue growth driven by key markets and Continental Glass System acquisition. Backlog closed the year up 16% to $1.3 billion with a book-to-bill ratio of 1.1 times for 20 consecutive quarters. Single-family residential had record full-year revenues, dealership growth, geographic expansion, and vinyl product contributions. Orders received in the four-quarter period grew double digits year over year with January orders outperforming prior months. Showrooms expanded with Los Angeles showroom to open in Q1 2026. - 2026 product market backdrop: U.S. construction spending expected to grow 1% with residential spending up 2%, contractor sentiment in expansion territory, and strong backlog components. Geographic alignment with strong-performing regions supports growth outlook. Market share gains in new geographies and product segments expected to outperform market growth.

Single-family residential business had revenues growing to an all-time high of $403 million in 2025, contributing approximately 41% of total revenue ($984 million). Multifamily and commercial businesses had revenues of $580 million, contributing approximately 59% of total revenue. Single-family residential revenue grew from $372 million in 2024 to $403 million in 2025. Multifamily and commercial revenues grew to $580 million in 2025 driven by robust demand for high-performance products in high-end residential and luxury lodging projects. Full-year cash flow from operations was $136 million, and $118 million in shares were repurchased during the year, including $88 million in the fourth quarter.

Full year 2026 revenue outlook is in the range of $1.06 billion to $1.13 billion, representing ~11% growth at midpoint. Adjusted EBITDA outlook is in the range of $265 million to $305 million. First quarter expected to be softer with revenues picking up in second quarter and beyond. Capital expenditures projected to be in range of $60 to $75 million. Potential land purchase for new U.S. facility of ~$20 to $25 million if final investment decision made. Guidance excludes additional pricing actions and opportunistic hedging strategies.

Impact of tariffs and increased raw material costs. Sharp escalation in underlying aluminum costs independent of tariffs. Appreciation of Colombian peso impacting margins. Uncertainty in macroeconomic conditions affecting construction spending and affordability. Potential delays in project invoicing and execution. Uncertainty around demand trends and market conditions for new facility initiative.

Q: Santiago, can you give sense of first quarter sales, gross margin, EBITDA in line with Q4?

A: More or less in line with Q4, with shorter quarter due to scheduled maintenance shutdown.

Q: Talk about pricing actions not yet implemented, products and timing?

A: Jose Manuel says wait to see market reaction, competition not raising prices in residential so haven't raised yet.

Q: Quantify vinyl and showroom contribution in 2025 and 2026?

A: Vinyl was ~$10 million in 2025, expected to be 2.5 - 3 times that in 2026. Showrooms had ~$10 million in 2025, expected to be $30 - $35 million in 2026.

Q: Expect U.S. commercial revenue to accelerate in 2026?

A: Yes, commercial to grow double digits or more due to big backlog in Florida and expanding reach.

Q: Residential revenue assumption at midpoint?

A: Legacy Florida business up low single digits, rest from vinyl and non-Florida opportunities, double-digit growth year over year.

Q: Cadence of revenues and impact of aluminum?

A: Revenues back-loaded with each sequential quarter incremental. Aluminum impact alleviates in second half under upside scenario if prices taper off.

Q: Vinyl upside potential?

A: 3X is minimum, expect to do $5 million a month from second half of 2026 and at least $10 million next year