Tecnoglass Reports Record Fourth Quarter and Full Year 2024 Results

- Full Year Revenues Increased 6.8% to a Record $890.2 Million Through Entirely Organic Growth, Including Geographical Expansion and Entry into Attractive Vinyl Market -

- Full Year Single-Family Residential Revenue Grew to a Record $372.1 Million, Up 10.9% Year-Over-Year -

- Full Year Net Income of $161.3 Million, or $3.43 Per Diluted Share; Full Year Adjusted Net Income¹ of $171.6 Million, or $3.65 Per Diluted Share -

- Full Year Adjusted EBITDA¹ of $275.8 Million, Representing 31.0% of Revenues -

- Full Year Gross Profit of $380.0 Million, Representing 42.7% of Revenues -

- All-Time High Quarterly and Full Year Cash Flow from Operations of $61.1 Million and $170.5 Million Respectively, Representing 61.8% of Adjusted EBITDA¹ for the Year -

- All-Time Low Net Leverage Ratio, with a Net Cash Position at Year End; Paid Down $65 Million in Debt Throughout 2024 -

- Backlog Expanded 27.6% Year-Over-Year to a Record $1.1 Billion -

- Returned $19.7 Million to Shareholders Through Dividend Payments During the Year -

- Introduces Full Year 2025 Outlook for 10% Revenue Growth and 16% Adjusted EBITDA Growth at the Midpoint of Guidance -

Miami, FL, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Tecnoglass, Inc. (NYSE: TGLS) (“Tecnoglass” or the “Company”), a leading producer of high-end aluminum and vinyl windows and architectural glass for the global residential and commercial end markets, today reported financial results for the fourth quarter and full year ended December 31, 2024.

José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “I am thrilled with our performance in 2024, as we delivered another year of record results driven by market share gains in our single-family residential business, continued momentum in multi-family/commercial demand, and the operational advantages of our vertically integrated business model. Our investments in automation and capacity enhancements continue to yield significant returns, driving operational efficiencies and enabling us to swiftly adapt to growing demand for our innovative products. Despite currency headwinds in the first half of the year, we maintained industry-leading margins while generating record operating and free cash flow, demonstrating the resilience of our business model. Our strong capital position enabled us to achieve a net cash position at year end while also returning significant capital to shareholders throughout the year. With a record backlog and our strategic growth initiatives gaining momentum, we remain confident in our ability to drive further value creation through continued market share gains and operational discipline.”

Christian Daes, Chief Operating Officer of Tecnoglass, added, “We were pleased to build on our momentum throughout 2024 to deliver record results for both the fourth quarter and full year. Demand remained robust across our end markets, with strong commercial activity supported by increased quoting and bidding, driving our backlog to a record $1.1 billion at year-end, providing visibility well into 2026. The initial ramp-up of our vinyl window deliveries in the second half of the year added another growth driver to our business, which we expect to accelerate during 2025. We are mindful of the industry wide risks associated with the proposed 25% U.S tariffs on imports of aluminum and aluminum components of manufactured goods that may be implemented in March 2025. While the implementation of such tariffs is still uncertain, we have already identified several actions we think will mitigate any negative impacts, and expect a more favorable pricing environment to largely offset such impacts. We remain committed to gaining additional share and expanding our geographic presence by advancing our product innovation, growing our showroom network, and maintaining our industry-leading customer service. We are confident that these factors, along with our strong industry relationships and structural competitive advantages, collectively position us well to create additional value in the years ahead.”

Fourth Quarter 2024 Results

Total revenues for the fourth quarter of 2024 increased 23.1% to a quarterly record of $239.6 million, compared to $194.6 million in the prior year quarter. Multi-family/commercial revenues grew 24.3% year-over-year to record levels given continued strong activity within key markets. Single-family residential revenues increased 21.3% year-over-year, reflecting continued market share gains through geographic expansion and an expanded product offering. Additionally, the Company experienced a benefit from the tail end of order flow derived from the expiration of the Florida sales tax waiver at the end of June. Changes in foreign currency exchange rates had an adverse impact of $0.3 million on total revenues in the quarter.

Gross profit for the fourth quarter of 2024 was $106.5 million, representing a 44.5% gross margin, compared to gross profit of $83.0 million, representing a 42.6% gross margin, in the prior year quarter. The year-over-year increase in gross margin reflected the benefits from stronger pricing, stable raw material costs, operating leverage and more favorable foreign exchange rates.

Selling, general and administrative expense (“SG&A”) was $39.4 million for the fourth quarter of 2024 compared to $32.4 million in the prior year quarter, with the increase primarily attributable to higher transportation and commission expenses associated with the revenue growth in the quarter, higher personnel expenses given overall salary adjustments that took place at the beginning of the year, and certain non-recurring expenses related to the Company’s previously announced strategic review. As a percent of total revenues, SG&A was 16.4% for the fourth quarter of 2024 compared to 16.7% in the prior year quarter, primarily due to the aforementioned factors.

Net income was $47.0 million, or $1.00 per diluted share, in the fourth quarter of 2024 compared to net income of $36.3 million, or $0.77 per diluted share, in the prior year quarter, including a non-cash foreign exchange transaction loss of $0.8 million in the fourth quarter of 2024 and a $0.2 million loss in the fourth quarter of 2023. These non-cash losses relate to the accounting re-measurement of U.S. Dollar denominated assets and liabilities against the Colombian Peso as functional currency.

Adjusted net income¹ was $49.3 million, or $1.05 per diluted share, in the fourth quarter of 2024 compared to adjusted net income¹ of $37.7 million, or $0.80 per diluted share, in the prior year quarter. Adjusted net income¹, as reconciled in the table below, excludes the impact of non-cash foreign exchange transaction gains or losses and other non-core items, along with the tax impact of adjustments at statutory rates, to better reflect core financial performance.

Adjusted EBITDA¹, as reconciled in the table below, was $79.2 million, or 33.1% of total revenues, in the fourth quarter of 2024, compared to $62.0 million, or 31.8% of total revenues, in the prior year quarter. The improvement was driven by higher revenues and improved gross margins. Adjusted EBITDA¹ in the fourth quarter of 2024 included a $0.4 million contribution from the Company’s joint venture with Saint-Gobain, compared to $1.4 million in the prior year quarter.

Full Year 2024 Results

Total revenues for the full year 2024 increased 6.8% to a record $890.2 million compared to $833.3 million in the prior year. Changes in foreign currency exchange rates had a negligible impact on total revenues in the year.

Gross profit for the full year 2024 was $380 million, representing a 42.7% gross margin, compared to gross profit of $390.9 million, representing a 46.9% gross margin, in the prior year. The year-over-year change in gross margin reflected an unfavorable foreign exchange impact and higher salary expenses, partially offset by stronger pricing, stable raw material costs, and operating leverage. Operating income for the full year 2024 was $227.0 million compared to $259.8 million in the prior year. Net income for the full year 2024 was $161.3 million, or $3.43 per diluted share, compared to net income of $182.9 million, or $3.85 per diluted share, in the prior year. Adjusted net income¹ for the full year 2024 was $171.6 million, or $3.65 per diluted share, compared to $189.3 million, or $3.98 per diluted share, in the prior year. Adjusted EBITDA¹ for the full year 2024 was $275.8 million, or 31.0% of total revenues compared to $304.1 million, or 36.5% of total revenues, in the prior year.

Cash Generation, Capital Allocation and Liquidity

Cash provided by operating activities for the full year 2024 was $170.5 million, primarily driven by effective working capital management. Capital expenditures of $79.6 million in the year included scheduled payments on previous investments, and a payment for the Miami headquarters and the associated flagship showroom.

During 2024, the Company returned capital to shareholders through an aggregate of $19.7 million in cash dividends. As of February 27, 2025, the Company has approximately $76.5 million remaining under its current share repurchase program.

The Company ended 2024 with total liquidity of approximately $305.0 million, including $134.9 million of cash and cash equivalents and $170.0 million of availability under its revolving credit facilities. Given the Company’s strong cash generation, it repaid approximately $65.0 million in debt during the year, finishing 2024 with a net cash position.

Full Year 2025 Outlook

Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, “Based on our strong execution through 2024 and the visibility provided by our record backlog, we are introducing our full year 2025 outlook for revenues to be in the range of $940 million to $1.02 billion, representing growth of approximately 10% at the midpoint of the range. Additionally, we are introducing our Adjusted EBITDA¹ target for the range of $300 million to $340 million. The implied Adjusted EBITDA¹ margin of 32.7% at the midpoint assumes a full year gross margin in the low to mid 40% range, along with continued strong cash flow generation. This outlook is predicated on stable Colombian peso exchange rates within the current range, continued momentum in our vinyl-related revenues and stable activity in short-term commercial projects, supported by solid bidding and quoting activity. We expect our planned pricing actions, operating leverage, and efficiency initiatives to more than offset anticipated headwinds from higher installation revenues and salary increases. This outlook also incorporates the assumption that the impact from alumium or other tariffs is largely offset through alternative raw material supply sources or through more favorable price arrangements with our clients. We enter 2025 with strong momentum that supports our confidence in delivering another year of profitable growth."

Webcast and Conference Call

Management will host a webcast and conference call on February 27, 2025, at 10:00 a.m. Eastern time to review the Company’s results. The conference call will be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the call and view the slides, please visit the Investor Relations section of Tecnoglass’ website at www.tecnoglass.com. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. For those unable to access the webcast, the conference call will be accessible by dialing 1-833-816-1170 (domestic) or 1-412-317-0566 (international). Upon dialing in, please request to join the Tecnoglass Fourth Quarter 2024 Earnings Conference Call.

If you are unable to listen live, a replay of the webcast will be archived on the website. You may also access the conference call playback by dialing 1-844-512-2921 (Domestic) or 1-412-317-6671 (International) and entering passcode: 10196427.

About Tecnoglass
Tecnoglass Inc. is a leading producer of high-end aluminum and vinyl windows and architectural glass serving the multi-family, single-family, and commercial end markets. Tecnoglass is the second largest glass fabricator serving the U.S. and the #1 architectural glass transformation company in Latin America. Located in Barranquilla, Colombia, the Company’s 5.8 million square foot, vertically integrated, and state-of-the-art manufacturing complex provide efficient access to nearly 1,000 customers in North, Central and South America, with the United States accounting for 95% of total revenues. Tecnoglass’ tailored, high-end products are found on some of the world’s most distinctive properties, including One Thousand Museum (Miami), Paramount (Miami), Salesforce Tower (San Francisco), Via 57 West (NY), Hub50House (Boston), Aeropuerto Internacional El Dorado (Bogotá), One Plaza (Medellín), Pabellon de Cristal (Barranquilla). For more information, please visit www.tecnoglass.com or view our corporate video at https://vimeo.com/134429998.

Forward Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Tecnoglass’ current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of Tecnoglass’ business. These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass’ filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that Tecnoglass’ financial results in any particular period may not be indicative of future results. Tecnoglass is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events and changes in assumptions or otherwise, except as required by law.

¹ Adjusted net income (loss) and Adjusted EBITDA in both periods are reconciled in the table below.

Investor Relations:
Santiago Giraldo / CFO
305-503-9062
investorrelations@tecnoglass.com

Tecnoglass Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)

Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except share and per share data)
(Unaudited)

Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands) / (Unaudited)

Revenues by Region
(Amounts in thousands)
(Unaudited)

Reconciliation of Non-GAAP Performance Measures to GAAP Performance Measures
(In thousands)
(Unaudited)

The Company believes that total revenues with foreign currency held neutral, which are not performance measures under generally accepted accounting principles (“GAAP”), may provide users of the Company's financial information with additional meaningful bases for comparing the Company's current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. Management uses such performance measures in managing and evaluating the Company’s business. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles generally accepted in the United States.

Currency impacts on total revenues for the current quarter have been derived by translating current quarter revenues at the prevailing average foreign currency rates during the prior year quarter, as applicable.

Reconciliation of Adjusted EBITDA and Adjusted net (loss) income to net (loss) income
(In thousands, except share and per share data) / (Unaudited)

Adjusted EBITDA and adjusted net (loss) income are non-GAAP performance measures. Management believes Adjusted EBITDA and adjusted net (loss) income, in addition to operating profit, net (loss) income and other GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that are not directly related to the Company’s core operating performance. Investors should recognize that Adjusted EBITDA and adjusted net (loss) income might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP.

Reconciliations of the non-GAAP measures used in this press release are included in the tables attached to this press release, to the extent available without unreasonable effort. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. Items excluded to arrive at forward-looking non-GAAP measures may have a significant, and potentially unpredictable, impact on our future GAAP results.

A reconciliation of Adjusted net (loss) income and Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G follows, with amounts in thousands: