Tecnoglass (TGLS) investor relations material

Executive summary

• Achieved record Q1 2026 revenue of $249.0 million, up 12.0% year-over-year, driven by strong commercial and multi-family growth, expanding vinyl product lines, and robust backlog of $1.36 billion, up 19.1% year-over-year.

• Net income was $31.9 million ($0.71 per diluted share), with adjusted net income of $34.6 million ($0.78 per diluted share); adjusted EBITDA was $61.5 million (24.7% margin), down from $70.2 million (31.6%) in the prior year.

• Gross margin declined to 38.5% from 43.9% year-over-year, impacted by higher aluminum costs, wage increases, FX headwinds, and an unfavorable revenue mix.

• U.S. redomiciliation and automation initiatives are underway, with completion expected by mid-2026 to enhance competitiveness and investor access.

• Strategic investments in supply chain, automation, and new facility planning support long-term growth and geographic diversification, with nearly 25% of backlog outside Florida.

Financial highlights

• Total Q1 2026 revenue was $249.0 million, a 12.0% year-over-year increase and a first-quarter record, with U.S. revenues comprising 95% of total.

• Adjusted EBITDA was $61.5 million (24.7% margin), and net income was $31.9 million; basic and diluted EPS were $0.71, with adjusted EPS at $0.78.

• SG&A rose to 20.4% of revenue, including a one-time $2.9 million Colombian wealth tax and higher personnel costs.

• Operating cash flow was $6.7 million, reflecting inventory build for tariff mitigation; cash and cash equivalents at quarter-end were $91.1 million.

• Share repurchases totaled $16.5 million in Q1, with $92.5 million remaining under the buyback program; $6.7 million paid in dividends.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $1.06–$1.13 billion; adjusted EBITDA guidance at $225–$245 million.

• Guidance incorporates new 10% U.S. tariff on finished aluminum window imports and FX trends.

• Pricing actions and operational efficiencies are expected to offset tariff headwinds by early Q3, with full neutralization targeted for 2027.

• Capital expenditures projected at $60–$70 million, plus $20–$25 million for U.S. facility land purchase.

• Management expects continued positive operating cash flow and sufficient liquidity to meet obligations over the next twelve months.