Tecnoglass (NYSE:TGLS) reported record second-quarter revenue as growth in both its single-family residential and multifamily and commercial businesses drove its backlog to a new high. The company also narrowed its full-year outlook, citing continued demand and pricing benefits while accounting for elevated aluminum costs and a stronger Colombian peso.
Total second-quarter revenue rose 15.6% year over year to a record $295.3 million. Multifamily and commercial revenue increased 15.7% to $168.8 million, while single-family residential revenue grew 15.4% to a record $126.5 million.
Record Backlog and Geographic Expansion
Backlog increased 15.6% from a year earlier to a record $1.4 billion. Chief Operating Officer Chris Daes said the company’s book-to-bill ratio was 1.1, marking its 23rd consecutive quarter above 1.0.
Chris Daes attributed the backlog strength in part to minimal project cancellations, noting that Tecnoglass generally installs windows when projects are already well advanced. The company has also shifted toward larger, higher-end projects, including luxury condominiums and upscale lodging, which management said have been less sensitive to changes in interest rates.
Geographic diversification continued to increase. Florida represented about three-quarters of second-quarter backlog, down from about 80% in the first quarter and nearly 90% a year earlier. Management said the decline in Florida’s mix reflected growth in new markets rather than weaker conditions in the state, where it continues to expect strong demand through the remainder of the year.
In single-family residential, Tecnoglass said approximately 65% to 70% of revenue is related to repair and remodeling demand, which it views as more resilient and less dependent on mortgage rates. Its dealer network expanded more than 20% over the past 12 months, supported by five- to six-week lead times.
The company generated about $15 million of single-family revenue outside Florida year to date, putting it on pace toward its roughly $30 million full-year target. Its Los Angeles showroom is expected to open in late September, becoming the company’s fifth showroom outside Florida and seventh overall. The location will support the West Coast launch of the Legacy Lite aluminum window line.
Tecnoglass also said its vinyl product line continued to gain traction and has more than doubled the company’s addressable market.
Margins Hit by Aluminum, Currency and Tariff Costs
Adjusted EBITDA fell to $51.7 million, or 17.5% of revenue, from $79.8 million, or 31.2%, in the prior-year quarter. Gross margin declined to 37.3% from 44.7%.
Chief Financial Officer Santiago Giraldo said margins were pressured by a roughly 77% year-over-year increase in the average all-in U.S. aluminum price, a 23% increase in Colombia’s minimum wage at the start of the year, and a Colombian peso that appreciated about 14% from a year earlier. The quarter also included approximately $700,000 of severance costs tied to headcount reductions under the company’s automation and efficiency initiatives.
SG&A expenses increased to $73.5 million, or 24.9% of revenue, from $53.1 million, or 20.8% of revenue, a year earlier. Giraldo said the increase primarily reflected approximately $17 million of expenses tied to Section 232 tariffs on finished aluminum windows, in addition to higher transportation, commissions and personnel costs.
Management said the May residential pricing action, which included a 7% adjustment, began affecting invoiced orders near the end of the second quarter. The benefit is expected to build during the third quarter and through September. Pricing on commercial and multifamily projects is expected to flow through more gradually because current revenue comes from backlog priced before May.
- Smaller, quick-turn commercial projects are expected to begin reflecting newer pricing late in 2026.
- Larger commercial projects are expected to begin seeing the pricing benefit in the second and third quarters of 2027.
- Tecnoglass expects third-quarter gross margin to be roughly flat to slightly higher than the second quarter.
Giraldo said the stronger peso was the largest factor behind the reduced EBITDA outlook compared with the company’s prior expectations. The currency was approximately COP 3,200 per dollar during the call, its strongest level since June 2019. Tecnoglass said it had already purchased aluminum needs for the rest of the year at relatively flat levels, leaving currency movements as the primary variable for the second half.
Outlook and Capital Plans
Tecnoglass narrowed its 2026 revenue guidance to $1.08 billion to $1.12 billion and projected adjusted EBITDA of $220 million to $230 million. The company expects third-quarter revenue of roughly $280 million, a sequential decline from the second quarter driven primarily by an estimated $15 million to $20 million of residential orders pulled forward ahead of the May price increase.
Management nevertheless expects year-over-year revenue growth in each remaining quarter of 2026 and reiterated its expectation for double-digit annual revenue growth.
The company said its automation and efficiency program had reduced headcount by 10% as of the end of June, with additional automation expected to begin operating by year-end. Management expects pricing initiatives and automation savings to fully offset the tariff impact in 2027.
Capital expenditures are expected to total $80 million to $95 million in 2026, including $20 million to $25 million for land associated with a potential U.S. facility. Tecnoglass expects to complete the land purchase in the coming weeks while continuing discussions with state and local authorities regarding project incentives. Management said any construction would proceed in phases and be evaluated based on demand, returns and market conditions.
The company ended the quarter with approximately $360 million in total liquidity and a net leverage ratio of 0.6x. Operating cash flow was approximately $4.4 million, affected by about $26 million in annual Colombian income-tax payments, tariff-related payments and strategic purchases of U.S.-sourced aluminum. Giraldo said the company expects operating cash flow to improve in the second half of the year.
About Tecnoglass (NYSE:TGLS)
Tecnoglass, Inc is a vertically integrated designer, manufacturer and distributor of architectural glass, windows and aluminum products for the construction industry. The company’s product portfolio includes tempered, laminated and insulated glass units, high‐performance aluminum windows, curtainwall systems and storefront solutions tailored to commercial, residential and institutional projects.
Established in 1994 as a family‐run enterprise in Barranquilla, Colombia, Tecnoglass has grown through significant investments in automated production lines, research and development, and international quality certifications.
