Tecnoglass Inc.
For the period ended Mar 31, 2026. Filed May 8, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 8, 2026
TGLS$43.94-2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001493152-25-021288
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001493152-26-021974
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 71 previous paragraphs and 42 current paragraphs.
22 unchanged; 18 reworded; 2 added; 28 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Operating expenses increased $8.4 million, or 19.8%, from $42.5 million to $50.9 million for the quarters ended March 31, 2025, and 2026, respectively. The increase resulted primarily from increased personnel cost, on higher salaries and a stronger Colombian Peso. Additionally the Government of Colombia imposed a one-time, non-recurring $2.9 million wealth tax on larger Colombian companies in order to subsidy certain unexpected climate related emergencies. This measure is currently being challenged under the Supreme Court. These increases were partially offset by a $1.9 million recovery of previously paid import tariffs recorded as a reduction to selling expense during the three months ended March 31, 2026 on certain products imported to the United States under the International Emergency Economic Powers Act after the U.S. Supreme Court ruled that certain tariffs imposed under the IEEPA were not valid in February 2026.
Current report
Financing activities also reflected gross debt proceeds of $39.4 million and repayments of $15.3 million, mainly used to repurchase $16.4 million of our stock during the three months ended March 31, 2025, leaving $92.5 million remaining under our $250 million Share Repurchase Program.
Removed paragraphs (28)
Previous report
On May 3, 2019, we consummated the joint venture agreement with Saint-Gobain, acquiring a 25.8% minority ownership interest in Vidrio Andino, a Colombia-based subsidiary of Saint-Gobain, solidifying our vertical integration strategy by acquiring an interest in the first stage of our production chain, while securing ample glass supply for our expected production needs. Additionally, in April 2019, we acquired a 70% equity interest in ESMetals, which has been consolidated in our financial statements since. In November 2023, we acquired the remaining 30% equity interest in ESMetals. ESMetals is a Colombian entity that serves as a metalwork contractor to supply us with steel accessories used in the assembly of certain architectural systems as part of our vertical integration strategy.
Previous report
Operating expenses increased $5.8 million, or 13.9%, from $41.5 million to $47.3 million for the quarters ended September 30, 2024, and 2025, respectively. The increase resulted primarily from recent Tariffs on imports into the U.S. which generated $1.4 million expense during the quarter ended September 30, 2025, lower than the $8.2 million expense on tariffs during the three months ended June 30, 2025, mainly related to our American sourced aluminum initiative. Additionally, selling, general and administrative expenses increased nominally given higher transportation and commission expenses on incremental revenues.
Previous report
Loss on debt extinguishment
Previous report
In September 2025, the Company entered into a new Senior Secured Credit Facility to replace its prior credit agreement dated November 2021. The new facility transitions the Company from a term-loan-plus-revolver structure to a fully committed revolving facility and (i) increases total committed borrowing capacity from $150 million to $500 million, (ii) reduces borrowing costs by approximately 25 basis points, and (iii) extends the initial maturity date by five years to December 2030. Borrowings under the new facility bear interest at the Secured Overnight Financing Rate (SOFR) with no floor, plus a spread of 1.25%, based on the Company’s net leverage ratio. The effective interest rate for this facility, including deferred issuance costs, is 5.67% as of September 30, 2025. In connection with the establishment of the new facility, the Company incurred total costs and fees of $2,783 which were capitalized as deferred financing costs.
Previous report
The transaction was accounted for as a debt extinguishment in accordance with ASC 470-50. As a result, the Company recognized a loss on extinguishment of debt of $1,354, representing the write-off of the remaining unamortized deferred financing costs related to the prior credit facilities and termination costs associated with closing the previous facility.
Previous report
Comparison of nine-month periods ended September 30, 2025 and 2024
Previous report
Revenues
Previous report
Operating revenues during the nine months ended September 30, 2025, was $738.3 million, compared to $650.6 million during the nine months ended September 30, 2024, an increase of $87.7 million or 13.5%, year over year. Strong revenues during the first half of 2025 were driven by strong activity in the U.S market, where revenues increased $79.4 million, or 12.8% year over year, to $710.3 million 2025. The increase was driven by higher residential revenues, up $33.4 million, or 12.0% year over year, resulting from strong demand momentum since late 2024. U.S. commercial market revenues increased $46.0 million, or 13.4% year over year, as we continue to execute our growing backlog. Revenues from Latin America and the Caribbean increased $8.2 million, or 28.6% year over year.
Previous report
Gross profit
Previous report
Gross profit during the nine months ended September 30, 2025, was $323.2 million, an increase of $49.7 million, or 18.2%, from $273.5 million during the nine months ended September 30, 2024. The gross profit margin during the nine months ended September 30, 2025, increased to 43.8% from 42.0% during the first nine months of 2024, primarily related to better pricing on certain residential market products, and improved operating leverage. Furthermore, a 3.8% depreciation of the Colombian Peso impacting our costs denominated in Colombian Pesos against our predominantly US Dollar revenue stream helped to partially offset the 9.5% salary increases set at the beginning of the year.
Previous report
Expenses
Previous report
Operating expenses increased $29.3 million, or 25.8%, from $113.6 million to $142.9 million for the nine months ended September 30, 2024 and 2025, respectively. The increase was mainly driven by recent Tariffs on imports into the U.S. which generated $13.7 million expense, administrative salary adjustments. Additionally, the nominal increase was driven by administrative salary adjustments and higher transportation and commission expenses related to higher revenues.
Previous report
Other operating income
Previous report
During the nine months ended September 30, 2025, the Company recorded other operating income of $5.6 million mainly related to a gain on the sale of an aircraft and the recognition of a refund related to Employee Retention Credits (ERC) under government relief programs. There was no comparable income recorded during the prior-year period.
Previous report
During the nine months ended September 30, 2025, and 2024, the Company recorded non-operating income of $2.6 and $5.2 million, respectively. Non-operating income for the period is comprised primarily of interest income from short-term investments, income from rental properties and gains on sale of scrap materials as well as non-operating expenses related to certain charitable contributions outside of the Company’s direct sphere of influence.
Previous report
During the nine months ended September 30, 2025, the Company recorded a non-operating net gain of $2.2 million associated with foreign currency transactions, compared to a net loss of $4.9 million during the nine months ended September 30, 2024.
Previous report
Loss on debt extinguishment
Previous report
In September 2025, the Company entered into a new Senior Secured Credit Facility to replace its prior credit agreement dated November 2021. The new facility transitions the Company from a term-loan-plus-revolver structure to a fully revolving facility and (i) increases total committed borrowing capacity from $150 million to $500 million, (ii) reduces borrowing costs by approximately 25 basis points, and (iii) extends the initial maturity date by five years to December 2030. Borrowings under the new facility bear interest at the Secured Overnight Financing Rate (SOFR) with no floor, plus a spread of 1.25%, based on the Company’s net leverage ratio. The effective interest rate for this facility, including deferred issuance costs, is 5.67% as of September 30, 2025. In connection with the establishment of the new facility, the Company incurred total costs and fees of $2,783 which were capitalized as deferred financing costs.
Previous report
The transaction was accounted for as a debt extinguishment in accordance with ASC 470-50. As a result, the Company recognized a loss on extinguishment of debt of $1,354, representing the write-off of the remaining unamortized deferred financing costs related to the prior credit facilities and termination costs associated with closing the previous facility.
Previous report
Interest Expense
Previous report
Interest expense and deferred cost of financing decreased by $1.1 million, or 18.2%, to $4.9 million for the nine months ended September 30, 2025, from $5.9 million in the prior-year period, primarily reflecting the $30 million voluntary prepayment made to reduce the Company’s debt balance and the benefit from hedge accounting on the Company’s interest rate swaps during the first half of the year. Following the discontinuation of hedge accounting upon the replacement of the prior credit facility with the new revolving facility in September 2025, the related gains on the swaps were no longer offset against interest expense, resulting in a higher reported amount during the third quarter compared to the first half of the year.
Previous report
Following the discontinuation of hedge accounting for the interest rate swap contracts, changes in the fair value of these instruments, as well as ongoing periodic settlements on these instruments, are now recognized directly through earnings within Derivative financial instruments gain (loss). The Company continues to apply hedge accounting to its foreign currency forward contracts used to hedge forecasted transactions, that as of September 30, 2025 has a highly effective relationship with the hedged transaction under ASC 815. The gain recognized during the quarter primarily reflects favorable mark-to-market adjustments resulting from movements in benchmark interest rates and realized gains on hedge settlements. These fair-value changes and settlements are non-recurring in nature and do not impact the Company’s underlying operating performance or cash flow from operations.
Previous report
Income Taxes
Previous report
The effective income tax rate for the nine months ended September 30, 2025, of 29.8% approximates the statutory rate. The effective tax rate for the nine months ended September 30, 2024, of 27.6%, is below the statutory rate, as the proportion of our taxable income shifts jurisdictions resulting from new developments of our product designs, trademarks and other intellectual property rights.
Previous report
As a result of the foregoing, the Company recorded a net income for the nine months ended September 30, 2025, of $133.5 million and $114.3 million for the nine months ended September 30, 2024.
Previous report
In April 2025, Tecnoglass acquired certain assets and assumed certain liabilities of Florida-based Continental Glass Systems, LLC. (“Continental”), a premier provider of innovative architectural glass and glazing solutions in the Southeast U.S. This acquisition included a manufacturing plant, various intangibles, and a substantial project backlog in both execution and pipeline phases. With annualized revenues of approximately $30 million, Continental’s production capabilities, high-quality product portfolio, and reputation for excellence strengthens Tecnoglass’ U.S. market presence, broadens its client reach, and creates synergies that reinforce Tecnoglass’ leadership position in the architectural glass industry. Additionally, the Company anticipates operational benefits as it integrates Continental’s supply chains into its existing manufacturing operations. The purchase price for the acquisition was $10,429, of which $6,841 of the purchase price was paid in cash by the Company on April 3, 2025, with the remaining amount to be payable by the Company in cash within 365 days after closing date. The total amount of acquisition-related costs was $588, which are included in the Statement of operations for the period ending September 30, 2025.
Previous report
Additionally, we acquired $4.7 million and $5.6 million of property plant and equipment under credit during the nine months ended September 30, 2025, and 2024, respectively. These investments across our vertically-integrated operations include further automating our glass and window assembly production lines, adding glass production lines, expanding our aluminum facilities, putting new vinyl windows lines to penetrate this new product segment and purchasing land to grow beyond current installed capacity.
Previous report
Financing activities also reflected gross debt proceeds of $116.0 million and repayments of $114.1 million, primarily related to the replacement of the Company’s prior credit facility with a new $500 million revolving facility in September 2025. The transaction was accounted for as a debt extinguishment under ASC 470-50, resulting in the recognition of $2.8 million in deferred financing costs associated with the new facility, which extends the maturity to December 2030 and provides increased borrowing capacity and enhanced financial flexibility.
Reworded paragraphs (18)
Previous wording
We are experienced and highly skilled in the vertical integration of architectural glass manufacturing, distribution, and professional fitting. Our expertise extends to the production of top-quality windows, as well as the supply of aluminum, vinyl, and other components. Our dedicated and knowledgeable team serves a diverse range of commercial and residential construction projects worldwide, guaranteeing outstanding products and seamless installation services. With a focus on innovation, combined with providing highly specified products with the highest quality standards at competitive prices, we have earned #1 spot in the Forbe’s list of America’s 100 most successful small-cap companies for 2024, and developed a leadership position in each of our core markets. In the United States, which is our largest market, we were ranked as the third largest glass fabricator serving the United States in 2023 by Glass Magazine. In addition, we believe we are the leading glass transformation company in Colombia. Our customers, which include developers, general contractors or installers for hotels, office buildings, shopping centers, airports, universities, hospitals and multi-family and residential buildings, look to us as a value-added partner based on our product development capabilities, our high-quality products and our unwavering commitment to exceptional service.
Current wording
We are experienced and highly skilled in the vertical integration of window and architectural glass manufacturing, distribution, and professional fitting. Our expertise extends to the production of top-quality windows, as well as the supply of aluminum, vinyl, and other components. Our dedicated and knowledgeable team serves a diverse range of commercial and residential construction projects worldwide, guaranteeing outstanding products and seamless installation services. With a focus on innovation, combined with providing highly specified products with the highest quality standards at competitive prices, we have earned #1 spot in the Forbe’s list of America’s 100 most successful small-cap companies for 2024, and developed a leadership position in each of our core markets. In the United States, which is our largest market, we were ranked among the four largest glass fabricators serving the United States in 2025 by Glass Magazine. In addition, we believe we are the leading glass transformation company in Colombia. Our customers, which include developers, general contractors or installers for hotels, office buildings, shopping centers, airports, universities, hospitals and multi-family and residential buildings, look to us as a value-added partner based on our product development capabilities, our high-quality products and our unwavering commitment to exceptional service.
Previous wording
Our products are manufactured in a 5.6 million square foot, state-of-the-art manufacturing complex in Barranquilla, Colombia that provides easy access to North, Central and South America, the Caribbean and the Pacific. Our products can be found on some of the most distinctive buildings in these regions, including 100 Hood Park Drive (Boston), 601 West 29 th St (New York). Norwegian Cruise Line Terminal B (Miami), Paramount Miami Worldcenter (Miami), Via 57 West (New York), One65 Main (Cambridge), AE’O Tower (Honolulu), Salesforce Tower (San Francisco), and One Thousand Museum (Miami). Our track record of successfully delivering high profile projects has earned us an increasing number of opportunities across the United States, evidenced by our expanding backlog and overall revenue growth.
Current wording
The majority of our products are manufactured in a 6.1 million square foot, state-of-the-art manufacturing complex in Barranquilla, Colombia that provides easy access to North, Central and South America, the Caribbean and the Pacific. Our products can be found on some of the most distinctive buildings in these regions, including 100 Hood Park Drive (Boston), 601 West 29 th St (New York). Norwegian Cruise Line Terminal B (Miami), Paramount Miami Worldcenter (Miami), Via 57 West (New York), One65 Main (Cambridge), AE’O Tower (Honolulu), Salesforce Tower (San Francisco), and One Thousand Museum (Miami). Our track record of successfully delivering high profile projects has earned us an increasing number of opportunities across the United States, evidenced by our expanding backlog and overall revenue growth.
Previous wording
Our structural competitive advantage is underpinned by our low-cost manufacturing footprint, vertically integrated business model and geographic location. Our integrated facilities in Colombia and distribution and services operations in Florida provide us with a significant cost advantage in both manufacturing and distribution, and we continue to invest in these operations to expand our operational capabilities. Our lower cost manufacturing footprint allows us to offer competitive prices for our customers, while also providing innovative, high quality and high value-added products, together with consistent and reliable service. We have historically generated high margin organic growth based on our position as a value-added solutions provider for our customers.
Current wording
Our structural competitive advantage is underpinned by our low-cost manufacturing footprint, vertically integrated business model and geographic location. Our integrated facilities in Colombia and distribution and services operations in Florida provide us with a significant cost advantage in both manufacturing and distribution, and we continue to invest in these operations to expand our operational capabilities. We also leverage automation and process digitalization across our operations to improve throughput, consistency and scalability, supporting cost efficiency and service reliability. Our lower cost manufacturing footprint allows us to offer competitive prices for our customers, while also providing innovative, high quality and high value-added products, together with consistent and reliable service. We have historically generated high margin organic growth based on our position as a value-added solutions provider for our customers.
Previous wording
We have a strong presence in the Florida market, which represents a substantial portion of our revenue stream and backlog. Our success in Florida has primarily been achieved through sustained organic growth, with further penetration now taking place into other highly populated areas of the United States. As part of our strategy to become a fully vertically integrated company, we have supplemented our organic growth with some acquisitions that have allowed us added control over our supply chain allowed for further vertical integration of our business and will act as a platform for our future expansion in the United States. In 2016, we completed the acquisition of ESW, which gave us control over the distribution of products into the United States from our manufacturing facilities in Colombia. In March 2017, we completed the acquisition of GM&P, a consulting and glazing installation business that was previously our largest installation customer.
Current wording
We have a strong presence in the Florida market, which represents a substantial portion of our revenue stream and backlog. Our success in Florida has primarily been achieved through sustained organic growth, with further penetration now taking place into other highly populated areas of the United States. As part of our strategy to become a fully vertically integrated company, we have supplemented our organic growth with some acquisitions that have allowed us added control over our supply chain allowed for further vertical integration of our business and will act as a platform for our future expansion in the United States. Earlier acquisitions in 2016 and 2017, of ESW and GM&P respectively, helped establish our U.S. distribution and installation capabilities, while more recent transactions—including our minority interest in Vidrio Andino, our full ownership of ESMetals, and the 2025 acquisition of certain assets of Continental Glass Systems, LLC—have enhanced our vertical integration, capacity, customer reach, and backlog.
Previous wording
We have focused on working withThe Power of Quality, always making sure that our vision of sustainability is immersed into every aspect of our business, including social, environmental, economic and governance variables, that help us make decisions and create value for our stakeholders. We carry out a series of initiatives based on our global sustainability strategy, which is supported on three fundamental pillars: promoting an ethical and responsible continuous growth, leading eco-efficiency and innovation, and empowering our environment. As part of this strategy, we have voluntarily adhered to UN Global Compact Principles since 2017 and in pursuit of our cooperation with the attainment of the SDGs joined in 2021 a program to dynamize, strengthen and make visible the management of greenhouse gas emissions as a carbon neutral strategy set out by the Colombian government for 2050.
Current wording
We have focused on working withThe Power of Quality, always making sure that our vision of sustainability is immersed into every aspect of our business, including social, environmental, economic and governance variables, that help us make decisions and create value for our stakeholders. We carry out a series of initiatives based on our global sustainability strategy, which is supported on three fundamental pillars: promoting an ethical and responsible continuous growth, leading eco-efficiency and innovation, and empowering our environment. As part of this strategy, we have voluntarily adhered to UN Global Compact Principles since 2017 and in pursuit of our cooperation with the attainment of the SDGs joined in 2021 a program to dynamize, strengthen and make visible the management of greenhouse gas emissions as a carbon neutral strategy set out by the Colombian government for 2050. Additionally, we are advancing initiatives in circular economy and implementing comprehensive water management and treatment strategies aimed at improving efficiency, reuse and replenishment, in order to maintain our water-positive operations.
Previous wording
Operating revenues increased $22.2 million, or 9.3%, from $238.3 during the quarter ended September 30, 2024, to $260.5 million, during the quarter ended September 30, 2025. Strong revenues during the third quarter of 2025 were driven by strong activity in the U.S market, where revenues increased $18.3 million, or 8.0% year over year, to $246.4 million during the quarter ended September 30, 2025. The increase was driven by strong growth in the US commercial market, up 12.3% or $14.6 million year over year as we continue to execute on our growing project backlog. Additionally, higher residential revenues, up $3.8 million, or 3.4% year over year, resulting from strong demand momentum during the first half of 2025. Revenues from Latin America and the Caribbean increased $3.8 million, or 37.0% year over year.
Current wording
Operating revenues increased $26.7 million, or 12.0%, from $222.3 during the quarter ended March 31, 2025, to $249.0 million, during the quarter ended March 31, 2026. Strong revenues during the first quarter of 2026 were driven by market share gains and stronger activity in our core U.S markets, where revenues increased $24.7 million, or 11.6% year over year, to $237.1 million. In terms of end markets, the increase was driven by strong growth in the US commercial market, up 20.4% or $25.1 million year over year as we continue to execute on our growing project backlog and market share gains, while US residential market sales was relatively flat year over year. Revenues from Latin America and the Caribbean increased $2.0 million, or 20.7% year over year.
Previous wording
Gross profit increased $2.1 million, or 1.9%, from $109.2 million during the three months ended September 30, 2024, to $111.3 million, during the three months ended September 30, 2025. The gross profit margin during the three months ended September 30, 2025, was 42.7%, compared to 45.8% during the third quarter of 2024, primarily driven by higher raw material costs associated with increased premiums to source US aluminum, a stronger Colombian Peso and an unfavorable revenue mix, as commercial revenues with installation services rose year over year as we execute on our growing backlog of projects with installation. Finally, a 9.5% increase in minimum wages set at the beginning of 2025, coupled with the aforementioned strengthening of the Colombian Peso, also negatively impacted gross margins year over year. The aforementioned factors were partially offset by positive pricing adjustments implemented earlier in the year.
Current wording
Gross profit during the first quarter of 2026 was $95.8 million, a decrease of $1.7 million, or 1.7%, from $97.5 million during the first quarter of 2025. The gross profit margin during the three months ended March 31, 2026, was 38.5%, compared to 43.9% during the first quarter of 2025, primarily driven by higher input costs associated with increasing aluminum prices, as well as higher salaries given the one-time double digit minimum wage increase put in place in Colombia at the beginning of the year. Additionally, we had an unfavorable revenue mix as commercial revenues with installation services rose year over year as we execute on our growing backlog of projects with installation. Finally, we had a stronger local currency year over year, impacting our local currency costs on a comparable basis.. The aforementioned factors were partially offset by positive pricing adjustments implemented in the second quarter of last year.
Previous wording
During the three months ended September 30, 2025 and 2024, the Company recorded net non-operating income of $1.0 million and $1.4 million, respectively. Non-operating income is comprised of interest income from short term investments, as well as non-operating expenses related to certain charitable contributions outside of the Company’s direct sphere of influence. Equity method income from our joint venture with Saint Gobain decreased $0.9 million, or 62.8%, to $0.5 million during the quarter ended September 30, 2025, compared to $1.4 million recorded during the quarter ended September 30, 2024.
Current wording
During the three months ended March 31, 2026 and 2025, the Company recorded net non-operating income of $0.9 million and $1.0 million, respectively. Non-operating income is comprised of interest income from short term investments, as well as non-operating expenses related to certain charitable contributions. Equity method income, mainly from our joint venture with Saint Gobain decreased $1.2 million, or 92.4%, to $0.1 million during the quarter ended March 31, 2026, compared to $1.3 million recorded during the quarter ended March 31 30, 2025.
Previous wording
During the three months ended September 30, 2025, the Company recorded a non-operating income of $1.9 million associated with foreign currency transactions compared to a net non-operating income of $0.9 million during the three months ended September 30, 2024.
Current wording
During the three months ended March 31, 2026, the Company recorded a non-operating income of $0.9 million associated with foreign currency transactions compared to a net non-operating loss of $0.5 million during the three months ended March 31 30, 2025.
Previous wording
Interest expense and deferred cost of financing increased by $0.4 million, or 19.4%, to $2.2 million for the quarter ended September 30, 2025, primarily reflecting the discontinuation of hedge accounting for the Company’s interest rate swap contracts upon the extinguishment of the prior credit facility and issuance of the new revolving facility, as further described above. Following this discontinuation, the periodic settlements and fair value changes of these swaps are now recognized within Derivative financial instruments gain (loss) rather than offsetting interest expense, which had resulted in a lower reported amount in the prior period.
Current wording
Interest expense and deferred cost of financing increased by $1.7 million, or 127.3%, to $3.0 million for the quarter ended March 31, 2026, primarily reflecting the discontinuation of hedge accounting for the Company’s interest rate swap contracts upon the extinguishment of the prior credit facility and issuance of the new revolving facility, as further described above. Following this discontinuation, the periodic settlements and fair value changes of these swaps are now recognized within Derivative financial instruments gain (loss) rather than offsetting interest expense, which had resulted in a lower reported amount in the prior period.
Previous wording
During the three months ended September 30, 2025, the Company recorded a gain of $2.7 million related to derivative financial instruments, compared to no gain or loss during the three months ended September 30, 2024. In connection with the replacement of our Senior Secured Credit Facility in September 2025, the Company discontinued hedge accounting for its existing interest rate swap contracts that had a highly effective relationship with the hedged transaction as of June 30,2025 under ASC 815 but due to changes in critical terms of the relationship with the new debt these instruments are not in accordance to the hedge accounting principles. These swap contracts remain outstanding and continue to be periodically settled in accordance with their original terms. Upon settlement and the extinguishment of the prior term loan, hedge accounting was discontinued, and the cumulative deferred gains or losses previously recorded in Accumulated other comprehensive income were reclassified into current-period earnings.
Current wording
During the three months ended March 31, 2026, the Company recorded a loss of $0.3 million related to derivative financial instruments, compared to no gain or loss during the three months ended March 31, 2025. In connection with the replacement of our Senior Secured Credit Facility in September 2025, the Company discontinued hedge accounting for its existing interest rate swap contracts that had a highly effective relationship with the hedged transaction as of June 30,2025 under ASC 815 but due to changes in critical terms of the relationship with the new debt these instruments are not in accordance to the hedge accounting principles. These swap contracts remain outstanding and continue to be periodically settled in accordance with their original terms. Upon settlement and the extinguishment of the prior term loan, hedge accounting was discontinued, and the cumulative deferred gains or losses previously recorded in Accumulated other comprehensive income were reclassified into current-period earnings.
Previous wording
Following the discontinuation of hedge accounting for the interest rate swap contracts, changes in the fair value of these instruments, as well as ongoing periodic settlements on these instruments, are now recognized directly through earnings within Derivative financial instruments gain (loss). The Company continues to apply hedge accounting to its foreign currency forward contracts used to hedge forecasted transactions, that as of September 30, 2025 has a highly effective relationship with the hedged transaction under ASC 815. The gain recognized during the quarter primarily reflects favorable mark-to-market adjustments resulting from movements in benchmark interest rates and realized gains on hedge settlements. These fair-value changes and settlements are non-recurring in nature and do not impact the Company’s underlying operating performance or cash flow from operations.
Current wording
Following the discontinuation of hedge accounting for the interest rate swap contracts, changes in the fair value of these instruments, as well as ongoing periodic settlements on these instruments, are now recognized directly through earnings within Derivative financial instruments gain (loss).
Previous wording
We recorded income tax expense of $20.8 million and $20.0 million during the three months ended September 30, 2025, and 2024, respectively. The effective income tax rate of 30.6% for the three months ended September 30, 2025, approximates the statutory tax rate.
Current wording
We recorded income tax expense of $11.9 million and $17.7 million during the three months ended March 31, 2026, and 2025, respectively. The effective income tax rate of 27.2% for the three months ended March 31, 2026, approximates the statutory tax rate.
Previous wording
As a result of the foregoing, the Company recorded net income for the three months ended September 30, 2025, of $47.2 million compared to net income of $49.5 million for the three months ended September 30, 2024.
Current wording
As a result of the foregoing, the Company recorded net income for the three months ended March 31, 2026, of $31.9 million compared to net income of $42.2 million for the three months ended March 31, 2025.
Previous wording
As of September 30, 2025, and December 31, 2024, we had a cash and cash equivalents balance of approximately $124.0 million and $134.9 million, respectively. Additionally, we currently have approximately $425.0 million available under several lines of credit.
Current wording
As of March 31, 2026, and December 31, 2025, we had a cash and cash equivalents balance of approximately $91.1 million and $100.9 million, respectively. Additionally, we currently have approximately $325 million available under several lines of credit.
Previous wording
We transform glass and aluminum into high specification architectural glass and custom-made aluminum profiles which require significant investments in state-of-the-art technology. During the nine months ended September 30, 2025, and 2024, we made investments primarily in building and construction and machinery and equipment in the amounts of $86.4 million and $59.5 million, respectively. This includes $15 million in real estate in south Florida that houses the operation of the newly acquired Continental Glass Systems, LLC. which will serve to grow our U.S. manufacturing and distribution footprint.
Current wording
We transform glass and aluminum into high specification architectural glass and custom-made aluminum profiles which require significant investments in state-of-the-art technology. During the three months ended March 31, 2026, and 2025, we made investments primarily in building, machinery and equipment in the amounts of $17.3 million and $30.4 million, respectively. Additionally, we acquired $7.9 million and $11.1 million of property plant and equipment under credit during the three months ended March 31, 2026, and 2025, respectively. Investments made during the first quarter of 2026 were mainly related to scheduled payments on recent investments to increase capacity and efficiency.
Previous wording
During the nine months ended September 30, 2025, and 2024, operating activities generated approximately $104.7 million and $109.4 million, respectively. The main source of operating cash during the nine months ended September 30, 2025, were driven by contract assets and liabilities, and trade accounts payable and accrued expenses. Contract assets and liabilities generated $26.8 million during the nine months ended September 30, 2025, mostly due to an increase in billings in excess of costs, as large commercial jobs are being executed, and large projects from our backlog are starting operations; compared to $15.9 million generated during the nine months ended September 30, 2024. In addition, trade accounts payable and accrued expenses generated $15.2 million during the nine months ended September 30, 2025, related to higher unpaid balance of higher than usual raw material purchases as we procure a stock of U.S. sourced aluminum as part of our tariff mitigation strategy, compared with $10.1 million during the nine months ended September 30, 2024. Conversely, the largest use of cash in operating activities was the purchase of inventories, which used $33.9 million during the nine months ended September 30, 2025, in contrast to $2.7 million generated during the prior year period which had a faster raw material and finished goods turnover.
Current wording
During the three months ended March 31, 2026, and 2025, operating activities generated approximately $6.7 million and $46.9 million, respectively. The main source of operating cash during the three months ended March 31, 2026, were driven by taxes payable and trade accounts payable. Taxes payable generated $16.9 million during the three months ended March 31, 2026, as the Company’s subsidiaries filed income tax returns for fiscal year 2025, compared with $15.6 million during the three months ended March 31, 2025. Trade accounts payable and accrued expenses generated $13.5 million during the three months ended March 31, 2026, related to higher unpaid balance of higher than usual raw material purchases as we procure a stock of U.S. sourced aluminum as part of our tariff mitigation strategy, compared with $11.7 million during the three months ended March 31, 2025. Conversely, the largest use of cash in operating activities was the purchase of inventories, which used $34.3 million during the three months ended March 31, 2026, as we continue procure in advance, a higher stock of U.S. sourced aluminum as part of our supply chain resilience and tariff mitigation strategy, in contrast to $8.7 million generated during the prior year period. Additionally, trade accounts receivables, used $16.5 million in the three months ended March 31, 2026, compared with $19.0 million during the prior year period, driven by a continued elevated pace of large commercial installation jobs during the first quarter of 2026, which entail longer cash cycles.
Previous wording
We used $68.0 million and $51.5 million in investing activities during the nine months ended September 30, 2025, and 2024, respectively. During the nine months ended September 30, 2025, we paid $81.7 million to acquire property plant and equipment. This included scheduled payments on previous investments to increase capacity and efficiency as well as $15.0 million of real estate in south Florida. Additionally, we spent $6.8 million to acquire certain assets and assume certain liabilities of Continental Glass Systems, LLC, a leading provider of architectural glass and glazing solutions in the Southeast U.S., that included manufacturing equipment, intangibles, and a strong project backlog, enhancing our U.S. presence, customer reach, and supply chain efficiency. The price of this purchase was $10.4 million, of which $3.6 million remains to be paid in the short term. During the nine months ended September 30, 2024, we used $53.9 million for the acquisition of property and equipment.
Current wording
We used $17.9 million and $18.2 million in investing activities during the three months ended March 31, 2026, and 2025, respectively. During the three months ended March 31, 2026, we paid $17.3 million to acquire property plant and equipment, mainly related to scheduled payments on previous investments to increase capacity and efficiency. During the three months ended March 31, 2025, we used $30.4 million for the acquisition of property and equipment.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Non-operating income and expenses, net
Previous report — wording carried elsewhere
Foreign currency transaction gains and losses
Previous report — wording carried elsewhere
During the nine months ended September 30, 2025, the Company recorded a gain of $2.7 million related to derivative financial instruments, compared to no gain or loss during the nine months ended September 30, 2024. In connection with the replacement of our Senior Secured Credit Facility in September 2025, the Company discontinued hedge accounting for its existing interest rate swap contracts that had a highly effective relationship with the hedged transaction as of June 30,2025 under ASC 815 but due to changes in critical terms of the relationship with the new debt these instruments are not in accordance to the hedge accounting principles. These swap contracts remain outstanding and continue to be periodically settled in accordance with their original terms. Upon settlement and the extinguishment of the prior term loan, hedge accounting was discontinued, and the cumulative deferred gains or losses previously recorded in Accumulated other comprehensive income were reclassified into current-period earnings.