Tecnoglass Holdings Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 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.
Jun 30, 2026 · Filed Aug 6, 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 2026-03-31; filed 2026-05-08.
0001493152-26-021974
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001493152-26-036362
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 42 previous paragraphs and 56 current paragraphs.
24 unchanged; 14 reworded; 11 added; 4 removed; 0 previous and 7 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 (11)
Current report
Operating expenses increased $20.3 million, or 38.3%, from $53.1 million to $73.4 million for the quarters ended June 30, 2025 and 2026, respectively. The increase resulted primarily from Tariffs on imports into the U.S. which generated a total expense of $18.7 million during the second quarter of 2026, an increase of $10.6 million or 129.2% year over year, from a total Tariff expense of $8.1 million during the second quarter of 2025. Additionally, increased personnel cost, on higher salaries and a stronger Colombian Peso.
Current report
Interest expense and deferred cost of financing increased by $2.2 million, or 160.8%, to $3.5 million for the quarter ended June 30, 2026, as a result of higher amount of debt from our Senior secured credit facility further explained under capital resources.
Current report
Comparison of six-month periods ended June 30, 2026 and 2025
Current report
Revenues
Current report
Operating revenues during the six months ended June 30, 2026 was $544.3 million, compared to $477.8 million during the six months ended June 30, 2025, an increase of $66.5 million or 13.9%, year over year. Strong revenues during the first half of 2026 were driven by strong activity in the U.S market, where revenues increased $68.6 million, or 15.1% year over year, to $523.4 million. The increase was driven by higher U.S. commercial market revenues, up $50.0 million, or 17.9% year over year, as we continue to execute on our growing backlog of projects. Residential revenues increased $16.4 million, or 8.3% year over year, resulting from strong demand momentum in core markets and our ongoing geographical expansion, and a modest pull-forward effect when we announced a mid-single digit price increase for quotes issued after May. Revenues from Latin America and the Caribbean decreased $2.1 million, or 9.2% year over year.
Current report
Gross profit
Current report
Expenses
Current report
Operating expenses increased $28.8 million, or 30.1%, from $95.7 million to $124.4 million for the six months ended June 30, 2025, and 2026, respectively. The increase resulted primarily from tariffs on imports into the U.S. which generated a net expense of $20.0 million during the first half of 2026. including a $1.9 million recovery of previously paid import tariffs following the invalidation of certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”), an increase of $7.0 million or 53.8% year over year, from a total Tariff expense of $13.0 million during the first half of 2025. Additionally, operating expenses increased due to higher personnel costs resulting from higher salaries and a stronger Colombian Peso.
Current report
Interest expense and deferred cost of financing increased by $3.9 million, or 144.1%, to $6.5 million for the six months ended June 30, 2026, as a result of higher amount of debt from our Senior secured credit facility further explained under capital resources
Current report
Income Taxes
Current report
We recorded income tax expense of $26.0 million and $35.8 million during the six months ended June 30, 2026, and 2025, respectively. The effective income tax rate of 31.5% for the six months ended June 30, 2026, primarily reflects the impact of certain foreign expenses incurred by the Company's Colombian subsidiaries that are not deductible for income tax purposes.
Removed paragraphs (4)
Previous 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.
Previous report
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 report
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 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).
Reworded paragraphs (14)
Previous wording
This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings. References to “we”, “us” or “our” are to Tecnoglass Inc., except where the context requires otherwise. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this report.
Current wording
This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings. References to “we”, “us” or “our” are to Tecnoglass Holdings Inc., except where the context requires otherwise. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this report.
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. 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.
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 Sustainable Development Goals 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 $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.
Current wording
Operating revenues increased $39.7 million, or 15.6%, from $255.5 during the quarter ended June 30, 2025, to $295.3 million, during the quarter ended June 30, 2026. Strong revenues during the second quarter of 2026 were driven by market share gains and stronger activity in our core U.S markets, where revenues increased $43.9 million, or 18.1% year over year, to $286.2 million. In terms of end markets, the increase was driven by strong growth in both US commercial and residential market. Revenues from the commercial market rose 15.7% or $22.8 million year over year, as we continue to execute on our growing project backlog. In addition, residential market sales increased 15.4% or $16.9 million yar over year, reflecting market share gains in new geographies and a modest pull-forward effect when we announced a mid-single digit price increase for quotes issued after May. Revenues from Latin America and the Caribbean decreased $4.1 million, or 31.4% year over year.
Previous 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.
Current wording
Gross profit during the second quarter of 2026 was $110.0 million, a decrease of $4.3 million, or 3.8%, from $114.3 million during the second quarter of 2025. The gross profit margin during the three months ended June 30, 2026, was 37.3%, compared to 44.7% during the second 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 2026. Additionally, 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 and by operating leverage on higher revenues.
Previous 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.
Current wording
During the three months ended June 30, 2026 and 2025, the Company recorded net non-operating income of $0.6 million in both periods. 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 124.5%, after recording a loss of $0.2 million during the quarter ended June 30, 2026, compared to an income of $0.9 million recorded during the quarter ended June 30, 2025.
Previous 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.
Current wording
During the three months ended June 30, 2026, the Company recorded a non-operating income of $5.2 million associated with foreign currency transactions compared to a net non-operating income of $0.8 million during the three months ended June 30, 2025.
Previous 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.
Current wording
We recorded income tax expense of $14.1 million and $18.1 million during the three months ended June 30, 2026, and 2025, respectively. The effective income tax rate of 36.5% for the three months ended June 30, 2026, primarily reflects the impact of certain foreign expenses incurred by the Company’s Colombian subsidiaries that are not deductible for income tax purposes.
Previous 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.
Current wording
As a result of the foregoing, the Company recorded net income for the three months ended June 30, 2026, of $24.6 million compared to net income of $44.1 million for the three months ended June 30, 2025.
Previous 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.
Current wording
As of June 30, 2026 and December 31, 2025, we had a cash and cash equivalents balance of approximately $80.8 million and $100.9 million, respectively. Additionally, we currently have approximately $280 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 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.
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 June 30, 2026 and 2025, we made investments primarily in building, machinery and equipment in the amounts of $52.7 million and $62.9 million, respectively. Additionally, we acquired $9.8 million and $7.7 million of property plant and equipment under credit during the six months ended June 30, 2026, and 2025, respectively. Investments made during the first six months of 2026 were mainly related an ongoing broad automation project to increase efficiency, improve headcount and increase capacity given the Company´s current growth which has reduced excess capacity. Additionally, we continue to amortize scheduled payments on previous investments to increase capacity and efficiency.
Previous wording
The Company estimates that current manufacturing operating capacity has reached approximately $1.3 billion which does not account for incremental installation revenue capacity. Additionally, the Company expects the resulting increase in output to improve efficiency throughout its operations while reducing material waste and overall lead times.
Current wording
While the Company estimates that current manufacturing operating capacity has reached approximately $1.3 billion (which does not account for incremental installation revenue capacity) it expects to finish the year at a higher level, once current investments become operational. Additionally, the Company expects the resulting increase in output to improve efficiency throughout its operations while reducing material waste, reducing headcount and improving overall lead times.
Previous 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.
Current wording
During the six months ended June 30, 2026 and 2025, operating activities generated approximately $11.1 million and $64.8 million, respectively. The main source of operating cash during the six months ended June 30, 2026, were driven by trade accounts payable. Trade accounts payable and accrued expenses generated $31.3 million during the six months ended June 30, 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 $21.8 million during the six months ended June 30, 2025. In connection, purchase of inventories used $35.8 million during the six months ended June 30, 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 $24.0 million generated during the prior year period. The larges use of cash in operating activities during the six months ended June 30, 2026 were taxes payable, which used $39.2 million and $18.5 million during the six months ended June 30, 2026 and 2025, respectively, following seasonal tax payment schedules. Additionally, trade accounts receivables, used $32.3 million in the six months ended June 30, 2026, compared with $20.4 million during the prior year period, driven by a continued elevated pace of large commercial installation jobs during the first six months of 2026, which entail longer cash cycles.
Previous 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.
Current wording
We used $51.0 million and $48.6 million in investing activities during the six months ended June 30, 2026, and 2025, respectively. During the six months ended June 30, 2026, we paid $52.7 million to acquire property plant and equipment, mainly related to scheduled payments on previous investments to increase capacity and efficiency. During the six months ended June 30, 2025, we used $62.9 million for the acquisition of property and equipment.
Previous wording
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.
Current wording
Financing activities also reflected gross debt proceeds of $63.8 million and repayments of $15.7 million, mainly used to repurchase $16.5 million of our stock during the six months ended June 30, 2025, leaving $92.4 million remaining under our $250 million Share Repurchase Program.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Gross profit during the first half of 2026 was $205.9 million, a decrease of $6.0 million, or 2.8%, from $211.9 million during the first half of 2025. The gross profit margin during the six months ended June 30, 2026, was 37.8%, compared to 44.3% during the same period 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 2026. Additionally, 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.
Current report — wording carried from elsewhere
Non operating income and expenses, net
Current report — wording carried from elsewhere
During the six months ended June 30, 2026 and 2025, the Company recorded net non-operating income of $1.5 million and $1.6 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 $2.4 million, or 105.6%, after recording a net loss of $0.1 million during the six months ended June 30, 2026, compared to an income of $2.3 million recorded during the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Foreign currency transaction gains and losses
Current report — wording carried from elsewhere
During the six months ended June 30, 2026, the Company recorded a non-operating income of $6.1 million associated with foreign currency transactions compared to a net non-operating income of $0.3 million during the six months months ended June 30, 2025.
Current report — wording carried from elsewhere
Interest income (expense), net and deferred cost of financing
Current report — wording carried from elsewhere
As a result of the foregoing, the Company recorded net income for the six months ended June 30, 2026, of $56.4 million compared to net income of $86.3 million for the six months ended June 30, 2025.