Tecnoglass Holdings Inc.
For the period ended Sep 30, 2026. Filed Nov 9, 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.
Sep 30, 2026 · Filed Nov 9, 2026
TGLS$47.09+7.2%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001493152-26-050739
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 56 previous paragraphs and 55 current paragraphs.
31 unchanged; 19 reworded; 5 added; 5 removed; 1 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 (5)
Current report
Foreign currency transactions and derivative financial instruments (loss) gains
Current report
Foreign currency transactions and derivative financial instruments (loss) gains
Current report
We recorded income tax expense of $34.5 million and $56.6 million during the nine months ended September 30, 2026, and 2025, respectively. The effective income tax rate of 32.0% for the nine months ended September 30, 2026, reflects minimum income tax requirements applicable to certain Colombian entities that reported tax losses for the period. As a result of the foregoing, the Company recorded net income for the nine months ended September 30, 2026, of $73.2 million compared to net income of $133.5 million for the nine months ended September 30, 2025.
Current report
During the nine months ended September 30, 2026 and 2025, operating activities generated approximately $32.6 million and $104.7 million, respectively. Trade accounts payable and accrued expenses were a key source of operating cash during the first nine months of 2026, generating $31.9 million during the nine months ended September 30, 2026 primarily reflecting higher outstanding balances associated with elevated raw material purchases, including U.S.-sourced aluminum procured as part of our tariff mitigation strategy. This compares with $15.2 million in the prior-year period. Conversely, purchases of inventory used $32.4 million during the first nine months of 2026, compared with $33.9 million in the prior-year period, reflecting our continued advance procurement of U.S.-sourced aluminum to strengthen supply chain resilience and mitigate tariff exposure.
Current report
The largest use of operating cash was related to income taxes, which used $40.4 million during the first nine months of 2026, compared with $7.8 million in the prior-year period. This primarily reflects payment of income taxes related to fiscal year 2025, under the applicable payment schedule, which more than offset the lower income tax provision recorded in 2026.. Additionally, trade accounts receivables used $20.7 million during the first nine months of 2026, compared with $33.0 million in the prior-year period, reflecting the continued high volume of large commercial installation projects, which typically have longer cash conversion cycles.
Removed paragraphs (5)
Previous report
Foreign currency transaction gains and losses
Previous report
Foreign currency transaction gains and losses
Previous 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.
Previous report
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 report
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.
Reworded paragraphs (19)
Previous 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.
Current wording
Operating revenues increased $50.1 million, or 19.2%, from $260.5 million during the quarter ended September 30, 2025, to $310.6 million, during the quarter ended September 30, 2026. Strong revenues during the third quarter of 2026 were driven by market share gains and stronger activity in our core U.S markets, where revenues increased $48.7 million, or 19.8% year over year, to $295.1 million. In terms of end markets, the increase was driven by growth in both US commercial and residential markets. Revenues from the commercial market rose 30.9% or $45.4 million year over year, as we continue to execute our growing project backlog. In addition, residential market sales increased 4.1% or $4.7 million year over year, reflecting market share, a higher degree of geographical diversification and gains from our latest pricing initiatives for quotes issued after May 2026]. Revenues from Latin America and the Caribbean increased $1.4 million, or 9.7% year over year.
Previous 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.
Current wording
Gross profit during the third quarter of 2026 was $106.0 million, a decrease of $5.4 million, or 4.8%, from $111.3 million during the third quarter of 2025. The gross profit margin during the three months ended September 30, 2026, was 34.1%, compared to 42.7% during the third quarter of 2025, primarily driven by higher input costs associated with increasing aluminum prices, as well as higher salaries following the one-time double-digit minimum wage increase implemented in Colombia at the beginning of 2026. Additionally, we had a negative impact resulting from a 20.3% appreciation of our local currency versus the U.S dollar year over year, impacting our local currency costs on a comparable basis. The aforementioned factors were partially offset by positive pricing adjustments announced in the second quarter of 2025 and 2026, with benefits beginning to materialize in the third quarter of each year.
Previous wording
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 wording
Operating expenses increased $26.7 million, or 56.5%, from $47.3 million to $74.0 million for the quarters ended September 30, 2025, and 2026, respectively. The increase resulted primarily from Tariffs on imports into the U.S. which generated a total expense of $18.4 million during the third quarter of 2026, an increase of $15.4 million or 528.2% year over year, from a total Tariff expense of $2.9 million during the third quarter of 2025. Additionally, increased personnel cost, on higher salaries and a stronger Colombian Peso.
Previous 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.
Current wording
During the three months ended September 30, 2026 and 2025, the Company recorded net non-operating income of $1.1 million and $1.0 million. 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 $0.7 million, or 126.4%, after recording a loss of $0.1 million during the quarter ended September 30, 2026, compared to an income of $0.5 million recorded during the quarter ended September 30, 2025.
Previous 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.
Current wording
During the three months ended September 30, 2026, the Company recorded a non-operating loss of $3.3 million associated with foreign currency transactions compared to a net non-operating income of $1.9 million during the three months ended September 30, 2025. The amount recorded as of September 30, 2026 includes a $2.7 million loss related to the valuation of foreign currency derivative options.
Previous wording
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 wording
Interest expense and deferred cost of financing increased to $4.5 million for the quarter ended September 30, 2026, as a result of higher amount of debt from our Senior Secured Credit Facility further explained under capital resources.
Previous 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.
Current wording
We recorded income tax expense of $8.5 million and $20.8 million during the three months ended September 30, 2026, and 2025, respectively. The effective income tax rate of 33.6% for the three months ended September 30, 2026, reflects minimum income tax requirements applicable to certain Colombian entities that reported tax losses for the period. The effective income tax rate of 30.6% for the three months ended September 30, 2025, approximated the weighted average statutory rate of 30.9%.
Previous 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.
Current wording
As a result of the foregoing, the Company recorded net income for the three months ended September 30, 2026, of $16.7 million compared to net income of $47.2 million for the three months ended September 30, 2025.
Previous wording
Comparison of six-month periods ended June 30, 2026 and 2025
Current wording
Comparison of nine-month periods ended September 30, 2026 and 2025
Previous wording
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 wording
Operating revenues during the nine months ended September 30, 2026, were $854.9 million, compared to $738.3 million during the nine months ended September 30, 2025, an increase of $116.6 million or 15.8% year over year. Strong revenues during the first nine months of 2026 were driven by strong activity in the U.S market, where revenues increased $117.3 million, or 16.7% to $818.5 million. The increase was driven by higher U.S. commercial market revenues, up $95.5 million, or 22.4% year over year, as we continue to execute on our growing backlog of projects. Residential revenues increased $21.1 million, or 6.8% year over year, driven by stable demand across core markets and continued geographic expansion. Revenues from Latin America and the Caribbean decreased $0.7 million, or 2.0% year over year.
Previous wording
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 wording
Gross profit during the first nine months of 2026 was $311.8 million, a decrease of $11.3 million, or 3.5%, from $323.2 million during the first nine months of 2025. The gross profit margin during the nine months ended September 30, 2026, was 36.5%, compared to 43.8% during the same period of 2025, primarily reflecting higher aluminum costs, increased labor costs following the one-time double-digit minimum wage increase implemented in Colombia at the beginning of 2026 and the year-over-year appreciation of the Colombian peso against the U.S. dollar, which increased costs on a comparable basis. The aforementioned factors were partially offset by positive pricing adjustments which began to take effect in the third quarter of 2026.
Previous wording
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 wording
Operating expenses increased $55.5 million, or 38.8%, from $142.9 million to $198.4 million for the nine months ended September 30, 2025, and 2026, respectively. The increase resulted primarily from tariffs paid on imports into the U.S. which generated a expense of $38.0 million during the nine months ended September 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 $22.3 million or 142.5% year over year, from a total Tariff expense of $15.7 million during the nine months of 2025. Additionally, personnel expense increased due to higher salaries and a stronger Colombian Peso.
Previous wording
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 wording
During the nine months ended September 30, 2026 and 2025, the Company recorded net non-operating income of $2.6 million and $2.6 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 and Storm Armour investment, decreased $3.1 million, or 109.5%, after recording a net loss of $0.3 million during the nine months ended September 30, 2026, compared to an income of $2.8 million recorded during the nine months ended September 30, 2025.1
Previous wording
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 wording
During the nine months ended September 30, 2026, the Company recorded a non-operating income of $2.9 million associated with foreign currency transactions compared to a net non-operating income of $2.2 million during the nine months ended September 30, 2025. The amount recorded as of September 30, 2026 includes a $2.7 million loss related to the valuation of foreign currency derivative options.
Previous wording
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 wording
Interest expense and deferred cost of financing increased by $8.9 million, to $11.0 million for the nine months ended September 30, 2026, as a result of higher amount of debt from our Senior Secured Credit Facility further explained under “Capital Resources” below.
Previous 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.
Current wording
As of September 30, 2026 and December 31, 2025, we had a cash and cash equivalents balance of approximately $97.7 million and $100.9 million, respectively. Additionally, we currently have approximately $240 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 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.
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 nine months ended September 30, 2026 and 2025, we made investments primarily in building, machinery and equipment in the amounts of $118.7 million and $81.7 million, respectively. Investments made during the nine months ended September 30, 2026 were mainly related to an ongoing broad automation project to increase efficiency, improve headcount and increase capacity given the Company´s current growth. Additionally, during the three months ended September 30, 2026, we acquired a lot of land in Florida, for $23.0 million, financed through the Land Acquisition Loan described in Note 7 – Debt. Additionally, we continue to amortize scheduled payments on previous investments to increase capacity and efficiency. 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
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.
Current wording
We used $117.1 million and $68.0 million in investing activities during the nine months ended September 30, 2026 and 2025, respectively. During the nine months ended September 30, 2026, we paid $118.7 million to acquire property plant and equipment, reflecting scheduled payments for previously initiated projects and advance payments for ongoing projects focused on expanding capacity and improving operational efficiency. These payments included $23.0 million for the acquisition of land in Port Saint Lucie, Florida. During the nine months ended September 30, 2025, we used $81.7 million for the acquisition of property and equipment.
Previous 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.
Current wording
Financing activities also reflected gross debt proceeds of $131.0 million and repayments of $16.0 million, mainly used to finance our current automation and capacity growth initiative, a strategic acquisition of land in the U.S for $23.0 million, and repurchase of $16.5 million of our stock during the nine months ended September 30, 2026, leaving $92.4 million remaining under our $250 million Share Repurchase Program.
Rearranged previous paragraphs (1)
Previous report — wording carried 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.