Tecnoglass Inc.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
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, 2025 · Filed Aug 7, 2025
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 2025-03-31; filed 2025-05-08.
0001641172-25-009295
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001641172-25-022618
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 41 previous paragraphs and 61 current paragraphs.
27 unchanged; 14 reworded; 15 added; 0 removed; 0 previous and 5 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 (15)
Current report
On April 1, 2025, we completed the acquisition of 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.
Current report
Comparison of six-month periods ended June 30, 2025 and 2024
Current report
Revenues
Current report
Operating revenues during the six months ended June 30, 2025 was $477.8 million, compared to $412.3 million during the six months ended June 30, 2024, an increase of $65.6 million or 15.9%, year over year. Strong revenues during the first half of 2025 were driven by strong activity in the U.S market, where revenues increased $61.1 million, or 15.5% year over year, to $454.8 million 2025. The increase was driven by higher residential revenues, up $29.6 million, or 17.5% year over year, resulting from strong demand momentum since late 2024, and a modest pull-forward effect when we announced a mid-single digit price increase for quotes issued after May. U.S. commercial market revenues increased $31.5 million, or 14.0% year over year, as we continue to execute our growing backlog. Revenues from Latin America and the Caribbean increased $4.5 million, or 24.0% year over year.
Current report
Gross profit
Current report
Gross profit during the six months ended June 30, 2025, was $211.9 million, an increase of $47.6 million, or 29.0%, from $164.2 million during the six months ended June 30, 2024. The gross profit margin during the six months ended June 30, 2025, increased to 44.3% from 39.8% during the first half of 2024, primarily related to better pricing on certain residential market products, and improved operating leverage. Additionally, 7.0% depreciation of the Colombian Peso impacting our costs denominated in Colombian Pesos against our predominantly US Dollar revenue stream.
Current report
Expenses
Current report
Operating expenses increased $23.5 million, or 32.6%, from $72.1 million to $95.6 million for the six months ended June 30, 2024 and 2025, respectively. The increase was mainly driven by recent Tariffs on imports into the U.S. which generated $13.0 million expense, administrative salary adjustments.
Current report
During the six months ended June 30, 2025 and 2024, the Company recorded non-operating income of $1.6 and $3.8 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.
Current report
During the six months ended June 30, 2025, the Company recorded a non-operating net gain of $0.3 million associated with foreign currency transactions, compared to a net loss of $5.7 million during the six months ended June 30, 2024.
Current report
Interest Expense
Current report
Income Taxes
Current report
The effective income tax rate for the six months ended June 30, 2025, of 29.3% approximates the statutory rate. The effective tax rate for the six months ended June 30, 2024, of 26.8%, 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.
Current report
As a result of the foregoing, the Company recorded a net income for the six months ended June 30, 2025 of $86.3 million and $64.8 million for the six months ended June 30, 2024.
Current 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 June 30, 2025.
Reworded paragraphs (14)
Previous wording
Operating revenues increased $29.7 million, or 15.4%, from $192.6 during the quarter ended March 31, 2024, to $222.3 million, during the quarter ended March 31, 2025. Strong revenues during the first quarter of 2025 were driven by strong activity in the U.S market, where revenues increased $28.5 million, or 15.5% year over year, to $212.5 million during the quarter ended March 31, 2025. The increase was driven by higher residential revenues, up $15.8 million, or 21.6% year over year, resulting from strong demand momentum since 2024. Commercial market revenues increased $13.9 million, or 11.6% year over year, as we continue to execute our growing backlog. Revenues from Latin-America increased $9.8 million, or 14.0% year over year.
Current wording
Operating revenues increased $35.9 million, or 16.3%, from $219.7 during the quarter ended June 30, 2024, to $255.5 million, during the quarter ended June 30, 2025. Strong revenues during the second quarter of 2025 were driven by strong activity in the U.S market, where revenues increased $32.6 million, or 15.6% year over year, to $242.3 million during the quarter ended June 30, 2025. The increase was driven by higher residential revenues, up $13.8 million, or 14.5% year over year, resulting from strong demand momentum during the first half of 2025, and a modest pull-forward effect when we announced a mid-single digit price increase for quotes issued after May. U.S. commercial market revenues increased $18.8 million, or 16.5% year over year, as we continue to execute our growing backlog. Revenues from Latin America and the Caribbean increased $3.2 million, or 32.6% year over year.
Previous wording
Gross profit increased $2.9 million, or 30.6%, from $74.7 million during the three months ended March 31, 2024, to $97.5 million, during the three months ended March 31, 2025. The gross profit margin during the three months ended March 31, 2025, was 43.9%, up from 38.8% during the first quarter of 2024, primarily related to better pricing on certain residential market products, improved operating leverage, and a favorable FX dynamic impacting our COP denominated costs, as the Colombian peso depreciated 7.1% against the U.S. dollar year over year.
Current wording
Gross profit increased $24.8 million, or 27.6%, from $89.6 million during the three months ended June 30, 2024, to $114.3 million, during the three months ended June 30, 2025. The gross profit margin during the three months ended June 30, 2025, was 44.7%, up from 40.8% during the first quarter of 2024, primarily related to better pricing on certain residential market products, and improved operating leverage, and a favorable FX dynamic impacting our COP denominated costs, as the Colombian peso depreciated 7.0% against the U.S. dollar year over year.
Previous wording
Operating expenses increased $8.8 million, or 26.3%, from $33.6 million to $42.5 million for the quarters ended March 31, 2024 and 2025, respectively. The increase resulted primarily from recent Tariffs on imports into the U.S. which generated $4.7 million expense. Additionally, selling, general and administrative expenses grew to larger operation and ongoing geographical expansion over the US market, including inflation adjustment increases on personnel expense and fees.
Current wording
Operating expenses increased $14.7 million, or 38.2%, from $38.4 million to $53.1 million for the quarters ended June 30, 2024 and 2025, respectively. The increase resulted primarily from recent Tariffs on imports into the U.S. which generated $8.2 million expense. Additionally, selling, general and administrative expenses grew to larger operation and ongoing geographical expansion over the US market, including inflation adjustment increases on personnel expense and fees, and higher shipping expense on higher sales.
Previous wording
During the three months ended March 31, 2025, and 2024, the Company recorded net non-operating income of $1.0 million and $1.1 million, respectively. Equity method income from our joint venture with Saint Gobain increased $0.3 million, or 28.5%, to 1.3 million during the quarter ended March 31, 2025, compared to $1.0 million recorded during the quarter ended March 31, 2024.
Current wording
During the three months ended June 30, 2025 and 2024, the Company recorded net non-operating income of $0.5 million and $2.7 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 $0.3 million, or 23.8%, to $0.9 million during the quarter ended June 30, 2025, compared to $1.2 million recorded during the quarter ended June 30, 2024.
Previous wording
During the three months ended March 31, 2025, the Company recorded a non-operating loss of $0.5 million associated with foreign currency transactions compared to a net non-operating loss of $0.2 million during the three months ended March 31, 2024.
Current wording
During the three months ended June 30, 2025, the Company recorded a non-operating loss of $0.8 million associated with foreign currency transactions compared to a net non-operating loss of $5.6 million during the three months ended June 30, 2024.
Previous wording
Interest expense and deferred cost of financing decreased $0.8 million, or 36.8%, to $1.3 million during the quarter ended March 31, 2025, as the Company voluntarily prepaid $62 million during 2024 to reduce its debt balance and benefited from having a favorable interest rate hedge in place for 100% of its outstanding syndicated debt after giving effect to the voluntary prepayments.
Current wording
Interest expense and deferred cost of financing decreased $0.7 million, or 32.7%, to $1.4 million during the quarter ended June 30, 2025, as the Company voluntarily prepaid $62 million during 2024 to reduce its debt balance and benefited from having a favorable interest rate hedge in place for 100% of its outstanding syndicated debt after giving effect to the voluntary prepayments.
Previous wording
We recorded income tax expense of $17.7 and $11.2 million during the three months ended March 31, 2025 and 2024, respectively. The effective income tax rate of 29.5% for the three months ended March 31, 2025 approximates the statutory tax rate.
Current wording
We recorded income tax expense of $18.1 million and $12.5 million during the three months ended June 30, 2025 and 2024, respectively. The effective income tax rate of 29.2% for the three months ended June 30, 2025 approximates the statutory tax rate.
Previous wording
As a result of the foregoing, the Company recorded net income for the three months ended March 31, 2025 of $42.3 million compared to net income of $29.7 million for the three months ended March 31, 2024.
Current wording
As a result of the foregoing, the Company recorded net income for the three months ended June 30, 2025 of $44.1 million compared to net income of $35.0 million for the three months ended June 30, 2024.
Previous wording
During the three months ended March 31, 2025, the Company recorded other operating income of $4.3 million related to a gain on the sale of an aircraft, without any comparable income during the prior year period.
Current wording
During the six months ended June 30, 2025, the Company recorded other operating income of $4.3 million related to a gain on the sale of an aircraft, without any comparable income during the prior year period.
Previous wording
As of March 31, 2025 and December 31, 2024, we had cash and cash equivalents of approximately $157.3 million and $134.9 million, respectively. Additionally, we currently have approximately $175.0 million available under several lines of credit.
Current wording
As of June 30, 2025, and December 31, 2024, we had a cash and cash equivalents balance of approximately $137.9 million and $134.9 million, respectively. Additionally, we currently have approximately $175.0 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, 2025, and 2024, we made investments primarily in building and construction and machinery and equipment in the amounts of $30.4 million and $9.9 million, respectively. Additionally, we acquired $11.1 million and $1.3 million of property plant and equipment under credit during the three months ended March 31, 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. The Company estimates that current manufacturing operating capacity has reached approximately $1.2 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
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 six months ended June 30, 2025, and 2024, we made investments primarily in building and construction and machinery and equipment in the amounts of $62.9 million and $30.2 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.
Previous wording
During the three months ended March 31, 2025, and 2024, operating activities generated approximately $46.9 million and $33.4 million, respectively. The main sources of operating cash during the three months ended March 31, 2025, were driven by contract assets and liabilities, and taxes payable. Contract assets and liabilities generated $23.1 million during the three months ended March 31, 2025, mostly due to an increase in billings in excess of costs, as main projects are being executed, and large projects from our backlog are starting operations; compared to $8.0 million used during the three months ended March 31, 2024, as we executed on our growing backlog. In addition, taxes payable generated $15.7 million during the three months ended March 31, 2025, related to higher income tax provision as a result of recent record-breaking quarters, compared with $7.1 million during the three months ended March 31, 2024. The largest use of cash in operating activities was trade accounts receivables, which used $19.0 million in the three months ended March 31, 2025, compared with a generation of $3.8 million during the prior year period, driven by a pick-up in pace of large commercial installation jobs during the first quarter of 2025, which entail longer cash cycles. Additionally, other assets used $14.9 million during the three months ended March 31, 2025, compared with $9.2 million used during the three months ended March 31, 2024, comprised primarily of prepaid value added taxes of Colombian operations.
Current wording
During the six months ended June 30, 2025, and 2024, operating activities generated approximately $64.8 million and $67.9 million, respectively. The main source of operating cash during the six months ended June 30, 2025, were driven by contract assets and liabilities, and trade accounts payable and accrued expenses. Contract assets and liabilities generated $21.4 million during the six months ended June 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 $3.2 million used during the six months ended June 30, 2024. In addition, trade accounts payable and accrued expenses generated $21.8 million during the six months ended June 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 $12.7 million during the six months ended June 30, 2024. Converseley, the largest use of cash in operating activities was the purchase of inventories, which used $24.0 million during the first half of 2025, in contrast to $14.4 million generated during the prior year period which had a faster raw material and finished goods turnover.
Previous wording
We used $18.2 million and $10.2 million in investing activities during the three months ended March 31, 2025, and 2024, respectively. The main use of cash in investing activities during the three months ended March 31, 2025, was related to scheduled payments on previous investments to increase capacity and efficiency as well as new investments in land and equipment. During the three months ended March 31, 2025, we paid $30.4 million to acquire property plant and equipment. During the three months ended March 31, 2024, we used $9.9 million for the acquisition of property and equipment.
Current wording
We used $48.6 million and $27.8 million in investing activities during the six months ended June 30, 2025, and 2024, respectively. During the six months ended June 30, 2025, we paid $62.9 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 remain to be paid in the short term. During the six months ended June 30, 2024, we used $30.2 million for the acquisition of property and equipment
Previous wording
Financing activities used $7.4 million and $16.7 million during the three months ended March 31, 2025, and 2024, respectively. We paid $7.0 million and $4.2 million of dividends to holders of our ordinary shares during the three months ended March 31, 2025, and 2024, respectively.
Current wording
Financing activities used $14.9 million and $40.3 million during the three months ended June 30, 2025, and 2024, respectively. We paid $14.1 million and $9.4 million of dividends to holders of our ordinary shares during the three months ended June 30, 2025, and 2024, respectively. Additionally, during the six months ended June 30, 2024, we used $31.0 million to repay debt from our Senior Secured Line of Credit and other smaller facilities.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Non-operating income and expenses, net
Current report — wording carried from elsewhere
Foreign currency transaction gains and losses
Current report — wording carried from elsewhere
Interest expense and deferred cost of financing decreased $1.4 million, or 34.8%, to $2.7 million during the six months ended June 30, 2025, from $4.1 million during the six months ended June 30, 2024, as the Company voluntarily prepaid $30 million to reduce its debt balance and benefited from having a favorable interest rate hedge in place for 100% of its outstanding debt.
Current report — wording carried from elsewhere
Additionally, we acquired $7.7 million and $4.6 million of property plant and equipment under credit during the three months ended June 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.
Current report — wording carried from elsewhere
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.