Tecnoglass Holdings Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 1 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Record first-quarter revenue up 12.0%: Total revenues rose 12.0% to a first-quarter record of $249.0 million from $222.3 million. Holding currency neutral, revenue growth was 3.6%. Source
• Multi-family and commercial grew 20.4%: Multi-family and commercial revenues grew 20.4% year over year, which management attributed to strong activity in key markets, including markets beyond Florida. Source
• Gross margin fell to 38.5%: Gross profit was $95.8 million, a 38.5% gross margin, against $97.5 million and 43.9% a year earlier. Management cited installation mix, aluminum costs, Colombian wages and peso strength. Source
• Aluminum costs added $6.4 million: Higher raw material costs tied to elevated U.S. aluminum prices were an incremental headwind of about $6.4 million in the quarter, partly offset by pricing and operating leverage. Source
• 10% tariff on finished window imports: The company said the recently implemented 10% tariff on finished aluminum window imports is reflected in its guidance. It was not in the original February 26, 2026 guidance. Source
• Pricing and efficiency offset plan: Pricing on orders from early May, plus logistics, automation and supply chain work, is meant to offset tariffs partly in 2026 and fully in 2027. Source
• Record backlog extends visibility into 2027: Backlog reached another record level. Management said it extends multi-family and commercial pipeline visibility well into 2027. Source
• Redomiciling from Cayman to U.S.: The board approved moving the company from the Cayman Islands to the United States, subject to shareholder approval. Management cites a simpler structure, dividend tax efficiency and a wider investor base. Headquarters stays in Miami. Source

“First quarter results were in line with our expectations, with resilient performance across our key metrics reflecting the continued strength of our vertically integrated business model despite a dynamic cost environment.”

José Manuel Daes, Chief Executive Officer of Tecnoglass

Guidance

What changed from last quarter

• Guidance lowered: Adjusted EBITDA guidance was revised to $225 million to $245 million to reflect the 10% tariff, with a $50 million net impact versus the prior midpoint.
• New: Feasibility study for a new U.S. facility, described as previously disclosed. The April 9 release does not mention it. Source
• New: Board approved a redomiciliation from the Cayman Islands to the United States, subject to shareholder approval. The April 9 release does not mention it. Source

Results and growth drivers

• Record first-quarter revenue up 12.0%: Total revenues rose 12.0% to a first-quarter record of $249.0 million from $222.3 million. Holding currency neutral, revenue growth was 3.6%. Source
• Net income and EPS fell: Net income was $31.9 million, or $0.71 per diluted share, against $42.2 million, or $0.90, a year earlier. Adjusted net income was $34.6 million, or $0.78 per diluted share, against $43.1 million, or $0.92. Source
• Adjusted EBITDA margin fell: Adjusted EBITDA was $61.5 million, or 24.7% of revenues, against $70.2 million, or 31.6%, a year earlier. Management tied the change to gross margin and SG&A factors. Source

Segments and regions

• U.S. revenue rose 11.6%: U.S. revenue reached $237.1 million, up 11.6%. Colombia rose 17.2% to $7.5 million, and other countries rose 27.3% to $4.4 million. Source
• Multi-family and commercial grew 20.4%: Multi-family and commercial revenues grew 20.4% year over year, which management attributed to strong activity in key markets, including markets beyond Florida. Source
• Single-family revenue flat on timing: Single-family residential revenue was relatively stable year over year, which management linked to the timing of order conversion into revenue. Source

“We see a clear path to fully offsetting the impact of tariffs in 2027, when full-year pricing across both businesses and incremental automation savings are expected to be realized.”

Santiago Giraldo, Chief Financial Officer of Tecnoglass

Costs, margins and pricing

• Gross margin fell to 38.5%: Gross profit was $95.8 million, a 38.5% gross margin, against $97.5 million and 43.9% a year earlier. Management cited installation mix, aluminum costs, Colombian wages and peso strength. Source
• Aluminum costs added $6.4 million: Higher raw material costs tied to elevated U.S. aluminum prices were an incremental headwind of about $6.4 million in the quarter, partly offset by pricing and operating leverage. Source
• SG&A included one-time wealth tax: SG&A was $50.9 million, or 20.4% of revenues, against $42.5 million and 19.1%. It included a one-time $2.9 million Colombian wealth tax expense. Source
• Peso and Colombian wages added costs: Annual Colombian minimum wage adjustments and a stronger peso raised salary expenses, and the stronger peso also weighed on SG&A. Source

Tariffs and mitigation

• 10% tariff on finished window imports: The company said the recently implemented 10% tariff on finished aluminum window imports is reflected in its guidance. It was not in the original February 26, 2026 guidance. Source
• Pricing and efficiency offset plan: Pricing on orders from early May, plus logistics, automation and supply chain work, is meant to offset tariffs partly in 2026 and fully in 2027. Source

“Our multi-family and commercial business delivered strong growth against our record backlog, and our single-family residential orders improved year-over-year during the quarter with solid momentum continuing into the second quarter.”

Christian Daes, Chief Operating Officer of Tecnoglass

Demand and the order book

• Record backlog extends visibility into 2027: Backlog reached another record level. Management said it extends multi-family and commercial pipeline visibility well into 2027. Source
• Order growth continued into April: Year-over-year order growth in the first quarter continued into April 2026, according to the release. Source
• Dealer network and vinyl broaden reach: The company cites an expanding dealer network and showroom footprint supporting geographic diversification and share gains nationwide, with vinyl lines adding incremental growth. Source

Cash, capital and returns

• Operating cash flow was $6.7 million: Cash from operations was $6.7 million, against $46.9 million a year earlier. Capital expenditures were $17.3 million, mainly scheduled payments on previously announced capacity and automation investments. Source
• Buybacks and dividends returned capital: The company repurchased about $16.5 million of shares and paid $6.7 million in cash dividends during the quarter. Source
• Liquidity stood at $425 million: Total liquidity was about $425.0 million, including $91.1 million of cash and over $330.0 million of revolver availability. Total debt was $200.3 million. Source
• $92.5 million left on buyback: About $92.5 million remained under the current share repurchase program as of May 7, 2026. Source

Strategy and U.S. footprint

• Redomiciling from Cayman to U.S.: The board approved moving the company from the Cayman Islands to the United States, subject to shareholder approval. Management cites a simpler structure, dividend tax efficiency and a wider investor base. Headquarters stays in Miami. Source
• U.S. plant feasibility study advancing: A feasibility study continues for a new, highly automated U.S. facility. A site meeting project specifications has been identified, with substantial state and local tax credits secured. Source
• Phased build tied to demand: Any construction would proceed in phases based on demand, market conditions and return profiles. Buying the land does not commit the company to build. Source

Coming up, as management said on 7 May 2026

• Redomiciliation expected in Q2: If shareholders approve, the redomiciliation is expected to be completed in the second quarter of 2026. The company remains headquartered in Miami, Florida. Source
• Land purchase expected in Q2: The company expects to complete the purchase of land for the potential U.S. facility during the second quarter, while due diligence continues. Source
• Efficiency benefits from year-end: Logistics and automation initiatives are expected to begin contributing benefits by year end. Pricing on orders from early May is expected to partly offset 2026 tariffs. Source

Figures management reported

Risks management discussed

• Regulatory: The tariff landscape is described as dynamic. Mitigation relies on pricing and cost actions still being executed. Source
• External: Industry-wide cost pressures are cited as the background to pricing actions, with U.S. aluminum costs elevated. Source
• Demand: Management says price increases must be executed without losing competitive position. Source
• Financial: Currency moves reduced revenue by $0.9 million in the quarter and also affect Colombian-peso costs. Source

Earlier plans management reported on

• Met: Management said first-quarter results were in line with its expectations. Source
• Met: Management said the pricing actions announced earlier are now in place. Source
• Not stated: Scheduled payments continued on previously announced capacity and automation investments. Source
• Not stated: The April 9 release said a more comprehensive update would come with Q1 results and full-year guidance in early May.

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 results
• Q2 FY2025 results
• Q3 FY2026 earnings call

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.