Tecnoglass Holdings Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 1 lowered. The quarter’s numbers.

Read the filing

Key takeaways

• Record second-quarter revenue up 15.6%: Revenue was $295.3 million against $255.5 million a year earlier. Foreign currency changes added $0.9 million to revenue in the quarter. Source
• Adjusted EBITDA margin 17.5%: Adjusted EBITDA was $51.7 million, 17.5% of revenue, against 31.2% a year earlier. Adjusted net income was $23.8 million, or $0.54 per diluted share. Source
• Gross margin fell to 37.3%: Gross profit was $110.0 million, a 37.3% margin, against 44.7% a year earlier. Costs rose on aluminum, Colombian minimum wage and a peso up about 14%, partly offset by volume. Source
• Aluminum cost up about 77%: The average all-in U.S. aluminum price, including the Midwest premium, rose about 77% year-over-year, raising raw material costs. Source
• Tariff expenses lifted SG&A: SG&A was $73.5 million, or 24.9% of revenue. About $17.0 million of expenses tied to Section 232 tariffs on finished aluminum window imports drove the rise, with higher freight and commissions. Source
• Backlog set another record: Backlog reached another record and has grown sequentially each quarter since 2021, the COO said. Source
• Liquidity and leverage position: Total liquidity was about $360.0 million, including $80.8 million of cash, with total debt of $225.4 million. Source
• U.S. facility not yet committed: A feasibility study for a new U.S. facility continues. Management says it is not a commitment to build, and construction would occur in phases tied to demand. Source

“We delivered record second quarter revenues, with double-digit growth in both our single-family residential and multi-family and commercial businesses”

José Manuel Daes, Chief Executive Officer of Tecnoglass

Guidance

What changed from last quarter

• Guidance lowered: Full-year Adjusted EBITDA range reset lower compared with the prior range. Management attributes the revision to aluminum costs and the peso. Source
• New: U.S. redomiciliation completed effective July 7, 2026. The company is now incorporated in Florida and remains headquartered in Miami. Source

Results and growth drivers

• Record second-quarter revenue up 15.6%: Revenue was $295.3 million against $255.5 million a year earlier. Foreign currency changes added $0.9 million to revenue in the quarter. Source
• Net income and EPS declined: Net income was $24.6 million, or $0.55 diluted, versus $44.1 million, or $0.94, a year earlier. Results include a $5.2 million non-cash foreign exchange gain. Source
• Adjusted EBITDA margin 17.5%: Adjusted EBITDA was $51.7 million, 17.5% of revenue, against 31.2% a year earlier. Adjusted net income was $23.8 million, or $0.54 per diluted share. Source

Segments, products and regions

• Multi-family and commercial grew 15.7%: Multi-family and commercial revenue reached a record $168.8 million. Management cited activity in key markets, including growth beyond Florida. Source
• Single-family residential grew 15.4%: Single-family residential revenue reached a record $126.5 million. Management credits share gains and geographic expansion for the increase. Source
• Showrooms, dealers and vinyl gaining traction: The COO said new showrooms, an expanding dealer network and vinyl lines are gaining traction, helping single-family sales grow outside Florida. Source
• U.S. revenue grew 18.1%: United States revenue was $286.2 million, up 18.1%. The company states the United States accounts for over 95% of total revenues. Source
• Colombia and other countries declined: Colombian revenue fell 7.1% to $6.2 million, and other countries fell 55.9% to $2.9 million, according to the regional table. Source

“We remain encouraged by demand trends and by our ability to grow well above industry rates.”

Santiago Giraldo, Chief Financial Officer of Tecnoglass

Costs, margins and pricing

• Gross margin fell to 37.3%: Gross profit was $110.0 million, a 37.3% margin, against 44.7% a year earlier. Costs rose on aluminum, Colombian minimum wage and a peso up about 14%, partly offset by volume. Source
• Aluminum cost up about 77%: The average all-in U.S. aluminum price, including the Midwest premium, rose about 77% year-over-year, raising raw material costs. Source
• Tariff expenses lifted SG&A: SG&A was $73.5 million, or 24.9% of revenue. About $17.0 million of expenses tied to Section 232 tariffs on finished aluminum window imports drove the rise, with higher freight and commissions. Source
• Severance included in gross margin: About $0.7 million of severance from headcount reductions was among the items cited in the gross margin change. Source
• Pricing and automation as response: Management says pricing actions, logistics optimization and accelerated automation are its response to aluminum, peso and tariff costs. Source

Demand and order book

• Backlog set another record: Backlog reached another record and has grown sequentially each quarter since 2021, the COO said. Source
• Multi-family pipeline behind backlog: Backlog growth reflects consistent execution on a growing pipeline of multi-family and commercial projects. Source
• Management cites healthy demand: Management cites healthy demand, continued market share gains and consistent execution across its expanding footprint. Source

“We believe the actions underway are strengthening our cost structure and competitive position for years to come.”

Christian Daes, Chief Operating Officer of Tecnoglass

Cash, capital and shareholder returns

• Operating cash flow was $4.4 million: Operating cash flow was about $4.4 million, reflecting seasonal Colombian income tax payments, tariff-related payments and U.S. aluminum purchases. Source
• Capital spending about $35.4 million: Capital expenditures of about $35.4 million covered scheduled payments on previously announced capacity and automation investments. Source
• Dividends paid; buyback capacity remains: Dividends of $6.7 million were paid in the quarter. About $92.5 million remained under the current repurchase program as of August 6, 2026. Source
• Liquidity and leverage position: Total liquidity was about $360.0 million, including $80.8 million of cash, with total debt of $225.4 million. Source

Strategy, redomicile and U.S. facility

• Redomicile aims at simpler structure: Management says the move simplifies the organizational and regulatory structure, improves dividend tax efficiency and widens the investor base. Source
• U.S. facility not yet committed: A feasibility study for a new U.S. facility continues. Management says it is not a commitment to build, and construction would occur in phases tied to demand. Source
• State incentives in advanced talks: Management says advanced discussions with state authorities aim to finalize incentives expected to significantly enhance the project economics. Source

Automation and headcount

• Headcount cut 10% by June: The automation and efficiency program completed a 10% headcount reduction as of the end of June. Source
• Capacity kept for existing order book: Management says the program preserves capacity to serve the existing order book. Source

Coming up, as management said on 6 August 2026

• Second-half benefit from cost actions: Management expects pricing, logistics and automation actions to progressively benefit results in the second half of the year. Source
• Automation due operational by year end: Additional automation is expected to be operational by year end, the company said. Source

Figures management reported

Risks management discussed

• Regulatory: Section 232 tariffs enacted in April are cited as an initial impact on margins and costs. Source
• External: A Colombian peso stronger than prior assumptions is cited as a reason for the guidance revision. Source
• Demand: Part of the single-family growth reflects orders placed ahead of May pricing actions, according to the company. Source

Earlier plans management reported on

• Met: Management says margins developed largely as it outlined last quarter. Source
• Not stated: Pricing actions began flowing into orders in May, with the revenue benefit expected from the third quarter. Source
• Not stated: The first-quarter release expected the land purchase in the second quarter. The second-quarter release now says by the end of August 2026. Source
• Not stated: Management says it is committed to fully offsetting the impact of tariffs in 2027. Source

Other quarters

• Q1 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.