Tecnoglass (TGLS) investor relations material

Executive summary

• Achieved record Q1 2026 revenue of $249.0 million, up 12.0% year-over-year, driven by strong commercial and multifamily growth, expanding vinyl segment, and robust backlog of $1.36 billion, up 19.1% year-over-year.

• Adjusted EBITDA was $61.5 million (24.7% margin), down from $70.2 million (31.6%) in the prior year; net income was $31.9 million ($0.71 per diluted share), impacted by higher costs and a one-time $2.9 million Colombian wealth tax.

• Vertically integrated model, supply chain investments, and automation initiatives provide agility and efficiency amid dynamic cost and trade environments.

• U.S. redomiciliation and feasibility study for a new U.S. facility underway, with completion expected by mid-2026 and incentives secured.

• Acquisition of Continental Glass Systems assets in April 2025 enhanced U.S. presence and supply chain efficiency.

Financial highlights

• Q1 2026 revenue rose 12% year-over-year to $249 million, with U.S. revenues comprising 95% of total and multifamily/commercial making up 64%.

• Gross margin declined to 38.5% from 43.9% year-over-year, impacted by higher aluminum costs, FX, and revenue mix.

• Adjusted EBITDA margin was 24.7%, down 546 bps year-over-year; net income margin was 12.8%.

• Operating cash flow was $6.7 million, reflecting inventory build for tariff mitigation.

• Returned $23.2 million to shareholders via $16.5 million in share repurchases and $6.7 million in dividends.

Outlook and guidance

• Reaffirmed 2026 guidance: revenue of $1.06–$1.13 billion and Adjusted EBITDA of $225–$245 million.

• Guidance incorporates new 10% U.S. tariff on finished aluminum window imports and FX trends.

• Pricing actions and efficiency initiatives expected to offset tariff headwinds by early Q3, with full neutralization targeted in 2027.

• Capital expenditures projected at $60–$70 million, plus $20–$25 million for potential U.S. facility land purchase.

• Management expects continued positive operating cash flow and sufficient liquidity to meet obligations over the next twelve months.