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1. Company Snapshot

1.a. Company Description

Tecnoglass Inc., through its subsidiaries, designs, produces, markets, and installs architectural systems for the commercial and residential construction industries in Colombia, the United States, Panama, and internationally.The company offers low emissivity, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass products.It also provides aluminum products, including bars, plates, profiles, rods, and tubes that are used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and related products.


In addition, the company offers curtain wall/floating facades, windows and doors, interior dividers and commercial display windows, hurricane-proof windows, and stick facade systems; and other products comprising awnings, structures, automatic doors, and other components of architectural systems.It markets and sells its products primarily under the Tecnoglass, ESWindows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors.The company was founded in 1984 and is headquartered in Barranquilla, Colombia.


Tecnoglass Inc.is a subsidiary of Energy Holding Corporation.

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1.b. Last Insights on TGLS

Tecnoglass Inc.'s recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $1 per share, falling short of the Zacks Consensus Estimate of $1.11 per share. Despite achieving record quarterly revenue of $260.5 million, up 9.3% year-over-year, the company's net income was $47.2 million, or $1.01 per diluted share. Tecnoglass also faced allegations from a short seller report, which it categorically rejected as false and misleading. Additionally, the company updated its full-year 2025 financial guidance.

1.c. Company Highlights

2. Tecnoglass' Q3 2025 Earnings: Strong Revenue Growth and Margin Expansion

Tecnoglass reported a record revenue of $260.5 million in Q3 2025, representing a 9.3% year-over-year increase, driven by strong organic growth in both single-family residential and multifamily commercial businesses. The company's gross margin was 42.7%, and adjusted EBITDA margin was 30.4%. Earnings per share (EPS) came in at $1, slightly below estimates of $1.11. The company's vertically integrated platform and strategic pricing actions helped mitigate various cost pressures.

Publication Date: Nov -10

📋 Highlights
  • Record Q3 Revenue:: Revenues reached $260.5M, up 9.3% YoY, driven by organic growth in residential and commercial segments.
  • Adjusted EBITDA Margin:: Maintained 30.4% margin ($79.1M), reflecting cost mitigation and pricing strategies amid inflationary pressures.
  • Commercial Backlog Growth:: Multifamily/commercial backlog hit $1.3B (+20% YoY), signaling strong 2026 demand and volume-driven growth.
  • Full-Year Guidance Raised:: Revenue now projected at $970–$990M (10% growth midpoint) and adjusted EBITDA at $294–$304M.
  • Shareholder Returns:: $30M in share repurchases and $7M in dividends during Q3, with $150M buyback authorization expansion.

Revenue Growth Drivers

The single-family residential business achieved record revenues, driven by pricing initiatives and successful geographic expansion. The multifamily and commercial business delivered impressive growth of 14.3% year-over-year, with a record backlog of $1.3 billion, up over 20% year-over-year. According to Christian Daes, "The multifamily and commercial business delivered impressive growth of 14.3% year-over-year, with a record backlog of $1.3 billion."

Margin Profile and Cost Management

The company aims to maintain a low-to-mid 40s gross margin profile, but it's affected by factors such as FX, aluminum costs, and installation mix. The company expects operating leverage if top-line growth reaches double digits next year. Aluminum tariffs are expected to impact the company by approximately $25 million in 2025, but the impact is being mitigated through pricing actions and supply chain optimization efforts.

Valuation and Growth Prospects

With a P/E Ratio of 12.93 and EV/EBITDA of 10.75, the company's valuation appears reasonable. The company's ROE is 25.63%, and ROIC is 34.95%, indicating strong profitability. Analysts estimate revenue growth of 10.9% next year, driven by volume rather than pricing. The company's strong balance sheet, with total liquidity of approximately $550 million, supports its strategic flexibility and ability to return capital to shareholders.

Capital Allocation and Shareholder Returns

The company's capital expenditures are trending down, and it's focusing on core growth CapEx. Share buybacks are considered a good use of capital, and the company aims to return capital to shareholders through dividends and buybacks. The Board has authorized an expansion of the share repurchase authorization to $150 million, demonstrating its confidence in the company's continued cash flow generation capabilities.

3. NewsRoom

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Tecnoglass to Attend the Baird 2025 Global Industrial Conference

Nov -10

Source: globenewswire.com

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Tecnoglass Inc. (TGLS) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Compared to Estimates, Tecnoglass (TGLS) Q3 Earnings: A Look at Key Metrics

Nov -06

Source: zacks.com

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Tecnoglass (TGLS) Misses Q3 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

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Tecnoglass Reports Third Quarter 2025 Results

Nov -06

Source: globenewswire.com

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Tecnoglass Sets Date for Third Quarter 2025 Results

Oct -23

Source: globenewswire.com

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Tecnoglass to Attend the D.A. Davidson 24th Annual Diversified Industrials & Services Conference

Sep -16

Source: globenewswire.com

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Tecnoglass Announces Third Quarter 2025 Dividend

Sep -11

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Windows and Architectural Systems

Expected Growth: 3.5%

Tecnoglass Inc.'s Windows and Architectural Systems segment growth of 3.5% is driven by increasing demand for energy-efficient and sustainable building solutions, government incentives for green buildings, and rising construction activities in the residential and commercial sectors, particularly in Latin America and the Caribbean.

Glass and Framing Components

Expected Growth: 4.5%

Tecnoglass Inc.'s Glass and Framing Components segment growth of 4.5% is driven by increasing demand for energy-efficient buildings, rising construction activities in Latin America, and growing adoption of sustainable architecture. Additionally, the company's strategic partnerships, expanded product offerings, and investments in manufacturing capacity are contributing to its growth momentum.

7. Detailed Products

Aluminum Frames

Tecnoglass Inc. offers a wide range of aluminum frames for windows and doors, providing durability, corrosion resistance, and energy efficiency.

Glass Processing

Tecnoglass Inc. provides a variety of glass processing services, including cutting, grinding, and tempering, to meet specific customer requirements.

Windows

Tecnoglass Inc. manufactures a range of windows, including casement, awning, and sliding windows, offering energy efficiency and durability.

Doors

Tecnoglass Inc. offers a variety of doors, including entrance doors, interior doors, and patio doors, providing security, energy efficiency, and style.

Façade Systems

Tecnoglass Inc. designs and manufactures façade systems, including curtain walls, storefronts, and window walls, for commercial and residential buildings.

Engineering and Design Services

Tecnoglass Inc. offers engineering and design services, including project management, fabrication, and installation, for custom glass and aluminum projects.

8. Tecnoglass Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tecnoglass Inc. is medium due to the availability of alternative products and services in the market. However, the company's strong brand reputation and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for Tecnoglass Inc. due to the company's strong market position and the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Tecnoglass Inc. due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants is high for Tecnoglass Inc. due to the relatively low barriers to entry in the industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high for Tecnoglass Inc. due to the presence of several established players in the market, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.68%
Debt Cost 11.28%
Equity Weight 76.32%
Equity Cost 12.83%
WACC 12.46%
Leverage 31.02%

11. Quality Control: Tecnoglass Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 7.2

Growth: 8.2

Quality: 6.3

Yield: 8.1

Momentum: 5.5

Volatility: 6.7

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Tecnoglass

A-Score: 5.0/10

Value: 2.3

Growth: 5.7

Quality: 8.0

Yield: 3.0

Momentum: 4.0

Volatility: 6.7

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A-Score: 4.5/10

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Growth: 5.6

Quality: 4.0

Yield: 1.0

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A-Score: 4.3/10

Value: 3.7

Growth: 7.6

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 6.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

51.33$

Current Price

51.33$

Potential

-0.00%

Expected Cash-Flows