Tecnoglass (TGLS) Q4 2025 earnings summary

Executive summary

• Achieved record full year revenues of $984 million in 2025, up 10.5% year-over-year, driven by strong market share gains, geographic expansion, and robust demand across all business segments, including vinyl products.

• Single-family residential revenues reached a record $403.4 million, supported by dealer network expansion, geographic diversification, and vinyl product momentum.

• Multi-family and commercial revenues grew to $580.2 million, aided by high-end project demand, a record backlog, and the Continental Glass Systems acquisition.

• Maintained industry-leading margin profile through pricing discipline and cost controls, despite tariffs, elevated aluminum costs, and FX headwinds.

• Returned ~$146 million to shareholders via $118 million in share repurchases and $28.1 million in dividends, with buyback authorization expanded to $250 million.

Financial highlights

• Q4 2025 revenues increased 2.4% year-over-year to $245.3 million; full year revenues up 10.5% to $983.6 million.

• Full year adjusted EBITDA was $291.3 million (29.6% margin); Q4 adjusted EBITDA was $62.2 million (25.4% margin).

• Gross margin for 2025 was 42.8%; Q4 gross margin was 40.0%, down from 44.5% prior year quarter.

• SG&A as a percentage of revenue rose to 20% for the year, up from 17.2%, mainly due to tariffs and higher personnel costs.

• Operating cash flow reached $135.8 million; free cash flow was $49.6 million; capital expenditures totaled $89 million, including acquisition-related spending.

Outlook and guidance

• 2026 revenue guidance: $1.06 billion–$1.13 billion, representing ~11% growth at midpoint; adjusted EBITDA outlook: $265 million–$305 million.

• High-end scenario assumes lower interest rates, improved affordability, and 10% aluminum cost reduction by mid-year; low-end scenario assumes no Fed rate cuts and stable aluminum costs.

• Guidance accounts for elevated aluminum costs, labor dynamics, and FX rates, but excludes potential upside from further pricing or hedging.

• Q1 2026 expected to be in line with Q4 2025 due to seasonal factors and maintenance shutdowns.

• High single-digit revenue growth expected, driven by backlog execution and market share gains.