Tecnoglass (TGLS) Sidoti September Small-Cap Virtual Conference summary

Company overview and market position

• Vertically integrated supplier of high-spec windows, with over 95% of revenues from the U.S. and a 10-year CAGR just under 20% from organic growth.

• Operates a 5 million+ sq ft manufacturing campus in Colombia, producing glass and aluminum systems with a cost advantage.

• $250 million invested in automation and capacity, raising gross margins above 40%.

• Sales split: 60% commercial (including multifamily, mixed-use, and institutional) and 40% single-family residential, mostly in Florida.

• Customers include glazing and general contractors for commercial, and specialty window dealers for residential.

Financial performance and backlog

• Ended the last quarter with a record backlog exceeding $1 billion, growing sequentially for several years.

• 2024 revenues projected to grow modestly, with strong order momentum supporting future growth.

• Commercial backlog provides visibility: 60% converts to revenue in 12 months, 90% in 18 months.

• Most 2025 business is already booked, with 2026 pipeline building.

• Large ultra-high luxury projects in Miami and South Florida are driving backlog and stretching execution timelines.

Market trends and geographic expansion

• Single-family orders peaked in June due to a Florida tax waiver, with normalization and growth resuming in August and September.

• Geographic expansion underway: showrooms in New York, South Carolina, and Houston, with New York generating over $30 million in orders year-to-date.

• Efforts to grow market share outside South Florida, especially in the rest of Florida and other states.

• Commercial business active in over 20 states, leveraging relationships to expand.

• Single-family residential outside Florida limited to select showrooms due to logistics.