Thu, May 8, 8:55 PM (41 days ago)
**Tecnoglass Inc. (TGLS) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $222.3 million, up 15.4% YoY, driven by strong U.S. market activity, particularly in residential and commercial sectors. - **Gross Profit:** $97.5 million, up 30.6% YoY, with a gross margin of 43.9%, reflecting better pricing, improved operating leverage, and favorable FX dynamics. - **Net Income:** $42.2 million, up 42.2% YoY, with an effective tax rate of 29.5%. - **Cash Flow:** Operating activities generated $46.9 million, while investing and financing activities used $18.2 million and $7.4 million, respectively. - **Liquidity:** $157.3 million in cash and cash equivalents, with $175.0 million available under lines of credit. **Key Metrics & Trends:** - **Operating Expenses:** Increased by 26.3% YoY due to tariffs, inflation, and geographical expansion. - **Interest Expense:** Decreased by 36.8% YoY due to voluntary debt prepayments and favorable interest rate hedges. - **Foreign Currency:** A 5% appreciation of the Colombian Peso would decrease net earnings by $2.1 million. - **Market Risks:** Exposure to changes in foreign currency exchange rates, commodity prices, and U.S. trade policies. **Future Operations & Uncertainties:** - **Investments:** $30.4 million in property, plant, and equipment to increase capacity and efficiency. - **Tariffs:** New U.S. tariffs on imports from Colombia could impact production costs and price competitiveness. - **Backlog:** $775.0 million in remaining performance obligations, with $366.5 million expected to be recognized in 2025. - **Debt:** $110.0 million in long-term debt, with maturities in 2026 and 2027. **Management's Outlook:** - Tecnoglass expects to continue generating positive cash flow from operating activities and maintain ample liquidity to service obligations. - The company is focused on expanding its U.S. presence, particularly in residential windows, and investing in vertical integration and capacity expansion. - Management remains optimistic about the company's growth prospects, driven by its structural advantages, innovative products, and commitment to quality and service.