Tecnoglass Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Timothy Wojs - Robert W. Baird & Co Inc - Analyst : Hey, everybody. Good morning. Maybe just first on 2026 and kind of calling out double-digit growth. I'm just curious if you could add a little bit of context around the visibility to that, what kind of you're assuming in that number for some of your larger project work, residential and then also just kind of acknowledging some of the kind of weaker kind of smaller commercial projects right now.

Question: Timothy Wojs - Robert W. Baird & Co Inc - Analyst : Okay. And then as I think about the cost side of things, is there a way just to give us some -- I think aluminum was a $5 million headwind, and you had a couple of million dollars from FX. But I guess how do those -- how does the aluminum piece kind of trend in the fourth quarter and early '26? And then if you could just maybe talk about kind of when you would expect some of the peso headwinds to kind of normalize out? Is that kind of a mid-2026 timeline? -- at this point?

Question: Timothy Wojs - Robert W. Baird & Co Inc - Analyst : Okay. And then I guess just last one for me. On the vinyl business, could you just give us an update maybe on kind of where that business is tracking in 2025 and maybe your kind of initial expectations for next year there? Thanks.

Question: Timothy Wojs - Robert W. Baird & Co Inc - Analyst : Great. Thanks, very much.

Question: Sam Darkatsh - Raymond James - Analyst : Good morning, Jose Manuel, Chris, Santiago, how are you? So I wanted to piggyback a little bit on Tim's questions around '26. Can you remind us what the price and tariff cost rollovers are from '25 into '26? And I guess what I'm getting at, Santiago, is what do you figure, generally speaking, '26 gross margins might shake out? And can you lever EBITDA margins next year?

Question: Sam Darkatsh - Raymond James - Analyst : Got you. And then as it relates to pricing, as it stands right now, do you anticipate further pricing actions to mitigate some of your costs? And what are you seeing out in the field in terms of a competitive response to all the aluminum pressures? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 3:00PM, TGLS.N - Q3 2025 Tecnoglass Inc Earnings Call

Question: Sam Darkatsh - Raymond James - Analyst : And then my last question, the prospective US facility that you are contemplating, I know it's still in the semi- early stages. But can you give us a sense of how much capacity you're looking at, what the CapEx cost might be and the timing of those sorts of expenditures?

Question: Sam Darkatsh - Raymond James - Analyst : So roughly $350 million to $400 million in total costs and maybe $500 million in capacity. Is that the broad-brush way of looking at it?

Question: Sam Darkatsh - Raymond James - Analyst : Very good. Thank you I appreciate it.

Question: Brent Thielman - DA Davidson & Co - Analyst : Hey, great. Thanks. Just coming back to the sort of the short-cycle commercial work that's maybe pushed some revenue out or delayed revenue, however you want to frame it. I mean what is sort of, in your view, kind of changed in the last few months that's influenced that? And I guess as a follow-up question, the backlog continues to grow here. Maybe what you see across the country in terms of high-end base? Is the market getting better? Is the backlog growth clearly an influence of you taking share? If you could comment on those two things, that would be great.

Question: Brent Thielman - DA Davidson & Co - Analyst : Maybe just the back -- I mean, look, the backlog is growing at the same time here. So is this -- is the market for high-end space getting better in the US? Is this that you're capturing more share in new regions, just discussion there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 3:00PM, TGLS.N - Q3 2025 Tecnoglass Inc Earnings Call

Question: Brent Thielman - DA Davidson & Co - Analyst : Okay. And then maybe just one more follow-up on the single-family product line, when you look outside of Florida, where do you -- are these different geographies you're targeting? Where are you getting the most traction? Like where are you getting a lot of momentum building the Texas East Coast West Coast?

Question: Brent Thielman - DA Davidson & Co - Analyst : Yeah, okay. Thank you.

Question: Julio Romero - Sidoti & Company LLC - Analyst : Thanks. Hey, good morning, everyone. I appreciate the preliminary revenue expectation for '26 and understand we'll get more color to come on the puts and takes there. Any preliminary thoughts on how we should think about capital allocation? I know you have the automated plant in Florida that you're currently weighing. Just trying to think about how you're thinking about capital expenditures and your recently upped share repurchase? And how would you have us think about that?

Question: Julio Romero - Sidoti & Company LLC - Analyst : Very helpful there. And then on single-family, I know we talked about vinyl and we talked about showrooms, but I wanted to get a progress update on Multimax, how that's doing at the moment. And a lot of the homebuilders have been rather pessimistic expressing that the near-term rebound isn't likely in the near term. I would be curious to how you're thinking about that product line and the outlook at the moment.

Question: Julio Romero - Sidoti & Company LLC - Analyst : Great. Thank you so much.