Tecnoglass (TGLS) AI Stock Analysis

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Tecnoglass

(NYSE:TGLS)

Rating:78Outperform

Price Target:

$88.00

▲(7.96% Upside)

Tecnoglass's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis and valuation present moderate risks, with the stock showing neutral momentum and a moderate P/E ratio. The absence of notable corporate events maintains focus on core financial and operational strengths.

Positive Factors

Financial Performance

Q3 EBITDA was ahead of the Street's expectations, and management raised the midpoints of its 2024 outlook.

Future Growth

Tecnoglass' backlog continues to grow, supporting future commercial growth, while it still expects $5-10m monthly contribution from residential vinyl in 2025, and further geographic expansion opportunities.

Negative Factors

Market Volatility

Acknowledge expectations were high and review conclusion could create some volatility.

Tecnoglass (TGLS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.83B

Dividend Yield0.72%

Average Volume (3M)295.64K

Price to Earnings (P/E)21.0

Beta (1Y)1.58

Revenue Growth16.89%

EPS Growth24.91%

CountryUS

Employees9,837

SectorBasic Materials

Sector Strength58

IndustryConstruction Materials

Share Statistics

EPS (TTM)1.03

Shares Outstanding46,987,150

10 Day Avg. Volume384,448

30 Day Avg. Volume295,643

Financial Highlights & Ratios

PEG Ratio-2.12

Price to Book (P/B)5.91

Price to Sales (P/S)4.19

P/FCF Ratio40.98

Enterprise Value/Market Cap0.94

Enterprise Value/Revenue3.92

Enterprise Value/Gross Profit8.95

Enterprise Value/Ebitda16.93

Forecast

1Y Price Target

$86.00

Price Target Upside5.51% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Tecnoglass Business Overview & Revenue Model

Company DescriptionTecnoglass Inc. (TGLS) is a leading manufacturer of architectural glass and windows, primarily serving the construction and building sectors. Based in Barranquilla, Colombia, the company specializes in producing high-quality glass products, including energy-efficient windows and facades, which are designed for commercial, residential, and industrial applications. Tecnoglass is known for its innovative designs and sustainable practices, catering to a growing demand for eco-friendly construction materials.

How the Company Makes MoneyTecnoglass generates revenue through the sale of its glass and window products to various sectors, including commercial, residential, and industrial construction. The company operates a vertically integrated business model, which allows it to control the entire manufacturing process, from raw material procurement to final product delivery. Key revenue streams include the direct sale of glass products, framing systems, and installation services. Additionally, Tecnoglass benefits from strategic partnerships with construction firms, architects, and builders, which help in securing large contracts and projects. The company also focuses on expanding its market presence both domestically in Colombia and internationally, particularly in the United States, which significantly contributes to its earnings.

Tecnoglass Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: 4.06%|

Next Earnings Date:Nov 10, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance and growth across key business areas, with record revenues and improved margins. Strategic expansions and acquisitions are positioning Tecnoglass well for future growth. Despite challenges from tariffs and increased expenses, the company's proactive measures and strong cash flow support a positive outlook.

Q2-2025 Updates

Positive Updates

Record Revenue Achievement

Second quarter total revenues reached a record $255.5 million, up 16.3% year-over-year, driven by robust double-digit organic growth in both single-family residential and multifamily commercial sectors.

Strong Growth in Single-Family Residential Business

Revenues grew 14.5% year-over-year to a second quarter record of $109.6 million, with 29% sequential growth in orders compared to the first quarter of 2025.

Multifamily and Commercial Business Growth

Delivered solid growth of 17.8% year-over-year to $145.9 million, supported by demand for luxury projects in Florida and a record backlog of $1.2 billion.

Improved Gross Margin

Achieved a gross margin of 44.7%, representing a 400 basis point improvement year-over-year, aided by increased production, favorable product mix, and cost control.

Strategic Geographic Expansion

Expanded market presence in the U.S. with the acquisition of Continental Glass Systems and planned openings of new showrooms in California and other states.

Positive Cash Flow and Strong Balance Sheet

Generated operating cash flow of $17.9 million with a strong cash position of $137.9 million and $170 million of availability under revolving credit facilities.

Increased Revenue Guidance

Updated full-year revenue guidance to a range of $980 million to $1.02 billion, reflecting a growth of approximately 12% at the midpoint.

Negative Updates

Impact of Tariffs and Increased SG&A Expenses

SG&A expenses rose to $53.1 million or 20.8% of total revenues, affected by $5.9 million in aluminum tariffs and higher transportation and personnel expenses.

Pull Forward Effect on Revenue

A $5 million to $7 million revenue pull forward from Q3 into Q2 due to anticipated tariff-related pricing adjustments, which may affect third-quarter revenue figures.

Company Guidance

During the Tecnoglass Inc. Second Quarter 2025 Earnings Conference Call, the company reported record total revenues of $255.5 million, an increase of 16.3% year-over-year, driven by double-digit organic growth in both single-family residential and multifamily commercial businesses. The single-family residential revenues reached a record $109.6 million, up 14.5% year-over-year, with a sequential order growth of 29% from Q1 2025. The multifamily and commercial businesses grew by 17.8% year-over-year to $145.9 million. The company's backlog reached an all-time high of $1.2 billion, supported by a healthy book-to-bill ratio of 1.2x. Tecnoglass achieved a gross margin of 44.7%, a 400 basis point improvement from the previous year. Adjusted EBITDA for the quarter was $79.8 million, with a margin of 31.2%. The company revised its full-year revenue guidance to $980 million to $1.02 billion and narrowed its adjusted EBITDA outlook to $310 million to $325 million. The firm continues to focus on geographic expansion, strategic supply chain optimization, and cost control measures to sustain its growth trajectory and margin profile.

Tecnoglass Financial Statement Overview

Summary

Tecnoglass exhibits solid financial health with strong revenue growth and efficient operational performance. The balance sheet reflects prudent management of debt, and cash flows highlight excellent cash generation capabilities. Monitoring asset trends and maintaining growth momentum are advisable.

Income Statement

Very Positive

Tecnoglass demonstrates strong income statement performance with a consistent upward trajectory in revenue, from $374.9M in 2020 to $919.8M in TTM 2025, indicating a robust revenue growth rate. The gross profit margin and net profit margin are healthy, with TTM 2025 figures at approximately 43.8% and 18.9%, respectively. The company also maintains solid EBIT and EBITDA margins, showcasing efficient operational management.

Balance Sheet

Positive

The balance sheet is stable, with a debt-to-equity ratio declining over time, reflecting prudent financial leverage. The equity ratio is strong, with equity constituting a significant portion of total assets, enhancing financial stability. However, total assets decreased in TTM 2025 compared to 2024, which may warrant monitoring.

Cash Flow

Very Positive

Cash flow analysis reveals strong operating cash flow, consistently exceeding net income, which is a positive indicator of cash generation efficiency. Free cash flow growth is significant, with TTM 2025 showing a marked increase compared to previous years, underlining the company's robust cash management and potential for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	919.84M	890.18M	833.26M	716.57M	496.79M	374.92M
Gross Profit	402.50M	379.97M	390.93M	349.50M	202.58M	139.25M
EBITDA	212.83M	259.06M	289.44M	253.32M	136.60M	77.68M
Net Income	173.77M	161.31M	182.88M	155.74M	68.15M	23.88M
Balance Sheet
Total Assets	1.14B	1.02B	962.72M	734.31M	591.56M	532.02M
Cash, Cash Equivalents and Short-Term Investments	160.16M	137.53M	132.41M	105.72M	86.99M	69.29M
Total Debt	109.04M	109.31M	170.01M	169.48M	199.06M	224.49M
Total Liabilities	453.15M	385.46M	414.70M	383.98M	346.87M	319.06M
Stockholders Equity	685.14M	631.18M	548.02M	348.82M	243.86M	212.38M
Cash Flow
Free Cash Flow	168.18M	90.97M	60.87M	70.59M	65.74M	53.11M
Operating Cash Flow	183.98M	170.53M	138.83M	141.92M	117.25M	71.43M
Investing Cash Flow	-85.29M	-77.29M	-76.02M	-72.58M	-50.76M	-18.06M
Financing Cash Flow	-75.30M	-84.55M	-42.77M	-44.80M	-43.79M	-33.54M

Tecnoglass Technical Analysis

Technical Analysis Sentiment

Positive

Last Price81.51

Price Trends

50DMA

78.31

Positive

100DMA

76.72

Positive

200DMA

76.10

Positive

Market Momentum

MACD

0.16

Negative

RSI

60.61

Neutral

STOCH

57.04

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGLS, the sentiment is Positive. The current price of 81.51 is above the 20-day moving average (MA) of 76.75, above the 50-day MA of 78.31, and above the 200-day MA of 76.10, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 57.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGLS.

Tecnoglass Risk Analysis

Tecnoglass disclosed 56 risk factors in its most recent earnings report. Tecnoglass reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 2 New Risks

We are subject to trade investigations conducted by U.S. authorities over Colombian products that may result in additional duties for our products. Q4, 2024

Our business could be negatively impacted by potential tariffs imposed by the U.S government and trade tensions between the U.S. and Colombia. Q4, 2024

Tecnoglass Peers Comparison

Overall Rating

UnderperformOutperform

Sector (44)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPAC	81 Outperform	$562.57M	9.46	16.29%	7.92%	3.95%	27.28%
TGLS	78 Outperform	$3.83B	20.95	27.89%	0.72%	16.89%	24.91%
EXP	77 Outperform	$7.58B	17.22	31.87%	0.43%	0.88%	-4.17%
TTAM	76 Outperform	$2.72B	―		0.52%	―	―
SMID	76 Outperform	$203.70M	20.72	24.52%	―	33.00%	427.77%
LOMA	70 Outperform	$1.36B	13.51	14.05%	―	-37.30%	32.91%
Sector *	44 Neutral	AU$1.54B	-7.19	-27.94%	4.41%	-2.95%	-36.41%

* Basic Materials Sector Average

Performance Comparison

TGLS

Tecnoglass

81.51

24.18

42.18%

CPAC

Cementos Pacasmayo SAA

6.33

1.26

24.85%

EXP

Eagle Materials

233.73

-9.17

-3.78%

LOMA

Loma Negra Compania Industrial Argentina Sociedad Anonima

11.40

4.45

64.03%

SMID

Smith-Midland

41.76

13.26

46.53%

TTAM

Titan America SA

15.45

-0.87

-5.33%

Tecnoglass Corporate Events

Business Operations and StrategyFinancial Disclosures

Tecnoglass Recognized as Fastest-Growing Company by Fortune

Positive

Oct 30, 2024

Tecnoglass Inc., a top producer of high-end windows and architectural glass, has been named the 27th fastest-growing company in the U.S. by Fortune Magazine, driven by remarkable revenue and EPS growth from 2021 to 2024. This recognition underscores Tecnoglass’s strategic initiatives, innovation, and market strength, solidifying its position in the residential and commercial sectors, while generating impressive shareholder returns.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 13, 2025