Third Quarter 2026
Filed Nov 5, 2026Record revenue of $310.6 million rose 19.2% year-over-year, while gross margin, net income and Adjusted EBITDA declined amid Colombian Peso strength, aluminum costs and tariffs.
Record revenue, a record $1.43 billion backlog and higher full-year revenue guidance demonstrate strong demand and execution, but Q3 gross margin fell to 34.1% from 42.7%, while net income fell to $22.8 million from $47.2 million and Adjusted EBITDA fell to $47.7 million from $79.1 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total operating revenuesGAAP | $310.6M | – | 19.2% |
| Q3 2026 total revenues with foreign currency held neutralnon-GAAP | 308.2M | – | 18.3% |
| Q3 2026 foreign currency impact on total revenuesnon-GAAP | 2.38M | – | n.a |
| Q3 2026 gross profitGAAP | $106M | – | – |
| Q3 2026 gross marginGAAP | 34.1% | – | – |
| Q3 2026 selling expenseGAAP | 45.23M | – | – |
| Q3 2026 general and administrative expenseGAAP | 28.81M | – | – |
| Q3 2026 total operating expensesGAAP | $74M | – | – |
| Q3 2026 SG&A as a percent of total revenuesGAAP | 23.8% | – | – |
| Q3 2026 operating incomeGAAP | 31.93M | – | – |
| Q3 2026 income before taxesGAAP | 25.17M | – | – |
| Q3 2026 income tax provisionGAAP | 2.42M | – | – |
| Q3 2026 net incomeGAAP | $22.8M | – | – |
| Q3 2026 diluted income per shareGAAP | $0.51 | – | – |
| Q3 2026 adjusted net incomenon-GAAP | $27.3M | – | – |
| Q3 2026 diluted adjusted net income per sharenon-GAAP | $0.61 | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $47.7M | – | – |
| Q3 2026 Adjusted EBITDA marginnon-GAAP | 15.3% of total revenues | – | – |
| Q3 2026 cash provided by operating activitiesGAAP | approximately $21.5 million | – | – |
| Q3 2026 capital expendituresGAAP | approximately $66.1 million | – | – |
| Nine months ended September 30, 2026 total operating revenuesGAAP | 854.9M | – | 15.8% |
| Nine months ended September 30, 2026 gross profitGAAP | 311.8M | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | 113.4M | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | 79.20M | – | – |
| Nine months ended September 30, 2026 diluted income per shareGAAP | $1.78 | – | – |
| Nine months ended September 30, 2026 adjusted net incomenon-GAAP | 85.65M | – | – |
| Nine months ended September 30, 2026 diluted adjusted net income per sharenon-GAAP | $1.93 | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | 160.9M | – | – |
| Nine months ended September 30, 2026 cash provided by operating activitiesGAAP | $32.64M | – | – |
| Nine months ended September 30, 2026 acquisition of property and equipmentGAAP | −118.7M | – | – |
| Nine months ended September 30, 2026 cash dividendGAAP | −20.02M | – | – |
| Nine months ended September 30, 2026 share repurchasesGAAP | −16.48M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Multi-family/commercialExecution on a record backlog as projects moved into more advanced stages. | $192.4M | – | 30.9% |
| Single-family residentialContinued market share gains, geographic expansion and pricing actions, partially offset by the timing of orders placed in the second quarter ahead of the Company’s May pricing actions. | $118.1M | – | 4.1% |
| United States revenueNot separately specified in the filing. | 295.1M | – | 19.7% |
| Colombia revenueNot separately specified in the filing. | 11.77M | – | 54.0% |
| Other Countries revenueNot separately specified in the filing. | 3.71M | – | -41.2% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Revenue$1.10 billion to $1.14 billion
- NoteAdjusted EBITDA: $210 million to $220 million
Capital returns
- $6.7 million in cash dividends returned to shareholders during the third quarter.
- Approximately $92.5 million remained under the current share repurchase program as of September 30, 2026.
- Nine months ended September 30, 2026 cash dividend: (20,019) (in thousands), compared to (21,143) (in thousands).
- Nine months ended September 30, 2026 share repurchases: (16,475) (in thousands), compared to (30,327) (in thousands).
What drove it
- Total revenue received a $2.4 million benefit from changes in foreign currency exchange rates in Q3 2026.
- A stronger Colombian Peso, which appreciated approximately 20% year-over-year and 12% sequentially, drove approximately 580 basis points of the 860 basis point gross-margin decline.
- Approximately $8.4 million of non-cash inventory revaluation represented roughly 250 basis points of the FX impact.
- May pricing actions began converting into revenue during the quarter, while automation initiatives provided efficiencies.
- Q3 SG&A included approximately $15.5 million of expenses associated with Section 232 tariffs on finished aluminum window imports.
- Backlog expanded 13.2% year-over-year to a record $1.43 billion.
Concerns
- Gross margin was 34.1%, compared to 42.7% in the prior-year quarter.
- Higher raw material costs reflected U.S. aluminum purchased at peak prices earlier in the year.
- Gross margin also reflected an unfavorable mix from a higher level of installation revenue and higher labor costs related to the annual minimum wage adjustment in Colombia.
- A non-cash foreign exchange transaction loss of $3.3 million was recorded in Q3 2026, compared with a gain of $1.9 million in Q3 2025.
- The potential U.S. manufacturing facility remains subject to an active feasibility study and does not represent a commitment to proceed with construction.
What to watch
- The realization of May pricing in multi-family and commercial revenue, beginning with shorter-cycle jobs late in 2026 and larger projects during 2027.
- Whether lower aluminum secured after earlier peak-price purchases supports profitability.
- Automation savings and full-year pricing actions intended to fully offset tariff impacts in 2027.
- Conversion of the record $1.43 billion backlog and the pipeline of multi-family and commercial projects.
- Progress of the feasibility study for a potential state-of-the-art manufacturing facility in St. Lucie County, Florida.
Balance sheet and cash flow
- Total liquidity was approximately $380 million as of September 30, 2026, including $97.7 million of cash and cash equivalents and $280 million of availability under revolving credit facilities.
- Total debt was $293.6 million as of September 30, 2026.
- Net debt to LTM Adjusted EBITDA was approximately 0.9x.
- Cash and cash equivalents were $97,683 (in thousands) at September 30, 2026, compared to $100,901 (in thousands) at December 31, 2025.
- Trade accounts receivable, net was $282,375 (in thousands) at September 30, 2026, compared to $239,448 (in thousands) at December 31, 2025.
- Inventories were $274,879 (in thousands) at September 30, 2026, compared to $213,524 (in thousands) at December 31, 2025.
- Property, plant and equipment, net was $635,375 (in thousands) at September 30, 2026, compared to $476,159 (in thousands) at December 31, 2025.
- Long-term debt was $287,126 (in thousands) at September 30, 2026, compared to $171,202 (in thousands) at December 31, 2025.
- The Company completed the previously announced $23 million purchase of land in St. Lucie County, Florida in August.
Analysis
Tecnoglass delivered record Q3 revenue of $310.6 million, up 19.2% year-over-year, and raised its full-year 2026 revenue outlook to $1.10 billion to $1.14 billion. Multi-family/commercial revenue rose 30.9% to a record $192.4 million as projects progressed through the record backlog. Single-family residential revenue increased 4.1% to $118.1 million, with market-share gains, geographic expansion and pricing actions partly offset by order timing around the May pricing actions. The backlog reached a record $1.43 billion, up 13.2% year-over-year.
Profitability was the central weakness in the period. Gross profit was $106.0 million versus $111.3 million, and gross margin fell to 34.1% from 42.7%. The company attributed approximately 580 basis points of the 860 basis point decline to the stronger Colombian Peso, including roughly 250 basis points from an approximately $8.4 million non-cash inventory revaluation. Peak-priced U.S. aluminum, installation-revenue mix and Colombian labor costs also weighed on margin. SG&A rose to $74.0 million from $47.3 million, including approximately $15.5 million associated with Section 232 tariffs.
The margin and cost pressures flowed through earnings. Net income was $22.8 million, or $0.51 per diluted share, compared with $47.2 million, or $1.01 per diluted share. Adjusted net income was $27.3 million, or $0.61 per diluted share, versus $46.7 million, or $1.00 per diluted share. Adjusted EBITDA was $47.7 million, or 15.3% of total revenues, compared with $79.1 million, or 30.4% of total revenues. Management stated Adjusted EBITDA would have been approximately $8.4 million higher absent the non-cash inventory revaluation.
Cash generation and investment were significant features of the quarter. Q3 cash provided by operating activities was approximately $21.5 million and capital expenditures were approximately $66.1 million, including land for a potential U.S. facility and capacity and automation investments. The company paid $6.7 million in cash dividends, had approximately $92.5 million remaining under its repurchase program, and ended the quarter with approximately $380 million of liquidity, including $97.7 million of cash and cash equivalents. Total debt was $293.6 million.
The updated full-year outlook pairs a higher revenue range of $1.10 billion to $1.14 billion with an Adjusted EBITDA range of $210 million to $220 million. Management said the EBITDA outlook change mainly reflects the approximately $8.4 million non-cash inventory revaluation, while higher-than-expected revenue is helping offset elevated raw-material costs and the stronger Peso. The stated profitability recovery path rests on lower aluminum levels, pricing realization and automation savings, with management targeting full offset of tariff impacts in 2027.
Management, verbatim
Third quarter margins were pressured by costs outside of our control, including elevated aluminum costs, ongoing tariffs and a Colombian Peso at its strongest level since 2018.
José Manuel Daes, Chief Executive Officer of Tecnoglass
Our backlog reached another record of $1.43 billion, extending our track record of sequential growth since 2021 and reflecting consistent execution on a growing pipeline of multi-family and commercial projects.
Christian Daes, Chief Operating Officer of Tecnoglass
Based on our performance year to date and the visibility provided by our order book, we are raising our full year 2026 revenue outlook to a range of $1.10 billion to $1.14 billion and adjusting our Adjusted EBITDA outlook to a range of $210 million to $220 million.
Santiago Giraldo, Chief Financial Officer of Tecnoglass
Not in the filing
stated, not guessed- Prior full-year 2026 guidance was not provided, so comparison of actual results with prior guidance is unavailable.
- Free cash flow was not reported.
- Q3 2026 free cash flow was not reported.
- Full-year 2026 gross margin guidance was not reported.
- Full-year 2026 operating expense guidance was not reported.
- Full-year 2026 tax-rate guidance was not reported.
- Q3 2026 operating cash flow prior-year-quarter figure was not reported.
- Q3 2026 capital expenditures prior-year-quarter figure was not reported.
- Q3 2026 segment prior-year revenue figures were not separately reported.
- Q3 2026 multi-family/commercial and single-family residential sequential growth figures were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.