Tecnoglass Achieves Unprecedented Growth in 2024
Tecnoglass Reports Exceptional Growth and Strong Financial Performance
- Full-year revenues increased 6.8% to a record $890.2 million, driven by organic growth, geographic expansion, and new market entries -
- Revenues from single-family residential sales reached $372.1 million, marking a 10.9% year-over-year increase -
- The company achieved net income of $161.3 million, equating to $3.43 per diluted share, alongside adjusted net income of $171.6 million, or $3.65 per diluted share -
- Adjusted EBITDA for the year was $275.8 million, representing 31% of total revenues -
- Gross profit reached $380 million, accounting for 42.7% of revenues -
- The firm saw all-time high cash flows from operations of $61.1 million for the quarter and $170.5 million for the entire year, showcasing 61.8% of adjusted EBITDA -
- The net leverage ratio achieved an all-time low, concluding the year with a net cash position and successfully reducing $65 million in debt
- Backlog continued to expand, increasing 27.6% year-over-year to a record $1.1 billion -
- The company returned $19.7 million to shareholders via dividends, reinforcing its commitment to shareholder value -
- Looking ahead, Tecnoglass introduced its full-year 2025 outlook with expectations for 10% revenue growth and 16% adjusted EBITDA growth at the midpoint -
Tecnoglass, Inc. (NYSE: TGLS), a leader in premium aluminum and vinyl windows, along with architectural glass for residential and commercial markets, recently announced its impressive financial results for the fourth quarter and full year ended December 31, 2024.
CEO José Manuel Daes expressed his enthusiasm for the company’s performance, emphasizing record results fueled by gains in market share, particularly in the single-family residential sector. The demand in multi-family and commercial segments has also consistently remained strong, aided by the operational edge of Tecnoglass’ vertically integrated business model. Efficient investments in automation and production capacity have significantly contributed to operational efficiencies, allowing the company to adapt to rising demand for its innovative product line.
Despite encountering currency fluctuations in the first half of the year, Tecnoglass maintained leading industry margins, producing record operating and free cash flow. Its robust capital position allowed the company to conclude the year with a net cash position while simultaneously rewarding shareholders with capital returns throughout the year. With a robust backlog and advancing growth initiatives, Tecnoglass is poised for continued value creation.
COO Christian Daes added, “Our success throughout 2024 was marked by continued strong demand across our markets, notably in the commercial space supported by vigorous quoting and bidding activity. Our year-end backlog of $1.1 billion illustrates our visibility into 2026, demonstrating solid future demand.” With the introduction of vinyl window deliveries in the second half of the year, Tecnoglass is optimistic about future growth. Although concerns loom regarding potential U.S. tariffs on aluminum imports, the company has identified strategies that could mitigate adverse impacts on its operations.
Fourth Quarter 2024 Highlights
In the fourth quarter, total revenues surged 23.1% to $239.6 million, expanding from $194.6 million in the same period the previous year. This record growth was supported by a robust rise of 24.3% in multi-family and commercial revenues, alongside a 21.3% increase in single-family residential revenue due to market share advancements and geographic expansion. Additionally, the firm saw benefits from previous order flow coinciding with the expiration of a local tax waiver, offsetting a slight negative impact from currency exchange rates.
The fourth-quarter gross profit ascended to $106.5 million, showcasing a gross margin of 44.5%, which is an increase from $83.0 million and 42.6% respectively a year earlier. This improvement illustrated strong pricing trends and operational leverage.
Operating expenses, representing selling, general, and administrative costs (SG&A), totaled $39.4 million for the fourth quarter, compared to $32.4 million in the previous year, primarily impacted by higher transportation, commission expenses, and personnel costs due to salary adjustments. Notably, SG&A as a percentage of total revenues improved slightly to 16.4%.
Net income for the fourth quarter was reported at $47.0 million, translating to $1.00 per diluted share, compared to $36.3 million and $0.77 per diluted share a year prior, marking a significant year-over-year increase. Adjustments to the net income indicated a figure of $49.3 million for the fourth quarter, or $1.05 per diluted share.
Full Year 2024 Performance Summary
Over the entire year, Tecnoglass achieved total revenues of $890.2 million, supplanting $833.3 million from the previous year. Gross profit fell slightly to $380 million versus the prior year, with a gross margin of 42.7%. Operating income for 2024 was $227 million compared to $259.8 million in the previous year. Adjusted net income for the full year stood at $171.6 million, translating to $3.65 per diluted share, slightly down from $189.3 million that equated to $3.98 per diluted share the prior year.
Strong cash generation through efficient working capital management allowed cash from operating activities to reach $170.5 million. Capital expenditures were noted at $79 million, which included various strategic investments including a new headquarters and flagship showroom.
Outlook for 2025
CFO Santiago Giraldo noted, “With strong execution throughout 2024 and a record backlog, we are projecting revenues between $940 million and $1.02 billion for 2025, representing a targeted 10% growth at the midpoint. Our Adjusted EBITDA target is projected at $300 million to $340 million, reflecting a robust EBITDA margin of approximately 32.7%.” The forecast relies on assumptions of stable currency rates, positive momentum in vinyl revenues, and ongoing solid commercial project activity. Tecnoglass anticipates that planned pricing reforms combined with operational efficiencies will offset challenges stemming from rising installation costs and salary increments. The company enters the year with robust momentum, aiming for another year of favorable growth and value creation.
Investor Relations Contact:
Santiago Giraldo
CFO
305-503-9062
investorrelations@tecnoglass.com
Frequently Asked Questions
What were the main highlights of Tecnoglass' 2024 performance?
Tecnoglass reported a revenue increase of 6.8% to $890.2 million, achieving record net income of $161.3 million and a strong backlog position.
How did Tecnoglass' sales in the residential segment perform?
The single-family residential revenues grew 10.9% year-over-year to reach $372.1 million, reflecting strong demand and market share gains.
What strategic initiatives is Tecnoglass pursuing for growth?
The company is focusing on market share expansion, increasing its geographic presence, and investing in product innovation, particularly with vinyl products.
How did Tecnoglass manage challenges in 2024?
Despite currency fluctuations impacting earnings, Tecnoglass maintained strong margins and cash flows, reducing debt by $65 million during the year.
What is the revenue outlook for 2025?
Tecnoglass anticipates revenues between $940 million and $1.02 billion for 2025, projecting about 10% growth at the midpoint with a strong adjusted EBITDA target.
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