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Sep 30, 2023

Tecnoglass Q3 2023 Earnings Report

Reported strong results driven by growth in both multi-family/commercial and single-family residential businesses, with record cash flow from operations.

Key Takeaways

Tecnoglass reported a 4.4% increase in revenue to $210.7 million in Q3 2023. Net income was $46.1 million, or $0.97 per diluted share, and adjusted EBITDA was $71.3 million. The company experienced strong backlog growth, expanding 20% year-over-year to a record $836 million.

Revenue increased by 4.4% to $210.7 million, entirely organic.

Single-Family Residential revenues reached a record $87.8 million.

Cash flow from operations reached an all-time high of $51.3 million.

Backlog grew by 20% year-over-year to a record $836 million.

Total Revenue
$211M
Previous year: $202M
+4.4%
EPS
$0.98
Previous year: $1.01
-3.0%
43%
Previous year: 52.2%
-17.6%
Backlog
$836M
Previous year: $697M
+20.0%
Gross Profit
$90.5M
Previous year: $105M
-14.1%
Cash and Equivalents
$119M
Previous year: $84M
+41.7%
Free Cash Flow
$29.9M
Previous year: $8.53M
+250.8%
Total Assets
$939M
Previous year: $678M
+38.5%

Tecnoglass

Tecnoglass

Tecnoglass Revenue by Segment

Forward Guidance

The company expects 2023 revenues to grow organically to a range of $835 million to $848 million, representing approximately 17% growth at the midpoint. Adjusted EBITDA is expected to be in the range of $300 million to $308 million, representing growth of approximately 14% at the midpoint.

Positive Outlook

  • Double-digit organic revenue growth.
  • Strong Adjusted EBITDA margins.
  • Substantial cash flow year-to-date.
  • Strong backlog in multi-family/commercial projects.
  • Significant white space for residential expansion.

Challenges Ahead

  • Unfavorable non-cash foreign currency effect on inventories during the third quarter.
  • Expectation for a higher mix of installation revenues during the rest of the year.
  • Moderating full year revenue outlook based on updated visibility on the timing of project deliveries through year end.
  • Challenging market conditions.
  • Impact of foreign exchange on gross margin.