Tecnoglass Holdings Inc. 2026 Q2 Earnings Call

Thank you for joining us for Tecnoglass' second quarter 2026 conference call. A copy of the slide presentation to accompany this call may be obtained on the investors section of the Tecnoglass website. Our speakers for today's call are Chief Executive Officer, José Manuel Daes, Chief Operating Officer, Chris Daes, and Chief Financial Officer, Santiago Giraldo. I'd like to remind everyone that matters discussed in this call, except for historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, and future acquisitions. These statements are based on Tecnoglass' current expectations or beliefs and are subject to uncertainty and changes in circumstances.

Actual results may vary in a material nature from those expressed or implied by the statements herein due to changes in economic, business, competitive, and/or regulatory factors, and other risks and uncertainties affecting the operation of Tecnoglass' business. These risks, uncertainties, and contingencies are indicated from time to time in Tecnoglass' filings with the Securities and Exchange Commission. The information discussed during the call is presented in light of such risks. Further, investors should keep in mind that Tecnoglass' financial results in any particular period may not be indicative of future results. Tecnoglass is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions, or otherwise. I will now turn the call over to José Manuel, beginning on slide number four.

Thank you, Brad. Thank you everyone for participating on today's call. We are pleased to report another period of record revenue that demonstrates the strength and resilience of our business with robust double-digit growth in both our single-family residential and multifamily and commercial businesses. Our backlog is at another record level. We continue to gain market share. The strength of our platform continues to differentiate us in the market. That includes the quality of our products, our vertically integrated low-cost model, and our deep customer relationships. As we discussed last quarter, we expected the cost pressure from tariffs to hit ahead of the offsetting benefit from our pricing actions and other efficiency measures. That played out as anticipated. We have spent years building the flexibility to operate through shifting cost and trade conditions.

That model lets us respond faster than most companies in our industry facing those same cost pressures. Demand remains strong even with our own pricing actions now flowing into orders. Our industry-leading advantages are truly hard to replicate. Our geographic expansion is gaining traction with strong reception of our recently launched Legacy line and our West Coast showroom on track to open in late September to support growing demand and marking our seventh U.S. showroom opened in the past few years. Our vinyl line continues to build momentum, and our automation program is advancing on schedule. Subsequent to quarter end, we completed our redomiciliation from the Cayman Islands to the United States in July. This further aligns our corporate structure with our U.S. listing, enhances index eligibility, and broadens our potential investor base.

We also expect to complete the purchase of the land for the potential new U.S. facility in the coming weeks. As we discussed last quarter, we continue to advance discussions with state and local authorities on incentives that will support the economics of the potential project, and we are working to finalize the remaining terms. Tecnoglass has been built over many years with a focus on high-quality products, customer service, and operational excellence. That discipline continues to underpin the business today. Over the long term, we expect this model to keep generating durable cash flow, which supports our ability to return capital to shareholders. It also lets us keep investing in the growth initiatives that will drive long-term value. We remain as confident as ever in our ability to continue building long-term value for our shareholders. I will now turn the call over to Chris to provide additional operating highlights.

Thank you, José Manuel. Moving to slide numbers five and six. Our backlog grew 15.6% year-over-year to another record of $1.4 billion. Our backlog has shown consistent sequential growth every quarter since 2021, and our book-to-bill ratio of 1.1 extends our track record to 23 consecutive quarters above 1.0 times. Multifamily and commercial revenues grew 15.7% year-over-year to a record $168.8 million, reflecting consistent execution on an expanding project pipeline and continued market share gains, including growing contributions from projects beyond Florida. The strength of our backlog is supported by several key factors. First, we experienced virtually no project cancellations as we typically install windows in buildings that are already well advanced into the construction process. Second, our mix has shifted toward larger, high-end projects such as luxury condominiums and upscale lodging, which have been less sensitive to interest rate fluctuations.

Third, the continued geographic diversification of our project portfolio is driving our expansion in untapped markets. Florida represented approximately three-quarters of backlog in the second quarter versus approximately 80% in the first quarter and nearly 90% in the year-ago quarter, reinforcing our geographic expansion. Importantly, while this reflects strong growth in new markets, our Florida pipeline remains healthy, and we continue to expect strong demand trends in the Florida market through the balance of the year. Moving to slide number seven. Single-family residential revenues grew 15.4% year-over-year to a record $126.5 million. This performance was driven by continued market share gains through geographic expansion, growing contributions from our vinyl product line, and healthy order activity, including strong orders placed ahead of our May pricing actions.

As a reminder, approximately 65%-70% of our single-family revenues are tied to repair and remodel demand, which is more resilient and less correlated with mortgage rates. We see multiple avenues to continue gaining share. Our dealer network has expanded over 20% in the last 12 months, supported by our high-quality products and efficient 5-6-week lead times. We have generated approximately $15 million of single-family residential revenues outside of Florida year to date, on pace with our original target of roughly $30 million for the full year. Our Los Angeles showroom is on track to open in late September, which will be our fifth showroom outside of Florida and seventh overall, bringing our Legacy Lite aluminum window line to the West Coast market.

Our vinyl line continues to gain traction, contributing to this quarter's record results as we continue scaling across our footprint with this product that has more than doubled our addressable market. Turning to slide number eight. Despite a mute residential market, Tecnoglass has consistently outperformed industry benchmarks, with our single-family revenues growing at a roughly 40% organic CAGR since entering the market in 2018, while total U.S. residential improvement spending is expected to grow 5.1% this year. From a regional perspective, the South Atlantic, Mid-Atlantic, and South Central census divisions, where our business is more concentrated, are projected to be among the strongest-performing regions for residential construction spending in 2026. This geographic alignment between our platform and strong markets, combined with our expanding dealer base and the ongoing vinyl ramp, underpins our confidence in achieving our double-digit revenue growth guidance, which is well above expected end market growth.

I will now turn the call over to Santiago to discuss our financial results and full-year outlook.