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Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Tecnoglass (NYSE:TGLS), a company with a market capitalization of $3.62 billion, following the company’s second-quarter earnings report that exceeded previous expectations. According to InvestingPro data, the company maintains impressive gross profit margins of 43.79% and boasts a "GREAT" financial health score.
Tecnoglass reported adjusted EBITDA of $80 million for the second quarter of 2025, surpassing both Raymond James and Street estimates of $73 million. The company’s adjusted EBITDA margin expanded 200 basis points year-over-year to 31.2%, while gross margin improved 400 basis points compared to the same period last year. InvestingPro analysis reveals the company’s strong operational efficiency with a return on equity of 28% and return on invested capital of 22%.
The glass manufacturer posted double-digit growth across its end markets, with U.S. multi-family/commercial sales increasing 16% year-over-year, including 12% organic growth. Single-family sales rose 15% year-over-year, with orders increasing 29% sequentially compared to the first quarter of 2025.
Tecnoglass narrowed its 2025 guidance, adjusting its adjusted EBITDA forecast to $310-325 million from the previous range of $305-330 million, maintaining the same $318 million midpoint. The company also raised the low end of its total 2025 sales guidance to a new range of 10-15% year-over-year growth from the previous 8-15%.
The company continues to expect $25 million in 2025 tariff impacts, which it plans to fully mitigate during the calendar year through supply chain adjustments and price increases implemented in May, with offset effects beginning to appear toward the end of June.
In other recent news, Tecnoglass has seen its stock price target raised by DA Davidson to $95, up from $90. This adjustment comes as the firm maintains a Buy rating on Tecnoglass shares, driven by strong bookings and orders that are expected to bolster earnings growth. Analysts from DA Davidson have highlighted Tecnoglass’s strategic actions to mitigate tariffs, which are anticipated to offset cost inflation, contributing to a positive financial outlook. The company is trading at a multiple of 14x/12x projected EBITDA for 2025 and 2026, a favorable comparison to other companies in the building products sector with lower EBITDA margins. Furthermore, Tecnoglass’s market share gains and its ability to serve regions with resilient demand are noted as factors that could enable it to outperform its peers. The company’s superior margin profile is also expected to enhance its mid-term and long-term valuation. These recent developments reflect a promising trajectory for Tecnoglass, according to DA Davidson’s analysis.
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