Earnings call transcript: Tecnoglass Q2 2025 earnings beat forecasts, stock dips

Tecnoglass Inc. (TGLS) reported strong financial results for Q2 2025, surpassing earnings and revenue forecasts. The company posted an earnings per share (EPS) of $1.03, beating the forecast of $0.97 by 6.19%. Revenue reached $255.5 million, exceeding expectations of $247.82 million by 3.12%. Despite these positive results, the stock fell by 5.08% in pre-market trading, closing at $74.35, down from $78.33. According to InvestingPro, the company maintains impressive gross profit margins of 44.74% and has achieved a "GREAT" financial health score of 3.29 out of 5, indicating robust operational efficiency.

Key Takeaways

• Tecnoglass reported record Q2 revenues of $255.5 million, a 16.3% increase year-over-year.
• The company’s EPS of $1.03 exceeded analyst expectations by 6.19%.
• Despite strong earnings, the stock price decreased by 5.08% in pre-market trading.
• Tecnoglass expanded its dealer network and geographic presence, planning a new showroom in California.
• The company maintains a strong cash position with $137.9 million and total liquidity of $310 million.

Company Performance

Tecnoglass demonstrated robust performance in Q2 2025, with revenues climbing to a record $255.5 million, marking a 16.3% increase from the previous year. The company’s expansion into new markets and product lines has contributed to its growth, particularly in the single-family residential and multifamily/commercial segments. The acquisition of Continental Glass Systems and the introduction of new vinyl window products have been well-received, supporting Tecnoglass’s competitive position.

Financial Highlights

• Revenue: $255.5 million, up 16.3% year-over-year
• Earnings per share: $1.03, a 6.19% surprise over the forecast
• Adjusted EBITDA: $79.8 million, a 31.2% margin, up from $64.1 million (29.2% margin) last year
• Gross margin improved by 400 basis points to 44.7%
• Strong cash position: $137.9 million with total liquidity of $310 million

Earnings vs. Forecast

Tecnoglass’s Q2 2025 earnings surpassed expectations with an EPS of $1.03, compared to the forecasted $0.97. The revenue of $255.5 million also exceeded the anticipated $247.82 million. These results reflect a positive trend for the company, as it continues to outperform projections, driven by strategic expansions and product innovations.

Market Reaction

Despite the earnings beat, Tecnoglass’s stock fell by 5.08% in pre-market trading, closing at $74.35. This decline contrasts with the company’s strong financial performance and may reflect broader market trends or investor concerns about future growth sustainability. The stock’s current price remains below its 52-week high of $90.34 but above the low of $58.03.

Outlook & Guidance

Tecnoglass projects full-year revenue between $980 million and $1,020 million, with an adjusted EBITDA of $310 million to $325 million. The company is optimistic about its continued growth in the single-family residential market and plans to ramp up its vinyl product line in 2026. The expansion into new U.S. markets and the development of a U.S. manufacturing facility are key strategic initiatives.

Executive Commentary

"We are seeing strong customer reception and growing demand for our innovative vinyl solutions," said Santiago Giraldo, CFO. CEO Jose Manuel Daes added, "The country is big and there are many states that we were non-present. Now we’re going to be nationwide." These statements reflect the company’s confidence in its growth strategy and market expansion.

Risks and Challenges

• Supply chain diversification: While efforts are underway, challenges remain in ensuring a steady supply of materials.
• Market saturation: Expanding into new geographic areas may present competition and market saturation risks.
• Macroeconomic pressures: Economic fluctuations could impact construction demand and, consequently, Tecnoglass’s growth.
• Currency fluctuations: Hedging against the Colombian peso may not fully mitigate currency risk.
• Execution risk: Successfully integrating new acquisitions and expanding product lines require effective execution.

Q&A

During the earnings call, analysts inquired about Tecnoglass’s pricing strategy and market expansion plans. The company highlighted its recent pricing increases of 5-7% on residential products and positive reception for its new vinyl window products. Analysts also expressed interest in the company’s geographic expansion, particularly into markets like Tampa, Jacksonville, and Texas.

Full transcript - Tecnoglass Inc (TGLS) Q2 2025:

Conference Operator: Good morning and welcome to the Tecnoglass Incorporated Second Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

I would now like to turn the conference over to Brad Cray, Investor Relations. Please go ahead.

Brad Cray, Investor Relations, Tecnoglass: Thank you for joining us for Tecnoglass’ Second Quarter twenty twenty five 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, Jose 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, 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 SEC. 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 Jose Manuel, beginning on Slide number four.

Jose Manuel Daes, Chief Executive Officer, Tecnoglass: Thank you, Pat, and thank you, everyone, for participating on today’s call. We are excited to report another exceptional quarter that demonstrates the strength and resilience of our business. Our second quarter total revenues reached a record $255,500,000 up 16.3% year over year. This strong growth was driven almost entirely by robust double digit organic growth in both our single family residential and multifamily commercial businesses. These outstanding results showcase our ability to consistently outperform market trends while expanding margins and gaining market share.

Our vertically integrated platform continues to deliver exceptional value and flexibility, giving us confidence in our ability to respond effectively to evolving market conditions. At the same time, we are maintaining our industry leading margins and commitment to operational excellence. In our single family residential business, we grew revenues 14.5% year over year to a second quarter record of $109,600,000 This performance reflects continued success in our geographic expansion strategy, market share gains and meaningful contributions from our Vinyl product line. We were also pleased to see strong sequential growth of 29% single family residential orders compared to the 2025, making the second highest quarter of orders in the history of the company. Our multifamily and commercial businesses delivered solid growth of 17.8% year over year to 145,900,000.0 demonstrating our ability to capitalize on healthy demand for luxury mid to high rise projects in Florida.

The momentum we are seeing in project activity reinforces our confidence as we continue to execute on our growing backlog, now at an all time high of $1,200,000,000 In the face of ongoing macroeconomic uncertainty and a higher cost environment, we were pleased to expand our margins substantially during the quarter. We achieved a gross margin of 44.7%, representing a 400 basis point improvement year over year. Our margin performance reflects the benefits of increasing our production to achieve a record revenue quarter as well as favorable product mix and pricing and cost control actions. Supported by our vertically integrated model, all these actions substantially minimize our exposure to market volatility and are expected to position us well as we move forward. In conclusion, our record second quarter results demonstrate the power of our vertically integrated business model and our ability to execute in a dynamic environment.

With our strong balance sheet, substantial cash position and a growing backlog, we believe we will deliver additional shareholder value. We remain focused on being reliable partner to our customers and making necessary adjustments to maintain supply chain stability. Overall, we are confident in our trajectory and our ability to continue growing faster than the market in 2025 and beyond. I will now turn the call over to Christian.

Christian Daes, Chief Operating Officer, Tecnoglass: Thank you, Jose Manuel. Moving to Slide number five. Our robust second quarter performance across both our single family residential and multifamily commercial businesses reflects our consistency in delivering best in class products and service to our customers. Our single family residential business achieved exceptional results with revenues reaching a second quarter record of 109,600,000.0 representing strong growth of 14.5% year over year. Order levels remain healthy with the second quarter marking the second highest residential order quarter in Tecnoglass history, building a strong momentum into the second half and beyond.

This outstanding performance was driven by continued market share gains through geographic expansion and meaningful contributions from other geographies beyond our traditional markets. On the multifamily and commercial side, we delivered revenue growth 17.8% year over year, reflecting continued strength in key markets and solid light commercial activity. We ended the quarter with a record backlog of $1,200,000,000 representing approximately 2.2 times our LTM multifamily and commercial revenues, marking our thirty third consecutive quarter of year over year backlog expansion. This backlog provides exceptional visibility into our project pipeline extending well into 2026 and beyond. The successful completion of our Continental Glass System asset acquisition in April further strengthens our capabilities in high end architectural glass and glazing solutions.

This action also diversifies our production footprint into The U. S. Market providing additional growth avenues as we execute our strategic vision. Moving to slide number six. Our backlog has shown consistent sequential growth since 2021, highlighting strong bidding activity and a solid project pipeline across our markets.

Our book to bill ratio remained healthy at 1.2 times as of the second quarter, continuing our track record of maintaining a ratio above 1.1 times for eighteen consecutive quarters. Historically, roughly two thirds of our reported backlog converts to revenue over the following twelve months. As previously discussed, our backlog composition has been shifting towards high end, large sized projects, which are less interest rate sensitive and are executed over a multiyear time horizon. The strength of our backlog is supported by several key factors. First, we experienced virtually no project cancellation as we typically install windows in buildings that are already well advanced into the construction process.

Second, our backlog is primarily composed of projects that have shown resilience to interest rate changes and economic fluctuations. And third, the continued geographic diversification of our project portfolio helps to reduce regional market concentration risk. While external factors may occasionally impact delivering timing, our consistently robust book to bill ratio reinforces our confidence in delivering sustained revenue growth for years to come. I will now turn the call over to Santiago to discuss our financial results and improve outlook for 2025.

Santiago Giraldo, Chief Financial Officer, Tecnoglass: Thank you, Christian. Turning to single family residential on Slide number seven. Our single family residential business continues to perform exceptionally well and represents a key driver of our overall growth strategy. Single family residential revenues reached a record $109,600,000 in

Julio Romero, Analyst, Sidoti and Company: the second quarter,

Santiago Giraldo, Chief Financial Officer, Tecnoglass: representing robust growth of 14.5% year over year and our second highest quarter on record. This outstanding performance reflects several key factors. This includes our continued geographic expansion with contributions from new markets, our expanded product portfolio included vinyl growth, and to a lesser extent, customers accelerating orders ahead of anticipated tariff related pricing adjustments. In light of 5,000,000 to $7,000,000 of residential revenue pull forward from Q3 into Q2, we were pleased to see 29% sequential growth in customer orders during the quarter, which puts us squarely on track to execute against our full year objectives. Looking ahead, we remain optimistic about the organic growth opportunities in our single family residential business, which are supported by several key drivers.

First, our expanding dealer network continues to benefit from our industry leading five to six week lead times and our innovative high performance product offerings. Second, we continue to see strong demographic trends such as population migration patterns across our key markets, supporting our growth outlook. And third, our ongoing geographic expansion is gaining momentum. To that point, we were pleased to commence actions in April to open a new showroom in California, which is expected to help promote our newly developed legacy aluminum product line. We’re already seeing encouraging order momentum in advance of the showrooms expected opening in the fourth quarter, supported by our established sales presence and strong product availability in the region.

Turning to the drivers of revenue on Slide number nine. Total revenues for the second quarter increased 16.3% year over year to a record $255,500,000 with double digit growth across both our single family residential and multifamily and commercial businesses, reflecting strong demand for our best in class product offerings, geographic expansion and early contributions from our Continental acquisition. Looking at the profit drivers on slide number 10. Adjusted EBITDA for the 2025 was $79,800,000 representing an adjusted EBITDA margin of 31.2%, increased on both metrics compared to $64,100,000 or a 29.2% margin in the prior year quarter. Second quarter gross profit increased to $114,300,000 representing a 44.7 percent gross margin, compared to gross margin profit of 89,600,000.0 representing a 40.8% gross margin in the prior year quarter.

The 400 basis point improvement in gross margin was primarily driven by increased volumes on record revenues, generating operating leverage as well as stable raw material cost, favorable mix and weaker peso. In April, we hedged a large portion of our $20.25 Colombian peso exposure at premium rates at roughly 9% better than last year. This effectively offsets local currency inflationary pressures. SG and A expenses were 53,100,000.0 or 20.8% of total revenues, compared to $38,400,000 or 17.5% of total revenues in the prior year quarter. The increase was primarily attributable to incremental selling expenses associated with tariffs, including approximately 5,900,000 in aluminum tariffs paid in April.

Non recurring expenses associated with the Continental acquisition and higher transportation and commission expenses associated with our revenue growth, as well as increased personnel expenses related to annual salary adjustments implemented at the beginning of the year. As a reminder, during the quarter, we took decisive measures to mitigate the impact of tariffs through our pricing and sourcing actions. We’re beginning to see the benefits of our strategic supply chain diversification, following our shift to U. S. Sourced aluminum and an updating pricing model with margins starting to strengthen toward the June, once higher price orders started getting invoiced.

Looking forward, we do not expect to be as heavily impacted by tariffs as we have adjusted our supply chain and have taken pricing actions in order to compensate for the incremental expense. The recurring tariffs on standalone products continue to be effectively passed through to clients and our proactive approach to supply chains optimization and pricing adjustments has positioned us to maintain our competitive position and margin profile. Now, examining our strong cash flow and balance sheet on slide number 11. We generated operating cash flow of 17,900,000 in the second quarter, supported by our efficient working capital management and the favorable cash dynamics of our single family residential business, which features upfront payments and shorter conversion cycles. We achieved this positive cash generation despite the annual timing of income tax payments, which totaled approximately $36,000,000 during the quarter.

Capital expenditures of $32,500,000 in the quarter included scheduled payments on previous investments along with $15,100,000 of the Continental Glass Systems asset acquisition classified as capital expenditures. We continue to expect capital expenditures to drop significantly in the back half of 2025, driving even stronger free cash flow through the year end. Our balance sheet remains robust with total liquidity of approximately $310,000,000 at quarter end, including a strong cash position of $137,900,000 and $170,000,000 of availability on their revolving credit facilities. With total debt of $109,200,000 our strong liquidity position and solid cash flow generation position us well to achieve our growth objectives and further invest in strategic growth initiatives. On Slide number 12, our ability to deliver exceptional returns continues to distinguish us within the industry.

Over the past three years, our strategic investments and operational excellence initiatives have consistently generated superior value for our shareholders. This sustained outperformance demonstrates the resilience of our business model, our commitment to operational discipline, and our prudent approach to capital deployment. Now, moving to our outlook on Slide 14. We are proud of our robust performance through the 2025. The continued strength we are seeing across our business and our visibility into demand trends for the second half of the year support an increase to the low end of our full year revenue guidance.

We now expect revenues to be in the range of $980,000,000 to $1,020,000,000 reflecting growth of approximately 12% at the midpoint. Additionally, we are narrowing our adjusted EBITDA outlook to a range of $310,000,000 to $325,000,000 This updated outlook maintains our assumption that our pricing initiatives and other cost mitigation efforts will more than compensate for our projected $25,000,000 full year impact from elevated input costs and tariffs on select products. In our single family residential business, we estimate the significant majority of the 5,000,000 to $7,000,000 of accelerated customer orders during the second quarter were pulled from the third quarter. We have provided a detailed set of assumptions in the presentation to support both the high end and the low end of our revenue and adjusted EBITDA guidance, encompassing our expectations for our Vinyl business ramp up, residential market performance, pricing adjustments, tariff impacts, margin dynamics and foreign exchange rates. These comprehensive assumptions reflect various scenarios ranging from the more favorable interest rate environment and healthy residential business growth at the high end to a more conservative volume projection and other potential headwinds at the low end of our guidance range.

We continue to expect a full year of a strong cash flow generation. That said, we’re updating our projection for capital expenditures to be in the range of $65,000,000 to $75,000,000 to reflect the tail end of previous investments, maintenance CapEx, further investments in efficiency initiatives and expenditures related to our Continental Glass Systems asset acquisition. Working capital should continue to be a source of cash as we expand our single family residential revenues, though this will be partially offset by longer cash conversion cycles in our commercial multifamily business. In conclusion, our second quarter twenty twenty five results demonstrate the strength of our business model and our ability to execute consistently across market cycles. We’re seeing strong customer reception and growing demand for our innovative vinyl solutions, which complement our traditional aluminum and glass offerings and contribute meaningfully to our overall growth trajectory.

We’re navigating the shifting construction dynamics with flexibility, supported by a more resilient supply chain built through past disruptions. Our strategic initiatives, proactive management of external challenges, strong balance sheet and growing backlog all position us very well for continued success. Additionally, the completion of the Continental Glass asset acquisition further cements our market presence in key geographies and provides additional growth avenues as we continue to execute on our strategic vision. We remain committed to delivering industry leading returns while maintaining the financial flexibility to capitalize on further growth opportunities in 2025 and beyond. With that, we will be happy to answer your questions.

Operator, please open the line for questions.

Conference Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. First question is from Julio Romero with Sidoti and Company.

Please go ahead.

Julio Romero, Analyst, Sidoti and Company: Great. Thanks. Hey, good morning. Jose Manuel, Cristiano Santiago. Good morning.

So I wanted to start out on the revenue line. I appreciate you calling out the pull forward of 5,000,000 to $7,000,000 in the second quarter. How much of that pull forward in your view was after the Section two thirty two increase in June? And more broadly, how has that announcement translated to any change in customer behavior?

Santiago Giraldo, Chief Financial Officer, Tecnoglass: It was before we announced so we announced price increases to take place towards the May, so it was done then. So what you saw was a little bit of that effect towards the June, but largely everything that was pulled forward will actually become invoiced July, August, and September. So we expect most of that to impact Q3, not Q4.

Julio Romero, Analyst, Sidoti and Company: Got it. Okay, that’s helpful. And it sounds like you’ve made progress with narrowing down locations for the plans to build out a manufacturing facility in The U. S. Just any early takeaways you can call out from having Continental glass under your belt that you’re applying to the feasibility study for the fully automated plant?

Christian Daes, Chief Operating Officer, Tecnoglass: Well, we are in the stages of doing the math and engineering and the location and everything is coming out looking really good, but we don’t want to say too much at this time. The level of automation that we’re going to have is going to make us be very close to the levels of EBITDA that we’re looking at today from Colombia producing in The US. We have a good feeling about the plant in The US. We’re well into the design, but still a little early to make an announcement or a decision, but it is coming soon.

Julio Romero, Analyst, Sidoti and Company: Great. Good context. I’ll pass it on. Thanks.

Conference Operator: The next question is from Tim Wojs with Baird. Please go ahead.

Tim Wojs, Analyst, Baird: Hi, everybody. Good morning. Nice job. Good morning. Hey, just to clarify Santiago, so the 5,000,000 to $7,000,000 of pull forward, that’s an order number, right?

Like that didn’t get pulled really into the second quarter revenue, did it?

Santiago Giraldo, Chief Financial Officer, Tecnoglass: Some of it did, Tim, because if these orders started getting done ahead of that price increases at the May and you place those orders towards the April, May, you get some of that into Q2, towards the end of Q2. That’s the calculation that we did.

Tim Wojs, Analyst, Baird: Okay. So there’s a part of the 5% to 7% in Q2 and then the rest is in Q3 basically?

Santiago Giraldo, Chief Financial Officer, Tecnoglass: No, no, no. The 5% to seven is Q2. Rest is

Julio Romero, Analyst, Sidoti and Company: in Got

Rohit Seth, Analyst, B. Riley: you.

Julio Romero, Analyst, Sidoti and Company: Okay.

Tim Wojs, Analyst, Baird: I got you. Okay. Then I guess on the margins, just the midpoint of the guidance, just doing some math I think it suggests that the margins might be down a little bit in the second half of the year. I’m just trying to kind of think through the puts and takes there. How you’re thinking about the margin cadence in the second half especially since I think you grew EBITDA or EBITDA margin this quarter despite having those kind of aluminum tariff costs?

So just kind of puts and takes there would be helpful.

Santiago Giraldo, Chief Financial Officer, Tecnoglass: From a gross margin perspective, we’re modeling at the midpoint of guidance in line with year to date, so not a whole lot of difference there.

Christian Daes, Chief Operating Officer, Tecnoglass: And you always have to remember that we like to be conservative on the projections, because we never want to miss, but we want succeed.

Santiago Giraldo, Chief Financial Officer, Tecnoglass: The one other put and take here, Tim, is that we’re expecting commercial construction to ramp up quite a bit the rest of the year. So obviously, as you know, that comes with more installations. So if anything, a potential headwind on margins would be from that. But you also have the full impact of the price increases that were done in May that are going to start fully hitting in Q3. So on a conservative basis, we’re modeling gross margins at the same level as what you have seen year to date.

Julio Romero, Analyst, Sidoti and Company: Okay. And then that’s helpful.

Tim Wojs, Analyst, Baird: And then just on pricing, I guess, we’re kind of a few months delay kind of on now from the tariffs. Just where are your pricing increases kind of landing relative to the competition as they’re kind of layering things in? Are you in line? Are you kind of below, above? And just is that pricing all in residential?

Or have you been able to kind of pass through some pricing in commercial? So sorry, there’s a bunch of questions there, but just a

Santiago Giraldo, Chief Financial Officer, Tecnoglass: Yes, no, It’s in line. We had announced prior to this call something around five to seven percent strictly on the residential side because you also have on the commercial side contracts that have already been in place. But any any new commercial jobs that are being signed are signed with the new pricing. So you might actually get the benefit of short dated kind of light commercial projects that get invoiced this year, but most of the impact will be on the single family residential side orders that came in after May. And in line with what we’ve seen from others, but I would say on the low end, as far as that benchmark goes, we’ve heard of kind of high single digits to low double digits even price increases across the board.

Julio Romero, Analyst, Sidoti and Company: Okay. Sounds good. Thanks a lot guys. Thanks.

Conference Operator: The next question is from Rohit Seth with B. Riley. Please go ahead.

Rohit Seth, Analyst, B. Riley: Hey, thanks for taking my Just building on the order questions, maybe you can give us a sense of what you’ve seen so far in July.

Santiago Giraldo, Chief Financial Officer, Tecnoglass: Very good month. I mean, it’s been kind of very robust across the board. You saw what we said about orders in Q2, 29% up sequentially from Q1. July was a very strong month. I would say it was the highest revenue month that we’ve had to date in the company’s history.

And as far as order goes, continues to be strong, which gives us kind of good visibility for the rest of Q3.

Rohit Seth, Analyst, B. Riley: All right. Thank you. And then just on the new product lines, the Vinyl Windows, maybe just give us a status update. You guys talked last quarter about getting some of those new specs kind of certified. Any update on that front?

Jose Manuel Daes, Chief Executive Officer, Tecnoglass: Yes, we’re working on that and we have new lines that are selling already in Utah, Nevada, California, Arizona and the complete line is going to be ready by the end of the year and we expect that next year with the vinyl complete, the new legacy line complete and some other new products that we’re testing we expect to ramp it up next year for sure.

Rohit Seth, Analyst, B. Riley: Last quarter you mentioned a catapulting of sales and you still feel the same?

Jose Manuel Daes, Chief Executive Officer, Tecnoglass: Yes, yes, yes. I mean the reaction of the market towards our products is well received. I mean they love it. We’ve been doing rounds in all those Western states and it’s really exciting. I mean, we are more than hilarious about it.

Rohit Seth, Analyst, B. Riley: All right, fantastic. Maybe if I could squeeze the last one. You’ve had a great run here with replacing windows in Florida. Maybe just give us a sense of what’s happening in the marketplace.

Jose Manuel Daes, Chief Executive Officer, Tecnoglass: No, the market is really strong in every segment even though the month of July and August are the worst because all the fathers go on vacation with their sons. This is the summer months. But what I hear from everybody, all the GCs, all the developers is that things are coming back. People are getting used to the mortgages at those levels. So residential is going to start picking up again.

I mean we are very excited about the Florida market and even more excited about the new markets that we’re entering because the reception is unbelievable.

Rohit Seth, Analyst, B. Riley: All right, fantastic. I’ll pass it on. Thank you.

Conference Operator: The next question comes from John Velez with D. A. Davidson. Please go ahead.

Julio Romero, Analyst, Sidoti and Company: Hi, good morning. Congrats on the quarter. Good morning. Thank you. I want

Brad Cray, Investor Relations, Tecnoglass: to start just sort of wondering what sort of opportunities are there outside of your current footprint within Florida?

Jose Manuel Daes, Chief Executive Officer, Tecnoglass: Well, we are just entering the market in vinyl. By the end of the year vinyl is going to be ready and from Tampa up there is a huge market for those windows. And everybody, all the dealers that we have, they buy aluminum and they buy vinyl and they want to buy the vinyl from us but we don’t the complete line which we’re going to have by the end of the year. So that’s one. And number two, we for example are selling now in Jacksonville in the Panhandle that we were non existent before.

Santiago Giraldo, Chief Financial Officer, Tecnoglass: As a follow-up to that, from year end to June, we’ve increased our dealers by about 15%, 20%, and a lot of those come from other geographies outside of Florida. So to the point of Jose, now having the product to sell in other states and having dealers in place is paving the way. Seed has been planted for us to start growing those markets significantly. And they’re already contributing, by the way. I mean, it’s not there’s already evidence of that happening.

Brad Cray, Investor Relations, Tecnoglass: And just a follow-up, does that apply as well for the commercial side of the business?

Jose Manuel Daes, Chief Executive Officer, Tecnoglass: Yes. Yes. It does. We are doing a lot of commercial works now in Tampa, Jacksonville, Georgia, Atlanta, and now we’re going to open in Nashville, which is a hot market. We’re going to open in Austin, Texas, Dallas and Houston.

The country is big and there are many states that we were non present. Now we’re going to be nationwide.

Santiago Giraldo, Chief Financial Officer, Tecnoglass: Perfect. I appreciate the help. Thanks. Thank you.

Conference Operator: This concludes our question and answer session. I would like to turn the conference back over to Jose Manuel Daez for any closing remarks.

Jose Manuel Daes, Chief Executive Officer, Tecnoglass: Well, everyone for participating today. We are very excited about the future of the company. We have planted the seeds, as Santiago said, and we expect much better news. Thank you.

Conference Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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