Q1 2025 Tecnoglass Inc Earnings Call
Operator: Good day and welcome to the Tecnoglass Inc. First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode.
Good day and welcome to the Technical Glass, Inc. First quarter 2025 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.
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After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on the teach them to withdraw your question. Please press Star then two.
Operator: Please note, this event is being recorded.
Speaker Change: Please note. This event is being recorded I would like now to turn the conference over to Mr. Brad Cray Investor Relations. Please go ahead. Thank you for joining us for technical losses first quarter 2025 conference call.
Brad Cray: I would like now to turn the conference over to Mr. Brad Cray, Investor Relations. Please go ahead.
Brad Cray: Thank you for joining us for Tecnoglass' first quarter 2025 conference call.
Brad Cray: A copy of the slide presentation to accompany this call may be obtained on the investor section of the Tecnoglass website.
Speaker Change: Copy of the slide presentation to accompany this call may be obtained on the investors section of the technical last website. Our speakers for today's call are Chief Executive Officer, Jose Manuel Dais, Chief Operating Officer, Bruce <unk>, and Chief Financial Officer, Santiago go around them.
Brad Cray: Our speakers for today's call are Chief Executive Officer, Jose Manuel Daes, Chief Operating Officer, Chris Daes, and Chief Financial Officer, Santiago Giraldo.
Brad Cray: I'd like to remind everyone that matters discussed in this call, except for historical information, are forelooking 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's 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's business. These risks, uncertainties, and contingencies are indicated from time to time in Tecnoglass's filings with the SEC.
Speaker Change: 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.
Speaker Change: Including statements regarding future financial performance future growth and future acquisitions. These statements are based on technical Atlas 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 <unk>.
Speaker Change: Economic business competitive <unk> regulatory factors.
Speaker Change: Other risks and uncertainties affecting the operation of technical losses business.
Speaker Change: These risks uncertainties and contingencies are indicated from time to time in technical Watson filings with the SEC.
Brad Cray: The information discussed during the call is presented in light of such risks.
Speaker Change: The information discussed during the call is presented in light of such risks.
Brad Cray: Further, investors should keep in mind that Tecnoglass's financial results in any particular period may not be indicative of future results.
Speaker Change: Further investors should keep in mind that technical asked its financial results in any particular period may not be indicative of future results, taking the west 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.
Brad Cray: 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.
Jose Manuel Daes: I will now turn the call over to Jose Manuel, beginning on slide number four. Thank you, Brad, and thank you, everyone, for participating on today's call. We are thrilled to report an exceptional start to 2025, with record first quarter results that demonstrate the ongoing strength of our business model. Our revenues increased by 15% year-over-year to reach a first quarter record of $222.3 million. Driven entirely by robust double-digit organic growth. across Bolsa Residencial and Multifamily Commercial Business. These outstanding results significantly outperform broader market trends and underscore our ability to consistently gain market share even during periods of macroeconomic uncertainty.
Speaker Change: I will now turn the call over to Jose Manuel beginning on slide number four.
Jose Manuel: Thank you Brett.
Speaker Change: True everywhere Zoro does your baby on today's call.
Speaker Change: We're thrilled to report that the cultural most so to put it on your phone.
Speaker Change: Record first quarter result of doubles Boy Oh Boy this drug.
Speaker Change: Our business model.
Speaker Change: Our revenues increased by 50% year over year.
Speaker Change: Joe first quarter record of 222 or three.
Speaker Change: Even the early by robust double digit organic growth.
Speaker Change: Our girls Bozo residential and multifamily commercial business.
Speaker Change: There's always going to be resolved.
Speaker Change: If you can't really outperform broader market trends.
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Speaker Change: We need to consistently gain bulker sure.
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Jose Manuel Daes: Our single-family residential revenues grew 21.6% year-over-year to a first-quarter record of 88.9 million. These impressive growths reflect continuous strength in our flooring operations, ongoing geographic expansion, and expanded brand recognition, which continues to allow us to gain market share. Our multifamily and commercial businesses deliver double-digit percentage growth of 11.6% year over year to 133.4 million. reflecting continual execution of our expanding backlog. We achieved these results while significantly improving our profitability. During the quarter, we were pleased to drive gross margin expansion and adjusted EBITDA growth. A substantial improvement in both metrics reflects the benefits of a vertically integrated business model.
Speaker Change: Oh sure, you'll probably residual revenues.
Speaker Change: 21, 6% year over year, well first quarter Road corridor.
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Speaker Change: This impressive growth reflects continued strength.
On the operations.
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Speaker Change: But it should have been.
Speaker Change: But the brand recognition.
Speaker Change: We continue to have lows.
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Speaker Change: Our multifamily and commercial businesses.
Speaker Change: We were double digit percentage growth of 11, 6% year over year.
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Jose Manuel Daes: Operational Efficiencies, and Favorable Product Meet. To that end, we are confident in our ability to maintain industry-leading profitability driven by several strategic initiatives. First, we have hedged a large portion of our 2025 Colombian peso exposure at premium rates roughly 9% better than last year. which effectively offsets higher local currency employee compensation. Second, we've adjusted pricing within our single-family residential segment. And third, we have adjusted certain supply chain channels in order to substantially minimize our exposure to tariffs.
Speaker Change: Operator.
Speaker Change: Yours.
Speaker Change: Favorable product mix.
Speaker Change: The other thing we're doing really good debate.
Speaker Change: Profitability.
Speaker Change: But some of those strategic initiatives.
Speaker Change: First we have heard.
Speaker Change: Hello depots of the world plenty doggie bag Colombian peso exposure.
Speaker Change: Ill give you a real clear.
Speaker Change: 9%.
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Speaker Change: Well, it's a relatively low slope.
Speaker Change: Your local gurus employee compensation.
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Speaker Change: Joseph Buzzing.
Speaker Change: Single family residential Shuckburgh.
Speaker Change: No.
Speaker Change: We have adjusted certain supply chain struggles.
Speaker Change: To do so.
Speaker Change: So it's really minimize our exposure to dollars.
Jose Manuel Daes: In April, we were pleased to complete the acquisition of certain assets of Continental Glass Systems. a premier provider of architectural glass and glazing solutions based in Florida. This strategic acquisition enhances our capabilities in several key areas. It allows us to diversify our production footprint into the United States. expands our commercial project portfolio and creates additional synergies across our operations. Continental brings approximately 30 million in analyzed revenue and a substantial project backlog. which further strengthens our market position. This investment is also aligned with our broader initiative to expand our production capabilities in the U.S. through organic and inorganic investment.
Speaker Change: In April we were pleased to go Blue blood refused to real food.
Speaker Change: Of course, the rental growth.
Speaker Change: A premier provider of her bedroom closet solutions based in Florida.
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Speaker Change: Spuds article Boswell projects booked portfolio.
Speaker Change: These are those synergies.
Speaker Change: Zero Bruce.
Speaker Change: Well the rental brings a bug separately, Doug immediately nonetheless revenue.
Speaker Change: Because the project backlog.
Speaker Change: Well each extra.
Speaker Change: Expenses are multi position.
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Speaker Change: <unk> is well aligned with our broader initiative to expand our production.
Speaker Change: Yeah.
Speaker Change: In the U S through organic and inorganic investments.
Jose Manuel Daes: Our financial position remains exceptionally strong, with record cash of $157.3 million at quarter end as a result of growth in our shorter cash cycle residential business and disciplined working capital management. A robust cash generation and resilient balance sheet continues to improve.
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Speaker Change: Two residential business.
Speaker Change: Disciplined working capital management.
Speaker Change: Oh rolls caused erosion and resilient balance sheet continues to improve.
Jose Manuel Daes: with significant flexibility to pursue additional growth opportunities while returning capital to shareholders. Looking ahead, we remain confident in Tecnoglass' growth trajectory. While macro uncertainty still remains ahead, our record first-quarter performance, our strong growth in single-family residential owners year-to-date, and our exceptional project backlog validate our optimism for 2025. While we are cognizant of the uncertainty related to tariffs, and their potential impact on overall demand trends, we continue to see strong order traction and ongoing market share growth in many U.S. regions.
Speaker Change: With the living room blocks, you really need to pursue additional growth opportunities, while returning doubly blood.
Speaker Change: Sure.
Speaker Change: Looking ahead, we remain confident in the loves growth trajectory well.
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Speaker Change: Our record first quarter performance was strong.
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Jose Manuel Daes: These factors, coupled with yet another record backlog, and our structurally competitive advantages Give us confidence in our ability to continue navigating through complex microdynamics.
Speaker Change: These factors global with zipper, though the regular bug Luke.
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Chris Daes: I will now turn the call over to Chris to provide additional operating highlights. Thank you, Jose Manuel. Moving to slide number five. Our first quarter performance further validates the resilience of our business model as we navigate through a dynamic macroeconomic environment. Our single-family residential business achieved outstanding results, with revenues increasing 21.6% year-over-year. This exceptional growth was primarily driven by our ability to capture additional market share and geographic expansion, particularly with further penetration in the Southeast U.S. and dealership growth. We continue to make progress with our expanding vinyl products offering, which are seeing a strong traction with customers.
Bruce: I will now turn the call over to Bruce to provide that Israel operating highlights.
Bruce: Thank you for someone with moving to slide number five.
Bruce: Our first quarter performance.
Bruce: Or is it validates the resilience of our business model as we navigate through a dynamic macroeconomic environment.
Bruce: Our single family residential business achieve outstanding results.
Bruce: Revenues, increasing 21.6% year over year.
Bruce: These exceptional growth was primarily driven by our ability to capture additional market share and geographic expansion, particularly with further penetration in the southeast U S and dealership rose.
Bruce: We continued to make progress with our expanding binary products offering which are seeing strong traction.
Bruce: Traction with customers are these.
Chris Daes: Additionally, we open up a new showroom in Arizona, aligning with the introduction of our legacy light aluminum line designed for top geographies like the Southwest US, giving us yet another avenue for organic growth. Our multifamily and commercial business also deliver solid performance with revenues growing 11.6% year over year to $133.4 million. We ended the quarter with a record multi-year backlog of $1.14 billion, representing approximately 2.2 times our LTM multi-family and commercial revenues at quarter end. This provides us with substantial visibility into our project pipeline well into 2026. The addition of continental glass systems to the Tecnoglass team further enhances our ability to address high-quality projects in high-end residential, luxury lodging, and Class A office space while allowing us to expand our manufacturing footprint.
Bruce: Generally we open up and you show rooming Antisana aligning with the introduction of our legacy light aluminum line designed for them top geographies like the southwest U S. Kirin us yet another avenue for organic growth.
Bruce: Our multifamily and commercial business also delivered solid performance with revenues growing.
Bruce: 7.6% year over year to $133.4 million.
Bruce: We ended the quarter with a record multiyear backlog to over 1.14 billion, representing approximately 2.2 times, our LTM multifamily and commercial revenues at quarter end.
Bruce: This provides us with substantial visibility into our broader pipeline well into 2020 six.
Bruce: The addition of Continental Josh just give us the taking of a lasting further enhances our ability to address high quality projects high end residential luxury lodging and class a office space, while allowing us to expand our manufacturing footprint.
Chris Daes: Moving to slide number six. Our backlog has demonstrated consistent sequential growth since 2021, reflecting the strong momentum in our project pipeline and robust bidding activity. Our book-to-bill ratio remained healthy at 1.2 times as of the first quarter, extending our track record of maintaining a ratio above 1.1 times for 17 consecutive quarters. Historically, approximately two-thirds of our reported backlog is in voice over the following 12 months, providing a strong visibility to 2025 and into 2026.
Bruce: Moving to slide number six our backlog has demonstrated a consistent sequential growth in 2020, one reflecting the strong momentum in our project pipeline and robust leasing activity.
Bruce: Our book to Bill ratio remain healthy at 1.2 times, although the first quarter.
Bruce: Extending our track record of maintaining a raise you are above one one times for 17th consecutive quarter.
Bruce: Historically, approximately two thirds of our reported backlog is in voice over the following 12 months, providing us strong visibility.
Bruce: <unk> 25 and into 'twenty 'twenty six.
Chris Daes: The quality of our backlog is underpinned by several key factors. First, we have virtually no project cancellations, as we typically install windows in buildings that are already well into the construction process. Second, our backlog is concentrated in projects that have demonstrated resilience to interest rate fluctuations. And third, the growing geographic diversification of our project pipeline helps to mitigate regional market risk. While external factors may cause temporary fluctuations in delivery timing or consistently a strong book-to-bill ratio reinforces our confidence in sustained revenue growth.
Bruce: The quality of our backlog is underpinned by several key factors.
Bruce: First we have virtually no project cancellations and we typically installed windows in buildings that are already well into the construction process.
Bruce: Second our backlog is concentrated and brought you used to have demonstrated resilience to interest rate fluctuations.
Bruce: I'm sorry, the growing geographic diversification of our project pipeline tends to meet the gate reunion market risk.
Bruce: While external factors may cause temporary fluctuations in delivery timing are consistently a strong book to bill ratio reinforces our confidence in sustained revenue growth.
Santiago Giraldo: I will now turn the call over to Santiago to discuss our financial results and outlook for 2025. Thank you, Christian.
Santiago: I will now turn the call over to Santiago to scores are very nice results and outlook for 2020 five.
Santiago: Thank you Christian.
Santiago Giraldo: Turning to single-family residential on slide number 7. We were pleased to produce another quarter of double-digit growth in single-family residential. Despite the tepid housing market, our successful market share gains through dealership growth, U.S. geographic expansion, and the strong reception of our vinyl product line continues to produce meaningful contributions.
Speaker Change: Turning to single family residential on slide number seven.
Santiago: We were pleased to produce another quarter of double digit growth in single family residential.
Santiago: Despite the tepid housing market, our successful market share gains through dealership growth U S geographic expansion and the strong reception of our vinyl product line continues to produce meaningful contributions.
Santiago Giraldo: Looking ahead, we remain excited about the organic growth opportunities in our single-family residential business, which are driven by several factors. First, our expanding dealer network, which continues to benefit from our industry-leading five- to six-week lead times and innovative, high-performance products. Second, our ongoing geographic expansion through showroom openings and a ramp-up of vinyl windows. with growing traction in new markets beyond our traditional strongholds in Florida and the Southeast. And third, we expect shared gains to drive the majority of growth with longer-term fundamentals supported by strong demographic trends, including population migration trends to the Southeast U.S.
Santiago: Looking ahead.
Santiago: We remain excited about the organic growth opportunities in our single family residential business, which are driven by several factors.
Santiago: First our expanding dealer network, which continues to benefit from our industry, leading five to six week lead times and innovative high performance products.
Santiago: Second our ongoing geographic expansion through showroom openings and a ramp up of vinyl windows with growing traction in new markets beyond our traditional strongholds in Florida and the southeast.
Santiago: And third we expect share gains to drive the majority of growth with longer term fundamentals supported by its strong demographic trends, including population migration trends to the southeast U S.
Santiago Giraldo: Turning to the drivers of revenue on slide number nine.
Santiago: Turning to the drivers of revenue on slide number nine.
Santiago Giraldo: Total revenues for the first quarter increased 15.4% year-over-year to a first-quarter record $222.3 million, with double-digit growth across both our single-family residential and multi-family commercial businesses as a result of robust demand for our best-in-class product offerings, coupled with our ability to continue taking market share in nearly all geographies where we operate.
Total revenues for the first quarter increased 15, 4% year over year to a first quarter record $222 3 million with double digit growth across both our single family residential and multifamily commercial businesses as a result of robust demand for our best in class.
Santiago: Coverings, coupled with our ability to continue taking market share in nearly all geographies, where we operate.
Santiago Giraldo: Looking at the Profit Drivers on slide number 10. Adjusted EBITDA for the first quarter of 2025 was $70.2 million representing an adjusted EBITDA margin of 31.6% compared to $51 million or a 26.5% margin in the prior year quarter. First quarter gross profit was $97.5 million, representing a 43.9% gross margin, compared to gross profit of $74.7 million, representing a 38.8% gross margin in the prior year quarter. The 510 basis point improvement in gross margin was primarily driven by a favorable mix of single-family residential revenues. Stronger retail pricing, operating leverage on year-over-year revenue growth. stable raw material cost, and favorable effects dynamic.
Santiago: Looking at the profit drivers on slide number 10.
Santiago: Adjusted EBITDA for the first quarter of 2025 was 70.2 million, representing an adjusted EBITDA margin of 31.6%.
Santiago: Compared to 51 million or a 26.5% margin in the prior year quarter.
Santiago: First quarter gross profit was 97.5 million, representing a 43.9% gross margin compared to gross profit of 74.7 million, representing a 38.8% gross margin in the prior year quarter.
Santiago: The 510 basis point improvement in gross margin was primarily driven by a favorable mix of single family residential revenues.
Santiago: <unk> retail pricing.
Santiago: Operating leverage on year over year revenue growth.
Santiago: Stable raw material cost and favorable FX dynamic.
Santiago Giraldo: SG&A expenses were $42.5 million or 19.1% of total revenue. compared to $33.6 million or 17.5% of total revenues in the prior year quarter.
Santiago: SG&A expenses were 42.5 million or 19.1% of total revenues.
Santiago: Compared to $33 6 million or 17.5% of total revenues in the prior year quarter.
Santiago Giraldo: The increase was primarily attributable to higher transportation and commission expenses associated with a revenue growth, increased personnel expenses related to annual salary adjustments implemented at the beginning of the year, and $4.7 million of tariff expenses.
Santiago: The increase was primarily attributable to higher transportation and commission expenses associated with our revenue growth increased personnel expenses related to annual salary adjustments implemented at the beginning of the year and 4.7 million of tariff expenses.
Santiago Giraldo: As Jose mentioned, we have already taken decisive measures to mitigate the impact of tariffs which will be in full effect starting in May and June, and do not expect a material impact on operating profit for the year.
Santiago: As Jose mentioned, we have already taken decisive measures to mitigate the impact of tariffs, which will be in full effect starting in may and June and do not expect a material impact on operating profit for the year.
Santiago Giraldo: Turning to our view of U.S. aluminum tariff dynamics on slide 11. We are actively addressing the industry-wide dynamics associated with aluminum tariffs through sourcing, pricing, and hedges on currents. We have changed some processes within our supply chains in order to mitigate the impact of tariff. This also includes the potential to diversify certain operations into the U.S. with the recently purchased manufacturing plant from Continental. We are also evaluating potential investments to develop other manufacturing assets in the U.S. over the coming years in order to be more diversified, U.S. centric, and benefit farther from logistics efficiencies and improved lead time.
Speaker Change: Turning to our view of U S aluminum terrorists dynamics on slide 11.
Speaker Change: We are actively addressing the industry wide dynamics associated with aluminum tariffs through sourcing pricing and hedges on currency.
Speaker Change: We have changed some processes within our supply chains in order to mitigate the impact of tariffs.
Speaker Change: These also include the potential to diversify certain operations into the U S with their recently purchased a manufacturing plant from continental.
Speaker Change: We are also evaluating potential investments to develop other manufacturing assets in the U S over the coming years in order to be more diversified U S centric and benefit part of their from logistics efficiencies and improved lead times.
Santiago Giraldo: To that extent, and based on our expected U.S.
Speaker Change: To that extent and based on our expected U S. Organic geographical expansion. We are currently in the early stages of evaluating a multiyear project to develop a fully automated and vertically integrated operation in the U S to complement our existing manufacturing platform in Colombia.
Santiago Giraldo: organic geographical expansion, we are currently in the early stages of evaluating a multi-year project to develop a fully automated and vertically integrated operation in the U.S. to complement our existing manufacturing platform in Colombia. In addition to diversifying our manufacturing footprint, the project would allow us to gain logistical and lead time efficiencies in many new target markets. In addition to shifting certain supply chain channels, we have also implemented pricing adjustments effective as of May 1st to offset incremental costs. While we anticipate some temporary short-term margin pressure until these higher price orders are invoiced, we anticipate that the full calendar year 2025 tariff impact of approximately $25 million will be largely mitigated, assuming similar volumes to what we originally projected for the year.
Speaker Change: In addition to diversifying our manufacturing footprint the project would allow us to gain logistical and lead time efficiencies in many new target Mark.
Speaker Change: In addition to shifting certain supply chain channels. We have also implemented pricing adjustments effective as of may 1st to offset incremental cost.
Speaker Change: While we anticipate some temporary short term margin pressure until these higher price orders our invoice, we anticipate that the full calendar year 2000, and twenty-five tariff impact of approximately 25 million will be largely mitigated assuming similar volumes to what we originally projected for the year.
Santiago Giraldo: This means that for the balance of the year, we expect our strategic actions to more than offset the impact of tariffs. Additionally, we were able to opportunistically hedge a large portion of our Colombian peso exposure above 4,400 pesos per dollar, providing an additional tailwind to further offset the projected 2025 tariff impact.
Speaker Change: These means that for the balance of the year, we expect our strategic actions to more than offset the impact of tariffs.
Speaker Change: Additionally, we were able to opportunistically hedge a large portion of our Colombian peso exposure above 4400 pesos per dollar providing an additional tailwind to further offset the projected 2000 and twenty-five tariff impact.
Santiago Giraldo: Now, examining our strong cash flow and balance sheet on slide 12. We generated operating cash flow of $51.2 million in the first quarter, reflecting solid profitability, effective working capital management, and higher mix of single-family residential revenues, which feature up-front payments and shorter sales cycles without retaining. This resulted in record quarterly free cash flow of $28.8 million. Capital expenditures were $22.4 million, which included mostly scheduled payments on previous investments.
Now examining our strong cash flow and balance sheet on slide 12.
Speaker Change: We generated operating cash flow of $51 2 million in the first quarter, reflecting solid profitability effective working capital management and higher mix of single family residential revenues, which feature upfront payments and shorter sales cycles without retaining.
Speaker Change: This resulted in record quarterly free cash flow of 28.8 million.
Speaker Change: Capital expenditures were 22.4 million, which included mostly scheduled payments on previous investments.
Santiago Giraldo: As with previous years, our cash flow is seasonal, and we expect cash flow from operations to decrease sequentially in the second quarter of the year to account for the annual timing of income tax payments and a higher use of cash to address working capital needs due to expected sequential quarterly growth.
Speaker Change: As with previous years, our cash flow is seasonal and we expect cash flow from operations to decrease sequentially in the second quarter of the year to account for the annual timing of income tax payments and a higher use of cash.
Speaker Change: Whereas working capital needs due to expected sequential quarterly growth.
Santiago Giraldo: As Anup said, we expect capital expenditures to drop significantly throughout 2025, driving strong free cash flow through year-end. Our balance sheet remains exceptionally strong, with a record cash position of $157.3 million as of March 31, 2025, resulting in a new record net cash position. This represents a significant increase from our cash position at the end of 2024 and underscores our ability to generate substantial free cash. At quarter end, we have total liquidity of approximately $330 million, including $170 million of availability under a revolving credit facility. This strong liquidity position, combined with a robust cash flow generation, provides us with ample financial flexibility to pursue our growth initiatives, invest in operational enhancements, and maintain our commitment to shareholder return.
Speaker Change: As an offset we expect capital expenditures to drop significantly throughout 2000, and twenty-five driving strong free cash flow through year end.
Speaker Change: Our balance sheet remains exceptionally strong with a record cash position of $157 3 million as of March 31, 2025, resulting in a new record net cash position.
Speaker Change: These represents a significant increase from our cash position at the end of 2024 and underscores our ability to generate substantial free cash flow.
Speaker Change: At quarter end, we had total liquidity of approximately 330 million, including $170 million of availability under our revolving credit facilities.
Speaker Change: This strong liquidity position combined with our robust cash flow generation provides us with ample financial flexibility to pursue our growth initiatives invest in operational enhancements and maintain our commitment to shareholder returns.
Santiago Giraldo: On slide 13, we highlight our ability to generate returns significantly above the broader industry. Over the past three years, our strategic investments and operational initiatives have consistently yielded superior returns for our shareholders.
Speaker Change: On slide 13, we highlight our ability to generate returns significantly above the broader industry.
Speaker Change: For the past three years, our strategic investments and operational initiatives have consistently yielded superior returns for our shareholders.
Santiago Giraldo: This outperformance reflects the strength of our business model, our unwavering focus on operational excellence, and our disciplined approach to capital allocation.
Speaker Change: This outperformance reflects the strength of our business model, our unwavering focus on operational excellence and our disciplined approach to capital allocation.
Santiago Giraldo: Now, moving to our outlook on slide 15. Based on our performance through the first quarter of 2025 and now incorporating our acquisition of Continental, we are raising the low end of our previously provided full year 2025 outlook for revenue. which we now expect to be in the range of 960 million to 1.02 billion, representing growth of approximately 11% at the midpoint of the range. Additionally, we are updating our Adjusted EBITDA Outlook to a range of $305 million to $330 million. The high-end of our outlook assumes favorable moves in interest rates benefiting mortgage rates, high single-digit growth in our legacy residential revenues, and vinyl revenues reaching approximately $25 million.
Speaker Change: Now moving to our outlook on slide 15.
Speaker Change: Based on our performance through the first quarter of 2025, and now incorporating our acquisition of Continental we are raising the low end of our previously provided full year 2025 outlook for revenues.
Speaker Change: Which we now expect to be in the range of 960 million to 1.02 billion representing growth of approximately 11% at the midpoint of the range at.
Speaker Change: Additionally, we are updating our adjusted EBITDA outlook to a range of 305 million to $330 million.
Speaker Change: The high end of our outlook assumes favorable moves in interest rates benefiting mortgage rates high single digit growth in our legacy residential revenues and vinyl revenues, reaching approximately 25 million.
Santiago Giraldo: The high-end also assumes improved activity in short-term commercial projects. and gross margins in the mid to high 40 percentage range. Supported by favorable foreign exchange rates with the Colombian peso at or above $4,200.
Speaker Change: The high end also assumes improved activity in short term commercial projects.
Speaker Change: And gross margins in the mid to high 40 percentage range.
Speaker Change: Supported by favorable foreign exchange rates with the Colombian peso at or above 4200.
Santiago Giraldo: The low end of our range reflects a more conservative approach to volume growth beyond Q2 or residential invoicing while also accounting for the potential headwinds from broader implementation of aluminum tariffs impacting construction spending, higher interest rates, and a stronger Colombian peso. Under this low-end scenario, we assume more modest growth in legacy residential revenues, final revenues of approximately $10 to $15 million, and gross margins at the low 40% range. The guidance midpoint implies modest adjusted EBITDA margin improvement year-over-year based on various factors. Favorable drivers include higher revenue, our pricing adjustments starting with order placed from May 1st forward, which translating to revenue starting in the mid to end of June, effect hedges, and operational leverage.
Speaker Change: The low end of our range reflects a more conservative approach to volume growth beyond Q2 for residential invoicing, while also accounting for the potential headwinds from broader implementation of aluminum tariffs impacting construction spending higher interest rates and a stronger Colombian peso.
Speaker Change: Under these low end scenario, we assume more modest growth in legacy residential revenues.
Speaker Change: Vinyl revenues of approximately $10 million to $15 million in gross margins at the low 40% range.
Speaker Change: The guidance midpoint implies modest adjusted EBITDA margin improvement year over year based on various factors.
Speaker Change: Favorable drivers included higher revenue or pricing adjustments, starting with order place from may 1st forward, which translate into revenue.
Speaker Change: Martin in the meat to end of June.
Speaker Change: FX hedges and operational leverage.
Santiago Giraldo: We anticipate these positive actions to more than offset increased installation mix tied to high-end condo activity in Florida, the 9% salary increases in Columbia, and tariff impact. Continental Glass System is expected to contribute roughly break-even adjusted EBITDA this year as we integrate the equipment. We are now projecting capital expenditures to be in the range of $45 to $55 million, which includes the tail end of previous investments, maintenance capex, and further investments in efficiency initiatives. as well as our new Miami flagship showroom and executive office. Working capital should continue to be a source of cash as we expand our single-family residential revenues, so this will be partially offset by longer cash conversion cycles in our commercial and multifamily business.
Speaker Change: We anticipate these positive actions to more than offset increasing installation mix tied to high end condo activity in Florida, the 9% salary increases in Colombia and.
Speaker Change: And tariff impacts.
Speaker Change: Continental glass system is expected to contribute roughly breakeven adjusted EBITDA. This year as we integrate the acquisition.
We are now projecting capital expenditures to be in the range of $45 million to $55 million, which includes the tail end of previous investments maintenance Capex and further investments in efficiency initiatives as well as our new Miami flagship showroom.
Speaker Change: An executive offices.
Speaker Change: Working capital should continue to be a source of cash as we expand our single family residential revenues.
Speaker Change: These will be partially offset by longer cash conversion cycles in our commercial and multifamily business.
Santiago Giraldo: In conclusion, our first quarter 2025 performance demonstrate our exceptional market position and operational excellence as we continue to outpace broader industry trends. Years of investments in vertically integrated operations, our industry-leading margins, and robust backlog all contribute to creating a defensible position for Tecnoglass in the architectural glass industry. We enter the remainder of 2025 with tremendous momentum across our business. The strategic acquisition of certain assets of continental glass systems further strengthens our competitive advantages and diversifies our manufacturing footprint. Our strategic execution, operational efficiencies, and effective management of dynamic elements, such as tariffs, position us to continue delivering above-market growth and returns for our shareholders.
Speaker Change: In conclusion, our first quarter 2000, and twenty-five performance demonstrate our exceptional market position and operational excellence as we continue to outpace broader industry trends.
Speaker Change: Years of investments in very cleaning rated operations, our industry, leading margins and robust backlog all contribute to creating a defensible position for techno glass in the architectural glass industry. We.
Speaker Change: We entered the remainder of 2000 and twenty-five with tremendous momentum across our business.
Speaker Change: The strategic acquisition of certain assets of Continental glass systems for their extra intense our competitive advantages and diversifies our manufacturing footprint.
Speaker Change: Strategic execution operational efficiencies and effective management of dynamic elements, such as tariffs position us to continue delivering above market growth and returns for our shareholders.
Santiago Giraldo: We remain confident in our ability to extend our track record of exceptional performance through 2025 and beyond.
Speaker Change: We remain confident in our ability to extend our track record of exceptional performance through 2025 and beyond.
Santiago Giraldo: With that, we will be happy to answer your questions.
Speaker Change: With that we will be happy to answer your questions. Operator, Please open the line for questions.
Operator: Operator, please open the line for questions. We will now begin the question and answer session.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Operator: To ask a question, you may press star then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw it, please press star then 2.
Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw. It. Please press Star then two at this time, we will pause momentarily to assemble our roster.
Operator: At this time, we will pause momentarily to assemble our roster.
Tim Woj: Our first question today comes from Tim Woj of Baird.
Speaker Change: Our first question today comes from Tim <unk> of Baird. Please go ahead.
Christian Daes: Please go ahead. As you look at the architectural glass industry in the US, Is it possible to kind of understand how much of the industry is imported to the US from from places like China and Europe? and I'm just trying to understand if that kind of expands your opportunities potentially on kind of the west and the east coast, you know, particularly in the commercial business.
Speaker Change: Hey, guys good.
Speaker Change: Good morning, nice job.
Speaker Change: Maybe just first question is kind of kind of higher level.
Speaker Change: As you look at the architectural glass industry in the U S is.
Speaker Change: Is it possible to kind of understand.
Speaker Change: How much of the industry is imported to the U S from from places like China and Europe.
Speaker Change: And I'm, just trying to understand if that kind of expand your opportunities potentially on kind of the west and the east coast.
Speaker Change: Particularly in the commercial business.
Christian Daes: We don't, this is Christian, hi, good morning. We don't have the number, but. All our raw materials are from the U.S., so... And we don't sell that much in architectural glass as we sell in windows. Our sales on the glass side is very small anyway. But we are concentrating on the window.
Speaker Change: We don't this is getting hi, good morning, we don't have the number.
Speaker Change: Uh huh.
Speaker Change: All our raw materials from the U S. So.
Speaker Change: I've got an advantage to everybody else.
Speaker Change: On and.
Speaker Change: And we don't sell them more genes architectural glass, absolutely selling windows, so longer celgene on the glass side is very small anyways.
Speaker Change: We are concentrating on the window itself.
Christian Daes: As a follow-up, Tim, if you recall last quarter call... We talk about how the U.S. supplies roughly 45% of... So to that extent, even U.S. manufacturers are importing a vast portion of their raw material. So we're definitely seeing this as an opportunity going forward. Okay. I mean, I guess when I said architectural glass, I guess I meant like curtain walls and windows, too. But I mean, like, as you're thinking about big cities on the East Coast and the West Coast, I mean, is a lot of your competition in those areas imports today? Not today. I think that we would be one of the most important importers.
Speaker Change: Just as a follow up team, if you'll recall last quarter call.
Speaker Change: We talk about how the U S supplies, roughly 45% of its internal aluminum needs. So to that extent, even U S. Manufacturers are importing best portion of their raw material. So we're we're definitely seeing this as an opportunity going forward.
Speaker Change: Okay, I mean, I guess, when I said architectural glass I guess I'd like curtain walls, and windows too, but I mean like as you're thinking about big cities on the East coast and the West Coast I mean, it's a lot of your competition in those areas and ports today.
Speaker Change: Not today.
Speaker Change: I mean I think.
Speaker Change: It would be one of the most important importance of.
Speaker Change: Windows I believe.
Christian Daes: and our competition is mostly local.
Speaker Change: On our call.
Speaker Change: Competition is mostly local.
Jose Manuel Daes: Hi, this is Jose. A lot of people in the content world business import information. They are subject to the aluminum tariff like everybody. Okay, okay.
Speaker Change: Uh huh.
Speaker Change: We have.
Speaker Change: A lot of people.
Speaker Change: <unk>.
Speaker Change: Portland for China.
Speaker Change: Oh no.
Speaker Change: Mexico.
Speaker Change: The aluminum and the glass.
Speaker Change: Cool.
Speaker Change: What I believe.
Speaker Change: But they are subject to the aluminum.
Speaker Change: And to everybody else.
Speaker Change: Okay, Okay and.
Tim Woj: And I guess on the residential growth, I mean, any color on kind of You know, when you look at that, you know, 22% growth, how much of that was kind of your legacy Florida business and maybe how much of that was kind of outside of Florida. And then it looks like the vinyl expectation on the high end of the guide came down. Any reason for that?
Speaker Change: And I guess on the residential growth I mean any color on kind of.
Speaker Change: You know when you look at that 22% growth how much of that was tied to your legacy, Florida business and maybe how much of that was kind of outside of Florida than it.
Speaker Change: It looks like the vinyl expectation on the on the high end of the guide came down at any any reason for that.
Santiago Giraldo: I'll take the first one, Tim. If you look at the legacy business, we did roughly $73 million in the first quarter of last year. So we probably grew there $25. I'm sorry, about 15% and then the rest came from other places which are starting to pick up. We see on a percentage basis that's much higher on a lower base. But those places are starting to contribute more meaningfully than the legacy Florida business, which we're expecting to grow for the full year between mid to high single.
Speaker Change: I'll take I'll take the first one Tim if you look at the legacy business, we did roughly 73 million in the first quarter of last year.
Speaker Change: Right, so that we probably grew.
Speaker Change: About 25.
Speaker Change: I'm, sorry about 15% and then the rest came from other places which are starting to pick up.
Speaker Change: But what we see on a percentage basis, that's much higher on a lower base, but those places are starting to contribute more meaningfully than the legacy, Florida business, which we're expecting to grow for the full year between mid to high single digits.
Jose Manuel Daes: And I'll let Jose take the vinyl.
Speaker Change: And I'll, let Jose take the final question.
Jose Manuel Daes: I know it has been a challenge because We got into the business that we didn't know. As usual, we start slow. We're learning and we don't have a complete line. We're developing the last.
Jose Manuel: Well no.
Jose Manuel: A challenge because.
Jose Manuel: We've dug into the business.
Jose Manuel: No.
Jose Manuel: As usual we start slow.
Jose Manuel: Alerting we don't have a complete line were developed.
Jose Manuel Daes: See you at Ford Products! By the end of the year, we're going to be ready. I think that line is going to catapult next year. This year we keep growing month by month.
Jose Manuel: Three or four products.
Jose Manuel: <unk> be end of the year, we're going to be ready.
Speaker Change: Please go ahead.
Jose Manuel: Cool.
Jose Manuel: Yourself.
Jose Manuel: We keep growing both by bodes well, obviously the rate that we expected.
Tim Woj: Obviously not at the rate that we expected because, as I said, Okay, and then the last thing just on continental, I guess.
Jose Manuel: So we didn't know the business well.
Jose Manuel: Okay.
Jose Manuel: And then the last thing just on Continental I guess.
Santiago Giraldo: What does it, what does it, I mean, what is it bringing you that you didn't have before? I guess how are you going to kind of leverage the US manufacturing with Colombia?
Jose Manuel: What does it what does it mean, what does it bring you that you didn't have before I guess, how are you going to kind of leverage the U S manufacturing with Colombia, and then you said breakeven EBITDA margins. This year Santiago like what what would be a longer term target for the margins of that of that asset acquisition.
Santiago Giraldo: And then you said break even EBITDA margins this year, Santiago, like what would be a longer term target for the margins of that of that asset equity? Well, let me explain. Number one, we didn't have any manufacturing facility in the U.S. Continental we have a capability of doing and we plan to start. Developing the Manufacturing in the U.S. We will bring the aluminum and the glass and assemble it here. And Continental brings a couple of things that we didn't have before. which are, number one, the replace and remodel in the... getting very big in Florida.
Jose Manuel: Well, let me explain number one where do they have any manufacturing facility in the U S with colds in adults.
Jose Manuel: But really doing.
Jose Manuel: Oh.
Jose Manuel: Amongst others.
Jose Manuel: Factory.
Jose Manuel: We plan to start.
Jose Manuel: Developing the motor factory in the U S.
Jose Manuel: We will bring the illumina will be garage.
Jose Manuel: Below here.
Jose Manuel: Julie.
Jose Manuel: We're going to do.
Jose Manuel: Ooh called Blue.
Jose Manuel: We did that.
Jose Manuel: Five to seven years.
Jose Manuel: Continental brings a couple of things.
Jose Manuel: Before.
Jose Manuel:
Jose Manuel: Mobile web.
Jose Manuel: Replacement remodel.
Jose Manuel: The code the reviews.
Jose Manuel: Very big Florida.
Santiago Giraldo: of the New Law, instead of 40 years, it's 20 years now I believe. So every condominium has to upgrade. And the insurances are making them change all the windows. They have a good remodel and replacement. That's what we plan to do with them all. And on the second part, Tim, the go-forward expectation is that that integrates into the overall EBITDA margin profile for the group. As you read on the press release, we're expecting to get synergies from this, as we're expecting to manufacture more out of Colombia to supply them. So even if our inception is going to be a lower EBITDA margin because of SG&A, as we grow that operation, we're expecting that to, you know, align with overall margins for the group.
Jose Manuel: We'll go so dull hurdle for 20 years now I believe.
Jose Manuel: So every good debate has to upgrade.
Jose Manuel: That would be true.
Jose Manuel:
Jose Manuel: Joel the windows.
Jose Manuel: Have a good remodel and replace market.
Jose Manuel: That's what we plan to do with Wearables.
Jose Manuel: And on the on the second part team. Their go forward expectation is that that integration today, you know overall EBITDA margin profile for the group.
Jose Manuel: As you read on the on the press release, we're expecting to get synergies from these is we're expecting to manufacture more out of Colombia to supply them. So even even if our inception is gonna be a lower EBITDA margin because of SG&A as we grow that operation, we're expecting that to.
Jose Manuel: You know our line with overall margins for the group.
Tim Woj: Okay. Sounds good.
Jose Manuel: Okay.
Operator: Thank you guys for the time and good luck. All right. Thank you.
Speaker Change: Sounds good. Thank you guys for the time and good luck.
Jose Manuel: Thanks.
Julio Romero: Our next question comes from Julio Romero of Sidoti & Co. Please go ahead.
Speaker Change: Our next question comes from Julio Romero of Sidoti <unk> Company. Please go ahead.
Julio Romero: Hey, good morning, Jose Manuel, Christian, and Santiago, and congratulations on the acquisition. Good morning. Hey, so... You know, the last deal you guys did was for GM&P, the glazer in Florida, in 2017. And that was done for a very specific reason. It was a mousetrap of sorts to accelerate U.S. market penetration in the U.S.
Christian: Hey, good morning, gentlemen, weighted Christian in Santiago and congratulations on the acquisition.
Speaker Change: Good morning.
Speaker Change: Okay. So.
Speaker Change: The last deal you guys did was for G. M N P. The glazer in Florida in 2017 and that was done for a very specific reason it was a mousetrap of sorts to accelerate U S market penetration in the U S can you maybe compare.
Jose Manuel Daes: Can you maybe compare that deal, which didn't have manufacturing, to this one? https://www.youtube.com.uk Well, this one, like I said... mostly is the replacement model of condominiums and also A very, very good acquisition for a very low price.
Speaker Change: That deal, which didnt have manufacturing to this one.
Speaker Change: Kind of compare the thought process because the end and also talk about the trade off between.
Speaker Change: Theres dilution to your return metrics with acquired growth.
Speaker Change: You know that the tradeoff is a longer term strategic benefits.
Speaker Change: Oh, there's one.
Speaker Change: I was here before.
Speaker Change: Mostly use the real pleasure removal of condominiums and also.
Speaker Change:
Speaker Change: Uh huh.
Speaker Change: Yeah.
Speaker Change: Sure.
Speaker Change: We need to start.
Speaker Change: Working here in the U S.
Speaker Change:
Speaker Change: There's a very very good acquisition for us.
Speaker Change: And then as a follow up in line with the last answer you were not expecting these to be dilutive I mean, we're expecting to get synergies and operating leverage based on the higher output of manufacturing in Colombia to supply a continental so at the end you know where we're seeing these.
Santiago Giraldo: And as a follow-up, in line with the last answer, Julio, we're not expecting. to be diluted. I mean, we're expecting... to get synergies and operating leverage based on a higher output of manufacturing in Colombia to supply... So at the end, you know, we're seeing this as an asset that will be integrated to the group. not impact margins in any way.
Speaker Change: I saw an asset that will be integrated to the group and in <unk>.
Speaker Change: Not impact margins in any way.
Julio Romero: Okay, that's helpful and You know, you talked about evaluating a multi year project to build a plan in the U.S.
Speaker Change: Okay, that's helpful and.
Speaker Change: You know you talked about evaluating a multi year project to build a plant in the U S. Can you maybe dive into that a bit and you know how big of a facility or are you considering and what are the key factors you're weighing in considering that growth initiatives.
Jose Manuel Daes: Can you maybe dive into that a bit? And, you know, how big of a facility are you considering? And, you know, what are the key factors you're weighing in considering that growth? We're going to start by the beginning, which is establish a foundry here where we can produce our billets. The second phase would involve, obviously this is going to be done in five to seven years. The second phase will involve establishing an extrusion facility, a glass facility, everything state-of-the-art with the technology that we now have. In the U.S., we plan to, we are, you know, we are looking into different options.
Speaker Change: We're going to start by the beginning would you say establish a foundry here.
Speaker Change: We can produce our billets.
Speaker Change: The second phase, we will do both.
Speaker Change: Obviously this is going to be done in five to seven years.
Speaker Change: Second phase will involve.
Speaker Change: Establishing a extrusion facility.
Speaker Change: Glass facility everything.
Speaker Change: State of the art with a technology that we now have.
Speaker Change: No.
Speaker Change: To be the most efficient.
Speaker Change: Window plant.
Speaker Change:
Speaker Change: The U S. We plan to where we.
Speaker Change: We are looking into different options.
Speaker Change:
Speaker Change: Ted or buying people.
Speaker Change: And Doyle.
Speaker Change: 110 times of EBITDA, we're planning on spending the money wisely on building a good facility in the future in the near future.
Jose Manuel Daes: Building a good facility in the future, in the near future.
Speaker Change: Okay.
Speaker Change: Sounds good.
Santiago Giraldo: As a follow-up, Julio, obviously this is undergoing a feasibility analysis and from our return on invested capital, as Christian was mentioning, These will bring much higher yields than doing straight up M&A. Obviously, you have to evaluate this over a longer time period, and it's subject to, you know, free cash flow and whatnot. But that's the intention. Very good. Congrats again. Thanks. As a reminder, if you have a question, please press star then 1.
Speaker Change: Go ahead.
Speaker Change: As a follow up call deal. Obviously these this is undergoing a feasibility analyses and from a return on invested capital. That's Christian was mentioning these will bring much higher yields than that doing straight up M&A. Obviously, you have to evaluate these over a longer time period, and you're subject to you know free cash flow.
Speaker Change: And whatnot, but that's the intention.
Speaker Change: Yeah.
Speaker Change: Very good congrats again thanks.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you have a question. Please press Star then one hour.
Brent Thielman: Our next question comes from Brent Thielman of D.A. Davidson. Please go ahead. Hey, thanks. Good morning. Congratulations as well.
Speaker Change: Our next question comes from Brent Thielman of D. A Davidson. Please go ahead.
Brent Thielman: Hey, Thanks, good morning, congratulations as well.
Santiago Giraldo: I had another question just on the thought process of developing the line in the U.S. over the next Transcripts provided by Transcription Outsourcing, LLC. I would be complimentary. We would start by the foundry. We're going to produce enough billets. I mean, we are thinking. getting 100% of our bills from our plant in the U.S. in the near future.
Speaker Change: I had another question just on the <unk>.
Speaker Change: The thought process of developing the line in the U S over the next kind of five.
Speaker Change: Five to seven years and it may be early but I'll ask anyway are you envisioning.
Speaker Change: Something as large as what you have in place today or is the vision that this is something simply complementary to what you're already doing in Colombia.
Speaker Change: It would be complement our we will start by the foundry, we're going to produce at all.
Speaker Change: I mean, we are I think.
Speaker Change: Getting the 100% of our bids from our plant in the U S. In the near future then we're gonna add.
Santiago Giraldo: Then we're going to, you know, establish one or two press conferences. It's all going to help us in the growth and also in the ability. to deliver within 24 hours when we have an emergency, a broken piece of glass, or a replacement, or anything of that nature, and we, you know, I like to... I hope that we can build a factory that in the future could be 30 to 40 percent of our invoicing in five years, but not of what we do today, but the increased growth. Really helpful, and I appreciate that. Yep.
Speaker Change: Establish one or two precious extrusion presses.
Speaker Change: We wanted to do a glass sorting system.
Speaker Change: Deanna do they are window are planned and it's all going to help us in the growth and also in the eye.
Speaker Change: Ability to deliver within 24 hours, when we have an emergency or a broken piece of glass replacement or anything of that nature, and we you know I like to play.
Speaker Change: Clean B.
Speaker Change: And I hope that we can build a factory that in the future could be 30% to 40% of our invoicing and indeed in five years, but not of what we do today, but the increased gross.
Speaker Change: Really helpful. I appreciate that yeah.
Santiago Giraldo: Now, I was just going to follow up and in terms of obviously financial metrics is way too early. But keep in mind that we're thinking about something that is highly automated, so not a detriment to margin. Very good. Appreciate that.
Speaker Change: No I was just going to follow up and in terms of obviously financial matrix is way too early but keep in mind that we're thinking about something that is highly automated so not not a detriment to do margins in and brings more logistical and lead time advantages.
Speaker Change: Yeah.
Speaker Change: I appreciate that.
Santiago Giraldo: And then, I mean, look, the backlog continues to look. Great.
And then looked at the backlog continues to look.
Santiago Giraldo: Could you talk about I mean, a lot's happened since the end of the quarter. Could you talk about order trends and commercial since then? The tone of customers, are they more hesitant or is it just business as usual? Business is booming, I mean for us. We are selling... Closing, a lot of deals. Texas, USA, Texas, and also the West Coast. We have a good foothold now in Hawaii. We're getting a lot of requests from California. We're opening offices there. The amount of backlog is going to keep growing. And Brent, I don't know if you were just asking about commercial.
Speaker Change: Great.
Speaker Change: Could you talk about.
Speaker Change: I mean, a lot has happened since the end of the quarter could you talk about order trends in commercial.
Speaker Change: Since then or the tone of customers at a more hesitant or is it just business as usual.
Speaker Change: Okay.
Bobby: This is Bobby I mean for us.
Speaker Change: We are selling.
Speaker Change: Closing a loan.
Speaker Change: Deals in Florida outside of Florida.
Speaker Change: The East coast.
Speaker Change:
Speaker Change: So.
Speaker Change: Thanks.
Speaker Change: There's also the west coast.
Speaker Change: We have a good foothold though in Hawaii.
Speaker Change: Hello request.
Speaker Change: Before we begin.
Speaker Change: We're opening new offices there too.
Speaker Change:
Speaker Change: The mode of Bud log there is going to keep growing.
Speaker Change: Blue.
Speaker Change: That's what we see.
Brent Thielman: And Brent I don't know if you were just asking about commercial.
Santiago Giraldo: but residential orders are up. Yeah, I appreciate that, Santiago.
Speaker Change: But residential orders are up.
Speaker Change: 17% year over year, so we're expecting that trend to continue through Q2 and potentially starting in Q3.
Speaker Change: Yes, yes.
Santiago Giraldo: Yeah, I was talking commercial. Maybe just one more on the commercial side as well. Is the backlog and are the incoming orders becoming? more diversified from a geographic perspective relative to a year or two ago. I know Florida has been phenomenal for you in the last few years, but you talked about a lot of different regions. here. Is there more geographic diversity to the things you're seeing coming in in orders? Both. We're growing in Florida and we're growing outside. For example, we didn't have anything in Tampa. And now, Tampa, we have a few words in Tampa.
Speaker Change: That sante area, Yes, I was talking commercial maybe just one more on the commercial side as well.
Speaker Change: Is that are the is the backlog in our the incoming orders becoming.
Speaker Change: More diversified from a geographic perspective relative to a year or two ago I know, Florida has been phenomenal for you in the last few years, but you talked about a lot of different regions.
Speaker Change: Sure.
Speaker Change: It's been more geographic diversity to the the things Youre seeing coming in in orders now.
Speaker Change: Both both.
Speaker Change: We're growing in Florida, we're doing Belgium for example.
Bob: Thank you Bob.
Speaker Change: <unk> per BOE, we have.
Speaker Change: New awards.
Sure.
Santiago Giraldo: More than 10. And Palm Beach, we didn't have much in Palm Beach. Now Palm Beach is booming and we're getting a lot of work.
Speaker Change: More broadly.
Speaker Change: So bill.
Speaker Change: HUD, though.
Speaker Change: The Palm Beach.
Speaker Change: Module Beach, Melba beaches, bullring, and we're getting a lot of awards.
Santiago Giraldo: But also outside of Florida. We're getting lots of work in. in Washington, in New York, in Boston... Maryland. I mean, we're growing even in the Carolinas. We have two or three jobs down in Carolina that we never had anything. And now even Nashville, which is booming. We're getting, we're getting close. closing a few deals in Nashville. Okay, great, thank you.
Speaker Change: <unk> also outside of Florida.
Speaker Change: We're doing lots of awards.
Speaker Change: Washington, Totally New York Boston.
Speaker Change: Very little.
Speaker Change: We're growing.
Speaker Change: The total lineup.
Speaker Change: We have tools will jumpstart.
Speaker Change: But we never heard anything.
Speaker Change: No even Nashville.
Speaker Change: Is booming.
Speaker Change: Debbie.
Speaker Change: We closed two.
Speaker Change: Closer to a few deals.
Speaker Change: You too.
Speaker Change: Okay.
Speaker Change: Okay, great. Thank you.
Operator: This concludes our question and answer session.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Mr. Jose Manuel dance for any closing remarks.
Jose Manuel Daes: I would like to turn the conference back over to Mr. Jose Manuel Daes for any closing remarks. Well, thanks everyone for participating on today's call. We are very enthusiastic about what we're doing. and our foothold is going to grow west. Thanks again everyone.
Speaker Change: Sure.
Speaker Change: Third February Whirlpool bogie Burger on todays call.
We are very enthusiastic about what we're doing.
Speaker Change: I believe the company is going to keep growing in the next three years at least.
Speaker Change: And Oh foods holds for the grille was awful.
Speaker Change: Florida.
Speaker Change: Uh huh.
Speaker Change: Yes.
Operator: The conference is now concluded. Thank you for attending today's presentation.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Operator: You may now disconnect.
Speaker Change: Oh.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.