Q3 2025 Tecnoglass Inc Earnings Call
Speaker #4: Good morning and welcome to the Tecnoglass Inc. . Third quarter 2025 conference Call . All participants will be in listen only mode . Should you need assistance , please signal an operator by pressing the star key , followed by zero .
Speaker #4: After today's presentation , there will be an opportunity to ask questions . To ask a question , you may press star and then one on your telephone keypad .
Speaker #4: To withdraw your question , please press star . Then two . Please note that this event is being recorded . I would now like to turn the conference over to Brad Cray Investor Relations .
Speaker #4: Please go ahead .
Speaker #5: Thank you for joining us for Tecnoglass Inc. third quarter 2025 conference call . A copy of the slide presentation to accompany this call may be obtained on the investors section of the Tecnoglass Inc. website .
Speaker #5: Our speakers for today's call are Chief Executive Officer Jose Manuel Dias , chief operating Officer Chris Dias and chief financial officer Santiago Giraldo .
Speaker #5: I'd like to remind everyone that matters discussed in this call , except for historical information , are forward looking statements within the meaning of the private securities Litigation Reform Act of 1995 , including statements regarding future financial performance , future growth and future acquisitions .
Speaker #5: These statements are based on Tecnoglass Inc. 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 .
Speaker #5: Due to changes in economic , business , competitive and or regulatory factors , and other risks and uncertainties affecting the operation of Tecnoglass Inc. business .
Speaker #5: These risks , uncertainties and contingencies are indicated from time to time in Tecnoglass Inc. filings with the SEC . The information discussed during the call is presented in light of such risks .
Speaker #5: Further , investors should keep in mind that Tecnoglass Inc. financial results and any particular period may not be indicative of future results . Tecnoglass Inc. 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 .
Speaker #5: I will now turn the call over to Jose Manuel beginning on slide number four .
Speaker #6: Thank you Brad , and thank you everyone for participating on today's call . We are pleased to report another exceptional quarter that demonstrates the strength and resilience of our business model .
Speaker #6: Even under challenging macroeconomic conditions . Our third quarter total revenues reached a record 260.5 million , up 9.3% year over year , driven by strong organic growth from both our single family residential and multi-family commercial businesses .
Speaker #6: A robust results in the face of market uncertainty and ongoing inflationary pressure showcases our team's dedication to excellence and our ability to consistently outperform market trends .
Speaker #6: In our single family residential business . We grew revenue 3.4% year over year to a record 113.5 million . This performance reflects the early benefits from our pricing initiatives implemented earlier this year .
Speaker #6: Continued market share gains through geographic and dealership expansion, along with contributions from our growing vinyl product portfolio. Our multi-family and commercial business delivered impressive growth of 14.3% year over year to a record $147 million.
Speaker #6: The improvement reflects both market share gains in key markets and solid execution on our expanding project pipeline . The industry outperformance was seen in our commercial activity has resulted in a record backlog of 1.3 billion , up over 20% year over year .
Speaker #6: We maintain a strong profitability with a gross margin of 42.7% and an adjusted EBITDA margin of 30.4% . Our vertically integrated platform and previously implemented strategic pricing actions , are helping to mitigate various cost pressures , positioning us well as we move into 2026 .
Speaker #6: This margin resilience , combined with our disciplined working capital management , drove robust cash flow from operations . This cash generation enabled us to return significant capital to shareholders while maintaining a strategic flexibility .
Speaker #6: To that end , we were pleased to report your 30 million in shares and pay 7 million in dividends during the quarter . Our most authorization to expand our share repurchase program to 150 million reinforces the confidence in the business and our commitment to balance capital allocation .
Speaker #6: Our third quarter results demonstrate the power of our integrated business model and our ability to execute in a dynamic environment with our strong balance sheet record backlog , providing multi-year visibility and multiple growth initiatives advancing , we remain confident as ever , in our ability to continue delivering exceptional shareholder value .
Speaker #6: For years to come . I will now turn the call over to Christian .
Speaker #7: Thank you . Jose Manuel . Moving to slide number five and six . Our third quarter performance reflects the successful execution of our growth strategy across both businesses .
Speaker #7: With a stable order activity and continued market share gains across our key regions . Our multifamily and commercial business delivered record revenue driven by robust activity within the key markets .
Speaker #7: We ended the quarter with another record backlog of 1.3 billion , up substantially over 20% year over year . This expanding pipeline provides a strong visibility through 2026 and 2027 , with additional market share gains , opportunities across our core geographies and project execution .
Speaker #7: On track . Our backlog has seen consistent sequential growth since 2021 , reflecting sustainability of our structural competitive advantages even under challenging macroeconomic conditions .
Speaker #7: Our book to bill ratio remains healthy at 1.3 for the third quarter . Continuing our track record of maintaining a ratio above 1.1 for the past 19 consecutive quarters .
Speaker #7: As previously stated , the composition of our backlog has changed during the last year , shifting more towards high end , large size projects which tend to be less sensitive to higher interest rates and overall affordability .
Speaker #7: Moving to slide number seven , our single family residential business achieved record revenues on entirely organic growth . This performance was driven by previously enacted pricing initiatives that are now flowing through the PNL and helping to offset higher input costs .
Speaker #7: We were encouraged by double digit year over year increase in residential orders during this quarter's . This is very notable because we had 5 to 7 million in orders that pulled forward into the second quarter ahead of our price increase .
Speaker #7: This positive performance demonstrates successful geographic expansion , strong reception of our expanded products , offering more than 20% year over year growth in our dealer network and growing contributions from our vinyl product line .
Speaker #7: We are excited about several growth initiatives that we expect will further strengthen our market position . Our dealer network expansion continues to drive market penetration , supported by shortly times and initiative products offering better than nationwide demographic trends across our key southeast markets .
Speaker #7: Combined with our geographic diversification efforts are creating multiple avenues for continued market share gains . The California Showroom , opening in the fourth quarter and the introduction of the light aluminum legacy line , designed for new geographies , represent an important milestone in our geographical expansion , where we are already seeing encouraging growth in orders with our expand product line portfolio spanning aluminum and vinyl solutions .
Speaker #7: We are well positioned to continue to grow into 2026 . Additionally , we continue to advance our feasibility study for a new , fully automated facility in Florida , which would diversify our manufacturing footprint and provide logistics and lead time advantages in many of our target markets , further strengthening our vertical integrated platform .
Speaker #7: I will now turn the call over to Santiago to discuss our financial results and full year outlook .
Speaker #8: Thank you , Christian . Turning to the drivers of revenue on slide number nine , total revenues for the third quarter increased 9.3% year over year to a record 260.5 million , with growth in both our single family residential and multifamily commercial businesses .
Speaker #8: This performance reflects pricing gains as well as a robust demand for our best in class product offerings , driving strong organic momentum . Our Continental Glass Asset Acquisition contributed approximately 4 million to revenue during the quarter .
Speaker #8: Looking at the profit drivers on slide number ten, adjusted EBITDA for the third quarter of 2025 was $79.1 million, representing an adjusted EBITDA margin of 30.4%.
Speaker #8: Compared to 81.4 million , or 34.2% margin in the prior year quarter . This quarter . Gross profit was 111.3 million , representing a 42.7% gross margin compared to gross profit of 109.2 million , representing a 45.8% gross margin in the prior year quarter .
Speaker #8: The year over year change in gross margin reflected several factors . First , we had an unfavorable revenue mix with a higher proportion of installation revenue .
Speaker #8: Second , raw material costs were impacted by US aluminum premiums reaching all time highs during the quarter . Third , the Colombian peso strengthened significantly during the quarter , affecting our non hedged portion of local costs .
Speaker #8: Cigna expenses were $47.3 million, or 18.2% of total revenues, compared to $41.5 million, or 17.4% of total revenues in the prior year quarter.
Speaker #8: The increase included approximately 3.1 million in aluminum tariffs on standalone component sales , which we are mitigating through our pricing actions . Additionally , we had 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 .
Speaker #8: Our strategic pricing initiatives and cost control measures are gaining traction . We implemented mid single digit pricing adjustments on residential products and shifted to US source aluminum .
Speaker #8: And we're beginning to see the benefit of those actions as higher price orders are invoiced . We expect our pricing actions and supply chain optimization efforts to offset an estimated 25 million full year impact of tariffs and increased premiums on US aluminum .
Speaker #8: Now , examining our strong cash flow and balance sheet on slide number 11 , we generated operating cash flow of 40 million in the third quarter , driven by strong profitability and efficient working capital management , which more than offset incremental inventory purchases of US aluminum and increased receivables on higher installation revenues , which carry longer cash cycles .
Speaker #8: Capital expenditures of 18.8 million in the quarter included scheduled payments on previous investments and continued progress on our growth initiatives . We continue to expect capital expenditures to moderate through year end , driving strong free cash flow generation in the fourth quarter , our balance sheet remains exceptionally strong , with total liquidity of approximately 550 million at quarter end , including a cash position of 124 million and 425 million of availability on their recently refinanced and expanded senior secured credit facility and other bilateral bank facilities .
Speaker #8: In September, we expanded our syndicate facility to $500 million from $150 million, reducing spreads by 25 basis points and extending the maturity to 2030, providing significant financial flexibility for growth and other strategic capital allocation initiatives.
Speaker #8: With total debt of 111.9 million , we maintain a net debt to LTM adjusted EBITDA ratio of -0.04 times , providing us with tremendous financial flexibility to execute on growth initiatives while returning capital to shareholders .
Speaker #8: On slide number 12, our strong track record of generating returns above the broader industry continues to validate our disciplined capital allocation approach.
Speaker #8: Over the past three years , our strategic investments in operational excellence and capacity expansion have consistently delivered superior returns for our shareholders . This outperformance reflects our focus on high return investments in our very clean platform , as well as our industry leading profitability and significant improvements to working capital , which are driving sustainable cash generation and shareholder value .
Speaker #8: While maintaining our financial flexibility to pursue additional growth opportunities . We're also pleased to continue returning a portion of capital to shareholders through share repurchases and dividends .
Speaker #8: During the quarter , we repurchased 30 million shares and paid 7 million in dividends . Given the board's confidence in our continued cash flow generation capabilities , prudent balance sheet management and commitment to delivering superior returns to shareholders , they have authorized an expansion of Tecnoglass Inc. share repurchase authorization to 150 million .
Speaker #8: Following the expansion , the company had approximately 96.5 . Million remaining under its existing share repurchase program . Now moving to our outlook on slide 14 .
Speaker #8: Based on our strong performance through the first nine months of 2025 and the expectations for the fourth quarter of the year based on current market conditions , we're updating our full year 2025 financial guidance .
Speaker #8: We now expect revenues to be in the range of 970 million to 990 million , reflecting growth of approximately 10% at the midpoint .
Speaker #8: This updated range reflects lower project starts in light commercial due to current macroeconomic uncertainty , while maintaining our confidence in double digit top line growth for the full year 2025 , as well as for the full year 2026 .
Speaker #8: Additionally , we're updating our adjusted EBITDA outlook to a range of 294 million to 304 million , representing approximately 8% growth at the midpoint .
Speaker #8: This guidance assumes that pricing initiatives and other mitigation efforts will help compensate for the projected 25 million full year impact from elevated input costs and tariffs on select products .
Speaker #8: But now accounts for higher than expected aluminum cost . US aluminum premiums and a stronger local currency . Key assumptions supporting our outlook include stable volumes on residential orders for the rest of the year .
Speaker #8: Lower volumes in light construction activity continued downtrend in interest rates , driving mortgage rates lower FX headwinds from a stronger Colombian peso year over year , and a healthy cash flow generation during the rest of the year .
Speaker #8: We expect low single digit growth for legacy single family residential revenue with a higher mix of commercial jobs with installation . We now anticipate gross margins in the low to mid 40% range .
Speaker #8: In conclusion , our third quarter 2025 results demonstrate our ability to execute effectively in all environments by leveraging our competitive advantages to gain market share while maintaining industry leading margins and generating exceptional cash flow .
Speaker #8: With a record backlog providing multi-year visibility , expanding markets presence through geographic and product diversification , and strong balance sheet supporting strategic flexibility .
Speaker #8: We are well positioned to continue our track record of outperformance . We remain confident in our ability to deliver another year of strong growth in revenues and adjusted EBITDA , while creating lasting value for our shareholders and also anticipate to be able to once again grow our top line by double digits in 2026 .
Speaker #8: With that , we will be happy to answer your questions . Operator . Please open the line for questions .
Speaker #4: Thank you . We will now begin with the question and answer session . To ask a question , you may press star . Then one on your telephone keypad .
Speaker #4: If you are using a speakerphone , please pick up your handset before pressing the keys . To withdraw your question , please press star then two .
Speaker #4: At this time, we will pause momentarily to assemble our roster. Our first question comes from Tim Rogers with Baird. Please go ahead.
Speaker #9: Hey , everybody . Good . Good morning and nice job . Maybe just first on on 2026 and kind of calling out double digit growth .
Speaker #9: I'm just curious if you could add a little bit of context around the visibility to that . You know , what kind of you're assuming in that number for some of your larger projects , work , you know , residential and then also just kind of acknowledging some of the kind of weaker kind of smaller commercial projects right now .
Speaker #8: Hey , Tim , I'll take this . First , obviously , we have a record backlog in place that gives us visibility , especially on the larger projects that are either in execution or already breaking ground .
Speaker #8: That has financial closings in place already . So that gives us a lot of visibility . And I think the single family residential component , a lot of the growth is coming from what we're seeing as far as the geographical expansion into other places .
Speaker #8: And the vinyl product ramp up will obviously come back to you guys with more granular detail . This is kind of like what we're seeing based on making some general assumptions and have a lot of confidence in that .
Speaker #8: But as far as the breakdown goes and where we think specifically each bucket is going to contribute , I think we'll give you more detail in in the next call .
Speaker #9: Okay . Okay . And then as I think about , you know , the cost side of things , is there a way just to give us some ?
Speaker #9: I think I think aluminum was was a $5 million headwind . And you had a couple million dollars from FX . But I guess how do those how does the aluminum piece kind of trend in the fourth quarter and early 26 and then if you could just maybe talk about kind of when you would expect , you know , some of the peso headwinds to kind of normalize out , is that kind of a mid 2026 timeline at this point ?
Speaker #8: Yeah . On the aluminum , if you look at what has happened here in in the last three months , LME has gone up 15% from about 2500 to 2900 .
Speaker #8: So that's been a pretty fast ramp up . In the US . Aluminum premiums have gone up even faster . About 67% from about 1000 to $1800 .
Speaker #8: Right . So that's that's happened fast . As of late . I think the thought process here is that as as volumes and demand subside , those are going to correct .
Speaker #8: But but as of now , you know , it is anybody's guess as to what's what's going to happen there . Hopefully that won't stay a record high levels .
Speaker #8: For prolonged period of time . And if you look at what's happened with the FX since our last call , we were at 4170 and now we're at 3850 .
Speaker #8: That's an 8% revaluation in 90 days. So, again, it's a headwind of a very rapid ramp-up over the last 90 days.
Speaker #8: What's happening there as well is that the government of Colombia did a liability management deal where they have monetized a lot of dollars as of late .
Speaker #8: The expectation is for for the peso , probably to come back up above 4000 by year end . Locally , you know , we're covered on about 60% of our cost .
Speaker #8: And expenses . And we'll be looking to be opportunistic and find an attractive entry point to mitigate that risk going forward . But the expectation based on on the Economist is that we should be closer to the 4000 level by year end .
Speaker #9: Okay . Okay . And then I guess just last one for me on the on the vinyl business . Could you just give us an update maybe on kind of where that business is tracking in 2025 and maybe your , you know , kind of initial expectations for next year .
Speaker #9: There . Thanks .
Speaker #6: This year . This is Jos Daes this year we duplicated what we did last year . But it's still minimal compared to what it's going to be next year .
Speaker #6: We expect the next year to be from 7 to 10 times more than we have done this year , because we're going to have a complete line and we have already like 50 new dealers lined up just waiting for the line to be complete .
Speaker #9: Great . Thanks very much . Good . Good luck .
Speaker #10: Thanks .
Speaker #4: Thank you . Our next question comes from Sam Derkatch with Raymond James . Please go ahead .
Speaker #3: Good morning , Jose Manuel . Chris Santiago . How are you ?
Speaker #11: Good morning . Good morning .
Speaker #3: So I wanted to piggyback a little bit on on Tim's questions around 26 . Can you remind us what the price and tariff costs rollovers are from 25 into 26 ?
Speaker #3: And I guess what I'm getting at Santiago is , what do you figure ? Generally speaking , 26 gross margins might might shake out .
Speaker #3: And can you lever EBITDA margins next year ?
Speaker #11: Yeah . So obviously .
Speaker #8: There's a few moving pieces here as far as pricing goes . As you know we increased single family residential pricing 5 to 7% in in May .
Speaker #8: So, obviously, all of that now has the new pricing. And on the commercial side, you see a lot more of the backlog.
Speaker #8: That was signed earlier in the year coming in with new pricing . Obviously we're executing still , some of the older backlog where we didn't adjust pricing as far as gross margin goes .
Speaker #8: I mean , it's early to tell , but I didn't . I think the idea , depending on what happens with with the inputs that that we just discussed is that we can be able to maintain , you know , the low to to mid 40s type profile .
Speaker #8: But as you see , there's FX , there is aluminum cost , there's mix . We're doing more installation based on , you know , the high end projects that GMP is , is executing and you got operating leverage , right ?
Speaker #8: I mean , if we're saying that we can grow top line double digits again next year , we would obviously expect to get operating leverage in there .
Speaker #8: But but again , we'll we'll get you guys more detail as , as the time approaches . And we report Q4 and full 2026 guidance in the next call .
Speaker #3: Gotcha . And then . As it relates to pricing , as it stands right now , do you anticipate further pricing actions to to mitigate some of your costs ?
Speaker #3: And what are you seeing out in the field in terms of a competitive response to all the aluminum pressures . ?
Speaker #11: Generally , you're .
Speaker #8: Seeing tight pricing as you would expect . I everybody is trying to maintain their their market share . So for for as much as as we would like to take further pricing actions , the market dictates really what you can do .
Speaker #8: So the expectation for for our growth next year is more on the volume side , as Jose was mentioning , not only we're expecting the full ramp up on on vinyl , but all of the other geographies contributing much more meaningful .
Speaker #8: So when we're talking about double digit growth is more coming from volume rather than the assumption that we're going to be able to raise prices again based on what the competition is doing .
Speaker #8: And and the dynamics for the industry .
Speaker #3: And then my last question , the perspective us facility that you are contemplating , I know it's it's still in the semi early stages , but can you give us a sense of how much capacity you're looking at what what the CapEx cost might be and the timing of of those sorts of expenditures ?
Speaker #7: Well , we're still designing , studying , doing engineering , but we do believe that the building and land will be around $225 million .
Speaker #7: And the machines will be around 150 . It will be the we will have the capacity of 40% . Of of of most lines , it's still too early to tell .
Speaker #7: We do have a line already . A piece of land that we like is in a very special place . We're making . We're going to bid on it and and when we have all the numbers together , because it's going to be a fully automatic robotic factory that will employ like one eighth of the people that we normally employ to to make the same window when we have all that , we'll give you more color .
Speaker #7: on . What is it that we have to do ? But we are really looking into it because it's it's a good thing to do , especially that we want to do it in the East Coast and also in the West Coast .
Speaker #8: I mean , just just to .
Speaker #11: Add to Christine's .
Speaker #8: Comments , obviously , that CapEx is multi-year , right ? So this is something where if the factory is going to take two , three years to to get build out , this is something that gets spent over a multi-year horizon .
Speaker #8: And also it can be built gradually , right ? Depending on on demand . So you don't have to make a full investment without , you know , having the demand for for the excess capacity as well .
Speaker #3: So roughly 350 to 400 million in total costs and maybe 500 million in capacity , is that the broad brush way of looking at it ?
Speaker #8: Yeah , roughly . Sounds sounds good . So if you extrapolate to decent margins , the payback is is attractive . Obviously .
Speaker #3: Very good . Thank you . I appreciate it .
Speaker #10: Thanks .
Speaker #4: Thank you . Our next question comes from the line of Rohit Shetty with B Riley . Please go ahead .
Speaker #12: Hi . Thanks for taking my question . Just on the on the guidance you cited . Slower than anticipated invoicing , light commercial construction is the driver of the guidance cut .
Speaker #12: Can you quantify how much revenue maybe slipped from , you know , Q4 into 2026 . Is this like 1 or 2 projects or is this more a broader issue in commercial side ?
Speaker #13: Well , we're we're .
Speaker #8: Talking about a 20 million reduction at the midpoint of of the guidance , more or less . We would estimate that at least half of that is 2026 business , which obviously further supports the idea of double digit growth next year .
Speaker #8: And I would say some of that is coming from , you know , more stable raised invoicing than previously anticipated . But these are projects that are obviously in the backlog in the backlog and not expected to to to obviously drop off is more a timing issue .
Speaker #12: Okay . And then on the 2026 double digit growth guide on revenues , could you maybe narrow that down to a specific range ?
Speaker #12: Is it ten to 12 or 13 to 15 ?
Speaker #14: I mean , at this point I would assume low .
Speaker #8: Double digit growth , but again , more details to come . We're basically working with with back of the envelope calculations in assumptions , but when we report Q4 and give you full guidance , we'll provide more , more granular detail on that , okay .
Speaker #12: And your gross margins come down to the to the mid 40s as you think about 2026 , I mean , and your deriving your margin assumptions , what are the key swing factors ?
Speaker #12: You know , is there a path back to the mid 40s . And you think this low , low 40s is sort of the new run rate .
Speaker #14: Low to mid 40s is what .
Speaker #8: You know , what what we had talked about on the on the earlier question . And if you kind of back into the math that's more or less where we can end up this year , next year again there's different variables related to input cost .
Speaker #8: Hopefully some of the recent spikes in aluminum cost and premiums will will come down to to normalize levels . FX is is also in in question .
Speaker #8: So is a is an important input . And installation makes versus manufacturing mix also comes to play . In . Finally how much operating leverage can we get on those incremental sales .
Speaker #8: So again there's different variables . We'll provide more color when when we report next quarter .
Speaker #12: Okay . And just on the higher mix of revenues installation , it's been a headwind . Just can you quantify what percentage of your commercial revenue is installation versus product only .
Speaker #12: .
Speaker #8: What percentage of the commercial revenues ? What I'm sorry .
Speaker #12: What percentage was the installation mix in the third quarter versus product only ? Yeah .
Speaker #13: If you look at the overall revenue .
Speaker #8: For the .
Speaker #13: Year , we're .
Speaker #8: Doing about $990 million. Take about $200 million of that; it's going to be installation for the year. And that is up 50% versus last year.
Speaker #8: This quarter . The impact on on mix alone for the for the fourth quarter is roughly about $2 million of of EBITDA versus where we were in the prior midpoint .
Speaker #12: Okay . All right . All right . Great . I'll pass it on . Thank you for taking my question .
Speaker #10: All right . Thank you .
Speaker #12: Yeah .
Speaker #4: Thank you . Our next question comes from the line of Brent Thielman with D.A. Davidson . Please go ahead .
Speaker #9: Hey , great . Thanks . Just coming back to the sort of the short cycle commercial work that's maybe pushed some revenue out or delayed revenue .
Speaker #15: However you want to frame it . What ? I mean , what is sort of , in your view , kind of changed in the last few months ?
Speaker #15: That's influenced that . And I guess as a follow up question , you know , the backlog continues to grow here . Maybe what you see across the country in terms of high end base is the market getting better .
Speaker #15: Is the backlog growth and influence of you taking share ? If you could comment on those two things , that'd be great .
Speaker #8: Well , I think that the input costs that that we're mentioning here is playing a part in many other segments in the construction industry .
Speaker #8: Right ? So when when you have light commercial construction , depending on , on on those input costs is probably prudent to , to to kind of push off some of those projects until things normalize .
Speaker #8: So I think in what you have seen , we talked about , you know , going up 15% in , in , in 90 days and US aluminum premiums up 65% in the same time period .
Speaker #8: That's translated into other things . Right ? So for somebody that is putting in place a smaller project where they don't have . Necessarily financial closings of of people that have already bought condos , for instance , that's a different story is a different proposition .
Speaker #8: So it's it's a matter of of of timing and having things normalized . At some point there's going to be some type of correction .
Speaker #8: So I think that's what playing a part there . And on your on your second question , can you can you repeat . I think Jose is going to address that .
Speaker #15: Maybe just the back I mean , look , the backlog is growing at the same time here . So is this is the is the market for high end space getting better in the US ?
Speaker #15: Is this that you're capturing more share new regions . Just discussion there .
Speaker #6: Well we are expanding geographically . For example , before we didn't have any work in the Tampa Saint Petersburg area and now we have a lot of work there .
Speaker #6: We have work in Jacksonville . We have three buildings where we never had any , and we keep quoting . We have a lot of work in the Panhandle area , and that's only in Florida .
Speaker #6: And now we see a resurgence in the Boston , New York area . And also we . Are quoting directly with the GMP brand , which is the installation brand in Texas , California , and even Hawaii .
Speaker #6: So we're not just relying on Florida anymore . We are expanding Florida , South Florida to all over the state , and we are expanding outside the state with really good results .
Speaker #15: Okay . And then maybe one more follow up on the single family product . Product line . You know , when you look outside of Florida , where do you are these different geographies ?
Speaker #15: You're targeting , where are you getting the most traction ? Where where are you getting a lot of momentum building with it's Texas East Coast , West Coast .
Speaker #6: All over the East Coast is growing with the new line , but we see most of the growth is West Texas , Arizona , Nevada , California , Utah , even Hawaii .
Speaker #6: I mean , we sold the last year in Hawaii around , I don't know exactly , but we're going to end up with more in this year .
Speaker #6: Like 6 to $10 million . And we hope to do 20 or 30 next year .
Speaker #15: Yeah . Okay . Thank you .
Speaker #4: Thank you . Our next question comes from the line of Julia Romero with Sidoti . Please go ahead .
Speaker #3: Thanks . Hey .
Speaker #16: Good morning , Jose Manuel Christian Santiago .
Speaker #10: Good morning . Morning .
Speaker #16: Appreciate the preliminary revenue expectation for for 26 . And understand we'll get more color to come on the puts and takes there . Any preliminary thoughts on how we should think about capital allocation ?
Speaker #16: I know you have the the automated plan in Florida that you're currently weighing . Just trying to think about how you how you're thinking about capital expenditures and your recently upped share repurchase and how would you have us think about that .
Speaker #8: On CapEx . As we have mentioned before , it's trending down , and we're talking about core growth CapEx , not talking about the potential to to do the US plant , which is still early in the process .
Speaker #8: So, the CapEx is going to trend down, utilize capacity, and still allow us to grow well into double digits for the next couple of years.
Speaker #8: You saw what what we did in terms of buybacks last quarter and in terms of of of the board action to increase that program .
We hope to keep growing double digits.
And please, uh,
Keep time for better news.
Thank you.
The conference has now concluded.
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