Glass and windows manufacturer Tecnoglass (NYSE: TGLS) announced better-than-expected revenue in Q4 CY2025, with sales up 2.4% year on year to $245.3 million. The company’s full-year revenue guidance of $1.10 billion at the midpoint came in 1.1% above analysts’ estimates. Its non-GAAP profit of $0.63 per share was 25.2% below analysts’ consensus estimates.

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Company Overview

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Tecnoglass’s 21.2% annualized revenue growth over the last five years was incredible. Its growth beat the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Tecnoglass’s annualized revenue growth of 8.6% over the last two years is below its five-year trend, but we still think the results were respectable.

This quarter, Tecnoglass reported modest year-on-year revenue growth of 2.4% but beat Wall Street’s estimates by 1.7%.

Looking ahead, sell-side analysts expect revenue to grow 9.7% over the next 12 months, similar to its two-year rate. This projection is noteworthy and suggests its newer products and services will spur better top-line performance.

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Operating Margin

Tecnoglass’s operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 27.1% over the last five years. This profitability was elite for an industrials business thanks to its efficient cost structure and economies of scale. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low.

Looking at the trend in its profitability, Tecnoglass’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, Tecnoglass generated an operating margin profit margin of 18.3%, down 9.8 percentage points year on year. Since Tecnoglass’s gross margin decreased more than its operating margin, we can assume its recent inefficiencies were driven more by weaker leverage on its cost of sales rather than increased marketing, R&D, and administrative overhead expenses.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Tecnoglass’s EPS grew at an astounding 34.9% compounded annual growth rate over the last five years, higher than its 21.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into Tecnoglass’s quality of earnings can give us a better understanding of its performance. A five-year view shows that Tecnoglass has repurchased its stock, shrinking its share count by 1.1%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Tecnoglass, its two-year annual EPS declines of 5.2% mark a reversal from its (seemingly) healthy five-year trend. We hope Tecnoglass can return to earnings growth in the future.

In Q4, Tecnoglass reported adjusted EPS of $0.63, down from $1.05 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Tecnoglass’s full-year EPS of $3.58 to grow 13.3%.

Key Takeaways from Tecnoglass’s Q4 Results

It was encouraging to see Tecnoglass beat analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance slightly exceeded Wall Street’s estimates. On the other hand, its full-year EBITDA guidance missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 1% to $48.60 immediately after reporting.

The latest quarter from Tecnoglass’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).