What Tecnoglass Inc. told the SEC could break it.

Tecnoglass's architectural glass and window products are materials-intensive: its primary manufacturing materials are glass, ionoplast, polyvinyl butyral (PVB), and aluminum and vinyl extrusions. Prices for these inputs — especially aluminum (whose cost rose in part due to its U.S.-cast-aluminum tariff-mitigation strategy) and float glass — directly affect cost of goods and margins. Sustained commodity inflation that it cannot fully offset through pricing would compress profitability. A specific glass/aluminum/PVB commodity dependence.

“Our primary manufacturing materials include glass, ionoplast, polyvinyl butyral, and aluminum and vinyl extrusions.”

Tecnoglass has a structural cross-border tariff exposure: its primary manufacturing facilities are in Colombia, yet approximately 94.8% of fiscal 2025 sales were generated in the United States. New U.S. tariffs — including an additional 10% ad valorem duty under IEEPA (subject to litigation/appeals and uncertain scope/duration/refunds) — directly increase its costs and may pressure margins, and retaliatory measures could compound the impact. It has strategically shifted its supply chain to source U.S.-cast aluminum to mitigate part of the impact (which itself raised aluminum costs). A material, realized trade-policy exposure tied to its single-country (Colombia) manufacturing base selling almost entirely into the U.S.

“Given that our primary manufacturing facilities are located in Colombia and approximately 94.8% of our sales for the fiscal year ended December 31, 2025, were generated in the United States, these tariffs directly increase our costs and may pressure our profit margins.”

Tecnoglass has supplier concentration in its raw materials: in 2025, two suppliers each accounted for more than 10% of total raw-material purchases and together represented 37.3% of total raw-material purchases. Its supply agreements are generally terminable by either party on limited notice. A failure, price increase, or loss of either of these two key suppliers could disrupt manufacturing or raise costs (one is likely its Saint-Gobain/Vidrio Andino float-glass JV, captured separately as an edge). Suppliers are not individually named here, so a supplier-concentration/sole-source risk.

“During the year ended December 31, 2025, two suppliers accounted for more than 10% of total raw material purchases, and in aggregate both account for 37.3% of total raw material purchases.”