Tecnoglass Inc. Revenue Disclosure
Note 6. Revenue Disaggregation, Contract Assets and Contract liabilities
Disaggregation of Total Net Sales
The Company disaggregates its sales with customers by revenue recognition method for its only segment, as the Company believes these factors affect the nature, amount, timing, and uncertainty of the Company’s revenue and cash flows.
| Years ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Fixed price contracts | $ | 263,577 | $ | 161,959 | $ | 128,292 | ||||||
| Product sales | 720,033 | 728,222 | 704,973 | |||||||||
| Total revenues | $ | 983,610 | $ | 890,181 | $ | 833,265 | ||||||
The table below presents revenues distribution by end-market.
| Years ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Commercial | $ | 580,191 | $ | 518,067 | $ | 497,855 | ||||||
| Residential | 403,419 | 372,114 | 335,410 | |||||||||
| Total Revenues | $ | 983,610 | $ | 890,181 | $ | 833,265 | ||||||
Remaining Performance Obligations
As of December 31, 2025, the Company had $912.2 million of remaining performance obligations, which represents the transaction price of firm orders minus sales recognized from inception to date. Remaining performance obligations exclude letters of intent, unexercised contract options, verbal commitments, and potential orders under basic ordering agreements. The Company expects to recognize 100% of sales relating to existing performance obligations within two years, of which $492.9 million are expected to be recognized during the year ended December 31, 2026, $354.8 million during the year ended December 31, 2027, and $64.5 million thereafter.
Contract Assets and Contract Liabilities
Contract assets represent accumulated incurred costs and earned profits on contracts with customers that have been recorded as sales but have not been billed to customers and are classified as current. As a result, the timing of the satisfaction of performance obligations might differ from the timing of payments, given some conditions must be met before billing can occur. Contract assets also include a portion of the amounts billed on certain fixed price contracts that are withheld by the customer as a retainage until a final good receipt of the complete project to the customers satisfaction. Contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue, and represent amounts received in excess of sales recognized on contracts. The Company classifies advance payments and billings in excess of costs incurred as current, and deferred revenue as current or non-current based on the expected timing of sales recognition. Contract assets and contract liabilities are determined on a contract-by-contract basis at the end of each reporting period. The non-current portion of contract liabilities is included in other liabilities in the Company’s consolidated balance sheets.
The table below presents the components of net contract assets (liabilities).
December 31, 2025 | December 31, 2024 | |||||||
| Contract assets — current | $ | 31,809 | $ | 22,920 | ||||
| Contract assets — non-current | 20,506 | 15,208 | ||||||
| Contract liabilities — current | (149,442 | ) | (97,979 | ) | ||||
| Contract liabilities — non-current | (1,988 | ) | ||||||
| Net contract liabilities | $ | (99,115 | ) | $ | (59,851 | ) | ||
The components of contract assets are presented in the table below.
December 31, 2025 | December 31, 2024 | |||||||
| Unbilled contract receivables, gross | $ | 9,084 | $ | 6,584 | ||||
| Retainage | 43,231 | 31,544 | ||||||
| Total contract assets | 52,315 | 38,128 | ||||||
| Less: current portion | 31,809 | 22,920 | ||||||
| Contract assets – non-current | $ | 20,506 | $ | 15,208 | ||||
The components of contract liabilities are presented in the table below.
December 31, 2025 | December 31, 2024 | |||||||
| Billings in excess of costs | $ | 104,376 | $ | 58,708 | ||||
| Advances from customers on uncompleted contracts | 47,054 | 39,271 | ||||||
| Total contract liabilities | 151,430 | 97,979 | ||||||
| Less: current portion | 149,442 | 97,979 | ||||||
| Contract liabilities – non-current | $ | 1,988 | $ | |||||
During the year ended December 31, 2025, the Company recognized $33.4 million of sales related to its billing in excess of cost liability on January 1, 2025. During the year ended December 31, 2024, the Company recognized $15.6 million of sales related to its contract liabilities on January 1, 2024.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 8, 2021 | |
| 2019 | Mar 6, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.