Tecnoglass Q3 2026 Earnings Call Transcript

Tecnoglass (NYSE:TGLS) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Tecnoglass Holdings Inc. reported record revenue of $310.6 million for the third quarter of 2026, a 19.2% increase year-over-year, driven by strong market share gains and multifamily and commercial backlog execution.

The company faced margin pressures due to high aluminum prices, a stronger Colombian peso, and new tariffs, but expects improvement as aluminum costs decrease and automation reduces headcount.

Backlog reached a record $1.43 billion, up 13.2% year-over-year, with significant contributions from multifamily and commercial projects, particularly in Florida.

Despite the challenges, the company raised its full-year 2026 revenue outlook to $1.1 billion to $1.14 billion and adjusted EBITDA to $210 million to $220 million, anticipating improved margins in the fourth quarter.

Management highlighted geographic expansion, the growing vinyl segment, and showroom network as key strategic initiatives, with further pricing actions planned to offset rising costs.

Full Transcript

OPERATOR

Good morning and welcome to the Tecnoglass Holdings Inc. Third Quarter 2026 Earnings Conference Call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two.

Please note this event is being recorded. I would now like to turn the conference over to Brad Cray, Investor Relations. Please go ahead.

Brad Cray (Investor Relations)

Thank you for joining us for Tecnoglass third quarter 2026 conference call. A copy of the slide presentation to accompany this call may be obtained on the Investors section of the Tecnoglass website. Our speakers for today’s call are Chief Executive Officer Jose Manuel Diaz, Chief Operating Officer Chris Diaz and Chief Financial Officer Santiago Giraldo. 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. These statements are based on Tecnoglass’ 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’ business. These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass filings with the Securities and Exchange Commission. The information discussed during the call is presented in light of such risks.

Further, investors should keep in mind that Tecnoglass’ financial results in any particular period may not be indicative of future results. 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. I will now turn the call over to Jose Manuel beginning on slide number four.

Jose Manuel Diaz (Chief Executive Officer)

Thank you Brad and thank you everyone for participating on today’s call. We delivered record revenue in the third quarter and both of our businesses grew as we successfully executed our strategy, which continues to allow for significant market share gains. More important than any single quarter is the direction of this business. A decade ago we were primarily a commercial glass business concentrated in Florida. Today we serve customers across the United States in single family residential as well as multifamily and commercial, in aluminum and in vinyl, through seven showrooms and a dealer network that keeps expanding.

Our backlog has grown in every quarter since 2021. Demand for our products is healthy and we continue to take share and expand geographically. That transformation is why I am confident about where we are heading. Single family residential was not a business for us a decade ago and today it grows well above its end market. Vinyl has more than doubled the market we can serve. Our geographic expansion is steadily reducing our dependence on any single market.

Each of those was a deliberate investment and each one is working. Our margins this year have been pressured by costs outside our control. Aluminum reached record prices, the Colombian peso strengthened to levels we have not seen in years and new tariffs took effect on our products. I have not seen all three move against us in the same year. Several of those pressures are now turning. We have secured aluminum at better levels into 2027. Our mid-year pricing is reaching revenue and our automation program has reduced headcount while shipments continue to grow.

An estimated $8.4 million of the unfavorable FX impact was a non-cash accounting effect that we believe is temporary. Given recent FX trends, we expect the third quarter to be the low point for our margins this year. We are also building a more efficient company for the years ahead. Automation is structurally lowering our cost base. The land we purchased this quarter preserves the option to add capacity in the United States if the returns are there. Our vertically integrated platform lets us respond to cost and trade changes faster than most companies in our industry. That model generates the durable cash flow that supports our ability to return capital to shareholders.

And we remain as confident as ever in our ability to build long-term value. I will now turn the call over to Chris to provide additional operating highlights.

Chris Diaz (Chief Operating Officer)

Thank you Jose Manuel. Moving to slide numbers 5 and 6, backlog ended the quarter at another record of $1.43 billion, up 13.2% year over year. We have grown backlog sequentially in every quarter since 2021 and a book-to-bill ratio of 1.2 times marks 24 straight quarters above 1.0 times. Multifamily and commercial revenues reached a record $192.4 million, up 31% year over year as we executed on our backlog and a number of projects progressed into later stages.

Three factors underpin the quality of this backlog. First, cancellations are virtually non-existent since our windows typically go into buildings that are already far along in construction. Second, our project mix now leans toward larger high-end developments like luxury condominiums and upscale hotels which have proven less sensitive to interest rates. Third, we continue to diversify geographically, opening up new markets for the business. Florida accounted for roughly three-quarters of backlog at the end of the third quarter, compared with over 85% a year earlier.

Importantly, our Florida market remains strong, booking several recent projects. And in October we signed our largest project to date. Moving to slide number seven. Single family residential revenues were $118.1 million, up 4% from the prior year. Excluding orders pulled into the second quarter ahead of our May pricing actions, single family revenues increased 17%. Market share gains from geographic expansion, a growing vinyl contribution and higher pricing drove that growth. Roughly 65% to 70% of our single family revenues come from repair and remodel activity, which tends to hold up better through the cycle and is less tied to mortgage rates.

We continue to see several avenues to keep gaining share. Our dealer base outside Florida has grown by more than 25% over the past year, drawn by the quality of our products and our short lead times. In addition, our showroom expansion is paying off, combining commercial projects and single family residential year to date. Revenues generated through our showrooms in newer geographies outside of Florida are already approaching $60 million. The Los Angeles showroom we opened in October is our fifth outside of Florida and seventh overall, and it introduces our legacy line of aluminum windows to West Coast customers.

Vinyl, which has more than doubled our addressable market, continues to ramp as we scale it across our footprint. Turning to slide number eight, our single family revenues have grown 7% year to date, adding to our record of compounding growth since entering this market in 2018. We have consistently outperformed even in today’s muted environment where residential improvement spending is expected to grow 2% this year, according to the Leading Indicator of Remodeling Activity. Our footprint is concentrated in the South Atlantic, Mid-Atlantic and West South Central regions, which are expected to rank among the strongest for residential construction spending in 2026.

That alignment, together with our expanding dealer base and the ongoing vinyl ramp, supports our confidence in total revenue growing double digits this year, which is solidly above what our end markets are expected to deliver. I will now turn the call over to Santiago to discuss our financial results and full year outlook.

Santiago Giraldo (Chief Financial Officer)

Thank you, Christian. Turning to our financial results on slides 10 to 12, total revenues for the third quarter increased 19.2% year over year to a record $310.6 million. Growth came from continued execution on a record multifamily and commercial backlog and ongoing market share gains in single-family residential. Looking at the profit drivers, adjusted EBITDA for the third quarter of 2026 was $47.7 million compared to $79.1 million in the prior-year quarter. Excluding a non-cash inventory revaluation I will cover in a moment, adjusted EBITDA for the quarter would have been approximately $8.4 million higher. SG&A was 23.8% of total revenues compared to 18.2% in the prior-year quarter. Section 232 tariffs on finished aluminum windows accounted for approximately $15.5 million of the increase in the first full quarter with the 10% tariff in place.

The rest came from higher transportation and commission expenses tied to revenue growth, along with higher personnel costs from annual salary adjustments and a stronger peso. Sequentially, SG&A was essentially flat on 5% higher revenue, which improved SG&A as a percentage of revenues by approximately 100 basis points versus the second quarter. Third quarter gross margin was 34.1% compared to 42.7% in the prior-year quarter. The decline was driven primarily by the Colombian peso, which appreciated approximately 20% year over year and accounted for roughly 580 basis points of the change. That breaks into two pieces: approximately 330 basis points came from our exposure on our peso-denominated costs and a stronger peso, and the other 250 basis points came from an $8.4 million non-cash revaluation of inventory.

We bought that product about 100 days earlier when the peso was approximately 12% weaker and carried it on our books at that older rate. So when we sold it in the third quarter, it ran through at a higher cost when expressed in U.S. dollars. The effect is non-cash since we bought and sold in U.S. dollars at approximately 3,100 to the dollar. The peso is at its strongest level since September 2018 and stronger than our prior outlook assumed. We will keep adding currency hedges where we can, and our automation-related headcount reductions are lowering our peso-denominated expenses on aluminum.

The average all-in U.S. price, which combines the LME benchmark and the Midwest premium, rose approximately 52% year over year, and those costs reached us on a lag as earlier purchases flowed through. Inventory prices have since come off this year’s peak, and we have secured aluminum at lower levels for the rest of 2026 and into the first quarter of 2027. Two other factors weighed on gross margin in the quarter. Labor costs rose following the 23% minimum wage increase in Colombia at the start of the year, and mix was unfavorable with more installation revenue as commercial projects reached more advanced stages.

These pressures were partially offset by operating leverage on higher volume, the initial benefit of our May pricing actions, and efficiencies from our automation initiatives. Our mid-year pricing actions now represent a higher share of invoicing on smaller projects and will continue to flow into revenue as we invoice larger projects into next year. As a result, we expect fourth quarter gross margin to improve sequentially as better pricing, lower aluminum costs, and a smaller inventory revaluation effect more than offset a peso that remains strong.

Now moving to our cash flow and balance sheet on slides 13 and 14, cash provided by operating activities improved to approximately $21.5 million in the third quarter, reflecting working capital contributions from trade receivables and inventories and the seasonal impact of lower income tax payments and no significant inventory pre-purchases during the quarter. Capital expenditures were $66.1 million in the quarter, including the land purchase for the potential U.S. facility, scheduled payments on previously announced capacity and automation investments, and certain prepayments on ongoing investments, which we funded in part with our credit facilities.

Our balance sheet remains solid. Total liquidity at quarter end was approximately $380 million, and we have no significant debt maturities before the end of 2030. At 0.9 times net leverage, we maintain a conservative profile that provides significant financial flexibility to continue investing in growth and returning capital to shareholders. Our investments in operational excellence and in our vertically integrated platform have consistently produced returns above the broader industry, supported by our profitability and working capital management.

We expect those strengths to keep generating the cash flow behind our balanced, high-return approach to capital deployment. Now moving to our outlook on slide 16. Based on our first nine months and the visibility in our order book, we are raising our full-year 2026 revenue outlook to $1.1 billion to $1.14 billion. As demand trends remain encouraging and we continue to grow well above industry rates, we are revising our adjusted EBITDA outlook to $210 million to $220 million. The change mainly reflects the temporary non-cash $8.4 million accounting effect of inventory revaluation during the third quarter and accounts for higher-than-expected revenues, which are helping offset elevated raw material costs and a stronger local currency.

Excluding this effect, our adjusted EBITDA outlook would have been approximately $8.4 million higher. While margins were pressured during the quarter, we consumed the peak-priced aluminum during the period and absorbed the sharpest peso appreciation of the year, indicating that improved margins should be expected going forward as we also account for better pricing through year end. Our automation program continues to advance following the 10% headcount reduction completed in June.

Additional automation comes online by year end, bringing further efficiencies while preserving the capacity to serve a strong order book. The result is a more efficient cost structure and a stronger competitive position for years to come. With a full year of pricing and incremental automation savings, we remain committed to fully offsetting the tariff impact in 2027. In closing, we delivered record revenue, and adjusted EBITDA excluding the temporary non-cash impact was ahead of our internal expectations. We also continued to gain share in new and existing geographies and have actions in place to address the cost pressures that weighed on the quarter. Our growing national presence in single-family residential and our solid balance sheet give us confidence in our ability to deliver on our objectives and outperform the market for years to come.

With that, we will be happy to answer your questions. Operator, please open the lines for questions.

OPERATOR

We will now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Tim Voyes with Baird. Please go ahead.

Tim Voyes (Analyst)

Hey guys, good morning. Nice to see the revenue. Good morning. Hey, could you maybe just kind of talk about what you’re seeing on the demand side, particularly in Florida and maybe some of the residential businesses outside of Florida? I mean, it seems like, you know, despite everything you read, Florida is still doing pretty well and, you know, both on the resi and the commercial side, so maybe just some kind of added flavor there would be helpful.

Chris Diaz (Chief Operating Officer)

Well, Florida is not doing well. It’s doing extremely well. The demand is unbelievable. I mean, we have problems now with the quoting capacity on commercial. We have too many jobs quoting at the moment, and the startups are still going, and we’re moving a lot also to Tampa, Jacksonville, where we didn’t have a presence before, and the Panhandle. On the commercial side, I believe that we have work for the next five years for sure. Now, on the residential, we keep penetrating even though our competition keeps lowering the prices. What we offer the clients is not only pricing but the quality of the window, the on-time deliveries, the service. And that’s why they keep choosing ES Windows over all our competitors.

Tim Voyes (Analyst)

That’s helpful. And Santiago, I guess just two questions for me. So first, if I kind of sort through some of the numbers on the fourth quarter, I mean it seems like you should be doing kind of like a 38%, 39% kind of gross profit margin. I just kind of want to verify that. And it seems like that should continue into ’27. And then second, just as you’ve kind of gone through everything, how is everything tracking in terms of price, automation, you know, those types of things to give you the visibility and the confidence that you’ll be able to kind of offset all these headwinds you’ve seen in ’26 into ’27?

Santiago Giraldo (Chief Financial Officer)

Yes, on the first question, you’re right. That’s how we are modeling. And if you look at what we did in Q2, that was approximately the same gross margin. Q3 was an outlier based on that inventory revaluation that we had because of the peso appreciation by 12% in less than 90 days. So that’s just a pure accounting effect. But that, as the peso stabilizes, that reverses, right. So we’re expecting that, number one. Number two, we’re expecting more of the new orders with the better pricing that started flowing in Q3, but you’ll have more of that in Q4.

Number three, you’ll have more automation, right. So the headcount reduction starts taking shape and increasing. So that gives us confidence that margins get back up there. Obviously, ’27, without having given guidance for that, we were expecting that to be better. Obviously we still have some variables like FX; the peso is slowly kind of depreciating back, so that’s nice to see. We’ll see what happens with aluminum prices, right. So there’s a few variables, but the thought is that gross margins pick back up sequentially when we don’t have this outlier on the inventory revaluation. And in ’27, with better pricing for essentially the whole portfolio for the full year and the automation in place, it should be even better than Q4.

Tim Voyes (Analyst)

Okay, awesome. Helpful. Thanks, guys.

OPERATOR

The next question comes from Will Gilday with CJS Securities. Please go ahead.

Will Gilday (Analyst)

Hey, good. Good morning. Thanks for—good morning. Thanks for taking our questions. Can you hear me?

OPERATOR

Hi. You can go ahead.

Will Gilday (Analyst)

Okay, so, yeah, first question. Just can you give us an update on the vinyl ramp? And as we look into 2027, are there any gating factors on growing it significantly? I’m thinking of things like product development, certifications in different geographies, or, you know, having a dealer network built out. Is this thing on?

OPERATOR

Sorry, we seem to have the management line disconnected. Please stay with us while we await their joining in.

Brad Cray (Investor Relations)

Hey, guys. Apologize. We got dropped off somehow. Tim, how long did you get to hear our answer? I think that’s where we got dropped off.

OPERATOR

Pardon me. The question was asked. May I request the participant to please repeat the question because the answer was not heard.

Will Gilday (Analyst)

Yep. Yeah. Yes, this is Will with CJS. Just was asking for an update on the vinyl ramp. You know, as we look into 2027, are there any gating factors on growing it significantly? I’m thinking of things like product development, certifications in different geographies, or, you know, building out the dealer network. Just any color on vinyl?

Santiago Giraldo (Chief Financial Officer)

Yeah, sorry, Will, we got dropped off. So on that, the expectation for this year, nothing changes on the previous expectation that we had given of about 15 mil for the year. Next year we’re still projecting between 3 to 5 mil per month, and that also depends on overall market conditions. But we essentially are expecting that to be up 4x versus what we’re expecting to do in 2026. The product is now fully developed, which, as you know, had been kind of like the holdup on how revenues evolved this year.

But with the full line being developed and out in the market, we expect a fuller rollout in the different geographies.

Will Gilday (Analyst)

Okay, great, thank you. And then just on the non-cash inventory revaluation, just trying to understand that better, excluding that gross profit actually grew year over year. Is this one time or should we be expecting similar charges in the future?

Santiago Giraldo (Chief Financial Officer)

Yeah, no, no, no. This is related to our functional currency, which we’re looking to change into US dollars, right, number one. So this is a pure accounting effect. It’s a one-off, and it only happens when you see very rapid revaluation within the quarter. This has happened before. This happened in 2023. The peso revalued almost 12% in less than 90 days. So when you book your inventory into your functional currency, which is the peso, 90 days ago, and you run it through COGS 90 days later with a stronger peso, when you re-express it into dollars, it’s actually more dollars, right.

So on a presentation basis you see the reduction on gross margin, but essentially it’s non-cash; it’s pure accounting. Once we go into functional currency dollar, that will all go away. And then once you see the opposite effect with the peso devaluing, you start seeing the opposite effect. So this is just timing-wise, but essentially once we become functional currency dollar, that’ll just be streamlined.

Will Gilday (Analyst)

Okay, perfect. That makes sense then. Last one for me, just on the Greenfield manufacturing facility in Florida. You bought the land, you’ve locked in the tax incentives. So what factors are going to drive the decision to go forward, and when do you expect to make a decision?

Santiago Giraldo (Chief Financial Officer)

Nothing for the next six, nine months. I think as we have discussed before, the idea is to assess market conditions. We’re testing the equipment as it rolls into the factory in Colombia, and depending on how efficient that is, what the headcount needs are, and seeing what kind of returns we can achieve from those investments, a determination will be made. But then the next nine months will also give us a clear idea on what market conditions look like.

So for the next nine months, we’ll stay put. We have the land in place, and we’ll just focus on organic growth in our current factory in Colombia.

Will Gilday (Analyst)

Great. Thank you.

Santiago Giraldo (Chief Financial Officer)

Thank you.

OPERATOR

The next question comes from Julio Romero with Sidoti and Company. Please go ahead.

Julio Romero (Analyst)

Great. Good morning. Thanks for taking my questions. The multifamily and commercial revenue growth bucket of 31%, which you guys attributed to projects moving into more advanced stages, does that reflect faster execution by the company, by Tecnoglass, across that backlog, or is that specific to certain projects and customers? And then secondly, if you’re working through the older backlog faster, does that pull forward when the May pricing reaches the commercial revenue in 2017?

Santiago Giraldo (Chief Financial Officer)

I think the thought on pricing, Julio, is that at the end of this year, you’re already starting to see better pricing on the light commercial construction projects, right. And the idea is that probably by Q2 and Q3 of next year, you start seeing some of the larger projects with a better pricing. And obviously on residential, fully newly priced, probably starting January and most of Q4 of this year. I think on the execution, it’s just really strong timing and essentially no delays on projects, right. A lot of these projects that we’re executing on that record backlog are in well-advanced stages. So you don’t have deals with permits or other holdups, and you can just essentially deliver on a weekly basis. We’ll see how it continues to shape up the rest of the year. Obviously, we accounted for higher revenue guidance based on what happened in Q3.

In Q4, if we continue to see that cadence of execution, we probably end up at the higher end of that range.

Julio Romero (Analyst)

Okay, that’s helpful. And I guess, Santiago, just to clarify, the 2027 price realization expectation on the portion related to the larger projects, right, which I think makes up like 3/4 of the backlog, that is still intact as mid 27, Q2, Q3, and that hasn’t really changed over the last three months. Yeah, okay. And then I guess, you know, on the largest—congrats on signing the largest project to date after the quarter end—is that outside Florida? And then more broadly, what visibility do you have beyond the backlog into kind of additional projects at that scale, and how is that kind of trending versus a year ago?

Santiago Giraldo (Chief Financial Officer)

I’ll take the first one and let Jose talk about the pipeline. The project is actually included within the backlog reported because it had already an affirmed LOI. It was signed beyond the quarter, but it was already included. And it is a Florida project—not to give too many details for competitive reasons. It is a Florida project. And as far as pipeline and other activity going forward, I’ll let Jose take that one.

Jose Manuel Diaz (Chief Executive Officer)

We are penetrating outside of Florida a lot, too. I mean, we’re doing the tallest tower in New York at the moment, and we keep penetrating. We have a few quotes in San Francisco, in the rest of California, in Texas. We keep growing. I mean, we’re doing really good outside of Florida, slowly but surely. In Florida the demand is crazy. We, like I said before, we are hiring more people to quote because we cannot cope with all the quotes that we are getting every day.

Julio Romero (Analyst)

Excellent. Thanks very much. I’ll pass it on.

OPERATOR

Thank you. The next question comes from Sam Darkatch with Raymond James. Please go ahead.

Sam Darkatch (Analyst)

Good morning, Jose Manuel, Chris, Santiago, how are you?

Jose Manuel Diaz (Chief Executive Officer)

Good morning.

Sam Darkatch (Analyst)

A few questions. First off, a follow-up: talk about the prospects for incremental industry or Tecnoglass pricing from here. I know there’s been some industry capacity that’s come out. Aluminum is off, but the peso is still pressured, and there’s clearly a lot of inflation that the industry is seeing. What are the prospects for further pricing actions going forward in your view?

Jose Manuel Diaz (Chief Executive Officer)

We have been increasing the pricing on the quotes on the new projects due to all those things that you mentioned. And on the residential, we are going to announce soon another increment because of those same reasons.

Sam Darkatch (Analyst)

So there’s going to be another incremental price action taken shortly. Am I reading you correctly on the residential side?

Jose Manuel Diaz (Chief Executive Officer)

Yes, sir, you’re correct.

Sam Darkatch (Analyst)

Something of similar magnitude as what we saw in May, June?

Jose Manuel Diaz (Chief Executive Officer)

Can you please repeat the question?

Sam Darkatch (Analyst)

I’m sorry, the price increase that you’re contemplating, would that be of a similar magnitude as what was seen earlier this year?

Jose Manuel Diaz (Chief Executive Officer)

Well, it’s around that. Some products that require a lot of aluminum, it will be around that, and some products are going to be less. So it’s a mix. It goes from 3% and sometimes even to 15% on some products.

Sam Darkatch (Analyst)

Got it. And then, Santiago, what is the general and administrative expense line? What’s the inflation rate that you’re looking at for 27? I know there was an unusual labor rate increase last year, but what’s a reasonable view for that?

Santiago Giraldo (Chief Financial Officer)

It’s currently being negotiated, and we’ll know more by year end. Typically equates to inflation plus a couple of points. That’s going to be high single digits adjustment. We’re not expecting to see anything abnormal like you saw at the beginning of this year.

Sam Darkatch (Analyst)

So I guess what I’m getting at is, if we’re looking at double-digit sales growth next year, improvements in gross margins, maybe some pricing incrementally going through, offset with obviously the pressures in the labor costs—and there’s automation in there—but, I mean, incremental margins typically I think are, you know, what, 25, 30% normally. Are you looking at 27 as being a higher-than-normal incremental margin year, or do all the confluence of factors make it more of a normal incremental margin year next year?

Santiago Giraldo (Chief Financial Officer)

Incremental margin like gross margins or operating margins?

Sam Darkatch (Analyst)

I’m sorry, operating, like on the EBITDA line—I’m sorry, operating margins.

Santiago Giraldo (Chief Financial Officer)

Yeah. Yes. Incremental margins at the operating line, yes. Yeah. Like I was saying earlier, based on everything being equal as it is today, on double-digit growth, you get operating leverage. You obviously have better pricing in a larger portion of the portfolio. You have more automation, less headcount. So we are baking in that we can get up to where we were in terms of gross margins, probably around the 40% gross margin type profile. We’ll obviously give you more information and better details when we provide guidance for 2017 during our next call.

But, you know, as you know, there are other variables to consider—what happens with FX, what happens with aluminum prices. We’ll see what happens with tariffs, although we’re expecting that to continue. But we’ll be in a better position to tell you everything in next call once we have also tested the new equipment and see what the automation efficiencies will be looking like.

Sam Darkatch (Analyst)

Gotcha. And my last question, just a clarification: within your implied fourth quarter sales guidance, Santiago, what are you assuming for single-family resi growth in the fourth quarter?

Santiago Giraldo (Chief Financial Officer)

We’re assuming that to kind of get back to a more normalized level, maybe about 95 to 100 mil forward for the quarter. And obviously, as you know, in the last couple of quarters we had a significant benefit from all the orders that were put ahead of the price increase, right. So in terms of what that looks like against last year, you’re still talking about high single-digit growth.

Sam Darkatch (Analyst)

Very helpful. Thank you much. Appreciate it.

Santiago Giraldo (Chief Financial Officer)

All right, guys. Thank you.

OPERATOR

Thank you. This concludes our question and answer session. I would like to turn the conference back over to Jose Manuel Diaz for any closing remarks.

Jose Manuel Diaz (Chief Executive Officer)

Well, thanks, everyone, for participating. I believe the best times are coming in the following years, and we’ll keep working to streamline the company and get better results to our investors. Thank you.

OPERATOR

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.