On Slide number 15, I would like to reiterate our exceptional track record of creating value compared to the industry. On average, over the past three years, our stronger profitability and meaningful step-up in cash flow generation have driven significant above average returns. When comparing our ROE and ROIC metrics to those of U.S. building product peers, the returns on reinvestments into our business plus dividends have driven substantially higher value to our shareholders, further validating our growth strategy and capital allocation priorities. As you can see on Slide 17, the upward trajectory of our revenue and adjusted EBITDA remains positive, and there is a latter runway for growth. Our recent capacity additions and entrance into the vinyl window market have provided us with the capabilities to produce over $1.2 billion of annual revenues, including installation.
We remain as confident as ever in our ability to achieve another year of exceptional growth and above-market returns in 2024 and beyond. Now moving to our outlook on Slide 18. As Chris mentioned earlier, our key markets remain largely resilient, and we have witnessed positive trends indicating improving demand. We remain confident that 2024 has strong potential to be another year of double-digit revenue growth based on the visibility afforded by our backlog and by the different avenues for growth in our single-family residential business, including the new vinyl initiative, showroom openings and geographical expansion. That being said, given the current lack of clarity on U.S. macroeconomic factors, mainly the trajectory of interest rates going forward, we believe it is more appropriate and prudent to provide explicit guidance ranges for full year 2024 revenue and adjusted EBITDA at a later date.
In addition to potentially having better clarity on macroeconomic indicators, in the coming months, we should be better able to assess the cadence of growth in the single-family residential business and the timing of invoicing in certain projects. This includes projects in backlog as well as single-family residential, where we already see improving trends as well as a healthy amount of interest for our new line of vinyl products. In place of explicit ranges, we will provide some additional color on our growth outlook. In regards to margins for the year, we expect gross margins to step up from the levels seen in the last two quarters of 2023 based on a stable FX rate and the expected operating leverage resulting from a sequential increase in revenues throughout the year.
While we assume FX rates will remain stable with current levels based on internal expectations and economies projections, as a reminder, we estimate that every 5% movement in FX has an approximate 150 basis points impact on adjusted EBITDA margins. Therefore, despite the expected quarterly improvement in gross margin after Q1, for the full year 2024, it is reasonable to assume gross margin will be lower than the 47% level seen in the full 2023 year. This is predicated on two main factors: First, a stable FX rate since the beginning of 2024 results in a Colombian peso that is on average 10% stronger than the average FX rate for 2023 based on the current and projected 2024 FX levels. Second, we anticipate an increased mix of revenues from installation compared to 2023.
Based on the timing of projects, scheduled maintenance of our facilities in January and the expected ramp-up period of our vinyl products, we anticipate the first quarter of 2024 to be roughly similar sequentially to Q4 2023 in terms of revenues, with a higher degree of installation mix sequentially. The first quarter of the year is expected to be the seasonal low quarter of the year than increasing sequentially thereafter. Finally, cash flow from operations is expected to remain strong for the full year. Free cash flow is expected to improve in 2024, given the majority of capital expenditures related to facility automation, expansion and vinyl related investments having been completed. With all of this in mind, we continue to be very excited about our business prospects and growth opportunities for this year and beyond.
As discussed, we have several avenues to expand our market share for years to come. In summary, 2023 was another milestone year for Tecnoglass. Demand for our innovative product portfolio remain resilient, and we’ve made great progress against our growth strategy through geographic expansion, new product introductions and our entrance into the attractive vinyl window market. As we look to 2024, we are optimistic in our ability to continue growing faster than the market, while unlocking additional value in our business through our highly efficient cost structure, targeted investments and strategic positioning in attractive U.S. markets. With that, we will be happy to answer your questions. Operator, please open the line for questions.
Operator: Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first questions come from the line of Sam Darkatsh with Raymond James. Please proceed with your questions.
Samuel Darkatsh: Good morning, Jose Manuel, Chris, Santiago. How are you?
Chris Daes: Good morning.
Santiago Giraldo: Good morning, Sam.
Jose Manuel Daes: How are you?
Samuel Darkatsh: So I’ve got three questions, if you forgive me. So first, and you mentioned Santiago, the first quarter sales expected to be flattish with the fourth quarter with the installation element higher. So could you help us in that vein, what you might be pegging for realistic gross margins and EBITDA for the quarter?
Santiago Giraldo: Yeah. In gross margin, Sam, I will see something in line with Q4, perhaps. I would expect that over the quarter, being the fact that we’re going to have more mix, there’s going to be a little bit of a headwind in there. But from an EBITDA perspective, we wanted to wait and see what the cadence of the orders on the residential side are looking like, and then we’ll be able to determine that. But it should be kind of in line with Q4 all around from an FX perspective. If you look at what’s happened in the last six months, FX has been really stable. The main impact was year-over-year. As you recall, 2022 had a very depreciated peso. But in the last six months, it’s been rather stable. So I think from a quarter-over-quarter comparison, the FX pressure is really behind us.
