TG

Shares of Tredegar Corporation TG have gained 4.3% since the company reported its earnings for the quarter ended June 30, 2026, outperforming the S&P 500 index’s 0.3% growth over the same period. Over the past month, Tredegar shares have advanced 9.5% compared with the S&P 500’s 2% increase. Tredegar reported second-quarter 2026 adjusted net income from ongoing operations of 18 cents per share, up from 5 cents per share a year earlier. Sales of $216.2 million indicated a 20.7% rise from $179.1 million in the year-ago quarter. Net income from continuing operations increased to $6.1 million from $1.8 million. On a non-GAAP basis, net income from ongoing operations was $6.4 million compared with $1.8 million a year earlier. Consolidated EBITDA from ongoing operations increased 42% to $14.2 million from $10 million. Tredegar Corporation price-consensus-eps-surprise-chart | Tredegar Corporation Quote Aluminum Extrusions was the primary contributor to the improvement. Segment net sales increased 24.1% to $184.1 million despite a 5.8% decline in sales volume to 38.3 million pounds. EBITDA from ongoing operations jumped 56.3% to $14.5 million. Nonresidential building and construction volume fell 16%, while consumer durables and automotive and transportation volumes each declined. In contrast, TSLOTS shipments increased 45%, supported by demand for data-containment and data-center infrastructure. Average weekly net new orders edged up to 3.2 million pounds from 3.1 million pounds. High Performance Films posted a 4.2% increase in net sales to $25.6 million, although sales volume declined 0.8%. EBITDA from ongoing operations fell 13.9% to $5.8 million from $6.7 million. Surface Protection volume increased 17.8%, while advanced packaging films volume decreased 17.8%. Aluminum Extrusions benefited substantially from metal-related factors. A favorable shift in scrap spreads and higher scrap utilization contributed $5.1 million compared with a $0.7 million unfavorable impact a year earlier. FIFO timing generated a $4.9 million benefit versus a $0.7 million charge in the prior-year quarter. These gains helped offset lower volume, higher labor rates, weaker labor productivity and increased maintenance, die and freight costs. Tredegar expects the benefit associated with FIFO inventory positions and metal-price trends to be substantially neutralized in the third quarter. High Performance Films’ profitability was pressured by resin-cost pass-through lags, higher employee-related fixed costs and a $0.3 million foreign-currency transaction loss. Favorable productivity and cost improvements in Surface Protection provided a partial offset. CEO Arijit DasGupta said Tredegar’s businesses generated solid profitability despite mixed market conditions, economic uncertainty and trade-policy pressures. Management is emphasizing disciplined capital allocation, higher-value markets and innovation, including expanding High Performance Films into adjacent markets and developing TSLOTS opportunities tied to data-center expansion. Tredegar expects targeted benefits from its cost-reduction and operational-improvement initiatives to begin materializing within six to nine months. For 2026, the company projects $20 million of capital expenditures for Aluminum Extrusions, including $4 million for productivity projects, and $2 million for High Performance Films. Aluminum Extrusions depreciation and amortization are projected at $14 million and $2 million, respectively, while High Performance Films depreciation is expected to be $4 million. Tredegar continued its “One Tredegar” transformation, aimed at replacing its more siloed operating structure with aligned priorities and a more streamlined organization. The company has begun leadership upgrades, reduced organizational complexity and initiated company-wide cost-reduction and operational-improvement measures intended to accelerate decision-making and strengthen accountability. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tredegar Corporation (TG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Increased second quarter 2026 results, with net income from continuing operations of $6.0 million, or $0.17 per diluted share, for the second quarter of 2026 compared to $1.8 million, or $0.05 per diluted share, for the second quarter of 2025 Net income from ongoing operations, which excludes special items, was $6.4 million, or $0.18 per diluted share, for the second quarter of 2026 compared to $1.8 million, or $0.05 per diluted share, for the second quarter of 20251 Consolidated earnings before interest, taxes, depreciation and amortization ("Consolidated EBITDA") from ongoing operations was $14.2 million for the second quarter of 2026 compared to $10.0 million for the second quarter of 20251 Second quarter 2026 performance driven primarily by Aluminum Extrusions: RICHMOND, Va., August 07, 2026--(BUSINESS WIRE)--Tredegar Corporation (NYSE:TG, also the "Company" or "Tredegar") today reported second quarter financial results for the period ended June 30, 2026. CEO Commentary "Tredegar delivered strong second quarter results, with higher EBITDA in Aluminum Extrusions driven by metal-related margin tailwinds," said Dr. Arijit (Bapi) DasGupta, President and Chief Executive Officer of Tredegar. "Our businesses continued to generate solid profitability, even while market conditions remain mixed and influenced by ongoing economic uncertainty and trade policy." Dr. DasGupta continued, "We have been intensely focused on strengthening the foundation of Tredegar for long-term value creation. This year, we launched our transformation to ‘One Tredegar,’ aligning priorities across the organization and building a high-performance, nimble and results-driven culture that replaces a more siloed operating model, while keeping the safety of our employees front and center. As an example, our High Performance Films plant in Guangzhou, China, has surpassed five years without a recordable incident. We have begun to make strategic leadership upgrades to increase accountability and deliver results, streamlined our organizational structure around limited corporate and shared services, and initiated company-wide actions to reduce costs, simplify complexity and accelerate decision-making." Looking ahead, Dr. DasGupta emphasized Tredegar’s focus on disciplined capital deployment and growth in higher-value markets. "We are establishing a rigorous capital allocation process designed to direct resources toward the highest-return opportunities and are working to strengthen our innovation pipeline and expand into attractive, higher-value adjacent markets within High Performance Films. In Aluminum Extrusions, we are advancing growth initiatives such as TSLOTS™ to capitalize on accelerating demand associated with data-center expansion and other structural growth trends." Dr. DasGupta concluded, "Although much of this work is still in its early stages, we expect targeted benefits from our cost-reduction and operational-improvement initiatives to begin materializing in the next six to nine months. We remain focused on operational excellence, disciplined execution, and delivering sustainable growth in profitability, cash generation and shareholder value." OPERATIONS REVIEW Aluminum Extrusions A summary of results for Aluminum Extrusions (also "Bonnell Aluminum") is provided below: Second Quarter 2026 Results vs. Second Quarter 2025 Results Net sales (sales less freight) in the second quarter of 2026 increased 24.1% versus the second quarter of 2025 primarily due to the pass-through of higher metal costs, partially offset by lower volume. Sales volume in the second quarter of 2026 decreased 5.8% versus the second quarter of 2025 and increased 8.8% versus the first quarter of 2026. Bonnell Aluminum experienced a 16% decline in nonresidential building and construction volume, driven by higher costs, including significantly higher metal costs, and ongoing economic uncertainty. Nonresidential building and construction volume represented approximately 48% of total volume and remains Bonnell Aluminum’s most significant end-use market. Within the specialty market, consumer durables volume, representing 8% of total volume, decreased 18% due to consumer cautionary spending on discretionary purchases. Also within the specialty market, TSLOTSTM shipments, representing approximately 11% of total volume, increased 45%, supported by increased demand for data‑containment and data‑center infrastructure. Automotive and transportation volume declined 16%, reflecting continued cost pressures on manufacturers and lower sales compared with the prior year period, which benefited from tariff-related pull-forward demand in the second quarter of 2025. Automotive and transportation represents approximately 7% of total volume. Refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2026, ("Second Quarter Form 10-Q") for sales volume by end use market for the three and six months ended June 30, 2026, and 2025, and the three months ended March 31, 2026. Net new orders in the second quarter of 2026 increased slightly to an average of 3.2 million pounds per week versus an average of 3.1 million pounds per week in the second quarter of 2025, supported by increased activity in TSLOTSTM for modular aluminum framing systems and renewable energy applications. Open orders at the end of the second quarter of 2026 were 23 million pounds versus 25 million pounds at the end of the second quarter of 2025 and 19 million pounds at the end of the first quarter of 2026. This level of open orders falls within the normalized level that is typically associated with stable demand patterns and healthy market dynamics. Market conditions remain impacted by U.S. trade policy. Following the increase in Section 232 aluminum tariffs to 50% in June 2025, Bonnell Aluminum experienced a decline in new orders of approximately 20%. Changes to the tariff structure announced in April 2026, which include measures intended to close the loophole that allowed undervalued aluminum extrusions to enter the U.S., appear to be contributing to a more balanced competitive environment. Tariffs and duties continue to be passed through to customers under the Company’s metal‑cost adjustment mechanism. The Company implemented additional price increases in the first quarter of 2026 and the third quarter of 2025 to offset tariff‑related costs not covered by that mechanism. EBITDA from ongoing operations in the second quarter of 2026 increased $5.2 million versus the second quarter of 2025, primarily due to: A $5.2 million increase in contribution margin (net sales less variable costs) associated with: Higher fixed costs primarily associated with wage and benefits increases ($0.5 million). Higher selling, general and administrative ("SG&A") expenses primarily associated with incentive compensation expense ($0.9 million). Lower other expense for lower employee-related medical costs associated with medical claims ($1.5 million). The Company expects the benefit associated with FIFO inventory positions and metal price trends to be substantially neutralized during the third quarter. First Six Months of 2026 Results vs. First Six Months of 2025 Results Net sales in the first six months of 2026 increased 21.8% versus the first six months of 2025 primarily due to the pass-through of higher metal costs, partially offset by lower sales volume. Sales volume in the first six months of 2026 decreased 6.5% versus the first six months of 2025. EBITDA from ongoing operations in the first six months of 2026 increased $7.8 million in comparison to the first six months of 2025 primarily due to: A $7.2 million increase in contribution margin associated with: Higher fixed costs primarily associated with wage and benefits-related expense increases ($1.1 million). Higher SG&A expenses primarily associated with higher incentive compensation, partially offset by lower routine environmental compliance expense ($0.4 million). Lower other expense for lower employee-related medical costs associated with medical claims ($2.1 million). Conflict-driven disruptions in the Strait of Hormuz beginning in March 2026 have constrained shipments and raised costs, contributing to historically low U.S. inventory levels. In response to ongoing geopolitical tensions in the Middle East and resulting contraction of the global aluminum market, we have proactively diversified Bonnell Aluminum’s supply chain portfolio to support long-term stability. Through the remainder of 2026, we have successfully secured nearly all of Bonnell Aluminum’s aluminum supply requirements and are proactively reviewing Bonnell Aluminum’s 2027 supply needs and sources to minimize exposure to the Middle East. Simultaneously, we are optimizing billet casting operations at our Carthage, TN, and Newnan, GA, facilities to overcome localized production constraints. These strategic shifts in our supply chain and internal capabilities continue to strengthen our operational resilience, positioning Bonnell Aluminum to meet customer demand. Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk in the Second Quarter Form 10-Q for additional information on aluminum price trends. Projected Capital Expenditures and Depreciation & Amortization Capital expenditures for Bonnell Aluminum are projected to be $20 million in 2026, including $4 million for productivity projects and $16 million for capital expenditures required to support continuity of operations. Depreciation expense is projected to be $14 million in 2026. Amortization expense is projected to be $2 million in 2026. The Company anticipates capital spending for Bonnell Aluminum to increase from the levels of the past two years and return to a pattern more closely aligned with depreciation and amortization, consistent with long-term historical patterns. This approach supports ongoing maintenance and efficiency initiatives while maintaining disciplined capital allocation. High Performance Films A summary of results for High Performance Films is provided below: Second Quarter 2026 Results vs. Second Quarter 2025 Results Net sales in the second quarter of 2026 increased 4.2% versus the second quarter of 2025 due to an increase in sales volume for surface protection films, partially offset by unfavorable mix in surface protection films. Surface Protection sales volume increased 17.8% in the second quarter of 2026 versus the second quarter of 2025. Volume for advanced packaging films, which are predominantly manufactured and sold in the U.S. and used in consumer staple items, decreased 17.8% in the second quarter of 2026 versus the second quarter of 2025. EBITDA from ongoing operations in the second quarter of 2026 decreased $0.9 million versus the second quarter of 2025, primarily due to: A decrease in contribution margin of $0.7 million resulting from: Higher fixed costs associated with employee-related compensation ($0.4 million). Lower SG&A expense associated with lower employee-related compensation ($0.3 million). A foreign currency transaction loss of $0.3 million in the second quarter of 2026 versus no gain or loss in the second quarter of 2025. There have been significant cyclical swings in the sales volume and EBITDA from ongoing operations for High Performance Films since the beginning of 2022, largely due to the unprecedented downturn in the display industry during the second half of 2022 and first half of 2023. EBITDA from ongoing operations for the past 4.5 years has averaged approximately $5.0 million per quarter. First Six Months of 2026 Results vs. First Six Months of 2025 Results Net sales in the first six months of 2026 decreased 5.9% compared to the first six months of 2025 primarily due to unfavorable mix in surface protection films. Surface Protection sales volume decreased 0.8% in the first six months of 2026 versus the first six months of 2025. Sales volume for surface protection films declined in the first six months of 2026 versus the first six months of 2025 as expected due to a significant customer’s inventory correction and scheduled maintenance activity for another customer in the first six months of 2026. Volume for advanced packaging films decreased 6.9% in the first six months of 2026 versus the first six months of 2025 primarily due to lower margin product. The top four customers comprised 85% and 86% of the net sales for High Performance Films for the first six months of 2026 and first six months of 2025, respectively. EBITDA from ongoing operations in the first six months of 2026 decreased $3.4 million versus the first six months of 2025, primarily due to: A decrease in contribution margin of $3.1 million resulting from: Higher fixed costs primarily associated with employee-related compensation ($0.4 million). Lower SG&A expense associated with lower employee-related compensation ($0.6 million). A foreign currency transaction loss of $0.6 million in the first six months of 2026 versus no gain or loss in the first six months of 2025. Although the conflict-driven disruptions in the Strait of Hormuz beginning in March 2026 have caused an increase to resin costs, High Performance Films maintains pass-through mechanisms with customers and has not experienced supply issues to date. Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk in the Second Quarter Form 10-Q for additional information on resin price trends. Projected Capital Expenditures and Depreciation & Amortization Capital expenditures for High Performance Films are projected to be $2 million in 2026, including $1 million for productivity projects and $1 million for capital expenditures required to support continuity of current operations. Depreciation expense is projected to be $4 million in 2026. There is no amortization expense for High Performance Films. Corporate Expenses, Interest, Taxes and Other Corporate expenses, net in the first six months of 2026 decreased $2.7 million compared to the first six months of 2025 due to lower professional fees associated with business development activities ($4.1 million), partially offset by a gain on the sale of corporate-owned land in 2025 ($1.5 million). The Company does not expect significant expenses from business development activities in 2026. Interest expense was $0.8 million in the first six months of 2026 in comparison to $2.8 million in the first six months of 2025. The decrease was primarily due to the write-off of deferred financing fees related to Amendment No. 5 to the Second Amended and Restated Credit Agreement of $0.8 million during the first six months of 2025, lower weighted average total debt outstanding and lower interest rates. The effective tax rate from continuing operations in the first six months of 2026 was 19.9% compared to 38.4% in the first six months of 2025. The effective tax rate for the first six months of 2026 varied from the statutory rate of 21% due to research and development tax credits while the effective tax rate for the first six months of 2025 varied from the statutory rate due to a mix of lower pre-tax income and higher nondeductible discrete items as a percentage of pre-tax income. See Note (d) to Financial Tables in this Press Release for information related to the effective tax rate from ongoing operations. Debt, Financial Leverage and Debt Covenants Total debt was $46.0 million at June 30, 2026, and $35.1 million at December 31, 2025. Cash and cash equivalents were $17.2 million at June 30, 2026, and $6.7 million at December 31, 2025. Net debt (total debt in excess of cash and cash equivalents), a non-GAAP financial measure, was $28.8 million at June 30, 2026, and $28.4 million at December 31, 2025. See Note (e) to the Financial Tables in this Press Release for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure. Total debt increased $10.9 million and net debt increased $0.4 million in the first six months of 2026 versus the end of 2025 due to strong cash generation from consolidated EBITDA from ongoing operations of $25.8 million, partially offset by increased working capital, reflecting significantly higher metal and higher resin costs, and higher capital expenditures. As of June 30, 2026, the Company was in compliance with all covenants under its $125 million asset-based credit agreement, which matures May 6, 2030 (the "ABL Facility"). Availability for borrowings under the ABL Facility is governed by a borrowing base, determined by the application of specified advance rates against eligible assets, including a portion of trade accounts receivable, inventory, cash and cash equivalents, and owned machinery and equipment. As of June 30, 2026, funds available to borrow under the ABL Facility were approximately $76 million. The median daily liquidity under the ABL Facility during the second quarter of 2026 was $76 million compared with a median of $87 million during the first quarter of 2026. Refer to Note 7 to the Company’s Consolidated Financial Statements in Part IV, Item 15 of Tredegar’s Annual Report on Form 10-K for the year ended December 31, 2025, for additional details on the primary debt covenants. FORWARD-LOOKING AND CAUTIONARY STATEMENTS Some of the information contained in this press release may constitute "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. When the Company uses the words "believe," "estimate," "anticipate," "appear to," "expect," "project," "plan," "likely," "may" and similar expressions, it does so to identify forward-looking statements. Such statements are based on the Company's then current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. Factors that could cause actual results to differ materially from expectations include, without limitation, the following: the impact of trade policies and prolonged geopolitical conflicts on raw materials and supply chain constraints; the impact of macroeconomic factors, such as inflation, interest rates and recession risks; an increase in the operating costs incurred by the Company’s business units, including, for example, the cost of raw materials and energy; the risks associated with our cost-reduction and operational-improvement initiatives, including our ability to achieve the expected benefits within the expected timeframe or at all; failure to continue to attract, develop and retain certain key officers or employees; disruptions to the Company’s manufacturing facilities, including those resulting from labor shortages; an information technology system failure or breach; risks of doing business in countries outside the U.S. that affect our international operations; the impact of public health epidemics on employees, production and the global economy; political, economic and regulatory factors concerning the Company’s products; the impact of the imposition of tariffs and sanctions on imported aluminum ingot used by Bonnell Aluminum; inability to replace aging equipment and information technology systems with necessary capital expenditures; inability to develop, efficiently manufacture and deliver new products at competitive prices; loss of sales to significant customers on which the Company’s business is highly dependent; inability to achieve sales to new customers to replace lost business; failure of the Company’s customers to achieve success or maintain market share; noncompliance with any of the financial and other restrictive covenants in the ABL Facility; failure to protect our intellectual property rights; and the other factors discussed in the reports Tredegar files with or furnishes to the Securities and Exchange Commission (the "SEC") from time to time, including the risks and important factors set forth in additional detail in Part I, Item 1A. Risk Factors of the Company’s Form 10-K for the year ended December 31, 2025. Readers are urged to review and consider carefully the disclosures Tredegar makes in its filings with the SEC. Tredegar does not undertake, and expressly disclaims any duty, to update any forward-looking statement made in this press release to reflect any change in management’s expectations or any change in conditions, assumptions or circumstances on which such statements are based, except as required by applicable law. To the extent that the financial information portion of this press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), it also presents both the most directly comparable financial measures calculated and presented in accordance with GAAP and a quantitative reconciliation of the difference between any such non-GAAP measures and such comparable GAAP financial measures. Reconciliations of non-GAAP financial measures are provided in the Notes to the Financial Tables included with this press release and can also be found within "Presentations" in the "Investors" section of our website, www.tredegar.com. Tredegar uses its website as a channel of distribution of material company information. Financial information and other material information regarding Tredegar is posted on and assembled in the "Investors" section of its website. Tredegar Corporation is an industrial manufacturer with two primary businesses: custom aluminum extrusions for the North American building & construction, automotive and specialty end-use markets and films for highly engineered surface protection applications in the global electronics industry and advanced packaging. With approximately 1,800 employees, the Company operates manufacturing facilities in North America and Asia. Notes to the Financial Tables (Unaudited) (a) Tredegar’s presentation of net income (loss) and diluted earnings (loss) per share from ongoing operations are non-GAAP financial measures that exclude the effects of gains or losses associated with plant shutdowns, asset impairments and restructurings, gains or losses from the sale of assets, goodwill impairment charges, discontinued operations, net periodic benefit cost for the frozen defined benefit pension plan prior to termination and other items (which includes gains and losses for an investment accounted for under the fair value method) which have been presented separately and removed from net income (loss) from continuing operations and diluted earnings (loss) per share as reported under GAAP. Net income (loss) and diluted earnings (loss) per share from ongoing operations are key financial and analytical measures used by management to gauge the operating performance of Tredegar’s ongoing operations. They are not intended to represent the stand-alone results for Tredegar’s ongoing operations under GAAP and should not be considered as an alternative to net income (loss) from continuing operations or earnings (loss) per share as defined by GAAP. They exclude items that management believes do not relate to Tredegar’s ongoing operations. A reconciliation to net income (loss) and diluted earnings (loss) per share from ongoing operations for the three and six months ended June 30, 2026, and 2025 is shown below: (b) EBITDA (earnings before interest, taxes, depreciation and amortization) from ongoing operations is the key segment profitability metric used by the Company’s chief operating decision maker ("CODM") to assess segment financial performance. The Company uses sales less freight ("net sales") as its measure of revenues from external customers at the segment level. For more business segment information, see Note 9 to the Company’s Condensed Consolidated Financial Statements in the Second Quarter Form 10-Q. EBIT (earnings before interest and taxes) from ongoing operations is a non-GAAP financial measure included in the accompanying tables and the reconciliation of segment financial information to consolidated results for the Company in the net sales and EBITDA from ongoing operations by segment statements. It is not intended to represent the stand-alone results for Tredegar’s ongoing operations under GAAP and should not be considered as an alternative to net income (loss) as defined by GAAP. The Company believes that EBIT is a widely understood and utilized metric that is meaningful to certain investors and that including this financial metric in the reconciliation of management’s performance metric, EBITDA from ongoing operations, provides useful information to those investors that primarily utilize EBIT to analyze the Company’s core operations. (c) Gains and losses associated with plant shutdowns, asset impairments, restructurings and other items for the three and six months ended June 30, 2026, and 2025 detailed below are shown in the statements of net sales and EBITDA from ongoing operations by segment and are included in "Asset impairments and costs associated with exit and disposal activities, net of adjustments" in the condensed consolidated statements of income, unless otherwise noted. (d) For discussion on Tredegar’s presentation of net income (loss) from ongoing operations, please refer to Note (a) above. Reconciliations of the pre-tax and post-tax balances attributed to net income (loss) from ongoing operations for the three and six months ended June 30, 2026, and 2025 are shown below in order to show the impact on the effective tax rate: (e) Net debt is calculated as follows: Net debt is not intended to represent total debt as defined by GAAP. Net debt is utilized by management in evaluating the Company’s financial leverage and equity valuation, and management believes that investors also may find net debt to be helpful for the same purposes. (f) Tredegar’s presentation of Consolidated EBITDA from ongoing operations is a non-GAAP financial measure that excludes the effects of gains or losses associated with plant shutdowns, asset impairments and restructurings, gains or losses from the sale of assets, goodwill impairment charges, discontinued operations, net periodic benefit cost for the frozen defined benefit pension plan and other items (which includes gains and losses for an investment accounted for under the fair value method). Consolidated EBITDA from ongoing operations also excludes depreciation & amortization, stock option-based compensation costs, interest and income taxes. Consolidated EBITDA is a key financial and analytical measure used by management to gauge the operating performance of Tredegar’s ongoing operations. It is not intended to represent the stand-alone results for Tredegar’s ongoing operations under GAAP and should not be considered as an alternative to net income (loss) or earnings (loss) per share as defined by GAAP. It excludes items that management believes do not relate to Tredegar’s ongoing operations. A reconciliation of Consolidated EBITDA from ongoing operations for the three and six months ended June 30, 2026, and 2025 is shown below: View source version on businesswire.com: https://www.businesswire.com/news/home/20260806204724/en/ Contacts Tredegar CorporationNeill Bellamy, 804-330-1211

Shares of Tredegar Corporation TG have declined 19.6% since the company reported results for the quarter ended March 31, 2026, underperforming the S&P 500 index’s 1.4% growth during the same period. Over the past month, the stock has fallen 6.5% against a 6.8% increase for the broader market. Tredegar reported first-quarter 2026 net income from continuing operations of 15 cents per share, which surged from 2 cents per share a year earlier. Sales of $186.5 million denoted a 13.2% rise from $164.7 million in the year-ago quarter. Net income from continuing operations rose sharply to $5.1 million from $0.7 million a year earlier. Consolidated EBITDA from ongoing operations edged up to $11.7 million from $11.5 million last year. Tredegar Corporation price-consensus-eps-surprise-chart | Tredegar Corporation Quote Tredegar’s Aluminum Extrusions segment was the primary contributor to first-quarter growth. Net sales for the business climbed 19.3% year over year to $159.5 million, despite a 7.3% decline in sales volume. EBITDA from ongoing operations increased 27.5% to $11.7 million. The company attributed the higher revenues mainly to the pass-through of elevated metal costs, while profitability benefited from pricing increases and improved material yields. Pricing actions contributed $4.6 million to contribution margin improvement, while lower manufacturing costs tied to material yield also aided results. However, weaker volume, higher labor rates, maintenance expenses, utilities and freight costs partially offset those gains. Within end markets, nonresidential building and construction volume declined 6%, while automotive and transportation volume dropped 19% amid rising cost pressures. Electrical shipments within the specialty market fell 45% after federal tax credits for solar panels expired. Offsetting some weakness, TSLOTS shipments rose 70%, driven by demand linked to data-containment and data-center infrastructure. Management also noted that net new orders decreased 20% year over year to an average of 2.8 million pounds per week, reflecting softer U.S. demand and continued pressure from undervalued imported extrusions. Open orders stood at 19 million pounds at quarter-end, down from 25 million pounds a year ago. Tredegar’s High Performance Films business reported weaker results as customer inventory adjustments and maintenance activity weighed on demand. Net sales declined 15.7% year over year to $21.5 million, while sales volume fell 6.9%. EBITDA from ongoing operations decreased 32.5% to $5.1 million.Surface Protection sales volume dropped 17.5% due to a significant customer inventory correction and scheduled maintenance at another customer. In contrast, advanced packaging films volume increased 5.6%, supported by demand for consumer staple-related products. The EBITDA decline was primarily driven by lower volume and unfavorable product mix in Surface Protection films, though some cost improvements and productivity gains partly mitigated the impact. The company said tariff actions had not yet adversely affected customer demand in the segment, though it acknowledged uncertainty surrounding consumer electronics markets. President and CEO Arijit “Bapi” DasGupta said Bonnell Aluminum delivered a solid quarter despite challenging market conditions, tariff-related cost pressures and softer order trends following the increase in Section 232 aluminum tariffs. He added that both business units continued to benefit from long-standing customer relationships and differentiated offerings. Tredegar also highlighted geopolitical disruptions in the Strait of Hormuz beginning in March 2026, which tightened aluminum supply and increased costs. The company said it has shifted nearly all aluminum sourcing previously tied to the Middle East toward North American suppliers to strengthen supply chain stability. Tredegar projects 2026 capital expenditures of $20 million for Aluminum Extrusions and $2 million for High Performance Films. The Aluminum Extrusions investments include productivity projects and maintenance spending intended to support continuity of operations. The company ended the quarter with total debt of $46.3 million, up from $35.1 million at the end of 2025, while cash and cash equivalents rose to $15.6 million from $6.7 million. Net debt increased to $30.7 million from $28.4 million, mainly due to higher working capital needs and raw material stocking amid geopolitical uncertainty. Corporate expenses declined $2.9 million year over year, primarily due to lower professional fees related to business development activities. Interest expense also fell to $0.4 million from $1 million due to lower debt balances and reduced interest rates. The company continued to report proceeds related to the prior divestiture of the Terphane business, recording $0.6 million in proceeds during the quarter Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tredegar Corporation (TG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delivered profitable first quarter 2026 results, with net income from continuing operations of $5.1 million, or $0.15 per diluted share, for the first quarter of 2026 compared to $0.7 million, or $0.02 per diluted share, for the first quarter of 2025. Net income from ongoing operations, which excludes special items, was $5.0 million, or $0.15 per diluted share, for the first quarter of 2026 compared to $3.6 million, or $0.10 per diluted share, for the first quarter of 2025. Consolidated earnings before interest, taxes, depreciation and amortization ("Consolidated EBITDA") from ongoing operations was $11.7 million for the first quarter of 2026 compared to $11.5 million for the first quarter of 2025. First quarter 2026 performance driven primarily by Aluminum Extrusions: Earnings before interest, taxes, depreciation and amortization ("EBITDA") from ongoing operations for Aluminum Extrusions was $11.7 million in the first quarter of 2026 versus $9.2 million in the first quarter of 2025 and versus $15.7 million in the fourth quarter of 2025. EBITDA from ongoing operations for High Performance Films was $5.1 million in the first quarter of 2026 versus $7.5 million in the first quarter of 2025 and versus $5.7 million in the fourth quarter of 2025. RICHMOND, Va., May 08, 2026--(BUSINESS WIRE)--Tredegar Corporation (NYSE:TG, also the "Company" or "Tredegar") today reported first quarter financial results for the period ended March 31, 2026. Arijit (Bapi) DasGupta, Tredegar’s president and chief executive officer, said, "Bonnell had a good quarter in the face of challenging market conditions, tariff‑driven cost pressures, and softer net new orders after the mid‑year 2025 Section 232 tariff increase. Their ability to improve under these circumstances reinforces our confidence in the business and its long‑term trajectory. In High Performance Films, sales volume for surface protection films softened as expected due to a significant customer’s inventory correction and scheduled maintenance activity for another customer." He continued, "Both of our business units continue to lead with deep, long‑standing customer relationships and differentiated value propositions. As we continue to bring the organization together as One Tredegar, we continue to focus on operational excellence and productivity improvements and see substantial opportunities to leverage best practices across the enterprise, enhance efficiency, reduce costs, and strengthen profitability, positioning the company for long‑term value creation." A reconciliation of net income (loss) from continuing operations, a financial measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), to net income (loss) from ongoing operations and Consolidated EBITDA, both non-GAAP financial measures, for the three months ended March 31, 2026 and 2025, is provided in Notes (a) and (f) to the Financial Tables in this press release. OPERATIONS REVIEW Aluminum Extrusions A summary of results for Aluminum Extrusions is provided below: First Quarter 2026 Results vs. First Quarter 2025 Results Net sales (sales less freight) in the first quarter of 2026 increased 19.3% versus the first quarter of 2025 primarily due to the pass-through of higher metal costs, partially offset by lower volume. Sales volume in the first quarter of 2026 decreased 7.3% versus the first quarter of 2025 and 5.4% versus the fourth quarter of 2025. The Company reported a 6% decline in nonresidential building and construction volume, driven by higher costs and ongoing economic uncertainty. Within the specialty market, electrical shipments decreased 45% following the expiration of federal tax credits for solar panels. Also in the specialty market, TSLOTS™ shipments, representing approximately 13% of total volume, increased 70%, supported by increased demand for data‑containment and data‑center infrastructure. Automotive and transportation volume declined 19% as manufacturers continued to face rising cost pressures. Refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2026 ("First Quarter Form 10-Q") for sales volume by end use market for the three months ended March 31, 2026 and 2025, and the three months ended December 31, 2025. Net new orders in the first quarter of 2026 decreased 20% versus the first quarter of 2025 from an average of 3.4 million pounds per week in the first quarter of 2025 to 2.8 million pounds per week in the first quarter of 2026. The Company believes this year-over-year decline reflects both softer U.S. demand and the continued undervaluation of imported extrusions, attributed to the tariff structure associated with the increase of Section 232 tariffs on aluminum products to 50%, discussed below. Open orders at the end of the first quarter of 2026 were 19 million pounds versus 25 million pounds at the end of the first quarter of 2025 and 17 million pounds at the end of the fourth quarter of 2025. This level of open orders falls below the normalized level that is typically associated with stable demand patterns and healthy market dynamics. Effective June 4, 2025, Section 232 tariffs on aluminum products increased to 50%, following a prior increase from 10% to 25% in March 2025, with the United Kingdom as the only exception. In April 2026, federal policymakers updated several elements of Section 232, including measures intended to close the loophole that allowed undervalued aluminum extrusions to enter the U.S. market. While these changes are expected to help restore fair competition for domestic producers, U.S. extruders have emphasized the need for clear, uniform, and predictable enforcement to avoid near‑term market disruption. The Company continues to participate in a coalition of downstream aluminum manufacturers that engages with policymakers on issues affecting the competitiveness of the U.S. aluminum extrusion industry. Tariffs and duties continue to be passed through to customers under the Company’s metal‑cost adjustment mechanism. The Company implemented additional price increases in the first quarter of 2026 and the third quarter of 2025 to offset tariff‑related costs not covered by that mechanism. EBITDA from ongoing operations in the first quarter of 2026 increased $2.5 million versus the first quarter of 2025, primarily due to: A $2.0 million increase in contribution margin (net sales less variable costs) associated with: Pricing increases ($4.6 million) and lower manufacturing costs associated with material yield ($2.0 million favorable in the first quarter of 2026 versus $0.1 million unfavorable in the first quarter of 2025), partially offset by lower volume ($2.1 million), higher labor rates ($0.7 million), unfavorable labor productivity ($0.6 million), higher maintenance and supply expense ($0.8 million), higher freight expense ($0.4 million), higher utilities ($0.5 million), and higher die expense ($0.8 million). The timing of the flow-through under the first-in, first-out ("FIFO") method of aluminum raw materials costs, which were previously acquired in a quickly changing commodity pricing environment, causing a temporary mismatch in the change in the cost of raw materials included in variable costs and the pass through to customers included in sales, resulted in a benefit of $2.9 million in the first quarter of 2026 versus a benefit of $1.7 million in the first quarter of 2025. Higher fixed costs primarily associated with wage increases ($0.5 million). Lower selling, general and administrative ("SG&A") expenses primarily associated with lower employee-related compensation and lower routine environmental compliance expense ($0.5 million). Lower other expense for employee-related medical costs associated with medical claims ($0.6 million). Conflict-driven disruptions in the Strait of Hormuz beginning in March 2026 have constrained shipments and raised costs, contributing to historically low U.S. inventory levels. In response to recent geopolitical tensions in the Middle East and resulting contraction of the global aluminum market, we have proactively diversified our supply chain portfolio to support long-term stability. Through the third quarter of 2026, we have successfully transitioned nearly all of our aluminum supply previously sourced from the Middle East to North American partners. Simultaneously, we are optimizing billet casting operations at our Carthage, TN, and Newnan, GA facilities to overcome localized production constraints. These strategic shifts in our supply chain and internal capabilities continue to strengthen our operational resilience, positioning the Company to meet customer demand through 2026. Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk in the First Quarter Form 10-Q for additional information on aluminum price trends. Projected Capital Expenditures and Depreciation & Amortization Capital expenditures for Bonnell Aluminum are projected to be $20 million in 2026, including $4 million for productivity projects and $16 million for capital expenditures required to support continuity of operations. Depreciation expense is projected to be $14 million in 2026. Amortization expense is projected to be $2 million in 2026. The Company anticipates capital spending to increase from the levels of the past two years and return to a pattern more closely aligned with depreciation and amortization, consistent with long-term historical patterns. This approach supports ongoing maintenance and efficiency initiatives while maintaining disciplined capital allocation. High Performance Films A summary of results for High Performance Films is provided below: First Quarter 2026 Results vs. First Quarter 2025 Results Net sales in the first quarter of 2026 decreased 15.7% versus the first quarter of 2025 due to a decrease in sales volume and unfavorable mix in surface protection films. Surface Protection sales volume decreased 17.5% in the first quarter of 2026 versus the first quarter of 2025. Sales volume for surface protection films declined in the first quarter of 2026 as expected due to a significant customer’s inventory correction and scheduled maintenance activity for another customer. Volume for advanced packaging films, which are predominantly manufactured and sold in the U.S. and used in consumer staple items, increased 5.6% in the first quarter of 2026 versus the first quarter of 2025. The top four customers comprised 87% and 91% of the net sales for High Performance Films for the first three months of 2026 and first three months of 2025, respectively. Surface Protection has not experienced an adverse impact on customer demand related to tariff actions; however, the situation remains fluid and the impact on consumer electronics is uncertain. EBITDA from ongoing operations in the first quarter of 2026 decreased $2.4 million versus the first quarter of 2025, primarily due to: A decrease in contribution margin of $2.4 million resulting from: A $2.8 million decrease from Surface Protection associated with lower volume and unfavorable mix ($3.4 million), partially offset by cost improvements and favorable productivity ($0.6 million). A $0.4 million increase from advanced packaging films primarily due to higher volume, favorable mix and unfavorable pricing ($0.5 million), partially offset by unfavorable productivity ($0.1 million). Lower SG&A expense associated with lower employee-related compensation ($0.3 million). A foreign currency transaction loss of $0.3 million in the first quarter of 2026 versus no gain or loss in the first quarter of 2025. Although the conflict-driven disruptions in the Strait of Hormuz beginning in March 2026 have caused an increase to resin costs, High Performance Films maintains pass-through mechanisms with customers and has not experienced supply issues to date. Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk in the First Quarter Form 10-Q for additional information on resin price trends. Projected Capital Expenditures and Depreciation & Amortization Capital expenditures for High Performance Films are projected to be $2 million in 2026, including $1 million for productivity projects and $1 million for capital expenditures required to support continuity of current operations. Depreciation expense is projected to be $4 million in 2026. There is no amortization expense for High Performance Films. Corporate Expenses, Interest, Taxes and Other Corporate expenses, net in the first three months of 2026 decreased $2.9 million compared to the first three months of 2025 due to lower professional fees associated with business development activities ($2.9 million). The Company does not expect significant expenses from business development activities in 2026. Interest expense was $0.4 million in the first three months of 2026 in comparison to $1.0 million in the first three months of 2025. The decrease was primarily due to lower weighted average total debt outstanding and lower interest rates. The effective tax rate used to compute income taxes (benefit) from continuing operations in the first three months of 2026 was 16.9% compared to 46.2% in the first three months of 2025. The effective tax rate for the first three months of 2026 varies from the statutory rate of 21% due to research and development tax credits while the effective tax rate for the first three months of 2025 varies from the statutory rate due to a mix of lower pre-tax income and higher nondeductible discrete items as a percentage of pre-tax income. See Note (d) to Financial Tables in this Press Release for information related to the effective tax rate from ongoing operations. Debt, Financial Leverage and Debt Covenants Total debt was $46.3 million at March 31, 2026 and $35.1 million at December 31, 2025. Cash and cash equivalents were $15.6 million at March 31, 2026 and $6.7 million at December 31, 2025. Net debt (total debt in excess of cash and cash equivalents), a non-GAAP financial measure, was $30.7 million at March 31, 2026 and $28.4 million at December 31, 2025. See Note (e) to the Financial Tables in this Press Release for a reconciliation of net debt to the most directly comparable GAAP financial measure. Total debt increased $11.2 million and net debt increased $2.3 million in the first three months of 2026 versus the end of 2025 due to higher net working capital of $9.5 million from seasonally low levels at the end of last year, higher metal costs, and raw material stocking as a result of the geopolitical uncertainty impacting aluminum‑related supply chains. As of March 31, 2026, the Company was in compliance with all covenants under its $125 million asset-based credit agreement, which matures May 6, 2030 (the "ABL Facility"). Availability for borrowings under the ABL Facility is governed by a borrowing base, determined by the application of specified advance rates against eligible assets, including a portion of trade accounts receivable, inventory, cash and cash equivalents, and owned machinery and equipment. As of March 31, 2026, funds available to borrow under the ABL Facility were approximately $76 million. The median daily liquidity under the ABL Facility during the first quarter of 2026 was $87 million compared with a median of $82 million during the fourth quarter of 2025. Refer to Note 7 to the Company’s Consolidated Financial Statements in Part IV, Item 15 of Tredegar’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional details on the primary debt covenants. FORWARD-LOOKING AND CAUTIONARY STATEMENTS Some of the information contained in this press release may constitute "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. When the Company uses the words "believe," "estimate," "anticipate," "appear to," "expect," "project," "plan," "likely," "may" and similar expressions, it does so to identify forward-looking statements. Such statements are based on the Company's then current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. Factors that could cause actual results to differ materially from expectations include, without limitation, the following: the impact of trade policies and prolonged geopolitical conflicts on raw materials and supply chain constraints; the impact of macroeconomic factors, such as inflation, interest rates and recession risks; an increase in the operating costs incurred by the Company’s business units, including, for example, the cost of raw materials and energy; noncompliance with any of the financial and other restrictive covenants in the ABL Facility; failure to continue to attract, develop and retain certain key officers or employees; disruptions to the Company’s manufacturing facilities, including those resulting from labor shortages; an information technology system failure or breach; risks of doing business in countries outside the U.S. that affect our international operations; the impact of public health epidemics on employees, production and the global economy; political, economic and regulatory factors concerning the Company’s products; the impact of the imposition of tariffs and sanctions on imported aluminum ingot used by Bonnell Aluminum; inability to replace aging equipment and information technology systems with necessary capital expenditures; inability to develop, efficiently manufacture and deliver new products at competitive prices; loss of sales to significant customers on which the Company’s business is highly dependent; inability to achieve sales to new customers to replace lost business; failure of the Company’s customers to achieve success or maintain market share; failure to protect our intellectual property rights; and the other factors discussed in the reports Tredegar files with or furnishes to the Securities and Exchange Commission (the "SEC") from time to time, including the risks and important factors set forth in additional detail in Part I, Item 1A. Risk Factors of the Company’s Form 10-K for the year ended December 31, 2025. Readers are urged to review and consider carefully the disclosures Tredegar makes in its filings with the SEC. Tredegar does not undertake, and expressly disclaims any duty, to update any forward-looking statement made in this press release to reflect any change in management’s expectations or any change in conditions, assumptions or circumstances on which such statements are based, except as required by applicable law. To the extent that the financial information portion of this press release contains non-GAAP financial measures, it also presents both the most directly comparable financial measures calculated and presented in accordance with GAAP and a quantitative reconciliation of the difference between any such non-GAAP measures and such comparable GAAP financial measures. Reconciliations of non-GAAP financial measures are provided in the Notes to the Financial Tables included with this press release and can also be found within "Presentations" in the "Investors" section of our website, www.tredegar.com. Tredegar uses its website as a channel of distribution of material company information. Financial information and other material information regarding Tredegar is posted on and assembled in the "Investors" section of its website. Tredegar Corporation is an industrial manufacturer with two primary businesses: custom aluminum extrusions for the North American building & construction, automotive and specialty end-use markets and films for highly engineered surface protection applications in the global electronics industry and advanced packaging. With approximately 1,700 employees, the Company operates manufacturing facilities in North America and Asia. Notes to the Financial Tables (Unaudited) Net debt is not intended to represent total debt as defined by GAAP. Net debt is utilized by management in evaluating the Company’s financial leverage and equity valuation, and management believes that investors also may find net debt to be helpful for the same purposes. Net leverage ratio is a non-GAAP financial measure. It is not intended to represent the stand-alone results for Tredegar under GAAP and should not be considered as an alternative to net income (loss) and total debt as defined by GAAP. Net leverage ratio is utilized by management in evaluating the Company’s financial leverage, and management believes that investors also may find the net leverage ratio to be helpful for the same purposes. In addition, earnings before interest, taxes, depreciation and amortization as defined in the ABL Facility ("Credit EBITDA") is provided below. View source version on businesswire.com: https://www.businesswire.com/news/home/20260508085368/en/ Contacts Tredegar Corporation Neill Bellamy, 804-330-1211

Shares of Tredegar Corporation TG have underperformed the broader market following the release of its fourth-quarter results. The stock has declined 3.4% since the earnings announcement for the period ended Dec. 31, 2025, compared with a 2.2% decline in the S&P 500 over the same period. Over a longer horizon, the shares fell 6.6% in the past month, lagging the S&P 500’s 3.4% decline. Tredegar reported adjusted net income from ongoing operations of 32 cents per share for the fourth quarter of 2025, a sharp improvement from 6 cents per share. Revenues also increased, with total sales climbing to $184.1 million from $154 million in the fourth quarter of 2024, representing growth of roughly 19.5% year over year. The company reported net income from continuing operations of $14.5 million against a loss of $7.3 million in the year-ago quarter. On an adjusted basis, net income from ongoing operations rose to $11 million from $2 million. Tredegar Corporation price-consensus-eps-surprise-chart | Tredegar Corporation Quote Tredegar’s Aluminum Extrusions segment was the primary growth driver. Net sales in this business rose 26.2% year over year to $154.5 million, supported by a 3.7% increase in sales volume and higher metal pass-through pricing. EBITDA from ongoing operations surged 61.4% to $15.7 million, reflecting improved contribution margins and pricing gains. Volume trends were mixed across end markets. Non-residential building and construction shipments increased 8.2%, while automotive volumes rose 7.7%. However, residential construction declined 8.3%, and specialty products were slightly lower. In contrast, the High Performance Films segment (previously known as PE Films) showed weaker performance. Net sales declined 10% year over year to $23.7 million, primarily due to lower surface protection film volumes. EBITDA from ongoing operations fell 25% to $5.7 million, reflecting unfavorable product mix and pricing pressures, partially offset by cost efficiencies. Management highlighted strong execution in Aluminum Extrusions despite challenging market conditions. CEO Arijit DasGupta noted that higher volumes and improved EBITDA were achieved even as tariff-related cost pressures and declining order trends weighed on the broader market. For High Performance Films, management characterized performance as solid relative to an exceptionally strong prior year but acknowledged moderating demand in surface protection films. The company emphasized continued cash flow generation and operational discipline within the segment. Several factors influenced the quarter’s results. In Aluminum Extrusions, higher contribution margins were driven by favorable pricing, increased volumes, and improved material yield. Additionally, accounting effects such as favorable FIFO timing and LIFO adjustments contributed to profitability gains. However, external pressures remained significant. The increase in Section 232 tariffs to 50% contributed to a 23.6% decline in net new orders in the second half of 2025, reflecting weaker demand and limited domestic market share gains against imports. In High Performance Films, declining surface protection volumes, unfavorable mix and pricing pressures weighed on results. Cyclical dynamics in the display industry and customer concentration — where the top four customers accounted for 88% of sales — also contributed to volatility. For the full year, Tredegar reported adjusted net income from ongoing operations increased to $25.7 million (74 cents per share) from $17.2 million (50 cents per share). Total sales rose to $722.9 million from $598 million in 2024, representing an increase of about 20.9% year over year. Capital allocation plans indicate continued investment, with projected 2026 capital expenditures of $20 million for Aluminum Extrusions and $3 million for High Performance Films, aimed at productivity improvements and operational continuity. Tredegar strengthened its balance sheet during the year, reducing total debt to $35.1 million from $61.9 million at the end of 2024, with net debt falling to $28.4 million. This improvement was driven by cash generation and proceeds from prior divestitures, including the post-closing settlement related to the sale of Terphane. Additionally, the company completed the termination of its other post-retirement benefits (OPEB) plan in October 2025, recognizing a gain in the quarter. It also continued restructuring and cost optimization initiatives across operations, including efforts to improve supply chain efficiency and reduce administrative costs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tredegar Corporation (TG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RICHMOND, Va., March 11, 2026--(BUSINESS WIRE)--Tredegar Corporation (NYSE:TG, also the "Company" or "Tredegar") today reported fourth quarter and full year financial results for the period ended December 31, 2025. Fourth quarter 2025 net income (loss) from continuing operations was $14.5 million ($0.42 per diluted share) compared to $(7.3) million ($(0.21) per diluted share) in the fourth quarter of 2024. Net income (loss) from ongoing operations, which excludes special items, was $11.0 million ($0.32 per diluted share) in the fourth quarter of 2025 compared to $2.0 million ($0.06 per diluted share) in the fourth quarter of 2024. Full year 2025 net income (loss) from continuing operations was $24.1 million ($0.69 per diluted share) compared to $1.0 million ($0.03 per diluted share) in 2024. Net income (loss) from ongoing operations was $25.7 million ($0.74 per diluted share) in 2025 compared to $17.2 million ($0.50 per diluted share) in 2024. A reconciliation of net income (loss) from continuing operations, a financial measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), to net income (loss) from ongoing operations, a non-GAAP financial measure, for the three months and year ended December 31, 2025 and 2024, is provided in Note (a) to the Financial Tables in this press release. In the fourth quarter of 2025, the Company renamed the segment formerly known as "PE Films." This segment will be referred to as "High Performance Films" going forward. The product previously known as polyethylene overwrap films was renamed to advanced packaging films. There were no changes to the operations reported within the High Performance Films segment. The Company continues to have two reportable segments: Aluminum Extrusions and High Performance Films. Fourth Quarter Financial Results Highlights Earnings before interest, taxes, depreciation and amortization ("EBITDA") from ongoing operations for Aluminum Extrusions was $15.7 million in the fourth quarter of 2025 versus $9.7 million in the fourth quarter of 2024 and versus $16.8 million in the third quarter of 2025. Sales volume was 37.2 million pounds in the fourth quarter of 2025 versus 35.8 million pounds in the fourth quarter of 2024 and 41.3 million pounds in the third quarter of 2025. Net new orders decreased 6% in the fourth quarter of 2025 versus the fourth quarter of 2024 and increased 2% versus the third quarter of 2025. Open orders at the end of the fourth quarter of 2025 and at the end of the fourth quarter of 2024 were approximately 17 million pounds versus 19 million pounds at the end of the third quarter of 2025. EBITDA from ongoing operations for High Performance Films was $5.7 million in the fourth quarter of 2025 versus $7.6 million in the fourth quarter of 2024 and versus $7.2 million in the third quarter of 2025. Sales volume was 9.2 million pounds in the fourth quarter of 2025 versus 9.1 million pounds in the fourth quarter of 2024 and 9.7 million pounds in the third quarter of 2025. Arijit (Bapi) DasGupta, Tredegar’s president and chief executive officer, said, "We closed the year with a strong fourth quarter EBITDA performance for Bonnell Aluminum and solid cash flow generation for High Performance Films. Bonnell delivered higher sales volumes and improved EBITDA versus the same quarter of 2024. This was a noteworthy achievement, given challenging market conditions, tariff-related cost pressures, and a decline in net new orders following the mid-year increase in Section 232 tariffs. Despite these results, our outlook for 2026 remains uncertain. The year began with significant weather-related disruptions, and the current tariff structure continues to exert a negative influence on the domestic extrusions market. Nevertheless, we believe that we are outperforming the broader market and remain committed to pursuing long-term sustainable volume growth through product-focused initiatives such as with our TSLOTSTM branded products, which continue to grow and gain market share against our competitors." Dr. DasGupta continued, "High Performance Films had a solid finish to the year in the fourth quarter, as compared with an exceptional performance in the prior year. While sales volumes for surface protection films declined modestly in the fourth quarter versus the third quarter and last year, the High Performance Films business continued to generate strong cash flow, supported by cost discipline and operational efficiencies. We are forecasting that surface protection volumes will soften in the first quarter of 2026, driven by a significant customer’s inventory correction and scheduled maintenance activity. We continue to make progress on opportunities in adjacent markets where our core strengths can create differentiated value such as applications for automotive displays and protection of functional films." Dr. DasGupta added, "The Company continues to focus on cash generation and cost discipline. Net debt declined from $54.8 million at the beginning of the year to $28.4 million at year-end. We continue to look at cost savings opportunities across the Company, including operational and supply chain efficiencies, administrative costs, and outside services." OPERATIONS REVIEW Aluminum Extrusions Aluminum Extrusions (or Bonnell Aluminum) produces high-quality, soft-alloy and medium-strength custom fabricated and finished aluminum extrusions primarily for the following markets: building and construction ("B&C"), automotive, and specialty (which consists of consumer durables, machinery and equipment, electrical and renewable energy, and distribution end-use products). A summary of results for Aluminum Extrusions is provided below: The following table presents the sales volume by end use market for the three months and years ended December 31, 2025 and 2024, and the three months ended September 30, 2025. Fourth Quarter 2025 Results vs. Fourth Quarter 2024 Results Net sales (sales less freight) in the fourth quarter of 2025 increased 26.2% versus the fourth quarter of 2024 primarily due to higher sales volume and the pass-through of higher metal costs. Sales volume in the fourth quarter of 2025 increased 3.7% versus the fourth quarter of 2024 and decreased 9.9% versus the third quarter of 2025. The Company increased shipments for curtainwall, storefront and windows within the nonresidential B&C market versus the fourth quarter of 2024. Within the specialty market, shipments for consumer durables, distribution products and TSLOTSTM aluminum framing systems increased; shipments for solar panel products within the electrical product group decreased versus the fourth quarter of last year. Annual growth in shipments for TSLOTSTM aluminum framing systems was primarily associated with increased demand for infrastructure associated with data containment and data centers. Net new orders in the fourth quarter of 2025 decreased 6% versus the fourth quarter of 2024 and increased 2% versus the third quarter of 2025. Net new orders for the second half of 2025 decreased 19.8% versus the first half of 2025. The decrease in net new orders for the second half of 2025 is largely attributed to the tariff increase to 50%, discussed below. In the second half of 2025, shipments exceeded net new orders, resulting in a decline in open orders from peak levels earlier this year. Open orders were 17 million pounds at the end of the fourth quarter of 2025 and at the end of the fourth quarter of 2024, and 19 million pounds at the end of the third quarter of 2025. This level of open orders falls below the normalized level that is typically associated with stable demand patterns and healthy market dynamics. Effective June 4, 2025, the Section 232 tariffs were increased to 50%, except for the United Kingdom, after previously being increased from 10% to 25%, effective March 12, 2025. These measures are in addition to existing antidumping and countervailing duties. There are no country-specific or product-specific exclusions occurring to date, except for an alternative arrangement with the United Kingdom. Tariffs and duties are part of the mechanical pass-through to customers in the U.S. market for aluminum extrusions for changes in metal costs. In addition, the Company implemented price increases during the third quarter of 2025 and the first quarter of 2026 to help offset other tariff-related cost increases that are not part of the metal cost pass-through mechanism. Net new orders declined after the most recent tariff increase to 50% from an average of 3.4 million pounds per week for the weekly periods ending from January 5 to June 1, 2025, to an average of 2.6 million pounds per week for the weekly periods ending June 8, 2025 through March 6, 2026. The Company believes that the 23.6% decline in net new orders after the step-up in tariff to 50% is due to a combination of lower demand for extrusions in the U.S. and tariffs not resulting in the expected favorable shift of market share to U.S. aluminum extrusion producers due to the continued undervaluation of imported fabricated aluminum products. When the Section 232 program was initially strengthened, while import volume remained high, U.S. producers began to see increased market share gains against imports. However, since the tariff increased to 50%, the U.S. industry has seen these early gains diminished and imports from certain countries have again begun gaining share at the expense of the domestic industry, which has impacted the Company’s business. In response to ongoing market pressures associated with the current Section 232 tariff structure, the Company is participating in a coalition of U.S. downstream aluminum manufacturers that is engaging with federal policymakers on matters affecting the competitiveness of its industry. EBITDA from ongoing operations in the fourth quarter of 2025 increased $6.0 million versus the fourth quarter of 2024, primarily due to: A $13.3 million increase in contribution margin (net sales less variable costs) associated with: Higher volume ($1.1 million), favorable pricing ($3.5 million) and lower manufacturing costs associated with material yield ($1.6 million favorable in the fourth quarter of 2025 versus $0.7 million favorable in the fourth quarter of 2024), partially offset by higher labor rates ($0.8 million), higher maintenance and supply expense, partially due to the impact of tariffs ($1.1 million), higher die expense ($0.3 million) and higher utilities ($0.2 million). The timing of the flow-through under the first-in first-out ("FIFO") method of aluminum raw materials costs, which were previously acquired in a quickly changing commodity pricing environment, causing a temporary mismatch in the change in the cost of raw materials included in variable costs and the pass through to customers included in sales, resulted in a benefit of $3.3 million in the fourth quarter of 2025 versus a benefit of $1.2 million in the fourth quarter of 2024. The underlying average U.S. Midwest transaction prices for aluminum (which includes tariffs and duties) and the main factor causing the flow-through timing issue for the related periods were $2.16 and $1.89 per pound in November and August of 2025, compared to $1.39 and $1.25 per pound in November and August of 2024. See "Quarterly Average Price of Aluminum" chart on page 24 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 ("Form 10-K") for additional information on the average U.S. Midwest transaction prices for aluminum for each quarter of 2025 and 2024. Inventories accounted for under the last-in-first-out ("LIFO") method resulted in a net benefit of $2.6 million in the fourth quarter of 2025 compared to a net benefit of $0.1 million in the fourth quarter of 2024 due to a favorable current cost adjustment associated with higher metal prices ($9.3 million benefit in the fourth quarter of 2025 and $1.3 million benefit in fourth quarter of 2024), partially offset by a corresponding increase in the LIFO reserve, which resulted in a charge of $6.7 million in the fourth quarter 2025 versus a charge of $1.2 million in the fourth quarter 2024. Higher fixed costs primarily associated with wage increases and compensation-related costs ($0.5 million), higher maintenance and utilities expenses ($0.3 million) and added resources to support increasing volume ($0.3 million). Higher selling, general and administrative ("SG&A") expenses primarily associated with employee-related compensation ($0.7 million). Full Year 2025 Results vs. Full Year 2024 Results Net sales in 2025 increased 27.0% versus 2024 primarily due to higher sales volume and the pass-through of higher metal costs. Sales volume increased 12.9% versus 2024. EBITDA from ongoing operations increased $9.6 million in 2025 versus 2024, primarily due to: A $27.3 million increase in contribution margin associated with: Higher volume ($14.6 million), favorable pricing ($5.6 million) and lower manufacturing costs associated with material yield ($0.8 million favorable in 2025 versus $0.5 million favorable in 2024), partially offset by: higher labor rates ($3.1 million); unfavorable productivity ($1.2 million); higher maintenance and supply expense, partially due to the impact of tariffs and severe weather and downed equipment in the first half of 2025 ($2.2 million); higher expense for externally produced billet associated with the increase in volume ($0.9 million); higher die expense associated with timing of purchases and increasing volumes ($1.0 million), and higher utilities ($0.9 million); and The timing of the flow-through under the FIFO method of aluminum raw material costs, which were previously acquired in a quickly changing commodity pricing environment, causing a temporary mismatch in the change in the cost of raw materials included in variable costs and the pass through to customers included in sales, resulted in a benefit of $8.7 million in 2025 versus a benefit of $0.1 million in 2024. Inventories accounted for under the LIFO method resulted in a net benefit of $2.6 million in 2025 compared to a net benefit of $0.1 million in 2024 due to a favorable current cost adjustment associated with higher metal prices ($9.3 million benefit in 2025 and $1.3 million benefit in 2024), partially offset by a corresponding increase in the LIFO reserve, which resulted in a charge of $6.7 million in 2025 versus a charge of $1.2 million in 2024. Higher fixed costs primarily associated with wage increases and compensation-related costs ($2.9 million), higher maintenance and utilities expenses ($1.5 million) and added resources to support increasing volume ($1.2 million). Higher SG&A expenses primarily due to employee-related compensation ($3.2 million), employee training and onboarding expense ($0.5 million) and routine environmental compliance expense ($0.3 million). Higher other expense for employee-related medical costs caused by an increase in the number of high-cost medical claims versus favorable experience in recent years ($1.1 million). The Company is self-insured for medical claims with stop loss coverage for claims of over $0.3 million. Given recent increased geopolitical tensions in the Middle East, Aluminum Extrusions is monitoring potential implications for the availability of certain aluminum‑related raw materials in 2026 and evaluating whether diversifying its sourcing may be warranted. Aluminum Extrusions maintains robust supply agreements that support the continuity of aluminum and other key cost components. See discussion of Quantitative and Qualitative Disclosures about Market Risk in Part II, Item 7a of the 2025 Form 10-K for additional information on aluminum price trends. Projected Capital Expenditures and Depreciation & Amortization Capital expenditures for Bonnell Aluminum are projected to be $20 million in 2026, including $7 million for productivity projects and $13 million for capital expenditures required to support continuity of operations. Depreciation expense is projected to be $14 million in 2026. Amortization expense is projected to be $2 million in 2026. The Company anticipates capital spending to increase from the levels of the past two years and return to a pattern more closely aligned with depreciation and amortization, consistent with long-term historical patterns. This approach supports ongoing maintenance and efficiency initiatives while maintaining disciplined capital allocation. High Performance Films High Performance Films produces surface protection films, advanced packaging films and films for other markets. A summary of results for High Performance Films is provided below: Fourth Quarter 2025 Results vs. Fourth Quarter 2024 Results Net sales in the fourth quarter of 2025 decreased 10.0% versus the fourth quarter of 2024, primarily due to a decrease in sales in surface protection films. Surface Protection sales volume decreased 8.0% in the fourth quarter of 2025 versus the fourth quarter of 2024. Sales volumes for surface protection films, which were supported by strong customer performance throughout 2024 and 2025, began to moderate in the fourth quarter of 2025, as the Company had expected. Volume trends for surface protection films are expected to further moderate in the first quarter of 2026. Volume for advanced packaging films, which are predominantly manufactured and sold in the U.S. and used in consumer staples, increased 16% in the fourth quarter of 2025 due to higher volume in lower-margin business. To date, Surface Protection has not experienced an adverse impact on customer demand related to tariff actions; however, the situation remains fluid and the impact on consumer electronics is uncertain. EBITDA from ongoing operations in the fourth quarter of 2025 decreased $1.9 million versus the fourth quarter of 2024, primarily due to: Lower contribution margin of $0.9 million resulting from: A $0.9 million decrease from Surface Protection associated with lower volume, unfavorable sales mix and unfavorable pricing ($1.7 million), partially offset by operating efficiencies and cost improvements ($0.8 million); and Neutral impact from advanced packaging films as cost improvements were offset by unfavorable sales mix. Inventories accounted for under the LIFO method that resulted in a charge of $0.2 million in the fourth quarter of 2025 versus a benefit of $0.2 million in the fourth quarter of 2024. A foreign currency transaction loss of $0.2 million in the fourth quarter of 2025 versus a gain of $0.4 million in the fourth quarter of 2024. There have been significant cyclical swings in the sales volume and EBITDA from ongoing operations for High Performance Films since the beginning of 2022, largely due to the unprecedented downturn in the display industry during the second half of 2022 and first half of 2023. EBITDA from ongoing operations for the past 4 years has averaged approximately $5.0 million per quarter. The top four customers comprised 88% of the net sales for High Performance Films for 2025 and 2024. Full Year 2025 Results vs. Full Year 2024 Results Net sales in 2025 decreased 5.2% versus 2024 due to a decrease of 4% in sales volume in 2025 for surface protection films versus 2024. Advanced packaging films volume decreased 1%. EBITDA from ongoing operations in 2025 decreased $3.3 million versus 2024 primarily due to: Lower contribution margin of $1.8 million resulting from: A $1.0 million decrease from Surface Protection associated with lower volume, unfavorable mix and favorable pricing ($4.5 million), partially offset by variable cost savings and operating efficiencies ($3.1 million) and the pass-through lag associated with resin costs (a charge of $0.2 million in 2025 versus a charge of $0.7 in 2024); and A $0.8 million decrease from advanced packaging films associated with lower volume, unfavorable shift in sales mix and unfavorable pricing ($1.0 million) and unfavorable operating efficiencies ($0.5 million), partially offset by variable cost savings ($0.5 million) and the pass-through lag associated with resin costs (a charge of $0.1 million in 2025 versus a charge of $0.3 million in 2024). Inventories accounted for under the LIFO method that resulted in a charge of $0.2 million in 2025 versus a benefit of $0.2 million in 2024. Higher fixed costs primarily associated with wage increases and compensation-related costs ($0.9 million). Lower SG&A of $0.2 million primarily due to lower administrative costs. A foreign currency transaction loss of $0.3 million in 2025 versus a gain of $0.3 million in 2024. Refer to Part II, Item 7a. Quantitative and Qualitative Disclosures About Market Risk in the 2025 Form 10-K for additional information on resin price trends. Projected Capital Expenditures and Depreciation & Amortization Capital expenditures for High Performance Films are projected to be $3 million in 2026, including $1 million for productivity projects and $2 million for capital expenditures required to support continuity of current operations. Depreciation expense is projected to be $4 million in 2026. There is no amortization expense for High Performance Films. Corporate Expenses, Interest, Taxes and Other Corporate expenses, net in 2025 increased by $0.9 million compared to 2024, primarily due to higher professional fees associated with business development activities ($5.9 million) and higher stock based compensation ($0.5 million), partially offset by lower employee-related incentive compensation ($2.1 million), a gain on the sale of corporate owned land ($1.5 million), lower internal and external audit fees ($0.9 million), lower professional fees associated with remediation activities related to internal control over financial reporting ($0.3 million) and lower professional fees associated with the transition to the ABL Facility (as defined below) ($0.2 million). The Company does not expect significant expenses from business development activities in 2026. Interest expense was $4.0 million in 2025 in comparison to $4.7 million in 2024, primarily due to lower weighted average total debt outstanding and lower interest rates, partially offset by the write-off of deferred financing fees related to the May 2025 amendment to the ABL Facility of $0.8 million. The effective tax rate from continuing operations for 2025 was 21.5% compared to (18.8)% for 2024. The change in effective tax rate was primarily due to higher pre-tax income from continuing operations in 2025 than in 2024. The tax rate in 2024 was impacted by the release of valuation allowance on deferred taxes. See Note (d) to Financial Tables in this Press Release for information related to the effective tax rate from ongoing operations. For an explanation of differences between the effective tax rate and the U.S. federal statutory rate for 2025 and 2024, see Note 11. Income Taxes to the Consolidated Financial Statements included in Part IV, Item 15 of the 2025 Form 10-K. Debt, Financial Leverage, Debt Covenants and Debt Refinancing Total debt was $35.1 million at December 31, 2025 and $61.9 million at December 31, 2024. Cash and cash equivalents were $6.7 million at December 31, 2025 and $7.1 million at December 31, 2024. Net debt (total debt in excess of cash and cash equivalents), a non-GAAP financial measure, was $28.4 million at December 31, 2025 and $54.8 million at December 31, 2024. See Note (e) to the Financial Tables in this Press Release for a reconciliation of net debt to the most directly comparable GAAP financial measure. Total debt decreased $26.8 million and net debt decreased $26.4 million at the end of 2025 versus the end of 2024 due to $9.8 million received in the first quarter of 2025 from the post-closing settlement associated with the sale of Terphane and segment EBITDA from ongoing operations of $78.1 million, partially offset by total corporate expenses of $25.4 million, interest expense of $4.0 million, capital expenditures of $17.2 million and additional working capital of $15.2 million mainly resulting from the impact of tariffs in 2025. As of December 31, 2025, the Company was in compliance with all covenants under its $125 million asset-based credit agreement, which matures May 6, 2030 (the "ABL Facility"). Availability for borrowings under the ABL Facility is governed by a borrowing base, determined by the application of specified advance rates against eligible assets, including trade accounts receivable, inventory and owned machinery and equipment. As of December 31, 2025, funds available to borrow under the ABL Facility were approximately $87 million. The median daily liquidity under the ABL Facility during the fourth quarter of 2025 was favorable at $82 million compared with a median of $53 million during the third quarter of 2025. Refer to Note 7. Debt and Credit Agreements to the Consolidated Financial Statements included in Part IV, Item 15 of the 2025 Form 10-K for additional details on the primary debt covenants. FORWARD-LOOKING AND CAUTIONARY STATEMENTS Some of the information contained in this press release may constitute "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. When the Company uses the words "believe," "estimate," "anticipate," "appear to," "expect," "project," "plan," "likely," "may" and similar expressions, it does so to identify forward-looking statements. Such statements are based on the Company's then current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. Factors that could cause actual results to differ materially from expectations include, without limitation, the following: the impact of macroeconomic factors, such as inflation, interest rates and recession risks; an increase in the operating costs incurred by the Company’s business units, including, for example, the cost of raw materials and energy; noncompliance with any of the financial and other restrictive covenants in the ABL Facility; failure to continue to attract, develop and retain certain key officers or employees; disruptions to the Company’s manufacturing facilities, including those resulting from labor shortages; an information technology system failure or breach; risks of doing business in countries outside the U.S. that affect our international operations; the impact of public health epidemics on employees, production and the global economy; political, economic and regulatory factors concerning the Company’s products; the impact of the imposition of tariffs and sanctions on imported aluminum ingot used by Bonnell Aluminum; the impact of geopolitical tensions on raw materials and supply chain constraints; inability to replace aging equipment and information technology systems with necessary capital expenditures; inability to develop, efficiently manufacture and deliver new products at competitive prices; loss of sales to significant customers on which the Company’s business is highly dependent; inability to achieve sales to new customers to replace lost business; failure of the Company’s customers to achieve success or maintain market share; failure to protect our intellectual property rights; inability to successfully complete strategic acquisitions or dispositions, failure to realize the expected benefits of such acquisitions or dispositions, and assumption of unanticipated risks in such acquisitions or dispositions; and the other factors discussed in the reports Tredegar files with or furnishes to the Securities and Exchange Commission (the "SEC") from time to time, including the risks and important factors set forth in additional detail in Part I, Item 1A. Risk Factors of the 2025 Form 10-K. Readers are urged to review and consider carefully the disclosures Tredegar makes in its filings with the SEC. Tredegar does not undertake, and expressly disclaims any duty, to update any forward-looking statement made in this press release to reflect any change in management’s expectations or any change in conditions, assumptions or circumstances on which such statements are based, except as required by applicable law. To the extent that the financial information portion of this press release contains non-GAAP financial measures, it also presents both the most directly comparable financial measures calculated and presented in accordance with GAAP and a quantitative reconciliation of the difference between any such non-GAAP measures and such comparable GAAP financial measures. Reconciliations of non-GAAP financial measures are provided in the Notes to the Financial Tables included with this press release and can also be found within "Presentations" in the "Investors" section of our website, www.tredegar.com. Tredegar uses its website as a channel of distribution of material company information. Financial information and other material information regarding Tredegar is posted on and assembled in the "Investors" section of its website. Tredegar Corporation is an industrial manufacturer with two primary businesses: custom aluminum extrusions for the North American building & construction, automotive and specialty end-use markets and high performance surface protection films for high-end technology applications in the global electronics industry and packaging films for consumer and industrial products. Tredegar had 2025 sales of $723 million. With approximately 1,700 employees, the Company operates manufacturing facilities in North America and Asia. Notes to the Financial Tables (Unaudited) Net debt is not intended to represent total debt as defined by GAAP. Net debt is utilized by management in evaluating the Company’s financial leverage and equity valuation, and management believes that investors also may find net debt to be helpful for the same purposes. Net leverage ratio is a non-GAAP financial measure. It is not intended to represent the stand-alone results for Tredegar under GAAP and should not be considered as an alternative to net income (loss) and total debt as defined by GAAP. Net leverage ratio is utilized by management in evaluating the Company’s financial leverage, and management believes that investors also may find the net leverage ratio to be helpful for the same purposes. In addition, earnings before interest, taxes, depreciation and amortization as defined in the ABL Facility ("Credit EBITDA") is provided below. View source version on businesswire.com: https://www.businesswire.com/news/home/20260311782488/en/ Contacts Tredegar Corporation Neill Bellamy, 804-330-1211

Shares of Tredegar Corporation TG have gained 33.2% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 2% growth over the same time frame. Over the past month, the stock has gained 9.4% compared with the S&P 500’s 3.6% growth. Tredegar reported an adjusted net income from ongoing operations of 26 cents per share, sharply higher than 1 cent per share in the prior-year period. Consolidated revenues rose 33.5% to $194.9 million, up from $146.1 million in the same quarter last year. This improvement was driven primarily by the Aluminum Extrusions segment, which posted a 40.4% increase in net sales to $162.5 million. Meanwhile, PE Films contributed $25.9 million in revenue, up 4% from the third quarter of 2024. Net income from continuing operations came in at $7.1 million against a net loss of $3.4 million in the third quarter of 2024. On a non-GAAP basis, net income from ongoing operations was $9.2 million, up from $0.2 million in the prior-year period. Tredegar Corporation price-consensus-eps-surprise-chart | Tredegar Corporation Quote Earnings before interest, taxes, depreciation, and amortization (EBITDA) from ongoing operations for the segment reached $16.8 million, a sharp rise from $6.2 million in the third quarter of 2024. This 172.1% increase was driven by 19.5% growth in sales volume to 41.3 million pounds and favorable pricing dynamics. Higher volumes of non-residential building and construction products, especially curtainwall and storefront components, along with increased specialty product shipments such as solar panel materials and distribution goods, helped boost performance. An inventory flow-through timing benefit due to aluminum price trends also contributed $4.3 million to earnings, reversing a $1 million charge in the year-ago quarter. However, net new orders declined 5% year over year, primarily due to the increase in Section 232 tariffs on aluminum extrusions to 50%, which reduced customer demand and created uncertainty. In the PE Films segment, EBITDA from ongoing operations increased 22.9% to $7.2 million, up from $5.9 million in the third quarter of 2024. Net sales for the segment rose 4% year over year to $25.9 million. This growth was attributed to higher volume in surface protection films, which rose 10.9% year over year and 16.1% sequentially. The improvement in contribution margin within the segment was supported by both volume growth and cost savings. However, overwrap films saw a volume decline of 11%, negatively impacting segment performance. Despite the gains, management noted that surface protection volumes are expected to moderate later in the year. CEO John Steitz described the quarter as a "good" one across both business units. He noted that the resolution of earlier manufacturing inefficiencies at Bonnell helped boost performance, even as net new orders remained at "depressed levels" following the increase in tariffs. Steitz highlighted that shipments have outpaced new orders, resulting in lower open orders. However, he pointed to encouraging order activity in October, with weekly averages reaching 3 million pounds, suggesting a potential stabilization. For PE Films, Steitz commended the segment’s “strong cash generation,” which contributed to a notable reduction in net debt, from $54.8 million at the start of the year to $36.2 million at the end of the third quarter. The sharp increase in earnings for the Aluminum Extrusions segment was driven by a $12.7 million boost in contribution margin, helped by higher sales volumes, improved pricing, and better manufacturing yields. These were partly offset by cost pressures from higher labor rates, maintenance, utilities, and onboarding new employees. A favorable FIFO inventory accounting effect, reflecting rising aluminum prices, added to earnings momentum. The average U.S. Midwest transaction price for aluminum was $1.90 per pound in the third quarter of 2025, up from $1.27 in the same quarter last year. The PE Films segment’s improvement was less dramatic but still meaningful. A $1.8 million margin increase from surface protection films was the key driver, helped by higher volume and productivity gains. Overwrap films, however, detracted from results due to lower demand and inefficiencies. Management indicated that cost-reduction initiatives are being evaluated and expected to begin bearing fruit in 2026. Capital expenditures for 2025 are projected at $17 million for Bonnell Aluminum and $2 million for PE Films, focused on both productivity enhancements and maintenance. Tredegar did record a $9.8 million cash inflow in the first quarter related to the post-closing settlement of the previously completed sale of its Terphane business. This transaction contributed to the company’s debt reduction in 2025. Additionally, Tredegar completed the sale of corporate-owned land during the third quarter, resulting in a $1.5 million gain. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tredegar Corporation (TG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research