Shares of Tredegar Corporation (TG) have gained 3.8% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 index’s 4.5% growth over the same time frame. Over the past month, the stock has gained 15.8% compared with the S&P 500’s 8.8% growth.Tredegar reported first-quarter 2025 net income from continuing operations of 2 cents per share, down from 8 cents per share in the first quarter of 2024. On an adjusted basis, net income from ongoing operations fell t ...

TREDEGAR REPORTS FIRST QUARTER 2025 RESULTS RICHMOND, VA--(BUSINESS WIRE)--May 8, 2025--Tredegar Corporation (NYSE:TG, also the "Company" or "Tredegar") today reported first quarter financial results for the period ended March 31, 2025. First quarter 2025 net income (loss) from continuing operations was $0.7 million ($0.02 per diluted share) compared to $2.6 million (0.08 per diluted share) in the first quarter of 2024. Net income (loss) from ongoing operations, which excludes special items, was $3.6 millio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-10258 Tredegar Corporation (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or ...

Core Insights - Tredegar Corporation's shares have increased by 8.3% since the earnings report for Q4 2024, outperforming the S&P 500's 1.2% growth during the same period [1] - The company reported a narrower net loss from continuing operations of $0.21 per share in Q4 2024, compared to a loss of $1.00 per share in the same quarter last year [2][3] - Total revenues for Q4 2024 rose by 13.1% to $154 million, driven by growth in the Aluminum Extrusions and PE Films segments [3] Financial Performance - The Aluminum Extrusions segment's revenues grew by 11.1% year over year to $122.5 million, with sales volume increasing by 8.8% to 35.8 million pounds [4] - The PE Films segment saw revenues jump by 27.3% to $26.4 million, with a 6.8% increase in sales volume, largely due to a 43% surge in Surface Protection films [5] - For the full year 2024, total revenues increased by 4.3% to $598 million, with the PE Films segment reporting a 37% revenue surge to $105.2 million [8][9] Management Commentary - CEO John Steitz highlighted strong performance in both segments during a typically weak quarter and noted growth in net new orders for Bonnell Aluminum in early 2025 [6] - The company improved its balance sheet, reducing its net leverage ratio to 1.1X from 3.7X at the end of 2023, primarily due to a cyclical recovery and the sale of Terphane [6][7] Debt and Divestiture - Total debt decreased to $61.9 million as of Dec. 31, 2024, down from $126.3 million a year earlier, reflecting disciplined cash management and proceeds from the Terphane divestiture [7][11] - The divestiture of the Terphane flexible packaging business was completed, with an additional $9.8 million received in post-closing settlement proceeds, which were used to pay down debt [11] Future Outlook - Tredegar projects capital spending of $17 million for Aluminum Extrusions and $3 million for PE Films in 2025, expecting continued improvements in demand trends [10] - Management acknowledges uncertainties related to raw material costs, trade policy changes, and macroeconomic conditions [10]

Financial Performance - Fourth quarter 2024 net income from continuing operations was $(7.3) million ($(0.21) per diluted share), an improvement from $(34.1) million ($(1.00) per diluted share) in Q4 2023[3]. - Full year 2024 net income from ongoing operations was $17.2 million ($0.50 per diluted share), compared to $(2.0) million ($(0.07) per diluted share) in 2023[4]. - The company reported a net loss of $72.70 million for Q4 2024, compared to a loss of $35.59 million in Q4 2023, highlighting ongoing challenges[44]. - Net income for the year ended December 31, 2024, was a loss of $64.565 million, an improvement from a loss of $105.905 million in 2023, representing a 39% reduction in losses[50]. - As of December 31, 2024, the company reported a net loss from continuing operations of $7.3 million, compared to a loss of $34.1 million in 2023[70]. Sales and Revenue - Tredegar Corporation reported 2024 sales of $598 million, an increase from $573.3 million in 2023, representing a growth of approximately 4.7%[44]. - For Q4 2024, net sales were $154.05 million, compared to $136.17 million in Q4 2023, reflecting a year-over-year increase of about 13.1%[44]. - The Aluminum Extrusions segment generated $471.82 million in sales for 2024, while the PE Films segment saw sales rise to $105.20 million, up from $76.76 million in 2023, indicating a significant growth in the latter segment[46]. - PE Films' net sales for Q4 2024 increased by 27.3% to $26.4 million compared to Q4 2023, driven by a 43% increase in surface protection sales volume[21][23]. - Full year 2024 net sales increased by 37.0% compared to 2023, with surface protection films sales volume up 57%[25]. EBITDA and Operational Performance - EBITDA from ongoing operations for Aluminum Extrusions increased to $9.7 million in Q4 2024, up 21.5% from $8.0 million in Q4 2023[7]. - EBITDA from ongoing operations increased by $3.4 million in 2024 versus 2023, driven by higher contribution margin and favorable variable manufacturing costs[17]. - EBITDA from ongoing operations for the Aluminum Extrusions segment was $41.36 million for 2024, an increase from $37.98 million in 2023, while the PE Films segment's EBITDA rose to $30.49 million from $11.22 million[46]. - Consolidated EBITDA from ongoing operations for the year ended December 31, 2024, was $50.5 million, up from $30.3 million in 2023, reflecting a 66% increase[70]. Debt and Financial Ratios - The company reported a net leverage ratio of 1.1x at the end of 2024, significantly improved from 3.7x at the end of 2023[6]. - Total debt decreased from $126.3 million at the end of 2023 to $61.9 million at the end of 2024, with net debt also decreasing significantly[33][34]. - The fixed charge coverage ratio was reported at 7.80, indicating strong coverage of fixed charges by Credit EBITDA[73]. - The company believes the likelihood of lenders exercising the subjective acceleration clause is remote, as it was in compliance with all debt covenants as of December 31, 2024[68]. Impairments and Goodwill - The Company recognized a non-cash goodwill impairment of $13.3 million related to the Clearfield operation, which fell below its carrying value due to lower sales and profitability projections[19]. - The company experienced a goodwill impairment of $13.27 million in Q4 2024, which contributed to the overall net loss[46]. - The company recognized a goodwill impairment of $34.9 million for the year ended December 31, 2023[63]. - The company reported a goodwill impairment of $13.271 million in 2024, down from $34.891 million in 2023, showing a 62% decrease in impairment charges[50]. Capital Expenditures - Projected capital expenditures for Bonnell Aluminum in 2025 are $17 million, including $5 million for productivity projects and $12 million for continuity of operations[20]. - Projected capital expenditures for PE Films in 2025 are $3 million, with no amortization expense expected[27]. - Capital expenditures decreased to $14.347 million in 2024 from $26.446 million in 2023, reflecting a 45.6% reduction[50]. Tax and Corporate Expenses - The effective tax rate for 2024 was (18.8)%, a decrease from 34.1% in 2023, primarily due to a pre-tax income in 2024 compared to a pre-tax loss in 2023[31]. - Corporate expenses decreased by $9.2 million in 2024 compared to 2023, mainly due to lower pension expenses following a plan termination[29]. Other Notable Events - The Company completed the sale of its flexible packaging films business for $9.8 million, which was $2.8 million higher than expected due to higher cash held at the sold entity[32]. - The company adopted a plan in August 2023 to close the PE Films technical center in Richmond, VA, and will shift future R&D activities to the Pottsville, PA facility[72].

Financial Performance - Sales increased by 4.3% in 2024, reaching $598.0 million compared to $573.3 million in 2023[79]. - Net income from continuing operations was $1.0 million ($0.03 per diluted share) in 2024, a significant recovery from a net loss of $(99.2) million ($(2.91) per diluted share) in 2023[79]. - EBITDA from ongoing operations for Aluminum Extrusions was $41.4 million, an increase of $3.4 million from 2023, while PE Films saw EBITDA of $30.5 million, up $19.3 million year-over-year[81]. - Gross profit margin improved to 16.1% in 2024 from 12.4% in 2023, driven by favorable manufacturing costs and higher labor productivity[86]. - PE Films net sales increased by 37.0% in 2024, attributed to higher sales volume and restocking activities[84]. - The company reported a net loss of $64,565,000 in 2024, an improvement from a net loss of $105,905,000 in 2023[136]. - Net cash provided by operating activities increased to $25.5 million in 2024 from $24.0 million in 2023, driven by a $22.7 million increase in EBITDA from ongoing operations[139]. - Net cash provided by investing activities was $40.5 million in 2024, a significant increase from net cash used of $26.2 million in 2023, primarily due to $54.6 million from the sale of Terphane[140]. Expenses and Costs - Selling, general and administrative expenses increased by 11.6% year-over-year, while research and development expenses decreased by 75.4%[88]. - Pension and postretirement benefits expense dropped to $0.2 million in 2024 from $10.8 million in 2023, following the completion of a pension plan termination[89]. - Interest expense reduced to $4.7 million in 2024 from $6.3 million in 2023, attributed to lower total debt outstanding[126]. - Corporate expenses decreased by $9.2 million in 2024, primarily due to lower pension expenses following the pension plan termination[125]. Tax and Debt - The effective tax rate for 2024 was (18.8)%, a decrease from 34.1% in 2023, primarily due to a shift from a pre-tax loss to pre-tax income[91]. - Average total debt outstanding decreased to $117.7 million in 2024 from $148.9 million in 2023, with an increase in average interest rate from 7.1% to 8.9%[96]. - As of December 31, 2024, the Company had outstanding debt under the ABL Facility of $60.6 million, with contractual payments due in June 2026[153]. Goodwill and Impairments - A non-cash goodwill impairment of $13.3 million was recognized in 2024, compared to a $34.9 million impairment in 2023[90]. - The Company recognized a non-cash goodwill write-off of $13.3 million ($10.4 million after deferred income tax benefits) related to the Clearfield operation due to lower-than-expected recovery in customer volumes[165]. - The Company performed a goodwill impairment analysis in Q4 2024, indicating that the fair value of Clearfield was below its carrying value by more than the amount of goodwill[165]. Sales and Volume Trends - Sales in 2023 decreased by 24.8% compared to 2022, with net sales in Aluminum Extrusions down 25.6% and PE Films down 21.3% due to lower sales volume and weak demand[99]. - PE Films sales volume decreased by 10.7% in 2023, resulting in net sales of $76,763,000, down from $97,571,000 in 2022[131]. - Sales volume for surface protection films surged by 57% in 2024, driven by high demand and inventory restocking[121]. Future Projections and Plans - Projected capital expenditures for Bonnell Aluminum are $17 million in 2025, including $5 million for productivity projects[119]. - Capital expenditures for PE Films are projected to be $3 million in 2025, with $2 million allocated for productivity projects[124]. - The Company believes it has adequate supply agreements for aluminum and other product cost components in 2025[117]. Employee and Compliance - Approximately 20% of the Company's employees are represented by labor unions in the U.S., with a new collective bargaining agreement ratified in January 2025[26]. - The Company has on-site health clinics at its Carthage and Clearfield facilities, serving over 600 employees[28]. - Tredegar's compliance with environmental regulations may require significant future capital expenditures, although current compliance has not necessitated such costs[24].

Core Viewpoint - Tredegar Corporation reported a narrower net loss in Q3 2024 compared to the same quarter in 2023, with increased revenues driven by its Aluminum Extrusions and PE Films segments [1][2] Financial Performance - The company incurred a net loss of $0.11 per share, an improvement from a loss of $1.47 per share in Q3 2023 [1] - Revenues increased to $182.1 million, a 9.5% rise from $166.2 million in Q3 2023 [1] - Net income from ongoing operations was slightly positive at $0.2 million, compared to a net loss of $5.1 million in the prior-year quarter [1] Business Segment Performance - **Aluminum Extrusions**: Revenues reached $115.7 million, a 5.8% increase year over year, with a 6.5% rise in sales volume. EBITDA rose to $6.2 million from $5.1 million in Q3 2023 [4] - **PE Films**: Sales volume surged 33.4% year over year, with revenues rising to $24.9 million, a 24.8% improvement. EBITDA jumped 45.6% to $5.9 million [6] Challenges and Cost Management - The Aluminum Extrusions segment faced increased operational costs and competitive pressures, impacting margins despite higher sales volumes [2][8] - Higher metal costs affected Aluminum Extrusions, but efficient cost management helped mitigate some impacts [8] Balance Sheet Position - As of September 30, 2024, cash and cash equivalents were $2.7 million, down from $9.7 million at the end of 2023 [8] - Total assets were $442.5 million, slightly lower than $446.5 million at year-end 2023, with long-term debt steady at $20 million [9] Cash Flows - Net cash from operations in the first nine months of 2024 was $6.1 million, significantly lower than $44.2 million in the same period of 2023 [10] Management Guidance - Management expects ongoing cost pressures and competitive challenges in the Aluminum Extrusions segment, with capital expenditure controls projected at $8 million for Aluminum Extrusions and $2 million for PE Films in 2024 [11] Other Developments - The divestiture of Terphane, completed on November 1, 2024, yielded an immediate cash inflow of $60 million, streamlining the company's focus on core segments [12] - An adverse ruling by the U.S. International Trade Commission on tariffs for imported aluminum extrusions poses ongoing competitive pressure [13]

Financial Performance - Third quarter 2024 net income was $(3.9) million ($(0.11) per diluted share), an improvement from $(50.4) million ($(1.47) per diluted share) in the third quarter of 2023[73]. - Net income for the nine months ended September 30, 2024, was $8.134 million, compared to a net loss of $70.314 million for the same period in 2023[84]. - Net sales increased by $15.9 million in Q3 2024 compared to Q3 2023, with Aluminum Extrusions contributing $6.3 million and PE Films contributing $4.9 million[76]. - Net sales in the first nine months of 2024 decreased by 4.2% compared to the same period in 2023, primarily due to lower sales volume and the pass-through of lower metal costs[94]. - For the twelve months ended September 30, 2024, the company reported a net loss of $27,456,000, with Credit EBITDA calculated at $59,098,000[112]. EBITDA and Profit Margins - EBITDA from ongoing operations for Aluminum Extrusions was $6.2 million in Q3 2024, up from $5.1 million in Q3 2023, with sales volume increasing to 34.6 million pounds[74]. - PE Films segment reported EBITDA of $5.9 million in Q3 2024, compared to $4.0 million in Q3 2023, with sales volume rising to 9.6 million pounds[74]. - Terphane's EBITDA was $3.7 million in Q3 2024, significantly up from $0.5 million in Q3 2023, with sales volume at 25.3 million pounds[74]. - Consolidated gross profit margin improved to 12.8% in Q3 2024 from 9.0% in Q3 2023, driven by higher volume and favorable manufacturing costs[76]. - EBITDA from ongoing operations in Q3 2024 increased by $3.3 million compared to Q3 2023, driven by lower variable costs ($1.5 million) and lower raw material costs ($1.1 million) among other factors[102]. Sales and Volume Growth - Net sales in Q3 2024 increased by 5.8% compared to Q3 2023, driven by a 6.5% increase in sales volume[91]. - Net sales for PE Films in Q3 2024 were 24.8% higher than Q3 2023, with a 37.5% increase in Surface Protection sales volume[97]. - Sales volume for Surface Protection increased by 62.3% in the first nine months of 2024 compared to the same period in 2023[98]. - Net sales for Flexible Packaging Films in Q3 2024 increased by 14.1% compared to Q3 2023, primarily due to higher sales volume[100]. - Net sales in the first nine months of 2024 increased by 40.6% compared to the same period in 2023, driven by a 62.3% increase in sales volume in Surface Protection[98]. Costs and Expenses - The company faced unfavorable costs in Aluminum Extrusions due to manufacturing inefficiencies and margin pressures from imports[75]. - Selling, general, and administrative (SG&A) and research and development (R&D) expenses remained consistent at 11.1% of sales in the first nine months of 2024 compared to the same period in 2023[85]. - Interest expense increased by $2.5 million to $10.3 million in the first nine months of 2024 due to higher average debt and interest rates[85]. - The gross profit margin in Aluminum Extrusions improved due to higher net pricing and favorable variable manufacturing costs[84]. - Corporate expenses decreased by $13.7 million in the first nine months of 2024, primarily due to lower pension expenses from a plan termination completed in 2023[104]. Tax and Debt - The effective tax rate for Q3 2024 was (31.6)%, compared to 20.9% in Q3 2023[78]. - The effective tax rate for income taxes was 30.5% in the first nine months of 2024, compared to 18.8% in the same period of 2023[85]. - Average total outstanding debt balance increased to $145.5 million in the first three months of 2024 from $138.2 million in the same period of 2023, with an average interest rate rising to 9.4% from 7.4%[82]. - The company has an outstanding ABL Facility debt of $122,000,000 as of September 30, 2024, maturing on June 30, 2026[115]. Liquidity and Cash Flow - Net cash provided by operating activities was $6.1 million in the first nine months of 2024, a decrease from $44.2 million in the same period of 2023, mainly due to lower working capital[106]. - The Company had cash, cash equivalents, and restricted cash of $6.6 million as of September 30, 2024, including $2.7 million held outside the U.S.[106]. - The ABL Facility provides a $180 million senior secured asset-based revolving credit facility, maturing on June 30, 2026[107]. - Minimum Liquidity as of September 30, 2024, was $45.1 million, exceeding the $10 million Minimum Liquidity financial covenant[107]. - Following the Terphane Sale, the company has enhanced its liquidity position, which will support future operational needs[116]. Future Projections and Capital Expenditures - Capital expenditures for Bonnell Aluminum are projected to be $8 million in 2024, with $4 million allocated for productivity projects[94]. - Capital expenditures for Flexible Packaging Films are projected to be $4 million in 2024, with depreciation expense projected at $3 million[102]. - Capital expenditures for PE Films are projected to be $2 million in 2024, with $1 million allocated for productivity projects[98]. - Minimum Credit EBITDA is projected to increase from $25,370,000 in September 2024 to $32,080,000 by September 2025, reflecting a growth of approximately 26.5%[109].

Financial Performance - Third quarter 2024 net income was $(3.9) million ($(0.11) per diluted share), an improvement from $(50.4) million ($(1.47) per diluted share) in Q3 2023[1] - Net income for the nine months ended September 30, 2024, was $8.1 million, a significant improvement from a net loss of $70.3 million in the same period of 2023[27] - For the three months ended September 30, 2024, the net income reported under GAAP was a loss of $3.9 million, compared to a loss of $50.4 million for the same period in 2023, representing a 92.3% improvement[38] - The net income from ongoing operations for the nine months ended September 30, 2024, was $19.7 million, an increase of 18.5% compared to $16.0 million for the same period in 2023[38] Sales and Orders - Net sales in Q3 2024 increased 5.8% to $115.7 million, driven by higher sales volume and metal cost pass-through[4] - Net new orders for Aluminum Extrusions rose 27% in Q3 2024 versus Q3 2023, and increased 7% compared to Q2 2024[2] - Sales volume for Aluminum Extrusions increased 6.5% to 34.6 million pounds in Q3 2024 compared to 32.5 million pounds in Q3 2023[4] - Sales volume for Surface Protection films rose by 37.5% in the third quarter of 2024 compared to the same period in 2023, while it declined by 16.5% from the second quarter of 2024[9] EBITDA and Operational Performance - EBITDA from ongoing operations for Aluminum Extrusions was $6.2 million in Q3 2024, up 20.8% from $5.1 million in Q3 2023[2] - Consolidated EBITDA from ongoing operations for the three months ended September 30, 2024, was $10.1 million, significantly up from $4.1 million in the same period of 2023[43] - EBITDA from ongoing operations for the first nine months of 2024 increased by $16.2 million to $22.913 million, compared to $6.700 million in the first nine months of 2023[10] Debt and Cash Flow - Total debt decreased to $143.4 million as of September 30, 2024, down from $146.3 million at December 31, 2023[15] - The sale of Terphane resulted in a reduction of consolidated total debt and net debt by $78 million, with an additional $7 million expected from escrow funds[15] - Cash flows from operating activities provided $6.053 million, down from $44.238 million in the previous year, indicating a decrease of approximately 86.3%[27] - The company reported interest expense of $3.480 million in Q3 2024, an increase from $3.106 million in Q3 2023[24] Capital Expenditures - Capital expenditures for Bonnell Aluminum are projected to be $8 million in 2024, focusing on productivity and operational continuity[6] - Capital expenditures for PE Films are projected to be $2 million in 2024, including $1 million for productivity projects[12] - Capital expenditures for the nine months ended September 30, 2024, were $7.696 million, compared to $22.270 million in the same period of 2023, reflecting a reduction of approximately 65.5%[27] Goodwill and Impairments - The company recognized a goodwill impairment of $19.5 million for the three months ended September 30, 2023, reflecting challenges in the PE Films segment[34] - The company experienced a goodwill impairment of $27 million in the nine months ended September 30, 2023, which negatively affected financial performance[30] - The company’s reporting units with goodwill as of December 1, 2023, included Surface Protection in PE Films and Futura in Aluminum Extrusions, with goodwill amounts of $22.4 million and $13.3 million, respectively[48] Tax and Regulatory Matters - The effective tax rate increased to 30.5% in the first nine months of 2024, compared to 18.8% in the same period of 2023[14] - The effective tax rate for the three months ended September 30, 2024, was (31.6)%, compared to (20.9)% for the same period in 2023[38] - The USITC's recent decision indicated that the aluminum extrusions industry was not materially injured by imports, despite previous findings of unfair pricing[6] Other Notable Events - Tredegar completed the sale of Terphane for $60 million in cash, with an enterprise value of $78 million, reducing net leverage from 2.3x to 1.2x[2] - The company received $47.1 million from the sale of its investment interests in kaléo, with additional cash consideration of $0.4 million received in 2023 and 2024[35] - Following the sale of Terphane, the ABL Facility will be reduced from $180 million to $125 million, with a new minimum fixed charge coverage ratio of 1.00:1.00 implemented[48]

Core Viewpoint - Tredegar Corporation reported a significant financial turnaround in Q2 2024, achieving a net income of $8.8 million compared to a net loss of $18.9 million in Q2 2023, driven by strategic cost management and operational improvements [1][2]. Financial Performance - Revenues for Q2 2024 reached $190.2 million, an increase from $178.2 million in the same quarter of the previous year [1]. - The company’s net income per share was 26 cents, a recovery from a loss of 56 cents per share in Q2 2023 [1]. Business Segments Performance - **Aluminum Extrusions (Bonnell Aluminum)** - EBITDA increased to $12.9 million from $10.2 million year-over-year [3]. - Sales volume slightly decreased to 34.9 million pounds from 35.5 million pounds [3]. - Net sales were $119.4 million, down 2% from $121.8 million in the prior year [3]. - **PE Films** - EBITDA surged to $10.1 million from $0.8 million year-over-year [5]. - Sales volume rose significantly to 10.5 million pounds from 6.2 million pounds [5]. - Net sales increased by 83.4% to $29.2 million from $15.9 million in the previous year [5]. - **Flexible Packaging Films (Terphane)** - EBITDA improved to $3.2 million from $0.2 million year-over-year [6]. - Sales volume increased to 25.1 million pounds from 23.7 million pounds [6]. - Net sales rose 4% to $34.5 million from $33.2 million in the prior year [6]. Orders and Market Conditions - Net new orders increased by 17% year-over-year, although open orders remain below pre-pandemic levels [4]. Balance Sheet Position - As of June 30, 2024, cash and cash equivalents were $3.5 million, down from $10 million at the end of 2023 [7]. - Total assets increased slightly to $450.4 million from $446.5 million at the end of 2023 [7]. - Shareholders' equity rose to $160 million from $155.7 million [7]. Cash Flows - Operating cash flows for the first half of 2024 were $7.3 million, a decrease from $22.7 million in the same period of 2023 [8]. Other Developments - Tredegar is in the process of selling its Terphane business to Oben Group, with expected after-tax net cash proceeds of $85 million pending regulatory approval [9].