Core Viewpoint - Tredegar Corporation's stock has significantly underperformed the market following disappointing earnings results for Q2 2025, with a notable decline in net income and EBITDA despite an increase in total sales [1][2]. Financial Performance - For Q2 2025, Tredegar reported net income from continuing operations of $1.8 million (5 cents per share), down from $9.2 million (27 cents per share) a year earlier [1][2]. - Total sales increased by 16.4% year over year to $179.1 million, primarily driven by higher revenues in Aluminum Extrusions, but offset by weaker performance in PE Films [2]. - Consolidated EBITDA from ongoing operations fell to $10 million, a decrease of 43.2% from $17.6 million in the previous year [2]. Segment Performance - In Aluminum Extrusions, sales volume rose 16.6% to 40.7 million pounds, with net sales climbing 24.2% to $148.4 million, benefiting from increased shipments in non-residential building and construction [3]. - However, EBITDA from ongoing operations in this segment dropped 28.1% to $9.3 million due to manufacturing inefficiencies and higher labor costs [3]. - PE Films experienced a 7.1% decline in sales volume to 9.8 million pounds and a 15.8% revenue drop to $24.6 million, with EBITDA decreasing 33.8% to $6.7 million [3]. Management Insights - CEO John Steitz highlighted that while sales volume in Aluminum Extrusions improved, profitability was impacted by manufacturing inefficiencies, which are believed to be resolved [4]. - A slowdown in new orders was noted following the increase in Section 232 tariffs on aluminum extrusions, as customers paused purchases [4]. - For PE Films, performance was solid but below last year's exceptional levels, with the business avoiding tariff-related demand impacts so far [4]. Influencing Factors - The earnings decline was attributed to segment-specific challenges, including unfavorable manufacturing costs and lower labor productivity in Aluminum Extrusions [5]. - In PE Films, a pullback from last year's extraordinary demand in Surface Protection significantly impacted results, although cost improvements provided some cushion [5]. - Corporate expenses increased due to higher professional fees and incentive compensation [5]. Future Guidance - The company projected capital expenditures of $17 million for Aluminum Extrusions and $2 million for PE Films in 2025, focusing on productivity and operational continuity [6]. - Management anticipates a moderation in PE Films' performance in the second half of 2025, with ongoing tariff impacts and demand uncertainty affecting Aluminum Extrusions' order flow [6]. Balance Sheet and Developments - As of June 30, 2025, Tredegar's balance sheet showed total debt of $62.6 million and cash of $9.8 million, with net debt slightly improved from year-end 2024 [7]. - The company completed a five-year, $125 million asset-based lending facility earlier in the year, with approximately $51 million available for borrowing at quarter-end [7]. - Tredegar received $9.8 million from the post-closing settlement of the Terphane divestiture during the first quarter [7].

TREDEGAR REPORTS SECOND QUARTER 2025 RESULTS Mr. Steitz continued, "PE Films again had another good quarter albeit below the exceptional performance in the second quarter of last year. We believe that the second half performance in 2025 will moderate from the strong first half. To date, we have not experienced an adverse impact on customer demand related to tariff actions, but the situation remains fluid." Mr. Steitz concluded, "We believe that our balance sheet remains strong with plenty of liquidity avail ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended June 30, 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) FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or Other Jurisdiction of Incorporation or ...

Core Insights - Tredegar Corporation's shares have increased by 3.8% since the earnings report for Q1 2025, underperforming compared to the S&P 500's 4.5% growth during the same period [1] - The stock has shown a significant increase of 15.8% over the past month, outperforming the S&P 500's 8.8% growth [1] Financial Performance - For Q1 2025, Tredegar reported a net income from continuing operations of $0.02 per share, down from $0.08 per share in Q1 2024 [2] - Adjusted net income from ongoing operations decreased to $0.10 per share from $0.14 per share year-over-year [2] - Net sales reached $164.7 million, marking a 14.4% increase from $144 million in the same quarter last year [2] Segment Performance - **Aluminum Extrusions (Bonnell Aluminum)**: - Net sales increased by 17% year-over-year to $133.6 million, driven by a 12% rise in sales volume and higher metal costs [4] - EBITDA from ongoing operations fell by 27% to $9.2 million due to unfavorable sales mix, increased input costs, and higher labor and maintenance expenses [4] - Specialty products saw a volume growth of 52.8%, primarily from solar panel applications [4] - **PE Films**: - EBITDA improved by 8.9% to $7.5 million despite a 4% drop in sales volume [5] - Net sales increased by 3.2% to $25.5 million, supported by strong performance in surface protection films [5] Management Commentary - CEO John Steitz highlighted a recovery in Bonnell Aluminum, with a 36% year-over-year increase in net new orders, reaching the highest open orders in two years [6] - The new Section 232 tariffs on aluminum imports are expected to help regain market share lost to underpriced imports [6] - On PE Films, management anticipates normalization in demand in subsequent quarters, remaining cautious about global trade developments [7] Cost and Expense Analysis - The decline in Aluminum Extrusions' EBITDA was attributed to a lower spread between selling prices and metal costs, unfavorable manufacturing yields, and increased labor and maintenance expenses [8] - SG&A costs in this segment rose by 38.5%, primarily due to compensation, travel, and consulting fees [9] Guidance and Financial Position - For 2025, Tredegar forecasts capital expenditures of $17 million for Bonnell Aluminum and $3 million for PE Films [11] - Total debt decreased to $56.6 million as of March 31, 2025, from $61.9 million at the end of 2024, with a net leverage ratio of 1.1x [12] Other Developments - The company completed the sale of its Terphane business, resulting in a $9.4 million gain from discontinued operations [13] - Restructuring activities included the closure of the Richmond, VA, PE Films technical center [13]

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 ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Total assets increased to $374.2 million, with Q1 2025 sales up to $164.7 million, while net income from continuing operations declined, offset by a $9.4 million gain from discontinued operations [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $374.2 million, driven by increased current assets, with liabilities rising to $182.8 million and shareholders' equity to $191.4 million Condensed Consolidated Balance Sheet Highlights (In Thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $161,727 | $139,827 | | Inventories | $68,895 | $51,381 | | **Total assets** | **$374,217** | **$356,357** | | **Total current liabilities** | $103,803 | $91,708 | | ABL revolving facility | $56,000 | $60,600 | | **Total liabilities** | **$182,847** | **$175,389** | | **Total shareholders' equity** | **$191,370** | **$180,968** | [Condensed Consolidated Statements of Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Q1 2025 sales increased to $164.7 million, but net income from continuing operations decreased to $0.7 million, significantly boosted by a $9.4 million gain from discontinued operations to a total net income of $10.1 million Q1 2025 vs Q1 2024 Income Statement (In Thousands, Except Per Share Data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales | $164,738 | $143,972 | | Cost of goods sold | $135,643 | $115,106 | | Income from continuing operations before tax | $1,248 | $4,988 | | **Net income from continuing operations** | **$671** | **$2,604** | | Income from discontinued operations, net of tax | $9,430 | $684 | | **Net income (loss)** | **$10,101** | **$3,288** | | **Diluted earnings (loss) per share** | **$0.29** | **$0.10** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities used $5.0 million in cash, an improvement from Q1 2024, while investing activities provided $6.9 million, primarily from the Terphane sale, leading to a $3.4 million decrease in cash and equivalents Q1 2025 vs Q1 2024 Cash Flows (In Thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(5,006) | $(7,719) | | Net cash provided by (used in) investing activities | $6,878 | $(2,378) | | Net cash provided by (used in) financing activities | $(5,297) | $2,008 | | **Increase (decrease) in cash and cash equivalents** | **$(3,405)** | **$(8,663)** | | **Cash and cash equivalents at end of period** | **$3,657** | **$4,792** | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the Terphane sale as discontinued operations, segment performance showing varied EBITDA, and the subsequent amendment of the ABL Facility extending its maturity to 2030 * On **November 1, 2024**, the company completed the sale of its flexible packaging films business (Terphane), with all historical results now presented as discontinued operations[23](index=23&type=chunk) * In Q1 2025, the company received **$9.8 million** from the post-closing settlement of the Terphane transaction, recorded as income from discontinued operations[67](index=67&type=chunk)[70](index=70&type=chunk) * On **May 6, 2025**, the company amended its ABL Facility, extending the maturity date to **May 6, 2030**, reducing interest rate margins and modifying the borrowing base calculation[65](index=65&type=chunk)[129](index=129&type=chunk) Segment EBITDA from Ongoing Operations (In Thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Aluminum Extrusions | $9,160 | $12,540 | | PE Films | $7,520 | $6,904 | | **Total** | **$16,680** | **$19,444** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a decrease in Q1 2025 income from continuing operations, driven by lower Aluminum Extrusions EBITDA despite volume growth, while PE Films EBITDA improved, with overall liquidity supported by an amended ABL facility [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Consolidated sales increased by $20.8 million in Q1 2025, primarily from Aluminum Extrusions, though gross profit margin declined to 14.3% and SG&A expenses rose due to higher professional fees and incentive compensation * Sales in Q1 2025 increased by **$20.8 million** compared to Q1 2024, mainly due to a **$19.4 million** increase in net sales from the Aluminum Extrusions segment[91](index=91&type=chunk) * Consolidated gross profit margin decreased to **14.3%** in Q1 2025 from **16.6%** in Q1 2024, primarily due to lower spread and higher costs in Aluminum Extrusions, despite a favorable FIFO timing impact of **$1.7 million**[92](index=92&type=chunk) * SG&A expenses as a percentage of sales increased to **12.6%** in Q1 2025 from **11.6%** in Q1 2024, driven by higher professional fees and increased employee-related incentive compensation[93](index=93&type=chunk) [Segment Operations Review](index=24&type=section&id=Segment%20Operations%20Review) Aluminum Extrusions saw increased sales volume but a 27% EBITDA decline due to lower spreads, while PE Films' EBITDA rose by 8.9% driven by Surface Protection films, with strong demand noted in aluminum Aluminum Extrusions Performance - Q1 2025 vs Q1 2024 | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Sales volume (lbs in thousands) | 37,918 | 33,841 | 12.0% | | Net sales (in thousands) | $133,635 | $114,222 | 17.0% | | EBITDA from ongoing operations (in thousands) | $9,160 | $12,540 | (27.0)% | * Aluminum Extrusions' net new orders increased **36%** in Q1 2025, with open orders rising to **25 million pounds**, indicating a steady market recovery[102](index=102&type=chunk)[103](index=103&type=chunk) PE Films Performance - Q1 2025 vs Q1 2024 | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Sales volume (lbs in thousands) | 9,639 | 10,036 | (4.0)% | | Net sales (in thousands) | $25,537 | $24,735 | 3.2% | | EBITDA from ongoing operations (in thousands) | $7,520 | $6,904 | 8.9% | * PE Films' EBITDA improvement was driven by a **$1.5 million** increase in contribution from Surface Protection films, attributed to increased volume, favorable mix, and cost improvements[117](index=117&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company used $5.0 million in cash from operations, while investing activities provided $6.9 million, with working capital increasing due to higher receivables and inventories, and liquidity enhanced by an amended ABL facility extending to 2030 * Net cash used in operating activities was **$5.0 million** in Q1 2025, compared to **$7.7 million** used in Q1 2024[122](index=122&type=chunk) * Inventories increased by **$17.5 million** and accounts receivable by **$14.9 million** from December 31, 2024, reflecting higher business activity and raw material costs[126](index=126&type=chunk) * On **May 6, 2025**, the company amended its credit agreement, extending the ABL facility's maturity to **May 6, 2030**, and reducing interest rate margins[129](index=129&type=chunk) * As of **March 31, 2025**, **$50.9 million** was available to borrow under the ABL Facility[58](index=58&type=chunk)[128](index=128&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate, foreign currency, and commodity price volatility, utilizing hedging strategies for aluminum and pass-through mechanisms for raw material costs, though time lags can impact short-term profitability * The company has exposure to volatility in interest rates, polyethylene and polypropylene resin prices, aluminum ingot and scrap prices, energy prices, and foreign currencies[135](index=135&type=chunk) * The Aluminum Extrusions segment uses forward purchase commitments and futures contracts to hedge its exposure to aluminum price volatility for fixed-price forward sales contracts, generally with a duration of no more than **12 months**[137](index=137&type=chunk) * The PE Films segment has index-based pass-through arrangements for raw material costs, but some agreements have a **90-day** lag before price changes are passed through[147](index=147&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, the company's disclosure controls and procedures were deemed effective by management, with no material changes to internal control over financial reporting during Q1 2025 * The Company's Chief Executive Officer and Chief Financial Officer concluded that, as of **March 31, 2025**, the company's disclosure controls and procedures were effective[156](index=156&type=chunk) * There were no material changes in the Company's internal control over financial reporting during the quarter ended **March 31, 2025**[158](index=158&type=chunk) [Part II - Other Information](index=34&type=section&id=Part%20II%20-%20Other%20Information) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material updates or changes to the company's risk factors were reported from those previously disclosed in the 2024 Form 10-K * There are no material updates or changes to our risk factors previously disclosed in the **2024 Form 10-K**[159](index=159&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) During Q1 2025, no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement * During the three months ended **March 31, 2025**, no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[160](index=160&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) The report includes required CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, along with interactive data files (XBRL) * Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections **302** and **906**, as well as XBRL data files[161](index=161&type=chunk)

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]