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Tredegar Stock Rises 8% on Narrower Y/Y Loss in Q4, PE Films Unit Aids
TGTredegar (TG) ZACKS·2025-03-17 19:35

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 0.21pershareinQ42024,comparedtoalossof0.21 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 154million,drivenbygrowthintheAluminumExtrusionsandPEFilmssegments[3]FinancialPerformance−TheAluminumExtrusionssegment′srevenuesgrewby11.1154 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 26.4million,witha6.826.4 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 105.2million[8][9]ManagementCommentary−CEOJohnSteitzhighlightedstrongperformanceinbothsegmentsduringatypicallyweakquarterandnotedgrowthinnetnewordersforBonnellAluminuminearly2025[6]−Thecompanyimproveditsbalancesheet,reducingitsnetleverageratioto1.1Xfrom3.7Xattheendof2023,primarilyduetoacyclicalrecoveryandthesaleofTerphane[6][7]DebtandDivestiture−Totaldebtdecreasedto105.2 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 126.3millionayearearlier,reflectingdisciplinedcashmanagementandproceedsfromtheTerphanedivestiture[7][11]−ThedivestitureoftheTerphaneflexiblepackagingbusinesswascompleted,withanadditional126.3 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 17millionforAluminumExtrusionsand17 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]