Third Quarter 2025 Earnings Call Enabling the world's transition to sustainable materials USE OF PROJECTIONS. This presentation contains Origin's projected financial information. Such projected financial information is forward-looking and is for illustrative purposes only. It should not be relied upon as being indicative of future results. The assumptions and estimates underlying such projected financial information are inherently uncertain and are subject to many significant business, economic, competitive ...

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]