What changed in this filing

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Item 1. Financial Statements

2025-08-08 compared with 2025-05-08 · 243 added, 106 removed, 439 unchanged (44% of the section changed)

3 unchanged sentences

(In Thousands, Except Share Data)

March 31, December 31,

June 30, December 31,

Current assets:

31 unchanged sentences

Shareholders’ equity:

Common stock, no par value (authorized shares 150,000,000 , issued and outstanding 34,903,429 shares at March 31, 2025 and 34,661,272 shares at December 31, 2024)

Common stock, no par value (authorized shares 150,000,000 , issued and outstanding 34,876,616 shares at June 30, 2025 and 34,661,272 shares at December 31, 2024)

64,561 63,590

Common stock held in trust for savings restoration plan ( 118,543 shares at March 31, 2025 and December 31, 2024)

Common stock held in trust for savings restoration plan ( 118,543 shares at June 30, 2025 and December 31, 2024)

( 2,233 ) ( 2,233 )

10 unchanged sentences

(In Thousands, Except Per Share Data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Revenues and other items:

31 unchanged sentences

(In Thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Net income (loss) $ 1,731 $ 8,792

Other comprehensive income (loss):

Unrealized foreign currency translation adjustment ($ 0 tax in 2025 and net of tax expense of $ 221 in 2024)

Derivative financial instruments adjustment (net of tax benefit of $ 68 in 2025 and net of tax benefit of $ 140 in 2024)

Unrealized foreign currency translation adjustment ($ 0 tax in 2025 and net of tax benefit of $ 691 in 2024)

Derivative financial instruments adjustment (net of tax expense of $ 171 in 2025 and net of tax benefit of $ 253 in 2024)

Amortization of prior service costs and net gains or losses (net of tax benefit of $ 14 in 2025 and net of tax benefit of $ 8 in 2024)

( 49 ) ( 28 )

Other comprehensive income (loss) 595 ( 6,177 )

Comprehensive income (loss) $ 2,326 $ 2,615

Six Months Ended June 30,

Net income (loss) $ 11,832 $ 12,080

Other comprehensive income (loss):

Unrealized foreign currency translation adjustment ($ 0 tax in 2025 and net of tax benefit of $ 470 in 2024)

Derivative financial instruments adjustment (net of tax expense of $ 103 in 2025 and net of tax benefit of $ 393 in 2024)

398 ( 1,365 )

Amortization of prior service costs and net gains or losses (net of tax benefit of $ 38 in 2025 and net of tax benefit of $ 16 in 2024)

6 unchanged sentences

(In Thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

7 unchanged sentences

Stock-based compensation expense 919 1,086

(Gain) loss on the sale of divested business ( 9,657 ) —

Gain on investment in kaléo — ( 144 )

Gain on the sale of assets ( 1,492 ) —

Gain on the sale of divested business ( 9,657 ) —

Changes in assets and liabilities:

11 unchanged sentences

Proceeds from the sale of Terphane 9,835 —

Proceeds on sale of investment in kaléo — 144

Proceeds from the sale of assets 1,904 83

3 unchanged sentences

Debt principal payments ( 87,494 ) ( 345,140 )

Debt financing costs ( 1,272 ) ( 587 )

Net cash provided by (used in) financing activities ( 569 ) ( 4,909 )

7 unchanged sentences

(In Thousands, Except Share and Per Share Data)

The following summarizes the changes in shareholders’ equity for the three month period ended March 31, 2025:

The following summarizes the changes in shareholders’ equity for the three month period ended June 30, 2025:

Common Stock Retained Earnings Trust for Savings Restoration Plan Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

Balance April 1, 2025

$ 64,151 $ 123,513 $ ( 2,233 ) $ 5,939 $ 191,370

Net income (loss) — 1,731 — — 1,731

Foreign currency translation adjustment — — — 49 49

Derivative financial instruments adjustment — — — 595 595

Amortization of prior service costs and net gains or losses — — — ( 49 ) ( 49 )

Stock-based compensation expense 769 — — — 769

Repurchase of employee common stock for tax withholdings ( 359 ) — — — ( 359 )

Balance June 30, 2025

$ 64,561 $ 125,244 $ ( 2,233 ) $ 6,534 $ 194,106

The following summarizes the changes in shareholders’ equity for the six month period ended June 30, 2025:

Common Stock Retained Earnings Trust for Savings Restoration Plan Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity

Balance January 1, 2025

5 unchanged sentences

Stock-based compensation expense 1,560 — — — 1,560

Balance March 31, 2025

Repurchase of employee common stock for tax withholdings ( 589 ) — — — ( 589 )

Balance June 30, 2025

$ 64,561 $ 125,244 $ ( 2,233 ) $ 6,534 $ 194,106

The following summarizes the changes in shareholders’ equity for the three month period ended March 31, 2024:

The following summarizes the changes in shareholders’ equity for the three month period ended June 30, 2024:

Stock Retained

3 unchanged sentences

Shareholders’

Balance at April 1, 2024 $ 61,959 $ 181,265 $ ( 2,233 ) $ ( 84,176 ) $ 156,815

Net income (loss) — 8,792 — — 8,792

Foreign currency translation adjustment — — — ( 5,288 ) ( 5,288 )

Derivative financial instruments adjustment — — — ( 861 ) ( 861 )

Amortization of prior service costs and net gains or losses — — — ( 28 ) ( 28 )

Stock-based compensation expense 534 — — — 534

Balance at June 30, 2024 $ 62,493 $ 190,057 $ ( 2,233 ) $ ( 90,353 ) $ 159,964

The following summarizes the changes in shareholders’ equity for the six month period ended June 30, 2024:

Stock Retained

Earnings Trust for

Plan Accumulated Other

Comprehensive Income (Loss) Total

Shareholders’

Balance at January 1, 2024 $ 61,606 $ 177,977 $ ( 2,233 ) $ ( 81,697 ) $ 155,653

5 unchanged sentences

Repurchase of employee common stock for tax withholdings ( 226 ) — — — ( 226 )

Balance at March 31, 2024 $ 61,959 $ 181,265 $ ( 2,233 ) $ ( 84,176 ) $ 156,815

Balance at June 30, 2024 $ 62,493 $ 190,057 $ ( 2,233 ) $ ( 90,353 ) $ 159,964

See accompanying notes to the condensed consolidated financial statements.

2 unchanged sentences

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In the opinion of management, the accompanying condensed consolidated financial statements of Tredegar Corporation and its subsidiaries (“Tredegar,” “the Company,” “we,” “us” or “our”) contain all adjustments necessary to state fairly, in all material respects, Tredegar’s condensed consolidated financial position as of March 31, 2025, the condensed consolidated results of operations for the three months ended March 31, 2025 and 2024, the condensed consolidated cash flows for the three months ended March 31, 2025 and 2024, and the condensed consolidated changes in shareholders’ equity for the three months ended March 31, 2025 and 2024, in accordance with U.S.

In the opinion of management, the accompanying condensed consolidated financial statements of Tredegar Corporation and its subsidiaries (“Tredegar,” “the Company,” “we,” “us” or “our”) contain all adjustments necessary to state fairly, in all material respects, Tredegar’s condensed consolidated financial position as of June 30, 2025, the condensed consolidated results of operations for the three and six months ended June 30, 2025 and 2024, the condensed consolidated cash flows for the six months ended June 30, 2025 and 2024, and the condensed consolidated changes in shareholders’ equity for the three and six months ended June 30, 2025 and 2024, in accordance with U.S.

generally accepted accounting principles (“GAAP”).

1 unchanged sentence

The Company operates on a calendar fiscal year except for the Aluminum Extrusions segment, which operates on a 52/53-week fiscal year basis.

As such, the fiscal first quarter for 2025 and 2024 for this segment references 13-week periods ended March 30, 2025 and March 31, 2024, respectively.

As such, the fiscal second quarter for 2025 and 2024 for this segment references 13-week periods ended June 29, 2025 and June 30, 2024, respectively.

The Company does not believe the impact of reporting the results of this segment as stated above is material to the consolidated financial results.

1 unchanged sentence

As a result, the Company’s cash and cash equivalents declined by $ 3.6 million as of December 31, 2024 since the Company made payments to the Aluminum Extrusions segment to fund its working capital during the intervening period.

There was no intercompany funding with Aluminum Extrusions between June 29, 2025 and June 30, 2025.

The condensed consolidated financial statements as of December 31, 2024 that is included herein was derived from the audited consolidated financial statements provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”) but does not include all disclosures required by GAAP.

These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the 2024 Form 10-K.

The results of operations for the three months ended March 31, 2025, are not necessarily indicative of the results to be expected for the full year.

The results of operations for the three and six months ended June 30, 2025, are not necessarily indicative of the results to be expected for the full year.

Sale of Flexible Packaging Films

16 unchanged sentences

The amendments in this ASU will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold.

ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions.

ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for

significant individual jurisdictions.

This ASU is effective for annual periods beginning after December 15, 2024;

adoption is permitted.

The Company is currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.

early adoption is permitted.

The Company will adopt this ASU on a prospective basis and continues to evaluate additional disclosures that may be required in its Annual Report on Form 10-K for the year ended December 31, 2025.

In November 2024, the FASB issued ASU 2024-03 to improve the disclosures about public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions.

4 unchanged sentences

ACCOUNTS AND OTHER RECEIVABLES

As of March 31, 2025 and December 31, 2024, accounts and other receivables, net include the following:

(In thousands) March 31, 2025 December 31, 2024

As of June 30, 2025 and December 31, 2024, accounts and other receivables, net include the following:

(In thousands) June 30, 2025 December 31, 2024

Customer receivables $ 78,646 $ 64,094

4 unchanged sentences

The components of inventories are as follows:

(In thousands) March 31, 2025 December 31, 2024

(In thousands) June 30, 2025 December 31, 2024

Finished goods $ 14,852 $ 15,051

11 unchanged sentences

Effective December 31, 2005, further participation in this plan was terminated and benefit accruals for existing participants were frozen.

Pension expense recognized for this plan was immaterial in the three months ended March 31, 2025 and 2024.

Pension expense recognized for this plan was immaterial in the three and six months ended June 30, 2025 and 2024.

This information has been included in the pension benefit table below.

The components of net periodic benefit cost for the pension and other postretirement benefit programs reflected in the condensed consolidated statements of income for the three months ended March 31, 2025 and 2024, are shown below:

The components of net periodic benefit cost for the pension and other postretirement benefit programs reflected in the condensed consolidated statements of income for the three and six months ended June 30, 2025 and 2024, are shown below:

Pension Benefits Other Post-Retirement Benefits

Three Months Ended March 31, Three Months Ended March 31,

Three Months Ended June 30, Three Months Ended June 30,

(In thousands) 2025 2024 2025 2024

3 unchanged sentences

Net periodic benefit cost $ 25 $ 25 $ 2 $ 29

Pension and other postretirement liabilities were $ 6.5 million and $ 6.6 million at March 31, 2025 and December 31, 2024, respectively ($ 0.6 million included in “Accrued expenses” at March 31, 2025 and December 31, 2024 with the remainder included in “Pension and other postretirement benefit obligations, net” in the condensed consolidated balance sheets).

Pension Benefits Other Post-Retirement Benefits

Six Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 2025 2024

Service cost $ — $ — $ 4 $ 5

Interest cost 39 38 136 137

Amortization of prior service costs, (gains) losses and net transition asset 10 11 ( 186 ) ( 82 )

Net periodic benefit cost $ 49 $ 49 $ ( 46 ) $ 60

Pension and other postretirement liabilities were $ 6.4 million and $ 6.6 million at June 30, 2025 and December 31, 2024, respectively ($ 0.6 million included in “Accrued expenses” at June 30, 2025 and December 31, 2024 with the remainder included in “Pension and other postretirement benefit obligations, net” in the condensed consolidated balance sheets).

Tredegar funds its other postretirement benefits on a claims-made basis;

3 unchanged sentences

Diluted earnings per share is computed by dividing net income (loss) by the weighted average common and potentially dilutive common equivalent shares outstanding, determined as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 2025 2024

3 unchanged sentences

Incremental shares attributable to stock options and restricted stock are computed under the treasury stock method using the average market price during the related period.

Average out-of-the-money options to purchase shares that were excluded from the calculation of incremental shares attributable to stock options and restricted stock were 1,325,890 for the three months ended March 31, 2025.

Average out-of-the-money options to purchase shares that were excluded from the calculation of incremental shares attributable to stock options and restricted stock were 2,870,670 for the three months ended March 31, 2024.

Average out-of-the-money options to purchase shares that were excluded from the calculation of incremental shares attributable to stock options and restricted stock were 1,245,367 and 1,285,628 for the three and six months ended June 30, 2025, respectively.

Average out-of-the-money options to purchase shares that were excluded from the calculation of incremental shares attributable to stock options and restricted stock were 2,427,051 and 2,648,861 for the three and six months ended June 30, 2024, respectively.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2025.

The changes in accumulated other comprehensive income (loss) by component for the three months ended June 30, 2025.

(In thousands) Foreign Currency Translation Gain (Loss) on Derivative Financial Instruments Pension & Other Postretirement Benefit Adjust Total Accumulated Other Comprehensive Income (Loss)

Balance at April 1, 2025 $ 5,132 $ 70 $ 737 $ 5,939

Other comprehensive income (loss) 48 754 — 802

Income tax (expense) benefit — ( 168 ) — ( 168 )

Other comprehensive income (loss), net of tax 48 586 — 634

Reclassification adjustment to net income (loss) — 13 ( 63 ) ( 50 )

Income tax (expense) benefit — ( 3 ) 14 11

Reclassification adjustment to net income (loss), net of tax — 10 ( 49 ) ( 39 )

Other comprehensive income (loss), net of tax 48 596 ( 49 ) 595

Balance at June 30, 2025

$ 5,180 $ 666 $ 688 $ 6,534

The changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2025.

(In thousands) Foreign Currency Translation Gain (Loss) on Derivative Financial Instruments Pension & Other Postretirement Benefit Adjust Total Accumulated Other Comprehensive Income (Loss)

Balance at January 1, 2025 $ 5,105 $ 268 $ 826 $ 6,199

6 unchanged sentences

Other comprehensive income (loss), net of tax 75 398 ( 138 ) 335

Balance at March 31, 2025

Balance at June 30, 2025

$ 5,180 $ 666 $ 688 $ 6,534

The changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2024.

The changes in accumulated other comprehensive income (loss) by component for the three months ended June 30, 2024.

(In thousands) Foreign Currency Translation Gain (Loss) on Derivative Financial Instruments Pension & Other Postretirement Benefit Adjust Total Accumulated Other Comprehensive Income (Loss)

Balance at April 1, 2024 $ ( 84,985 ) $ 297 $ 512 $ ( 84,176 )

Other comprehensive income (loss) ( 5,979 ) ( 1,981 ) — ( 7,960 )

Income tax (expense) benefit 691 430 — 1,121

Other comprehensive income (loss), net of tax ( 5,288 ) ( 1,551 ) — ( 6,839 )

Reclassification adjustment to net income (loss) — 866 ( 36 ) 830

Income tax (expense) benefit — ( 176 ) 8 ( 168 )

Reclassification adjustment to net income (loss), net of tax — 690 ( 28 ) 662

Other comprehensive income (loss), net of tax ( 5,288 ) ( 861 ) ( 28 ) ( 6,177 )

Balance at June 30, 2024

$ ( 90,273 ) $ ( 564 ) $ 484 $ ( 90,353 )

The changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2024.

(In thousands) Foreign Currency Translation Gain (Loss) on Derivative Financial Instruments Pension & Other Postretirement Benefit Adjust Total Accumulated Other Comprehensive Income (Loss)

Balance at January 1, 2024 $ ( 83,037 ) $ 801 $ 539 $ ( 81,697 )

6 unchanged sentences

Other comprehensive income (loss), net of tax ( 7,236 ) ( 1,365 ) ( 55 ) ( 8,656 )

Balance at March 31, 2024

Balance at June 30, 2024

$ ( 90,273 ) $ ( 564 ) $ 484 $ ( 90,353 )

8 unchanged sentences

The fixed-price firm sales commitments and related hedging instruments have durations generally no longer than 12 months.

The notional amount of aluminum futures contracts that hedged future purchases of aluminum to meet fixed-price forward sales contract obligations was $ 4.5 million ( 2.8 million pounds of aluminum) at March 31, 2025 and $ 4.3 million ( 3.1 million pounds of aluminum) at December 31, 2024.

The table below summarizes the location and gross amounts of aluminum futures contract fair values (Level 2) in the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

The notional amount of aluminum futures contracts that hedged future

purchases of aluminum to meet fixed-price forward sales contract obligations was $ 7.9 million ( 5.1 million pounds of aluminum) at June 30, 2025 and $ 4.3 million ( 3.1 million pounds of aluminum) at December 31, 2024.

The table below summarizes the location and gross amounts of aluminum futures contract fair values (Level 2) in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

(In thousands) Balance Sheet

4 unchanged sentences

Prepaid expenses and other $ 780 Prepaid expenses and other $ 172

Asset derivatives:

Aluminum futures contracts

Other assets 77 Other assets —

Liability derivatives:

1 unchanged sentence

Accrued expenses — Accrued expenses ( 57 )

Aluminum futures contracts Other non-current liabilities ( 23 ) Other non-current liabilities —

Net asset (liability) $ 857 $ 115

In the event that a counterparty to an aluminum fixed-price forward sales contract chooses not to take delivery of its aluminum extrusions, the customer is contractually obligated to compensate Aluminum Extrusions for any losses on the related aluminum futures and/or forward contracts through the date of cancellation.

The pre-tax effect on net income (loss) and other comprehensive income (loss) of derivative instruments classified as cash flow hedges and described in the previous paragraphs for the three month periods ended March 31, 2025 and 2024 is summarized in the table below:

The pre-tax effect on net income (loss) and other comprehensive income (loss) of derivative instruments classified as cash flow hedges and described in the previous paragraphs for the three and six month periods ended June 30, 2025 and 2024 is summarized in the table below:

Cash Flow Derivative Hedges

Three Months Ended March 31,

Three Months Ended June 30,

Aluminum Futures Contracts

3 unchanged sentences

Amount of pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) to net income (effective portion) $ ( 13 ) $ ( 1,028 )

As of March 31, 2025, the Company expects $ 0.1 million of unrealized after-tax gains on aluminum derivative instruments reported in accumulated other comprehensive income (loss) to be reclassified to earnings within the next 12 months.

For the three month periods ended March 31, 2025 and 2024, net gains or losses realized, from previously unrealized net gains or losses on hedges that had been discontinued, were not material.

Tredegar recorded tax expense (benefit) of $ 0.6 million on pre-tax income (loss) from continuing operations of $ 1.2 million in the first three months of 2025.

The effective tax rate in the first three months of 2025 was 46.2 % and 47.8 % in the first three months of 2024.

The effective tax rate in the first three months of 2025 was impacted by lower taxable discrete items and a lower projected annual effective tax rate offset by the impact of lower book income.

Six Months Ended June 30,

Aluminum Futures Contracts

Amount of pre-tax gain (loss) recognized in other comprehensive income (loss) $ 711 $ 46

Location of gain (loss) reclassified from accumulated other comprehensive income (loss) into net income (effective portion) Cost of goods sold Cost of goods sold

Amount of pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) to net income (effective portion) $ ( 31 ) $ ( 509 )

As of June 30, 2025, the Company expects $ 0.6 million of unrealized after-tax gains on aluminum derivative instruments reported in accumulated other comprehensive income (loss) to be reclassified to earnings within the next 12 months.

For the three and six month periods ended June 30, 2025 and 2024, net gains or losses realized, from previously unrealized net gains or losses on hedges that had been discontinued, were not material.

Tredegar recorded tax expense (benefit) of $ 1.6 million on pre-tax income (loss) from continuing operations of $ 4.1 million in the first six months of 2025.

The effective tax rate in the first six months of 2025 was 38.4 % and 16.6 % in the first six months of 2024.

The effective tax rate in the first six months of 2025 was impacted by taxable discrete items, including stock-based compensation, and lower book income.

On July 4, 2025, new U.S.

tax legislation was signed into law (known as the "One Big Beautiful Bill Act" or "OBBBA") which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025.

In addition, the OBBBA makes changes to certain U.S.

corporate tax provisions, which have various effective dates.

The Company is currently evaluating the impact of the new legislation but does not expect it to have a material impact on the results of operations.

BUSINESS SEGMENTS

10 unchanged sentences

This measure is separately included in the financial information regularly provided to the CODM.

The following tables present segment revenue, segment profit (loss), and significant expenses for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025

The following tables present segment revenue, segment profit (loss), and significant expenses for the three months ended June 30, 2025 and 2024:

Three Months Ended June 30, 2025

(In thousands) Aluminum Extrusions PE Films Total

24 unchanged sentences

Includes corporate depreciation and amortization.

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

(In thousands) Aluminum Extrusions PE Films Total

8 unchanged sentences

8,972 2,791 11,763

( 172 ) ( 25 ) ( 197 )

EBITDA from ongoing operations $ 12,907 $ 10,133 $ 23,040

4 unchanged sentences

Interest expense 1,139

Gain on investment in kaleo, Inc.

Corporate expenses, net 3

7 unchanged sentences

Includes corporate depreciation and amortization.

The following table presents identifiable assets by segment at March 31, 2025 and December 31, 2024:

(In thousands) March 31, 2025 December 31, 2024

The following tables present segment revenue, segment profit (loss), and significant expenses for the six months ended June 30, 2025 and 2024:

Six Months Ended June 30, 2025

(In thousands) Aluminum Extrusions PE Films Total

Net Sales $ 281,999 $ 50,134 $ 332,133

Reconciliation of revenue:

Add back freight 11,720

Sales as shown in the consolidated statements of income (loss) $ 343,853

Variable costs $ 219,582 $ 23,664 $ 243,246

Manufacturing fixed costs 1

22,973 6,702 29,675

Selling, general and administrative costs 1

19,541 5,459 25,000

1,462 76 1,538

EBITDA from ongoing operations $ 18,441 $ 14,233 $ 32,674

Reconciliation of profit (loss):

Depreciation and amortization 10,799

Plant shutdowns, asset impairments, restructurings and other 1,224

Interest income 11

Interest expense 2,798

Corporate expenses, net 3

Income (loss) from continuing operations before income tax 4,060

Income tax expense (benefit) 1,560

Net income (loss) from continuing operations 2,500

Income (loss) from discontinued operations, net of tax 9,332

Net income (loss) $ 11,832

Excludes related depreciation and amortization.

Includes segment allocated employee compensation benefit expenses.

Includes corporate depreciation and amortization.

Six Months Ended June 30, 2024

(In thousands) Aluminum Extrusions PE Films Total

Net Sales $ 233,636 $ 53,932 $ 287,568

Reconciliation of revenue:

Add back freight 10,344

Sales as shown in the consolidated statements of income (loss) $ 297,912

Variable costs $ 172,610 $ 25,228 $ 197,838

Manufacturing fixed costs 1

19,507 6,336 25,843

Selling, general and administrative costs 1

15,770 5,307 21,077

EBITDA from ongoing operations $ 25,447 $ 17,037 $ 42,484

Reconciliation of profit (loss):

Depreciation and amortization 11,633

Plant shutdowns, asset impairments, restructurings and other 3,400

Interest income 25

Interest expense 2,323

Gain on investment in kaleo, Inc.

Corporate expenses, net 3

Income (loss) from continuing operations before income tax 14,120

Income tax expense (benefit) 2,346

Net income (loss) from continuing operations 11,774

Income (loss) from discontinued operations, net of tax 306

Net income (loss) $ 12,080

Excludes related depreciation and amortization.

Includes segment allocated employee compensation benefit expenses.

Includes corporate depreciation and amortization.

The following table presents identifiable assets by segment at June 30, 2025 and December 31, 2024:

(In thousands) June 30, 2025 December 31, 2024

Aluminum Extrusions $ 266,886 $ 247,205

5 unchanged sentences

Total $ 371,585 $ 356,357

The following table presents depreciation and amortization for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

The following table presents depreciation and amortization for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 2025 2024

5 unchanged sentences

Total $ 5,372 $ 6,589 $ 10,897 $ 13,305

The following table presents capital expenditures for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

The following table presents capital expenditures for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 2025 2024

4 unchanged sentences

Total $ 2,681 $ 2,321 $ 5,639 $ 4,782

The following tables disaggregate the Company’s revenue by geographic area and product group for the three months ended March 31, 2025 and 2024:

The following tables disaggregate the Company’s revenue by geographic area and product group for the three and six months ended June 30, 2025 and 2024:

Net Sales by Geographic Area (a)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 2025 2024

4 unchanged sentences

Canada 2,997 1,458 5,170 5,122

Europe 30 — 37 25

Operations outside the United States:

Asia 296 104 516 266

Total $ 172,963 $ 148,610 $ 332,133 $ 287,568

2 unchanged sentences

Amounts associated with this intercompany tolling arrangement are reported in the table above as export sales from the U.S.

to Asia, and include net sales of $ 6.6 million and $ 6.1 million in the first quarter of 2025 and 2024, respectively.

to Asia, and include net sales of $ 6.3 million and $ 6.7 million in the second quarter of 2025 and 2024, respectively, and $ 12.9 million and $ 12.8 million in the first six months of 2025 and 2024, respectively.

Net Sales by Product Group

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 2025 2024

12 unchanged sentences

Total $ 172,963 $ 148,610 $ 332,133 $ 287,568

In December 2023, the Company entered into Amendment No.

3 to the Second Amended and Restated Credit Agreement (the "Credit Agreement”), which, prior to the ABL Adjustment Date (as defined below), provided the Company with a $ 180 million senior secured asset-based revolving credit facility.

In April 2024, the Company entered into Amendment No.

4 to the Credit Agreement (as amended by Amendment No.

3 and Amendment No.

4, the “ABL Facility”) that, among other items:

(i) moved the ABL Adjustment Date (defined below) from March 31, 2025 to September 30, 2025 and (ii) required weekly reporting of the borrowing base financial covenant until the ABL Adjustment Date.

In May 2025, the Company entered into Amendment No.

5 (“Amendment No.

5”) to the Second Amended and Restated Credit Agreement (the "ABL Facility"), which provides the Company with a $ 125 million senior secured asset-based revolving credit facility.

The ABL Facility is secured by substantially all assets of the Company and its domestic subsidiaries, including equity in certain material first-tier foreign subsidiaries.

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, owned real properties, and owned machinery and equipment.

Upon the earlier of September 30, 2025 or the date the Company received the proceeds from the sale of Terphane (the “ABL Adjustment Date”), the $ 180 million ABL Facility was to be reduced to $ 125 million.

On November 1, 2024, with the closing of the sale of Terphane, the ABL Adjustment Date occurred.

The ABL Facility was to expire on June 30, 2026.

As of March 31, 2025, funds available to borrow under the ABL Facility was $ 50.9 million, or 40.7 % of the aggregate commitment of $ 125 million.

Amendment No.

5 extended the maturity date of the ABL Facility to May 6, 2030.

As of June 30, 2025, funds available to borrow under the ABL Facility was $ 50.6 million, or 40.5 % of the aggregate commitment of $ 125 million.

Outstanding borrowings accrue interest at the rates elected by the Company depending on the type of loan and denomination of such borrowing.

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Dollars, the Company may elect interest rates at:

• Alternate Base Rate (“ABR”) Spread (as defined in the ABL Facility) is determined in accordance with an excess availability-based pricing grid.

ABR is defined, in part, as the greater of (a) the Prime Rate in effect on such day, (b) the Federal Reserve Bank of New York Rate in effect on such day plus ½ of 1% and (c) the Adjusted Term Secured Overnight Financing Rate ("SOFR Rate") (defined below) for a one-month period plus 1 %;

• The Term Benchmark Spread (as defined in the ABL Facility) is determined in accordance with an excess availability-based pricing grid.

• Alternate Base Rate (“ABR”) plus the applicable ABR Spread (as defined in the ABL Facility) determined in accordance with an excess availability-based pricing grid.

ABR is defined, in part, as the greater of (a) the Prime Rate in effect on such day, (b) the Federal Reserve Bank of New York Rate in effect on such day plus ½ of 1% and (c) the Adjusted Term SOFR Rate (defined below) for a one-month period plus 1 %;

• The Adjusted Term Secured Overnight Financing Rate ("SOFR") Rate plus the applicable Term Benchmark Spread (as defined in the ABL Facility) determined in accordance with an excess availability-based pricing grid.

Adjusted Term SOFR Rate is defined as the Term SOFR Rate plus 0.10 %, subject to an initial Floor (as defined in the ABL Facility) of 0 %.

Based upon the quarterly average of daily availability under the ABL Facility, the interest rate pricing grid applicable after the ABL Adjustment Date is as follows:

As amended by Amendment No.

5, based upon the quarterly average of daily availability under the ABL Facility, the interest rate pricing grid, is as follows:

Pricing under the ABL Facility (Basis Points)

Quarter Average of Daily Availability Term Benchmark

Spread Commitment

> 66% of $125 million aggregate commitment 175.0 75.0

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≤ 33% of $125 million aggregate commitment 225.0 125.0

The financial covenant is a minimum fixed charge coverage ratio (as defined in the ABL Facility) of 1.00:1.00 that will be triggered in the event that availability is less than 10 % of the $ 125 million commitment amount and continuing thereafter until availability is greater than 10 % of the $ 125 million commitment amount for 30 consecutive days.

If at any time the availability under the ABL Facility is less than 20 % of the maximum aggregate principal amount in effect at such time or an Event of Default occurs, the Company’s current monthly reporting requirements to lenders changes to a weekly cadence until the Event of Default is waived, cured or the availability under the ABL Facility is above 20 % of the maximum aggregate principal amount for 30 consecutive days.

A Cash Dominion Period goes into effect if availability under the ABL Facility falls below 12.5 % of the aggregate commitment or an Event of Default (as defined in the ABL Facility) occurs.

The Company would then be subject to the Cash Dominion Period until the Event of Default is waived, cured or the availability under the ABL Facility is above 12.5 % of the maximum aggregate principal amount for 30 consecutive days.

Pursuant to Amendment No.

5, the commitment fee was decreased from 0.40 % to (i) 0.25 % if the Average Usage (as defined in the ABL Facility) is greater than or equal to 50 % and (ii) 0.375 % if Average Usage is less than 50 %.

The borrowing base calculation was amended by Amendment No.

5 as follows:

(i) real property is no longer eligible to be included in the borrowing base, (ii) the PP&E Component (as defined in the ABL Facility), as included in the borrowing base, was decreased to the lesser of (a) 60 % of the Net Orderly Liquidation Value (as defined in the ABL Facility) in place of eligible equipment and (b) 30 % of the borrowing base and (iii) the amount of eligible cash included in the borrowing base is now capped at 15 % of the borrowing base.

The financial covenant is a minimum fixed charge coverage ratio (as defined in the ABL Facility) of 1.00:1.00 that will be triggered in the event that availability is less than the greater of (x) 10 % of the Line Cap (as defined in the ABL Facility) and (y) $ 10 million and will continue until availability is equal to or greater than the greater of (x) 10 % of the Line Cap and (y) $ 10 million for 30 consecutive days, as long as no events of default are continuing.

If at any time the availability under the ABL facility is less than the greater of (x) 20 % of the Line Cap and (y) $ 20 million and until such subsequent date, if any, on which availability is greater than the greater of (x) 20 % of the Line Cap and (y) $ 20 million for a period of thirty (30) consecutive calendar days, the Company’s current monthly reporting requirements to lenders changes to a weekly cadence.

A Cash Dominion Period (as defined in the ABL Facility) is now triggered when (x) availability falls below the greater of (i) 12.5 % of the Line Cap and (ii) $ 12.6 million or (y) during the continuation of an event of default and continuing until (x) availability is above the greater of (i) 12.5 % of the Line Cap and (ii) $ 12.6 million for 30 consecutive days and (y) no events of default are continuing.

During a Cash Dominion Period, receipts that have not yet been applied to the ABL Facility are classified as restricted cash in the Company’s consolidated balance sheets.

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Accordingly, the Company believes the likelihood that lenders would exercise the subjective acceleration clause whereby prohibiting future borrowings is remote.

As of March 31, 2025, the Company was in compliance with all debt covenants.

On May 6, 2025, the Company entered into Amendment No.

5 (the "Amended ABL Facility") to the Credit Agreement.

The material terms of the Amended ABL Facility include the following:

• Provides for a $ 125 million asset-based facility.

• The maturity date was extended to May 6, 2030.

• The interest rate margins were reduced to a range between 1.75 %- 2.25 % for any Term Benchmark Loan and any RFR Loan (each as defined in the Amended ABL Facility) and 0.75 %- 1.25 % for any ABR Loan (as defined in the Amended ABL Facility), in each case, based on average quarterly availability.

• The commitment fee was decreased from 0.40 % to (i) 0.25 % if the Average Usage (as defined in the Amended ABL Facility) is greater than or equal to 50 % and (ii) 0.375 % if Average Usage is less than 50 %.

• The borrowing base calculation was amended as follows:

(i) real property is no longer eligible to be included in the borrowing base, (ii) the PP&E Component (as defined in the Amended ABL Facility), as included in the borrowing base, was changed to the lesser of (a) 60 % of the Net Orderly Liquidation Value (as defined in the Amended ABL Facility) in place of eligible equipment and (b) 30 % of the borrowing base and (iii) the amount of eligible cash included in the borrowing base is now capped at 15 % of the borrowing base.

• A Cash Dominion Period is now triggered when (x) availability falls below the greater of (i) 12.5 % of the Line Cap (as defined in the Amended ABL Facility) and (ii) $ 12.6 million or (y) during the continuation of an event of default and continuing until (x) availability is above the greater of (i) 12.5 % of the Line Cap and (ii) $ 12.6 million for 30 consecutive days and (y) no events of default are continuing.

• Compliance with the fixed charge coverage ratio of 1.00 to 1.00 is now triggered upon the occurrence of availability being less than the greater of (x) 10 % of the Line Cap and (y) $ 10 million and will continue until availability is equal to or greater than the greater of (x) 10 % of the Line Cap and (y) $ 10 million for 30 consecutive days, as long as no events of default are continuing.

As of June 30, 2025, the Company was in compliance with all debt covenants.

PE Films Guangzhou Loan

On June 25, 2024, PE Films' business location in Guangzhou, China, Guangzhou Tredegar Film Products Co., Ltd.

In June 2024, PE Films' business location in Guangzhou, China, Guangzhou Tredegar Film Products Co., Ltd.

(“Guangzhou Tredegar”), entered into a 9.5 million Chinese Yuan revolving loan with the Industrial and Commercial Bank of China.

The loan matures on July 3, 2025.

The interest rate is the one year loan prime rate published by the National Interbank Funding Center for the working day immediately preceding the drawdown date, minus 0.45 %.

As of March 31, 2025, the interest rate on the outstanding loan balance was 2.90 %.

The revolving loan is secured by a mortgage contract listing the Guangzhou Tredegar factory building as collateral.

This loan matured on July 3, 2025.

The interest rate was the one year loan prime rate published by the National Interbank Funding Center for the working day immediately preceding the drawdown date, minus 0.45 %.

As of June 30, 2025, the interest rate on the outstanding loan balance was 2.90 %.

The revolving loan was secured by a mortgage contract listing the Guangzhou Tredegar factory building as collateral.

The mortgage contract has a maximum value of 30 million Chinese Yuan and is effective from June 25, 2024 through May 31, 2027.

As of March 31, 2025 and December 31, 2024, this loan is presented as current debt on the consolidated balance sheets.

Guangzhou Tredegar has the option to enter into additional loan contracts with the Industrial and Commercial Bank of China for the duration of the mortgage contract.

As of June 30, 2025 and December 31, 2024, this loan is presented as current debt on the consolidated balance sheets.

DISCONTINUED OPERATIONS

Flexible Packaging Films

On September 1, 2023, the Company entered into an agreement to sell Terphane, headquartered in Brazil, to Oben for net cash-free and debt-free base consideration of $ 116 million.

In September 2023, the Company entered into an agreement to sell Terphane, headquartered in Brazil, to Oben for net cash-free and debt-free base consideration of $ 116 million.

On November 1, 2024, Tredegar completed the sale of Terphane to Oben.

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The cash proceeds received by Tredegar at closing were after deducting net working capital adjustments and closing indebtedness ($ 20.5 million), escrow funds ($ 19.8 million), projected Brazil withholding taxes ($ 10.8 million), and transaction expenses ($ 4.4 million).

On February 28, 2025, the Company received $ 9.8 million from post-closing settlement of the transaction.

In February 2025, the Company received $ 9.8 million from post-closing settlement of the transaction.

The proceeds from the sale of Terphane were required to be used to pay down debt outstanding under the ABL Facility.

Upon completion of the sale, the Company recognized a pre-tax loss of $ 74.9 million for the year ended December 31, 2024, which included the realization of other comprehensive losses on foreign currency translation adjustments, net of gains on derivative financial instruments of $ 102.3 million previously reflected in accumulated other comprehensive income (loss).

The following table summarizes the financial results of discontinued operations reflected in the Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

The following table summarizes the financial results of discontinued operations reflected in the Condensed Consolidated Statements of Income (Loss) for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2025 2024 2025 2024

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Other income (expense), net — 1 — 3

— 36,296 — 68,062

Costs and expenses

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Interest expense 1

— 2,240 — 4,511

(Gain) loss on sale of business — — ( 9,657 ) —

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Income tax expense (benefit) 2

— 2,006 — 279

Income (loss) from discontinued operations, net of tax $ ( 97 ) $ ( 378 ) $ 9,332 $ 306

For the three months ended March 31, 2024, interest expense includes $ 0.6 million directly related to the $ 20 million of outstanding Terphane debt assumed by Oben.

An inconsequential income tax expense (benefit) was recognized during the three months ended March 31, 2025 primarily due to foreign tax credits generated from the final Brazilian withholding tax payment made during the period, which offset the tax liability on the income from discontinued operations.

For the three and six months ended June 30, 2024, interest expense includes $ 0.6 million and $ 1.2 million, respectively, directly related to the $ 20 million of outstanding Terphane debt assumed by Oben.

An inconsequential income tax expense (benefit) was recognized during the three and six months ended June 30, 2025 primarily due to foreign tax credits generated from the final Brazilian withholding tax payment made during the periods, which offset the tax liability on the income from discontinued operations.

Interest expense allocated to discontinued operations was determined by applying the ABL Facility weighted-average interest rate to the Terphane sale proceeds, as the sale proceeds were required to be used to pay down debt outstanding under the ABL Facility.

The assets and liabilities of the discontinued operations reflected in the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively were as follows:

(In thousands) March 31, 2025 December 31, 2024

The assets and liabilities of the discontinued operations reflected in the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, respectively, were as follows:

(In thousands) June 30, 2025 December 31, 2024

Deferred income taxes $ — $ 126

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The following table provides significant operating, investing and financing cash flow information for discontinued operations:

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands) 2025 2024

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Depreciation and amortization $ — $ 1,483

Gain (loss) on the sale of divested business ( 9,657 ) —

Gain on the sale of divested business ( 9,657 ) —

Total $ ( 9,657 ) $ 1,483

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements