TREDEGAR CORP 10-Q

Item 1. Financial Statements. Tredegar Corporation Condensed Consolidated Balance Sheets (In Thousands, Except Share Data) (Unaudited) September 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 13,291 $ 7,062 Accounts and other receivables, net 87,931 64,817 Income taxes recoverable 284 — Inventories 62,006 51,381 Prepaid expenses and other 11,375 16,567 Total current assets 174,887 139,827 Property, plant and equipment, at cost 502,829 499,426 Less: accumulated depreciation ( 372,432 ) ( 362,394 ) Net property, plant and equipment 130,397 137,032 Right-of-use leased assets 13,267 14,635 Identifiable intangible assets, net 6,008 7,326 Goodwill 22,446 22,446 Deferred income taxes 29,671 32,517 Other assets 2,130 2,448 Noncurrent assets of discontinued operations — 126 Total assets $ 378,806 $ 356,357 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 79,247 $ 64,704 Accrued expenses 22,801 22,168 Lease liability, short-term 2,345 2,453 Short-term debt — 1,322 Income taxes payable 492 320 Current liabilities of discontinued operations — 741 Total current liabilities 104,885 91,708 Lease liability, long-term 11,472 12,993 ABL revolving facility 49,500 60,600 Pension and other postretirement benefit obligations, net 5,772 5,914 Deferred income tax liabilities 69 69 Other non-current liabilities 4,917 4,105 Total liabilities 176,615 175,389 Shareholders’ equity: Common stock, no par value (authorized shares 150,000,000 , issued and outstanding 34,892,602 shares at September 30, 2025 and 34,661,272 shares at December 31, 2024) 65,299 63,590 Common stock held in trust for savings restoration plan ( 118,542 shares at September 30, 2025 and 118,543 shares at December 31, 2024) ( 2,233 ) ( 2,233 ) Accumulated other comprehensive income (loss): Foreign currency translation adjustment 5,334 5,105 Gain (loss) on derivative financial instruments 834 268 Pension and other postretirement benefit adjustments 639 826 Retained earnings 132,318 113,412 Total shareholders’ equity 202,191 180,968 Total liabilities and shareholders’ equity $ 378,806 $ 356,357 See accompanying notes to the condensed consolidated financial statements. 2 Tredegar Corporation Condensed Consolidated Statements of Income (Loss) (In Thousands, Except Per Share Data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues and other items: Sales $ 194,942 $ 146,064 $ 538,796 $ 443,976 Other income (expense), net 4 ( 26 ) 1,381 304 194,946 146,038 540,177 444,280 Costs and expenses: Cost of goods sold 157,209 122,471 441,387 356,591 Freight 6,589 5,468 18,309 15,812 Selling, general and administrative 20,225 18,673 61,443 54,289 Research and development 147 301 504 424 Amortization of identifiable intangibles 440 440 1,319 1,339 Pension and postretirement benefits 27 54 30 163 Interest expense 768 1,192 3,566 3,515 Asset impairments and costs associated with exit and disposal activities, net of adjustments 418 — 435 587 Total 185,823 148,599 526,993 432,720 Income (loss) from continuing operations before income taxes 9,123 ( 2,561 ) 13,184 11,560 Income tax expense (benefit) 2,014 828 3,575 3,175 Net income (loss) from continuing operations 7,109 ( 3,389 ) 9,609 8,385 Income (loss) from discontinued operations, net of tax ( 35 ) ( 557 ) 9,297 ( 251 ) Net income (loss) $ 7,074 $ ( 3,946 ) $ 18,906 $ 8,134 Earnings (loss) per share: Basic: Continuing operations $ 0.20 $ ( 0.10 ) $ 0.28 $ 0.24 Discontinued operations — ( 0.01 ) 0.27 — Basic earnings (loss) per share $ 0.20 $ ( 0.11 ) $ 0.55 $ 0.24 Diluted: Continuing operations $ 0.20 $ ( 0.10 ) $ 0.28 $ 0.24 Discontinued operations — ( 0.01 ) 0.27 — Diluted earnings (loss) per share $ 0.20 $ ( 0.11 ) $ 0.55 $ 0.24 Shares used to compute earnings (loss) per share: Basic 34,773 34,391 34,721 34,364 Diluted 34,773 34,391 34,721 34,364 See accompanying notes to the condensed consolidated financial statements. 3 Tredegar Corporation Condensed Consolidated Statements of Comprehensive Income (Loss) (In Thousands) (Unaudited) Three Months Ended September 30, 2025 2024 Net income (loss) $ 7,074 $ ( 3,946 ) Other comprehensive income (loss): Unrealized foreign currency translation adjustment ($ 0 tax in 2025 and net of tax expense of $ 4 in 2024) 154 1,496 Derivative financial instruments adjustment (net of tax expense of $ 48 in 2025 and net of tax expense of $ 120 in 2024) 168 423 Amortization of prior service costs and net gains or losses (net of tax benefit of $ 14 in 2025 and net of tax benefit of $ 7 in 2024) ( 49 ) ( 27 ) Other comprehensive income (loss) 273 1,892 Comprehensive income (loss) $ 7,347 $ ( 2,054 ) Nine Months Ended September 30, 2025 2024 Net income (loss) $ 18,906 $ 8,134 Other comprehensive income (loss): Unrealized foreign currency translation adjustment ($ 0 tax in 2025 and net of tax benefit of $ 466 in 2024) 229 ( 5,740 ) Derivative financial instruments adjustment (net of tax expense of $ 151 in 2025 and net of tax benefit of $ 273 in 2024) 566 ( 942 ) Amortization of prior service costs and net gains or losses (net of tax benefit of $ 52 in 2025 and net of tax benefit of $ 23 in 2024) ( 187 ) ( 82 ) Other comprehensive income (loss) 608 ( 6,764 ) Comprehensive income (loss) $ 19,514 $ 1,370 See accompanying notes to the condensed consolidated financial statements. 4 Tredegar Corporation Condensed Consolidated Statements of Cash Flows (In Thousands) (Unaudited) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ 18,906 $ 8,134 Adjustments for noncash items: Depreciation 15,041 18,372 Amortization of identifiable intangibles 1,319 1,410 Reduction of right-of-use lease asset 1,584 1,735 Deferred income taxes 2,873 2,975 Accrued pension and post-retirement benefits 134 163 Stock-based compensation expense 1,759 1,950 Gain on investment in kaléo — ( 144 ) Gain on the sale of assets ( 1,497 ) — Gain on the sale of divested business ( 9,657 ) — Changes in assets and liabilities: Accounts and other receivables ( 23,113 ) ( 14,683 ) Inventories ( 10,615 ) ( 8,711 ) Income taxes recoverable/payable ( 111 ) ( 952 ) Prepaid expenses and other 5,909 ( 286 ) Accounts payable and accrued expenses 14,407 ( 3,454 ) Lease liability ( 1,800 ) ( 2,118 ) Pension and postretirement benefit plan contributions ( 430 ) ( 455 ) Other, net 2,559 2,117 Net cash provided by (used in) operating activities 17,268 6,053 Cash flows from investing activities: Capital expenditures ( 9,246 ) ( 7,696 ) 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 Net cash provided by (used in) investing activities 2,493 ( 7,469 ) Cash flows from financing activities: Borrowings 103,747 519,274 Debt principal payments ( 116,173 ) ( 522,240 ) Debt financing costs ( 1,272 ) ( 587 ) Net cash provided by (used in) financing activities ( 13,698 ) ( 3,553 ) Effect of exchange rate changes on cash 166 ( 1,898 ) Increase (decrease) in cash and cash equivalents 6,229 ( 6,867 ) Cash and cash equivalents at beginning of period 7,062 13,455 Cash and cash equivalents at end of period $ 13,291 $ 6,588 See accompanying notes to the condensed consolidated financial statements. 5 Tredegar Corporation Condensed Consolidated Statements of Shareholders’ Equity (In Thousands, Except Share and Per Share Data) (Unaudited) The following summarizes the changes in shareholders’ equity for the three month period ended September 30, 2025: Common Stock Retained Earnings Trust for Savings Restoration Plan Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Balance July 1, 2025 $ 64,561 $ 125,244 $ ( 2,233 ) $ 6,534 $ 194,106 Net income (loss) — 7,074 — — 7,074 Foreign currency translation adjustment — — — 154 154 Derivative financial instruments adjustment — — — 168 168 Amortization of prior service costs and net gains or losses — — — ( 49 ) ( 49 ) Stock-based compensation expense 738 — — — 738 Balance September 30, 2025 $ 65,299 $ 132,318 $ ( 2,233 ) $ 6,807 $ 202,191 The following summarizes the changes in shareholders’ equity for the nine month period ended September 30, 2025: Common Stock Retained Earnings Trust for Savings Restoration Plan Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Balance January 1, 2025 $ 63,590 $ 113,412 $ ( 2,233 ) $ 6,199 $ 180,968 Net income (loss) — 18,906 — — 18,906 Foreign currency translation adjustment — — — 229 229 Derivative financial instruments adjustment — — — 566 566 Amortization of prior service costs and net gains or losses — — — ( 187 ) ( 187 ) Stock-based compensation expense 2,298 — — — 2,298 Repurchase of employee common stock for tax withholdings ( 589 ) — — — ( 589 ) Balance September 30, 2025 $ 65,299 $ 132,318 $ ( 2,233 ) $ 6,807 $ 202,191 6 The following summarizes the changes in shareholders’ equity for the three month period ended September 30, 2024: Common Stock Retained Earnings Trust for Savings Restoration Plan Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Balance at July 1, 2024 $ 62,493 $ 190,057 $ ( 2,233 ) $ ( 90,353 ) $ 159,964 Net income (loss) — ( 3,946 ) — — ( 3,946 ) Foreign currency translation adjustment — — — 1,496 1,496 Derivative financial instruments adjustment — — — 423 423 Amortization of prior service costs and net gains or losses — — — ( 27 ) ( 27 ) Stock-based compensation expense 538 — — — 538 Balance at September 30, 2024 $ 63,031 $ 186,111 $ ( 2,233 ) $ ( 88,461 ) $ 158,448 The following summarizes the changes in shareholders’ equity for the nine month period ended September 30, 2024: Common Stock Retained Earnings Trust for Savings Restoration Plan Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Balance at January 1, 2024 $ 61,606 $ 177,977 $ ( 2,233 ) $ ( 81,697 ) $ 155,653 Net income (loss) — 8,134 — — 8,134 Foreign currency translation adjustment — — — ( 5,740 ) ( 5,740 ) Derivative financial instruments adjustment — — — ( 942 ) ( 942 ) Amortization of prior service costs and net gains or losses — — — ( 82 ) ( 82 ) Stock-based compensation expense 1,651 — — — 1,651 Repurchase of employee common stock for tax withholdings ( 226 ) — — — ( 226 ) Balance at September 30, 2024 $ 63,031 $ 186,111 $ ( 2,233 ) $ ( 88,461 ) $ 158,448 See accompanying notes to the condensed consolidated financial statements. 7 TREDEGAR CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. 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 September 30, 2025, the condensed consolidated results of operations for the three and nine months ended September 30, 2025 and 2024, the condensed consolidated cash flows for the nine months ended September 30, 2025 and 2024, and the condensed consolidated changes in shareholders’ equity for the three and nine months ended September 30, 2025 and 2024, in accordance with U.S. generally accepted accounting principles (“GAAP”). All such adjustments, unless otherwise detailed in the notes to the condensed consolidated financial statements, are deemed to be of a normal, recurring nature. 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 third quarter for 2025 and 2024 for this segment references 13-week periods ended September 28, 2025 and September 29, 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. The Company may fund or receive cash from the Aluminum Extrusions segment based on Aluminum Extrusion’s cash flows from operations during the intervening period from Aluminum Extrusion’s fiscal quarter end and the Company’s fiscal quarter end. 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 September 28, 2025 and September 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 and nine months ended September 30, 2025, are not necessarily indicative of the results to be expected for the full year. Sale of Flexible Packaging Films On November 1, 2024, the Company completed the sale of its flexible packaging films business (also referred to as “Terphane”) headquartered in Brazil to Oben Group (“Oben”). Commencing in the fourth quarter of 2024, all historical results for Terphane have been presented as discontinued operations. For more information on this transaction, see Note 11. Closure of PE Films Technical Center In August 2023, the Company adopted a plan to close the PE Films technical center in Richmond, VA and reduce its efforts to develop and sell films supporting the semiconductor market. Research & development activities for PE Films are now being performed at the production facility in Pottsville, PA. PE Films continues to have new business opportunities primarily relating to surface protection films that protect components of flat panel and flexible displays. All activities ceased at the PE Films technical center in Richmond, VA as of the end of the first quarter of 2024. Accounting standards not yet adopted In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06 to amend various paragraphs in the Accounting Standards Codification ("ASC") to primarily reflect the issuance of U.S. Securities and Exchange Commission ("SEC") Staff Bulletin No. 33-10532. ASU 2023-06 will impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers of financial assets. The amendments in this ASU 2023-06 will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is not permitted. The Company does not expect a material impact from the adoption of this standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 to improve the income tax disclosures related to the rate reconciliation and income taxes paid information and to improve the effectiveness of income tax disclosures. 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 8 significant individual jurisdictions. This ASU is effective for annual periods beginning after December 15, 2024; 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. The amendments in this ASU will require the Company to disclose specified information about certain costs and expenses in the notes to the financial statements. This ASU is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. 2. ACCOUNTS AND OTHER RECEIVABLES As of September 30, 2025 and December 31, 2024, accounts and other receivables, net include the following: (In thousands) September 30, 2025 December 31, 2024 Customer receivables $ 86,892 $ 64,094 Other receivables 1,332 952 Total accounts and other receivables 88,224 65,046 Less: Allowance for bad debts ( 293 ) ( 229 ) Total accounts and other receivables, net $ 87,931 $ 64,817 3. INVENTORIES The components of inventories are as follows: (In thousands) September 30, 2025 December 31, 2024 Finished goods $ 15,063 $ 15,051 Work-in-process 4,389 2,986 Raw materials 18,842 12,158 Stores, supplies and other 23,712 21,186 Total $ 62,006 $ 51,381 4. PENSION AND OTHER POSTRETIREMENT BENEFITS Tredegar sponsored a noncontributory defined benefit (pension) plan covering certain current and former U.S. employees. As of January 31, 2018, the plan no longer accrued benefits associated with crediting employees for service, thereby freezing all future benefits under the plan. On February 10, 2022, Tredegar announced the initiation of a process to terminate and settle its frozen defined benefit pension plan through lump sum distributions and the purchase of annuity contracts. On November 3, 2023, the pension plan termination and settlement process for the Company was completed, and the remaining pension plan obligation was transferred to Massachusetts Mutual Life Insurance Company. During 2023, the Company recognized a total pre-tax pension settlement loss of $ 92.3 million. Tredegar also has a non-qualified supplemental pension plan covering certain employees. 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 and nine months ended September 30, 2025 and 2024. In addition to providing non-qualified supplemental pension benefits, the Company provides postretirement life insurance and health care benefits ("Other Post-Retirement Benefits") for certain groups of employees. Tredegar and retirees share in the costs with employees hired on or before January 1, 1993, who receive a fixed subsidy to cover a portion of their health care premiums. On October 31, 2025, Tredegar terminated the Other Post-Retirement Benefits by prefunding $ 0.1 million, representing all required contributions for the remainder of 2025. As of September 30, 2025, the Other Post-Retirement Benefits total obligation and unrecognized pre-tax actuarial gain reported in the condensed consolidated balance sheets is $ 5.0 million and $ 1.3 million, respectively, which is expected to be realized into the income statement during the fourth quarter of 2025. 9 The components of net periodic benefit cost for the pension and Other Post-Retirement Benefits reflected in the condensed consolidated statements of income for the three and nine months ended September 30, 2025 and 2024, are shown below: Pension Benefits Other Post-Retirement Benefits Three Months Ended September 30, Three Months Ended September 30, (In thousands) 2025 2024 2025 2024 Service cost $ — $ — $ 3 $ 3 Interest cost 19 20 68 65 Amortization of prior service costs, (gains) losses and net transition asset 5 3 ( 68 ) ( 37 ) Net periodic benefit cost $ 24 $ 23 $ 3 $ 31 Pension Benefits Other Post-Retirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Service cost $ — $ — $ 7 $ 8 Interest cost 58 57 204 203 Amortization of prior service costs, (gains) losses and net transition asset 15 15 ( 254 ) ( 120 ) Net periodic benefit cost $ 73 $ 72 $ ( 43 ) $ 91 Pension and other postretirement liabilities were $ 6.4 million and $ 6.6 million at September 30, 2025 and December 31, 2024, respectively ($ 0.6 million included in “Accrued expenses” at September 30, 2025 and December 31, 2024 with the remainder included in “Pension and other postretirement benefit obligations, net” in the condensed consolidated balance sheets). 5. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. 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 September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Weighted average shares outstanding used to compute basic earnings per share 34,773 34,391 34,721 34,364 Incremental dilutive shares attributable to stock options and restricted stock — — — — Shares used to compute diluted earnings per share 34,773 34,391 34,721 34,364 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 1,205,105 and 1,258,787 for the three and nine months ended September 30, 2025, respectively. If the Company had reported net income from continuing operations for the three months ended September 30, 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 would have been 2,353,905 . 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 2,550,542 for the nine months ended September 30, 2024. 10 6. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component for the three months ended September 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 July 1, 2025 $ 5,180 $ 666 $ 688 $ 6,534 Other comprehensive income (loss) 154 829 — 983 Income tax (expense) benefit — ( 185 ) — ( 185 ) Other comprehensive income (loss), net of tax 154 644 — 798 Reclassification adjustment to net income (loss) — ( 613 ) ( 63 ) ( 676 ) Income tax (expense) benefit — 137 14 151 Reclassification adjustment to net income (loss), net of tax — ( 476 ) ( 49 ) ( 525 ) Other comprehensive income (loss), net of tax 154 168 ( 49 ) 273 Balance at September 30, 2025 $ 5,334 $ 834 $ 639 $ 6,807 The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 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 Other comprehensive income (loss) 229 1,201 — 1,430 Income tax (expense) benefit — ( 270 ) — ( 270 ) Other comprehensive income (loss), net of tax 229 931 — 1,160 Reclassification adjustment to net income (loss) — ( 484 ) ( 239 ) ( 723 ) Income tax (expense) benefit — 119 52 171 Reclassification adjustment to net income (loss), net of tax — ( 365 ) ( 187 ) ( 552 ) Other comprehensive income (loss), net of tax 229 566 ( 187 ) 608 Balance at September 30, 2025 $ 5,334 $ 834 $ 639 $ 6,807 11 The changes in accumulated other comprehensive income (loss) by component for the three months ended September 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 July 1, 2024 $ ( 90,273 ) $ ( 564 ) $ 484 $ ( 90,353 ) Other comprehensive income (loss) 1,500 262 — 1,762 Income tax (expense) benefit ( 4 ) ( 41 ) — ( 45 ) Other comprehensive income (loss), net of tax 1,496 221 — 1,717 Reclassification adjustment to net income (loss) — 281 ( 34 ) 247 Income tax (expense) benefit — ( 79 ) 7 ( 72 ) Reclassification adjustment to net income (loss), net of tax — 202 ( 27 ) 175 Other comprehensive income (loss), net of tax 1,496 423 ( 27 ) 1,892 Balance at September 30, 2024 $ ( 88,777 ) $ ( 141 ) $ 457 $ ( 88,461 ) The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 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 ) Other comprehensive income (loss) ( 6,206 ) ( 1,435 ) — ( 7,641 ) Income tax (expense) benefit 466 275 — 741 Other comprehensive income (loss), net of tax ( 5,740 ) ( 1,160 ) — ( 6,900 ) Reclassification adjustment to net income (loss) — 220 ( 105 ) 115 Income tax (expense) benefit — ( 2 ) 23 21 Reclassification adjustment to net income (loss), net of tax — 218 ( 82 ) 136 Other comprehensive income (loss), net of tax ( 5,740 ) ( 942 ) ( 82 ) ( 6,764 ) Balance at September 30, 2024 $ ( 88,777 ) $ ( 141 ) $ 457 $ ( 88,461 ) The amounts reclassified out of accumulated other comprehensive income (loss) related to pension and Other Post-Retirement Benefits is included in the computation of net periodic pension costs. See Note 4 for additional details. 7. DERIVATIVES Tredegar uses derivative financial instruments for the purpose of hedging margin exposure from fixed-price forward sales contracts in Aluminum Extrusions. These derivative financial instruments are designated as and qualify as cash flow hedges and are recognized in the condensed consolidated balance sheet at fair value. The fair value of derivative instruments recorded on the consolidated balance sheets is based upon Level 2 inputs. If individual derivative instruments with the same counterparty can be settled on a net basis, the Company records the corresponding derivative fair values as a net asset or net liability. In the normal course of business, Aluminum Extrusions enters into fixed-price forward sales contracts with a small subset of its customers for the future sale of fixed quantities of aluminum extrusions at scheduled intervals. In order to hedge margin exposure created from the fixing of future sales prices relative to volatile raw material (aluminum) costs, Aluminum Extrusions enters into a combination of forward purchase commitments and futures contracts to acquire or hedge aluminum, based on the scheduled purchases for the firm sales commitments. The fixed-price firm sales commitments and related hedging instruments 12 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 $ 6.0 million ( 3.7 million pounds of aluminum) at September 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 September 30, 2025 and December 31, 2024: September 30, 2025 December 31, 2024 (In thousands) Balance Sheet Account Fair Value Balance Sheet Account Fair Value Derivatives Designated as Hedging Instruments Asset derivatives: Aluminum futures contracts Prepaid expenses and other $ 1,051 Prepaid expenses and other $ 172 Asset derivatives: Aluminum futures contracts Other assets 33 Other assets — Liability derivatives: Aluminum futures contracts Accrued expenses ( 10 ) Accrued expenses ( 57 ) Net asset (liability) $ 1,074 $ 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 and nine month periods ended September 30, 2025 and 2024 is summarized in the table below: Cash Flow Derivative Hedges Three Months Ended September 30, Aluminum Futures Contracts (In thousands) 2025 2024 Amount of pre-tax gain (loss) recognized in other comprehensive income (loss) $ 829 $ 10 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) $ 612 $ ( 153 ) Nine Months Ended September 30, Aluminum Futures Contracts 2025 2024 Amount of pre-tax gain (loss) recognized in other comprehensive income (loss) $ 1,540 $ 56 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) $ 581 $ ( 662 ) As of September 30, 2025, the Company expects $ 0.8 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 nine month periods ended September 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. 8. INCOME TAXES Tredegar recorded tax expense (benefit) of $ 3.6 million on pre-tax income (loss) from continuing operations of $ 13.2 million in the first nine months of 2025. The effective tax rate in the first nine months of 2025 was 27.1 % and 27.5 % in the first nine months of 2024. The effective tax rate in the first nine months of 2025 and the first nine months of 2024 was impacted by taxable discrete items, including stock-based compensation. 13 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. T he OBBBA did not have a material impact on the Company's tax provision and effective rate for 2025. 9. BUSINESS SEGMENTS The Company's business segments are Aluminum Extrusions and PE Films. Aluminum Extrusions, also referred to as Bonnell Aluminum, produces high-quality, soft and medium strength alloyed aluminum extrusions, custom fabricated and finished, for the building and construction, automotive and transportation, consumer durables goods, machinery and equipment, electrical and renewable energy, and distribution markets. PE Films produces surface protection films, polyethylene overwrap films and films for other markets. The Company’s reportable segments are based on its method of internal reporting, which is generally segregated by differences in products. Accounting standards for presentation of segments require an approach based on the way the Company organizes the segments for making operating decisions and how the chief operating decision maker (“CODM”) assesses performance. EBITDA from ongoing operations is the key profitability measure used by the CODM (Tredegar’s President and Chief Executive Officer) for purposes of assessing financial performance. EBITDA from ongoing operations used by the CODM excludes certain non-recurring items, such as restructuring costs, asset impairments and other items, which are reported separately. The CODM uses EBITDA from ongoing operations to evaluate the operating performance of Tredegar’s ongoing operations, monitor budget versus actual results, establish management’s compensation and allocate resources. EBITDA from ongoing operations is the primary measure of segment performance and is consistent with how the business is managed internally, in addition to being a key financial and analytic metric for borrowing capacity and estimated enterprise value. The Company uses sales less freight (“net sales”) as its measure of revenues from external customers at the segment level. This measure is separately included in the financial information regularly provided to the CODM. 14 The following tables present segment revenue, segment profit (loss), and significant expenses for the three months ended September 30, 2025 and 2024: Three Months Ended September 30, 2025 (In thousands) Aluminum Extrusions PE Films Total Net Sales $ 162,470 $ 25,883 $ 188,353 Reconciliation of revenue: Add back freight 6,589 Sales as shown in the consolidated statements of income (loss) $ 194,942 Less: Variable costs $ 124,462 $ 11,922 $ 136,384 Manufacturing fixed costs 1 11,906 3,785 15,691 Selling, general and administrative costs 1 8,948 2,961 11,909 Other 2 346 ( 6 ) 340 EBITDA from ongoing operations $ 16,808 $ 7,221 $ 24,029 Reconciliation of profit (loss): Depreciation and amortization 5,414 Plant shutdowns, asset impairments, restructurings and other 915 Interest income 6 Interest expense 768 Corporate expenses, net 3 7,815 Income (loss) from continuing operations before income tax 9,123 Income tax expense (benefit) 2,014 Net income (loss) from continuing operations 7,109 Income (loss) from discontinued operations, net of tax ( 35 ) Net income (loss) $ 7,074 1. Excludes related depreciation and amortization. 2. Includes segment allocated employee compensation benefit expenses. 3. Includes corporate depreciation and amortization. 15 Three Months Ended September 30, 2024 (In thousands) Aluminum Extrusions PE Films Total Net Sales $ 115,717 $ 24,879 $ 140,596 Reconciliation of revenue: Add back freight 5,468 Sales as shown in the consolidated statements of income (loss) $ 146,064 Less: Variable costs $ 90,397 $ 12,294 $ 102,691 Manufacturing fixed costs 1 10,218 3,496 13,714 Selling, general and administrative costs 1 8,549 3,173 11,722 Other 2 376 40 416 EBITDA from ongoing operations $ 6,177 $ 5,876 $ 12,053 Reconciliation of profit (loss): Depreciation and amortization 5,703 Plant shutdowns, asset impairments, restructurings and other 2,170 Interest income 5 Interest expense 1,192 Gain on investment in kaleo, Inc. — Corporate expenses, net 3 5,554 Income (loss) from continuing operations before income tax ( 2,561 ) Income tax expense (benefit) 828 Net income (loss) from continuing operations ( 3,389 ) Income (loss) from discontinued operations, net of tax ( 557 ) Net income (loss) $ ( 3,946 ) 1. Excludes related depreciation and amortization. 2. Includes segment allocated employee compensation benefit expenses. 3. Includes corporate depreciation and amortization. 16 The following tables present segment revenue, segment profit (loss), and significant expenses for the nine months ended September 30, 2025 and 2024: Nine Months Ended September 30, 2025 (In thousands) Aluminum Extrusions PE Films Total Net Sales $ 444,470 $ 76,017 $ 520,487 Reconciliation of revenue: Add back freight 18,309 Sales as shown in the consolidated statements of income (loss) $ 538,796 Less: Variable costs $ 344,043 $ 35,586 $ 379,629 Manufacturing fixed costs 1 34,879 10,487 45,366 Selling, general and administrative costs 1 28,489 8,420 36,909 Other 2 1,808 70 1,878 EBITDA from ongoing operations $ 35,251 $ 21,454 $ 56,705 Reconciliation of profit (loss): Depreciation and amortization 16,214 Plant shutdowns, asset impairments, restructurings and other 2,138 Interest income 16 Interest expense 3,566 Corporate expenses, net 3 21,619 Income (loss) from continuing operations before income tax 13,184 Income tax expense (benefit) 3,575 Net income (loss) from continuing operations 9,609 Income (loss) from discontinued operations, net of tax 9,297 Net income (loss) $ 18,906 1. Excludes related depreciation and amortization. 2. Includes segment allocated employee compensation benefit expenses. 3. Includes corporate depreciation and amortization. 17 Nine Months Ended September 30, 2024 (In thousands) Aluminum Extrusions PE Films Total Net Sales $ 349,353 $ 78,811 $ 428,164 Reconciliation of revenue: Add back freight 15,812 Sales as shown in the consolidated statements of income (loss) $ 443,976 Less: Variable costs $ 263,007 $ 37,522 $ 300,529 Manufacturing fixed costs 1 29,726 9,832 39,558 Selling, general and administrative costs 1 24,319 8,480 32,799 Other 2 677 64 741 EBITDA from ongoing operations $ 31,624 $ 22,913 $ 54,537 Reconciliation of profit (loss): Depreciation and amortization 17,336 Plant shutdowns, asset impairments, restructurings and other 5,570 Interest income 30 Interest expense 3,515 Gain on investment in kaleo, Inc. 144 Corporate expenses, net 3 16,730 Income (loss) from continuing operations before income tax 11,560 Income tax expense (benefit) 3,175 Net income (loss) from continuing operations 8,385 Income (loss) from discontinued operations, net of tax ( 251 ) Net income (loss) $ 8,134 1. Excludes related depreciation and amortization. 2. Includes segment allocated employee compensation benefit expenses. 3. Includes corporate depreciation and amortization. The following table presents identifiable assets by segment at September 30, 2025 and December 31, 2024: (In thousands) September 30, 2025 December 31, 2024 Aluminum Extrusions $ 269,664 $ 247,205 PE Films 54,694 55,081 Subtotal 324,358 302,286 General corporate 41,157 46,883 Cash and cash equivalents 13,291 7,062 Discontinued operations — 126 Total $ 378,806 $ 356,357 The following table presents depreciation and amortization for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Aluminum Extrusions $ 4,190 $ 4,404 $ 12,509 $ 13,392 PE Films 1,224 1,299 3,705 3,944 Subtotal 5,414 5,703 16,214 17,336 General corporate 48 66 146 255 Discontinued operations — 708 — 2,191 Total $ 5,462 $ 6,477 $ 16,360 $ 19,782 18 The following table presents capital expenditures for the three and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Aluminum Extrusions $ 3,079 $ 1,449 $ 7,835 $ 4,461 PE Films 529 517 1,411 1,127 Subtotal 3,608 1,966 9,246 5,588 Discontinued operations — 948 — 2,108 Total $ 3,608 $ 2,914 $ 9,246 $ 7,696 The following tables disaggregate the Company’s revenue by geographic area and product group for the three and nine months ended September 30, 2025 and 2024: Net Sales by Geographic Area (a) Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 United States $ 171,063 $ 124,800 $ 473,712 $ 381,637 Exports from the United States to: Asia 11,482 11,728 32,654 34,387 Latin America 2,026 1,462 4,616 4,121 Canada 3,416 2,282 8,586 7,404 Europe — 35 37 60 Operations outside the United States: Asia 366 289 882 555 Total $ 188,353 $ 140,596 $ 520,487 $ 428,164 (a) Export sales relate mostly to PE Films. The Company’s facilities in Pottsville, PA (“PV”) and Guangzhou, China (“GZ”) have a tolling arrangement whereby certain surface protection films are manufactured in GZ for a fee with raw materials supplied from PV that are then shipped by GZ directly to customers principally in the Asian market, but paid by customers directly to PV. 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 $ 6.7 million and $ 6.5 million in the third quarter of 2025 and 2024, respectively, and $ 19.7 million and $ 19.1 million in the first nine months of 2025 and 2024, respectively. 19 Net Sales by Product Group Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Aluminum Extrusions: Nonresidential building & construction $ 87,388 $ 63,362 $ 236,612 $ 200,978 Consumer durables 13,297 8,210 37,715 24,440 Automotive 10,832 10,583 32,899 30,487 Residential building & construction 11,516 9,368 30,539 26,440 Electrical 14,429 8,541 42,292 21,075 Machinery & equipment 17,662 12,564 48,943 36,434 Distribution 7,346 3,089 15,470 9,499 Subtotal 162,470 115,717 444,470 349,353 PE Films: Surface protection films 19,163 17,516 54,675 56,241 Overwrap packaging 6,720 7,363 21,342 22,570 Subtotal 25,883 24,879 76,017 78,811 Total $ 188,353 $ 140,596 $ 520,487 $ 428,164 10. DEBT ABL Facility 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, and owned machinery and equipment. Amendment No. 5 extended the maturity date of the ABL Facility to May 6, 2030. As of September 30, 2025, funds available to borrow under the ABL Facility was $ 72.5 million, or 58.0 % of the aggregate commitment of $ 125 million. During the third quarter of 2025, the Company's letters of credit have been reduced from approximately $ 12 million to $ 3 million, which directly increases the Company's borrowing availability. Outstanding borrowings accrue interest at the rates elected by the Company depending on the type of loan and denomination of such borrowing. With respect to revolving loans denominated in U.S. Dollars, the Company may elect interest rates at: • 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 %; or • 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 %. 20 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 ABR Spread > 66% of $125 million aggregate commitment 175.0 75.0 ≤ 66% but > 33% of $125 million aggregate commitment 200.0 100.0 ≤ 33% of $125 million aggregate commitment 225.0 125.0 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. The ABL Facility has customary representations and warranties including, as a condition to each borrowing, that all such representations and warranties are true and correct in all material respects (including a representation that no Material Adverse Effect (as defined in the ABL Facility) has occurred since December 31, 2024). In the event that the Company cannot certify that all conditions to the borrowing have been met, the lenders can restrict the Company’s future borrowings under the ABL Facility. In accordance with the ABL Facility, the lenders have been provided with the Company’s financial statements, covenant compliance certificates and projections to facilitate their ongoing assessment of the Company. Accordingly, the Company believes the likelihood that lenders would exercise the subjective acceleration clause whereby prohibiting future borrowings is remote. As of September 30, 2025, the Company was in compliance with all debt covenants. PE Films Guangzhou Loan 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. 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 September 30, 2025, there was no outstanding loan balance. 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. 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 December 31, 2024, this loan was presented as current debt on the consolidated balance sheets. 11. DISCONTINUED OPERATIONS Flexible Packaging Films 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. 21 On November 1, 2024, Tredegar completed the sale of Terphane to Oben. At closing, Tredegar received $ 60 million in cash, which was net of Terphane debt assumed by Oben of $ 20 million and estimated Terphane cash retained by Oben of $ 2 million. 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). 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 and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Revenue and other items Sales $ — $ 35,987 $ — $ 104,046 Other income (expense), net — 3 — 6 — 35,990 — 104,052 Costs and expenses Cost of goods sold — 29,204 — 85,793 Freight — 1,618 — 5,021 Selling, general and administrative 35 3,121 360 5,651 Research and development — 174 — 570 Amortization of intangibles — 23 — 71 Interest expense 1 — 2,288 — 6,799 (Gain) loss on sale of business — — ( 9,657 ) — Total 35 36,428 ( 9,297 ) 103,905 Income (loss) from discontinued operations before income tax ( 35 ) ( 438 ) 9,297 147 Income tax expense (benefit) 2 — 119 — 398 Income (loss) from discontinued operations, net of tax $ ( 35 ) $ ( 557 ) $ 9,297 $ ( 251 ) 1. For the three and nine months ended September 30, 2024, interest expense includes $ 0.6 million and $ 1.8 million, respectively, directly related to the $ 20 million of outstanding Terphane debt assumed by Oben. 2. An inconsequential income tax expense (benefit) was recognized during the three and nine months ended September 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. 22 The assets and liabilities of the discontinued operations reflected in the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively, were as follows: (In thousands) September 30, 2025 December 31, 2024 Assets Deferred income taxes $ — $ 126 Total noncurrent assets of discontinued operations $ — $ 126 Liabilities 1 Accounts payable $ — $ 161 Accrued expenses — 580 Total current liabilities of discontinued operations $ — $ 741 1. The consolidated balance sheet of discontinued operations as of December 31, 2024 includes $ 0.6 million of severance and $ 0.2 million of miscellaneous accrued expenses. The following table provides significant operating, investing and financing cash flow information for discontinued operations: Nine Months Ended September 30, (In thousands) 2025 2024 Operating activities: Depreciation and amortization $ — $ 2,191 Gain on the sale of divested business ( 9,657 ) — Total $ ( 9,657 ) $ 2,191 Investing activities: Proceeds from the sale of Terphane $ 9,835 $ — Capital expenditures — 2,108 Total $ 9,835 $ 2,108 23