What changed in this filing

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Item 1. Financial Statements

2026-05-08 compared with 2025-11-07 · 98 added, 318 removed, 364 unchanged (53% of the section changed)

3 unchanged sentences

(In Thousands, Except Share Data)

September 30, December 31,

March 31, December 31,

Current assets:

13 unchanged sentences

Other assets 1,881 2,268

Noncurrent assets of discontinued operations — 126

Total assets $ 403,643 $ 371,372

6 unchanged sentences

Income taxes payable 842 455

Current liabilities of discontinued operations — 741

Total current liabilities 118,344 104,381

2 unchanged sentences

Pension and other postretirement benefit obligations, net 1,294 1,196

Deferred income tax liabilities 69 69

Other non-current liabilities 3,966 3,731

1 unchanged sentence

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)

Common stock, no par value (authorized shares 150,000,000 , issued and outstanding 34,995,206 shares at March 31, 2026 and 34,737,534 shares at December 31, 2025)

65,944 65,477

Common stock held in trust for savings restoration plan ( 118,542 shares at September 30, 2025 and 118,543 shares at December 31, 2024)

Common stock held in trust for savings restoration plan ( 118,542 shares at March 31, 2026 and December 31, 2025)

( 2,233 ) ( 2,233 )

10 unchanged sentences

(In Thousands, Except Per Share Data)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Revenues and other items:

31 unchanged sentences

(In Thousands)

Three Months Ended September 30,

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)

Derivative financial instruments adjustment (net of tax expense of $ 48 in 2025 and net of tax expense of $ 120 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 $ 7 in 2024)

( 49 ) ( 27 )

Other comprehensive income (loss) 273 1,892

Comprehensive income (loss) $ 7,347 $ ( 2,054 )

Nine Months Ended September 30,

Three Months Ended March 31,

Net income (loss) $ 5,661 $ 10,101

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 )

Unrealized foreign currency translation adjustment (net tax of $ 0 in 2026 and 2025)

Derivative financial instruments adjustment (net of tax expense of $ 245 in 2026 and net of tax benefit of $ 68 in 2025)

7 unchanged sentences

(In Thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities:

3 unchanged sentences

Amortization of identifiable intangibles 440 440

Reduction of right-of-use lease asset 1,584 1,735

Reduction of right-of-use leased assets 543 529

Deferred income taxes 429 407

1 unchanged sentence

Stock-based compensation expense 454 472

Gain on investment in kaléo — ( 144 )

Gain on the sale of assets ( 1,497 ) —

Gain on the sale of divested business ( 565 ) ( 9,657 )

12 unchanged sentences

Proceeds from the sale of Terphane 565 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 )

Net cash (used in) provided by investing activities ( 4,576 ) 6,878

Cash flows from financing activities:

1 unchanged sentence

Debt principal payments ( 38,700 ) ( 39,047 )

Debt financing costs ( 1,272 ) ( 587 )

Net cash provided by (used in) financing activities 11,250 ( 5,297 )

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 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:

The following summarizes the changes in shareholders’ equity for the three month period ended March 31, 2026:

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

6 unchanged sentences

Stock-based compensation expense 467 — — — 467

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

Balance September 30, 2025

Balance March 31, 2026

$ 65,944 $ 152,549 $ ( 2,233 ) $ 7,535 $ 223,795

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

Stock Retained

Earnings Trust for

Plan Accumulated Other

Comprehensive Income (Loss) Total

Shareholders’

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:

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

Stock Retained

9 unchanged sentences

Stock-based compensation expense 561 — — — 561

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

Balance at March 31, 2025 $ 64,151 $ 123,513 $ ( 2,233 ) $ 5,939 $ 191,370

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 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.

Tredegar Corporation is engaged, through its subsidiaries, in the manufacture of aluminum extrusions and polyethylene and polypropylene plastic films.

Unless the context requires otherwise, all references herein to “Tredegar,” “the Company,” “we,” “us” or “our” are to Tredegar Corporation and its consolidated subsidiaries.

In the opinion of management, the accompanying condensed consolidated financial statements of the Company contain all adjustments necessary to state fairly, in all material respects, Tredegar’s condensed consolidated financial position as of March 31, 2026, the condensed consolidated results of operations for the three months ended March 31, 2026 and 2025, the condensed consolidated cash flows for the three months ended March 31, 2026 and 2025, and the condensed consolidated changes in shareholders’ equity for the three months ended March 31, 2026 and 2025, 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 third quarter for 2025 and 2024 for this segment references 13-week periods ended September 28, 2025 and September 29, 2024, respectively.

As such, the fiscal first quarter for 2026 and 2025 for this segment references 13-week periods ended March 29, 2026 and March 30, 2025, 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 Company may fund or receive cash from the Aluminum Extrusions segment based on Aluminum Extrusions' cash flows from operations during the intervening period from Aluminum Extrusions' fiscal quarter end and the Company’s fiscal quarter end.

As a result, the Company’s prepaid and other current assets increased by $ 5.7 million as of December 31, 2025 since the Company made payments to the Aluminum Extrusions segment to fund its payroll during the intervening period between December 28, 2025 and December 31, 2025.

There was no intercompany funding with Aluminum Extrusions between March 29, 2026 and March 31, 2026.

The condensed consolidated financial statements as of December 31, 2025 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, 2025 (“2025 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 2025 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.

The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results to be expected for the full year.

In the fourth quarter of 2025, the Company renamed the segment formerly known as “PE Films.” This segment is now referred to as “High Performance Films.” The product previously known as polyethylene overwrap films was renamed to advanced packaging films.

There were no changes to the operations reported within the High Performance Films segment.

The Company continues to have two reportable segments:

Aluminum Extrusions and High Performance Films.

More information on the Company’s business segments is provided in Note 9.

Sale of Flexible Packaging Films

2 unchanged sentences

For more information on this transaction, see Note 10.

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

5 unchanged sentences

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

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.

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.

In December 2025, the FASB issued ASU 2025-11 to amend the guidance in “Interim Reporting” (Topic 270).

The update provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period.

The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application.

The guidance is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years.

The Company does not expect a material impact from the adoption of this standard on our consolidated financial statements and related disclosures.

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

As of March 31, 2026 and December 31, 2025, accounts and other receivables, net include the following:

(In thousands) March 31, 2026 December 31, 2025

Customer receivables $ 90,851 $ 80,027

1 unchanged sentence

Total accounts and other receivables 93,996 82,122

Allowance for bad debts ( 293 ) ( 229 )

Allowance for credit losses ( 295 ) ( 311 )

Total accounts and other receivables, net $ 93,701 $ 81,811

The components of inventories are as follows:

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

(In thousands) March 31, 2026 December 31, 2025

Finished goods $ 20,212 $ 17,578

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 and nine months ended September 30, 2025 and 2024.

Pension expense recognized for this plan was immaterial in the three months ended March 31, 2026 and 2025.

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.

1 unchanged sentence

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.

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

The Other Post-Retirement Benefits total obligation and unrecognized pre-tax actuarial gain reported in the condensed consolidated balance sheets was $ 5.0 million and $ 1.3 million, respectively, which was realized into the income statement during the fourth quarter of 2025.

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 months ended March 31, 2026 and 2025, are shown below:

Pension Benefits Other Post-Retirement Benefits

Nine Months Ended September 30, Nine Months Ended September 30,

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

(In thousands) 2026 2025 2026 2025

3 unchanged sentences

Net periodic benefit cost $ 39 $ 24 $ — $ ( 49 )

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).

Pension and other postretirement liabilities were $ 1.5 million and $ 1.4 million at March 31, 2026 and December 31, 2025, respectively ($ 0.2 million included in “Accrued expenses” at March 31, 2026 and December 31, 2025 with the remainder included in “Pension and other postretirement benefit obligations, net” in the condensed consolidated balance sheets).

EARNINGS PER SHARE

1 unchanged sentence

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,

Three Months Ended March 31,

(In thousands) 2026 2025

Weighted average shares outstanding used to compute basic earnings per share 34,696 34,612

Incremental dilutive shares attributable to stock options and restricted stock — — — —

Incremental dilutive shares attributable to stock options — —

Shares used to compute diluted earnings per share 34,696 34,612

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.

Incremental shares attributable to stock options 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 were 1,160,761 and 1,325,890 for the three months ended March 31, 2026 and 2025, respectively.

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.

The changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2026.

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

7 unchanged sentences

Other comprehensive income (loss), net of tax 328 851 ( 66 ) 1,113

Balance at September 30, 2025

$ 5,334 $ 834 $ 639 $ 6,807

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

Balance at March 31, 2026

$ 5,894 $ 1,922 $ ( 281 ) $ 7,535

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

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

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

7 unchanged sentences

Other comprehensive income (loss), net of tax 27 ( 198 ) ( 89 ) ( 260 )

Balance at September 30, 2024

Balance at March 31, 2025

$ 5,132 $ 70 $ 737 $ 5,939

7 unchanged sentences

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

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

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 $ 9.6 million ( 4.7 million pounds of aluminum) at March 31, 2026 and $ 10.0 million ( 5.2 million pounds of aluminum) at December 31, 2025.

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, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025

(In thousands) Balance Sheet

Value Balance Sheet

Derivatives Designated as Hedging Instruments

1 unchanged sentence

Aluminum futures contracts

Prepaid expenses and other $ 1,051 Prepaid expenses and other $ 172

Asset derivatives:

Aluminum futures contracts

Other assets 33 Other assets —

Prepaid expenses and other $ 2,512 $ 1,392

Liability derivatives:

Aluminum futures contracts

Accrued expenses ( 10 ) Accrued expenses ( 57 )

Accrued expenses ( 24 ) ( 4 )

Aluminum futures contracts Other non-current liabilities ( 13 ) ( 9 )

Net asset (liability) $ 2,475 $ 1,379

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:

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, 2026 and 2025 is summarized in the table below:

Cash Flow Derivative Hedges

Three Months Ended September 30,

Three Months Ended March 31,

Aluminum Futures Contracts

1 unchanged sentence

Amount of pre-tax gain (loss) recognized in other comprehensive income (loss) $ 380 $ ( 38 )

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

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

Location of gain (loss) reclassified from accumulated other comprehensive income (loss) to 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) $ 716 $ ( 18 )

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.

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.

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.

As of March 31, 2026, the Company expects $ 1.9 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, 2026 and 2025, 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 $ 1.0 million on pre-tax income (loss) from continuing operations of $ 6.1 million in the first three months of 2026.

The effective tax rate in the first three months of 2026 was 16.9 % and 46.2 % in the first three months of 2025.

The effective tax rate for the first three months of 2026 varies from the statutory rate of 21% due to research and development tax credits while the effective tax rate for the first three months of 2025 varies from the statutory rate due to a mix of lower pre-tax income and higher nondeductible discrete items as a percentage of pre-tax income.

BUSINESS SEGMENTS

The Company's business segments are Aluminum Extrusions and PE Films.

The Company's business segments are Aluminum Extrusions and High Performance 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.

High Performance Films produces surface protection films, advanced packaging 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.

2 unchanged sentences

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.

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.

1 unchanged sentence

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 September 30, 2025 and 2024:

Three Months Ended September 30, 2025

(In thousands) Aluminum Extrusions PE Films Total

The following tables present segment revenue, segment profit (loss), and significant expenses for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31, 2026

(In thousands) Aluminum Extrusions High Performance Films Total

Net Sales $ 159,457 $ 21,533 $ 180,990

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Excludes related depreciation and amortization.

Includes segment allocated employee compensation benefit expenses.

Includes corporate depreciation and amortization.

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

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

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

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 )

Excludes related depreciation and amortization.

Includes segment allocated employee compensation benefit expenses.

Includes segment allocated employee-related benefit expense (income).

Includes corporate depreciation and amortization.

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

Three Months Ended March 31, 2025

(In thousands) Aluminum Extrusions High Performance Films Total

Net Sales $ 133,635 $ 25,537 $ 159,172

21 unchanged sentences

Excludes related depreciation and amortization.

Includes segment allocated employee compensation benefit expenses.

Includes corporate depreciation and amortization.

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

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

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.

Corporate expenses, net 3

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

Excludes related depreciation and amortization.

Includes segment allocated employee compensation benefit expenses.

Includes segment allocated employee-related benefit expense (income).

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

The following table presents identifiable assets by segment at March 31, 2026 and December 31, 2025:

(In thousands) March 31, 2026 December 31, 2025

Aluminum Extrusions $ 300,531 $ 269,802

PE Films 54,694 55,081

High Performance Films 53,511 52,998

Subtotal 354,042 322,800

1 unchanged sentence

Cash and cash equivalents 15,611 6,729

Discontinued operations — 126

Total $ 403,643 $ 371,372

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,

The following table presents depreciation and amortization for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

(In thousands) 2026 2025

Aluminum Extrusions $ 4,045 $ 4,225

PE Films 1,224 1,299 3,705 3,944

High Performance Films 1,203 1,250

Subtotal 5,248 5,475

General corporate 48 51

Discontinued operations — 708 — 2,191

Total $ 5,296 $ 5,526

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,

The following table presents capital expenditures for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

(In thousands) 2026 2025

Aluminum Extrusions $ 4,689 $ 2,370

PE Films 529 517 1,411 1,127

Subtotal 3,608 1,966 9,246 5,588

Discontinued operations — 948 — 2,108

High Performance Films 452 587

Total $ 5,141 $ 2,957

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:

The following tables disaggregate the Company’s net sales by geographic area and product group for the three months ended March 31, 2026 and 2025:

Net Sales by Geographic Area (a)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands) 2026 2025

4 unchanged sentences

Canada 3,779 2,173

Europe — 35 37 60

Operations outside the United States:

Asia 366 289 882 555

Total $ 180,990 $ 159,172

(a) Export sales relate mostly to PE Films.

(a) Export sales relate mostly to High Performance 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.

to Asia, and include net sales of $ 5.5 million and $ 6.6 million in the first quarter of 2026 and 2025, respectively.

Net Sales by Product Group

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands) 2026 2025

8 unchanged sentences

Subtotal 159,457 133,635

High Performance Films:

Surface protection films 14,200 18,770

Overwrap packaging 6,720 7,363 21,342 22,570

Advanced packaging 7,333 6,767

Subtotal 21,533 25,537

Total $ 180,990 $ 159,172

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 %;

• 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 %.

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

> 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.

DISCONTINUED OPERATIONS

4 unchanged sentences

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.

In February 2025 and February 2026, the Company received $ 9.8 million and $ 0.6 million, respectively, 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 Company’s $ 125 million senior secured asset-based revolving credit facility (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,

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, 2026 and 2025:

Three Months Ended March 31,

(In thousands) 2026 2025

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 ( 3 ) 227

Research and development — 174 — 570

Amortization of intangibles — 23 — 71

Interest expense 1

— 2,288 — 6,799

(Gain) loss on sale of business ( 565 ) ( 9,657 )

3 unchanged sentences

Income (loss) from discontinued operations, net of tax $ 591 $ 9,430

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.

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.

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

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

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.

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 periods, which offset the tax liability on the income from discontinued operations.

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

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands) 2026 2025

Operating activities:

Depreciation and amortization $ — $ 2,191

Gain on the sale of divested business $ ( 565 ) $ ( 9,657 )

2 unchanged sentences

Proceeds from the sale of Terphane $ 565 $ 9,835

Capital expenditures — 2,108

Total $ 565 $ 9,835

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