Item 1. Financial Statements
Item 1. Financial Statements.
Tredegar Corporation
Condensed Consolidated Balance Sheets
(In Thousands, Except Share Data)
(Unaudited)
March 31, December 31,
2026 2025
Assets
Current assets:
Cash and cash equivalents $ 15,611 $ 6,729
Accounts and other receivables, net 93,701 81,811
Income taxes recoverable — 47
Inventories 84,076 64,962
Prepaid expenses and other 9,880 15,525
Total current assets 203,268 169,074
Property, plant and equipment, at cost 513,587 509,430
Less: accumulated depreciation ( 380,511 ) ( 376,455 )
Net property, plant and equipment 133,076 132,975
Right-of-use leased assets 12,221 12,764
Identifiable intangible assets, net 5,128 5,568
Goodwill 22,446 22,446
Deferred income taxes 25,623 26,277
Other assets 1,881 2,268
Total assets $ 403,643 $ 371,372
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 96,444 $ 75,754
Accrued expenses 18,414 25,411
Lease liability, short-term 2,138 2,263
Short-term debt 506 498
Income taxes payable 842 455
Total current liabilities 118,344 104,381
Lease liability, long-term 10,444 10,960
ABL revolving facility 45,800 34,550
Pension and other postretirement benefit obligations, net 1,294 1,196
Other non-current liabilities 3,966 3,731
Total liabilities 179,848 154,818
Shareholders’ equity:
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 March 31, 2026 and December 31, 2025)
( 2,233 ) ( 2,233 )
Accumulated other comprehensive income (loss):
Foreign currency translation adjustment 5,894 5,566
Gain (loss) on derivative financial instruments 1,922 1,071
Pension and other postretirement benefit adjustments ( 281 ) ( 215 )
Retained earnings 152,549 146,888
Total shareholders’ equity 223,795 216,554
Total liabilities and shareholders’ equity $ 403,643 $ 371,372
See accompanying notes to the condensed consolidated financial statements.
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Tredegar Corporation
Condensed Consolidated Statements of Income (Loss)
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended March 31,
2026 2025
Revenues and other items:
Sales $ 186,489 $ 164,738
Other income (expense), net 44 ( 10 )
186,533 164,728
Costs and expenses:
Cost of goods sold 157,496 135,643
Freight 5,499 5,566
Selling, general and administrative 16,415 20,660
Research and development 177 165
Amortization of identifiable intangibles 440 440
Pension and postretirement benefits 39 ( 25 )
Interest expense 359 1,013
Asset impairments and costs associated with exit and disposal activities, net of adjustments 6 18
Total 180,431 163,480
Income (loss) from continuing operations before income taxes 6,102 1,248
Income tax expense (benefit) 1,032 577
Net income (loss) from continuing operations 5,070 671
Income (loss) from discontinued operations, net of tax 591 9,430
Net income (loss) $ 5,661 $ 10,101
Earnings (loss) per share:
Basic:
Continuing operations $ 0.15 $ 0.02
Discontinued operations 0.02 0.27
Basic earnings (loss) per share $ 0.17 $ 0.29
Diluted:
Continuing operations $ 0.15 $ 0.02
Discontinued operations 0.02 0.27
Diluted earnings (loss) per share $ 0.17 $ 0.29
Shares used to compute earnings (loss) per share:
Basic 34,696 34,612
Diluted 34,696 34,612
See accompanying notes to the condensed consolidated financial statements.
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Tredegar Corporation
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In Thousands)
(Unaudited)
Three Months Ended March 31,
2026 2025
Net income (loss) $ 5,661 $ 10,101
Other comprehensive income (loss):
Unrealized foreign currency translation adjustment (net tax of $ 0 in 2026 and 2025)
328 27
Derivative financial instruments adjustment (net of tax expense of $ 245 in 2026 and net of tax benefit of $ 68 in 2025)
851 ( 198 )
Amortization of prior service costs and net gains or losses (net of tax benefit of $ 18 in 2026 and net of tax benefit of $ 25 in 2025)
( 66 ) ( 89 )
Other comprehensive income (loss) 1,113 ( 260 )
Comprehensive income (loss) $ 6,774 $ 9,841
See accompanying notes to the condensed consolidated financial statements.
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Tredegar Corporation
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
Three Months Ended March 31,
2026 2025
Cash flows from operating activities:
Net income (loss) $ 5,661 $ 10,101
Adjustments for noncash items:
Depreciation 4,856 5,086
Amortization of identifiable intangibles 440 440
Reduction of right-of-use leased assets 543 529
Deferred income taxes 429 407
Accrued pension and post-retirement benefits 39 80
Stock-based compensation expense 454 472
Gain on the sale of divested business ( 565 ) ( 9,657 )
Changes in assets and liabilities:
Accounts and other receivables ( 11,888 ) ( 14,931 )
Inventories ( 19,105 ) ( 17,513 )
Income taxes recoverable/payable 436 ( 71 )
Prepaid expenses and other 6,739 7,174
Accounts payable and accrued expenses 13,956 12,687
Lease liability ( 640 ) ( 616 )
Pension and postretirement benefit plan contributions ( 26 ) ( 152 )
Other, net 624 958
Net cash provided by (used in) operating activities 1,953 ( 5,006 )
Cash flows from investing activities:
Capital expenditures ( 5,141 ) ( 2,957 )
Proceeds from the sale of Terphane 565 9,835
Net cash (used in) provided by investing activities ( 4,576 ) 6,878
Cash flows from financing activities:
Borrowings 49,950 33,750
Debt principal payments ( 38,700 ) ( 39,047 )
Net cash provided by (used in) financing activities 11,250 ( 5,297 )
Effect of exchange rate changes on cash 255 20
Increase (decrease) in cash and cash equivalents 8,882 ( 3,405 )
Cash and cash equivalents at beginning of period 6,729 7,062
Cash and cash equivalents at end of period $ 15,611 $ 3,657
See accompanying notes to the condensed consolidated financial statements.
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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 March 31, 2026:
Common Stock Retained Earnings Trust for Savings Restoration Plan Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity
Balance January 1, 2026
$ 65,477 $ 146,888 $ ( 2,233 ) $ 6,422 $ 216,554
Net income (loss) — 5,661 — — 5,661
Foreign currency translation adjustment — — — 328 328
Derivative financial instruments adjustment — — — 851 851
Amortization of prior service costs and net gains or losses — — — ( 66 ) ( 66 )
Stock-based compensation expense 467 — — — 467
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 March 31, 2025:
Common
Stock Retained
Earnings Trust for
Savings
Restoration
Plan Accumulated Other
Comprehensive Income (Loss) Total
Shareholders’
Equity
Balance at January 1, 2025 $ 63,590 $ 113,412 $ ( 2,233 ) $ 6,199 $ 180,968
Net income (loss) — 10,101 — — 10,101
Foreign currency translation adjustment — — — 27 27
Derivative financial instruments adjustment — — — ( 198 ) ( 198 )
Amortization of prior service costs and net gains or losses — — — ( 89 ) ( 89 )
Stock-based compensation expense 561 — — — 561
Balance at March 31, 2025 $ 64,151 $ 123,513 $ ( 2,233 ) $ 5,939 $ 191,370
See accompanying notes to the condensed consolidated financial statements.
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TREDEGAR CORPORATION
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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”). 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 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 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 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
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 10.
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 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
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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.
2. ACCOUNTS AND OTHER RECEIVABLES
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
Other receivables 3,145 2,095
Total accounts and other receivables 93,996 82,122
Less: Allowance for credit losses ( 295 ) ( 311 )
Total accounts and other receivables, net $ 93,701 $ 81,811
3. INVENTORIES
The components of inventories are as follows:
(In thousands) March 31, 2026 December 31, 2025
Finished goods $ 20,212 $ 17,578
Work-in-process 5,676 3,574
Raw materials 33,515 20,365
Stores, supplies and other 24,673 23,445
Total $ 84,076 $ 64,962
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 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. 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. 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.
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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
Three Months Ended March 31, Three Months Ended March 31,
(In thousands) 2026 2025 2026 2025
Service cost $ — $ — $ — $ 2
Interest cost 123 19 — 68
Amortization of prior service costs, (gains) losses and net transition asset ( 84 ) 5 — ( 119 )
Net periodic benefit cost $ 39 $ 24 $ — $ ( 49 )
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).
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 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 — —
Shares used to compute diluted earnings per share 34,696 34,612
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.
6. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
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)
Balance at January 1, 2026 $ 5,566 $ 1,071 $ ( 215 ) $ 6,422
Other comprehensive income (loss) 328 380 — 708
Income tax (expense) benefit — ( 85 ) — ( 85 )
Other comprehensive income (loss), net of tax 328 295 — 623
Reclassification adjustment to net income (loss) — 716 ( 84 ) 632
Income tax (expense) benefit — ( 160 ) 18 ( 142 )
Reclassification adjustment to net income (loss), net of tax — 556 ( 66 ) 490
Other comprehensive income (loss), net of tax 328 851 ( 66 ) 1,113
Balance at March 31, 2026
$ 5,894 $ 1,922 $ ( 281 ) $ 7,535
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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)
Balance at January 1, 2025 $ 5,105 $ 268 $ 826 $ 6,199
Other comprehensive income (loss) 27 ( 381 ) — ( 354 )
Income tax (expense) benefit — 83 — 83
Other comprehensive income (loss), net of tax 27 ( 298 ) — ( 271 )
Reclassification adjustment to net income (loss) — 115 ( 114 ) 1
Income tax (expense) benefit — ( 15 ) 25 10
Reclassification adjustment to net income (loss), net of tax — 100 ( 89 ) 11
Other comprehensive income (loss), net of tax 27 ( 198 ) ( 89 ) ( 260 )
Balance at March 31, 2025
$ 5,132 $ 70 $ 737 $ 5,939
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 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.
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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
Account Fair
Value Fair
Value
Derivatives Designated as Hedging Instruments
Asset derivatives:
Aluminum futures contracts
Prepaid expenses and other $ 2,512 $ 1,392
Liability derivatives:
Aluminum futures contracts
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 month periods ended March 31, 2026 and 2025 is summarized in the table below:
Cash Flow Derivative Hedges
Three Months Ended March 31,
Aluminum Futures Contracts
(In thousands) 2026 2025
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) 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 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.
8. INCOME TAXES
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.
9. BUSINESS SEGMENTS
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. 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. 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
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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.
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
Reconciliation of revenue:
Add back freight 5,499
Sales as shown in the consolidated statements of income (loss) $ 186,489
Less:
Variable costs $ 127,333 $ 10,422 $ 137,755
Manufacturing fixed costs 1
11,800 3,471 15,271
Selling, general and administrative costs 1
8,905 2,593 11,498
Other 2
( 263 ) ( 27 ) ( 290 )
EBITDA from ongoing operations $ 11,682 $ 5,074 $ 16,756
Reconciliation of profit (loss):
Depreciation and amortization 5,248
Plant shutdowns, asset impairments, restructurings and other 222
Interest income 10
Interest expense 359
Corporate expenses, net 3
4,835
Income (loss) from continuing operations before income tax 6,102
Income tax expense (benefit) 1,032
Net income (loss) from continuing operations 5,070
Income (loss) from discontinued operations, net of tax 591
Net income (loss) $ 5,661
1. Excludes related depreciation and amortization.
2. Includes segment allocated employee-related benefit expense (income).
3. Includes corporate depreciation and amortization.
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Three Months Ended March 31, 2025
(In thousands) Aluminum Extrusions High Performance Films Total
Net Sales $ 133,635 $ 25,537 $ 159,172
Reconciliation of revenue:
Add back freight 5,566
Sales as shown in the consolidated statements of income (loss) $ 164,738
Less:
Variable costs $ 103,523 $ 11,977 $ 115,500
Manufacturing fixed costs 1
11,214 3,459 14,673
Selling, general and administrative costs 1
9,412 2,592 12,004
Other 2
326 ( 11 ) 315
EBITDA from ongoing operations $ 9,160 $ 7,520 $ 16,680
Reconciliation of profit (loss):
Depreciation and amortization 5,475
Plant shutdowns, asset impairments, restructurings and other 1,167
Interest income 5
Interest expense 1,013
Corporate expenses, net 3
7,782
Income (loss) from continuing operations before income tax 1,248
Income tax expense (benefit) 577
Net income (loss) from continuing operations 671
Income (loss) from discontinued operations, net of tax 9,430
Net income (loss) $ 10,101
1. Excludes related depreciation and amortization.
2. Includes segment allocated employee-related benefit expense (income).
3. Includes corporate depreciation and amortization.
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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
High Performance Films 53,511 52,998
Subtotal 354,042 322,800
General corporate 33,990 41,843
Cash and cash equivalents 15,611 6,729
Total $ 403,643 $ 371,372
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
High Performance Films 1,203 1,250
Subtotal 5,248 5,475
General corporate 48 51
Total $ 5,296 $ 5,526
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
High Performance Films 452 587
Total $ 5,141 $ 2,957
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 March 31,
(In thousands) 2026 2025
United States $ 166,665 $ 144,357
Exports from the United States to:
Asia 7,772 10,836
Latin America 2,256 1,579
Canada 3,779 2,173
Europe 49 7
Operations outside the United States:
Asia 469 220
Total $ 180,990 $ 159,172
(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 $ 5.5 million and $ 6.6 million in the first quarter of 2026 and 2025, respectively.
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Net Sales by Product Group
Three Months Ended March 31,
(In thousands) 2026 2025
Aluminum Extrusions:
Nonresidential building & construction $ 81,188 $ 67,601
Consumer durables 13,322 11,667
Automotive 11,592 10,998
Residential building & construction 11,940 8,998
Electrical 10,980 15,341
Machinery & equipment 25,471 15,283
Distribution 4,964 3,747
Subtotal 159,457 133,635
High Performance Films:
Surface protection films 14,200 18,770
Advanced packaging 7,333 6,767
Subtotal 21,533 25,537
Total $ 180,990 $ 159,172
10. 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.
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 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 months ended March 31, 2026 and 2025:
Three Months Ended March 31,
(In thousands) 2026 2025
Costs and expenses
Selling, general and administrative ( 3 ) 227
(Gain) loss on sale of business ( 565 ) ( 9,657 )
Total ( 568 ) ( 9,430 )
Income (loss) from discontinued operations before income tax 568 9,430
Income tax expense (benefit) 1
( 23 ) —
Income (loss) from discontinued operations, net of tax $ 591 $ 9,430
1. 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.
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The following table provides significant operating, investing and financing cash flow information for discontinued operations:
Three Months Ended March 31,
(In thousands) 2026 2025
Operating activities:
Gain on the sale of divested business $ ( 565 ) $ ( 9,657 )
Total $ ( 565 ) $ ( 9,657 )
Investing activities:
Proceeds from the sale of Terphane $ 565 $ 9,835
Total $ 565 $ 9,835
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