Tredegar Reports Third Quarter 2026 Results
Higher metal-cost pass-through lifted aluminum sales, but both operating segments reported lower shipment volumes and profitability.
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-
Net loss from continuing operations of
$(2.8) million $(0.08) $7.1 million $0.20 $8.3 million $0.24 $9.6 million $0.28 -
Net loss from ongoing operations, which excludes special items, was
$(1.4) million $(0.04) $9.2 million $0.26 $10.0 million $0.29 $14.6 million $0.41 -
Consolidated earnings before interest, taxes, depreciation and amortization (“Consolidated EBITDA”) from ongoing operations was
$4.1 million $18.1 million $30.0 million $39.7 million -
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from ongoing operations for Aluminum Extrusions was
$2.5 million $16.8 million $14.5 million -
EBITDA from ongoing operations for High Performance Films was
$4.6 million $7.2 million $5.8 million
CEO Commentary
“We are well on the way on our journey to re-engineer Tredegar into a stronger operating company and create sustainable shareholder value,” said Dr. Arijit (Bapi) DasGupta, president and chief executive officer. “Thus far in 2026, we have made substantial progress through our One Tredegar initiative, bringing our businesses under unified enterprise leadership, simplifying the organization, removing functional redundancies and strengthening key capabilities. These changes are creating clearer accountability, faster decision-making and a stronger foundation for improving operating performance, generating cash and allocating capital with greater discipline.”
“An important part of this transformation has been strengthening our leadership team and putting the right people in critical roles across the organization. We have added experienced leaders in key areas and are building a more capable, accountable and execution-focused organization to help drive the next phase of One Tredegar.”
“Looking at our third-quarter results – clearly – they were not where we want them to be. We faced broader market pressures, but we also have areas where we need to better execute. At Bonnell, profitability was significantly affected by lower shipments amid continued pressure on building and construction demand, as well as the timing lag of the pass-through of metal costs. High Performance Films experienced lower Surface Protection demand and an unfavorable customer and product mix, along with resin-cost pressures. We are responding with urgency to the factors we can control, with a clear focus on operating reliability, productivity, cost discipline, supply-chain resilience and cash generation.”
“As we finish 2026 and prepare for 2027, the next phase of One Tredegar is about turning organizational change into measurable results. In addition to simplifying our organization and driving accountability, we are positioning both of our businesses to capitalize on more strategic applications and larger customer opportunities focusing capital on areas where we believe we can earn attractive returns and build durable competitive positions. That includes improving Bonnell’s operations performance, driving costs down, growing TSLOTSTM and developing higher-value applications in Films. We remain on track to begin realizing benefits from One Tredegar in the first quarter of 2027, and our focus now is execution: improving profitability, generating cash and investing behind the opportunities that can create long-term shareholder value.”
1. |
This earnings release includes several metrics, including net income (loss) from ongoing operations, diluted earnings (loss) per share from ongoing operations, Consolidated EBITDA from ongoing operations, segment EBIT from ongoing operations and net debt, that are not required by, or calculated in accordance with |
OPERATIONS REVIEW
Aluminum Extrusions
A summary of results for Aluminum Extrusions (also “Bonnell Aluminum”) is provided below:
|
|
Three Months Ended |
|
Favorable/ |
|
Nine Months Ended |
|
Favorable/ |
||||||||||||
(In thousands, except percentages) |
|
September 30, |
|
(Unfavorable) |
|
September 30, |
|
(Unfavorable) |
||||||||||||
|
2026 |
|
2025 |
|
% Change |
|
2026 |
|
2025 |
|
% Change |
|||||||||
Sales volume (lbs) |
|
|
36,509 |
|
|
|
41,303 |
|
|
(11.6)% |
|
|
109,990 |
|
|
|
119,911 |
|
|
(8.3)% |
Net sales |
|
$ |
177,270 |
|
|
$ |
162,470 |
|
|
|
|
$ |
520,856 |
|
|
$ |
444,470 |
|
|
|
Variable costs |
|
|
152,323 |
|
|
|
124,462 |
|
|
(22.4)% |
|
|
426,252 |
|
|
|
344,043 |
|
|
(23.9)% |
Manufacturing fixed costs1 |
|
|
12,715 |
|
|
|
11,906 |
|
|
(6.8)% |
|
|
36,854 |
|
|
|
34,879 |
|
|
(5.7)% |
Selling, general and administrative costs1 |
|
|
9,332 |
|
|
|
8,948 |
|
|
(4.3)% |
|
|
29,265 |
|
|
|
28,489 |
|
|
(2.7)% |
Other2 |
|
|
364 |
|
|
|
346 |
|
|
(5.2)% |
|
|
(244 |
) |
|
|
1,808 |
|
|
NM* |
EBITDA from ongoing operations |
|
$ |
2,536 |
|
|
$ |
16,808 |
|
|
(84.9)% |
|
$ |
28,729 |
|
|
$ |
35,251 |
|
|
(18.5)% |
Depreciation & amortization |
|
|
(4,192 |
) |
|
|
(4,190 |
) |
|
—% |
|
|
(12,436 |
) |
|
|
(12,509 |
) |
|
|
EBIT from ongoing operations |
|
$ |
(1,656 |
) |
|
$ |
12,618 |
|
|
NM* |
|
$ |
16,293 |
|
|
$ |
22,742 |
|
|
(28.4)% |
Capital expenditures |
|
$ |
4,194 |
|
|
$ |
3,079 |
|
|
|
|
$ |
12,543 |
|
|
$ |
7,835 |
|
|
|
1. Excludes related depreciation and amortization. 2. Includes segment allocated employee-related benefit expense (income). * Not meaningful (“NM”) |
||||||||||||||||||||
Third Quarter 2026 Results vs. Third Quarter 2025 Results
Net sales (sales less freight) in the third quarter of 2026 increased
Nonresidential building and construction volume, which represented approximately
Net new orders in the third quarter of 2026 increased slightly to an average of 2.8 million pounds per week versus an average of 2.6 million pounds per week in the third quarter of 2025, supported by increased activity in TSLOTSTM for modular aluminum framing systems. Open orders at the end of the third quarter of 2026 were 24 million pounds versus 19 million pounds at the end of the third quarter of 2025 and 23 million pounds at the end of the second quarter of 2026. This level of open orders falls within the normalized level that is typically associated with stable demand patterns and healthy market dynamics.
EBITDA from ongoing operations in the third quarter of 2026 decreased
-
A
$13.1 million -
Lower volume (
$4.4 million $2.1 million $0.4 million $1.6 million $0.4 million $2.4 million $0.8 million $0.5 million -
The timing of the flow-through under the first-in, first-out (“FIFO”) method of aluminum raw materials costs, which were previously acquired in a dynamic pricing environment, causing a temporary mismatch in the change in the cost of raw materials included in variable costs and the pass through to customers included in sales, resulted in a charge of
$2.8 million $4.3 million
-
Lower volume (
-
Higher fixed costs primarily associated with wage and benefits increases (
$0.8 million
First Nine Months of 2026 Results vs. First Nine Months of 2025 Results
Net sales in the first nine months of 2026 increased
EBITDA from ongoing operations in the first nine months of 2026 decreased
-
A
$5.8 million -
Lower volume (
$8.4 million $5.8 million $1.0 million $2.8 million $1.4 million $1.6 million $7.9 million $7.8 million $0.3 million -
The timing of the flow-through under the FIFO method of aluminum raw material costs, which were previously acquired in a dynamic pricing environment and passed through to customers, resulted in a benefit of
$5.0 million $5.4 million
-
Lower volume (
-
Higher fixed costs primarily associated with wage and benefits-related expense increases (
$2.0 million -
Higher selling, general and administrative (“SG&A”) expenses of
$0.8 million -
Lower other expense for lower employee-related medical costs associated with medical claims (
$2.1 million
Market conditions remain impacted by
Tariffs and duties continue to be passed through to customers under the Company’s metal‑cost adjustment mechanism. The Company implemented additional price increases in the first quarter of 2026 and the third quarter of 2025 to offset tariff‑related costs not covered by that mechanism.
Conflict-driven disruptions in the Strait of Hormuz beginning in March 2026 have constrained shipments and raised costs, contributing to historically low
Projected Capital Expenditures and Depreciation & Amortization
Capital expenditures for Bonnell Aluminum are projected to be
High Performance Films
A summary of results for High Performance Films is provided below:
|
|
Three Months Ended |
|
Favorable/ |
|
Nine Months Ended |
|
Favorable/ |
||||||||||||
(In thousands, except percentages) |
|
September 30, |
|
(Unfavorable) |
|
September 30, |
|
(Unfavorable) |
||||||||||||
|
2026 |
|
2025 |
|
% Change |
|
2026 |
|
2025 |
|
% Change |
|||||||||
Sales volume (lbs) |
|
|
8,359 |
|
|
|
9,656 |
|
|
(13.4)% |
|
|
27,054 |
|
|
|
29,093 |
|
|
(7.0)% |
Net sales |
|
$ |
23,776 |
|
|
$ |
25,883 |
|
|
(8.1)% |
|
$ |
70,944 |
|
|
$ |
76,017 |
|
|
(6.7)% |
Variable costs |
|
|
12,457 |
|
|
|
11,922 |
|
|
(4.5)% |
|
|
36,264 |
|
|
|
35,586 |
|
|
(1.9)% |
Manufacturing fixed costs1 |
|
|
3,961 |
|
|
|
3,785 |
|
|
(4.6)% |
|
|
11,084 |
|
|
|
10,487 |
|
|
(5.7)% |
Selling, general and administrative costs1 |
|
|
2,675 |
|
|
|
2,961 |
|
|
|
|
|
8,125 |
|
|
|
8,420 |
|
|
|
Other2 |
|
|
35 |
|
|
|
(6 |
) |
|
NM* |
|
|
(31 |
) |
|
|
70 |
|
|
NM* |
EBITDA from ongoing operations |
|
$ |
4,648 |
|
|
$ |
7,221 |
|
|
(35.6)% |
|
$ |
15,502 |
|
|
$ |
21,454 |
|
|
(27.7)% |
Depreciation & amortization |
|
|
(1,072 |
) |
|
|
(1,224 |
) |
|
|
|
|
(3,472 |
) |
|
|
(3,705 |
) |
|
|
EBIT from ongoing operations |
|
$ |
3,576 |
|
|
$ |
5,997 |
|
|
(40.4)% |
|
$ |
12,030 |
|
|
$ |
17,749 |
|
|
(32.2)% |
Capital expenditures |
|
$ |
469 |
|
|
$ |
529 |
|
|
|
|
$ |
1,300 |
|
|
$ |
1,411 |
|
|
|
1. Excludes related depreciation and amortization. 2. Includes segment allocated employee-related benefit expense (income). * Not meaningful (“NM”) |
||||||||||||||||||||
Third Quarter 2026 Results vs. Third Quarter 2025 Results
Net sales in the third quarter of 2026 decreased
EBITDA from ongoing operations in the third quarter of 2026 decreased
-
A decrease in contribution margin of
$2.6 million -
A
$3.3 million $3.4 million $0.5 million $0.1 million $0.7 million -
A
$0.7 million $0.3 million $0.2 million $0.2 million
-
A
-
Higher fixed costs associated with wages and benefits increases (
$0.2 million -
Lower SG&A expense associated with lower employee-related incentive compensation (
$0.4 million -
A foreign currency transaction loss of
$0.1 million
The memory chip market pressures may continue to affect customer’s production levels and High Performance Films’ product mix through the remainder of 2026. Despite significant quarterly volatility since the first quarter of 2022, EBITDA from ongoing operations has normalized to approximately
First Nine Months of 2026 Results vs. First Nine Months of 2025 Results
Net sales in the first nine months of 2026 decreased
EBITDA from ongoing operations in the first nine months of 2026 decreased
-
A decrease in contribution margin of
$5.8 million -
A
$6.0 million $7.1 million $1.1 million $0.2 million $1.9 million -
A
$0.3 million $1.1 million $0.3 million $0.2 million $0.5 million $0.1 million
-
A
-
Higher fixed costs primarily associated with wages and benefits increases (
$0.6 million -
Lower SG&A expense associated with lower employee-related incentive compensation (
$1.0 million -
A foreign currency transaction loss of
$0.8 million $0.1 million
Although the conflict-driven disruptions in the Strait of Hormuz beginning in March 2026 have caused an increase to resin costs, High Performance Films maintains pass-through mechanisms with customers and has not experienced supply issues to date.
Projected Capital Expenditures and Depreciation & Amortization
Capital expenditures for High Performance Films are projected to be
Corporate Expenses, Interest, Taxes and Other
Corporate expenses, net in the first nine months of 2026 decreased
Interest expense was
The effective tax rate from continuing operations in the first nine months of 2026 was
Debt and Financial Leverage
Total debt was
Total debt increased
STATEMENT REGARDING NON-GAAP FINANCIAL MEASURES
Tredegar reports its financial results in accordance with GAAP. However, Tredegar’s management also reviews certain financial measures that are not required by, or calculated in accordance with, GAAP. These non-GAAP financial measures, including those discussed below, exclude or include amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheets or statements of cash flow of the Company and may not be calculated the same as similarly titled measures used by other companies. These non-GAAP financial measures should be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. The Company has provided a reconciliation of non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the accompanying tables.
Net income (loss) and diluted earnings (loss) per share from ongoing operations are non-GAAP financial measures that exclude the effects of gains or losses associated with plant shutdowns, asset impairments and restructurings, gains or losses from the sale of assets, goodwill impairment charges, discontinued operations, net periodic benefit cost for the frozen defined benefit pension plan prior to termination and other items (which includes gains and losses for an investment accounted for under the fair value method) which have been presented separately and removed from net income (loss) from continuing operations and diluted earnings (loss) per share as reported under GAAP. Net income (loss) and diluted earnings (loss) per share from ongoing operations are key financial and analytical measures used by management to analyze the operating performance of Tredegar’s ongoing operations. They are not intended to represent the stand-alone results for Tredegar’s ongoing operations under GAAP and should not be considered as an alternative to net income (loss) from continuing operations or earnings (loss) per share as defined by GAAP. They exclude items that management believes do not relate to Tredegar’s ongoing operations.
EBIT (earnings before interest and taxes) from ongoing operations is a non-GAAP financial measure included in the accompanying tables and the reconciliation of segment financial information to consolidated results for the Company in the net sales and EBITDA from ongoing operations by segment statements. It is not intended to represent the stand-alone results for Tredegar’s ongoing operations under GAAP and should not be considered as an alternative to net income (loss) as defined by GAAP. The Company believes that EBIT is a widely understood and used metric that is meaningful to certain investors and that including this financial metric in the reconciliation of, EBITDA from ongoing operations, which is the key segment profitability metric used by the Company’s chief operating decision maker to assess segment financial performance, provides useful information to those investors that primarily use EBIT to analyze the Company’s core operations.
Consolidated EBITDA from ongoing operations is a non-GAAP financial measure that excludes the effects of gains or losses associated with plant shutdowns, asset impairments and restructurings, gains or losses from the sale of assets, goodwill impairment charges, discontinued operations, net periodic benefit cost for the frozen defined benefit pension plan and other items (which includes gains and losses for an investment accounted for under the fair value method). Consolidated EBITDA from ongoing operations also excludes depreciation & amortization, stock option-based compensation costs, interest and income taxes. Consolidated EBITDA is a key financial and analytical measure used by management to gauge the operating performance of Tredegar’s ongoing operations. It is not intended to represent the stand-alone results for Tredegar’s ongoing operations under GAAP and should not be considered as an alternative to net income (loss) or earnings (loss) per share as defined by GAAP. It excludes items that management believes do not relate to Tredegar’s ongoing operations.
Net debt, which is defined as total debt in excess of cash and cash equivalents, is a non-GAAP financial measure, that is not intended to represent total debt as defined by GAAP. Net debt is used by management in evaluating the Company’s financial leverage and equity valuation, and management believes that investors also may find net debt to be helpful for the same purposes.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
Some of the information contained in this press release may constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. When the Company uses the words “believe,” “estimate,” “anticipate,” “appear to,” “expect,” “project,” “plan,” “likely,” “may” and similar expressions, it does so to identify forward-looking statements. Such statements are based on the Company's then current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. Factors that could cause actual results to differ materially from expectations include, without limitation, the following:
- the impact of trade policies and prolonged geopolitical conflicts on raw materials and supply chain constraints;
- the impact of macroeconomic factors, such as inflation, interest rates and recession risks;
- an increase in the operating costs incurred by the Company’s business units, including, for example, the cost of raw materials and energy;
- the risks associated with our cost-reduction and operational-improvement initiatives, including our ability to achieve the expected benefits within the expected timeframe or at all;
- failure to continue to attract, develop and retain certain key officers or employees;
- disruptions to the Company’s manufacturing facilities, including those resulting from labor shortages;
- an information technology system failure or breach;
- risks of doing business in countries outside the U.S. that affect our international operations;
- the impact of public health epidemics on employees, production and the global economy;
- political, economic and regulatory factors concerning the Company’s products;
- the impact of the imposition of tariffs and sanctions on imported aluminum ingot used by Bonnell Aluminum;
- inability to replace aging equipment and information technology systems with necessary capital expenditures;
- inability to develop, efficiently manufacture and deliver new products at competitive prices;
- loss of sales to significant customers on which the Company’s business is highly dependent;
- inability to achieve sales to new customers to replace lost business;
- failure of the Company’s customers to achieve success or maintain market share;
- noncompliance with any of the financial and other restrictive covenants in the ABL Facility;
- failure to protect our intellectual property rights;
and the other factors discussed in the reports Tredegar files with or furnishes to the Securities and Exchange Commission (the “SEC”) from time to time, including the risks and important factors set forth in additional detail in Part I, Item 1A. Risk Factors of the Company’s Form 10-K for the year ended December 31, 2025. Readers are urged to review and consider carefully the disclosures Tredegar makes in its filings with the SEC.
Tredegar does not undertake, and expressly disclaims any duty, to update any forward-looking statement made in this press release to reflect any change in management’s expectations or any change in conditions, assumptions or circumstances on which such statements are based, except as required by applicable law.
To the extent that the financial information portion of this press release contains financial measures that are not calculated in accordance with GAAP, it also presents both the most directly comparable financial measures calculated and presented in accordance with GAAP and a quantitative reconciliation of the difference between any such non-GAAP measures and such comparable GAAP financial measures. Reconciliations of non-GAAP financial measures are provided in the Financial Tables and the Non-GAAP Reconciliations included with this press release and can also be found within “Presentations” in the “Investors” section of our website, www.tredegar.com.
Tredegar uses its website as a channel of distribution of material company information. Financial information and other material information regarding Tredegar is posted on and assembled in the “Investors” section of its website.
Tredegar Corporation is an industrial manufacturer with two primary businesses: custom aluminum extrusions for the North American building & construction, automotive and specialty end-use markets and films for highly engineered surface protection applications in the global electronics industry and advanced packaging. With approximately 1,700 employees, the Company operates manufacturing facilities in North America and Asia.
Tredegar Corporation |
||||||||||||||||
Condensed Consolidated Statements of Income (Loss) |
||||||||||||||||
(In Thousands, Except Per-Share Data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
Sales |
|
$ |
207,174 |
|
|
$ |
194,942 |
|
|
$ |
609,899 |
|
|
$ |
538,796 |
|
Other income (expense), net |
|
|
21 |
|
|
|
4 |
|
|
|
103 |
|
|
|
1,381 |
|
|
|
|
207,195 |
|
|
|
194,946 |
|
|
|
610,002 |
|
|
|
540,177 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold |
|
|
186,216 |
|
|
|
157,209 |
|
|
|
524,496 |
|
|
|
441,387 |
|
Freight |
|
|
6,128 |
|
|
|
6,589 |
|
|
|
18,099 |
|
|
|
18,309 |
|
Selling, R&D and general expenses |
|
|
16,612 |
|
|
|
20,372 |
|
|
|
53,507 |
|
|
|
61,947 |
|
Amortization of identifiable intangibles |
|
|
440 |
|
|
|
440 |
|
|
|
1,319 |
|
|
|
1,319 |
|
Pension and postretirement benefits |
|
|
25 |
|
|
|
27 |
|
|
|
88 |
|
|
|
30 |
|
Interest expense |
|
|
526 |
|
|
|
768 |
|
|
|
1,350 |
|
|
|
3,566 |
|
Asset impairments and costs associated with exit and disposal activities, net of adjustments |
|
|
737 |
|
|
|
418 |
|
|
|
752 |
|
|
|
435 |
|
|
|
|
210,684 |
|
|
|
185,823 |
|
|
|
599,611 |
|
|
|
526,993 |
|
Income (loss) from continuing operations before income taxes |
|
|
(3,489 |
) |
|
|
9,123 |
|
|
|
10,391 |
|
|
|
13,184 |
|
Income tax expense (benefit) |
|
|
(663 |
) |
|
|
2,014 |
|
|
|
2,100 |
|
|
|
3,575 |
|
Net income (loss) from continuing operations |
|
|
(2,826 |
) |
|
|
7,109 |
|
|
|
8,291 |
|
|
|
9,609 |
|
Income (loss) from discontinued operations, net of tax |
|
|
5 |
|
|
|
(35 |
) |
|
|
566 |
|
|
|
9,297 |
|
Net income (loss) |
|
$ |
(2,821 |
) |
|
$ |
7,074 |
|
|
$ |
8,857 |
|
|
$ |
18,906 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic: |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
(0.08 |
) |
|
$ |
0.20 |
|
|
$ |
0.24 |
|
|
$ |
0.28 |
|
Discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.27 |
|
Basic earnings (loss) per share |
|
$ |
(0.08 |
) |
|
$ |
0.20 |
|
|
$ |
0.26 |
|
|
$ |
0.55 |
|
Diluted: |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
(0.08 |
) |
|
$ |
0.20 |
|
|
$ |
0.24 |
|
|
$ |
0.28 |
|
Discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.27 |
|
Diluted earnings (loss) per share |
|
$ |
(0.08 |
) |
|
$ |
0.20 |
|
|
$ |
0.26 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
||||||||
Shares used to compute earnings (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
34,721 |
|
|
|
34,773 |
|
|
|
34,754 |
|
|
|
34,721 |
|
Diluted |
|
|
34,721 |
|
|
|
34,773 |
|
|
|
34,754 |
|
|
|
34,721 |
|
Tredegar Corporation |
||||||||||||||||
Net Sales and EBITDA from Ongoing Operations by Segment |
||||||||||||||||
(In Thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
Net Sales |
|
|
|
|
|
|
|
|
||||||||
Aluminum Extrusions |
|
$ |
177,270 |
|
|
$ |
162,470 |
|
|
$ |
520,856 |
|
|
$ |
444,470 |
|
High Performance Films |
|
|
23,776 |
|
|
|
25,883 |
|
|
|
70,944 |
|
|
|
76,017 |
|
Total net sales |
|
|
201,046 |
|
|
|
188,353 |
|
|
|
591,800 |
|
|
|
520,487 |
|
Add back freight |
|
|
6,128 |
|
|
|
6,589 |
|
|
|
18,099 |
|
|
|
18,309 |
|
Sales as shown in the condensed consolidated statements of income (loss) |
|
$ |
207,174 |
|
|
$ |
194,942 |
|
|
$ |
609,899 |
|
|
$ |
538,796 |
|
|
|
|
|
|
|
|
|
|
||||||||
EBITDA from Ongoing Operations |
|
|
|
|
|
|
|
|
||||||||
Aluminum Extrusions: |
|
|
|
|
|
|
|
|
||||||||
Ongoing operations: |
|
|
|
|
|
|
|
|
||||||||
EBITDA |
|
$ |
2,536 |
|
|
$ |
16,808 |
|
|
$ |
28,729 |
|
|
$ |
35,251 |
|
Depreciation & amortization |
|
|
(4,192 |
) |
|
|
(4,190 |
) |
|
|
(12,436 |
) |
|
|
(12,509 |
) |
EBIT |
|
|
(1,656 |
) |
|
|
12,618 |
|
|
|
16,293 |
|
|
|
22,742 |
|
Plant shutdowns, asset impairments, restructurings and other |
|
|
(1,208 |
) |
|
|
(927 |
) |
|
|
(1,796 |
) |
|
|
(2,151 |
) |
High Performance Films: |
|
|
|
|
|
|
|
|
||||||||
Ongoing operations: |
|
|
|
|
|
|
|
|
||||||||
EBITDA |
|
$ |
4,648 |
|
|
$ |
7,221 |
|
|
$ |
15,502 |
|
|
$ |
21,454 |
|
Depreciation & amortization |
|
|
(1,072 |
) |
|
|
(1,224 |
) |
|
|
(3,472 |
) |
|
|
(3,705 |
) |
EBIT |
|
|
3,576 |
|
|
|
5,997 |
|
|
|
12,030 |
|
|
|
17,749 |
|
Plant shutdowns, asset impairments, restructurings and other |
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
13 |
|
Total |
|
|
724 |
|
|
|
17,700 |
|
|
|
26,539 |
|
|
|
38,353 |
|
Interest expense, net |
|
|
503 |
|
|
|
762 |
|
|
|
1,298 |
|
|
|
3,550 |
|
Corporate expenses, net |
|
|
3,710 |
|
|
|
7,815 |
|
|
|
14,850 |
|
|
|
21,619 |
|
Income (loss) from continuing operations before income taxes |
|
|
(3,489 |
) |
|
|
9,123 |
|
|
|
10,391 |
|
|
|
13,184 |
|
Income tax expense (benefit) |
|
|
(663 |
) |
|
|
2,014 |
|
|
|
2,100 |
|
|
|
3,575 |
|
Net income (loss) from continuing operations |
|
|
(2,826 |
) |
|
|
7,109 |
|
|
|
8,291 |
|
|
|
9,609 |
|
Income (loss) from discontinued operations, net of tax |
|
|
5 |
|
|
|
(35 |
) |
|
|
566 |
|
|
|
9,297 |
|
Net income (loss) |
|
$ |
(2,821 |
) |
|
$ |
7,074 |
|
|
$ |
8,857 |
|
|
$ |
18,906 |
|
Tredegar Corporation |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
|
|
September 30, 2026 |
|
December 31, 2025 |
||||
Assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
16,322 |
|
$ |
6,729 |
||
Accounts and other receivables, net |
|
|
96,853 |
|
|
|
81,811 |
|
Income taxes recoverable |
|
|
— |
|
|
|
47 |
|
Inventories |
|
|
78,016 |
|
|
|
64,962 |
|
Prepaid expenses & other |
|
|
8,821 |
|
|
|
15,525 |
|
Total current assets |
|
|
200,012 |
|
|
|
169,074 |
|
Property, plant & equipment, net |
|
|
132,519 |
|
|
|
132,975 |
|
Right-of-use leased assets |
|
|
14,033 |
|
|
|
12,764 |
|
Identifiable intangible assets, net |
|
|
4,249 |
|
|
|
5,568 |
|
Goodwill |
|
|
22,446 |
|
|
|
22,446 |
|
Deferred income taxes |
|
|
25,657 |
|
|
|
26,277 |
|
Other assets |
|
|
1,728 |
|
|
|
2,268 |
|
Total assets |
|
$ |
400,644 |
|
|
$ |
371,372 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
||||
Accounts payable |
|
$ |
85,746 |
|
|
$ |
75,754 |
|
Accrued expenses |
|
|
21,089 |
|
|
|
25,411 |
|
Lease liability, short-term |
|
|
2,602 |
|
|
|
2,263 |
|
Short-term debt |
|
|
— |
|
|
|
498 |
|
Income taxes payable |
|
|
181 |
|
|
|
455 |
|
Total current liabilities |
|
|
109,618 |
|
|
|
104,381 |
|
Lease liability, long-term |
|
|
11,602 |
|
|
|
10,960 |
|
ABL revolving facility |
|
|
49,000 |
|
|
|
34,550 |
|
Pension and other postretirement benefit obligations, net |
|
|
1,265 |
|
|
|
1,196 |
|
Other non-current liabilities |
|
|
3,745 |
|
|
|
3,731 |
|
Shareholders’ equity |
|
|
225,414 |
|
|
|
216,554 |
|
Total liabilities and shareholders’ equity |
|
$ |
400,644 |
|
|
$ |
371,372 |
|
Tredegar Corporation |
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
2026 |
|
2025 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income (loss) |
|
$ |
8,857 |
|
|
$ |
18,906 |
|
Adjustments for noncash items: |
|
|
|
|
||||
Depreciation |
|
|
14,731 |
|
|
|
15,041 |
|
Amortization of intangibles |
|
|
1,319 |
|
|
|
1,319 |
|
Reduction of right-of-use leased assets |
|
|
1,661 |
|
|
|
1,584 |
|
Deferred income taxes |
|
|
952 |
|
|
|
2,873 |
|
Accrued pension and postretirement benefits |
|
|
88 |
|
|
|
134 |
|
Stock-based compensation expense |
|
|
95 |
|
|
|
1,759 |
|
Production equipment asset disposals |
|
|
517 |
|
|
|
— |
|
Gain on the sale of assets |
|
|
— |
|
|
|
(1,497 |
) |
Gain on sale of divested business |
|
|
(565 |
) |
|
|
(9,657 |
) |
Changes in assets and liabilities: |
|
|
|
|
||||
Accounts and other receivables |
|
|
(15,039 |
) |
|
|
(23,113 |
) |
Inventories |
|
|
(13,030 |
) |
|
|
(10,615 |
) |
Income taxes recoverable/payable |
|
|
(227 |
) |
|
|
(111 |
) |
Prepaid expenses and other |
|
|
5,341 |
|
|
|
5,909 |
|
Accounts payable and accrued expenses |
|
|
5,034 |
|
|
|
14,407 |
|
Lease liability |
|
|
(1,948 |
) |
|
|
(1,800 |
) |
Pension and postretirement benefit plan contributions |
|
|
(90 |
) |
|
|
(430 |
) |
Other, net |
|
|
553 |
|
|
|
2,559 |
|
Net cash provided by (used in) operating activities |
|
|
8,249 |
|
|
|
17,268 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(13,892 |
) |
|
|
(9,246 |
) |
Proceeds from the sale of Terphane |
|
|
565 |
|
|
|
9,835 |
|
Proceeds from the sale of assets |
|
|
— |
|
|
|
1,904 |
|
Net cash (used in) provided by investing activities |
|
|
(13,327 |
) |
|
|
2,493 |
|
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings |
|
|
158,900 |
|
|
|
103,747 |
|
Debt principal payments |
|
|
(144,962 |
) |
|
|
(116,173 |
) |
Debt financing costs |
|
|
— |
|
|
|
(1,272 |
) |
Net cash provided by (used in) financing activities |
|
|
13,938 |
|
|
|
(13,698 |
) |
Effect of exchange rate changes on cash |
|
|
733 |
|
|
|
166 |
|
Increase (decrease) in cash and cash equivalents |
|
|
9,593 |
|
|
|
6,229 |
|
Cash and cash equivalents at beginning of period |
|
|
6,729 |
|
|
|
7,062 |
|
Cash and cash equivalents at end of period |
|
$ |
16,322 |
|
|
$ |
13,291 |
|
Tredegar Corporation |
||||||||||||||||
Non-GAAP Reconciliations |
||||||||||||||||
(In Millions, Except Per-Share Data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
Net income (loss) from continuing operations as reported under GAAP |
|
$ |
(2.8 |
) |
|
$ |
7.1 |
|
|
$ |
8.3 |
|
|
$ |
9.6 |
|
After-tax effects of: |
|
|
|
|
|
|
|
|
||||||||
(Gains) losses from plant shutdowns, asset impairments and restructurings |
|
|
0.6 |
|
|
|
0.3 |
|
|
|
0.6 |
|
|
|
0.3 |
|
(Gains) losses from sale of assets and other items: |
|
|
|
|
|
|
|
|
||||||||
Consulting expenses for ERP/MES project |
|
|
0.4 |
|
|
|
0.3 |
|
|
|
0.9 |
|
|
|
0.9 |
|
Legal fees associated with the Aluminum Extruders Trade Case and other matters |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Storm damage to the |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
Aluminum extrusion press fire at the |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
Aluminum premium charge as a result of unplanned maintenance interruptions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Professional fees associated with business development activities |
|
|
— |
|
|
|
1.4 |
|
|
|
(0.3 |
) |
|
|
4.2 |
|
Professional fees associated with one-time corporate related activities |
|
|
0.4 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.3 |
|
Group annuity contract premium adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Proceeds on the sale of corporate-owned land |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.2 |
) |
Net income (loss) from ongoing operations |
|
$ |
(1.4 |
) |
|
$ |
9.2 |
|
|
$ |
10.0 |
|
|
$ |
14.6 |
|
Depreciation and amortization |
|
|
5.3 |
|
|
|
5.5 |
|
|
|
16.0 |
|
|
|
16.4 |
|
Interest expense |
|
|
0.5 |
|
|
|
0.8 |
|
|
|
1.4 |
|
|
|
3.6 |
|
Income tax expense (benefit) as reported under GAAP |
|
|
(0.7 |
) |
|
|
2.0 |
|
|
|
2.1 |
|
|
|
3.6 |
|
Income tax expense (benefit) of (gains) losses from plant shutdowns, asset impairments, restructurings, sale of assets and other items |
|
|
0.4 |
|
|
|
0.6 |
|
|
|
0.5 |
|
|
|
1.5 |
|
Consolidated EBITDA from ongoing operations |
|
$ |
4.1 |
|
|
$ |
18.1 |
|
|
$ |
30.0 |
|
|
$ |
39.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations per share as reported under GAAP (diluted) |
|
$ |
(0.08 |
) |
|
$ |
0.20 |
|
|
$ |
0.24 |
|
|
$ |
0.28 |
|
After-tax effects per diluted share of (gains) losses from sale of assets, investment writedowns and other items |
|
|
0.04 |
|
|
|
0.06 |
|
|
|
0.05 |
|
|
|
0.13 |
|
Earnings (loss) per share from ongoing operations (diluted) |
|
$ |
(0.04 |
) |
|
$ |
0.26 |
|
|
$ |
0.29 |
|
|
$ |
0.41 |
|
(In millions) |
|
September 30, |
|
December 31, |
||||
|
2026 |
|
2025 |
|||||
Short-term debt |
|
$ |
— |
|
|
$ |
0.5 |
|
ABL revolving facility |
|
|
49.0 |
|
|
|
34.6 |
|
Total debt |
|
|
49.0 |
|
|
|
35.1 |
|
Less: Cash and cash equivalents |
|
|
16.3 |
|
|
|
6.7 |
|
Net debt |
|
$ |
32.7 |
|
|
$ |
28.4 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20261105745731/en/
Tredegar Corporation
Investor Relations, 804-330-1000
Source: Tredegar Corporation