RICHMOND, Va.–(BUSINESS WIRE)–Tredegar Corporation (NYSE:TG, also the “Company” or “Tredegar”) today reported fourth quarter and full year financial results for the period ended December 31, 2025.

Fourth quarter 2025 net income (loss) from continuing operations was $14.5 million ($0.42 per diluted share) compared to $(7.3) million ($(0.21) per diluted share) in the fourth quarter of 2024. Net income (loss) from ongoing operations, which excludes special items, was $11.0 million ($0.32 per diluted share) in the fourth quarter of 2025 compared to $2.0 million ($0.06 per diluted share) in the fourth quarter of 2024.

Full year 2025 net income (loss) from continuing operations was $24.1 million ($0.69 per diluted share) compared to $1.0 million ($0.03 per diluted share) in 2024. Net income (loss) from ongoing operations was $25.7 million ($0.74 per diluted share) in 2025 compared to $17.2 million ($0.50 per diluted share) in 2024. A reconciliation of net income (loss) from continuing operations, a financial measure calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), to net income (loss) from ongoing operations, a non-GAAP financial measure, for the three months and year ended December 31, 2025 and 2024, is provided in Note (a) to the Financial Tables in this press release.

In the fourth quarter of 2025, the Company renamed the segment formerly known as “PE Films.” This segment will be referred to as “High Performance Films” going forward. 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.

Fourth Quarter Financial Results Highlights

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from ongoing operations for Aluminum Extrusions was $15.7 million in the fourth quarter of 2025 versus $9.7 million in the fourth quarter of 2024 and versus $16.8 million in the third quarter of 2025.
- Sales volume was 37.2 million pounds in the fourth quarter of 2025 versus 35.8 million pounds in the fourth quarter of 2024 and 41.3 million pounds in the third quarter of 2025.
- Net new orders decreased 6% in the fourth quarter of 2025 versus the fourth quarter of 2024 and increased 2% versus the third quarter of 2025. Open orders at the end of the fourth quarter of 2025 and at the end of the fourth quarter of 2024 were approximately 17 million pounds versus 19 million pounds at the end of the third quarter of 2025.
EBITDA from ongoing operations for High Performance Films was $5.7 million in the fourth quarter of 2025 versus $7.6 million in the fourth quarter of 2024 and versus $7.2 million in the third quarter of 2025.
- Sales volume was 9.2 million pounds in the fourth quarter of 2025 versus 9.1 million pounds in the fourth quarter of 2024 and 9.7 million pounds in the third quarter of 2025.

Arijit (Bapi) DasGupta, Tredegar’s president and chief executive officer, said, “We closed the year with a strong fourth quarter EBITDA performance for Bonnell Aluminum and solid cash flow generation for High Performance Films. Bonnell delivered higher sales volumes and improved EBITDA versus the same quarter of 2024. This was a noteworthy achievement, given challenging market conditions, tariff-related cost pressures, and a decline in net new orders following the mid-year increase in Section 232 tariffs. Despite these results, our outlook for 2026 remains uncertain. The year began with significant weather-related disruptions, and the current tariff structure continues to exert a negative influence on the domestic extrusions market. Nevertheless, we believe that we are outperforming the broader market and remain committed to pursuing long-term sustainable volume growth through product-focused initiatives such as with our TSLOTS^TM branded products, which continue to grow and gain market share against our competitors.”

Dr. DasGupta continued, “High Performance Films had a solid finish to the year in the fourth quarter, as compared with an exceptional performance in the prior year. While sales volumes for surface protection films declined modestly in the fourth quarter versus the third quarter and last year, the High Performance Films business continued to generate strong cash flow, supported by cost discipline and operational efficiencies. We are forecasting that surface protection volumes will soften in the first quarter of 2026, driven by a significant customer’s inventory correction and scheduled maintenance activity. We continue to make progress on opportunities in adjacent markets where our core strengths can create differentiated value such as applications for automotive displays and protection of functional films.”

Dr. DasGupta added, “The Company continues to focus on cash generation and cost discipline. Net debt declined from $54.8 million at the beginning of the year to $28.4 million at year-end. We continue to look at cost savings opportunities across the Company, including operational and supply chain efficiencies, administrative costs, and outside services.”

OPERATIONS REVIEW

Aluminum Extrusions

Aluminum Extrusions (or Bonnell Aluminum) produces high-quality, soft-alloy and medium-strength custom fabricated and finished aluminum extrusions primarily for the following markets: building and construction (“B&C”), automotive, and specialty (which consists of consumer durables, machinery and equipment, electrical and renewable energy, and distribution end-use products). A summary of results for Aluminum Extrusions is provided below:

	Three Months Ended						Favorable/		Year Ended						Favorable/
(In thousands, except percentages)	December 31,						(Unfavorable)		December 31,						(Unfavorable)
(In thousands, except percentages)	2025			2024			% Change		2025			2024			% Change
Sales volume (lbs)		37,159			35,849		3.7	%		157,071			139,152		12.9	%
Net sales	$	154,505		$	122,462		26.2	%	$	598,975		$	471,815		27.0	%
Variable costs		110,206			91,423		(20.5	)%		454,249			354,397		(28.2	)%
Last-in first-out inventory adjustment		6,741			1,234		NM*			6,741			1,234		NM*
Manufacturing fixed costs¹		11,522			10,364		(11.2	)%		46,402			40,123		(15.6	)%
Selling, general and administrative costs¹		9,972			9,319		(7.0	)%		38,461			33,638		(14.3	)%
Other²		355			389		8.7	%		2,164			1,066		(103.0	)%
EBITDA from ongoing operations	$	15,709		$	9,733		61.4	%	$	50,958		$	41,357		23.2	%
Depreciation & amortization		(4,131	)		(4,330	)	4.6	%		(16,640	)		(17,722	)	6.1	%
EBIT from ongoing operations³	$	11,578		$	5,403		114.3	%	$	34,318		$	23,635		45.2	%
Capital expenditures	$	7,556		$	5,635				$	15,392		$	10,097
1. Excludes related depreciation and amortization 2. Includes segment allocated employee compensation benefit expenses 3. For a reconciliation of this non-GAAP measure to the most directly comparable measure calculated in accordance with GAAP, see the EBITDA from ongoing operations by segment statements in the Financial Tables in this press release. *Not meaningful (“NM”)

The following table presents the sales volume by end use market for the three months and years ended December 31, 2025 and 2024, and the three months ended September 30, 2025.

	Three Months Ended December 31,		Favorable/ (Unfavorable)		Three Months Ended September 30,	Favorable/ (Unfavorable)		Year Ended December 31,		Favorable/ (Unfavorable)
(In millions of lbs)	Three Months Ended December 31,		Favorable/ (Unfavorable)		Three Months Ended September 30,	Favorable/ (Unfavorable)		Year Ended December 31,		Favorable/ (Unfavorable)
(In millions of lbs)	2025	2024	% Change		2025	% Change		2025	2024	% Change
Sales volume by end-use market:
Non-residential B&C	19.7	18.2	8.2	%	22.3	(11.7	)%	83.9	77.3	8.5	%
Residential B&C	2.2	2.4	(8.3	)%	2.3	(4.3	)%	8.7	8.6	1.2	%
Automotive	2.8	2.6	7.7	%	2.9	(3.4	)%	11.9	12.0	(0.8	)%
Specialty products	12.5	12.6	(0.8	)%	13.8	(9.4	)%	52.6	41.3	27.4	%
Total	37.2	35.8	3.7	%	41.3	(9.9	)%	157.1	139.2	12.9	%

Fourth Quarter 2025 Results vs. Fourth Quarter 2024 Results

Net sales (sales less freight) in the fourth quarter of 2025 increased 26.2% versus the fourth quarter of 2024 primarily due to higher sales volume and the pass-through of higher metal costs. Sales volume in the fourth quarter of 2025 increased 3.7% versus the fourth quarter of 2024 and decreased 9.9% versus the third quarter of 2025. The Company increased shipments for curtainwall, storefront and windows within the nonresidential B&C market versus the fourth quarter of 2024. Within the specialty market, shipments for consumer durables, distribution products and TSLOTS^TM aluminum framing systems increased; shipments for solar panel products within the electrical product group decreased versus the fourth quarter of last year. Annual growth in shipments for TSLOTS^TM aluminum framing systems was primarily associated with increased demand for infrastructure associated with data containment and data centers.

Net new orders in the fourth quarter of 2025 decreased 6% versus the fourth quarter of 2024 and increased 2% versus the third quarter of 2025. Net new orders for the second half of 2025 decreased 19.8% versus the first half of 2025. The decrease in net new orders for the second half of 2025 is largely attributed to the tariff increase to 50%, discussed below. In the second half of 2025, shipments exceeded net new orders, resulting in a decline in open orders from peak levels earlier this year. Open orders were 17 million pounds at the end of the fourth quarter of 2025 and at the end of the fourth quarter of 2024, and 19 million pounds at the end of the third quarter of 2025. This level of open orders falls below the normalized level that is typically associated with stable demand patterns and healthy market dynamics.

Effective June 4, 2025, the Section 232 tariffs were increased to 50%, except for the United Kingdom, after previously being increased from 10% to 25%, effective March 12, 2025. These measures are in addition to existing antidumping and countervailing duties. There are no country-specific or product-specific exclusions occurring to date, except for an alternative arrangement with the United Kingdom. Tariffs and duties are part of the mechanical pass-through to customers in the U.S. market for aluminum extrusions for changes in metal costs. In addition, the Company implemented price increases during the third quarter of 2025 and the first quarter of 2026 to help offset other tariff-related cost increases that are not part of the metal cost pass-through mechanism.

Net new orders declined after the most recent tariff increase to 50% from an average of 3.4 million pounds per week for the weekly periods ending from January 5 to June 1, 2025, to an average of 2.6 million pounds per week for the weekly periods ending June 8, 2025 through March 6, 2026. The Company believes that the 23.6% decline in net new orders after the step-up in tariff to 50% is due to a combination of lower demand for extrusions in the U.S. and tariffs not resulting in the expected favorable shift of market share to U.S. aluminum extrusion producers due to the continued undervaluation of imported fabricated aluminum products. When the Section 232 program was initially strengthened, while import volume remained high, U.S. producers began to see increased market share gains against imports. However, since the tariff increased to 50%, the U.S. industry has seen these early gains diminished and imports from certain countries have again begun gaining share at the expense of the domestic industry, which has impacted the Company’s business. In response to ongoing market pressures associated with the current Section 232 tariff structure, the Company is participating in a coalition of U.S. downstream aluminum manufacturers that is engaging with federal policymakers on matters affecting the competitiveness of its industry.

EBITDA from ongoing operations in the fourth quarter of 2025 increased $6.0 million versus the fourth quarter of 2024, primarily due to:

A $13.3 million increase in contribution margin (net sales less variable costs) associated with:
- Higher volume ($1.1 million), favorable pricing ($3.5 million) and lower manufacturing costs associated with material yield ($1.6 million favorable in the fourth quarter of 2025 versus $0.7 million favorable in the fourth quarter of 2024), partially offset by higher labor rates ($0.8 million), higher maintenance and supply expense, partially due to the impact of tariffs ($1.1 million), higher die expense ($0.3 million) and higher utilities ($0.2 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 quickly changing commodity 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 benefit of $3.3 million in the fourth quarter of 2025 versus a benefit of $1.2 million in the fourth quarter of 2024.
  - The underlying average U.S. Midwest transaction prices for aluminum (which includes tariffs and duties) and the main factor causing the flow-through timing issue for the related periods were $2.16 and $1.89 per pound in November and August of 2025, compared to $1.39 and $1.25 per pound in November and August of 2024. See “Quarterly Average Price of Aluminum” chart on page 24 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”) for additional information on the average U.S. Midwest transaction prices for aluminum for each quarter of 2025 and 2024.
Inventories accounted for under the last-in-first-out (“LIFO”) method resulted in a net benefit of $2.6 million in the fourth quarter of 2025 compared to a net benefit of $0.1 million in the fourth quarter of 2024 due to a favorable current cost adjustment associated with higher metal prices ($9.3 million benefit in the fourth quarter of 2025 and $1.3 million benefit in fourth quarter of 2024), partially offset by a corresponding increase in the LIFO reserve, which resulted in a charge of $6.7 million in the fourth quarter 2025 versus a charge of $1.2 million in the fourth quarter 2024.
Higher fixed costs primarily associated with wage increases and compensation-related costs ($0.5 million), higher maintenance and utilities expenses ($0.3 million) and added resources to support increasing volume ($0.3 million).
Higher selling, general and administrative (“SG&A”) expenses primarily associated with employee-related compensation ($0.7 million).

Full Year 2025 Results vs. Full Year 2024 Results

Net sales in 2025 increased 27.0% versus 2024 primarily due to higher sales volume and the pass-through of higher metal costs. Sales volume increased 12.9% versus 2024.

EBITDA from ongoing operations increased $9.6 million in 2025 versus 2024, primarily due to:

A $27.3 million increase in contribution margin associated with:
- Higher volume ($14.6 million), favorable pricing ($5.6 million) and lower manufacturing costs associated with material yield ($0.8 million favorable in 2025 versus $0.5 million favorable in 2024), partially offset by: higher labor rates ($3.1 million); unfavorable productivity ($1.2 million); higher maintenance and supply expense, partially due to the impact of tariffs and severe weather and downed equipment in the first half of 2025 ($2.2 million); higher expense for externally produced billet associated with the increase in volume ($0.9 million); higher die expense associated with timing of purchases and increasing volumes ($1.0 million), and higher utilities ($0.9 million); and
- The timing of the flow-through under the FIFO method of aluminum raw material costs, which were previously acquired in a quickly changing commodity 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 benefit of $8.7 million in 2025 versus a benefit of $0.1 million in 2024.
Inventories accounted for under the LIFO method resulted in a net benefit of $2.6 million in 2025 compared to a net benefit of $0.1 million in 2024 due to a favorable current cost adjustment associated with higher metal prices ($9.3 million benefit in 2025 and $1.3 million benefit in 2024), partially offset by a corresponding increase in the LIFO reserve, which resulted in a charge of $6.7 million in 2025 versus a charge of $1.2 million in 2024.
Higher fixed costs primarily associated with wage increases and compensation-related costs ($2.9 million), higher maintenance and utilities expenses ($1.5 million) and added resources to support increasing volume ($1.2 million).
Higher SG&A expenses primarily due to employee-related compensation ($3.2 million), employee training and onboarding expense ($0.5 million) and routine environmental compliance expense ($0.3 million).
Higher other expense for employee-related medical costs caused by an increase in the number of high-cost medical claims versus favorable experience in recent years ($1.1 million). The Company is self-insured for medical claims with stop loss coverage for claims of over $0.3 million.

Given recent increased geopolitical tensions in the Middle East, Aluminum Extrusions is monitoring potential implications for the availability of certain aluminum‑related raw materials in 2026 and evaluating whether diversifying its sourcing may be warranted. Aluminum Extrusions maintains robust supply agreements that support the continuity of aluminum and other key cost components. See discussion of Quantitative and Qualitative Disclosures about Market Risk in Part II, Item 7a of the 2025 Form 10-K for additional information on aluminum price trends.

Projected Capital Expenditures and Depreciation & Amortization

Capital expenditures for Bonnell Aluminum are projected to be $20 million in 2026, including $7 million for productivity projects and $13 million for capital expenditures required to support continuity of operations. Depreciation expense is projected to be $14 million in 2026. Amortization expense is projected to be $2 million in 2026. The Company anticipates capital spending to increase from the levels of the past two years and return to a pattern more closely aligned with depreciation and amortization, consistent with long-term historical patterns. This approach supports ongoing maintenance and efficiency initiatives while maintaining disciplined capital allocation.

High Performance Films

High Performance Films produces surface protection films, advanced packaging films and films for other markets. A summary of results for High Performance Films is provided below:

	Three Months Ended						Favorable/		Year Ended						Favorable/
(In thousands, except percentages)	December 31,						(Unfavorable)		December 31,						(Unfavorable)
(In thousands, except percentages)	2025			2024			% Change		2025			2024			% Change
Sales volume (lbs)		9,234			9,101		1.5	%		38,328			39,324		(2.5	)%
Net sales	$	23,739		$	26,388		(10.0	)%	$	99,756		$	105,199		(5.2	)%
Variable costs		11,009			12,767		13.8	%		46,596			50,289		7.3	%
LIFO inventory adjustment		212			(174	)	NM*			212			(174	)	NM*
Manufacturing fixed costs¹		3,647			3,416		(6.8	)%		14,134			13,248		(6.7	)%
Selling, general and administrative costs¹		3,198			2,765		(15.7	)%		11,618			11,245		(3.3	)%
Other²		(10	)		41		124.4	%		59			105		43.8	%
EBITDA from ongoing operations	$	5,683		$	7,573		(25.0	)%	$	27,137		$	30,486		(11.0	)%
Depreciation & amortization		(1,190	)		(1,256	)	5.3	%		(4,895	)		(5,200	)	5.9	%
EBIT from ongoing operations³	$	4,493		$	6,317		(28.9	)%	$	22,242		$	25,286		(12.0	)%
Capital expenditures	$	438		$	634				$	1,849		$	1,761
1. Excludes related depreciation and amortization 2. Includes segment allocated employee compensation benefit expenses 3. For a reconciliation of this non-GAAP measure to the most directly comparable measure calculated in accordance with GAAP, see the EBITDA from ongoing operations by segment statements in the Financial Tables in this press release. *Not meaningful (“NM”)

Fourth Quarter 2025 Results vs. Fourth Quarter 2024 Results

Net sales in the fourth quarter of 2025 decreased 10.0% versus the fourth quarter of 2024, primarily due to a decrease in sales in surface protection films. Surface Protection sales volume decreased 8.0% in the fourth quarter of 2025 versus the fourth quarter of 2024. Sales volumes for surface protection films, which were supported by strong customer performance throughout 2024 and 2025, began to moderate in the fourth quarter of 2025, as the Company had expected. Volume trends for surface protection films are expected to further moderate in the first quarter of 2026. Volume for advanced packaging films, which are predominantly manufactured and sold in the U.S. and used in consumer staples, increased 16% in the fourth quarter of 2025 due to higher volume in lower-margin business.

To date, Surface Protection has not experienced an adverse impact on customer demand related to tariff actions; however, the situation remains fluid and the impact on consumer electronics is uncertain.

EBITDA from ongoing operations in the fourth quarter of 2025 decreased $1.9 million versus the fourth quarter of 2024, primarily due to:

Lower contribution margin of $0.9 million resulting from:
- A $0.9 million decrease from Surface Protection associated with lower volume, unfavorable sales mix and unfavorable pricing ($1.7 million), partially offset by operating efficiencies and cost improvements ($0.8 million); and
- Neutral impact from advanced packaging films as cost improvements were offset by unfavorable sales mix.
Inventories accounted for under the LIFO method that resulted in a charge of $0.2 million in the fourth quarter of 2025 versus a benefit of $0.2 million in the fourth quarter of 2024.
A foreign currency transaction loss of $0.2 million in the fourth quarter of 2025 versus a gain of $0.4 million in the fourth quarter of 2024.

There have been significant cyclical swings in the sales volume and EBITDA from ongoing operations for High Performance Films since the beginning of 2022, largely due to the unprecedented downturn in the display industry during the second half of 2022 and first half of 2023. EBITDA from ongoing operations for the past 4 years has averaged approximately $5.0 million per quarter. The top four customers comprised 88% of the net sales for High Performance Films for 2025 and 2024.

Full Year 2025 Results vs. Full Year 2024 Results

Net sales in 2025 decreased 5.2% versus 2024 due to a decrease of 4% in sales volume in 2025 for surface protection films versus 2024. Advanced packaging films volume decreased 1%.

EBITDA from ongoing operations in 2025 decreased $3.3 million versus 2024 primarily due to:

Lower contribution margin of $1.8 million resulting from:
- A $1.0 million decrease from Surface Protection associated with lower volume, unfavorable mix and favorable pricing ($4.5 million), partially offset by variable cost savings and operating efficiencies ($3.1 million) and the pass-through lag associated with resin costs (a charge of $0.2 million in 2025 versus a charge of $0.7 in 2024); and
- A $0.8 million decrease from advanced packaging films associated with lower volume, unfavorable shift in sales mix and unfavorable pricing ($1.0 million) and unfavorable operating efficiencies ($0.5 million), partially offset by variable cost savings ($0.5 million) and the pass-through lag associated with resin costs (a charge of $0.

Contacts

Tredegar Corporation

Neill Bellamy, 804-330-1211

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