Tredegar Corp 10-Q for FY2026 Q3
Tredegar Corp (TG)
10-Q
2026-11-06
For: 2026-09-30
View Original
Added on
November 06, 2026
About this 10-Q
Tredegar Corp filed this 10-Q on November 6, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Net loss
- $2.82M
- compared with net income of $7.07M a year earlier
- Diluted EPS
- -$0.08
- compared with $0.20 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended September 30, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission file number 1-10258
(Exact Name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||
Registrant’s Telephone Number, Including Area Code: (804) 330-1000
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ¨ | x | Smaller reporting company | ||||||||||||||||||||
| Non-accelerated filer | ¨ | Emerging growth company | |||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
The number of shares of Common Stock, no par value, outstanding as of October 30, 2026: 34,818,961
Tredegar Corporation
Table of Contents
| Page | |||||||||||
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Tredegar Corporation
Condensed Consolidated Balance Sheets
(In Thousands, Except Share Data)
(Unaudited)
| September 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Accounts and other receivables, net | |||||||||||
| Income taxes recoverable | — | ||||||||||
| Inventories | |||||||||||
| Prepaid expenses and other | |||||||||||
| Total current assets | |||||||||||
| Property, plant and equipment, at cost | |||||||||||
| Less: accumulated depreciation | ( | ( | |||||||||
| Net property, plant and equipment | |||||||||||
| Right-of-use leased assets | |||||||||||
| Identifiable intangible assets, net | |||||||||||
| Goodwill | |||||||||||
| Deferred income taxes | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued expenses | |||||||||||
| Lease liability, short-term | |||||||||||
| Short-term debt | |||||||||||
| Income taxes payable | |||||||||||
| Total current liabilities | |||||||||||
| Lease liability, long-term | |||||||||||
| ABL revolving facility | |||||||||||
| Pension and other postretirement benefit obligations, net | |||||||||||
| Other non-current liabilities | |||||||||||
| Total liabilities | |||||||||||
| Shareholders’ equity: | |||||||||||
Common stock, no par value (authorized shares | |||||||||||
Common stock held in trust for savings restoration plan ( | ( | ( | |||||||||
| Accumulated other comprehensive income (loss): | |||||||||||
| Foreign currency translation adjustment | |||||||||||
| Gain (loss) on derivative financial instruments | ( | ||||||||||
| Pension and other postretirement benefit adjustments | ( | ( | |||||||||
| Retained earnings | |||||||||||
| Total shareholders’ equity | |||||||||||
| Total liabilities and shareholders’ equity | $ | $ | |||||||||
See accompanying notes to the condensed consolidated financial statements.
2
Tredegar Corporation
Condensed Consolidated Statements of Income (Loss)
(In Thousands, Except Per Share Data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues and other items: | |||||||||||||||||||||||
| Sales | $ | $ | $ | $ | |||||||||||||||||||
| Other income (expense), net | |||||||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of goods sold | |||||||||||||||||||||||
| Freight | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Research and development | |||||||||||||||||||||||
| Amortization of identifiable intangibles | |||||||||||||||||||||||
| Pension and postretirement benefits | |||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Asset impairments and costs associated with exit and disposal activities, net of adjustments | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | ( | ||||||||||||||||||||||
| Income tax expense (benefit) | ( | ||||||||||||||||||||||
| Net income (loss) from continuing operations | ( | ||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | ( | ||||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||
| Basic: | |||||||||||||||||||||||
| Continuing operations | $ | ( | $ | $ | $ | ||||||||||||||||||
| Discontinued operations | |||||||||||||||||||||||
| Basic earnings (loss) per share | $ | ( | $ | $ | $ | ||||||||||||||||||
| Diluted: | |||||||||||||||||||||||
| Continuing operations | $ | ( | $ | $ | $ | ||||||||||||||||||
| Discontinued operations | |||||||||||||||||||||||
| Diluted earnings (loss) per share | $ | ( | $ | $ | $ | ||||||||||||||||||
| Shares used to compute earnings (loss) per share: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
See accompanying notes to the condensed consolidated financial statements.
3
Tredegar Corporation
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In Thousands)
(Unaudited)
| Three Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income (loss) | $ | ( | $ | ||||||||
| Other comprehensive income (loss): | |||||||||||
Unrealized foreign currency translation adjustment ($ | |||||||||||
Derivative financial instruments adjustment (net of tax benefit of $ | ( | ||||||||||
Amortization of prior service costs and net gains or losses (net of tax expense of $ | ( | ||||||||||
| Other comprehensive income (loss) | ( | ||||||||||
| Comprehensive income (loss) | $ | ( | $ | ||||||||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income (loss) | $ | $ | |||||||||
| Other comprehensive income (loss): | |||||||||||
Unrealized foreign currency translation adjustment ($ | |||||||||||
Derivative financial instruments adjustment (net of tax benefit of $ | ( | ||||||||||
Amortization of prior service costs and net gains or losses (net of tax benefit of $ | ( | ( | |||||||||
| Other comprehensive income (loss) | ( | ||||||||||
| Comprehensive income (loss) | $ | $ | |||||||||
See accompanying notes to the condensed consolidated financial statements.
4
Tredegar Corporation
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | $ | |||||||||
| Adjustments for noncash items: | |||||||||||
| Depreciation | |||||||||||
| Amortization of identifiable intangibles | |||||||||||
| Reduction of right-of-use leased assets | |||||||||||
| Deferred income taxes | |||||||||||
| Accrued pension and post-retirement benefits | |||||||||||
| Stock-based compensation expense | |||||||||||
| Production equipment asset disposal | |||||||||||
| Gain on the sale of assets | ( | ||||||||||
| Gain on the sale of divested business | ( | ( | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts and other receivables | ( | ( | |||||||||
| Inventories | ( | ( | |||||||||
| Income taxes recoverable/payable | ( | ( | |||||||||
| Prepaid expenses and other | |||||||||||
| Accounts payable and accrued expenses | |||||||||||
| Lease liability | ( | ( | |||||||||
| Pension and postretirement benefit plan contributions | ( | ( | |||||||||
| Other, net | |||||||||||
| Net cash provided by (used in) operating activities | |||||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Proceeds from the sale of Terphane | |||||||||||
| Proceeds from the sale of assets | |||||||||||
| Net cash (used in) provided by investing activities | ( | ||||||||||
| Cash flows from financing activities: | |||||||||||
| Borrowings | |||||||||||
| Debt principal payments | ( | ( | |||||||||
| Debt financing costs | ( | ||||||||||
| Net cash provided by (used in) financing activities | ( | ||||||||||
| Effect of exchange rate changes on cash | |||||||||||
| Increase (decrease) in cash and cash equivalents | |||||||||||
| Cash and cash equivalents at beginning of period | |||||||||||
| Cash and cash equivalents at end of period | $ | $ | |||||||||
See accompanying notes to the condensed consolidated financial statements.
5
Tredegar Corporation
Condensed Consolidated Statements of Shareholders’ Equity
(In Thousands, Except Share and Per Share Data)
(Unaudited)
The following summarizes the changes in shareholders’ equity for the three month period ended September 30, 2026:
| Common Stock | Retained Earnings | Trust for Savings Restoration Plan | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||
Balance July 1, 2026 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| Net income (loss) | — | ( | — | — | ( | ||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | ||||||||||||||||||||||||||
| Derivative financial instruments adjustment | — | — | — | ( | ( | ||||||||||||||||||||||||
| Amortization of prior service costs and net gains or losses | — | — | — | ||||||||||||||||||||||||||
| Stock-based compensation expense | ( | — | — | — | ( | ||||||||||||||||||||||||
| Repurchase of employee common stock for tax withholdings | ( | — | — | — | ( | ||||||||||||||||||||||||
Balance September 30, 2026 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
The following summarizes the changes in shareholders’ equity for the nine month period ended September 30, 2026:
| Common Stock | Retained Earnings | Trust for Savings Restoration Plan | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||
| Balance at January 1, 2026 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| Net income (loss) | — | — | — | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | ||||||||||||||||||||||||||
| Derivative financial instruments adjustment | — | — | — | ( | ( | ||||||||||||||||||||||||
| Amortization of prior service costs and net gains or losses | — | — | — | ( | ( | ||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
| Repurchase of employee common stock for tax withholdings | ( | — | — | — | ( | ||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
See accompanying notes to the condensed consolidated financial statements.
6
Tredegar Corporation
Condensed Consolidated Statements of Shareholders’ Equity
(In Thousands, Except Share and Per Share Data)
(Unaudited)
The following summarizes the changes in shareholders’ equity for the three month period ended September 30, 2025:
| Common Stock | Retained Earnings | Trust for Savings Restoration Plan | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||
| Balance at July 1, 2025 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| Net income (loss) | — | — | — | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | ||||||||||||||||||||||||||
| Derivative financial instruments adjustment | — | — | — | ||||||||||||||||||||||||||
| Amortization of prior service costs and net gains or losses | — | — | — | ( | ( | ||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
The following summarizes the changes in shareholders’ equity for the nine month period ended September 30, 2025:
| Common Stock | Retained Earnings | Trust for Savings Restoration Plan | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
| Net income (loss) | — | — | — | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | ||||||||||||||||||||||||||
| Derivative financial instruments adjustment | — | — | — | ||||||||||||||||||||||||||
| Amortization of prior service costs and net gains or losses | — | — | — | ( | ( | ||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
| Repurchase of employee common stock for tax withholdings | ( | — | — | — | ( | ||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
See accompanying notes to the condensed consolidated financial statements.
7
TREDEGAR CORPORATION
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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 September 30, 2026, the condensed consolidated results of operations for the three and nine months ended September 30, 2026 and 2025, the condensed consolidated cash flows for the nine months ended September 30, 2026 and 2025, and the condensed consolidated changes in shareholders’ equity for the three and nine months ended September 30, 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 third quarter for 2026 and 2025 for this segment references 13-week periods ended September 27, 2026 and September 28, 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 September 27, 2026 and September 30, 2026.
The condensed consolidated financial statements as of December 31, 2025 included herein were 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 do not include all disclosures required by GAAP. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the 2025 Form 10-K.
The results of operations for the three and nine months ended September 30, 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") Release 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 a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this ASU will require the Company to disclose specified information about certain costs and expenses in the notes to the financial statements. This ASU is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on our consolidated financial statements and related disclosures.
8
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.
As of September 30, 2026 and December 31, 2025, accounts and other receivables, net include the following:
| (In thousands) | September 30, 2026 | December 31, 2025 | |||||||||
| Customer receivables | $ | $ | |||||||||
| Other receivables | |||||||||||
| Total accounts and other receivables | |||||||||||
| Less: Allowance for credit losses | ( | ( | |||||||||
| Total accounts and other receivables, net | $ | $ | |||||||||
The components of inventories are as follows:
| (In thousands) | September 30, 2026 | December 31, 2025 | |||||||||
| Finished goods | $ | $ | |||||||||
| Work-in-process | |||||||||||
| Raw materials | |||||||||||
| Stores, supplies and other | |||||||||||
| Total | $ | $ | |||||||||
Tredegar sponsored a noncontributory defined benefit (pension) plan covering certain current and former U.S. employees. As of January 31, 2018, the plan no longer accrued benefits associated with crediting employees for service, thereby freezing all future benefits under the plan. On February 10, 2022, Tredegar announced the initiation of a process to terminate and settle its frozen defined benefit pension plan through lump sum distributions and the purchase of annuity contracts. On November 3, 2023, the pension plan termination and settlement process for the Company was completed, and the remaining pension plan obligation was transferred to Massachusetts Mutual Life Insurance Company. During 2023, the Company recognized a total pre-tax pension settlement loss of $92.3 million.
Tredegar also has a non-qualified supplemental pension plan covering certain employees. Effective December 31, 2005, further participation in this plan was terminated and benefit accruals for existing participants were frozen. Pension expense recognized for this plan was immaterial in the three and nine months ended September 30, 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. As of September 30, 2025, the Other Post-Retirement Benefits total obligation and unrecognized pre-tax actuarial gain reported in the condensed consolidated balance sheets was $5.0 million and $1.3 million, respectively, which was realized into the income statement during the fourth quarter of 2025.
9
The components of net periodic benefit cost for the pension and Other Post-Retirement Benefits reflected in the condensed consolidated statements of income for the three and nine months ended September 30, 2026 and 2025, are shown below:
| Pension Benefits | Other Post-Retirement Benefits | ||||||||||||||||||||||
| Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Amortization of prior service costs, (gains) losses and net transition asset | ( | ||||||||||||||||||||||
| Net periodic benefit cost | $ | $ | $ | $ | |||||||||||||||||||
| Pension Benefits | Other Post-Retirement Benefits | ||||||||||||||||||||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Amortization of prior service costs, (gains) losses and net transition asset | ( | ( | |||||||||||||||||||||
| Net periodic benefit cost | $ | $ | $ | $ | ( | ||||||||||||||||||
Basic earnings per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income (loss) by the weighted average common and potentially dilutive common equivalent shares outstanding, determined as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Weighted average shares outstanding used to compute basic earnings per share | |||||||||||||||||||||||
| Incremental dilutive shares attributable to stock options | |||||||||||||||||||||||
| Shares used to compute diluted earnings per share | |||||||||||||||||||||||
10
The changes in accumulated other comprehensive income (loss) by component for the three months ended September 30, 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 July 1, 2026 | $ | $ | $ | ( | $ | ||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||
| Income tax (expense) benefit | ( | ( | |||||||||||||||||||||
| Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
| Reclassification adjustment to net income (loss) | ( | ( | |||||||||||||||||||||
| Income tax (expense) benefit | ( | ||||||||||||||||||||||
| Reclassification adjustment to net income (loss), net of tax | ( | ( | |||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Balance at September 30, 2026 | $ | $ | ( | $ | ( | $ | |||||||||||||||||
The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 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 | $ | $ | $ | ( | $ | ||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||
| Income tax (expense) benefit | ( | ( | |||||||||||||||||||||
| Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
| Reclassification adjustment to net income (loss) | ( | ( | ( | ||||||||||||||||||||
| Income tax (expense) benefit | |||||||||||||||||||||||
| Reclassification adjustment to net income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Balance at September 30, 2026 | $ | $ | ( | $ | ( | $ | |||||||||||||||||
11
The changes in accumulated other comprehensive income (loss) by component for the three months ended September 30, 2025.
| (In thousands) | Foreign Currency Translation | Gain (Loss) on Derivative Financial Instruments | Pension & Other Postretirement Benefit Adjust | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
| Balance at July 1, 2025 | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||
| Income tax (expense) benefit | ( | ( | |||||||||||||||||||||
| Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
| Reclassification adjustment to net income (loss) | ( | ( | ( | ||||||||||||||||||||
| Income tax (expense) benefit | |||||||||||||||||||||||
| Reclassification adjustment to net income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
Balance at September 30, 2025 | $ | $ | $ | $ | |||||||||||||||||||
The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2025.
| (In thousands) | Foreign Currency Translation | Gain (Loss) on Derivative Financial Instruments | Pension & Other Postretirement Benefit Adjust | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
| Balance at January 1, 2025 | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||
| Income tax (expense) benefit | ( | ( | |||||||||||||||||||||
| Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
| Reclassification adjustment to net income (loss) | ( | ( | ( | ||||||||||||||||||||
| Income tax (expense) benefit | |||||||||||||||||||||||
| Reclassification adjustment to net income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
Balance at September 30, 2025 | $ | $ | $ | $ | |||||||||||||||||||
Tredegar uses derivative financial instruments for the purpose of hedging margin exposure from fixed-price forward sales contracts in Aluminum Extrusions. These derivative financial instruments are designated as and qualify as cash flow hedges and are recognized in the condensed consolidated balance sheet at fair value. The fair value of derivative instruments recorded on the consolidated balance sheets is based upon Level 2 inputs. If individual derivative instruments with the same counterparty can be settled on a net basis, the Company records the corresponding derivative fair values as a net asset or net liability.
In the normal course of business, Aluminum Extrusions enters into fixed-price forward sales contracts with a small subset of its customers for the future sale of fixed quantities of aluminum extrusions at scheduled intervals. In order to hedge margin exposure created from the fixing of future sales prices relative to volatile raw material (aluminum) costs, Aluminum Extrusions enters into a combination of forward purchase commitments and futures contracts to acquire or hedge aluminum, based on the scheduled purchases for the firm sales commitments. The fixed-price firm sales commitments and related hedging instruments
12
have durations generally no longer than 12 months. The notional amount of aluminum futures contracts that hedged future purchases of aluminum to meet fixed-price forward sales contract obligations was $27.5 million (11.0 million pounds of aluminum) at September 30, 2026 and $10.0 million (5.2 million pounds of aluminum) at December 31, 2025.
The table below summarizes the location and gross amounts of aluminum futures contract fair values (Level 2) in the condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025:
| September 30, 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 | $ | $ | ||||||||||||||
Liability derivatives: Aluminum futures contracts | Accrued expenses | ( | ( | ||||||||||||||
| Aluminum futures contracts | Other non-current liabilities | ( | ( | ||||||||||||||
| Net asset (liability) | $ | ( | $ | ||||||||||||||
In the event that a counterparty to an aluminum fixed-price forward sales contract chooses not to take delivery of its aluminum extrusions, the customer is contractually obligated to compensate Aluminum Extrusions for any losses on the related aluminum futures and/or forward contracts through the date of cancellation.
The pre-tax effect on net income (loss) and other comprehensive income (loss) of derivative instruments classified as cash flow hedges and described in the previous paragraphs for the three and nine month periods ended September 30, 2026 and 2025 is summarized in the table below:
| Cash Flow Derivative Hedges | |||||||||||
| Three Months Ended September 30, | |||||||||||
| Aluminum Futures Contracts | |||||||||||
| (In thousands) | 2026 | 2025 | |||||||||
| Amount of pre-tax gain (loss) recognized in other comprehensive income (loss) | $ | $ | |||||||||
| 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) | $ | $ | |||||||||
| Nine Months Ended September 30, | |||||||||||
| Aluminum Futures Contracts | |||||||||||
| 2026 | 2025 | ||||||||||
| Amount of pre-tax gain (loss) recognized in other comprehensive income (loss) | $ | $ | |||||||||
| Location of gain (loss) reclassified from accumulated other comprehensive income (loss) into net income (effective portion) | Cost of goods sold | Cost of goods sold | |||||||||
| Amount of pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) to net income (effective portion) | $ | $ | |||||||||
As of September 30, 2026, the Company expects an immaterial amount of unrealized after-tax gains on aluminum derivative instruments reported in accumulated other comprehensive income (loss) to be reclassified to earnings within the next 12 months. For the three and nine month periods ended September 30, 2026 and 2025, net gains or losses realized, from previously unrealized net gains or losses on hedges that had been discontinued, were not material.
13
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 evaluate the operating performance of Tredegar’s ongoing operations, monitor budget versus actual results, establish management’s compensation and allocate resources. EBITDA from ongoing operations is the primary measure of segment performance and is consistent with how the business is managed internally, in addition to being a key financial and analytic metric for borrowing capacity and estimated enterprise value.
The Company uses sales less freight (“net sales”) as its measure of revenues from external customers at the segment level. This measure is separately included in the financial information regularly provided to the CODM.
14
The following tables present segment revenue, segment profit (loss), and significant expenses for the three months ended September 30, 2026 and 2025:
| Three Months Ended September 30, 2026 | |||||||||||||||||
| (In thousands) | Aluminum Extrusions | High Performance Films | Total | ||||||||||||||
| Net Sales | $ | $ | $ | ||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
| Add back freight | |||||||||||||||||
| Sales as shown in the consolidated statements of income (loss) | $ | ||||||||||||||||
| Less: | |||||||||||||||||
| Variable costs | $ | $ | $ | ||||||||||||||
Manufacturing fixed costs1 | |||||||||||||||||
Selling, general and administrative costs1 | |||||||||||||||||
Other2 | |||||||||||||||||
| EBITDA from ongoing operations | $ | $ | $ | ||||||||||||||
| Reconciliation of profit (loss): | |||||||||||||||||
| Depreciation and amortization | |||||||||||||||||
| Plant shutdowns, asset impairments, restructurings and other | |||||||||||||||||
| Interest expense, net | |||||||||||||||||
Corporate expenses, net3 | |||||||||||||||||
| Income (loss) from continuing operations before income tax | ( | ||||||||||||||||
| Income tax expense (benefit) | ( | ||||||||||||||||
| Net income (loss) from continuing operations | ( | ||||||||||||||||
| Income (loss) from discontinued operations, net of tax | |||||||||||||||||
| Net income (loss) | $ | ( | |||||||||||||||
| 1. Excludes related depreciation and amortization. 2. Includes segment allocated employee compensation benefit expenses. 3. Includes corporate depreciation and amortization. | |||||||||||||||||
15
| Three Months Ended September 30, 2025 | |||||||||||||||||
| (In thousands) | Aluminum Extrusions | High Performance Films | Total | ||||||||||||||
| Net Sales | $ | $ | $ | ||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
| Add back freight | |||||||||||||||||
| Sales as shown in the consolidated statements of income (loss) | $ | ||||||||||||||||
| Less: | |||||||||||||||||
| Variable costs | $ | $ | $ | ||||||||||||||
Manufacturing fixed costs1 | |||||||||||||||||
Selling, general and administrative costs1 | |||||||||||||||||
Other2 | ( | ||||||||||||||||
| EBITDA from ongoing operations | $ | $ | $ | ||||||||||||||
| Reconciliation of profit (loss): | |||||||||||||||||
| Depreciation and amortization | |||||||||||||||||
| Plant shutdowns, asset impairments, restructurings and other | |||||||||||||||||
| Interest expense, net | |||||||||||||||||
Corporate expenses, net3 | |||||||||||||||||
| Income (loss) from continuing operations before income tax | |||||||||||||||||
| Income tax expense (benefit) | |||||||||||||||||
| Net income (loss) from continuing operations | |||||||||||||||||
| Income (loss) from discontinued operations, net of tax | ( | ||||||||||||||||
| Net income (loss) | $ | ||||||||||||||||
| 1. Excludes related depreciation and amortization. 2. Includes segment allocated employee compensation benefit expenses. 3. Includes corporate depreciation and amortization. | |||||||||||||||||
16
The following tables present segment revenue, segment profit (loss), and significant expenses for the nine months ended September 30, 2026 and 2025:
| Nine Months Ended September 30, 2026 | |||||||||||||||||
| (In thousands) | Aluminum Extrusions | High Performance Films | Total | ||||||||||||||
| Net Sales | $ | $ | $ | ||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
| Add back freight | |||||||||||||||||
| Sales as shown in the consolidated statements of income (loss) | $ | ||||||||||||||||
| Less: | |||||||||||||||||
| Variable costs | $ | $ | $ | ||||||||||||||
Manufacturing fixed costs1 | |||||||||||||||||
Selling, general and administrative costs1 | |||||||||||||||||
Other2 | ( | ( | ( | ||||||||||||||
| EBITDA from ongoing operations | $ | $ | $ | ||||||||||||||
| Reconciliation of profit (loss): | |||||||||||||||||
| Depreciation and amortization | |||||||||||||||||
| Plant shutdowns, asset impairments, restructurings and other | |||||||||||||||||
| Interest expense, net | |||||||||||||||||
Corporate expenses, net3 | |||||||||||||||||
| Income (loss) from continuing operations before income tax | |||||||||||||||||
| Income tax expense (benefit) | |||||||||||||||||
| Net income (loss) from continuing operations | |||||||||||||||||
| Income (loss) from discontinued operations, net of tax | |||||||||||||||||
| Net income (loss) | $ | ||||||||||||||||
| 1. Excludes related depreciation and amortization. 2. Includes segment allocated employee compensation benefit expenses. 3. Includes corporate depreciation and amortization. | |||||||||||||||||
17
| Nine Months Ended September 30, 2025 | |||||||||||||||||
| (In thousands) | Aluminum Extrusions | High Performance Films | Total | ||||||||||||||
| Net Sales | $ | $ | $ | ||||||||||||||
| Reconciliation of revenue: | |||||||||||||||||
| Add back freight | |||||||||||||||||
| Sales as shown in the consolidated statements of income (loss) | $ | ||||||||||||||||
| Less: | |||||||||||||||||
| Variable costs | $ | $ | $ | ||||||||||||||
Manufacturing fixed costs1 | |||||||||||||||||
Selling, general and administrative costs1 | |||||||||||||||||
Other2 | |||||||||||||||||
| EBITDA from ongoing operations | $ | $ | $ | ||||||||||||||
| Reconciliation of profit (loss): | |||||||||||||||||
| Depreciation and amortization | |||||||||||||||||
| Plant shutdowns, asset impairments, restructurings and other | |||||||||||||||||
| Interest expense, net | |||||||||||||||||
Corporate expenses, net3 | |||||||||||||||||
| Income (loss) from continuing operations before income tax | |||||||||||||||||
| Income tax expense (benefit) | |||||||||||||||||
| Net income (loss) from continuing operations | |||||||||||||||||
| Income (loss) from discontinued operations, net of tax | |||||||||||||||||
| Net income (loss) | $ | ||||||||||||||||
| 1. Excludes related depreciation and amortization. 2. Includes segment allocated employee compensation benefit expenses. 3. Includes corporate depreciation and amortization. | |||||||||||||||||
The following table presents identifiable assets by segment at September 30, 2026 and December 31, 2025:
| (In thousands) | September 30, 2026 | December 31, 2025 | |||||||||
| Aluminum Extrusions | $ | $ | |||||||||
| High Performance Films | |||||||||||
| Subtotal | |||||||||||
| General corporate | |||||||||||
| Cash and cash equivalents | |||||||||||
| Total | $ | $ | |||||||||
The following table presents depreciation and amortization for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Aluminum Extrusions | $ | $ | $ | $ | |||||||||||||||||||
| High Performance Films | |||||||||||||||||||||||
| Subtotal | |||||||||||||||||||||||
| General corporate | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
18
The following table presents capital expenditures for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Aluminum Extrusions | $ | $ | $ | $ | |||||||||||||||||||
| High Performance Films | |||||||||||||||||||||||
| General Corporate | ( | ||||||||||||||||||||||
| Subtotal | $ | $ | $ | $ | |||||||||||||||||||
The following tables disaggregate the Company’s net sales by geographic area and product group for the three and nine months ended September 30, 2026 and 2025:
| Net Sales by Geographic Area (a) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| United States | $ | $ | $ | $ | |||||||||||||||||||
| Exports from the United States to: | |||||||||||||||||||||||
| Asia | |||||||||||||||||||||||
| Latin America | |||||||||||||||||||||||
| Canada | |||||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Operations outside the United States: | |||||||||||||||||||||||
| Asia | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
(a) Export sales relate mostly to High Performance Films. The geographic area for net sales is determined by the shipping destination. | |||||||||||||||||||||||
The Company’s facilities in Pottsville, PA (“PV”) and Guangzhou, China (“GZ”) have a tolling arrangement whereby certain surface protection films are manufactured in GZ for a fee with raw materials supplied from PV that are then shipped by GZ directly to customers principally in the Asian market, but paid by customers directly to PV. Amounts associated with this intercompany tolling arrangement are reported in the table above as export sales from the U.S. to Asia, and include net sales of $6.6 million and $6.7 million in the third quarter of 2026 and 2025, respectively, and $20.3 million and $19.7 million in the first nine months of 2026 and 2025, respectively.
19
| Net Sales by Product Group | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Aluminum Extrusions: | |||||||||||||||||||||||
| Nonresidential building & construction | $ | $ | $ | $ | |||||||||||||||||||
| Consumer durables | |||||||||||||||||||||||
| Automotive | |||||||||||||||||||||||
| Residential building & construction | |||||||||||||||||||||||
| Electrical | |||||||||||||||||||||||
| Machinery & equipment | |||||||||||||||||||||||
| Distribution | |||||||||||||||||||||||
| Subtotal | |||||||||||||||||||||||
| High Performance Films: | |||||||||||||||||||||||
| Surface protection films | |||||||||||||||||||||||
| Advanced packaging | |||||||||||||||||||||||
| Subtotal | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
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 and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Selling, general and administrative | $ | ( | $ | $ | $ | ||||||||||||||||||
| Gain on the sale of divested business | ( | ( | |||||||||||||||||||||
| Total | ( | ( | ( | ||||||||||||||||||||
| Income (loss) from discontinued operations before income tax | ( | ||||||||||||||||||||||
Income tax expense (benefit)1 | ( | ||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | $ | $ | ( | $ | $ | ||||||||||||||||||
1. An inconsequential income tax expense (benefit) was recognized during the three and nine months ended September 30, 2025, primarily due to foreign tax credits generated from the final Brazilian withholding tax payment made during the periods, which offset the tax liability on the income from discontinued operations. | |||||||||||||||||||||||
20
The following table provides significant operating, investing and financing cash flow information for discontinued operations:
| Nine Months Ended September 30, | |||||||||||
| (In thousands) | 2026 | 2025 | |||||||||
| Operating activities: | |||||||||||
| Gain on the sale of divested business | $ | ( | $ | ( | |||||||
| Total | $ | ( | $ | ( | |||||||
| Investing activities: | |||||||||||
| Proceeds from the sale of Terphane | $ | $ | |||||||||
| Total | $ | $ | |||||||||
21
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Forward-looking and Cautionary Statements
Some of the information contained in this Quarterly Report on Form 10-Q ("Form 10-Q") 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 (defined below);
•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 of Tredegar’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). 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 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.
References herein to “Tredegar,” “the Company,” “we,” “us” and “our” are to Tredegar Corporation and its subsidiaries, collectively, unless the context otherwise indicates or requires.
Unless otherwise stated or indicated, all comparisons are to the prior year period. References to "Notes" are to notes to our condensed consolidated financial statements found in Part I, Item 1 of this Form 10-Q.
22
Critical Accounting Policies and Estimates
In the ordinary course of business, the Company makes a number of estimates and assumptions relating to the reporting of results of operations and financial position in the preparation of financial statements in conformity with generally accepted accounting standards in the United States ("GAAP"). The Company believes the estimates, assumptions and judgments described in the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "2025 Form 10-K") have the greatest potential impact on our financial statements, so Tredegar considers these to be its critical accounting policies. Since December 31, 2025, there have been no changes in these policies or estimates that have had a material impact on our results of operations or financial position.
Business Overview
Tredegar Corporation is an industrial manufacturer with two primary businesses: custom aluminum extrusions for the building & construction (“B&C”), automotive and specialty end-use markets in the United States through its Aluminum Extrusions segment (with exports comprising less than 5% of total sales volume) and surface protection films for high-technology applications in the global electronics industry through its High Performance Films segment. With approximately 1,700 employees, the Company operates manufacturing facilities in the U.S. and China.
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.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") from ongoing operations is the measure of segment profit and loss used by Tredegar’s chief operating decision maker ("CODM") for purposes of assessing financial performance. 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.
Earnings before interest and taxes ("EBIT") from ongoing operations is a non-GAAP financial measure included in the reconciliation of segment financial information to consolidated results for the Company in the Segment Operations Review section below. 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 as defined by GAAP. We believe that EBIT is a widely understood and utilized metric that is meaningful to certain investors and that including this financial metric in the reconciliation of management’s performance metric, EBITDA from ongoing operations, provides useful information to those investors that primarily utilize EBIT to analyze the Company’s core operations.
Third quarter 2026 net income (loss) from continuing operations was $(2.8) million ($(0.08) per diluted share) compared to $7.1 million ($0.20 per diluted share) in the third quarter of 2025.
Third Quarter Financial Results Highlights
•EBITDA from ongoing operations for Aluminum Extrusions was $2.5 million in the third quarter of 2026 versus $16.8 million in the third quarter of 2025 and versus $14.5 million in the second quarter of 2026.
•EBITDA from ongoing operations for High Performance Films was $4.6 million in the third quarter of 2026 versus $7.2 million in the third quarter of 2025 and versus $5.8 million in the second quarter of 2026.
23
Results of Operations
Third Quarter of 2026 Compared with the Third Quarter of 2025 Results
The following table presents a bridge of consolidated net income (loss) from continuing operations from the third quarter of 2025 to the third quarter of 2026 with management's related discussion and analysis below the table.
| (In thousands) | ||||||||
Net income (loss) from continuing operations for the three months ended September 30, 2025 | $ | 7,109 | ||||||
| Income tax expense (benefit) | 2,014 | |||||||
Income (loss) from continuing operations before income taxes for the three months ended September 30, 2025 | 9,123 | |||||||
| Change in income (loss) from increases (decreases) in the following items: | ||||||||
| Sales | 12,232 | |||||||
| Other income (expense), net | 17 | |||||||
| Total | 12,249 | |||||||
| Change in income (loss) from (increases) decreases in the following items: | ||||||||
| Cost of goods sold | (29,007) | |||||||
| Freight | 461 | |||||||
| Selling, general and administrative | 3,936 | |||||||
| Interest expense | 242 | |||||||
| Other | (493) | |||||||
| Total | (24,861) | |||||||
Income (loss) from continuing operations before income taxes for the three months ended September 30, 2026 | (3,489) | |||||||
| Income tax expense (benefit) | (663) | |||||||
Net income (loss) from continuing operations for the three months ended September 30, 2026 | $ | (2,826) | ||||||
Sales in the third quarter of 2026 increased by $12.2 million compared with the third quarter of 2025. Net sales (sales less freight) in Aluminum Extrusions increased $14.8 million, primarily due to the pass-through of higher metal costs, partially offset by lower volume. Net sales in High Performance Films decreased $2.1 million, primarily due to a decrease in sales volume and unfavorable mix, partially offset by favorable pricing for surface protection films. For more information on net sales and volume, see the Segment Operations Review below.
Consolidated gross profit (sales minus cost of goods sold and freight) as a percentage of sales (gross profit margin) was 7.2% in the third quarter of 2026 compared to 16.0% in the third quarter of 2025. The gross profit margin in Aluminum Extrusions decreased primarily due to higher labor rates, unfavorable labor productivity, higher maintenance expense and higher freight expense, partially offset by favorable pricing and mix and favorable manufacturing costs primarily associated with casting capabilities due to scrap spreads and higher scrap utilization. The gross profit margin in High Performance Films decreased primarily due to a lower surface protection films contribution margin associated with unfavorable volume and mix and the pass-through lag associated with higher resin costs, partially offset by cost improvements.
As a percentage of sales, selling, general and administrative (“SG&A”) and research and development ("R&D") expenses were 8.0% in the third quarter of 2026 compared with 10.5% in the third quarter of 2025. Third quarter sales increased 6.3% while SG&A decreased 19.5% compared to the prior period. Lower SG&A spending was primarily due to lower professional fees associated with business development activities ($1.2 million), lower stock-based compensation ($1.0 million) and lower employee compensation ($0.9 million).
Interest expense was $0.5 million in the third quarter of 2026 in comparison to $0.8 million in the third quarter of 2025. The decrease in interest expense was primarily due to lower weighted average total debt outstanding and lower interest rates.
The effective tax rate from continuing operations in the third quarter of 2026 was 19.0% compared to 22.1% in the third quarter of 2025. The effective tax rate for the third quarter of 2026 varied from the statutory rate of 21% due to research and development tax credits while the effective tax rate for the third quarter of 2025 was consistent with the statutory rate of 21%.
24
Average total debt outstanding and interest rates were as follows:
| Three Months Ended September 30, | |||||||||||
| (In millions, except percentages) | 2026 | 2025 | |||||||||
| Floating-rate debt with interest charged on a rollover basis plus a credit spread: | |||||||||||
| Average total outstanding debt balance | $ | 48.1 | $ | 59.0 | |||||||
| Average interest rate | 5.9 | % | 6.5 | % | |||||||
First Nine Months of 2026 Compared with the First Nine Months of 2025 Results
The following table presents a bridge of consolidated net income (loss) from continuing operations from the first nine months of 2025 to the first nine months of 2026 with management's related discussion and analysis below the table.
| (In thousands) | ||||||||
Net income (loss) from continuing operations for the nine months ended September 30, 2025 | $ | 9,609 | ||||||
| Income tax expense (benefit) | 3,575 | |||||||
Income (loss) from continuing operations before income taxes for the nine months ended September 30, 2025 | 13,184 | |||||||
| Change in income (loss) from increases (decreases) in the following items: | ||||||||
| Sales | 71,103 | |||||||
| Other income (expense), net | (1,278) | |||||||
| Total | 69,825 | |||||||
| Change in income (loss) from (increases) decreases in the following items: | ||||||||
| Cost of goods sold | (83,109) | |||||||
| Freight | 210 | |||||||
| Selling, general and administrative | 8,614 | |||||||
| Interest expense | 2,216 | |||||||
| Other | (549) | |||||||
| Total | (72,618) | |||||||
Income (loss) from continuing operations before income taxes for the nine months ended September 30, 2026 | 10,391 | |||||||
| Income tax expense (benefit) | 2,100 | |||||||
Net income (loss) from continuing operations for the nine months ended September 30, 2026 | $ | 8,291 | ||||||
Sales in the first nine months of 2026 increased by $71.1 million compared with the first nine months of 2025. Net sales (sales less freight) in Aluminum Extrusions increased $76.4 million, primarily due to the pass-through of higher metal costs, partially offset by lower volume. Net sales in High Performance Films decreased $5.1 million, primarily due to lower volume and unfavorable mix in surface protection films. For more information on net sales and volume, see the Segment Operations Review below.
Consolidated gross profit (sales minus cost of goods sold and freight) as a percentage of sales (gross profit margin) was 11.0% in the first nine months of 2026 compared to 14.7% in the first nine months of 2025. The gross profit margin in Aluminum Extrusions decreased primarily due to higher labor rates, unfavorable labor productivity, and higher maintenance and supply expense, die expense, and freight, partially offset by favorable mix and favorable manufacturing costs primarily associated with casting capabilities due to scrap spreads and higher scrap utilization. The gross profit margin in High Performance Films decreased due to a lower Surface Protection contribution margin associated with lower volume, unfavorable pricing and mix, and the pass-through lag associated with higher resin costs, partially offset by favorable productivity and cost improvements.
As a percentage of sales, SG&A and R&D expenses were 8.8% in the first nine months of 2026 compared with 11.5% in the first nine months of 2025. Sales increased 13.2% while SG&A decreased 14.0% compared to the prior period. Lower SG&A spending was primarily due to lower professional fees associated with business development activities ($5.9 million), lower stock-based compensation ($1.8 million) and lower employee compensation ($0.7 million).
Interest expense was $1.4 million in the first nine months of 2026 in comparison to $3.6 million in the first nine months of 2025. The decrease was primarily due to the write-off of deferred financing fees related to the amendment to our credit agreement (“ABL Facility”) of $0.8 million during the first nine months of 2025, lower weighted average total debt outstanding and lower interest rates during the first nine months of 2026.
25
The effective tax rate from continuing operations in the first nine months of 2026 was 20.2% compared to 27.1% in the first nine months of 2025. The effective tax rate for the first nine months of 2026 varied from the statutory rate of 21% due to research and development tax credits while the effective tax rate for the first nine months of 2025 varied from the statutory rate due to higher nondeductible discrete items as a percentage of pre-tax income.
Average total debt outstanding and interest rates were as follows:
| Nine Months Ended September 30, | |||||||||||
| (In millions, except percentages) | 2026 | 2025 | |||||||||
| Floating-rate debt with interest charged on a rollover basis plus a credit spread: | |||||||||||
| Average total outstanding debt balance | $ | 42.9 | $ | 60.0 | |||||||
| Average interest rate | 5.7 | % | 6.8 | % | |||||||
Segment 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 | 9.1% | $ | 520,856 | $ | 444,470 | 17.2% | ||||||||||||||||||||||||||||
| 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) | 0.6% | ||||||||||||||||||||||||||||||||
EBIT from ongoing operations3 | $ | (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). 3. See the reconciliation below of this non-GAAP measure to the most comparable measure calculated in accordance with GAAP. *Not meaningful (“NM”) | ||||||||||||||||||||||||||||||||||||||
The following table presents the sales volume by end use market for the three and nine months ended September 30, 2026 and 2025, and the three months ended June 30, 2026.
| Three Months Ended | Favorable/ | Three Months Ended | Favorable/ | Nine Months Ended | Favorable/ | |||||||||||||||||||||||||||||||||||||||||||||
| (In millions of lbs) | September 30, | (Unfavorable) | June 30, | (Unfavorable) | September 30, | (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | % Change | 2026 | 2025 | % Change | |||||||||||||||||||||||||||||||||||||||||||
| Sales volume by end-use market: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-residential B&C | 19.2 | 22.3 | (13.9) | % | 18.9 | 1.6 | % | 56.2 | 64.1 | (12.3) | % | |||||||||||||||||||||||||||||||||||||||
| Residential B&C | 2.3 | 2.3 | — | % | 2.6 | (11.5) | % | 7.1 | 6.5 | 9.2 | % | |||||||||||||||||||||||||||||||||||||||
| Automotive | 2.4 | 2.9 | (17.2) | % | 2.7 | (11.1) | % | 7.6 | 9.2 | (17.4) | % | |||||||||||||||||||||||||||||||||||||||
| Specialty products | 12.6 | 13.8 | (8.7) | % | 14.1 | (10.6) | % | 39.1 | 40.1 | (2.5) | % | |||||||||||||||||||||||||||||||||||||||
| Total | 36.5 | 41.3 | (11.6) | % | 38.3 | (4.7) | % | 110.0 | 119.9 | (8.3) | % | |||||||||||||||||||||||||||||||||||||||
26
Third Quarter 2026 Results vs. Third Quarter 2025 Results
Net sales in the third quarter of 2026 increased 9.1% versus the third quarter of 2025 primarily due to the pass-through of higher metal costs, partially offset by lower volume. Sales volume in the third quarter of 2026 decreased 11.6% versus the third quarter of 2025 and decreased 4.7% versus the second quarter of 2026. The Architecture Billings Index (ABI), a key leading indicator for nonresidential building and construction volume, has demonstrated a decline in billings (i.e., an index below 50) during 2026, including a recent sharp decrease in September of 2026. Nonresidential building and construction volume, which represented approximately 51% of total volume, decreased 14% driven by higher pricing, including significantly higher metal costs, and ongoing economic uncertainty. Within the specialty market, consumer durables volume decreased 22% due to cautionary consumer spending on discretionary purchases. Automotive and transportation volume declined 17%, reflecting continued economic uncertainty, higher input costs and trade related pressures affecting manufacturers, compared to the prior-year period, which benefited from customer orders placed in advance of higher tariffs. Partially offsetting the declines, within the specialty market, TSLOTSTM shipments increased 48%, supported by growing demand for modular aluminum framing systems.
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 $14.3 million versus the third quarter of 2025, primarily due to:
•A $13.1 million decrease in contribution margin (net sales less variable costs) associated with:
◦Lower volume ($4.4 million), higher labor rates ($2.1 million), unfavorable labor productivity primarily due to a more labor intensive production mix ($0.4 million), higher maintenance associated with down equipment ($1.6 million) and higher freight expense ($0.4 million), partially offset by favorable pricing and mix ($2.4 million) and favorable manufacturing costs primarily associated with casting capabilities due to scrap spreads, reflecting a wider cost differential between primary aluminum and recycled scrap input, and higher scrap utilization ($0.8 million favorable in the third quarter of 2026 versus $0.5 million favorable in the third quarter of 2025).
◦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 in the third quarter of 2026 versus a benefit of $4.3 million in the third quarter of 2025.
•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 17.2% versus the first nine months of 2025 primarily due to the pass-through of higher metal costs, partially offset by lower sales volume. Sales volume in the first nine months of 2026 decreased 8.3% versus the first nine months of 2025.
EBITDA from ongoing operations in the first nine months of 2026 decreased $6.5 million in comparison to the first nine months of 2025 primarily due to:
•A $5.8 million decrease in contribution margin associated with:
◦Lower volume ($8.4 million), higher labor rates ($5.8 million), unfavorable labor productivity primarily due to a more labor intensive production mix ($1.0 million), higher maintenance and supply expense, primarily associated with downed equipment and tariff impacts ($2.8 million), higher die expense, including tariff impact ($1.4 million) and higher freight ($1.6 million), partially offset by favorable mix ($7.9 million) and favorable manufacturing costs primarily associated with casting capabilities due to scrap spreads and higher scrap utilization ($7.8 million favorable in the first nine months of 2026 versus $0.3 million unfavorable in the first nine months of 2025).
◦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 in the first nine months of 2026 versus a benefit of $5.4 million in the first nine months of 2025.
•Higher fixed costs primarily associated with wage and benefits-related expense increases ($2.0 million).
27
•Higher SG&A expenses of $0.8 million primarily associated with higher incentive compensation, partially offset by lower routine environmental compliance expense.
•Lower other expense for lower employee-related medical costs associated with medical claims ($2.1 million).
Market conditions remain impacted by U.S. trade policy. Changes to the tariff structure announced in April 2026, which include measures intended to close the loophole that allowed undervalued aluminum extrusions to enter the U.S., appear to be contributing to a more balanced competitive environment.
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 U.S. inventory levels of aluminum. In response to ongoing geopolitical tensions in the Middle East and resulting contraction of the global aluminum market, we have proactively diversified Bonnell Aluminum’s supply chain portfolio to support long-term stability. Through the remainder of 2026, we have successfully secured nearly all of Bonnell Aluminum’s anticipated aluminum supply requirements and are proactively reviewing Bonnell Aluminum’s 2027 supply needs and sources to minimize exposure to the Middle East. Simultaneously, we are optimizing billet casting operations at our Carthage, TN and Newnan, GA facilities to overcome localized production constraints. These strategic shifts in our supply chain and internal capabilities are intended to strengthen our operational resilience, positioning Bonnell Aluminum to be a provider of innovative, custom-engineered aluminum solutions.
Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk in this Form 10-Q for additional information on aluminum price trends.
Projected Capital Expenditures and Depreciation & Amortization
Capital expenditures for Bonnell Aluminum are projected to be $17 million in 2026, including $4 million for productivity projects and $13 million for capital expenditures required to support continuity of operations. Depreciation expense is projected to be $15 million in 2026. Amortization expense is projected to be $2 million in 2026.
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 | 9.7% | 8,125 | 8,420 | 3.5% | ||||||||||||||||||||||||||||||||
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) | 12.4% | (3,472) | (3,705) | 6.3% | ||||||||||||||||||||||||||||||||
EBIT from ongoing operations3 | $ | 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). 3. See the reconciliation below of this non-GAAP measure to the most comparable measure calculated in accordance with GAAP. *Not meaningful (“NM”) | ||||||||||||||||||||||||||||||||||||||
28
Third Quarter 2026 Results vs. Third Quarter 2025 Results
Net sales in the third quarter of 2026 decreased 8.1% versus the third quarter of 2025 due to a decrease in sales volume and unfavorable mix, partially offset by favorable pricing for surface protection films. Surface Protection sales volume decreased 18.6% in the third quarter of 2026 versus the third quarter of 2025 primarily due to weakened consumer electronics display market demand and inventory corrections. Volume for advanced packaging films, which are predominantly manufactured and sold in the U.S. and used in consumer staple items, decreased 6.8% in the third quarter of 2026 versus the third quarter of 2025.
EBITDA from ongoing operations in the third quarter of 2026 decreased $2.6 million versus the third quarter of 2025, primarily due to:
•A decrease in contribution margin of $2.6 million resulting from:
◦A $3.3 million decrease from Surface Protection primarily due to unfavorable volume and mix ($3.4 million) and the pass-through lag associated with higher resin costs (a charge of $0.5 million in the third quarter of 2026 versus a charge of $0.1 million in the third quarter of 2025), partially offset by cost improvements ($0.7 million).
◦A $0.7 million increase from advanced packaging films primarily due to favorable mix ($0.3 million), cost improvements ($0.2 million) and the pass-through lag associated with higher resin costs (a benefit of $0.2 million in the third quarter of 2026 versus no charge or benefit in the third quarter of 2025).
•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 in the third quarter of 2026 and in the third quarter of 2025.
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 $5.0 million per quarter.
First Nine Months of 2026 Results vs. First Nine Months of 2025 Results
Net sales in the first nine months of 2026 decreased 6.7% compared to the first nine months of 2025 primarily due to lower volume and unfavorable mix, partially offset by favorable pricing in surface protection films. Surface Protection sales volume decreased 7.1% in the first nine months of 2026 versus the first nine months of 2025. Sales volume for surface protection films declined in the first nine months of 2026 versus the first nine months of 2025 as expected due to a significant customer’s inventory correction and scheduled maintenance activity for another customer in the first nine months of 2026. Volume for advanced packaging films decreased 6.9% in the first nine months of 2026 versus the first nine months of 2025 associated with lower margin product. The top four customers comprised 85% of the net sales for High Performance Films for the first nine months of 2026 and first nine months of 2025.
EBITDA from ongoing operations in the first nine months of 2026 decreased $6.0 million versus the first nine months of 2025, primarily due to:
•A decrease in contribution margin of $5.8 million resulting from:
◦A $6.0 million decrease from Surface Protection associated with lower volume and unfavorable pricing and mix ($7.1 million) and the pass-through lag associated with higher resin costs (a charge of $1.1 million in the first nine months of 2026 versus a charge of $0.2 million in the first nine months of 2025), partially offset by favorable productivity and cost improvements ($1.9 million).
◦A $0.3 million increase from advanced packaging films primarily due to higher volume and favorable mix ($1.1 million), partially offset by unfavorable pricing ($0.3 million), unfavorable productivity, net of cost improvements ($0.2 million) and the pass-through lag associated with higher resin costs (a charge of $0.5 million in the first nine months of 2026 versus a charge of $0.1 million in the first nine months of 2025).
•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 in the first nine months of 2026 versus a loss of $0.1 million in the first nine months of 2025.
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.
29
Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk in this Form 10-Q for additional information on resin prices.
Projected Capital Expenditures and Depreciation & Amortization
Capital expenditures for High Performance Films are projected to be $2 million in 2026, for productivity projects and capital expenditures required to support continuity of current operations. Depreciation expense is projected to be $4 million in 2026. There is no amortization expense for High Performance Films.
Corporate Expenses
Corporate expenses, net in the first nine months of 2026 decreased $6.8 million compared to the first nine months of 2025 due to lower professional fees associated with business development activities ($5.8 million), lower stock based compensation ($1.2 million) and lower employee-related incentive compensation ($1.6 million), partially offset by a gain in 2025 on the sale of corporate-owned land ($1.5 million). The Company does not expect significant expenses from business development activities in 2026.
Net capitalization and other credit measures are provided in Liquidity and Capital Resources below.
Reconciliation of Net Sales and EBITDA from Ongoing Operations by Segment
A reconciliation of segment financial information to consolidated results for the Company for the three and nine months ended September 30, 2026 and 2025.
| 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 | ||||||||||||||||||
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Liquidity and Capital Resources
The Company continues to focus on improving working capital management. Measures such as days sales outstanding (“DSO”), days inventory outstanding (“DIO”) and days payables outstanding (“DPO”) are used to evaluate changes in working capital. Changes in operating assets and liabilities from December 31, 2025 to September 30, 2026 are summarized below.
•Accounts and other receivables increased $15.0 million (18.4%).
◦Accounts and other receivables in Aluminum Extrusions increased $14.8 million primarily due to the pass-through of higher metal costs. DSO (represents trailing 12 months net sales divided by a rolling 12-month average of accounts and other receivables balances) was approximately 45.9 days for the 12 months ended September 30, 2026 and 44.8 days for the 12 months ended December 31, 2025.
◦Accounts and other receivables in High Performance Films increased $0.3 million primarily due to favorable pricing in surface protection films. DSO was approximately 26.5 days for the 12 months ended September 30, 2026 and 25.4 days for the 12 months ended December 31, 2025.
•Inventories increased $13.1 million (20.1%).
◦Inventories in Aluminum Extrusions increased $13.5 million primarily due to increased raw material levels from seasonally low levels at the end of last year, higher metal costs and raw material stocking as a result of the geopolitical uncertainty impacting aluminum-related supply chains. DIO (represents trailing 12 months costs of goods sold calculated on a FIFO basis divided by a rolling 12-month average of inventory balances calculated on the FIFO basis) was approximately 52.4 days for the 12 months ended September 30, 2026 and 48.8 days for the 12 months ended December 31, 2025.
◦Inventories in High Performance Films decreased $0.4 million primarily due to lower raw material levels. DIO was approximately 56.8 days for the 12 months ended September 30, 2026 and 54.6 days for the 12 months ended December 31, 2025.
•Net property, plant and equipment decreased $0.5 million primarily due to depreciation expense of $14.7 million and production equipment asset disposals of $0.5 million, partially offset by capital expenditures of $14.6 million and favorable foreign exchange of $0.2 million.
•Identifiable intangible assets, net decreased $1.3 million (23.7%) due to amortization expense.
•Accounts payable increased $10.0 million (13.2%).
◦Accounts payable in Aluminum Extrusions increased $10.6 million primarily due to increased raw material levels from seasonally low levels at the end of last year, higher metal costs and raw material levels. DPO (represents trailing 12 months costs of goods sold calculated on a FIFO basis divided by a rolling 12-month average of accounts payable balances) was approximately 46.5 days for the 12 months ended September 30, 2026 and 46.6 days for the 12 months ended December 31, 2025.
◦Accounts payable in High Performance Films remained consistent with the prior year period. DPO was approximately 38.7 days for the 12 months ended September 30, 2026 and 40.6 days for the 12 months ended December 31, 2025. The decrease in DPO was primarily related to unfavorable terms with respect to large resin suppliers.
Net cash provided by operating activities was $8.2 million in the first nine months of 2026 compared to net cash provided by operating activities of $17.3 million in the first nine months of 2025. The change primarily reflects increased working capital needs and lower segment EBITDA from ongoing operations in the first nine months of 2026 compared to the first nine months of 2025.
Net cash used in investing activities was $13.3 million in the first nine months of 2026 compared to net cash provided by investing activities of $2.5 million in the first nine months of 2025. The change is primarily due to decreased post-closing settlement proceeds associated with the sale of Terphane ($9.3 million) and proceeds in 2025 on the sale of corporate-owned land ($1.9 million), partially offset by higher capital expenditures ($4.6 million).
Net cash provided by financing activities of $13.9 million in the first nine months of 2026 compared to net cash used in financing activities of $13.7 million in the first nine months of 2025. The change is primarily due to higher debt borrowings, net of principal payments ($26.4 million) under the ABL Facility in the first nine months of 2026, partially offset by deferred financing fees paid associated with Amendment No. 5 to the ABL Facility during the first nine months of 2025.
At September 30, 2026, the Company had cash and cash equivalents of $16.3 million, including cash and cash equivalents held in locations outside the U.S. of $3.5 million.
31
Debt and Credit Agreements
ABL Facility
The ABL Facility provides the Company with a $125 million senior secured asset-based revolving credit facility. The ABL Facility is secured by substantially all assets of the Company and its domestic subsidiaries, including equity in certain material first-tier foreign subsidiaries. Availability for borrowings under the ABL Facility is governed by a borrowing base, determined by the application of specified advance rates against eligible assets, including a portion of trade accounts receivable, inventory, cash and cash equivalents, and owned machinery and equipment. The maturity date of the ABL Facility is May 6, 2030. As of September 30, 2026, funds available to borrow under the ABL Facility were $74 million, or 59% of the aggregate commitment of $125 million. During 2025, the Company's letters of credit were reduced from approximately $12 million to $3 million, which directly increased the Company's borrowing availability.
Outstanding borrowings accrue interest at the rates elected by the Company depending on the type of loan and denomination of such borrowing. With respect to revolving loans denominated in U.S. Dollars, the Company may elect interest rates at:
•Alternate Base Rate (“ABR”) plus the applicable ABR Spread (as defined in the ABL Facility) determined in accordance with an excess availability-based pricing grid. ABR is defined, in part, as the greater of (a) the Prime Rate in effect on such day, (b) the Federal Reserve Bank of New York Rate in effect on such day plus one-half of 1% and (c) the Adjusted Term SOFR Rate (defined below) for a one-month period plus 1%, or
•The Adjusted Term Secured Overnight Financing Rate ("SOFR") Rate plus the applicable Term Benchmark Spread (as defined in the ABL Facility) determined in accordance with an excess availability-based pricing grid. Adjusted Term SOFR Rate is defined as the Term SOFR Rate plus 0.10%, subject to an initial Floor (as defined in the ABL Facility) of 0%.
Based upon the quarterly average of daily availability under the ABL Facility, the interest rate pricing grid, is as follows:
| Pricing under the ABL Facility (Basis Points) | ||||||||
| Quarter Average of Daily Availability | Term Benchmark Spread | ABR Spread | ||||||
| > 66% of $125 million aggregate commitment | 175.0 | 75.0 | ||||||
| ≤ 66% but > 33% of $125 million aggregate commitment | 200.0 | 100.0 | ||||||
| ≤ 33% of $125 million aggregate commitment | 225.0 | 125.0 | ||||||
The commitment fee is (i) 0.25% if the Average Usage (as defined in the ABL Facility) is greater than or equal to 50% and (ii) 0.375% if Average Usage is less than 50%.
The financial covenant is a minimum fixed charge coverage ratio (as defined in the ABL Facility) of 1.00:1.00 that will be triggered in the event that availability is less than the greater of (x) 10% of the Line Cap (as defined in the ABL Facility) and (y) $10 million and will continue until availability is equal to or greater than the greater of (x) 10% of the Line Cap and (y) $10 million for 30 consecutive days, as long as no events of default are continuing.
If at any time the availability under the ABL Facility is less than the greater of (x) 20% of the Line Cap and (y) $20 million and until such subsequent date, if any, on which availability is greater than the greater of (x) 20% of the Line Cap and (y) $20 million for a period of thirty (30) consecutive calendar days, the Company’s current monthly reporting requirement to lenders changes to a weekly cadence.
A Cash Dominion Period (as defined in the ABL Facility) is triggered when (x) availability falls below the greater of (i) 12.5% of the Line Cap and (ii) $12.6 million or (y) during the continuation of an event of default and continuing until (x) availability is above the greater of (i) 12.5% of the Line Cap and (ii) $12.6 million for 30 consecutive days and (y) no events of default are continuing. During a Cash Dominion Period, receipts that have not yet been applied to the ABL Facility are classified as restricted cash in the Company’s consolidated balance sheets.
The ABL Facility has customary representations and warranties including, as a condition to each borrowing, that all such representations and warranties are true and correct in all material respects (including a representation that no Material Adverse Effect (as defined in the ABL Facility) has occurred since December 31, 2024). In the event that the Company cannot certify that all conditions to the borrowing have been met, the lenders can restrict the Company’s future borrowings under the ABL Facility.
In accordance with the ABL Facility, the lenders have been provided with the Company’s financial statements, covenant compliance certificates and projections to facilitate their ongoing assessment of the Company. Accordingly, the Company
32
believes the likelihood that lenders would exercise the subjective acceleration clause whereby prohibiting future borrowings is remote.
The computation of Credit EBITDA and fixed charge coverage ratio, as defined in the ABL Facility, is presented below.
Computations of Credit EBITDA (as defined in the ABL Facility) as of and for the Twelve Months Ended September 30, 2026 * | |||||
Computations of Credit EBITDA for the twelve months ended September 30, 2026 (in thousands): | |||||
| Net income (loss) | $ | 23,427 | |||
| Plus: | |||||
| After-tax losses related to discontinued operations | — | ||||
| Total income tax expense for continuing operations | 5,109 | ||||
| Interest expense | 1,787 | ||||
| Depreciation and amortization expense for continuing operations | 21,419 | ||||
All non-cash losses and expenses, plus cash losses and expenses not to exceed $10,000, for continuing operations that are classified as unusual, extraordinary or which are related to plant shutdowns, asset impairments and/or restructurings (cash-related of $2,817) | 3,747 | ||||
| Charges related to stock option grants and awards accounted for under the fair value-based method | — | ||||
| Losses related to the application of the equity method of accounting | — | ||||
| Losses related to adjustments in the estimated fair value of assets accounted for under the fair value method of accounting | — | ||||
| Fees, costs and expenses incurred in connection with the amendment process (Amendment No. 3) | 260 | ||||
| Fees, costs and expenses incurred in connection with the amendment process (Amendment No. 5) | — | ||||
| Minus: | |||||
| After-tax income related to discontinued operations | (660) | ||||
| Total income tax benefits for continuing operations | — | ||||
| Interest income | (72) | ||||
| All non-cash gains and income, plus cash gains and income in excess of $10,000, for continuing operations that are classified as unusual, extraordinary or which are related to plant shutdowns, asset impairments and/or restructurings | (6,265) | ||||
| Income related to changes in estimates for stock option grants and awards accounted for under the fair value-based method | — | ||||
| Income related to the application of the equity method of accounting | — | ||||
| Income related to adjustments in the estimated fair value of assets accounted for under the fair value method of accounting | — | ||||
| Plus or minus, as applicable, pro forma EBITDA adjustments associated with acquisitions and asset dispositions | — | ||||
| Credit EBITDA | $ | 48,752 | |||
| Fixed charge coverage ratio**: | |||||
| Credit EBITDA | $ | 48,752 | |||
| Unfinanced capital expenditures | $ | 21,887 | |||
| Fixed charges | $ | 4,039 | |||
| Fixed charge coverage ratio | 6.65 | ||||
*Credit EBITDA is not intended to represent net income (loss) or cash flow from operations as defined by GAAP and should not be considered as an alternative to either net income (loss) or to cash flow. ** Fixed Charge Coverage Ratio is computed as the ratio of (a) Credit EBITDA minus Unfinanced Capital Expenditures to (b) Fixed Charges. | |||||
High Performance Films Guangzhou Loan
In October 2025, High Performance Films' business location in Guangzhou, China, Guangzhou Tredegar Film Products Co., Ltd. (“Guangzhou Tredegar”), entered into a 3.5 million Chinese Yuan, which is equivalent to $0.5 million as of December 31, 2025, unsecured revolving loan with the Industrial and Commercial Bank of China. During the second quarter of 2026, Guangzhou Tredegar fully repaid all outstanding borrowings under the unsecured revolving loan. As of September 30, 2026, there were no borrowings outstanding under the unsecured revolving loan, which matured on October 20, 2026.
For more information on the ABL Facility and the High Performance Films Guangzhou Loan, see Note 7 in the Company's 2025 Form 10-K.
33
As of September 30, 2026, the Company was in compliance with all debt covenants.
The Company believes that existing borrowing availability, current cash balances and cash flow from operations will be sufficient to satisfy short term material cash requirements related to working capital, capital expenditures, and debt repayments for at least the next 12 months. In the longer term, liquidity will depend on many factors, including the results of operations, the timing and extent of capital expenditures, changes in operating plans, or other events that would cause the Company to seek additional financing in future periods.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Tredegar has exposure to the volatility of interest rates, polyethylene and polypropylene resin prices, aluminum ingot and scrap prices, energy prices, foreign currencies and emerging markets. See Liquidity and Capital Resources above regarding interest rate exposures related to borrowings under the ABL Facility.
Profit margins in Aluminum Extrusions are sensitive to fluctuations in aluminum ingot and scrap prices as well as natural gas prices (natural gas is the principal energy source used to operate its casting furnaces). Changes in polyethylene resin prices and the timing of those changes could have a significant impact on profit margins in High Performance Films. There is no assurance of the Company’s ability to pass through higher raw material and energy costs to its customers.
The purchase price of raw materials fluctuates on a monthly basis; therefore, Aluminum Extrusions pricing policies generally allow the Company to pass the underlying index cost of aluminum and certain alloys through to the vast majority of our customers so that we remain substantially neutral to metal pricing. In the normal course of business, Aluminum Extrusions enters into fixed-price forward sales contracts with certain customers for the sale of fixed quantities of aluminum extrusions at scheduled intervals. In order to hedge its exposure to aluminum price volatility (see the chart below) under these fixed-price arrangements, which generally have a duration of not more than 12 months, the Company enters into a combination of forward purchase commitments and futures contracts to acquire or hedge aluminum, based on the scheduled deliveries. See Note 7 in this Form 10-Q for additional information.
34
The volatility of quarterly average aluminum prices is shown in the chart below.
| Source: Quarterly averages computed by the Company using daily Midwest average prices provided by Platts. | ||
The volatility of quarterly average natural gas prices is shown in the chart below.
| Source: Quarterly averages computed by Tredegar using monthly NYMEX settlement prices. | ||
35
The volatility of average quarterly prices of polyethylene resin in the U.S. (a primary raw material for High Performance Films) is shown in the chart below.
Source: Quarterly averages computed by Tredegar using monthly data provided by Chemical Market Analytics (CMA). In January 2023, the reporting service implemented a non-market adjustment of $0.41 per pound based on its estimate of discounts in the prior period. In January 2026, an additional non-market adjustment of $0.30 per pound was implemented based on estimated discounts in the prior period. These adjustments reflect changes in pricing methodology rather than underlying market movements and affect comparability between reporting periods. Had the January 2026 adjustment been reflected in fourth quarter 2025, the reported average fourth quarter 2025 price would have been approximately $0.54 per pound. | ||
The price of plastic resin is driven by several factors, including supply and demand and the price of oil, ethylene and natural gas. Selling prices to customers are set considering numerous factors, including input costs, conversion costs and market forces. For a majority of its customers, High Performance Films has index-based pass-through pricing mechanisms for major raw material price fluctuations. However, the quarterly average change in resin prices is not passed through for a period of 90 days. Pricing on the remainder of the business is based upon manufacturing costs and supply/demand dynamics within the markets that the Company competes.
Tredegar attempts to match the pricing and cost of its products in the same currency and generally views the volatility of foreign currencies and the corresponding impact on earnings and cash flow as part of the overall risk of operating in a global environment (for additional information, see trends for the Chinese Yuan in the chart below). Exports from the U.S. are generally denominated in U.S. Dollars. The Company’s foreign currency exposure on income from foreign operations relates to the Chinese Yuan.
High Performance Films is generally able to match the currency of its sales and costs for its product lines. Tredegar estimates that the change in the value of foreign currencies relative to the U.S. Dollar for High Performance Films had an unfavorable impact to EBITDA from ongoing operations of $0.1 million and $0.7 million for the third quarter of 2026 and the first nine months of 2026 compared to the same periods of 2025, respectively.
36
Trends for the Chinese Yuan exchange rates relative to the U.S. Dollar are shown in the chart below.
| Source: Quarterly averages computed by Tredegar using daily closing data provided by Bloomberg. | ||
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
In connection with the preparation of this Form 10-Q, pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company carried out an evaluation with the participation of its management, including its Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2026.
Based on this evaluation of our disclosure controls and procedures as of September 30, 2026, the Company's Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective.
Changes in Internal Control Over Financial Reporting
There has been no change in the Company’s internal control over financial reporting during the quarter ended September 30, 2026, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act).
PART II - OTHER INFORMATION
Item 1A. Risk Factors.
As disclosed in “Item 1A. Risk Factors” in the 2025 Form 10-K, there are a number of risks and uncertainties that can have a material effect on the operating results of our businesses and our financial condition. There are no material updates or changes to our risk factors previously disclosed in the 2025 Form 10-K.
Item 5. Other Information.
Director and Officer Trading Arrangements
During the three months ended September 30, 2026, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement,"
37
Item 6. Exhibits.
| 31.1 | ||||||||
| 31.2 | ||||||||
| 32.1 | ||||||||
| 32.2 | ||||||||
| 101 | Inline XBRL Instance Document and Related Items. | |||||||
| 104 | Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101). | |||||||
| * | Denotes compensatory plans or arrangements or management contracts. | |||||||
38
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Tredegar Corporation | ||||||||||||||
| (Registrant) | ||||||||||||||
| Date: | November 6, 2026 | /s/ Arijit (Bapi) DasGupta | ||||||||||||
| Arijit (Bapi) DasGupta | ||||||||||||||
| President and Chief Executive Officer | ||||||||||||||
| (Principal Executive Officer) | ||||||||||||||
| Date: | November 6, 2026 | /s/ Cindy Yao | ||||||||||||
| Cindy Yao | ||||||||||||||
| Vice President, Chief Financial Officer and Treasurer | ||||||||||||||
| (Principal Financial Officer) | ||||||||||||||
| Date: | November 6, 2026 | /s/ Paul Goldschmiedt | ||||||||||||
| Paul Goldschmiedt | ||||||||||||||
| Corporate Controller | ||||||||||||||
| (Principal Accounting Officer) | ||||||||||||||
EXHIBIT 31.1
Section 302 Certification
I, Arijit (Bapi) DasGupta, certify that:
(1)I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, of Tredegar Corporation;
(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4)The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
(5)The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 6, 2026
| /s/ Arijit (Bapi) DasGupta | |||||||||||
| Arijit (Bapi) DasGupta | |||||||||||
| President and Chief Executive Officer | |||||||||||
| (Principal Executive Officer) | |||||||||||
EXHIBIT 31.2
Section 302 Certification
I, Cindy Yao, certify that:
(1)I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, of Tredegar Corporation;
(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4)The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
(5)The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 6, 2026
| /s/ Cindy Yao | |||||||||||
| Cindy Yao | |||||||||||
| Vice President, Chief Financial Officer and Treasurer | |||||||||||
| (Principal Financial Officer) | |||||||||||
EXHIBIT 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Tredegar Corporation (the “Company”) for the quarter ended September 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Arijit (Bapi) DasGupta, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| /s/ Arijit (Bapi) DasGupta | ||||||||
| Arijit (Bapi) DasGupta | ||||||||
| President and Chief Executive Officer | ||||||||
| (Principal Executive Officer) | ||||||||
| November 6, 2026 | ||||||||
EXHIBIT 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Tredegar Corporation (the “Company”) for the quarter ended September 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Cindy Yao, Vice President, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| /s/ Cindy Yao | ||||||||
| Cindy Yao | ||||||||
| Vice President, Chief Financial Officer and Treasurer | ||||||||
| (Principal Financial Officer) | ||||||||
| November 6, 2026 | ||||||||