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TG's Q3 Earnings Surge Y/Y on Strong Aluminum Demand, Stock Up 33%
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Shares of Tredegar Corporation (TG - Free Report) have gained 33.2% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 2% growth over the same time frame. Over the past month, the stock has gained 9.4% compared with the S&P 500’s 3.6% growth.
Tredegar reported an adjusted net income from ongoing operations of 26 cents per share, sharply higher than 1 cent per share in the prior-year period.
Consolidated revenues rose 33.5% to $194.9 million, up from $146.1 million in the same quarter last year. This improvement was driven primarily by the Aluminum Extrusions segment, which posted a 40.4% increase in net sales to $162.5 million. Meanwhile, PE Films contributed $25.9 million in revenue, up 4% from the third quarter of 2024.
Net income from continuing operations came in at $7.1 million against a net loss of $3.4 million in the third quarter of 2024. On a non-GAAP basis, net income from ongoing operations was $9.2 million, up from $0.2 million in the prior-year period.
Tredegar Corporation Price, Consensus and EPS Surprise
Earnings before interest, taxes, depreciation, and amortization (EBITDA) from ongoing operations for the segment reached $16.8 million, a sharp rise from $6.2 million in the third quarter of 2024. This 172.1% increase was driven by 19.5% growth in sales volume to 41.3 million pounds and favorable pricing dynamics. Higher volumes of non-residential building and construction products, especially curtainwall and storefront components, along with increased specialty product shipments such as solar panel materials and distribution goods, helped boost performance.
An inventory flow-through timing benefit due to aluminum price trends also contributed $4.3 million to earnings, reversing a $1 million charge in the year-ago quarter. However, net new orders declined 5% year over year, primarily due to the increase in Section 232 tariffs on aluminum extrusions to 50%, which reduced customer demand and created uncertainty.
PE Films
In the PE Films segment, EBITDA from ongoing operations increased 22.9% to $7.2 million, up from $5.9 million in the third quarter of 2024. Net sales for the segment rose 4% year over year to $25.9 million. This growth was attributed to higher volume in surface protection films, which rose 10.9% year over year and 16.1% sequentially. The improvement in contribution margin within the segment was supported by both volume growth and cost savings.
However, overwrap films saw a volume decline of 11%, negatively impacting segment performance. Despite the gains, management noted that surface protection volumes are expected to moderate later in the year.
Management Commentary
CEO John Steitz described the quarter as a "good" one across both business units. He noted that the resolution of earlier manufacturing inefficiencies at Bonnell helped boost performance, even as net new orders remained at "depressed levels" following the increase in tariffs.
Steitz highlighted that shipments have outpaced new orders, resulting in lower open orders. However, he pointed to encouraging order activity in October, with weekly averages reaching 3 million pounds, suggesting a potential stabilization.
For PE Films, Steitz commended the segment’s “strong cash generation,” which contributed to a notable reduction in net debt, from $54.8 million at the start of the year to $36.2 million at the end of the third quarter.
Factors Influencing Quarterly Performance
The sharp increase in earnings for the Aluminum Extrusions segment was driven by a $12.7 million boost in contribution margin, helped by higher sales volumes, improved pricing, and better manufacturing yields. These were partly offset by cost pressures from higher labor rates, maintenance, utilities, and onboarding new employees. A favorable FIFO inventory accounting effect, reflecting rising aluminum prices, added to earnings momentum. The average U.S. Midwest transaction price for aluminum was $1.90 per pound in the third quarter of 2025, up from $1.27 in the same quarter last year.
The PE Films segment’s improvement was less dramatic but still meaningful. A $1.8 million margin increase from surface protection films was the key driver, helped by higher volume and productivity gains. Overwrap films, however, detracted from results due to lower demand and inefficiencies.
Guidance
Management indicated that cost-reduction initiatives are being evaluated and expected to begin bearing fruit in 2026. Capital expenditures for 2025 are projected at $17 million for Bonnell Aluminum and $2 million for PE Films, focused on both productivity enhancements and maintenance.
Other Developments
Tredegar did record a $9.8 million cash inflow in the first quarter related to the post-closing settlement of the previously completed sale of its Terphane business. This transaction contributed to the company’s debt reduction in 2025. Additionally, Tredegar completed the sale of corporate-owned land during the third quarter, resulting in a $1.5 million gain.
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TG's Q3 Earnings Surge Y/Y on Strong Aluminum Demand, Stock Up 33%
Shares of Tredegar Corporation (TG - Free Report) have gained 33.2% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 index’s 2% growth over the same time frame. Over the past month, the stock has gained 9.4% compared with the S&P 500’s 3.6% growth.
Tredegar reported an adjusted net income from ongoing operations of 26 cents per share, sharply higher than 1 cent per share in the prior-year period.
Consolidated revenues rose 33.5% to $194.9 million, up from $146.1 million in the same quarter last year. This improvement was driven primarily by the Aluminum Extrusions segment, which posted a 40.4% increase in net sales to $162.5 million. Meanwhile, PE Films contributed $25.9 million in revenue, up 4% from the third quarter of 2024.
Net income from continuing operations came in at $7.1 million against a net loss of $3.4 million in the third quarter of 2024. On a non-GAAP basis, net income from ongoing operations was $9.2 million, up from $0.2 million in the prior-year period.
Tredegar Corporation Price, Consensus and EPS Surprise
Tredegar Corporation price-consensus-eps-surprise-chart | Tredegar Corporation Quote
Operational Highlights
Aluminum Extrusions (Bonnell Aluminum)
Earnings before interest, taxes, depreciation, and amortization (EBITDA) from ongoing operations for the segment reached $16.8 million, a sharp rise from $6.2 million in the third quarter of 2024. This 172.1% increase was driven by 19.5% growth in sales volume to 41.3 million pounds and favorable pricing dynamics. Higher volumes of non-residential building and construction products, especially curtainwall and storefront components, along with increased specialty product shipments such as solar panel materials and distribution goods, helped boost performance.
An inventory flow-through timing benefit due to aluminum price trends also contributed $4.3 million to earnings, reversing a $1 million charge in the year-ago quarter. However, net new orders declined 5% year over year, primarily due to the increase in Section 232 tariffs on aluminum extrusions to 50%, which reduced customer demand and created uncertainty.
PE Films
In the PE Films segment, EBITDA from ongoing operations increased 22.9% to $7.2 million, up from $5.9 million in the third quarter of 2024. Net sales for the segment rose 4% year over year to $25.9 million. This growth was attributed to higher volume in surface protection films, which rose 10.9% year over year and 16.1% sequentially. The improvement in contribution margin within the segment was supported by both volume growth and cost savings.
However, overwrap films saw a volume decline of 11%, negatively impacting segment performance. Despite the gains, management noted that surface protection volumes are expected to moderate later in the year.
Management Commentary
CEO John Steitz described the quarter as a "good" one across both business units. He noted that the resolution of earlier manufacturing inefficiencies at Bonnell helped boost performance, even as net new orders remained at "depressed levels" following the increase in tariffs.
Steitz highlighted that shipments have outpaced new orders, resulting in lower open orders. However, he pointed to encouraging order activity in October, with weekly averages reaching 3 million pounds, suggesting a potential stabilization.
For PE Films, Steitz commended the segment’s “strong cash generation,” which contributed to a notable reduction in net debt, from $54.8 million at the start of the year to $36.2 million at the end of the third quarter.
Factors Influencing Quarterly Performance
The sharp increase in earnings for the Aluminum Extrusions segment was driven by a $12.7 million boost in contribution margin, helped by higher sales volumes, improved pricing, and better manufacturing yields. These were partly offset by cost pressures from higher labor rates, maintenance, utilities, and onboarding new employees. A favorable FIFO inventory accounting effect, reflecting rising aluminum prices, added to earnings momentum. The average U.S. Midwest transaction price for aluminum was $1.90 per pound in the third quarter of 2025, up from $1.27 in the same quarter last year.
The PE Films segment’s improvement was less dramatic but still meaningful. A $1.8 million margin increase from surface protection films was the key driver, helped by higher volume and productivity gains. Overwrap films, however, detracted from results due to lower demand and inefficiencies.
Guidance
Management indicated that cost-reduction initiatives are being evaluated and expected to begin bearing fruit in 2026. Capital expenditures for 2025 are projected at $17 million for Bonnell Aluminum and $2 million for PE Films, focused on both productivity enhancements and maintenance.
Other Developments
Tredegar did record a $9.8 million cash inflow in the first quarter related to the post-closing settlement of the previously completed sale of its Terphane business. This transaction contributed to the company’s debt reduction in 2025. Additionally, Tredegar completed the sale of corporate-owned land during the third quarter, resulting in a $1.5 million gain.