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BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS 9. BUSINESS SEGMENTS
The Company's business segments are Aluminum Extrusions and PE 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. PE Films produces surface protection films, polyethylene overwrap 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.
The following tables present segment revenue, segment profit (loss), and significant expenses for the three months ended September 30, 2025 and 2024:
Three Months Ended September 30, 2025
(In thousands)Aluminum ExtrusionsPE FilmsTotal
Net Sales$162,470 $25,883 $188,353 
Reconciliation of revenue:
Add back freight6,589 
Sales as shown in the consolidated statements of income (loss)$194,942 
Less:
Variable costs$124,462 $11,922 $136,384 
Manufacturing fixed costs1
11,906 3,785 15,691 
Selling, general and administrative costs1
8,948 2,961 11,909 
Other2
346 (6)340 
EBITDA from ongoing operations$16,808 $7,221 $24,029 
Reconciliation of profit (loss):
Depreciation and amortization5,414 
Plant shutdowns, asset impairments, restructurings and other915 
Interest income6 
Interest expense768 
Corporate expenses, net3
7,815 
Income (loss) from continuing operations before income tax9,123 
Income tax expense (benefit)2,014 
Net income (loss) from continuing operations7,109 
Income (loss) from discontinued operations, net of tax(35)
Net income (loss)$7,074 
1. Excludes related depreciation and amortization.
2. Includes segment allocated employee compensation benefit expenses.
3. Includes corporate depreciation and amortization.
Three Months Ended September 30, 2024
(In thousands)Aluminum ExtrusionsPE FilmsTotal
Net Sales$115,717 $24,879 $140,596 
Reconciliation of revenue:
Add back freight5,468 
Sales as shown in the consolidated statements of income (loss)$146,064 
Less:
Variable costs$90,397 $12,294 $102,691 
Manufacturing fixed costs1
10,218 3,496 13,714 
Selling, general and administrative costs1
8,549 3,173 11,722 
Other2
376 40 416 
EBITDA from ongoing operations$6,177 $5,876 $12,053 
Reconciliation of profit (loss):
Depreciation and amortization5,703 
Plant shutdowns, asset impairments, restructurings and other2,170 
Interest income5 
Interest expense1,192 
Gain on investment in kaleo, Inc.— 
Corporate expenses, net3
5,554 
Income (loss) from continuing operations before income tax(2,561)
Income tax expense (benefit)828 
Net income (loss) from continuing operations(3,389)
Income (loss) from discontinued operations, net of tax(557)
Net income (loss)$(3,946)
1. Excludes related depreciation and amortization.
2. Includes segment allocated employee compensation benefit expenses.
3. Includes corporate depreciation and amortization.
The following tables present segment revenue, segment profit (loss), and significant expenses for the nine months ended September 30, 2025 and 2024:
Nine Months Ended September 30, 2025
(In thousands)Aluminum ExtrusionsPE FilmsTotal
Net Sales$444,470 $76,017 $520,487 
Reconciliation of revenue:
Add back freight18,309 
Sales as shown in the consolidated statements of income (loss)$538,796 
Less:
Variable costs$344,043 $35,586 $379,629 
Manufacturing fixed costs1
34,879 10,487 45,366 
Selling, general and administrative costs1
28,489 8,420 36,909 
Other2
1,808 70 1,878 
EBITDA from ongoing operations$35,251 $21,454 $56,705 
Reconciliation of profit (loss):
Depreciation and amortization16,214 
Plant shutdowns, asset impairments, restructurings and other2,138 
Interest income16 
Interest expense3,566 
Corporate expenses, net3
21,619 
Income (loss) from continuing operations before income tax13,184 
Income tax expense (benefit)3,575 
Net income (loss) from continuing operations9,609 
Income (loss) from discontinued operations, net of tax9,297 
Net income (loss)$18,906 
1. Excludes related depreciation and amortization.
2. Includes segment allocated employee compensation benefit expenses.
3. Includes corporate depreciation and amortization.
Nine Months Ended September 30, 2024
(In thousands)Aluminum ExtrusionsPE FilmsTotal
Net Sales$349,353 $78,811 $428,164 
Reconciliation of revenue:
Add back freight15,812 
Sales as shown in the consolidated statements of income (loss)$443,976 
Less:
Variable costs$263,007 $37,522 $300,529 
Manufacturing fixed costs1
29,726 9,832 39,558 
Selling, general and administrative costs1
24,319 8,480 32,799 
Other2
677 64 741 
EBITDA from ongoing operations$31,624 $22,913 $54,537 
Reconciliation of profit (loss):
Depreciation and amortization17,336 
Plant shutdowns, asset impairments, restructurings and other5,570 
Interest income30 
Interest expense3,515 
Gain on investment in kaleo, Inc.144 
Corporate expenses, net3
16,730 
Income (loss) from continuing operations before income tax11,560 
Income tax expense (benefit)3,175 
Net income (loss) from continuing operations8,385 
Income (loss) from discontinued operations, net of tax(251)
Net income (loss)$8,134 
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, 2025 and December 31, 2024:
(In thousands)September 30, 2025December 31, 2024
Aluminum Extrusions$269,664 $247,205 
PE Films54,694 55,081 
Subtotal324,358 302,286 
General corporate41,157 46,883 
Cash and cash equivalents13,291 7,062 
Discontinued operations— 126 
Total$378,806 $356,357 
The following table presents depreciation and amortization for the three and nine months ended September 30, 2025 and 2024:
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2025202420252024
Aluminum Extrusions$4,190 $4,404 $12,509 $13,392 
PE Films1,224 1,299 3,705 3,944 
Subtotal5,414 5,703 16,214 17,336 
General corporate48 66 146 255 
Discontinued operations— 708 — 2,191 
Total$5,462 $6,477 $16,360 $19,782 
The following table presents capital expenditures for the three and nine months ended September 30, 2025 and 2024:
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2025202420252024
Aluminum Extrusions$3,079 $1,449 $7,835 $4,461 
PE Films529 517 1,411 1,127 
Subtotal3,608 1,966 9,246 5,588 
Discontinued operations— 948 — 2,108 
Total$3,608 $2,914 $9,246 $7,696 
The following tables disaggregate the Company’s revenue by geographic area and product group for the three and nine months ended September 30, 2025 and 2024:
Net Sales by Geographic Area (a)
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2025202420252024
United States$171,063 $124,800 $473,712 $381,637 
Exports from the United States to:
Asia11,482 11,728 32,654 34,387 
Latin America2,026 1,462 4,616 4,121 
Canada3,416 2,282 8,586 7,404 
Europe— 35 37 60 
Operations outside the United States:
Asia366 289 882 555 
Total$188,353 $140,596 $520,487 $428,164 
(a) Export sales relate mostly to PE Films.
The Company’s facilities in Pottsville, PA (“PV”) and Guangzhou, China (“GZ”) have a tolling arrangement whereby certain surface protection films are manufactured in GZ for a fee with raw materials supplied from PV that are then shipped by GZ directly to customers principally in the Asian market, but paid by customers directly to PV. Amounts associated with this intercompany tolling arrangement are reported in the table above as export sales from the U.S. to Asia, and include net sales of $6.7 million and $6.5 million in the third quarter of 2025 and 2024, respectively, and $19.7 million and $19.1 million in the first nine months of 2025 and 2024, respectively.
Net Sales by Product Group
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2025202420252024
Aluminum Extrusions:
Nonresidential building & construction$87,388 $63,362 $236,612 $200,978 
Consumer durables13,297 8,210 37,715 24,440 
Automotive10,832 10,583 32,899 30,487 
Residential building & construction11,516 9,368 30,539 26,440 
Electrical14,429 8,541 42,292 21,075 
Machinery & equipment17,662 12,564 48,943 36,434 
Distribution7,346 3,089 15,470 9,499 
Subtotal162,470 115,717 444,470 349,353 
PE Films:
Surface protection films19,163 17,516 54,675 56,241 
Overwrap packaging6,720 7,363 21,342 22,570 
Subtotal25,883 24,879 76,017 78,811 
Total $188,353 $140,596 $520,487 $428,164