TREDEGAR CORP
For the period ended Mar 31, 2026. Filed May 8, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 8, 2026
TG$5.39-23.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001628280-25-050429
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001628280-26-032556
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 140 previous paragraphs and 121 current paragraphs.
42 unchanged; 42 reworded; 36 added; 49 removed; 7 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
•the impact of trade policies and prolonged geopolitical conflicts on raw materials and supply chain constraints;
Current report
•inability to replace aging equipment and information technology systems with necessary capital expenditures;
Current report
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.
Current report
First Quarter Financial Results Highlights
Current report
•EBITDA from ongoing operations for High Performance Films was $5.1 million in the first quarter of 2026 versus $7.5 million in the first quarter of 2025 and versus $5.7 million in the fourth quarter of 2025.
Current report
The effective tax rate used to compute income taxes (benefit) from continuing operations in the first quarter of 2026 was 16.9% compared to 46.2% in the first quarter of 2025. The effective tax rate for the first three months of 2026 varies from the statutory rate of 21% due to research and development tax credits while the effective tax rate for the first three months of 2025 varies from the statutory rate due to a mix of lower pre-tax income and higher nondeductible discrete items as a percentage of pre-tax income.
Current report
The following table presents the sales volume by end use market for the three months ended March 31, 2026 and 2025, and the three months ended December 31, 2025.
Current report
First Quarter 2026 Results vs. First Quarter 2025 Results
Current report
Net sales in the first quarter of 2026 increased 19.3% versus the first quarter of 2025 primarily due to the pass-through of higher metal costs, partially offset by lower volume. Sales volume in the first quarter of 2026 decreased 7.3% versus the first quarter of 2025 and 5.4% versus the fourth quarter of 2025. The Company reported a 6% decline in nonresidential building and construction volume, driven by higher costs and ongoing economic uncertainty. Within the specialty market, electrical shipments decreased 45% following the expiration of federal tax credits for solar panels. Also in the specialty market, TSLOTSTM shipments, representing approximately 13% of total volume, increased 70%, supported by increased demand for data‑containment and data‑center infrastructure. Automotive and transportation volume declined 19% as manufacturers continued to face rising cost pressures.
Current report
Net new orders in the first quarter of 2026 decreased 20% versus the first quarter of 2025 from an average of 3.4 million pounds per week in the first quarter of 2025 to 2.8 million pounds per week in the first quarter of 2026. The Company believes this year-over-year decline reflects both softer U.S. demand and the continued undervaluation of imported extrusions, attributed to the tariff structure associated with the increase of Section 232 tariffs on aluminum products to 50%, discussed below. Open orders at the end of the first quarter of 2026 were 19 million pounds versus 25 million pounds at the end of the first quarter of 2025 and 17 million pounds at the end of the fourth quarter of 2025. This level of open orders falls below the normalized level that is typically associated with stable demand patterns and healthy market dynamics.
Current report
Effective June 4, 2025, Section 232 tariffs on aluminum products increased to 50%, following a prior increase from 10% to 25% in March 2025, with the United Kingdom as the only exception. In April 2026, federal policymakers updated several elements of Section 232, including measures intended to close the loophole that allowed undervalued aluminum extrusions to enter the U.S. market. While these changes are expected to help restore fair competition for domestic producers, U.S. extruders have emphasized the need for clear, uniform, and predictable enforcement to avoid near‑term market disruption. The Company continues to participate in a coalition of downstream aluminum manufacturers that engages with policymakers on issues affecting the competitiveness of the U.S. aluminum extrusion industry.
Current report
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.
Current report
EBITDA from ongoing operations in the first quarter of 2026 increased $2.5 million versus the first quarter of 2025, primarily due to:
Current report
•Higher fixed costs primarily associated with wage increases ($0.5 million).
Current report
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. In response to recent geopolitical tensions in the Middle East and resulting contraction of the global aluminum market, we have proactively diversified our supply chain portfolio to support long-term stability. Through the third quarter of 2026, we have successfully transitioned nearly all of our aluminum supply previously sourced from the Middle East to North American partners. 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 continue to strengthen our operational resilience, positioning the Company to meet customer demand through 2026.
Current report
High Performance Films
Current report
First Quarter 2026 Results vs. First Quarter 2025 Results
Current report
EBITDA from ongoing operations in the first quarter of 2026 decreased $2.4 million versus the first quarter of 2025, primarily due to:
Current report
◦A $2.8 million decrease from Surface Protection associated with lower volume and unfavorable mix ($3.4 million), partially offset by cost improvements and favorable productivity ($0.6 million).
Current report
•Lower SG&A expense associated with lower employee-related compensation ($0.3 million).
Current report
•A foreign currency transaction loss of $0.3 million in the first quarter of 2026 versus no gain or loss in the first quarter of 2025.
Current report
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.
Current report
•Accounts and other receivables increased $11.9 million (14.5%).
Current report
◦Accounts and other receivables in High Performance Films increased $1.1 million primarily due to higher sales volume in advanced packaging films. DSO was approximately 25.9 days for the 12 months ended March 31, 2026 and 25.4 days for the 12 months ended December 31, 2025.
Current report
•Inventories increased $19.1 million (29.4%).
Current report
•Accounts payable increased $20.7 million (27.3%).
Current report
◦Accounts payable in High Performance Films increased $1.1 million primarily due to effective working capital management and the timing of vendor payments. DPO was approximately 39.3 days for the 12 months ended March 31, 2026 and 40.6 days for the 12 months ended December 31, 2025.
Current report
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:
Current report
•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
Current report
•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%.
Current report
Based upon the quarterly average of daily availability under the ABL Facility, the interest rate pricing grid, is as follows:
Current report
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%.
Current report
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 requirements to lenders changes to a weekly cadence.
Current report
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.
Current report
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.
Current report
High Performance Films Guangzhou Loan
Removed paragraphs (49)
Previous report
•failure by governmental entities to prevent foreign companies from evading antidumping and countervailing duties;
Previous report
•unanticipated problems or delays with the implementation of the enterprise resource planning and manufacturing executions systems, or security breaches and other disruptions to the Company's information technology infrastructure;
Previous report
•inability to successfully complete strategic acquisitions or dispositions, failure to realize the expected benefits of such acquisitions or dispositions, and assumption of unanticipated risks in such acquisitions or dispositions;
Previous report
Third Quarter Financial Results Highlights
Previous report
◦Sales volume was 41.3 million pounds in the third quarter of 2025 versus 34.6 million pounds in the third quarter of 2024 and 40.7 million pounds in the second quarter of 2025.
Previous report
◦Net new orders decreased 5% in the third quarter of 2025 versus the third quarter of 2024 and 16% versus the second quarter of 2025. Open orders at the end of the third quarter of 2025 were 19 million pounds versus 16 million pounds at the end of the third quarter of 2024 and 25 million pounds at the end of the second quarter of 2025.
Previous report
•EBITDA from ongoing operations for PE Films was $7.2 million in the third quarter of 2025 versus $5.9 million in the third quarter of 2024 and versus $6.7 million in the second quarter of 2025.
Previous report
◦Sales volume was 9.7 million pounds in the third quarter of 2025 versus 9.6 million pounds in the third quarter of 2024 and 9.8 million pounds in the second quarter of 2025.
Previous report
Third Quarter of 2025 Compared with the Third Quarter of 2024 Results
Previous report
The effective tax rate used to compute income taxes (benefit) from continuing operations in the third quarter of 2025 was 22.1% compared to (32.3)% in the third quarter of 2024. The effective tax rate in the third quarter of 2025 was impacted by taxable discrete items, including stock-based compensation. The effective tax rate in the third quarter of 2024 was impacted by a loss from continuing operations before income taxes.
Previous report
Consolidated gross profit (sales minus cost of goods sold and freight) as a percentage of sales (gross profit margin) was 14.7% in the first nine months of 2025 compared to 16.1% in the first nine months of 2024. The gross profit margin in Aluminum Extrusions decreased compared to the prior year period primarily due to higher variable manufacturing costs associated with material yield in the first five months of 2025, higher labor rates, decreased labor productivity associated with onboarding new employees, higher maintenance expense, primarily associated with downed equipment and extreme winter weather events in the first quarter of 2025 and tariff impacts, higher die expense associated with the timing of purchases in the first quarter of 2025, higher expense for externally purchased (versus internally produced) billet related to increasing volume, higher utilities and higher fixed costs associated with wage increases and compensation-related costs, partially offset by higher volume and favorable mix. Additionally, the timing of the flow-through under the FIFO method of aluminum raw material costs, which were previously acquired at lower prices in a quickly changing commodity pricing environment and passed through to customers, resulted in a benefit of $5.4 million in the first nine months of 2025 versus a charge of $1.0 million in the first nine months of 2024. The gross profit margin in PE Films remained consistent with the prior period.
Previous report
As a percentage of sales, SG&A and R&D expenses were 11.5% in the first nine months of 2025 compared with 12.3% in the first nine months of 2024. Sales increased 21.4% while SG&A increased 13.2% compared to the prior period. Higher SG&A spending was primarily due to employee-related incentive compensation, stock-based compensation and business development activities.
Previous report
Interest expense was $3.6 million in the first nine months of 2025 in comparison to $3.5 million in the first nine months of 2024. The increase was primarily due to the write-off of deferred financing fees related to the entry into Amendment No. 5 to the Second Amended and Restated Credit Agreement of $0.8 million, partially offset by lower weighted average total debt outstanding and lower interest rates.
Previous report
The effective tax rate used to compute income taxes (benefit) from continuing operations in the first nine months of 2025 was 27.1% compared to 27.5% in the first nine months of 2024. The effective tax rate in the first nine months of 2025 and the first nine months of 2024 was impacted by taxable discrete items, including stock-based compensation.
Previous report
Third Quarter 2025 Results vs. Third Quarter 2024 Results
Previous report
Net sales (sales less freight) in the third quarter of 2025 increased 40.4% versus the third quarter of 2024 primarily due to higher sales volume and the pass-through of higher metal costs. Sales volume in the third quarter of 2025 increased 19.5% versus the third quarter of 2024 and 1.5% versus the second quarter of 2025. The Company increased shipments for curtainwall, storefront and institutional walkway covers within the nonresidential B&C market versus the third quarter of 2024. Within the specialty market, shipments for solar panel products within the electrical product group, machinery and equipment, consumer durables and distribution products increased versus the third quarter of last year. The Company attributes the increase in nonresidential B&C and consumer durables to a pull-forward of demand earlier in the year as customers placed orders in anticipation of higher tariff-related pricing (see discussion on net new orders below).
Previous report
Year-over-year growth in shipments for TSLOTSTM aluminum framing systems was primarily associated with increased demand for infrastructure associated with data containment and data centers. The Company believes that the growth in the solar and distribution markets was partly due to regaining market share previously lost to imported aluminum extrusions.
Previous report
Net new orders in the third quarter of 2025 decreased 5% versus the third quarter of 2024 and 16% versus the second quarter of 2025. The decrease in net new orders in the third quarter of 2025, which is largely attributed to the tariff increase to 50%, marked the second quarterly decline for this metric, following 10 consecutive quarterly increases.
Previous report
Open orders at the end of the third quarter of 2025 were 19 million pounds versus 16 million pounds at the end of the third quarter of 2024 and 25 million pounds at the end of the second quarter of 2025. This level falls below the quarterly range of 21 to 27 million pounds in 2019 before pandemic-related disruptions that resulted in long lead times.
Previous report
Effective June 4, 2025, the Section 232 tariffs were increased to 50%, except for the United Kingdom, after previously being increased from 10% to 25%, effective March 12, 2025. These measures are in addition to existing antidumping and countervailing duties. There are no country-specific or product-specific exclusions occurring to date, except for an alternative arrangement with the United Kingdom. Tariffs and duties are part of the mechanical pass-through to customers in the U.S. market for aluminum extrusions for changes in metal costs. In addition, the Company implemented price increases during the third quarter of 2025 to offset other tariff-related cost increases that are not part of the metal cost pass-through mechanism.
Previous report
The trend of net new orders declined after the most recent tariff increase to 50% from an average of 3.4 million pounds per week for the weekly periods ending from January 5 to June 1, 2025, to an average of 2.7 million pounds per week for the weekly periods ending June 8, 2025 through November 2, 2025. The Company believes that the 20% decline in net new orders after the step-up in tariff to 50% is due to a combination of: lower demand for extrusions in the U.S.; tariffs not resulting in the expected favorable shift of market share to U.S. aluminum extrusion producers due to the apparent undervaluing of goods by importers; and customers pausing orders to evaluate the permanency of the new higher tariff. When the Section 232 program was initially strengthened, while import volume remained high, U.S. producers began to see increased market share gains against imports. However, the U.S. industry has seen these early gains reversed and imports have again begun gaining share at the expense of the domestic industry, which has impacted the Company’s business. The Company is hopeful that the Administration will address the problem.
Previous report
EBITDA from ongoing operations in the third quarter of 2025 increased $10.6 million versus the third quarter of 2024, primarily due to:
Previous report
▪The underlying average U.S. Midwest transaction prices for aluminum (which includes tariffs and duties) and the main factor causing the flow-through timing issue for the related periods compared, were $1.89 and $1.49 per pound in August and May of 2025, and $1.25 and $1.36 per pound in August and May of 2024. The average U.S. Midwest transaction prices for aluminum for the third and second quarters of 2025 and third and second quarters of 2024 were $1.90, $1.56, $1.27 and $1.34 per pound, respectively.
Previous report
•Higher fixed costs primarily associated with wage increases and compensation-related costs ($0.6 million), higher maintenance and utilities expenses ($0.5 million) and added resources to support increasing volume ($0.3 million).
Previous report
First Nine Months of 2025 Results vs. First Nine Months of 2024 Results
Previous report
Net sales in the first nine months of 2025 increased 27.2% versus the first nine months of 2024 primarily due to higher sales volume and the pass-through of higher metal costs. Sales volume in the first nine months of 2025 increased 16.1% versus the first nine months of 2024.
Previous report
EBITDA from ongoing operations in the first nine months of 2025 increased $3.6 million in comparison to the first nine months of 2024 primarily due to:
Previous report
◦Higher volume and favorable mix ($15.6 million), partially offset by higher variable manufacturing costs associated with material yield in the first five months of 2025, which was unfavorable to projected rates ($0.8 million unfavorable in the first nine months of 2025 versus $0.2 million unfavorable in the first nine months of 2024), higher labor rates ($2.3 million), decreased labor productivity associated with onboarding new employees ($1.2 million), higher maintenance expense, primarily associated with downed equipment, extreme winter weather events in the first quarter of 2025 and tariff impacts ($1.0 million), higher die expense associated with the timing of purchases in the first quarter of 2025 ($0.7 million), higher expense for externally purchased (versus internally produced) billet related to increasing volume ($1.0 million) and higher utilities ($0.7 million).
Previous report
◦The timing of the flow-through under the FIFO method of aluminum raw material costs, which were previously acquired at lower prices in a quickly changing commodity pricing environment and passed through to customers, resulted in a benefit of $5.4 million in the first nine months of 2025 versus a charge of $1.0 million in the first nine months of 2024.
Previous report
•Higher fixed costs associated with wage increases and compensation-related costs ($2.4 million), higher maintenance and utilities ($1.2 million) and added resources to support increasing volume ($0.9 million).
Previous report
Manufacturing costs versus expectations during the second quarter of 2025 were unfavorable by approximately $3 million, which occurred in April and May due to inefficiencies from the ramp-up of production and hiring to fulfill the higher order rate. These issues were resolved and did not recur in the third quarter of 2025.
Previous report
PE Films
Previous report
Third Quarter 2025 Results vs. Third Quarter 2024 Results
Previous report
EBITDA from ongoing operations in the third quarter of 2025 increased $1.4 million versus the third quarter of 2024, primarily due to:
Previous report
◦A $1.8 million increase from Surface Protection associated with higher volume ($0.7 million), cost improvements and favorable productivity ($1.0 million) and the pass-through lag associated with resin costs
Previous report
(a charge of $0.1 million in the third quarter of 2025 versus a charge of $0.2 million in the third quarter of 2024).
Previous report
There have been significant cyclical swings in the sales volume and EBITDA from ongoing operations for PE Films since the beginning of 2022, largely due to the unprecedented downturn in the display industry during the second half of 2022 and first half of 2023. EBITDA from ongoing operations for the past 3.75 years (first nine months of 2025, full year 2024, 2023 and 2022) has averaged approximately $5.0 million per quarter. The top four customers comprised 88% of the net sales for PE Films for the first nine months of 2025 and all of 2024.
Previous report
First Nine Months of 2025 Results vs. First Nine Months of 2024 Results
Previous report
Net sales in the first nine months of 2025 decreased 3.5% compared to the first nine months of 2024 due to a decrease in sales volume in Surface Protection and overwrap films. Sales volume decreased 1.9% in Surface Protection in the first nine months of 2025 versus the first nine months of 2024. Sales volume for overwrap films decreased 5.7% in the first nine months of 2025 versus the first nine months of 2024.
Previous report
EBITDA from ongoing operations in the first nine months of 2025 decreased $1.5 million versus the first nine months of 2024, primarily due to:
Showing the first 40 of 49 passages. Open the source sections for the rest.
Reworded paragraphs (42)
Previous wording
•the impact of public health epidemics on employees, production and the global economy, such as the COVID-19 pandemic;
Current wording
•the impact of public health epidemics on employees, production and the global economy;
Previous wording
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 2024 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, 2024, there have been no changes in these policies or estimates that have had a material impact on our results of operations or financial position.
Current wording
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.
Previous wording
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 PE Films segment. With approximately 1,700 employees, the Company operates manufacturing facilities in the U.S. and China.
Current wording
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.
Previous wording
Third quarter 2025 net income (loss) from continuing operations was $7.1 million ($0.20 per diluted share) compared to $(3.4) million ($(0.10) per diluted share) in the third quarter of 2024.
Current wording
First quarter 2026 net income (loss) from continuing operations was $5.1 million ($0.15 per diluted share) compared to $0.7 million ($0.02 per diluted share) in the first quarter of 2025.
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•EBITDA from ongoing operations for Aluminum Extrusions was $16.8 million in the third quarter of 2025 versus $6.2 million in the third quarter of 2024 and versus $9.3 million in the second quarter of 2025.
Current wording
•EBITDA from ongoing operations for Aluminum Extrusions was $11.7 million in the first quarter of 2026 versus $9.2 million in the first quarter of 2025 and versus $15.7 million in the fourth quarter of 2025.
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First Nine Months of 2025 Compared with the First Nine Months of 2024 Results
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First Quarter of 2026 Compared with the First Quarter of 2025 Results
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The following table presents a bridge of consolidated net income (loss) from continuing operations from the third quarter of 2024 to the third quarter of 2025 with management's related discussion and analysis below the table.
Current wording
The following table presents a bridge of consolidated net income (loss) from continuing operations from the first quarter of 2025 to the first quarter of 2026 with management's related discussion and analysis below the table.
Previous wording
Sales in the first nine months of 2025 increased by $94.8 million compared with the first nine months of 2024. Net sales (sales less freight) in Aluminum Extrusions increased $95.1 million, primarily due to higher sales volume and the pass-through of higher metal costs. Net sales in PE Films decreased $2.8 million, primarily due to a decrease in sales volume in Surface Protection and overwrap films. For more information on net sales and volume, see the Segment Operations Review below.
Current wording
Sales in the first quarter of 2026 increased by $21.8 million compared with the first quarter of 2025. Net sales (sales less freight) in Aluminum Extrusions increased $25.8 million, primarily due to the pass-through of higher metal costs, partially offset by lower volume. Net sales in High Performance Films decreased $4.0 million, primarily due to a decrease in sales volume and unfavorable mix in surface protection films. For more information on net sales and volume, see the Segment Operations Review below.
Previous wording
Consolidated gross profit (sales minus cost of goods sold and freight) as a percentage of sales (gross profit margin) was 16.0% in the third quarter of 2025 compared to 12.4% in the third quarter of 2024. The gross profit margin in Aluminum Extrusions increased compared to the prior year period primarily due to higher volume, favorable pricing and lower manufacturing costs associated with material yield, partially offset by higher labor rates, unfavorable labor productivity associated with onboarding new employees, higher maintenance and supply expense, and higher fixed costs primarily associated with wage increases and compensation-related costs. Additionally, the timing of the flow-through under the first-in first-out (“FIFO”) method of aluminum raw materials costs, which were previously acquired in a quickly changing commodity pricing environment, causing a temporary mismatch in the change in the cost of raw materials included in variable costs and the pass through to customers included in sales, resulted in a benefit of $4.3 million in the third quarter of 2025 versus a charge of $1.0 million in the third quarter of 2024. The gross profit margin in PE Films increased due to a higher Surface Protection contribution margin associated with higher volume, cost improvements and favorable productivity and the pass-through lag associated with resin costs, partially offset by lower overwrap films volume and unfavorable productivity.
Current wording
Consolidated gross profit (sales minus cost of goods sold and freight) as a percentage of sales (gross profit margin) was 12.6% in the first quarter of 2026 compared to 14.3% in the first quarter of 2025. The gross profit margin in Aluminum Extrusions remains consistent with the prior period. The gross profit margin in High Performance Films decreased due to a lower Surface Protection contribution margin associated with lower volume and unfavorable mix, partially offset by higher advanced packaging volume and favorable mix.
Previous wording
As a percentage of sales, selling, general and administrative (“SG&A”) and research and development ("R&D") expenses were 10.5% in the third quarter of 2025 compared with 13.0% in the third quarter of 2024. Third quarter sales increased 33.5% while SG&A increased 8.3% compared to the prior period. Higher SG&A spending was primarily due to employee-related incentive compensation, stock-based compensation and business development activities.
Current wording
As a percentage of sales, selling, general and administrative (“SG&A”) and research and development ("R&D") expenses were 8.9% in the first quarter of 2026 compared with 12.6% in the first quarter of 2025. First quarter sales increased 13.2% while SG&A decreased 20.5% compared to the prior period. Lower SG&A spending was primarily due to lower professional fees associated with business development activities ($2.9 million), lower employee compensation ($0.7 million), and lower stock-based compensation ($0.4 million).
Previous wording
Interest expense was $0.8 million in the third quarter of 2025 in comparison to $1.2 million in the third quarter of 2024. The decrease in interest expense was primarily due to lower weighted average total debt outstanding and lower interest rates.
Current wording
Interest expense was $0.4 million in the first quarter of 2026 in comparison to $1.0 million in the first quarter of 2025. The decrease in interest expense was primarily due to lower weighted average total debt outstanding and lower interest rates.
Previous wording
Pre-tax gains and losses associated with plant shutdowns, asset impairments, restructurings and other items for the third quarters of 2025 and 2024 detailed below are shown in the reconciliation of net sales and EBITDA from ongoing operations by segment in the table in the Segment Operations Review section below and are included in “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the condensed consolidated statements of income, unless otherwise noted.
Current wording
Pre-tax gains and losses associated with plant shutdowns, asset impairments, restructurings and other items for the first quarters of 2026 and 2025 detailed below are shown in the reconciliation of net sales and EBITDA from ongoing operations by segment in the table in the Segment Operations Review section below and are included in “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the condensed consolidated statements of income, unless otherwise noted.
Previous wording
•A $12.7 million increase in contribution margin (net sales less variable costs) associated with:
Current wording
•A $2.0 million increase in contribution margin (net sales less variable costs) associated with:
Previous wording
◦Higher volume ($4.9 million), favorable pricing ($4.2 million) and lower manufacturing costs associated with material yield ($0.5 million favorable in the third quarter of 2025 versus $0.8 million unfavorable in the third quarter of 2024), partially offset by higher labor rates ($0.9 million), unfavorable labor productivity associated with onboarding new employees ($0.7 million), higher maintenance and supply expense, partially due to the impact of tariffs ($0.5 million), and higher utilities ($0.3 million).
Current wording
◦Pricing increases ($4.6 million) and lower manufacturing costs associated with material yield ($2.0 million favorable in the first quarter of 2026 versus $0.1 million unfavorable in the first quarter of 2025), partially offset by lower volume ($2.1 million), higher labor rates ($0.7 million), unfavorable labor productivity ($0.6 million), higher maintenance and supply expense ($0.8 million), higher freight expense ($0.4 million), higher utilities ($0.5 million), and higher die expense ($0.8 million).
Previous wording
◦The timing of the flow-through under the FIFO method of aluminum raw materials costs, which were previously acquired in a quickly changing commodity pricing environment, causing a temporary mismatch in the change in the cost of raw materials included in variable costs and the pass through to customers included in sales, resulted in a benefit of $4.3 million in the third quarter of 2025 versus a charge of $1.0 million in the third quarter of 2024.
Current wording
◦The timing of the flow-through under the first-in, first-out ("FIFO") method of aluminum raw materials costs, which were previously acquired in a quickly changing commodity pricing environment, causing a temporary mismatch in the change in the cost of raw materials included in variable costs and the pass through to customers included in sales, resulted in a benefit of $2.9 million in the first quarter of 2026 versus a benefit of $1.7 million in the first quarter of 2025.
Previous wording
•Higher SG&A expenses primarily associated with employee-related compensation ($3.3 million), increased training and onboarding expense ($0.5 million) and routine environmental compliance costs ($0.3 million).
Current wording
•Lower SG&A expenses primarily associated with lower employee-related compensation and lower routine environmental compliance expense ($0.5 million).
Previous wording
•Higher other expense for employee-related medical costs caused by an increase in the number of high-cost medical claims versus favorable experience in recent years ($1.1 million). The Company is self-insured for medical claims with stop loss coverage for claims of over $0.3 million.
Current wording
•Lower other expense for employee-related medical costs associated with medical claims ($0.6 million).
Previous wording
Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk in this Form 10-Q for additional information on aluminum prices.
Current wording
Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk in this Form 10-Q for additional information on aluminum price trends.
Previous wording
Capital expenditures for Bonnell Aluminum are projected to be $17 million in 2025, including $5 million for productivity projects and $12 million for capital expenditures required to support continuity of operations. Depreciation expense is projected to be $15 million in 2025. Amortization expense is projected to be $2 million in 2025.
Current wording
Capital expenditures for Bonnell Aluminum are projected to be $20 million in 2026, including $4 million for productivity projects and $16 million for capital expenditures required to support continuity of operations. Depreciation expense is projected to be $14 million in 2026. Amortization expense is projected to be $2 million in 2026. The Company anticipates capital spending to increase from the levels of the past two years and return to a pattern more closely aligned with depreciation and amortization, consistent with long-term historical patterns. This approach supports ongoing maintenance and efficiency initiatives while maintaining disciplined capital allocation.
Previous wording
A summary of results for PE Films is provided below:
Current wording
A summary of results for High Performance Films is provided below:
Previous wording
Net sales in thethird quarterof 2025 increased 4.0% versus the third quarter of 2024 due to an increase in sales volume in surface protection films. Sales volume increased 10.9% in surface protection films versus the third quarter of 2024 and 16.1% versus the second quarter of 2025. Recent volume performance for Surface Protection is expected to moderate for the remainder of the year. Volume for overwrap films, which are predominantly manufactured and sold in the U.S. and used in consumer staple items, decreased 11.0% in the third quarter of 2025 versus the third quarter of 2024.
Current wording
Net sales in the first quarterof 2026 decreased 15.7% versus the first quarter of 2025 due to a decrease in sales volume and unfavorable mix in surface protection films. Surface Protection sales volume decreased 17.5% in the first quarter of 2026 versus the first quarter of 2025. Sales volume for surface protection films declined in the first quarter of 2026 as expected due to a significant customer’s inventory correction and scheduled maintenance activity for another customer. Volume for advanced packaging films, which are predominantly manufactured and sold in the U.S. and used in consumer staple items, increased 5.6% in the first quarter of 2026 versus the first quarter of 2025. The top four customers comprised 87% and 91% of the net sales for High Performance Films for the first three months of 2026 and first three months of 2025, respectively.
Previous wording
To date, Surface Protection has not experienced an adverse impact on customer demand related to tariff actions; however, the situation remains fluid and the impact on consumer electronics is uncertain.
Current wording
Surface Protection has not experienced an adverse impact on customer demand related to tariff actions; however, the situation remains fluid and the impact on consumer electronics is uncertain.
Previous wording
•A decrease in contribution margin of $0.8 million resulting from:
Current wording
•A decrease in contribution margin of $2.4 million resulting from:
Previous wording
◦A $0.4 million decrease from overwrap films primarily due to lower volume ($0.1 million) and unfavorable productivity ($0.3 million)
Current wording
◦A $0.4 million increase from advanced packaging films primarily due to higher volume, favorable mix and unfavorable pricing ($0.5 million), partially offset by unfavorable productivity ($0.1 million).
Previous wording
Capital expenditures for PE Films are projected to be $2 million in 2025, including $1 million for productivity projects and $1 million for capital expenditures required to support continuity of current operations. Depreciation expense is projected to be $5 million in 2025. There is no amortization expense for PE Films.
Current wording
Capital expenditures for High Performance Films are projected to be $2 million in 2026, including $1 million for productivity projects and $1 million for 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.
Previous wording
Corporate expenses, net in the first nine months of 2025 increased $4.9 million compared to the first nine months of 2024 primarily due to higher professional fees associated with business development activities ($5.3 million) and higher employee-related incentive compensation ($2.0 million), partially offset by a gain on the sale of corporate-owned land ($1.5 million) and lower external and internal audit fees ($0.7 million). The Company does not expect significant expenses from business development activities in the fourth quarter of 2025.
Current wording
Corporate expenses, net in the first three months of 2026 decreased $2.9 million compared to the first three months of 2025 due to lower professional fees associated with business development activities ($2.9 million). The Company does not expect significant expenses from business development activities in 2026.
Previous wording
A reconciliation of segment financial information to consolidated results for the Company for the three and nine months ended September 30, 2025 and 2024.
Current wording
A reconciliation of segment financial information to consolidated results for the Company for the three months ended March 31, 2026 and 2025.
Previous wording
◦Accounts and other receivables in Aluminum Extrusions increased $23.0 million primarily due to higher sales volume and 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 44.2 days for the 12 months ended September 30, 2025 and 44.7 days for the 12 months ended December 31, 2024.
Current wording
◦Accounts and other receivables in Aluminum Extrusions increased $10.8 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 45.0 days for the 12 months ended March 31, 2026 and 44.8 days for the 12 months ended December 31, 2025.
Previous wording
◦Inventories in Aluminum Extrusions increased $9.1 million primarily due to higher average aluminum prices and increased raw material levels from seasonally low levels at the end of last year. 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 48.7 days for the 12 months ended September 30, 2025 and 47.4 days for the 12 months ended December 31, 2024.
Current wording
◦Inventories in Aluminum Extrusions increased $18.9 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 50.7 days for the 12 months ended March 31, 2026 and 48.8 days for the 12 months ended December 31, 2025.
Previous wording
◦Accounts and other receivables in PE Films remain consistent with prior period. DSO was approximately 25.5 days for the 12 months ended September 30, 2025 and 24.9 days for the 12 months ended December 31, 2024.
Current wording
◦Inventories in High Performance Films remain consistent with prior year. DIO was approximately 55.7 days for the 12 months ended March 31, 2026 and 54.6 days for the 12 months ended December 31, 2025.
Previous wording
•Net property, plant and equipment decreased $6.6 million primarily due to depreciation expense of $15.0 million, partially offset by capital expenditures of $9.0 million.
Current wording
•Net property, plant and equipment increased $0.1 million primarily due to capital expenditures of $4.9 million and favorable foreign exchange of $0.1 million, partially offset by depreciation expense of $4.9 million.
Previous wording
•Identifiable intangible assets, net decreased $1.3 million (18.0%) due to amortization expense.
Current wording
•Identifiable intangible assets, net decreased $0.4 million (7.9%) due to amortization expense.
Previous wording
◦Accounts payable in Aluminum Extrusions increased $13.9 million primarily due to higher average aluminum prices and increased raw material purchases to support higher sales volume. 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 45.8 days for the 12 months ended September 30, 2025 and 44.5 days for the 12 months ended December 31, 2024.
Current wording
◦Accounts payable in Aluminum Extrusions increased $20.1 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. 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 47.7 days for the 12 months ended March 31, 2026 and 46.6 days for the 12 months ended December 31, 2025.
Previous wording
Net cash provided by operating activities was $17.3 million in the first nine months of 2025 compared to net cash provided by operating activities of $6.1 million in the first nine months of 2024. The change in operating activities from the Company's continuing business segments is primarily due to higher segment EBITDA from ongoing operations, partially offset by higher working capital.
Current wording
Net cash provided by operating activities was $2.0 million in the first three months of 2026 compared to net cash used in operating activities of $5.0 million in the first three months of 2025. The change primarily reflects more favorable working capital movements in the first quarter of 2026 compared to the first quarter of 2025.
Previous wording
Net cash provided by investing activities was $2.5 million in the first nine months of 2025 compared to net cash used in investing activities of $7.5 million the first nine months of 2024. The change is primarily due to $9.8 million post-closing settlement proceeds associated with the sale of Terphane received in the first three months of 2025 and proceeds on the sale of corporate-owned land ($1.9 million), partially offset by higher capital expenditures ($1.6 million).
Current wording
Net cash used in investing activities was $4.6 million in the first three months of 2026 compared to net cash provided by investing activities of $6.9 million the first three months of 2025. The change is primarily due to $9.8 million post-closing settlement proceeds associated with the sale of Terphane received in the first three months of 2025, partially offset by higher capital expenditures ($2.2 million).
Previous wording
Net cash used in financing activities of $13.7 million in the first nine months of 2025 compared to net cash used in financing activities of $3.6 million in the first nine months of 2024. The change is primarily due to lower debt borrowings, net of principal payments ($9.5 million) under the ABL Facility (as defined below) in the first nine months of 2025, partially offset by higher deferred financing fees paid associated with Amendment No. 5 (defined below) to the ABL Facility in the first nine months of 2025.
Current wording
Net cash provided by financing activities of $11.3 million in the first three months of 2026 compared to net cash used in financing activities of $5.3 million in the first three months of 2025. The change is primarily due to higher debt borrowings, net of principal payments ($16.5 million) under the ABL Facility (as defined below) in the first three months of 2026.
Previous wording
At September 30, 2025, the Company had cash and cash equivalents of $13.3 million, including cash and cash equivalents held in locations outside the U.S. of $2.0 million.
Current wording
At March 31, 2026, the Company had cash and cash equivalents of $15.6 million, including cash and cash equivalents held in locations outside the U.S. of $2.6 million.
Previous wording
In May 2025, the Company entered into Amendment No. 5 (“Amendment No. 5”) to the Second Amended and Restated Credit Agreement (the "ABL Facility"), which 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. Amendment No. 5 extended the maturity date of the ABL Facility to May 6, 2030. As of September 30, 2025, funds available to borrow under the ABL Facility was $72.5 million, or 58.0% of the aggregate commitment of $125 million. During the third quarter of 2025, the Company's letters of credit have been reduced from approximately $12 million to $3 million, which directly increases the Company's borrowing availability.
Current wording
The Second Amended and Restated Credit Agreement (or amended, 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 March 31, 2026, funds available to borrow under the ABL Facility was $76 million, or 61.0% 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.
Previous wording
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 believes the likelihood that lenders would exercise the subjective acceleration clause whereby prohibiting future borrowings is remote. As of September 30, 2025, the Company was in compliance with all debt covenants.
Current wording
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 believes the likelihood that lenders would exercise the subjective acceleration clause whereby prohibiting future borrowings is remote.
Previous wording
The computation of Credit EBITDA, as defined in the ABL Facility, and fixed charge coverage ratio is presented below.
Current wording
The computation of Credit EBITDA and fixed charge coverage ratio, as defined in the ABL Facility, is presented below.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
As of March 31, 2026, the Company was in compliance with all debt covenants.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
Sales in the third quarter of 2025 increased by $48.9 million compared with the third quarter of 2024. Net sales (sales less freight) in Aluminum Extrusions increased $46.8 million, primarily due to higher sales volume and the pass-through of higher metal costs. Net sales in PE Films increased $1.0 million, primarily due to an increase in sales volume in surface protection films. For more information on net sales and volume, see the Segment Operations Review below.
Previous report — wording carried elsewhere
The following table presents a bridge of consolidated net income (loss) from continuing operations from the first nine months of 2024 to the first nine months of 2025 with management's related discussion and analysis below the table.
Previous report — wording carried elsewhere
Pre-tax gains and losses associated with plant shutdowns, asset impairments, restructurings and other items for the first nine months of 2025 and 2024 detailed below are shown in the reconciliation of net sales and EBITDA from ongoing operations by segment in the table in the Segment Operations Review section below and are included in “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the condensed consolidated statements of income, unless otherwise noted.
Previous report — wording carried elsewhere
Average total debt outstanding and interest rates were as follows:
Previous report — wording carried elsewhere
•Higher SG&A expenses primarily associated with employee-related compensation ($0.4 million).
Previous report — wording carried elsewhere
•A $14.0 million increase in contribution margin associated with:
Previous report — wording carried elsewhere
•An increase in contribution margin of $1.4 million resulting from: