Breaking Down Tredegar Corporation (TG) Financial Health: Key Insights for Investors

You're looking at Tredegar Corporation (TG) because the third quarter of 2025 delivered a clear operational swing, but the near-term outlook is defintely mixed. The headline is a solid return to profitability, with the company reporting a Q3 2025 net income from continuing operations of $7.1 million, or $0.20 per diluted share, a major turnaround from the net loss in the prior year period. The underlying business is showing strength, with year-to-date sales hitting $538.8 million as of September 30, 2025. That's the good news. But here's the quick math on the risk: the Aluminum Extrusions segment, a core driver, saw a 16% sequential decrease in net new orders in Q3, a direct result of increased Section 232 tariffs creating an uneven playing field. Still, the balance sheet is stable, with net debt dropping significantly to $36.2 million, giving them breathing room as they navigate this tariff headwind and prepare for a CEO and CFO transition in early 2026. This isn't a simple growth story; it's a complex operational recovery facing a major policy risk.

Revenue Analysis

You need a clear picture of where Tredegar Corporation (TG) is making its money, and the data for 2025 through the third quarter shows a clear turnaround: the company's trailing twelve months (TTM) revenue as of September 30, 2025, hit $691.17 million, representing a substantial 43.30% year-over-year growth. This is a defintely strong top-line signal, but the growth is highly concentrated and carries a few near-term risks you need to watch.

The company operates primarily through two segments, and the revenue streams reflect this industrial focus:

• Aluminum Extrusions: Custom aluminum extrusions for the North American building & construction, automotive, and specialty end-use markets.
• PE Films: Polyethylene films, specifically surface protection films for high-technology applications in the global electronics industry, and overwrap films for consumer staple items.

The Aluminum Extrusions segment is the clear revenue driver. In the first quarter of 2025 alone, the segment generated $133.6 million in net sales, compared to just $25.5 million from PE Films. That's a 5-to-1 revenue split in favor of aluminum to start the year. Here's the quick math on the first nine months of 2025 (9M 2025) revenue, which totaled $538.7 million:

The growth rate is accelerating, with Q3 2025 sales of $194.9 million showing a 33.0% year-over-year increase. This surge is largely due to higher sales volume and the pass-through of higher metal costs in the Aluminum Extrusions segment. For instance, the Aluminum Extrusions sales volume jumped 19.5% in Q3 2025 compared to Q3 2024.

What this estimate hides is the volatility in the PE Films segment and the impact of trade policy. While the surface protection film side saw a 10.9% volume increase in Q3 2025, the overwrap films volume decreased by 11.0% in the same period. Also, the new Section 232 tariffs on aluminum imports, which increased to 25% in March 2025, initially helped by preventing undervalued imports, but a subsequent increase to 50% led to a decline in net new orders for Aluminum Extrusions in Q3 2025. That's a serious headwind to watch. If you want to dive deeper into the institutional movements around this, you should check out Exploring Tredegar Corporation (TG) Investor Profile: Who's Buying and Why?

The core takeaway here is that Tredegar Corporation's revenue engine is firing on volume and pricing in aluminum, but the tariff situation is already causing a slowdown in new orders-a leading indicator of future revenue. The PE Films segment is a mixed bag, with strong specialty film performance masking weakness in the consumer-focused overwrap business. Your next step should be to model the Q4 revenue based on a conservative 10% sequential drop in Aluminum Extrusions net new orders.

Profitability Metrics

You want to know if Tredegar Corporation (TG) is actually making money and how efficiently, especially after a volatile few years. The direct takeaway is that Q3 2025 showed a strong rebound in core profitability, driven by its Aluminum Extrusions segment, but its margins still lag behind the broader manufacturing sector average.

Here's the quick math on their Q3 2025 performance, which is the freshest data we have, reported in November 2025. This quarter marks a significant inflection point, swinging from a net loss a year ago to a profit.

• Gross Profit Margin: 16.0% [cite: 13, from step 1]
• Net Profit Margin (Continuing Operations): Approximately 3.64%
• Q3 Sales: $194.9 million [cite: 13, from step 1]
• Q3 Net Income (Continuing Operations): $7.1 million [cite: 13, from step 1]

The gross profit margin of 16.0% in Q3 2025 is a massive improvement over the 12.4% they posted in the same quarter last year [cite: 13, from step 1]. This tells me the company is finally getting a grip on its Cost of Goods Sold (COGS), which had been a major headwind. But, to be fair, the Q1 2025 gross margin was only 14.3%, which shows the margin is defintely fluctuating.

Operating Profit and Efficiency

When you look at operating profit (which is profit before interest and taxes), the company uses a non-GAAP metric called EBITDA from ongoing operations (Earnings Before Interest, Taxes, Depreciation, and Amortization) to show how its core segments are doing. This is a good proxy for operational efficiency, and the trend here is clear: the Aluminum Extrusions segment, Bonnell, is the engine.

In Q3 2025, the combined EBITDA from ongoing operations for the two main segments was $24.0 million ($16.8 million from Aluminum Extrusions and $7.2 million from PE Films). This segment strength is what drove the nine-month net income from continuing operations up to $9.6 million on sales of $538.8 million [cite: 13, from step 1]. Strong segment execution is key.

The expansion in gross margin to 16.0% was directly linked to higher sales volume, better pricing, and a favorable FIFO (First-In, First-Out) metal cost timing benefit in Aluminum Extrusions [cite: 13, from step 1]. This is a sign of good operational execution, but you need to watch if that FIFO benefit is sustainable or just a one-off tailwind. Management is already looking at cost reduction opportunities for 2026, which signals they know they need to keep tightening the belt.

Benchmarking Against the Industry

This is where the rubber meets the road. Tredegar Corporation operates in the industrial manufacturing space, with its largest segment in aluminum. When we compare its Q3 2025 margins to the industry averages, the picture is mixed.

The Q3 Gross Profit Margin of 16.0% is higher than the 14% average for the Aluminum industry. That's a win for Tredegar Corporation, showing they are managing their direct production costs better than the average aluminum company. However, the Q3 Net Profit Margin of 3.64% is slightly below the Aluminum industry average of 4.2%.

Here is a quick comparison of their Q3 2025 performance against the closest industry benchmark:

What this difference tells you is that while Tredegar Corporation is efficient at the production level (strong gross margin), the operating expenses (SG&A, R&D, etc.) and non-operating costs (like interest and taxes) are eating up a larger share of their revenue than their peers. This is a clear area for management to focus on to maximize shareholder returns. For a deeper dive into the company's balance sheet and strategic moves, you can read the full post: Breaking Down Tredegar Corporation (TG) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You want to know if Tredegar Corporation (TG) is using too much debt to fuel its operations, and the quick answer is no: the company's capital structure is conservative, leaning heavily on equity. Their debt-to-equity (D/E) ratio sits at a healthy 0.31 as of the trailing twelve months ending November 2025, which is notably lower than the 0.50 average for the broader Building Materials sector, where a significant part of their business operates. This low leverage suggests a strong balance sheet and a lot of financial headroom.

Tredegar Corporation's total debt load is manageable and shrinking. As of September 30, 2025, the company reported total debt of $49.5 million. This is a solid improvement, as total debt decreased by $12.4 million in the first nine months of 2025 alone, demonstrating a clear focus on de-leveraging. The current debt structure is simple and clean.

• Total Debt (Q3 2025): $49.5 million.
• Short-Term Debt: $0 (The total outstanding debt is drawn from a long-term facility).
• Debt-to-Equity Ratio (TTM): 0.31.
• Industry Average (Building Materials): 0.50.

Here's the quick math on their financing: for every dollar of shareholder equity, Tredegar Corporation is only using about $0.31 in debt to finance its assets. That's a low-risk profile for a capital-intensive manufacturer. This conservative approach means they have significant capacity to borrow if a major acquisition or a large, high-return capital expenditure project comes up, which is a key strategic advantage in a cyclical industry.

The company has defintely been proactive about managing its debt maturity schedule. On May 6, 2025, Tredegar Corporation successfully refinanced its $125 million asset-based lending (ABL) facility, extending the maturity to a new five-year term that runs until May 6, 2030. This move removes near-term refinancing risk and provides stable liquidity. The company has also consistently maintained compliance with all covenants under this ABL facility, underscoring their financial discipline. This balance of using internal cash flow and a flexible, long-term credit line is how they fund growth without taking on excessive risk.

For a deeper dive into their operational performance and valuation, you can read the full analysis here: Breaking Down Tredegar Corporation (TG) Financial Health: Key Insights for Investors

Liquidity and Solvency

You need to know if Tredegar Corporation (TG) has enough immediate cash to cover its short-term bills, and the 2025 figures show a solid, if somewhat inventory-dependent, liquidity position. The company's core liquidity ratios are healthy, but a closer look at the cash flow statement reveals that a significant one-time event is masking a persistent issue in operations.

For the third quarter ended September 30, 2025, Tredegar Corporation's balance sheet shows a strong ability to meet its near-term obligations. Here's the quick math on the key ratios, using the Q3 2025 data:

• Current Ratio: At 1.67, this is well above the 1.0 benchmark, indicating the company has $1.67 in current assets for every dollar of current liabilities.
• Quick Ratio (Acid-Test Ratio): This ratio, which strips out inventory, stands at approximately 1.08 ($174.89 million in Current Assets minus $62.01 million in Inventory, divided by $104.885 million in Current Liabilities).

The 1.67 Current Ratio is defintely a strength, but the slight drop to 1.08 for the Quick Ratio tells you that inventory is a meaningful part of the liquidity cushion. That's typical for a manufacturing business like Tredegar Corporation, but it means you should watch inventory turnover-if those aluminum extrusions and PE films don't sell, that liquidity is less 'quick.' The company's working capital (Current Assets minus Current Liabilities) at Q3 2025 was approximately $70.002 million, providing a substantial buffer.

Working Capital and Cash Flow Trends

The trends in working capital and cash flow statement components highlight the near-term risks and opportunities. Tredegar Corporation saw a higher net working capital in the first half of 2025, partly due to seasonally low levels at the end of 2024, plus the impact of tariffs on their core aluminum extrusions business.

The cash flow statement overview for the first quarter of 2025 reveals a mixed picture:

• Operating Cash Flow (OCF): Net cash used in operating activities was $5.0 million in Q1 2025. This is an improvement from the $7.7 million used in Q1 2024, but still represents a cash flow burden, meaning the core business is consuming cash, not generating it.
• Investing Cash Flow (ICF): This was a strong positive, with net cash provided by investing activities of $6.9 million in Q1 2025. However, this figure is heavily skewed by a one-time event: the $9.8 million in proceeds received from the post-closing settlement associated with the sale of Terphane. This is a non-recurring boost.
• Financing Cash Flow (FCF): The company used $5.3 million in financing activities in Q1 2025, primarily for debt principal payments, which is a good sign of deleveraging. Net debt fell meaningfully to $36.2 million as of September 30, 2025, down from $54.8 million at the end of 2024.

The most important takeaway here is that while the balance sheet liquidity looks good, the operating cash flow needs to turn positive to sustain that position without relying on asset sales or external financing. The company has a significant liquidity strength in its Asset-Based Lending (ABL) facility, with approximately $73 million available to borrow as of Q3 2025. This is your safety net, but you don't want to see them drawing on it to fund operations. For a deeper dive into the company's long-term strategy that drives these financial decisions, check out their Mission Statement, Vision, & Core Values of Tredegar Corporation (TG).

Valuation Analysis

You're looking at Tredegar Corporation (TG) right now and asking the core question: is the market pricing this correctly? My direct takeaway is that Tredegar Corporation is currently priced as a Hold with a bias toward Undervalued based on its book value, but the negative trailing earnings introduce significant risk that pushes the consensus toward a 'Sell' or 'Hold.'

The stock has seen a solid run over the last year, increasing by 17.24% through November 2025, which reflects a recovery from prior lows. However, the current valuation ratios show a mixed picture that demands a closer look at the company's profitability, especially after the divestiture of its Terphane segment.

Here's the quick math on the key valuation multiples, using the recent stock price of $\mathbf{\$7.84}$ per share as of November 20, 2025:

• Price-to-Earnings (P/E) Ratio: The trailing twelve months (TTM) P/E is reported as $\mathbf{-4.28}$. This negative number is a massive red flag, indicating the company has negative net earnings over the past year. Honestly, you can't use a negative P/E for a meaningful comparison. What this estimate hides is the volatility in their core business segments, Aluminum Extrusions and PE Films. For context, another source shows a P/E of $\mathbf{24.58x}$, which suggests a forward-looking or non-GAAP earnings calculation, but the TTM GAAP loss is the immediate risk.
• Price-to-Book (P/B) Ratio: The P/B ratio stands at approximately $\mathbf{1.54}$. This is the most compelling argument for the stock being undervalued. A P/B ratio this low, especially in the basic materials sector, suggests the market is valuing the company at only $\mathbf{1.54}$ times its net asset value (shareholder's equity). If the company can stabilize its earnings, this P/B ratio offers a margin of safety.
• Enterprise Value-to-EBITDA (EV/EBITDA): The TTM EV/EBITDA is around $\mathbf{8.6x}$. This is a more stable metric to use when P/E is negative. This multiple is generally reasonable for an industrial company, but it's not defintely cheap. It signals that the market is valuing the entire business (equity plus debt, minus cash) at $\mathbf{8.6}$ times its operating cash flow proxy (Earnings Before Interest, Taxes, Depreciation, and Amortization).

The stock price trend over the last 12 months shows a recovery, with the stock climbing $\mathbf{17.24\%}$ from its 52-week low of $\mathbf{\$6.25}$ to its recent price. This short-term momentum is positive, but it's crucial to remember the 52-week high was $\mathbf{\$9.43}$, meaning there's still a gap to fill.

Regarding income investors, the dividend situation is clear: Tredegar Corporation has effectively suspended its dividend. The TTM dividend yield is $\mathbf{0.00\%}$, and the last recorded payment was in July 2023. The payout ratio is $\mathbf{0.00}$, which is the necessary move when a company is focusing on operational turnaround and cash preservation.

Analyst consensus is split, which is typical for a company in a transition phase with volatile earnings.

Overall, the analyst community is either advising investors to exit or simply hold their position, with a price target of $\mathbf{\$8.50}$ suggesting limited upside from the current $\mathbf{\$7.84}$ in the near-term. The low P/B ratio is the value investor's hook, but the negative TTM earnings are the immediate risk. If you want to dive deeper into how their segments are performing, you should read Breaking Down Tredegar Corporation (TG) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Tredegar Corporation (TG) and seeing some positive momentum, like the $7.1 million net income from continuing operations in the third quarter of 2025, but you need to see the full risk picture. The company is managing a tricky dual-segment environment where external pressures and internal execution risks are pressing hard on margins. Honestly, the biggest near-term challenge is the volatility in their core segments.

The Aluminum Extrusions business, which drives a significant portion of revenue, is facing a real squeeze. While sales volume increased by 16.1% in the first nine months of 2025 compared to 2024, the segment's profitability remains under pressure. For example, in the second quarter of 2025, manufacturing inefficiencies-mostly from rapid hiring and production ramp-ups-added about $3 million in costs, which directly contributed to the segment's EBITDA from ongoing operations dropping to $9.3 million in Q2 2025, down from $13.0 million in Q2 2024. That's a sharp drop.

External factors are also creating significant headwinds, particularly the regulatory and market shifts impacting both segments. The Section 232 tariffs on aluminum imports, which increased from 25% to 50% effective June 4, 2025, have created uncertainty. This regulatory change caused U.S. customers to delay orders, leading to an 11% sequential decline in net new orders for Aluminum Extrusions in Q2 2025. Plus, the PE Films segment is grappling with a cyclical downturn in the global electronics industry, which caused Surface Protection sales volume to decrease by 1.9% in the first nine months of 2025 compared to 2024, driving the segment's nine-month EBITDA down by $1.5 million.

Here's a quick map of the key risks and their 2025 financial impact:

• Operational Cost Volatility: Manufacturing inefficiencies added $3 million in Q2 2025 costs.
• Regulatory/Market Risk: New Section 232 tariffs caused an 11% sequential drop in Aluminum Extrusions net new orders in Q2 2025.
• Cyclical Demand: PE Films' Surface Protection sales volume dropped 1.9% in the first nine months of 2025.
• Strategic Transition: The Chief Financial Officer is set to retire on December 31, 2025, creating executive transition risk.

To be fair, Tredegar Corporation has clear mitigation strategies. They refinanced their $125 million asset-based lending (ABL) facility for a five-year term on May 6, 2025, which gives them a critical liquidity buffer-net debt was a manageable $36.2 million as of September 30, 2025. They are also being proactive on the operational front. The company is investing a projected $17 million in capital expenditures for Aluminum Extrusions in 2025, with $5 million specifically earmarked for productivity projects to resolve those cost issues. They've already signaled price increases in Q3 2025 for Aluminum Extrusions to offset non-metal cost pressures, which is a necessary move to stabilize margins.

The company's mitigation efforts are focused on internal control and financial flexibility:

What this estimate hides is the execution risk of the CFO transition and whether customers will accept the price hikes in a competitive market. You can dive deeper into the full financial picture in our main post: Breaking Down Tredegar Corporation (TG) Financial Health: Key Insights for Investors.

Growth Opportunities

You are right to focus on Tredegar Corporation (TG)'s future growth, because the business has been in a significant period of transition and the numbers for 2025 show a clear shift. The direct takeaway is that growth is now heavily concentrated in the Aluminum Extrusions segment, specifically driven by specialty markets and a favorable trade environment, even as overall revenue growth remains strong.

Tredegar Corporation's total revenue for the last twelve months ending September 30, 2025, hit approximately $691.17 million, marking a substantial 43.30% year-over-year increase. This impressive top-line growth is a direct result of strong sales volume and the pass-through of higher metal costs. My quick math shows that this momentum is defintely tied to their core industrial focus.

Segment Performance and Near-Term Estimates

The company's future revenue growth is largely dependent on its two main segments: Aluminum Extrusions (Bonnell Aluminum) and PE Films. The Aluminum Extrusions business is the powerhouse right now, with Q3 2025 sales volume jumping to 41.3 million pounds, a 19.5% increase over Q3 2024. The market is recovering, and Tredegar Corporation is capturing that demand.

On the earnings front, net income from ongoing operations (a cleaner view of core business performance) for the third quarter of 2025 was $9.2 million, or $0.26 per diluted share, a massive improvement from just $0.2 million in the same period last year. The PE Films segment is stable but less dynamic; its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) from ongoing operations in Q3 2025 was $7.2 million, up from $5.9 million in Q3 2024.

Strategic Edge and Product Innovation

The biggest tailwind for Tredegar Corporation is a strategic advantage created by U.S. trade policy. The new Section 232 tariffs on aluminum imports, which increased from 10% to 25% in March 2025, are actively helping the company regain market share. This is a clear, government-backed competitive advantage that is already showing up in their order books.

In terms of product innovation and market expansion, the focus is less on revolutionary new products and more on high-growth, specialty applications where their custom extrusions excel. They are investing capital to support this growth.

• Solar Market Gains: Increased shipments for specialty markets, particularly for solar panels, are driving volume in the Aluminum Extrusions segment.
• Productivity Investment: Projected 2025 capital expenditures include $5 million for productivity projects in Aluminum Extrusions and $2 million in PE Films, signaling a commitment to cost-efficiency and capacity.
• Infrastructure Demand: Strong shipments for nonresidential building and construction (B&C) markets, including curtainwall and institutional walkway covers, are benefiting from renewed infrastructure spending.

The company is leveraging its strong financial position, including the May 2025 refinancing of its $125 million asset-based lending facility, to navigate market volatility and fund these internal growth projects. If you are interested in who is betting on this turnaround, you should check out Exploring Tredegar Corporation (TG) Investor Profile: Who's Buying and Why?

Next Step: Portfolio Manager: Model the impact of a 5% decline in aluminum prices on the Bonnell Aluminum segment's gross margin by next Wednesday.