Tredegar Corporation Reports Q2 2025 Financial Results with $1.7M Net Income

Tredegar Corporation reported its financial results for the second quarter and first half of 2025, revealing a net income of $1.7 million, or $0.05 per diluted share, compared to $8.8 million, or $0.26 per diluted share, in the same period of 2024. For the first six months of 2025, the company recorded a net income of $11.8 million, down from $12.1 million in the prior year. Total revenues for the second quarter reached $179.1 million, a 16.4% increase from $153.9 million in the second quarter of 2024, while revenues for the first half of 2025 were $343.9 million, up from $297.9 million in the same period last year.

The company experienced significant changes in its operational metrics, with sales in the Aluminum Extrusions segment increasing by 24.2% year-over-year in the second quarter, driven by higher sales volume and the pass-through of increased metal costs. However, the PE Films segment saw a decline in sales, with revenues decreasing by 15.8% in the second quarter due to lower sales volume in surface protection films. The overall gross profit margin decreased to 13.6% in the second quarter of 2025 from 19.2% in the prior year, attributed to higher variable manufacturing costs and unfavorable labor productivity.

Strategically, Tredegar completed the sale of its flexible packaging films business, Terphane, to Oben Group in November 2024, which has since been classified as discontinued operations. The company received $60 million in cash at closing and an additional $9.8 million from post-closing settlements in early 2025. This divestiture is part of Tredegar's ongoing efforts to streamline operations and focus on its core segments. The company also closed its PE Films technical center in Richmond, Virginia, in August 2023, consolidating research and development activities at its Pottsville, Pennsylvania facility.

Operationally, Tredegar's employee headcount stood at approximately 1,600 as of June 30, 2025. The company reported an increase in accounts receivable and inventories, reflecting higher sales volumes and raw material costs. The accounts receivable increased by $14 million, while inventories rose by $15.3 million, indicating a strategic buildup in response to anticipated demand. The company’s cash and cash equivalents at the end of the second quarter were $9.8 million, up from $7.1 million at the end of 2024.

Looking ahead, Tredegar anticipates continued challenges in the market, particularly in the Aluminum Extrusions segment, where recent tariff increases may impact demand. The company plans to implement price increases to offset rising costs and is focused on improving working capital management. Despite the current challenges, Tredegar remains committed to its strategic initiatives and expects to leverage its operational efficiencies to enhance profitability in the coming quarters.