Tredegar Corporation Reports $10.1 Million Net Income in Q1 2025, Revenue Growth Driven by Aluminum Extrusions

Tredegar Corporation reported a net income of $10.1 million for the first quarter of 2025, a significant increase from $3.3 million in the same period of 2024. This translates to earnings per share of $0.29, compared to $0.10 in the prior year. The company’s total revenues rose to $164.7 million, up from $144.0 million a year earlier, driven primarily by increased sales in its Aluminum Extrusions segment, which saw net sales grow by 17% to $133.6 million. The PE Films segment also contributed, with net sales increasing by 3.2% to $25.5 million.

Despite the overall revenue growth, Tredegar experienced a decline in profitability from continuing operations, with income dropping to $0.7 million from $2.6 million year-over-year. The decrease in profitability was attributed to higher costs of goods sold, which rose to $135.6 million from $115.1 million, and increased selling, general, and administrative expenses, which climbed to $20.7 million from $16.5 million. The gross profit margin also fell to 14.3% from 16.6%, reflecting challenges in managing variable manufacturing costs and a shift in sales mix.

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 sale generated $60 million in cash, with an additional $9.8 million received in early 2025 as part of post-closing settlements. 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 reported a 12% increase in sales volume in the Aluminum Extrusions segment, with 37.9 million pounds sold compared to 33.8 million pounds in the previous year. The company noted a 36% increase in net new orders, indicating strong demand, particularly in the solar market. However, the PE Films segment saw a slight decline in sales volume, attributed to fluctuations in customer demand for overwrap films. The company’s employee headcount remained stable at approximately 1,500, with ongoing efforts to manage costs and improve operational efficiency.

Looking ahead, Tredegar anticipates continued challenges related to raw material costs and market conditions, particularly in the Aluminum Extrusions segment. The company is focused on improving working capital management and expects to leverage its recent divestitures to enhance financial flexibility. The outlook remains cautious, with management emphasizing the need to navigate macroeconomic factors that could impact future performance.