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Shares of Tredegar Corporation TG have gained 3.8% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 index’s 4.5% growth over the same time frame. Over the past month, the stock has gained 15.8% compared with the S&P 500’s 8.8% growth.
Tredegar reported first-quarter 2025 net income from continuing operations of 2 cents per share, down from 8 cents per share in the first quarter of 2024. On an adjusted basis, net income from ongoing operations fell to 10 cents per share from 14 cents per share a year ago. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The company’s net sales of $164.7 million denoted a 14.4% increase from $144 million in the year-ago quarter.
However, net income from continuing operations declined to $0.7 million from $2.6 million in the first quarter of 2024. On an adjusted basis, net income from ongoing operations fell to $3.6 million from $4.7 million a year ago.
Tredegar Corporation Price, Consensus and EPS Surprise
Tredegar Corporation price-consensus-eps-surprise-chart | Tredegar Corporation Quote
Segment Results Show Mixed Dynamics
Aluminum Extrusions (Bonnell Aluminum)
Net sales rose 17% year over year to $133.6 million, driven by a 12% increase in sales volume and the pass-through of higher metal costs. EBITDA from ongoing operations in this segment declined 27% to $9.2 million from $12.5 million in the prior-year quarter. The drop was attributed to an unfavorable shift in sales mix, higher input costs, increased labor and maintenance expenses, and elevated SG&A costs. Specialty products led the volume growth, jumping 52.8%, primarily due to increased shipments for solar panel applications and TSLOTS framing systems.
PE Films
The PE Films segment delivered an 8.9% improvement in EBITDA to $7.5 million, despite a 4% drop in sales volume. Net sales edged up 3.2% to $25.5 million, reflecting strength in surface protection films. The improvement in EBITDA was driven by favorable sales mix, pricing, and cost improvements in Surface Protection, which more than offset declines in overwrap films volume and pricing.
Management Commentary Highlights Recovery and Strategic Positioning
CEO John Steitz noted that the recovery in Bonnell Aluminum appears to be gaining traction, supported by a tenth consecutive quarterly increase in net new orders, which rose 36% year over year. Open orders reached 25 million pounds, the highest in two years. Steitz emphasized the benefit of new Section 232 tariffs, which raise the rate on aluminum imports from 10% to 25% and expand coverage to downstream products. These measures have started to restore market share previously lost to underpriced imports.