Executive Summary

Q3 2025 showed material sequential and year-over-year improvement: Sales rose to $194.9M from $179.1M in Q2 and $146.1M in Q3’24; diluted EPS (cont. ops) improved to $0.20 vs $0.05 in Q2 and $(0.10) in Q3’24, driven by stronger Bonnell (Aluminum Extrusions) volume/pricing and a favorable FIFO metal cost timing benefit .
Segment execution strengthened: Bonnell EBITDA from ongoing ops rose to $16.8M (vs $9.3M in Q2; $6.2M in Q3’24); PE Films EBITDA improved to $7.2M (vs $6.7M in Q2; $5.9M in Q3’24) .
Net debt fell meaningfully to $36.2M (from $52.8M in Q2 and $54.8M at YE’24); availability under the ABL was ~ $73M, with median daily liquidity ~$53M in Q3 (vs $54M in Q2) .
No formal revenue/EPS guidance; management reiterated 2025 capex/D&A by segment and flagged cost reduction opportunities for 2026. S&P Global consensus was not available for EPS or revenue, so beat/miss vs the Street cannot be assessed (S&P Global)* .

What Went Well and What Went Wrong

What Went Well
- Bonnell operational recovery and mix/price tailwinds: EBITDA from ongoing ops reached $16.8M; drivers included higher volume, favorable pricing, improved material yield, and a FIFO benefit ($4.3M) as Midwest aluminum transaction prices rose (Q3’25 avg $1.90/lb vs $1.56 in Q2’25 and $1.27 in Q3’24) .
- PE Films steady performance and cash generation: EBITDA from ongoing ops rose to $7.2M; Surface Protection volume +10.9% YoY and +16.1% QoQ; management: “PE films continued to perform well with strong cash generation” .
- Balance sheet progress: Net debt declined to $36.2M; total debt $49.5M; cash $13.3M; funds available to borrow under ABL ~ $73M; management emphasized evaluating cost reductions to benefit 2026 .
What Went Wrong
- Orders softness and tariff overhang: Net new orders averaged ~2.6M lbs/week in Q3 vs 3.1M in Q2 and 3.4M in Q1; management cited higher Section 232 tariffs (to 50%) not producing expected share shift due to importers’ apparent undervaluing of goods .
- Open orders normalized lower: 19M lbs at Q3-end vs 25M in Q2 and 16M in Q3’24, below the 2019 range of 21–27M, implying less backlog cushion into Q4 .
- Cost headwinds not fully abated: Wage/maintenance/utilities and onboarding-driven productivity continued to pressure Bonnell, and overwrap films saw lower volume/productivity, partly offsetting Surface Protection gains .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025	Street Consensus (S&P Global)
Sales ($USD Millions)	$146.1	$179.1	$194.9	N/A*
Diluted EPS – Continuing Ops ($)	$(0.10)	$0.05	$0.20	N/A*
Net Income – Continuing Ops ($USD Millions)	$(3.4)	$1.8	$7.1	N/A*
Consolidated EBITDA from Ongoing Ops ($USD Millions, non-GAAP)	$6.8	$10.0	$18.1	N/A*

Segment breakdown

Segment	KPI	Q3 2024	Q2 2025	Q3 2025
Aluminum Extrusions (Bonnell)	Net Sales ($USD M)	$115.7	$148.4	$162.5
	EBITDA from Ongoing Ops ($USD M)	$6.2	$9.3	$16.8
	Sales Volume (lbs, M)	34.6	40.7	41.3
PE Films	Net Sales ($USD M)	$24.9	$24.6	$25.9
	EBITDA from Ongoing Ops ($USD M)	$5.9	$6.7	$7.2
	Sales Volume (lbs, M)	9.6	9.8	9.7

Key operating/financial KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Net New Orders (avg lbs/week)	3.4	3.1	2.6
Open Orders (lbs, M, period-end)	25	25	19
Net Debt ($USD M)	$52.9	$52.8	$36.2
ABL Availability (approx, $USD M)	~$51	~$51	~$73
Median Daily Liquidity (ABL, $USD M)	$44	$54	$53

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Bonnell Aluminum Capex	FY 2025	$17M (Q2 guide)	$17M (Q3)	Maintained
Bonnell Depreciation	FY 2025	$15M (Q2 guide)	$15M (Q3)	Maintained (lower than $16M in Q1)
Bonnell Amortization	FY 2025	$2M (Q2 guide)	$2M (Q3)	Maintained
PE Films Capex	FY 2025	$2M (Q2 guide)	$2M (Q3)	Maintained
PE Films Depreciation	FY 2025	$5M (Q2 guide)	$5M (Q3)	Maintained
Business Dev. Expenses	Q4 2025	Not specified	Expect no significant expenses in Q4	Updated qualitative disclosure
Cost Reduction Program	2026	Not specified	Evaluating; benefits expected to begin in 2026	New qualitative disclosure

Earnings Call Themes & Trends

Note: No Q3 earnings call transcript was available in our corpus; themes below are drawn from Q1–Q3 press releases.

Topic	Previous Mentions (Q1 and Q2 2025)	Current Period (Q3 2025)	Trend
Tariffs/macro (Section 232)	Q1: Tariffs raised to 25% in March; regaining some share in specialty; Q2: further increased to 50% in June; demand pause and lower orders	Orders remained depressed; 20% decline in net new orders post-50% tariff and concerns over import undervaluation; pricing actions taken	Negative for order intake; price/mix partially offsets
Data center/AI-related demand (TSLOTS framing)	Q1: TSLOTS growth; Q2: TSLOTS increased sequentially and YoY	Continued YoY growth tied to data containment/data centers	Positive momentum
Solar and specialty products	Q1: Strong solar shipments, share regains; Q2: Solar strength continued	Specialty shipments (incl. solar) up YoY; regaining share vs imports	Positive
Orders/backlog	Q1: Open orders 25M lbs; Q2: 25M lbs; first decline in net new orders after 10 increases	Open orders fell to 19M; net new orders down 16% QoQ and 5% YoY	Softening
PE Films demand	Q1: Surface Protection strong; overwrap down; moderation expected	Surface Protection +10.9% YoY (+16.1% QoQ), moderation expected to continue; overwrap down 11% YoY	Mixed: SP strong; overwrap weaker
Costs/operations (ERP/MES, productivity)	Q1–Q2: Onboarding/maintenance/weatherevents pressured costs; inefficiencies in Q2 resolved into Q3	Bonnell inefficiencies resolved; wage/maintenance/utilities remain higher	Improving operations; cost inflation persists
Liquidity/leverage	Q1–Q2: ABL refi to 2030; availability ~$51M in Q1–Q2	Availability ~$73M; net debt down to $36.2M	Improving balance sheet
Regulatory/legal	Q1–Q2: Aluminum Extruders Trade Case fees noted	Ongoing (smaller in Q3)	Stable/lessening expense

Management Commentary

“Both business units had a good quarter… third quarter financial results improved from second quarter, consistent with the resolution of previously disclosed manufacturing inefficiencies… tariffs haven't had the expected favorable shift of market share to U.S. aluminum extrusion producers due to the apparent undervaluing of goods by importers” – John Steitz, CEO .
“PE films continued to perform well with strong cash generation. Net debt declined from $54.8 million at the beginning of the year to $36.2 million on September 30, 2025. To help ensure that we are in the best position to maximize value for shareholders, we are evaluating cost reduction opportunities that should begin to be realized in 2026.” – John Steitz, CEO .

Other Q3-period disclosure: CFO D. Andrew Edwards to retire effective Dec 31, 2025, with transition planning underway .

Q&A Highlights

No Q3 earnings call transcript was available in our document set; Q&A themes could not be extracted.

Estimates Context

S&P Global consensus for TG’s Q3 2025 EPS and revenue was not available in our data pull, which prevents a formal beat/miss assessment (S&P Global)*. The company’s reported Q3 sales were $194.9M and diluted EPS from continuing operations were $0.20 .

Key Takeaways for Investors

Sequential operating inflection: Bonnell EBITDA nearly doubled QoQ on volume/pricing/yield and a favorable FIFO tailwind; sustainability into Q4 depends on order trends as backlog normalized lower .
Demand headwinds from tariffs: Elevated Section 232 tariffs (50%) coincide with weaker net new orders and suggest imports are still competing via undervaluation; policy trajectory remains a swing factor .
PE Films is a stabilizer: Surface Protection continues to perform; mix offsets overwrap softness; moderation expected but profitability is holding -.
Deleveraging/liquidity progress: Net debt down to $36.2M with ~$73M ABL availability; balance sheet flexibility supports execution amid uncertain orders .
2025 investment plans intact; 2026 cost actions: Capex/D&A guidance unchanged QoQ; cost reductions under evaluation to begin benefiting in 2026 .
Watch near-term catalysts: Any stabilization in weekly net new orders, tariff enforcement changes reducing import undervaluation, and updates on cost reduction initiatives could drive sentiment .

Footnote: *Values retrieved from S&P Global.

TREDEGAR CORP (TG)·Q3 2025 Earnings Summary