Tredegar (TG) investor relations material

Executive summary

• Net income from continuing operations for Q2 2026 was $6.0M ($0.17 per diluted share), up from $1.8M ($0.05 per diluted share) in Q2 2025, with ongoing operations net income at $6.4M ($0.18/share) versus $1.8M ($0.05/share) year-over-year.

• EBITDA from ongoing operations rose to $14.5M for Aluminum Extrusions (up from $9.3M) and was $5.8M for High Performance Films (down from $6.7M) in Q2 2026; consolidated EBITDA from ongoing operations increased to $14.2M from $10.0M.

• Transformation initiatives were launched to align priorities, streamline structure, and reduce costs, with expected benefits in the next 6–9 months.

Financial highlights

• Q2 2026 sales increased 20.7% year-over-year to $216.2M, with Aluminum Extrusions net sales up 24.1% and High Performance Films up 4.2%.

• Gross profit margin was 13.4% in Q2 2026 versus 13.6% in Q2 2025.

• SG&A and R&D expenses as a percentage of sales decreased to 9.4% from 11.6% year-over-year.

• Interest expense dropped to $0.5M from $1.8M year-over-year.

• Net cash provided by operating activities was $7.7M for the first six months of 2026, compared to net cash used of $2.9M in the prior year period.

Outlook and guidance

• Capital expenditures for 2026 are projected at $20M for Aluminum Extrusions and $2M for High Performance Films.

• The company expects the benefit from FIFO inventory positions and metal price trends to neutralize in Q3 2026.

• Management expects cost-reduction and operational-improvement initiatives to yield benefits within 6–9 months.

• Liquidity is expected to be sufficient for at least the next 12 months, with $17.2M in cash and $76M available under the ABL Facility as of June 30, 2026.