Silgan tops Q3 profit estimates, misses on revenue

Silgan Holdings Inc. (SLGN) said on Oct. 29 that adjusted earnings for the third quarter ended Sept. 30 were $1.31 per diluted share, topping the $1.28 consensus estimate compiled by Finnhub. Revenue of $2.04 billion missed the $2.15 billion estimate.

The packaging maker reported the results in a press release furnished with an 8-K filing. It also changed its full-year 2026 adjusted EPS forecast, raising the low end of the range.

Here's how the company did:

• Adjusted EPS: $1.31 vs. $1.22 a year earlier, against $1.28 expected, according to Finnhub
• Net income: $105.0 million, or 99 cents per diluted share, vs. $113.3 million, or $1.06, a year earlier
• Revenue: $2.04 billion vs. $2.01 billion a year earlier, against $2.15 billion expected, according to Finnhub

Silgan is a supplier of rigid packaging with annual net sales of approximately $6.5 billion in 2025. It operates 119 manufacturing facilities in North and South America, Europe and Asia.

Adjusted EPS grew 7% from a year earlier. The company said the result was at the high end of the $1.21 to $1.31 range it gave for the quarter in July.

Net sales rose $31.5 million, or 2%, from a year earlier. The company said the increase came mainly from the contractual pass through of higher raw material costs to customers.

President and CEO Adam Greenlee said: “our operating performance and strong focus on costs delivered earnings at the high end of our estimated range.” He also said challenging consumer conditions had led to more muted volumes than the company anticipated during the quarter.

Segment results

Dispensing and Specialty Closures net sales were $699.2 million, up 1% from $690.4 million. Unit volumes were comparable to the prior year. Adjusted EBIT fell 2% to $111.2 million from $113.5 million, which the company said reflected less favorable price/cost, including the delayed pass through of inflation in manufacturing costs.

Metal Containers net sales were $1.17 billion, up $16.0 million, or 1%. Metal container volume was 4% below the prior year period, as lower volumes for soup markets were partly offset by higher volumes for fruit and vegetable and pet food markets. Adjusted EBIT rose 10% to $105.2 million from $95.8 million, driven mainly by more favorable price/cost including mix.

Custom Containers net sales were $166.8 million, up 4% from $160.1 million, even though volumes fell 8%. The company said the exit of lower margin business in 2025 under its footprint optimization plans reduced volumes by about 3%. Adjusted EBIT rose 3% to $23.7 million from $23.1 million.

Costs and charges

Income before interest and income taxes was $191.7 million, down $7.0 million from $198.7 million a year earlier. Corporate expense rose $4.4 million to $15.4 million from $11.0 million, which the company said was primarily related to corporate development activities.

The company incurred $10.3 million in costs attributed to announced acquisitions in the quarter. Rationalization charges were $17.1 million, compared with $7.2 million a year earlier.

Interest and other debt expense fell $2.7 million to $47.3 million, due to lower weighted average outstanding borrowings. The effective tax rate was 27.9%, compared with 24.3% a year earlier. Cash dividends were 21 cents per share, up from 20 cents.

2026 guidance

The company revised its full-year 2026 adjusted EPS estimate to a range of $3.83 to $3.93, from $3.73 to $3.93 in the range it gave in July. At the midpoint, the new range is a 4% increase over adjusted EPS of $3.72 in 2025. The company expects adjusted EBIT in 2026 to be higher than 2025 levels in all segments.

The company confirmed its estimate of free cash flow of approximately $450 million for 2026, compared with $445.2 million in 2025. It expects capital expenditures of approximately $310 million in 2026.

For the fourth quarter, the company estimated adjusted EPS of 76 cents to 86 cents. At the midpoint, that is a 21% increase over 67 cents in the fourth quarter of 2025.

Greenlee said: “we are on track to deliver adjusted EPS at the higher end of our initial guidance for 2026.”

The company will hold a conference call to discuss the results at 8:00 a.m. Eastern time on Oct. 29.