Silgan Holdings Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 29 April 2026: press release. Guidance figures: 2 raised, 1 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose on pass-through: Net sales were $1.56 billion, up $94.6 million or 6%, the company reported, mainly from contractual pass-through of higher raw material costs. Source
• Adjusted EPS $0.78 versus $0.82: Diluted EPS was $0.60 against $0.63. Adjusted diluted EPS was $0.78 against $0.82, with adjustments adding $0.18 per share. Source
• Dispensing profit dipped on mix and cost: Dispensing and Specialty Closures Adjusted EBIT was $96.1 million, down $3.1 million, on less favorable volume/mix and price/cost. Source
• Severe weather cut dispensing output: Severe weather in the first quarter disrupted dispensing production. Management said the lost production is expected to be recovered over the rest of 2026. Source
• Operating cash use rose year on year: Net cash used in operating activities was $799.6 million, against $683.4 million a year earlier. Receivables absorbed $575.6 million of cash in the quarter. Source

“Silgan delivered another quarter of strong results in the first quarter that were at the high end of our expected range, as our business continues to outpace the trends in the markets we serve.”

Adam Greenlee, President and CEO

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 adjusted diluted EPS estimate raised to $3.73 to $3.93, from $3.70 to $3.90. Source
• New guidance: Second-quarter 2026 adjusted diluted EPS estimate of $0.92 to $1.02 provided. Source
• Guidance kept: Free cash flow estimate for 2026 confirmed at approximately $450 million. Source
• Guidance kept: Capital expenditures for 2026 expected at approximately $310 million, the same figure as the prior release. Source

Quarter results and drivers

• Net sales rose on pass-through: Net sales were $1.56 billion, up $94.6 million or 6%, the company reported, mainly from contractual pass-through of higher raw material costs. Source
• EBIT fell slightly year on year: EBIT was $126.6 million, down $3.9 million. Dispensing and Specialty Closures contributed $77.3 million, Metal Containers $45.0 million and Custom Containers $19.9 million. Source
• Adjusted EPS $0.78 versus $0.82: Diluted EPS was $0.60 against $0.63. Adjusted diluted EPS was $0.78 against $0.82, with adjustments adding $0.18 per share. Source

Segment results

• Dispensing profit dipped on mix and cost: Dispensing and Specialty Closures Adjusted EBIT was $96.1 million, down $3.1 million, on less favorable volume/mix and price/cost. Source
• Dispensing sales rose on currency: Dispensing and Specialty Closures net sales were $685.3 million, up 2%, helped by raw material pass-through and currency, partly offset by lower volume and mix. Source
• Metal Containers profit held flat: Metal Containers Adjusted EBIT was $49.8 million against $49.6 million, as higher volumes were partly offset by less favorable price/cost. Source
• Custom Containers sales and profit fell: Custom Containers net sales were $151.1 million, down 10%. Adjusted EBIT was $21.7 million against $24.6 million, mainly on lower volumes. Source

“Our Dispensing business remains advantaged in the marketplace as our unique combination of new product innovation, operational excellence, and our highly focused customer partnership model continue to be rewarded with incremental growth opportunities.”

Adam Greenlee, President and CEO

Products and customers

• Weener integration adds room: Management said the Weener acquisition is fully integrated, which it sees as adding room for more innovation and commercial success in dispensing. Source
• Custom Containers sees customer growth: Management said it sees added potential for long-term growth with new and existing Custom Containers customers. Source
• Fruit and vegetable volumes shifted: Metal Containers fruit and vegetable volumes were lower, which management attributed to prebuy activity in the fourth quarter of 2025. Source

Costs, margins and pricing

• Metal price/cost including mix weighed: In Metal Containers, price/cost including mix was less favorable, tied to higher pet food volumes and lower fruit and vegetable volumes from prebuying. Source
• European closures sold costlier inventory: Dispensing price/cost also worsened because European metal closures sold higher-cost inventory, against a prior-year benefit from lower-cost inventory sales. Source
• Rationalization charges fell year on year: Rationalization charges were $9.0 million against $11.0 million. The company excludes these charges from its adjusted results. Source
• Interest expense eased on lower rates: Interest and other debt expense before debt extinguishment was $41.4 million, down $1.5 million, on lower weighted average interest rates. Source

“Our Metal Containers business continued to show strong growth in the quarter with double digit volume growth in pet food products despite significant inflation in raw material costs as a result of steel and aluminum tariffs.”

Adam Greenlee, President and CEO

Demand, weather and consumer conditions

• Severe weather cut dispensing output: Severe weather in the first quarter disrupted dispensing production. Management said the lost production is expected to be recovered over the rest of 2026. Source
• Custom destocking concluded in quarter: Customer destocking in Custom Containers ended during the first quarter. Management said its teams managed costs to limit the effect on profit. Source
• Consumer sentiment mixed, geopolitics uncertain: Management cited evolving market trends, mixed consumer sentiment and renewed geopolitical uncertainty, while describing the business as resilient in the quarter. Source

Cash flow, capital and shareholder returns

• Operating cash use rose year on year: Net cash used in operating activities was $799.6 million, against $683.4 million a year earlier. Receivables absorbed $575.6 million of cash in the quarter. Source
• Capital expenditures little changed: Capital expenditures were $82.4 million, against $82.9 million in the first quarter of 2025. Source
• Dividend per share rose to $0.21: Cash dividends were $0.21 per common share against $0.20. Dividends paid on common stock were $22.8 million against $21.9 million. Source
• Total debt above year-end level: Current and long-term debt was $4,660.4 million, against $4,346.8 million at December 31, 2025. Cash and cash equivalents were $435.4 million. Source
• Financing inflow from net borrowings: Net borrowings and other financing activities provided $354.0 million, against $389.9 million a year earlier. Source

Strategy and investment

• Capital discipline tied to shareholder value: Management tied shareholder value creation in 2026 and beyond to its teams, portfolio and disciplined capital deployment model. Source
• Innovation and customer model set apart: Management said market-leading innovation, a differentiated customer partnership model and operational excellence set the company apart in its markets. Source
• Long-term growth initiatives in focus: Management said the team is focused on executing the 2026 plan and on long-term strategic growth initiatives. Source

Adjusted measures and tax

• Amortization and debt costs excluded: Adjustments of $19.5 million net of tax included $16.2 million of acquired intangible amortization, with a $1.0 million loss on early debt extinguishment also excluded. Source
• Pension income excluded from adjusted results: The company excludes other pension income from its U.S. plans, $1.0 million in the quarter, because it views that income as not reflective of operations. Source
• Effective tax rate rose to 26.5%: The effective tax rate was 26.5% against 23.8%. The adjusted rate was 25.5%, which management attributed to geographic mix of profit. Source

Coming up, as management said on 29 April 2026

• Weather-affected output to be recovered: Management said lost production from first-quarter weather is expected to be recovered over the rest of 2026. Source
• Fruit and vegetable pack timing normalizes: Second-quarter Metal Containers comparison reflects a more normal timing of fruit and vegetable pack shipments in 2026, which management does not expect to change full-year pack volumes. Source

Figures management reported

Risks management discussed

• Operational: Management flagged significant second-quarter cost inflation, mainly from resin, as the reason Dispensing Adjusted EBIT is expected to be comparable to prior year. Source
• Regulatory: Steel and aluminum tariffs were cited as the cause of raw material cost inflation in Metal Containers. Source
• External: Management cited renewed geopolitical uncertainty as a condition the business operated within during the quarter. Source

Earlier plans management reported on

• On track: Management said the business is on track to deliver its increased financial targets for the year. Source
• Met: Management described the lower Custom Containers volumes as expected, tied to exiting lower-margin business and footprint plans. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.