Silgan Holdings Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the third quarter of 2026 were $2.04 billion, an increase of 2% compared to $2.01 billion in the third quarter of 2025.
• Net income for the third quarter of 2026 was $105.0 million, or $0.99 per diluted share, compared to $113.3 million, or $1.06 per diluted share, in the third quarter of 2025.
• Adjusted net income per diluted share for the third quarter of 2026 was $1.31, a 7% increase year-over-year compared to $1.22 in the third quarter of 2025.
• Income before interest and income taxes (EBIT) for the third quarter of 2026 was $191.7 million, a decrease of $7.0 million compared to $198.7 million in the prior year quarter.
• Adjusted EBIT for the third quarter of 2026 was $235.0 million, compared to $221.4 million in the third quarter of 2025.
• Interest and other debt expense for the third quarter of 2026 was $47.3 million, a decrease of $2.7 million compared to $50.0 million in the prior year quarter.
• Corporate expense for the third quarter of 2026 was $15.4 million, an increase of $4.4 million compared to $11.0 million in the prior year quarter.
• The effective tax rate was 27.9% for the third quarter of 2026, compared to 24.3% in the prior year quarter; the adjusted effective tax rate was 26.4% in 2026 versus 24.2% in 2025.
• Cash and cash equivalents were $325.0 million as of September 30, 2026, compared to $389.2 million as of September 30, 2025.
• Total debt (current and long-term) was $4.548 billion as of September 30, 2026, compared to $4.947 billion as of September 30, 2025.
• Cash dividends per common share were $0.21 in the third quarter of 2026, compared to $0.20 in the third quarter of 2025.

Guidance and Future Outlook:

• Full-year 2026 adjusted net income per diluted share guidance was raised to a range of $3.83 to $3.93, up from the previous range of $3.73 to $3.93, representing a 4% increase at the midpoint over 2025's $3.72.
• Full-year 2026 free cash flow is confirmed at approximately $450 million, compared to $445.2 million in 2025.
• Full-year 2026 capital expenditures are expected to be approximately $310 million.
• Fourth quarter 2026 adjusted net income per diluted share is estimated in the range of $0.76 to $0.86, a 21% increase at the midpoint over the $0.67 recorded in the fourth quarter of 2025.
• The Company anticipates earnings and free cash flow growth in 2027.
• Adjusted EBIT in 2026 is expected to be higher than 2025 levels across all segments.

Business Segments and Product Lines:

• Dispensing and Specialty Closures: Net sales were $699.2 million, a 1% increase year-over-year. Adjusted EBIT was $111.2 million, a 2% decrease. Unit volumes were comparable, with mid-single digit growth in fragrance dispensing products and double-digit growth in North American pharma dispensing products, offset by softer demand in food and beverage closures in Europe and North America.
• Metal Containers: Net sales were $1.17 billion, a 1% increase year-over-year. Adjusted EBIT increased 10% to $105.2 million. Metal container volume was 4% below the prior year, driven by lower soup market volumes, partially offset by higher volumes in fruit and vegetable and pet food markets.
• Custom Containers: Net sales were $166.8 million, a 4% increase year-over-year. Adjusted EBIT increased 3% to $23.7 million. Volumes decreased 8%, impacted by the exit of lower-margin business in 2025 (footprint optimization) which reduced volumes by approximately 3%.

Market and Competitive Landscape:

• The Company reported double-digit growth in dispensing products for pharma markets in North America and mid-single digit growth in fragrance markets.
• The Company noted more muted consumer demand conditions affecting volumes in food and beverage closures in Europe and North America, as well as softer volumes in soup markets.
• Silgan operates 119 manufacturing facilities in North and South America, Europe, and Asia.
• The Company describes itself as a leading supplier of sustainable rigid packaging solutions for essential consumer goods.

Risks and Challenges:

• Challenging consumer conditions led to more muted volumes than initially anticipated during the quarter.
• Less favorable price/cost dynamics in the Dispensing and Specialty Closures segment were caused by delayed pass-through of inflation in manufacturing costs (including freight and surcharges) and less favorable manufacturing efficiency.
• Costs attributed to announced acquisitions were $10.3 million in the third quarter of 2026.
• Rationalization charges were $17.1 million in the third quarter of 2026, compared to $7.2 million in the prior year quarter.

Management Commentary and Tone:

• Adam Greenlee, President and CEO, stated the Company is embarking on a "transformative portfolio acceleration" through the acquisition of Trivium and remains committed to competing and winning in its markets.
• Management expressed confidence in delivering adjusted EPS at the higher end of the initial guidance for 2026 despite market conditions.
• The CEO highlighted the Company's ability to outperform end markets and grow strategic partnerships through disciplined capital deployment and execution.
• Management noted that the strength of results exhibited the resilience of the business and the power of the operating model.

Other Key Points:

• The Company announced a transformative portfolio acceleration through the acquisition of Trivium.
• Costs attributed to announced acquisitions totaled $10.3 million in the third quarter of 2026.
• The Company confirmed its free cash flow estimate for 2026 at approximately $450 million.
• No share repurchases were made in the third quarter of 2026.