It has been about a month since the last earnings report for Silgan Holdings (SLGN) . Shares have added about 4.5% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Silgan due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It tu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 06-1269834 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 4 Landmark Square Stamford, Connecticut 06901 (Address of principal executive offices) (Zip Code) For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...

Core Insights - Silgan Holdings Inc. reported record adjusted earnings of 82 cents per share for Q1 2025, exceeding the Zacks Consensus Estimate of 78 cents, marking a 19% year-over-year increase [1] - Total revenues for Q1 2025 reached $1.467 billion, up from $1.317 billion in the prior year, although it slightly missed the Zacks Consensus Estimate of $1.471 billion by 0.29% [2] - The company expects adjusted EPS for 2025 to be between $4.00 and $4.20, with anticipated volume improvements across all segments [7] Financial Performance - The cost of goods sold increased by 9.4% year over year to $1.2 billion, while gross profit rose 21% to $270 million, resulting in a gross margin of 18.4%, up from 17% in the prior year [2] - Selling, general and administrative expenses were $129 million, reflecting a 28.5% year-over-year increase, with adjusted operating income at $158.3 million compared to $135.5 million in the previous year [3] - The operating margin improved to 10.8% from 10.3% in the prior year [3] Segment Performance - The Dispensing and Specialty Closures segment saw revenues rise 25.2% year over year to $671 million, driven by the Weener acquisition and higher organic volume [4] - The Metal Containers segment's revenues increased by 1.8% to $628 million, with adjusted operating income rising 7.7% to $69 million [5] - In the Custom Containers segment, revenues were $167 million, up from $164 million, with adjusted operating income increasing to $33.3 million from $29.3 million [5] Cash Flow and Position - At the end of Q1 2025, the company had cash and cash equivalents of $353 million, down from $823 million at the end of 2024, with cash used in operating activities amounting to $683 million compared to $548 million in Q1 2024 [6] Stock Performance - Silgan Holdings' shares have increased by 18.7% over the past year, contrasting with a 6.1% decline in the industry [8]

Financial Performance - Silgan Holdings reported record net sales of $1.47 billion for Q1 2025, an increase of 11% from $1.32 billion in Q1 2024[2][7] - Net income for Q1 2025 was $68.0 million, or $0.63 per diluted share, compared to $55.2 million, or $0.52 per diluted share in Q1 2024[2][24] - Adjusted net income per diluted share increased 19% to a record $0.82 in Q1 2025, up from $0.69 in Q1 2024[3] - Net sales for the quarter ended March 31, 2025, reached $1,466.7 million, a 11.3% increase from $1,317.0 million in 2024[30] - Net income for the quarter was $68.0 million, up 23.1% from $55.2 million in the same quarter of 2024[33] - Adjusted diluted EPS for the quarter was $0.82, compared to $0.69 in 2024, reflecting a 18.8% increase[33] - Total adjusted EBITDA for the quarter was $222.2 million, a 17.7% increase from $188.7 million in 2024[35] Segment Performance - The Dispensing and Specialty Closures segment achieved net sales of $671.1 million, a 25% increase from $535.9 million in the prior year[11] - Adjusted EBIT for the Dispensing and Specialty Closures segment rose to $99.2 million, an increase of 27.5% from $77.8 million in Q1 2024[12] - The Metal Containers segment reported net sales of $628.4 million, a 2% increase from $617.1 million in Q1 2024[13] - Custom Containers segment net sales increased by 2% to $167.2 million, driven by higher volumes and new business awards[15] Future Outlook - Silgan confirmed its 2025 adjusted net income per diluted share estimate in the range of $4.00 to $4.20, representing a 13% increase at the midpoint over 2024[17] - The company expects free cash flow of approximately $450 million in 2025, a 15% increase from $391.3 million in 2024[18] - Silgan anticipates higher adjusted EBIT across all segments for Q2 2025, with an estimated adjusted net income per diluted share of $0.98 to $1.08, a 17% increase from Q2 2024[19] Cash Flow and Capital Expenditures - Cash flows used in operating activities totaled $(683.4) million, compared to $(547.8) million in 2024, indicating increased cash outflow[28] - Capital expenditures for the quarter were $(82.9) million, up from $(75.3) million in 2024[28] - The company reported a net cash provided by financing activities of $283.0 million, slightly down from $292.7 million in 2024[28] - The balance of cash and cash equivalents at the end of the period was $353.0 million, compared to $308.6 million at the end of 2024[28] Tax and Income Estimates - The adjusted tax rate for the quarter was 23.8%, down from 24.5% in 2024[33] - The company anticipates U.S. GAAP net income for 2025 to be between $91.1 million and $101.8 million, with an estimated diluted EPS of $0.85 to $0.95[37] Non-GAAP Financial Measures - The Company presented adjusted net income per diluted share as a Non-GAAP financial measure, excluding acquired intangible asset amortization expense and other pension income, which management believes provides a better evaluation of operating results[38] - Adjusted EBIT was also presented as a Non-GAAP financial measure, excluding similar costs and including equity in earnings of affiliates, allowing for a more appropriate evaluation of operating performance[39] - The Company views rationalization costs as investments for future savings rather than period costs, impacting the evaluation of operating results[39] - Adjusted EBITDA was introduced, defined as Adjusted EBIT plus depreciation, further aiding in the assessment of operating results[40] - The Company’s U.S. pension plans are significantly overfunded, leading management to exclude certain pension income from operational performance evaluations[39] - Costs attributed to announced acquisitions are considered part of the acquisition process and not indicative of ongoing cost structure, affecting financial metrics[38] - The write-up of acquired inventory under purchase accounting is viewed as a non-cash charge, not reflective of ongoing performance[38] - The loss on early extinguishment of debt is treated as part of the cost of prepayment and not indicative of ongoing costs, influencing financial assessments[38] - Non-GAAP financial measures should not be considered in isolation and must be read in conjunction with GAAP financial statements[40] - The Company emphasizes that these Non-GAAP measures may not be comparable to similar measures of other companies, highlighting the uniqueness of its financial reporting[40]

Financial Data and Key Metrics Changes - The company reported net sales of approximately $1.5 billion, an increase of 11% from the prior year, primarily driven by the Vayner acquisition and organic volume growth across all segments [15][16] - Adjusted EBIT for the quarter increased by 17% year-over-year, resulting in record adjusted EBIT in the dispensing and specialty closures and custom container segments [15][17] - Adjusted EPS reached $0.82, a 19% increase from the prior year quarter [15] Business Line Data and Key Metrics Changes - The dispensing and specialty closures segment saw a 25% increase in sales, driven by the Vayner acquisition and a 4% increase in volume mix [16] - Metal containers segment sales increased by 2%, with a 4% increase in unit volumes, primarily due to growth in pet food and soup products [17] - Custom containers experienced a 2% increase in sales, with adjusted EBIT rising by 22% compared to the previous year [17] Market Data and Key Metrics Changes - The company expects mid single-digit growth in dispensing and specialty closures, driven by high single-digit growth in dispensing products and improved mix [12] - Metal containers are projected to grow by a mid single-digit percentage, primarily from pet food and a partial recovery in fruit and vegetable pack volumes [12] - Custom containers are also expected to grow by a mid single-digit percentage, supported by new business awards [12] Company Strategy and Development Direction - The company emphasizes a customer intimacy model that sets it apart in the marketplace, focusing on innovation and meeting evolving customer needs [12][13] - The integration of the Vayner acquisition is on track, with expectations for continued growth and synergy capture [10][34] - The company remains confident in its ability to execute its strategic growth initiatives and deliver record results in 2025 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid single-digit volume growth across all segments despite potential economic uncertainties [23][31] - The company noted that approximately 75% of its products fall into the consumer staples category, which are less affected by economic fluctuations [30] - Management highlighted strong relationships with customers and a return to transparency in supply chains, contributing to a positive outlook [30][31] Other Important Information - The company confirmed its estimate of adjusted EPS for 2025 in the range of $4 to $4.2, representing a 13% increase at the midpoint compared to 2024 [18] - Free cash flow is estimated at approximately $450 million for the year, a 15% increase from the prior year [18] - The company plans to maintain a leverage ratio towards the lower end of its target range by year-end, assuming no new acquisitions [49] Q&A Session Summary Question: Concerns about volume guidance amidst economic uncertainty - Management reiterated confidence in mid single-digit volume growth across segments, citing strong performance in dispensing products and pet food [23][25][30] Question: Insights on the Vayner acquisition - Management expressed satisfaction with the Vayner acquisition, confirming it aligns with their growth expectations and customer service model [34][35] Question: Changes in customer purchasing patterns due to tariffs - Management noted minimal impact from tariffs, emphasizing that most of their volume is in pet food, which is supported by North American suppliers [27][46] Question: Volume expectations for metal containers in Q2 - Management confirmed expectations for flat volume in metal containers for Q2, with growth anticipated in pet food and a stronger performance in the back half of the year [51][54] Question: Free cash flow and capital allocation priorities - Management confirmed free cash flow guidance of $450 million, with M&A as the priority for capital allocation, while also considering share buybacks if acquisition opportunities do not materialize [108][112]

Financial Data and Key Metrics Changes - The company reported net sales of approximately $1.5 billion, an increase of 11% from the prior year, driven primarily by the Vayner acquisition and organic volume growth across all segments [13][14] - Adjusted EBIT for the quarter increased by 17% year over year, resulting in record adjusted EBIT in the dispensing and specialty closures and custom container segments [13][15] - Record adjusted EPS of $0.82 increased by $0.13 or 19% from the prior year quarter [13][14] Business Line Data and Key Metrics Changes - In the dispensing and specialty closures segment, sales increased by 25% year over year, primarily due to the Vayner acquisition, which contributed approximately $126 million during the quarter [14] - The metal containers segment saw a 2% increase in sales, driven by a 4% increase in unit volumes, particularly in pet food and soup products [15] - Custom containers experienced a 2% increase in sales, with adjusted EBIT rising by 22% compared to the first quarter of 2024, attributed to favorable price cost and higher volumes [15] Market Data and Key Metrics Changes - The company expects mid single-digit volume growth in dispensing and specialty closures, metal containers, and custom containers for 2025, driven by strong demand in pet food and a partial recovery in fruit and vegetable pack volumes [11][12] - The pet food market continues to grow at a mid-single-digit rate, supported by pet population growth and premiumization trends [9][10] Company Strategy and Development Direction - The company emphasizes a customer intimacy model that sets it apart in the marketplace, focusing on innovation and meeting evolving customer needs [11][12] - The integration of the Vayner acquisition is on track, with expectations for continued growth and synergy capture [9][32] - The company remains confident in its ability to execute its strategic growth initiatives and deliver record results in 2025 [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit volume growth across all segments despite potential macroeconomic uncertainties [23][30] - The company highlighted strong relationships with customers and a focus on non-discretionary consumer staples, which provide stability in demand [30][42] - Management noted that the ongoing benefits of cost reduction programs and strong customer relationships support a positive outlook for the remainder of 2025 [17][30] Other Important Information - The company confirmed its estimate of adjusted EPS for 2025 in the range of $4 to $4.2, representing a 13% increase at the midpoint compared to 2024 [16] - Free cash flow is estimated at approximately $450 million for 2025, a 15% increase from the prior year [16][108] Q&A Session Summary Question: Concerns about volume guidance amidst economic uncertainty - Management reiterated confidence in mid-single-digit volume growth across segments, citing strong performance in dispensing products and pet food [23][30] Question: Insights on the Vayner acquisition - Management expressed satisfaction with the Vayner acquisition, confirming it aligns with growth expectations and customer service models [31][32] Question: Impact of tariffs and customer purchasing patterns - Management indicated minimal impact from tariffs, with no unusual buying activity observed, particularly in the pet food segment [27][44] Question: Changes in customer new product activity - Management noted ongoing innovation and new product launches, particularly in the soup category, which supports confidence in volume growth [39][40] Question: Expectations for metal containers in Q2 - Management expects flat volume for metal containers in Q2, with growth anticipated in pet food and a stronger performance in the back half of the year [49][52] Question: Free cash flow and capital allocation priorities - Management confirmed free cash flow guidance of $450 million for 2025, with a preference for M&A as the primary use of cash flow [108][111]

Silgan Holdings (SLGN) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.13%. A quarter ago, it was expected that this packaging products supplier would post earnings of $0.82 per share when it actually produced earnings of $0.85, delivering a surprise of 3.66%.Over the last four quar ...

Company Overview - Silgan Holdings is a leading supplier of rigid packaging for consumer goods, operating 113 manufacturing facilities across North and South America, Europe, and Asia [12] - The company is the largest metal-container supplier for food products in North America, with a diverse product line including steel and aluminum containers, custom-designed plastic containers, and various closures for food and beverage products [12] Investment Ratings - Silgan Holdings has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [13] - The company is considered a top pick for growth investors, with a Growth Style Score of A, forecasting year-over-year earnings growth of 13.5% for the current fiscal year [13] Earnings Estimates - In the last 60 days, four analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.02 to $4.11 per share [13] - Silgan Holdings has an average earnings surprise of 1.5%, suggesting a positive trend in earnings performance [13] Conclusion - With a strong Zacks Rank and top-tier Growth and VGM Style Scores, Silgan Holdings is recommended for investors' consideration [14]

Sales Performance - Net sales for the dispensing and specialty closures business reached $2.3 billion in 2024, representing a compound annual growth rate of approximately 12.1% since 2003[163]. - Net sales for metal containers decreased by approximately 8% in 2024 compared to 2023, totaling $2.9 billion, primarily due to lower volumes in the fruit and vegetable markets[165]. - Custom containers net sales increased to $649.6 million in 2024, reflecting a compound annual growth rate of approximately 5.5% since 1987[165]. - Consolidated net sales for 2024 totaled $5.85 billion, a decrease from $5.99 billion in 2023[175]. - Consolidated net sales for 2024 were $5.9 billion, a 2.2% decrease from 2023, primarily due to lower organic volumes and unfavorable product mix[176]. - In 2024, net sales for the dispensing and specialty closures segment increased by $83.0 million, or 3.7%, compared to 2023, primarily due to the acquisition of Weener Packaging and a favorable product mix[194]. - In 2024, net sales for the metal containers segment decreased by $240.1 million, or 7.6%, compared to 2023, mainly due to lower raw material costs and a less favorable product mix[199]. - In 2024, net sales for the custom containers segment increased by $23.6 million, or 3.8%, compared to 2023, driven by higher volumes from new business awards[204]. Financial Performance - The gross profit margin improved to 17.3% in 2024, compared to 16.6% in 2023[174]. - Gross profit margin increased to 17.3% in 2024, up 0.7 percentage points from 16.6% in 2023[177]. - Income before interest and income taxes decreased by $80.3 million in 2024, with a margin decline to 8.8% from 9.9% in 2023[178]. - Adjusted EBIT for 2024 was $658.2 million, slightly down from $660.5 million in 2023[193]. - Adjusted EBIT for the dispensing and specialty closures segment increased by $25.0 million in 2024, with the adjusted EBIT margin rising to 15.9% from 15.3%[196]. - Adjusted EBIT for the metal containers segment decreased by $40.0 million in 2024, with the adjusted EBIT margin falling to 8.4% from 9.0%[201]. - Adjusted EBIT for the custom containers segment increased by $17.7 million in 2024, with the adjusted EBIT margin rising to 12.5% from 10.1%[206]. Cost Management - The company achieved approximately $20 million in cost savings in 2024 from a comprehensive cost reduction initiative, with an expectation of an additional $30 million in 2025[166]. - Selling, general and administrative expenses rose to 7.5% of net sales in 2024, an increase of 1.1 percentage points compared to 6.4% in 2023, with a total increase of $53.7 million[177]. - Rationalization charges in 2024 amounted to $59.5 million, primarily related to plant closings as part of a cost reduction initiative[178]. - The Obligor Group recognized rationalization charges of $59.5 million in 2024 as part of a comprehensive cost reduction initiative, which included closing three manufacturing facilities[241]. - The company continually evaluates cost reduction opportunities, with expected remaining cash expenditures for rationalization plans at $10.9 million[246]. Debt and Financing - The company's interest and other debt expense as a percentage of income before interest and income taxes was 32.3% in 2024, up from 29.1% in 2023[172]. - Interest and other debt expense for 2024 was $167.4 million, a decrease of $5.9 million from $173.3 million in 2023[179]. - As of December 31, 2024, the company had total consolidated indebtedness of $4.15 billion and cash and cash equivalents of $822.9 million[218]. - In October 2024, the company borrowed €868.0 million to fund the acquisition of Weener Packaging[209]. - The company has $1.5 billion available under a multi-currency revolving loan facility, with $1.48 billion available after accounting for outstanding letters of credit of $20.5 million as of December 31, 2024[219]. - Total contractual cash obligations as of December 31, 2024, amount to $5.15 billion, with $960.4 million due within one year[228]. - The company had $4.15 billion of outstanding indebtedness as of December 31, 2024, with $1.8 billion bearing interest at floating rates[234]. - The company has $300.0 million aggregate notional principal amount of U.S. dollar interest rate swap agreements outstanding, maturing in 2026[234]. - A one percentage point change in interest rates for variable rate indebtedness would have impacted 2024 interest expense by approximately $11.3 million[258]. Tax and Compliance - The effective tax rate improved to 20.7% in 2024 from 22.8% in 2023, benefiting from tax restructuring activities[180]. - The company is in compliance with all financial and operating covenants and expects to maintain compliance in 2025[227]. Investments and Acquisitions - The company plans to pursue further acquisition opportunities in the consumer goods packaging market to enhance growth[161]. - The acquisition of Weener Packaging in Q4 2024 contributed to net sales, partially offsetting declines in other segments[176]. Cash Flow and Capital Expenditures - In 2024, cash provided by operating activities was $721.9 million, with net capital expenditures and other investing activities totaling $254.7 million[215]. - The company plans capital expenditures of approximately $300.0 million in 2025, with principal payments of $712.4 million due in 2025 and $1.3 billion in 2028[227]. - Approximately 12% of annual net sales for 2024 and 2023 were subject to customer-based supply chain financing (SCF) arrangements, improving days sales outstanding by approximately 24 days for 2024[222]. - Outstanding trade accounts payables subject to the supplier SCF program were approximately $303.7 million as of December 31, 2024, with 12% of Cost of Goods Sold in 2024 and 2023 subject to this program[223]. Pension and Investments - The company’s U.S. pension plans are overfunded, with plan assets approximately 137% of projected benefit obligations as of December 31, 2024[248]. - The company recorded income from equity method investments of $106.1 million for the year ended December 31, 2024[240]. - The company received dividends from other subsidiary companies amounting to $12.3 million for the year ended December 31, 2024[240].

Company Overview - Silgan Holdings is a leading supplier of rigid packaging for consumer goods, operating 113 manufacturing facilities across North and South America, Europe, and Asia [13] - The company is the largest metal-container supplier for food products in North America, with a diverse product line including steel and aluminum containers, custom-designed plastic containers, and various closures for food and beverage products [13] Investment Analysis - Silgan Holdings currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a solid investment potential [14] - The company has a Momentum Style Score of B, with shares increasing by 3.5% over the past four weeks, suggesting positive market sentiment [14] - For fiscal 2025, three analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.01 to $4.11 per share [14] - Silgan Holdings has an average earnings surprise of 1.5%, indicating a history of exceeding earnings expectations [14] Investment Recommendation - With a strong Zacks Rank and favorable Momentum and VGM Style Scores, Silgan Holdings is recommended for investors' consideration [15]