[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Silgan Holdings Inc.'s unaudited condensed consolidated financial statements for Q1 2025, detailing balance sheets, income, cash flows, and equity with explanatory notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$8.77 billion** from **$8.58 billion** at year-end 2024, driven by higher trade accounts receivable and inventories, while total stockholders' equity grew to **$2.08 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | Dec. 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $353,030 | $822,854 | $308,641 | | Trade accounts receivable, net | $1,012,790 | $594,279 | $946,051 | | Inventories | $1,055,281 | $928,056 | $957,240 | | Total current assets | $2,597,470 | $2,522,683 | $2,376,371 | | Goodwill | $2,373,376 | $2,316,031 | $1,997,285 | | **Total assets** | **$8,767,975** | **$8,584,668** | **$7,574,255** | | **Liabilities & Equity** | | | | | Total current liabilities | $2,285,331 | $2,247,532 | $2,289,477 | | Long-term debt | $3,483,472 | $3,419,921 | $2,534,504 | | **Total stockholders' equity** | **$2,083,344** | **$1,989,581** | **$1,899,846** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the first quarter of 2025, net sales increased by **11.4%** year-over-year to **$1.47 billion**, with net income rising to **$68.0 million** from **$55.2 million** in the prior-year period Consolidated Income Statement (Three months ended March 31, in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $1,466,661 | $1,317,038 | +11.4% | | Gross profit | $270,403 | $223,479 | +21.0% | | Income before interest and income taxes | $130,544 | $111,719 | +16.8% | | Net income | $67,962 | $55,164 | +23.2% | | Diluted net income per share | $0.63 | $0.52 | +21.2% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$683.4 million** for Q1 2025, an increase from **$547.8 million** in Q1 2024, primarily due to changes in working capital Consolidated Cash Flows (Three months ended March 31, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) operating activities | $(683,401) | $(547,810) | | Net cash (used in) investing activities | $(82,472) | $(72,462) | | Net cash provided by financing activities | $282,996 | $292,676 | | Net (decrease) in cash and cash equivalents | $(469,824) | $(334,282) | | Cash and cash equivalents at end of period | $353,030 | $308,641 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail significant accounting policies, debt, financial instruments, and segment performance, including the **€650.0 million** Senior Notes repayment and supply chain finance program Revenue by Segment (Three months ended March 31, in thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Dispensing and Specialty Closures | $671,103 | $535,920 | | Metal Containers | $628,427 | $617,129 | | Custom Containers | $167,131 | $163,989 | | **Total** | **$1,466,661** | **$1,317,038** | - On March 15, 2025, the company repaid all **€650.0 million** of its outstanding 3¼% Senior Notes due 2025, funding the repayment with Euro revolving loan borrowings and cash on hand[29](index=29&type=chunk) - The company utilizes a supply chain finance (SCF) program. As of March 31, 2025, suppliers' invoices included in this program amounted to **$262.9 million**, which are recorded in accounts payable[42](index=42&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting **11.4% net sales growth** to **$1.47 billion**, segment performance, liquidity, and capital resources - Consolidated net sales for Q1 2025 increased by **$149.7 million (11.4%)** to **$1.47 billion** compared to Q1 2024, primarily due to the Weener Packaging acquisition, higher organic volumes, and raw material cost pass-through[63](index=63&type=chunk) - Income before interest and income taxes rose by **$18.8 million** to **$130.5 million** in Q1 2025, attributed to the Weener Packaging acquisition, improved manufacturing productivity, and higher organic volumes across all segments[66](index=66&type=chunk) - Interest expense increased by **$4.3 million** to **$42.9 million** in Q1 2025, mainly due to higher average borrowings related to the Weener Packaging acquisition[67](index=67&type=chunk) [Segment Analysis](index=24&type=section&id=Segment%20Analysis) All three segments reported year-over-year growth in net sales and Adjusted EBIT for Q1 2025, with Dispensing and Specialty Closures seeing the largest increase due to acquisition and organic volume growth Adjusted EBIT Reconciliation Summary (Q1 2025, in millions) | Segment | EBIT | Adjustments | Adjusted EBIT | | :--- | :--- | :--- | :--- | | Dispensing & Specialty Closures | $79.9 | $19.3 | $99.2 | | Metal Containers | $44.7 | $4.9 | $49.6 | | Custom Containers | $22.1 | $2.5 | $24.6 | | Corporate | $(16.2) | $1.1 | $(15.1) | | **Total** | **$130.5** | **$27.8** | **$158.3** | [Dispensing and Specialty Closures Segment](index=24&type=section&id=Dispensing%20and%20Specialty%20Closures%20Segment) Net sales for this segment increased by **25.2%** to **$671.1 million** in Q1 2025, driven by the Weener Packaging acquisition and a **3%** rise in organic unit volumes, with Adjusted EBIT growing to **$99.2 million** Dispensing and Specialty Closures Performance (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $671.1 | $535.9 | | Adjusted EBIT | $99.2 | $77.8 | | Adjusted EBIT margin | 14.8% | 14.5% | - The increase in net sales was primarily due to the inclusion of Weener Packaging, approximately **3% higher organic unit volumes**, and a more favorable product mix, partially offset by unfavorable foreign currency translation of about **$12.0 million**[76](index=76&type=chunk) [Metal Containers Segment](index=24&type=section&id=Metal%20Containers%20Segment) The Metal Containers segment reported a **1.8%** increase in net sales to **$628.4 million**, driven by a **4%** rise in unit volumes, with Adjusted EBIT increasing to **$49.6 million** Metal Containers Performance (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $628.4 | $617.1 | | Adjusted EBIT | $49.6 | $45.0 | | Adjusted EBIT margin | 7.9% | 7.3% | - Unit volumes increased by approximately **4%**, primarily due to higher demand in pet food and soup markets, which, along with improved manufacturing productivity, drove the increase in Adjusted EBIT[78](index=78&type=chunk)[79](index=79&type=chunk) [Custom Containers Segment](index=25&type=section&id=Custom%20Containers%20Segment) Net sales in the Custom Containers segment grew by **2.0%** to **$167.2 million**, supported by a **2%** volume increase from new business awards, with Adjusted EBIT rising significantly to **$24.6 million** Custom Containers Performance (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $167.2 | $164.0 | | Adjusted EBIT | $24.6 | $20.2 | | Adjusted EBIT margin | 14.7% | 12.3% | - The increase in net sales was principally due to a volume increase of approximately **2%** driven by new business awards, with Adjusted EBIT growth attributed to improved manufacturing productivity and cost performance[81](index=81&type=chunk)[82](index=82&type=chunk) [Capital Resources and Liquidity](index=25&type=section&id=CAPITAL%20RESOURCES%20AND%20LIQUIDITY) The company's primary liquidity sources are cash from operations and debt borrowings, with **€650.0 million** of notes repaid in Q1 2025 and **$1.1 billion** in revolving loans outstanding - On March 15, 2025, the company repaid all **€650.0 million** of its outstanding 3¼% Notes using Euro revolving loan borrowings and cash on hand[84](index=84&type=chunk) - As of March 31, 2025, the company had **$1.1 billion** of revolving loans outstanding and **$398.2 million** of availability under its Credit Agreement[87](index=87&type=chunk) - The company has seasonal working capital requirements that have historically averaged approximately **$375 million**, which are funded through revolving loans and cash[88](index=88&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its primary market risks—interest rates, foreign currency exchange rates, and commodity prices—or its risk management policies since its 2024 Annual Report on Form 10-K - There has not been a material change to the company's interest rate risk, foreign currency exchange rate risk, or commodity pricing risk since the fiscal year ended December 31, 2024, apart from changes discussed in Notes 6 and 7[101](index=101&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[102](index=102&type=chunk) - The company is in the process of integrating the internal controls of Weener Packaging, acquired in October 2024, and will include them in the annual assessment for the 2025 fiscal year[104](index=104&type=chunk) [Part II. Other Information](index=29&type=section&id=Part%20II.%20Other%20Information) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, no directors or officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - In Q1 2025, no directors or officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of company securities under Rule 10b5-1(c)[105](index=105&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act and XBRL data files - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and Inline XBRL documents[106](index=106&type=chunk) [Signatures](index=30&type=section&id=Signatures)

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]

Core Insights - Silgan Holdings (SLGN) reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.69 per share a year ago, representing an earnings surprise of 5.13% [1] - The company posted revenues of $1.47 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.29%, but up from $1.32 billion year-over-year [2] - Silgan has surpassed consensus EPS estimates three times over the last four quarters, while it has topped consensus revenue estimates only once in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.04 on revenues of $1.53 billion, and for the current fiscal year, it is $4.09 on revenues of $6.41 billion [7] - The estimate revisions trend for Silgan is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Containers - Metal and Glass industry, to which Silgan belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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]

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 [11] - 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 [11] Investment Ratings - Silgan Holdings currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating strong potential for growth [12] - The company is forecasted to achieve year-over-year earnings growth of 13.5% for the current fiscal year, supported by positive revisions in earnings estimates from analysts [12] Earnings Performance - Three analysts have revised their earnings estimates higher in the last 60 days for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $4.11 per share [12] - Silgan Holdings has an average earnings surprise of 1.5%, suggesting a consistent performance above expectations [12] Conclusion - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Silgan Holdings is positioned as a strong candidate for growth investors [13]