Silgan (US:SLGN)2025-04-30 20:31Financial 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]