Financial Data and Key Metrics Changes - In Q4 2025, net sales were approximately $1.5 billion, a 4% increase from the prior year, primarily driven by higher raw material costs and favorable foreign currency translation [17] - Adjusted EBIT for the quarter was $150.6 million, relatively flat compared to the prior year, with adjusted EPS of $0.67, a decrease of $0.18 due to higher interest expense and tax rate [18] - Adjusted EBIT and EBITDA margins expanded by 150 basis points, positioning the company for accelerated growth in the coming years [12] Business Line Data and Key Metrics Changes - The Dispensing and Specialty Closures segment saw a 1% increase in sales, with higher volumes in fragrance and beauty products offset by destocking in personal care and home care markets [19] - Metal Containers segment sales increased by 11%, driven by a 4% growth in volumes, particularly in pet food products [20] - Custom Containers experienced an 8% decrease in sales due to lower margin business exit, but volumes increased by 1% when excluding these [21] Market Data and Key Metrics Changes - The company anticipates organic volume growth in Dispensing and Specialty Closures to be in the low to mid-single digits for 2026, with metal containers expected to grow by a low single-digit percentage [13] - The pet food market continues to drive growth, representing more than half of the metal containers segment volume [23] Company Strategy and Development Direction - The company successfully integrated the Weener acquisition, achieving full run rate synergies and positioning for organic growth exceeding peers [9] - Strategic initiatives are focused on operational excellence, market-leading innovation, and customer partnerships to drive future growth [15] - The company is optimistic about growth opportunities both organically and inorganically as it enters 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year due to evolving consumer spending trends, but the company adapted and strengthened processes for future agility [10] - The outlook for 2026 includes expectations for significant value creation for shareholders, with a focus on meeting unique customer needs [15] - Management has taken a conservative approach to guidance, considering broader market conditions and potential risks [62] Other Important Information - The company returned approximately $160 million in capital to shareholders and returned to its target leverage range following the Weener acquisition [8] - The company is focused on sustainability initiatives and cost reduction programs to enhance operational efficiency [62] Q&A Session Summary Question: Details on first quarter outlook for Dispensing and Specialty Closures - Management indicated low- to mid-single-digit volumes for the segment, with challenges from low-cost inventory impacting EBIT [29] Question: Changes in order patterns and operations in Dispensing and Specialty Closures - Management acknowledged that the business has evolved significantly, requiring a broader view of macro influences on customer demand [32] Question: Key volume and margin considerations at the low end of guidance - Management highlighted broader market conditions as a potential factor influencing demand and margins [36] Question: Performance of hot fill beverage and destocking impacts - Management confirmed that destocking activity is complete in the Dispensing and Specialty Closures segment, with expectations for stable volumes [40] Question: Growth opportunities in healthcare and pharma - Management expressed confidence in doubling the size of the healthcare business over the next few years, driven by strong market demand [66]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were approximately $1.5 billion, a 4% increase from the prior year, primarily driven by higher raw material costs and favorable foreign currency translation [15][16] - Adjusted EBIT for the quarter was $150.6 million, relatively flat compared to the prior year, while adjusted EPS decreased by $0.18 to $0.67 due to higher interest expenses and tax rates [16] - Adjusted EBIT and EBITDA margins expanded by 150 basis points, positioning the company for accelerated growth in the coming years [11] Business Line Data and Key Metrics Changes - The Dispensing and Specialty Closures segment saw a 1% increase in sales, with higher volumes in fragrance and beauty products offset by destocking in personal and home care markets [16][17] - Metal Containers segment sales increased by 11%, driven by a 4% growth in volumes, particularly in pet food products [18][19] - Custom Containers experienced an 8% decrease in sales due to exiting lower-margin business, but volumes increased by 1% when excluding these [19] Market Data and Key Metrics Changes - The company anticipates organic volume growth in Dispensing and Specialty Closures to be in the low to mid-single digits for 2026, with metal containers expected to grow by a low single-digit percentage [12][21] - The pet food market continues to drive growth, representing more than half of the metal containers segment volume [21] Company Strategy and Development Direction - The company successfully integrated the Weener acquisition, achieving full run rate synergies and positioning for organic growth exceeding peers [6][8] - Strategic initiatives focus on operational excellence, market-leading innovation, and customer partnerships to drive future growth [7][12] - The company is optimistic about growth opportunities in both organic and inorganic avenues, particularly in healthcare and pharmaceuticals [11][62] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year due to evolving consumer spending trends, but the company adapted and strengthened processes for future agility [6][9] - The outlook for 2026 includes expectations for significant value creation for shareholders, with a focus on meeting customer needs and navigating market volatility [12][60] - Management has taken a conservative approach to guidance, incorporating broader market risks into their forecasts [60] Other Important Information - The company returned approximately $160 million in capital to shareholders and returned to its target leverage range post-acquisition [6] - The company expects free cash flow of approximately $450 million for 2026, with capital expenditures of about $310 million to support future growth [22] Q&A Session Summary Question: Details on first quarter outlook for Dispensing and Specialty Closures - Management indicated low- to mid-single-digit volume expectations, with challenges from low-cost inventory impacting EBIT [27][30] Question: Changes in order patterns and operations in Dispensing and Specialty Closures - Management acknowledged that the business has evolved, requiring a broader view of macro influences affecting customer demand [30][31] Question: Volume and margin considerations at the low end of guidance - Management highlighted broader market conditions as a potential factor influencing demand and margins [33] Question: Performance of hot fill beverage and destocking impacts - Management confirmed that destocking activity is complete in the Dispensing and Specialty Closures segment, with expectations for comparable volumes in 2026 [36][49] Question: Growth opportunities in healthcare and pharma - Management expressed confidence in doubling the size of the healthcare business over the next few years, driven by a strong pipeline and potential acquisitions [62][84]