Silgan (SLGN) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $1.56 billion, up 6.4% year-over-year, driven by higher raw material pass-throughs, favorable FX, and strong growth in fragrance/beauty and pet food packaging, partially offset by lower volumes in other segments and less favorable mix.

• Net income was $63.0 million ($0.60 per diluted share), down from $68.0 million ($0.63 per diluted share) in Q1 2025, reflecting margin contraction and higher costs.

• Adjusted net income per diluted share was $0.78, compared to $0.82 in the prior year, impacted by lower EBIT and higher tax rate.

• Double-digit organic volume growth was achieved in fragrance/beauty dispensing and pet food metal containers, with the Weener integration driving innovation.

• Gross profit margin declined to 17.0% from 18.4% year-over-year, reflecting less favorable mix and higher inventory costs.

Financial highlights

• Adjusted EBIT was $152.0 million, down from $158.3 million in Q1 2025, with segment performance mixed and higher corporate expense.

• Adjusted EBIT margin for Q1 was approximately 9.5%.

• Cash used in operating activities was $799.6 million, compared to $683.4 million in the prior year, with capital expenditures of $82.4 million.

• Dividends paid were $22.8 million, with $0.21 per share declared.

• Adjusted EBITDA for Q1 2026 was $220.8 million.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance raised to $3.73–$3.93, exceeding prior record levels at the low end.

• Q2 2026 adjusted EPS expected at $0.92–$1.02 vs. $1.01 prior year; Q2 interest expense guided at $50 million, tax rate 25–26%.

• Free cash flow for 2026 estimated at $450 million, with CapEx of $310 million.

• Management expects sufficient liquidity from operations and credit facilities to meet obligations and capital allocation needs.

• Ongoing evaluation of acquisition opportunities in consumer goods packaging.