SLGN

A month has gone by since the last earnings report for Silgan Holdings (SLGN). Shares have added about 1.9% in that time frame, underperforming the S&P 500. But investors have to be wondering, 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. Silgan Holdings reported second-quarter 2026 adjusted earnings of 98 cents per share, beating the Zacks Consensus Estimate of 96 cents by 2.08%. The bottom line declined 3% from $1.01 in the year-ago quarter. Including one-time items, earnings were 72 cents per share compared with earnings of 83 cents in the prior-year quarter. Net revenues increased 6.8% year over year to $1.64 billion and surpassed the consensus estimate of $1.62 billion by 1.54%. Higher raw-material cost pass-throughs supported revenues, while high-single-digit growth in fragrance dispensing products and pet food metal containers stood out operationally. In second-quarter 2026, the cost of goods sold increased 8.7% year over year to $1.35 billion. Gross profit declined 1.4% to $295 million. The gross margin was 17.9% compared with the prior-year quarter’s 19.4%. Selling, general and administrative expenses were $127 million, up 4.1% year over year. The company reported an adjusted operating income of $185.3 million compared with $193 million in the prior-year quarter. The adjusted operating margin was 11.3% compared with the prior-year quarter’s 12.5%. Revenues in the Dispensing and Specialty Closures segment rose 1.7% year over year to $714 million. Results benefited from the pass-through of higher raw-material and other costs and favorable foreign currency translation but were partially offset by lower volumes and an unfavorable product mix. The segment’s adjusted EBITDA was $146.9 million compared with $145.5 million in second-quarter 2025. The Metal Containers segment’s revenues improved 13% year over year to $764 million due to the contractual pass-through of higher raw-material and manufacturing costs. Volumes were comparable with the prior-year quarter, as growth in pet food markets was offset by weaker fruit, vegetable and soup volumes. The segment’s adjusted EBITDA was $86.2 million compared with $84.4 million in the prior-year quarter. In the Custom Containers segment, revenues increased 2.9% year over year to $165.5 million. Favorable price and product mix aided revenues, partially offset by a 4% decline in volumes. The segment reported adjusted EBITDA of $35.2 million, up from the previous-year quarter’s $33.6 million. Silgan had cash and cash equivalents of $0.35 billion at June 30, 2026, compared with $1.08 billion at the end of 2025. Total debt was $4.83 billion, up from $4.35 billion at year-end. The company used $993.9 million of cash in operating activities during the first six months of 2026 compared with $904.9 million in the prior-year period. Capital expenditure was $146.7 million versus $155.7 million a year earlier. SLGN used $993.9 million in cash in operating activities compared with an outflow of $904.9 million in the first six months of 2025. SLGN reaffirmed its 2026 adjusted earnings guidance of $3.73-$3.93 per share. The midpoint implies growth of 3% from the adjusted earnings of $3.72 per share reported in 2025. The company also maintained its free cash flow forecast of $450 million and capital expenditure estimate of $310 million. For the third quarter, SLGN expects adjusted earnings of $1.21-$1.31 per share compared with $1.22 in the year-ago period. It turns out, estimates revision have trended downward during the past month. At this time, Silgan has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Silgan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Silgan Holdings (NYSE:SLGN) declared its 90th consecutive quarterly cash dividend, marking more than 22 years of uninterrupted payouts. The company reported that its annual dividend has increased each year since 2004, extending a long-running pattern of dividend growth. The Board framed the latest dividend decision as consistent with Silgan Holdings' long-term capital allocation approach and focus on shareholder returns. This milestone adds to the track record income focused investors often monitor when assessing dividend reliability and management confidence. For readers looking to compare this dividend track record with other income opportunities, the next logical stop is 8 dividend fortresses Silgan Holdings sits in the packaging sector, which many income investors watch for its typically steady demand profile. The stock closed at $42.66 and has been relatively flat over three years, while showing an 11.2% gain over five years and a decline of 6.2% over the past year. That mix of results can matter for readers weighing dividend history alongside recent share price performance. Is Silgan Holdings's dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis. The key change is that Silgan Holdings has confirmed another quarterly cash dividend of $0.21 per share, payable on September 15, 2026 to holders of record on September 1, 2026. That extends its streak to 90 consecutive quarterly dividends since 2004, with the annual payout increased each year across that period. For income focused investors, this updates the picture on dividend reliability. There is now a longer record of regular cash returns, tied to a business that reported second quarter 2026 sales of US$1,643.3 million and net income of US$75.8 million. The news gives you one more data point on how the Board is balancing shareholder distributions with recent earnings. The latest dividend sits alongside a Narrative that highlights premium packaging growth, higher margin categories and steady demand in areas like personal care, beauty and pet food. At the same time, recent results showed net income and earnings per share for both the second quarter and first half of 2026 below the prior year. Continuing the dividend pattern in that context may indicate the Board is comfortable with current cash generation, even as it manages elevated debt and acquisition spending. For readers, the combination of a long dividend track record and mixed earnings trends frames how Silgan Holdings is choosing to return capital while investing for future growth. The clearest sign of how sustainable this dividend path is likely to be is the relationship between earnings, cash flow and the payout over the next few quarters. Investors can watch upcoming quarterly reports for trends in net income and operating cash flow relative to the continuing US$0.21 per share dividend. Given the major risk flag around debt not being well covered by operating cash flow, any widening gap between earnings and dividend commitments would be important. The second half of 2026 results, especially full year figures on cash generation and leverage, will give a more complete view of how comfortably Silgan Holdings is funding its long running dividend stream. For the full picture including more risks and rewards, check out the complete Silgan Holdings analysis. Alternatively, you can check out the community page for Silgan Holdings to see how other investors believe this latest news will impact the company's narrative. Do you think there's more to the story for Silgan Holdings? Head over to our Community to see what others are saying! This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SLGN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:30 a.m. ET Senior Vice President, Strategy, Investor Relations - Alexander Hutter President and Chief Executive Officer - Adam Greenlee Executive Vice President and Chief Operating Officer - Philippe Chevrier Executive Vice President and Chief Financial Officer - Shawn Fabry Operator: Good day, and welcome to the Silgan Holdings Second Quarter 2026 Earnings Call. Today's call is being recorded. At this time, I'd like to turn the call over to Alex Hutter, Senior Vice President, Strategy, Investor Relations. Please go ahead. Alexander Hutter: Thank you, and good morning. Joining me on the call today are Adam Greenlee, President and CEO; Philippe Chevrier, EVP and COO; and Shawn Fabry, EVP and CFO. Before we begin the call today, we would like to make it clear that certain statements made on this conference call may be forward-looking statements. These forward-looking statements are made based on management's expectations and beliefs concerning future events impacting the company and therefore, involve a number of uncertainties and risks, including, but not limited to, those described in the company's annual report on Form 10-K for 2025 and other filings with the Securities and Exchange Commission. Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in the forward-looking statements. In addition, commentary on today's call may contain references to certain non-GAAP financial metrics, including adjusted EBIT, adjusted EBITDA, free cash flow and adjusted net income per diluted share or adjusted EPS. A reconciliation of these metrics, which should not be considered substitutes for similar GAAP metrics, can be found in today's press release under the non-GAAP financial information portion of the Investor Relations section of our website at silganholdings.com. With that, let me turn it over to Adam. Adam Greenlee: Thank you, Alex, and we'd like to welcome everyone to Silgan's second quarter earnings call. We're pleased to have delivered another quarter of solid financial results in the second quarter as our teams continue to execute our plan for the year and position our company for continued success well into the future. Our businesses performed well in the second quarter and successfully overcame some significant challenges, including a dynamic geopolitical and operating backdrop. And our team successfully managed significant cost inflation, normalizing order patterns and developing market conditions to deliver results that were above the midpoint of our expected range. Our results in Dispensing and Specialty Closures were consistent with our expectations, and we delivered another quarter of strong growth in products for the fine fragrance market. Our teams continue to compete and win in this high-value market as our customer partnership model, differentiated technology and market-leading innovation continue to set us apart from our competition. While overall market conditions remain mixed and were softer than expected in Brazil in the second quarter, our business continues to outperform the trends in our end markets. Additionally, the value we provide through these critical dispensing products was once again validated in the market as we successfully implemented commercial actions during the quarter to recover cost increases we have seen during the year as a result of raw material and other inflation. Our Metal Containers segment reported another quarter of strong organic volume growth in products for wet pet food, which grew 7% year-over-year despite facing more challenging comps from the prior year. Our team successfully executed a new long-term supply agreement in the vegetable market, and we are eager to have a conclusion to the multiyear disruption created by this unique customer situation and looking forward to continuing our long-term partnership with the new owners of this business. Overall, volumes in the Metal Containers segment were flat year-over-year as the growth in pet food products was offset by the anticipated normalization in order pattern timing in the vegetable and soup markets. In Custom Containers, our team delivered another quarter of solid results despite significant raw material volatility associated with higher crude oil prices, with volumes comparable to prior year levels after accounting for business exited as part of our cost reduction program. Our second quarter results continue to display our team's focus on executing our plan in 2026, and we are pleased to have delivered another strong quarter of financial results. As we move into the second half of 2026 and past some of the challenges that we planned for in our first half results, we are confident in our ability to deliver organic growth in the third and fourth quarters despite the incremental challenges that have developed since we last reported. As always, our unique portfolio of consumer staple products and end markets, our long-term partnerships with our customers, our market-leading innovation, our unique capital deployment model and our low-cost global manufacturing footprint continue to differentiate Silgan in the market and position us to outperform through various macroeconomic and geopolitical backdrops. Turning now to our outlook. We are confirming our estimates for 2026 earnings and free cash flow and our volume expectations for the remainder of the year remain largely unchanged. We continue to expect Dispensing and Specialty Closures organic volume mix to grow by a low to mid-single-digit rate in 2026, driven by low to mid-single-digit growth in our dispensing products. Our Metal Containers volumes are on track to grow by a low single-digit percentage, driven by mid-single-digit growth in pet food and stable volumes for human food. We continue to expect our Custom Containers volumes to be comparable to prior year levels after accounting for volumes exited related to our restructuring plan, with second half volumes higher than the prior year on a comparable basis as we commercialize new business. We remain laser-focused on executing our plans for the year and delivering on our longer-term strategic growth initiatives and are confident in our ability to deliver on both. With that, Shawn will take you through the financials for the quarter and our estimates for the third quarter and full year of 2026. Shawn Fabry: Thank you, Adam. As Adam highlighted, we reported another quarter of strong results in the second quarter of 2026, with adjusted EPS coming in above the midpoint of our expected range due to strong operational EBIT performance and favorable interest expense, which was partially offset by higher corporate expense. Net sales of approximately $1.6 billion increased 7% from the prior year period as a result of the pass-through of higher raw material and other costs, mostly in our Metal Containers business. Total adjusted EBIT for the quarter of $185 million was 4% below the prior year, with higher adjusted EBIT in our Custom Containers segment, offset mostly by higher corporate expense and lower EBIT in the Metal Containers segment. Adjusted EPS of $0.98 decreased $0.03 from the prior year period due to lower adjusted EBIT, which was partially offset by lower interest expense. Turning to our segments. Second quarter sales in our Dispensing and Specialty Closures segment increased 2% versus the prior year, primarily as a result of the pass-through of higher raw material and other costs and foreign currency translation, which was partially offset by lower volume and less favorable mix. Volumes in the quarter were impacted by softer market conditions in Brazil, which contributed to a 1% decline in segment unit volumes and also caused an adverse impact on the mix of products sold. As expected, second quarter Dispensing and Specialty Closures adjusted EBIT was comparable to the prior year levels with favorable price over cost offset by lower volumes and less favorable mix. The combination of lower volumes in Brazil and less favorable mix impacted the second quarter by approximately $5 million. In our Metal Containers segment, sales increased 13% versus the prior year quarter as a result of the contractual pass-through of higher raw material and other manufacturing costs, principally related to steel and aluminum, and volumes were comparable to prior year levels. As Adam mentioned, higher volumes for wet pet food products were offset by the anticipated normalization of order patterns for products in the fruit and vegetable market, a result of the change of ownership in one of our previous customers in this market. Metal Containers adjusted EBIT was below prior year levels, as higher volumes of smaller containers for pet food markets and lower volumes of larger containers for fruit and vegetable markets resulted in a less favorable mix of products sold. In Custom Containers, our results were largely consistent with our expectations as sales increased 3% compared to the prior year quarter due to favorable price mix, which was partially offset by a 4% decline in volumes. As expected, volumes were below prior year levels due to the continued impact of the exit of lower-margin business associated with the planned footprint optimization. Custom Containers adjusted EBIT was above prior year levels as a result of favorable price over cost, including mix, which includes the cost savings associated with the footprint optimization that drove lower volumes. Turning to our outlook for the third quarter of 2026. We are providing an estimate of adjusted earnings in the range of $1.21 to $1.31 per diluted share as compared to the adjusted EPS of $1.22 in the prior year period. At the midpoint, this estimate assumes higher year-over-year adjusted EBIT of approximately $10 million, interest expense of $50 million to $55 million and a tax rate of approximately 25% to 26%. Volumes are expected to be above prior year levels in all segments on a comparable basis. For the full year of 2026, as Adam discussed, we are confirming our estimate of adjusted EPS in the range of $3.73 to $3.93 as compared to $3.72 in 2025. This estimate continues to include low to mid-single-digit percentage total adjusted EBIT growth, corporate expense of approximately $50 million, interest expense of approximately $200 million and an expected tax rate of 25% to 26%. We continue to expect low to mid-single-digit volume growth in Dispensing and Specialty Closures, low single-digit volume growth in Metal Containers and low single-digit comparable volume growth in Custom Containers. Based on our current earnings outlook for 2026, we are confirming our estimate of free cash flow of approximately $450 million, which includes CapEx of approximately $310 million. With that said, we'll open the call for questions. Katie, would you kindly provide directions for the question-and-answer session? Operator: [Operator Instructions] We'll go first to Matt Roberts with Raymond James. Matthew Roberts: Maybe first on Brazil, maybe you could speak to how big this is within DSC, where exactly that weakness was? Shawn, I believe you said it was a 1-point headwind to volume mix in 2Q. Please correct me if I'm wrong, but maybe if that is correct, ex Brazil, what were the drivers of the volume mix declines in that segment? And how does that influence your thinking for second half? Or what gives confidence that there can be an acceleration in second half given some volatility in Brazil? It seems like the volumes are low single digit to mid-single digit now for 2026. Is that all Brazil or anything else to be mindful of? Adam Greenlee: Matt, it's Adam. Maybe we'll both jump in on this one. I think you've got that right. Brazil, maybe to put some context to it, in Brazil, in the region, we had about a 15% volume decline year-over-year and a significant change for us. I'd remind you that we had planned for quite a few unknown activities this year in our overall guidance. So we're pleased to continue to be able to absorb that and deliver the results that we had guided to. So you're right that overall, it's about a 1% decline for us. We talked about volume mix in the segment being down 3%. Really, that's 1% volume, 2% mix, just for some additional clarity there. And so outside of that, the balance of the business essentially was flat, and we feel really good about the performance, and it was right in line with the expectations that we had for the full year. So nothing's changed from that perspective. I think as we look at Q3, what's included in our guidance is a similar impact from Brazil with a recovery starting in Q4 and to be fully recovered as we head into 2027. And maybe just to provide a little context, as we go around the world, Europe was very strong for Dispensing and Specialty Closures. We talked about our performance in fine fragrance. It is largely a European market for us, although we do those products also in Brazil and North America as well. Americas, the North American region, continues to be a little bit of a mixed bag. It's a tougher market for us. I think with the K-shaped economy, we're seeing a variety of performance by segment. Our higher-end segments continue to do very well. I think the low end, we're seeing a good pull-through. It's the middle part of the market that I think with all of the volatility that occurred in Q2, that was a little choppy for us in the second quarter. Matthew Roberts: Super helpful. Appreciate all that color. Maybe one on metal. I believe in the prepared remarks, you noted a more seasonal order patterns for fruit and veggie pack. How did human food perform in 2Q? And given that you did reach that long-term supply agreement, what type of visibility does that give you into 3Q and second half volumes in metal? And any comments on how the pack season is shaping up at present? Adam Greenlee: Yes, sure. As we look at Q2, again, I think as Shawn had said and I had mentioned too, pet food was up 7%. So another just terrific quarter for pet food. The human food side, veg was down kind of double digits and soup was down double digits as well. But I'd say that's pretty much in line with our expectation. As we talked previously, the large customer that we've been discussing for so long in the veg market, those assets came to us in a self-manufactured takeout. And as part of that, the prior owner of those assets, once upon a time, had made cans all year long and essentially sold cans to themselves, I would say, all throughout the year. And as we acquired that business, we maintained that business model. As we now move to a new agreement with the new owners, those cans are going to be sold much closer to the time that they're filled. And therefore, Q3 will be a higher volume quarter for us for that particular customer going forward. From a visibility standpoint, as we look at the fruit and veg pack, particularly in North America, growing conditions have been good thus far. The high heat actually has been beneficial to the crop. I think our expectations are up just a little bit for the veg pack in particular, which will bring into a little more volume later into the pack season, which will drop into Q4 for us. But good visibility, feel confident in our customer forecast for the pack season and our ability to deliver as well. Operator: We'll take our next question from Mike Roxland with Truist Securities. Michael Roxland: Just the first one I had, last quarter, Adam, you mentioned commercializing 2027 product launches and developing '28 and '29 product launches at that point in time. How much of your fragrance and beauty business is already locked in for 2027? And relatedly, at that point in time, you mentioned already working with some of the largest perfume houses and the like. Are there any incremental opportunities to work with potential customers that you're not currently aligned with? Adam Greenlee: Sure. As we look at fragrance, again, it's got that longer developmental cycle. We also have long-term contracts that cover a lot of the franchises that we support. So to your point, Mike, I mean, '27 is -- we've got a pretty good view on it as of right now, and most of that business is contractualized because to meet those launch dates, those products are already in not only past development, but in the commercialization stage now. So I feel really good about that. We are a big player in the fine fragrance or the premium segment, and there's always more opportunity to work with existing customers and others in the space. And I think what has really set us apart now for several years is the differentiated technology that we bring to bear, this customer partnership model that we continue to talk about that we think is very valuable to our customers and particularly this market where the utility of the product that we provide is so critical to the overall package for the fragrance houses. So it continues to be a really good story. We think we've got pretty good clear sight to continued growth in kind of the high single-digit rate for fragrance products around the world and feel really good about our position in that market. Michael Roxland: Got it. And then just one quick one on healthcare. I believe you mentioned it's a $250 million business targeting nasal and ophthalmic applications. Your goal is to double that business organically over the next 3 to 5 years. That implies a CAGR of about 15% to 20% plus per year. So can you help us frame how you intend to drive that type of internal growth? Obviously, you've had some help recently from Weener and tapping into existing commercial relationships domestically. But just wondering how you intend to drive that growth organically over the next 3 to 4 years? Adam Greenlee: Yes. I think when we first started talking about that, the healthcare business for us was about $200 million. It's now already grown to $250 million. So I think we're well on our way. With those long developmental cycles, again, most of that volume is commercial -- or is contractualized, I should say, over the course of the next couple of years. And we continue to have additional opportunities that come to us in our specific areas of nasal and ophthalmic. And I think we've got a competitively advantaged product, and we've got some design and innovation capabilities that we're bringing to bear that are of terrific interest. And I think as we think about potential growth beyond where we are in nasal and ophthalmic, it's taking our technology and applying that to different applications for drug delivery. So feel really good at that. And that is part of the low to mid-single digit this year as well as we've got some healthcare that is ramping up. It was planned to ramp up for the second half of the year all along. And I would say it's probably a little heavier in the fourth quarter as we think now about the second half of the year. Operator: We'll take our next question from Ketan Mamtora with BMO Capital Markets. Ketan Mamtora: Perhaps to start with on that, the resin lag that you talked about, the impact of $10 million, is that still sort of consistent with how you all are thinking right now? Adam Greenlee: Yes. As we -- well, number one, welcome to the space. It's great to have another analyst in the coverage group. So welcome to the coverage. As far as that $10 million, that was a Q2 item that we talked about, and that's kind of the net unrecovered inflation, primarily resin in all fairness, but the net unrecovered inflation that we experienced and it played out essentially exactly as we thought. There's a tremendous amount of volatility, as everybody knows, still in those markets. And that will be unrecovered until such time as resin declines in the future, and we just don't have clear visibility as to when that's going to happen. So it played out pretty much as we expected. It's behind us now. And as resin falls in the future, that will be a benefit back to Silgan at that point. Ketan Mamtora: Got it. No, that's helpful. And then just switching to capital allocation. Curious how you guys are thinking about sort of M&A opportunities? How is the pipeline looking at the moment? And sort of what is the bias between share repurchase and M&A at current sort of valuation levels? Shawn Fabry: Ketan, this is Shawn. I'll jump in and then turn it over to Alex to answer the M&A side of the question. Really, nothing has changed with respect to how we view capital deployment. We have a returns-based decision model that we've been using for many, many years. Everything is benchmarked against share buyback as a hurdle under that model that we consider, and we make the decisions that we feel are best for our shareholders and create the most shareholder value. I think we look at kind of where we're going to land at the end of the year, and we believe we'll be below the midpoint of our target range, so somewhere below that 3x leverage. So we're right where we would like to be with respect to having all options available to us, inclusive of M&A. Alexander Hutter: And Ketan, on the pipeline, look, it remains an active environment on the M&A side, a fairly full pipeline, but it's been that way for some time. I think as you know, what you'll see from us, as Shawn mentioned, is the continued discipline on capital deployment. So that hurdle rate moves around on alternative uses for capital. And ultimately, what we do is we take a long-term view on capital deployment and what will create the most value for our shareholders, and that's what we execute on. Operator: We'll take our next question from Arun Viswanathan with RBC Capital Markets. Arun Viswanathan: Just going to get your thoughts on maybe some of your customer behavior. Do you still see continued promotional activity across some of the major verticals? I guess what could you share on that side? And to the effect that, that could translate into what your outlook on volumes would be, I guess we'd be interested in that as well. Adam Greenlee: Sure. Obviously, a fairly volatile environment today with -- between tariffs and resin pricing and cost being what they have been through the second quarter. So our customers and most CPGs are continuing to pass that inflation on to the consumer. And I think what we've seen the change in 2026 versus maybe prior year is, I think in the prior year coming out of the post-COVID era, our CPG customers for the most part were willing to trade price and margin versus volume. And I think there's a much greater focus on volume right now throughout CPG than with many of our customers. So they are using and they're viewing promotional activity as a just a tool in the toolkit to move volume. And I think with that focus on volume, what we continue to see is where the target promotional activity is being used in the marketplace, it is actually working, and it is driving volume in certain segments. We've continued to point out in our wet pet food segment, particularly in cat, there's been targeted promotional activity for some time. We do think that is driving volume. So it is successful when it's applied in a targeted manner right now for the consumer who continues to seek out value. And we think our customers are aligned to focus more on volume in 2026 than what had been done in the prior years. Arun Viswanathan: Okay. And then also maybe if you can just describe some of the bolt-on M&A opportunities. Do you see that more so in the closures area at this point? Alexander Hutter: Yes, Arun, it's Alex. So we obviously don't comment on any specific assets in the market. I think what you've seen from us over time is that we typically look at anything that's rigid packaging for consumer goods, largely in the developed markets. What that has meant and where we found the highest returns over the past several years has been in the Dispensing and Specialty Closures market, where we've found higher margin, higher growth assets that can generate really strong returns over time. But we look at a broad range of opportunities and that's kind of the opportunity set. Adam Greenlee: And the only thing I would add to that is that I think as we look at our 3 business franchises, they're all performing at a pretty high level right now. And I think they're all capable of dealing with acquisitions if that is in the framework for any of the 3 business segments. I look at the margin profile and the operating leverage that we have. So we feel really good about all 3 of our business segments at this point. Operator: We'll take our next question from Anojja Shah with UBS. Anojja Shah: I wanted to go back to Brazil a little bit. Can you give a little more detail on was it market or end consumer driven? Or was there a share shift or something like that? And I think you mentioned recovery in Q4. What's driving that? Adam Greenlee: Sure. So Brazil, look, it's an inflationary market, and it's taken significant inflation in Brazil for many years now. And so we've done a really good job of passing that through to our customers who obviously pass that through on to the market. So this is all about the market. We've not lost any share. We've got a terrific position in the Brazilian market for our high-value dispensers. I think the thing that maybe we haven't said yet is those high-value dispensers, the volume reduction in Brazil also generated quite a bit of the mix impact that we had in the quarter, too. So really for us, it's a temporary action, I think, with our customers in the market in Brazil. They're expecting some recovery starting late in Q3. We think that will lead into Q4 from a seasonality standpoint. And really, it's the same holiday season kind of discussion that we've had about Brazilian activity as well with our 2 largest customers in Brazil, a good portion of their revenue comes through the holiday events in the Brazilian region. So we feel pretty comfortable that we'll begin that recovery in Q4 and be fully recovered as we head into 2027. Anojja Shah: Great. And I just was wondering if we could put a finer point on your volume expectations for metals in the third quarter. I think you said low single digit for the full year, but I know in the third quarter you have that customer timing issue, which should be a help. But then how do you balance that against a pretty tough comp? Adam Greenlee: Sure. I mean we've got a couple of things working. Obviously, we've got continued growth in pet food that we feel really good about. Veg is going to be up year-over-year with the timing issue coming out of Q2 that we talked about. So I think we're looking kind of low to mid-single-digit volume growth for Metal Containers in Q3. Alexander Hutter: Yes. Anojja, the only other thing I'd point out is, remember, we have the timing. So volumes came out of the second quarter into the third quarter. So that will help the third quarter this year. Operator: We'll take our next question from Daniel Rizzo with Jefferies. Daniel Rizzo: You mentioned your contracts in healthcare and the new contract in metal coatings. I was wondering if these contracts have like clauses, like minimum purchase requirements or how they're kind of structured in that regard? Adam Greenlee: Yes. We don't really talk about any individual contracts, and maybe I'll just take it up one level and talk about Silgan. Particularly in the Metal Containers side of the business, that business has long focused on requirements-based contracts. So you can think of our long-term contracts that we're 100% supply for their requirements. And typically, those never had a minimum purchase requirement. Silgan takes the risk essentially on the volume side, but also gets the full upside of any volume gain. I think in other parts of our business, we've got a variety of contractual language. I think healthcare, to your point, probably has a little more provision around kind of the risk of volume and some minimum requirements because of the capital that's required that goes into those types of investments. Daniel Rizzo: That's very helpful. And then just my second question is, I think you mentioned that corporate expenses were a little elevated in the quarter. And I was wondering if this is kind of how we should think about it going forward or if there's something now with just a lot of the moving pieces that is going to kind of fade away as we move through the end of the year and into 2027 and beyond. Shawn Fabry: Sure. I'll take that one. As we mentioned, we're constantly looking at everything, rigid packaging. So this particular category versus spend category can be lumpy over the years in terms of any single quarter. And overall, we feel pretty confident with the $50 million guidance that we're giving for the full year, and that includes the increase that we experienced in H2 -- for H1, excuse me. Operator: [Operator Instructions] And with no additional questions in queue, that will conclude our question-and-answer session. I'd like to turn the call back over to Adam Greenlee for any additional or closing remarks. Adam Greenlee: Great. Thank you very much, Katie. Thank you all for your interest in Silgan. We're pleased that we've delivered a first half that's slightly ahead of our original expectations as we came into the year and confident in our delivery of our second half performance. Thank you. Operator: Thank you. That will conclude today's call. We appreciate your participation. Before you buy stock in Silgan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Silgan wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 3, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Silgan (SLGN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Silgan Holdings Inc. SLGN reported second-quarter 2026 adjusted earnings of 98 cents per share, beating the Zacks Consensus Estimate of 96 cents by 2.08%. The bottom line declined 3% from $1.01 in the year-ago quarter.Including one-time items, earnings were 72 cents per share compared with earnings of 83 cents in the prior-year quarter. Silgan Holdings Inc. price-consensus-eps-surprise-chart | Silgan Holdings Inc. Quote Net revenues increased 6.8% year over year to $1.64 billion and surpassed the consensus estimate of $1.62 billion by 1.54%. Higher raw-material cost pass-throughs supported revenues, while high-single-digit growth in fragrance dispensing products and pet food metal containers stood out operationally. In second-quarter 2026, the cost of goods sold increased 8.7% year over year to $1.35 billion. Gross profit declined 1.4% to $295 million. The gross margin was 17.9% compared with the prior-year quarter’s 19.4%.Selling, general and administrative expenses were $127 million, up 4.1% year over year. The company reported an adjusted operating income of $185.3 million compared with $193 million in the prior-year quarter. The adjusted operating margin was 11.3% compared with the prior-year quarter’s 12.5%. Revenues in the Dispensing and Specialty Closures segment rose 1.7% year over year to $714 million. Results benefited from the pass-through of higher raw-material and other costs and favorable foreign currency translation but were partially offset by lower volumes and an unfavorable product mix. The segment’s adjusted EBITDA was $146.9 million compared with $145.5 million in second-quarter 2025.The Metal Containers segment’s revenues improved 13% year over year to $764 million due to the contractual pass-through of higher raw-material and manufacturing costs. Volumes were comparable with the prior-year quarter, as growth in pet food markets was offset by weaker fruit, vegetable and soup volumes. The segment’s adjusted EBITDA was $86.2 million compared with $84.4 million in the prior-year quarter.In the Custom Containers segment, revenues increased 2.9% year over year to $165.5 million. Favorable price and product mix aided revenues, partially offset by a 4% decline in volumes. The segment reported adjusted EBITDA of $35.2 million, up from the previous-year quarter’s $33.6 million. Silgan had cash and cash equivalents of $0.35 billion at June 30, 2026, compared with $1.08 billion at the end of 2025. Total debt was $4.83 billion, up from $4.35 billion at year-end.The company used $993.9 million of cash in operating activities during the first six months of 2026 compared with $904.9 million in the prior-year period. Capital expenditure was $146.7 million versus $155.7 million a year earlier.SLGN used $993.9 million in cash in operating activities compared with an outflow of $904.9 million in the first six months of 2025. SLGN reaffirmed its 2026 adjusted earnings guidance of $3.73-$3.93 per share. The midpoint implies growth of 3% from the adjusted earnings of $3.72 per share reported in 2025.The company also maintained its free cash flow forecast of $450 million and capital expenditure estimate of $310 million. For the third quarter, SLGN expects adjusted earnings of $1.21-$1.31 per share compared with $1.22 in the year-ago period. The company’s shares have lost 11% in the past year against the industry’s growth of 12.1%. Image Source: Zacks Investment Research SLGN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Packaging Corporation of America PKG reported second-quarter 2026 adjusted earnings of $2.35 per share, falling 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above Packaging Corp’s guidance of $2.33.Packaging Corp’s revenues increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter. Crown Holdings, Inc. CCK posted second-quarter 2026 adjusted earnings of $2.49 per share, up 15.8% year over year. The figure surpassed the Zacks Consensus Estimate of $2.15 by 15.81%. Crown Holdings revenues increased 16.5% to $3.67 billion and beat the consensus estimate of $3.34 billion by 9.88%. Global beverage can volumes rose 5%, led by 6% growth in Europe and 5% growth in the Americas. This was partially offset by softer demand in Latin America. Sonoco Products Company SON reported adjusted earnings of $1.51 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.47 by 2.72%. The figure rose 10.2% from $1.37 in the year-ago quarter. Pricing actions, favorable foreign-exchange movements and productivity gains helped offset the softer volume/mix during the quarter. Sonoco’s revenues of $1.885 billion declined 1.3% year over year and missed the consensus mark of $1.886 billion by 0.05%. Sonoco’s top line declined from the prior-year period primarily due to the absence of sales from the ThermoSafe business, which was divested in November 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report Sonoco Products Company (SON) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Silgan Holdings Inc.? Here are five stocks we like better. Silgan exceeded the midpoint of its Q2 guidance, reporting adjusted EPS of $0.98 on sales of approximately $1.6 billion, though EPS fell from $1.01 a year earlier and adjusted EBIT declined 4% to $185 million. Brazilian weakness pressured the Dispensing and Specialty Closures segment, with volumes down 15% in the country, while Metal Containers faced changing soup and vegetable order timing. Pet food growth and expected order normalization should support stronger third-quarter volumes. Full-year guidance was maintained, including adjusted EPS of $3.73-$3.93 and approximately $450 million in free cash flow. Silgan expects low- to mid-single-digit adjusted EBIT growth, with improvement supported by Custom Containers optimization and second-half volume growth. Is Consumer Discretionary a Dead End? These 3 Stocks Say No Silgan (NYSE:SLGN) reported second-quarter 2026 adjusted earnings per share of $0.98, above the midpoint of its guidance range but down $0.03 from the prior-year quarter, as lower adjusted EBIT was partly offset by lower interest expense. Net sales rose 7% year over year to approximately $1.6 billion, largely reflecting the contractual pass-through of higher raw-material and other costs, particularly in the Metal Containers business. Total adjusted EBIT was $185 million, down 4% from the prior year. Chief Financial Officer Shawn Fabry said higher adjusted EBIT in Custom Containers was more than offset by increased corporate expense and lower EBIT in Metal Containers. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Mid Cap Dividend Growers That are Still Cheap President and Chief Executive Officer Adam Greenlee said the company managed cost inflation, shifting order patterns and mixed market conditions while producing results above the midpoint of expectations. Silgan confirmed its full-year adjusted EPS outlook of $3.73 to $3.93, compared with $3.72 in 2025, and maintained its forecast for about $450 million in free cash flow. Sales in Silgan’s Dispensing and Specialty Closures segment increased 2% from the prior-year quarter, supported by higher cost pass-throughs and foreign-currency translation. Those factors were partly offset by lower volume and unfavorable product mix. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Segment unit volumes declined 1%, with weaker-than-expected conditions in Brazil contributing to the decline. Greenlee said volumes in Brazil fell approximately 15% year over year, while the balance of the segment was “essentially” flat. He attributed the decline to market conditions rather than lost share and said the company expects a similar Brazilian impact in the third quarter before recovery begins in the fourth quarter and continues into 2027. Fabry said the combination of Brazil volume weakness and less favorable mix reduced second-quarter results by about $5 million. Despite that impact, adjusted EBIT in the segment was comparable with the prior year as favorable price over cost offset the volume and mix pressure. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Greenlee highlighted continued strong growth in fine-fragrance dispensing products, particularly in Europe. He said Silgan expects continued high-single-digit growth in fine-fragrance products globally and has substantial visibility into 2027 business because products launching then are already in commercialization and supported by long-term contracts. The company also said its healthcare business, focused on nasal and ophthalmic applications, has expanded from about $200 million when management first discussed the opportunity to approximately $250 million. Greenlee said healthcare volume is expected to ramp in the second half, with a greater contribution anticipated in the fourth quarter. Metal Containers sales rose 13% year over year, driven by the pass-through of higher steel, aluminum and manufacturing costs. Volumes were flat, as a 7% increase in wet pet food container volumes was offset by an anticipated normalization of order patterns in the fruit-and-vegetable and soup markets. Adjusted EBIT in the segment declined from the prior year, reflecting a less favorable sales mix. Higher sales of smaller pet food containers and lower sales of larger fruit and vegetable containers weighed on profitability. Greenlee said vegetable and soup volumes each declined by double digits during the quarter, consistent with company expectations. The vegetable-market trend is related to the ownership change of a former customer’s assets and a new long-term supply agreement with the new owners. Under the new arrangement, cans will be sold closer to when they are filled rather than being produced throughout the year. That shift is expected to make the third quarter a higher-volume period for the customer. Greenlee said the company expects low- to mid-single-digit volume growth in Metal Containers during the third quarter, aided by continued wet pet food growth and the order-timing benefit. He added that growing conditions for North American vegetables have been favorable, with expectations for the vegetable pack increasing modestly and potentially contributing more volume later in the season. Custom Containers sales increased 3% from the prior-year quarter due to favorable price and mix, partly offset by a 4% volume decline. The lower volume was expected and reflected the exit of lower-margin business as part of Silgan’s footprint optimization and cost-reduction program. Adjusted EBIT for the segment increased year over year as favorable price over cost, including mix and savings from the footprint optimization, outweighed the volume decline. Management expects Custom Containers volumes to be comparable with prior-year levels for the full year after accounting for exited business, with comparable volumes higher in the second half as new business is commercialized. Greenlee said the company experienced approximately $10 million of net unrecovered inflation in the second quarter, primarily related to resin. He said the impact unfolded as expected and is now behind the company, although Silgan does not have clear visibility on when resin prices may decline. If resin costs fall, the company expects that to provide a benefit. For the third quarter, Silgan expects adjusted EPS of $1.21 to $1.31 per diluted share, compared with $1.22 in the prior-year period. At the midpoint, the forecast assumes approximately $10 million of higher adjusted EBIT, interest expense of $50 million to $55 million, and a tax rate of about 25% to 26%. For the full year, the company continues to expect low- to mid-single-digit adjusted EBIT growth, approximately $50 million in corporate expense, about $200 million in interest expense and a 25% to 26% tax rate. Its free-cash-flow estimate of approximately $450 million includes anticipated capital expenditures of about $310 million. Management said it expects low- to mid-single-digit organic volume and mix growth in Dispensing and Specialty Closures, low-single-digit volume growth in Metal Containers, and low-single-digit comparable volume growth in Custom Containers. Greenlee said the company entered the second half with first-half performance slightly ahead of its original expectations and remained confident in its ability to meet its annual plan. Silgan Holdings Inc (NYSE: SLGN) is a leading supplier of rigid packaging solutions for consumer goods manufacturers. The company's core business activities center on the design, production and distribution of metal and plastic containers, closures and dispense systems. Silgan serves a broad array of end markets, including food and beverage, home and personal care, health care and industrial products, providing both standard and custom packaging formats. Founded in 1987 and headquartered in Stamford, Connecticut, Silgan has grown organically and through strategic acquisitions to establish a global manufacturing footprint. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Silgan Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:30 a.m. ET Senior Vice President, Strategy, Investor Relations - Alexander Hutter President and Chief Executive Officer - Adam Greenlee Executive Vice President and Chief Operating Officer - Philippe Chevrier Executive Vice President and Chief Financial Officer - Shawn Fabry Operator: Good day, and welcome to the Silgan Holdings Second Quarter 2026 Earnings Call. Today's call is being recorded. At this time, I'd like to turn the call over to Alex Hutter, Senior Vice President, Strategy, Investor Relations. Please go ahead. Alexander Hutter: Thank you, and good morning. Joining me on the call today are Adam Greenlee, President and CEO; Philippe Chevrier, EVP and COO; and Shawn Fabry, EVP and CFO. Before we begin the call today, we would like to make it clear that certain statements made on this conference call may be forward-looking statements. These forward-looking statements are made based on management's expectations and beliefs concerning future events impacting the company and therefore, involve a number of uncertainties and risks, including, but not limited to, those described in the company's annual report on Form 10-K for 2025 and other filings with the Securities and Exchange Commission. Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in the forward-looking statements. In addition, commentary on today's call may contain references to certain non-GAAP financial metrics, including adjusted EBIT, adjusted EBITDA, free cash flow and adjusted net income per diluted share or adjusted EPS. A reconciliation of these metrics, which should not be considered substitutes for similar GAAP metrics, can be found in today's press release under the non-GAAP financial information portion of the Investor Relations section of our website at silganholdings.com. With that, let me turn it over to Adam. Adam Greenlee: Thank you, Alex, and we'd like to welcome everyone to Silgan's second quarter earnings call. We're pleased to have delivered another quarter of solid financial results in the second quarter as our teams continue to execute our plan for the year and position our company for continued success well into the future. Our businesses performed well in the second quarter and successfully overcame some significant challenges, including a dynamic geopolitical and operating backdrop. And our team successfully managed significant cost inflation, normalizing order patterns and developing market conditions to deliver results that were above the midpoint of our expected range. Our results in Dispensing and Specialty Closures were consistent with our expectations, and we delivered another quarter of strong growth in products for the fine fragrance market. Our teams continue to compete and win in this high-value market as our customer partnership model, differentiated technology and market-leading innovation continue to set us apart from our competition. While overall market conditions remain mixed and were softer than expected in Brazil in the second quarter, our business continues to outperform the trends in our end markets. Additionally, the value we provide through these critical dispensing products was once again validated in the market as we successfully implemented commercial actions during the quarter to recover cost increases we have seen during the year as a result of raw material and other inflation. Our Metal Containers segment reported another quarter of strong organic volume growth in products for wet pet food, which grew 7% year-over-year despite facing more challenging comps from the prior year. Our team successfully executed a new long-term supply agreement in the vegetable market, and we are eager to have a conclusion to the multiyear disruption created by this unique customer situation and looking forward to continuing our long-term partnership with the new owners of this business. Overall, volumes in the Metal Containers segment were flat year-over-year as the growth in pet food products was offset by the anticipated normalization in order pattern timing in the vegetable and soup markets. In Custom Containers, our team delivered another quarter of solid results despite significant raw material volatility associated with higher crude oil prices, with volumes comparable to prior year levels after accounting for business exited as part of our cost reduction program. Our second quarter results continue to display our team's focus on executing our plan in 2026, and we are pleased to have delivered another strong quarter of financial results. As we move into the second half of 2026 and past some of the challenges that we planned for in our first half results, we are confident in our ability to deliver organic growth in the third and fourth quarters despite the incremental challenges that have developed since we last reported. As always, our unique portfolio of consumer staple products and end markets, our long-term partnerships with our customers, our market-leading innovation, our unique capital deployment model and our low-cost global manufacturing footprint continue to differentiate Silgan in the market and position us to outperform through various macroeconomic and geopolitical backdrops. Turning now to our outlook. We are confirming our estimates for 2026 earnings and free cash flow and our volume expectations for the remainder of the year remain largely unchanged. We continue to expect Dispensing and Specialty Closures organic volume mix to grow by a low to mid-single-digit rate in 2026, driven by low to mid-single-digit growth in our dispensing products. Our Metal Containers volumes are on track to grow by a low single-digit percentage, driven by mid-single-digit growth in pet food and stable volumes for human food. We continue to expect our Custom Containers volumes to be comparable to prior year levels after accounting for volumes exited related to our restructuring plan, with second half volumes higher than the prior year on a comparable basis as we commercialize new business. We remain laser-focused on executing our plans for the year and delivering on our longer-term strategic growth initiatives and are confident in our ability to deliver on both. With that, Shawn will take you through the financials for the quarter and our estimates for the third quarter and full year of 2026. Shawn Fabry: Thank you, Adam. As Adam highlighted, we reported another quarter of strong results in the second quarter of 2026, with adjusted EPS coming in above the midpoint of our expected range due to strong operational EBIT performance and favorable interest expense, which was partially offset by higher corporate expense. Net sales of approximately $1.6 billion increased 7% from the prior year period as a result of the pass-through of higher raw material and other costs, mostly in our Metal Containers business. Total adjusted EBIT for the quarter of $185 million was 4% below the prior year, with higher adjusted EBIT in our Custom Containers segment, offset mostly by higher corporate expense and lower EBIT in the Metal Containers segment. Adjusted EPS of $0.98 decreased $0.03 from the prior year period due to lower adjusted EBIT, which was partially offset by lower interest expense. Turning to our segments. Second quarter sales in our Dispensing and Specialty Closures segment increased 2% versus the prior year, primarily as a result of the pass-through of higher raw material and other costs and foreign currency translation, which was partially offset by lower volume and less favorable mix. Volumes in the quarter were impacted by softer market conditions in Brazil, which contributed to a 1% decline in segment unit volumes and also caused an adverse impact on the mix of products sold. As expected, second quarter Dispensing and Specialty Closures adjusted EBIT was comparable to the prior year levels with favorable price over cost offset by lower volumes and less favorable mix. The combination of lower volumes in Brazil and less favorable mix impacted the second quarter by approximately $5 million. In our Metal Containers segment, sales increased 13% versus the prior year quarter as a result of the contractual pass-through of higher raw material and other manufacturing costs, principally related to steel and aluminum, and volumes were comparable to prior year levels. As Adam mentioned, higher volumes for wet pet food products were offset by the anticipated normalization of order patterns for products in the fruit and vegetable market, a result of the change of ownership in one of our previous customers in this market. Metal Containers adjusted EBIT was below prior year levels, as higher volumes of smaller containers for pet food markets and lower volumes of larger containers for fruit and vegetable markets resulted in a less favorable mix of products sold. In Custom Containers, our results were largely consistent with our expectations as sales increased 3% compared to the prior year quarter due to favorable price mix, which was partially offset by a 4% decline in volumes. As expected, volumes were below prior year levels due to the continued impact of the exit of lower-margin business associated with the planned footprint optimization. Custom Containers adjusted EBIT was above prior year levels as a result of favorable price over cost, including mix, which includes the cost savings associated with the footprint optimization that drove lower volumes. Turning to our outlook for the third quarter of 2026. We are providing an estimate of adjusted earnings in the range of $1.21 to $1.31 per diluted share as compared to the adjusted EPS of $1.22 in the prior year period. At the midpoint, this estimate assumes higher year-over-year adjusted EBIT of approximately $10 million, interest expense of $50 million to $55 million and a tax rate of approximately 25% to 26%. Volumes are expected to be above prior year levels in all segments on a comparable basis. For the full year of 2026, as Adam discussed, we are confirming our estimate of adjusted EPS in the range of $3.73 to $3.93 as compared to $3.72 in 2025. This estimate continues to include low to mid-single-digit percentage total adjusted EBIT growth, corporate expense of approximately $50 million, interest expense of approximately $200 million and an expected tax rate of 25% to 26%. We continue to expect low to mid-single-digit volume growth in Dispensing and Specialty Closures, low single-digit volume growth in Metal Containers and low single-digit comparable volume growth in Custom Containers. Based on our current earnings outlook for 2026, we are confirming our estimate of free cash flow of approximately $450 million, which includes CapEx of approximately $310 million. With that said, we'll open the call for questions. Katie, would you kindly provide directions for the question-and-answer session? Operator: [Operator Instructions] We'll go first to Matt Roberts with Raymond James. Matthew Roberts: Maybe first on Brazil, maybe you could speak to how big this is within DSC, where exactly that weakness was? Shawn, I believe you said it was a 1-point headwind to volume mix in 2Q. Please correct me if I'm wrong, but maybe if that is correct, ex Brazil, what were the drivers of the volume mix declines in that segment? And how does that influence your thinking for second half? Or what gives confidence that there can be an acceleration in second half given some volatility in Brazil? It seems like the volumes are low single digit to mid-single digit now for 2026. Is that all Brazil or anything else to be mindful of? Adam Greenlee: Matt, it's Adam. Maybe we'll both jump in on this one. I think you've got that right. Brazil, maybe to put some context to it, in Brazil, in the region, we had about a 15% volume decline year-over-year and a significant change for us. I'd remind you that we had planned for quite a few unknown activities this year in our overall guidance. So we're pleased to continue to be able to absorb that and deliver the results that we had guided to. So you're right that overall, it's about a 1% decline for us. We talked about volume mix in the segment being down 3%. Really, that's 1% volume, 2% mix, just for some additional clarity there. And so outside of that, the balance of the business essentially was flat, and we feel really good about the performance, and it was right in line with the expectations that we had for the full year. So nothing's changed from that perspective. I think as we look at Q3, what's included in our guidance is a similar impact from Brazil with a recovery starting in Q4 and to be fully recovered as we head into 2027. And maybe just to provide a little context, as we go around the world, Europe was very strong for Dispensing and Specialty Closures. We talked about our performance in fine fragrance. It is largely a European market for us, although we do those products also in Brazil and North America as well. Americas, the North American region, continues to be a little bit of a mixed bag. It's a tougher market for us. I think with the K-shaped economy, we're seeing a variety of performance by segment. Our higher-end segments continue to do very well. I think the low end, we're seeing a good pull-through. It's the middle part of the market that I think with all of the volatility that occurred in Q2, that was a little choppy for us in the second quarter. Matthew Roberts: Super helpful. Appreciate all that color. Maybe one on metal. I believe in the prepared remarks, you noted a more seasonal order patterns for fruit and veggie pack. How did human food perform in 2Q? And given that you did reach that long-term supply agreement, what type of visibility does that give you into 3Q and second half volumes in metal? And any comments on how the pack season is shaping up at present? Adam Greenlee: Yes, sure. As we look at Q2, again, I think as Shawn had said and I had mentioned too, pet food was up 7%. So another just terrific quarter for pet food. The human food side, veg was down kind of double digits and soup was down double digits as well. But I'd say that's pretty much in line with our expectation. As we talked previously, the large customer that we've been discussing for so long in the veg market, those assets came to us in a self-manufactured takeout. And as part of that, the prior owner of those assets, once upon a time, had made cans all year long and essentially sold cans to themselves, I would say, all throughout the year. And as we acquired that business, we maintained that business model. As we now move to a new agreement with the new owners, those cans are going to be sold much closer to the time that they're filled. And therefore, Q3 will be a higher volume quarter for us for that particular customer going forward. From a visibility standpoint, as we look at the fruit and veg pack, particularly in North America, growing conditions have been good thus far. The high heat actually has been beneficial to the crop. I think our expectations are up just a little bit for the veg pack in particular, which will bring into a little more volume later into the pack season, which will drop into Q4 for us. But good visibility, feel confident in our customer forecast for the pack season and our ability to deliver as well. Operator: We'll take our next question from Mike Roxland with Truist Securities. Michael Roxland: Just the first one I had, last quarter, Adam, you mentioned commercializing 2027 product launches and developing '28 and '29 product launches at that point in time. How much of your fragrance and beauty business is already locked in for 2027? And relatedly, at that point in time, you mentioned already working with some of the largest perfume houses and the like. Are there any incremental opportunities to work with potential customers that you're not currently aligned with? Adam Greenlee: Sure. As we look at fragrance, again, it's got that longer developmental cycle. We also have long-term contracts that cover a lot of the franchises that we support. So to your point, Mike, I mean, '27 is -- we've got a pretty good view on it as of right now, and most of that business is contractualized because to meet those launch dates, those products are already in not only past development, but in the commercialization stage now. So I feel really good about that. We are a big player in the fine fragrance or the premium segment, and there's always more opportunity to work with existing customers and others in the space. And I think what has really set us apart now for several years is the differentiated technology that we bring to bear, this customer partnership model that we continue to talk about that we think is very valuable to our customers and particularly this market where the utility of the product that we provide is so critical to the overall package for the fragrance houses. So it continues to be a really good story. We think we've got pretty good clear sight to continued growth in kind of the high single-digit rate for fragrance products around the world and feel really good about our position in that market. Michael Roxland: Got it. And then just one quick one on healthcare. I believe you mentioned it's a $250 million business targeting nasal and ophthalmic applications. Your goal is to double that business organically over the next 3 to 5 years. That implies a CAGR of about 15% to 20% plus per year. So can you help us frame how you intend to drive that type of internal growth? Obviously, you've had some help recently from Weener and tapping into existing commercial relationships domestically. But just wondering how you intend to drive that growth organically over the next 3 to 4 years? Adam Greenlee: Yes. I think when we first started talking about that, the healthcare business for us was about $200 million. It's now already grown to $250 million. So I think we're well on our way. With those long developmental cycles, again, most of that volume is commercial -- or is contractualized, I should say, over the course of the next couple of years. And we continue to have additional opportunities that come to us in our specific areas of nasal and ophthalmic. And I think we've got a competitively advantaged product, and we've got some design and innovation capabilities that we're bringing to bear that are of terrific interest. And I think as we think about potential growth beyond where we are in nasal and ophthalmic, it's taking our technology and applying that to different applications for drug delivery. So feel really good at that. And that is part of the low to mid-single digit this year as well as we've got some healthcare that is ramping up. It was planned to ramp up for the second half of the year all along. And I would say it's probably a little heavier in the fourth quarter as we think now about the second half of the year. Operator: We'll take our next question from Ketan Mamtora with BMO Capital Markets. Ketan Mamtora: Perhaps to start with on that, the resin lag that you talked about, the impact of $10 million, is that still sort of consistent with how you all are thinking right now? Adam Greenlee: Yes. As we -- well, number one, welcome to the space. It's great to have another analyst in the coverage group. So welcome to the coverage. As far as that $10 million, that was a Q2 item that we talked about, and that's kind of the net unrecovered inflation, primarily resin in all fairness, but the net unrecovered inflation that we experienced and it played out essentially exactly as we thought. There's a tremendous amount of volatility, as everybody knows, still in those markets. And that will be unrecovered until such time as resin declines in the future, and we just don't have clear visibility as to when that's going to happen. So it played out pretty much as we expected. It's behind us now. And as resin falls in the future, that will be a benefit back to Silgan at that point. Ketan Mamtora: Got it. No, that's helpful. And then just switching to capital allocation. Curious how you guys are thinking about sort of M&A opportunities? How is the pipeline looking at the moment? And sort of what is the bias between share repurchase and M&A at current sort of valuation levels? Shawn Fabry: Ketan, this is Shawn. I'll jump in and then turn it over to Alex to answer the M&A side of the question. Really, nothing has changed with respect to how we view capital deployment. We have a returns-based decision model that we've been using for many, many years. Everything is benchmarked against share buyback as a hurdle under that model that we consider, and we make the decisions that we feel are best for our shareholders and create the most shareholder value. I think we look at kind of where we're going to land at the end of the year, and we believe we'll be below the midpoint of our target range, so somewhere below that 3x leverage. So we're right where we would like to be with respect to having all options available to us, inclusive of M&A. Alexander Hutter: And Ketan, on the pipeline, look, it remains an active environment on the M&A side, a fairly full pipeline, but it's been that way for some time. I think as you know, what you'll see from us, as Shawn mentioned, is the continued discipline on capital deployment. So that hurdle rate moves around on alternative uses for capital. And ultimately, what we do is we take a long-term view on capital deployment and what will create the most value for our shareholders, and that's what we execute on. Operator: We'll take our next question from Arun Viswanathan with RBC Capital Markets. Arun Viswanathan: Just going to get your thoughts on maybe some of your customer behavior. Do you still see continued promotional activity across some of the major verticals? I guess what could you share on that side? And to the effect that, that could translate into what your outlook on volumes would be, I guess we'd be interested in that as well. Adam Greenlee: Sure. Obviously, a fairly volatile environment today with -- between tariffs and resin pricing and cost being what they have been through the second quarter. So our customers and most CPGs are continuing to pass that inflation on to the consumer. And I think what we've seen the change in 2026 versus maybe prior year is, I think in the prior year coming out of the post-COVID era, our CPG customers for the most part were willing to trade price and margin versus volume. And I think there's a much greater focus on volume right now throughout CPG than with many of our customers. So they are using and they're viewing promotional activity as a just a tool in the toolkit to move volume. And I think with that focus on volume, what we continue to see is where the target promotional activity is being used in the marketplace, it is actually working, and it is driving volume in certain segments. We've continued to point out in our wet pet food segment, particularly in cat, there's been targeted promotional activity for some time. We do think that is driving volume. So it is successful when it's applied in a targeted manner right now for the consumer who continues to seek out value. And we think our customers are aligned to focus more on volume in 2026 than what had been done in the prior years. Arun Viswanathan: Okay. And then also maybe if you can just describe some of the bolt-on M&A opportunities. Do you see that more so in the closures area at this point? Alexander Hutter: Yes, Arun, it's Alex. So we obviously don't comment on any specific assets in the market. I think what you've seen from us over time is that we typically look at anything that's rigid packaging for consumer goods, largely in the developed markets. What that has meant and where we found the highest returns over the past several years has been in the Dispensing and Specialty Closures market, where we've found higher margin, higher growth assets that can generate really strong returns over time. But we look at a broad range of opportunities and that's kind of the opportunity set. Adam Greenlee: And the only thing I would add to that is that I think as we look at our 3 business franchises, they're all performing at a pretty high level right now. And I think they're all capable of dealing with acquisitions if that is in the framework for any of the 3 business segments. I look at the margin profile and the operating leverage that we have. So we feel really good about all 3 of our business segments at this point. Operator: We'll take our next question from Anojja Shah with UBS. Anojja Shah: I wanted to go back to Brazil a little bit. Can you give a little more detail on was it market or end consumer driven? Or was there a share shift or something like that? And I think you mentioned recovery in Q4. What's driving that? Adam Greenlee: Sure. So Brazil, look, it's an inflationary market, and it's taken significant inflation in Brazil for many years now. And so we've done a really good job of passing that through to our customers who obviously pass that through on to the market. So this is all about the market. We've not lost any share. We've got a terrific position in the Brazilian market for our high-value dispensers. I think the thing that maybe we haven't said yet is those high-value dispensers, the volume reduction in Brazil also generated quite a bit of the mix impact that we had in the quarter, too. So really for us, it's a temporary action, I think, with our customers in the market in Brazil. They're expecting some recovery starting late in Q3. We think that will lead into Q4 from a seasonality standpoint. And really, it's the same holiday season kind of discussion that we've had about Brazilian activity as well with our 2 largest customers in Brazil, a good portion of their revenue comes through the holiday events in the Brazilian region. So we feel pretty comfortable that we'll begin that recovery in Q4 and be fully recovered as we head into 2027. Anojja Shah: Great. And I just was wondering if we could put a finer point on your volume expectations for metals in the third quarter. I think you said low single digit for the full year, but I know in the third quarter you have that customer timing issue, which should be a help. But then how do you balance that against a pretty tough comp? Adam Greenlee: Sure. I mean we've got a couple of things working. Obviously, we've got continued growth in pet food that we feel really good about. Veg is going to be up year-over-year with the timing issue coming out of Q2 that we talked about. So I think we're looking kind of low to mid-single-digit volume growth for Metal Containers in Q3. Alexander Hutter: Yes. Anojja, the only other thing I'd point out is, remember, we have the timing. So volumes came out of the second quarter into the third quarter. So that will help the third quarter this year. Operator: We'll take our next question from Daniel Rizzo with Jefferies. Daniel Rizzo: You mentioned your contracts in healthcare and the new contract in metal coatings. I was wondering if these contracts have like clauses, like minimum purchase requirements or how they're kind of structured in that regard? Adam Greenlee: Yes. We don't really talk about any individual contracts, and maybe I'll just take it up one level and talk about Silgan. Particularly in the Metal Containers side of the business, that business has long focused on requirements-based contracts. So you can think of our long-term contracts that we're 100% supply for their requirements. And typically, those never had a minimum purchase requirement. Silgan takes the risk essentially on the volume side, but also gets the full upside of any volume gain. I think in other parts of our business, we've got a variety of contractual language. I think healthcare, to your point, probably has a little more provision around kind of the risk of volume and some minimum requirements because of the capital that's required that goes into those types of investments. Daniel Rizzo: That's very helpful. And then just my second question is, I think you mentioned that corporate expenses were a little elevated in the quarter. And I was wondering if this is kind of how we should think about it going forward or if there's something now with just a lot of the moving pieces that is going to kind of fade away as we move through the end of the year and into 2027 and beyond. Shawn Fabry: Sure. I'll take that one. As we mentioned, we're constantly looking at everything, rigid packaging. So this particular category versus spend category can be lumpy over the years in terms of any single quarter. And overall, we feel pretty confident with the $50 million guidance that we're giving for the full year, and that includes the increase that we experienced in H2 -- for H1, excuse me. Operator: [Operator Instructions] And with no additional questions in queue, that will conclude our question-and-answer session. I'd like to turn the call back over to Adam Greenlee for any additional or closing remarks. Adam Greenlee: Great. Thank you very much, Katie. Thank you all for your interest in Silgan. We're pleased that we've delivered a first half that's slightly ahead of our original expectations as we came into the year and confident in our delivery of our second half performance. Thank you. Operator: Thank you. That will conclude today's call. We appreciate your participation. Before you buy stock in Silgan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Silgan wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!* Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 29, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Silgan (SLGN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Ball Corporation BALL is scheduled to report second-quarter 2026 results on Aug. 4, before the opening bell. The Zacks Consensus Estimate for BALL’s net sales is pegged at $3.67 billion, indicating 9.8% growth from the year-ago reported figure. The consensus estimate for earnings is pegged at 99 cents per share, which has moved up 1% in the past 60 days. The estimate indicates year-over-year growth of 10%. Image Source: Zacks Investment Research Ball Corp.’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.79%. Image Source: Zacks Investment Research Our proven model predicts an earnings beat for Ball Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below. You can uncover the best stocks before they are reported with our Earnings ESP Filter. Earnings ESP: Ball Corp. has an Earnings ESP of +0.98%. Zacks Rank: BALL currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Ball Corp.’s global aluminum packaging shipments increased 0.8% year over year in first-quarter 2026, driven by low-single-digit growth in North and Central America and EMEA, partly offset by a mid-single-digit decline in South America. Management noted that enterprise volumes accelerated to the mid-single digits in April, with South America posting a 20% year-over-year increase, marking a sharp turnaround from the first-quarter decline. For full-year 2026, the company expects enterprise volumes to trend toward the upper end of its long-term 2-3% growth range. North and Central America volumes are expected to remain near the lower end of the 1-3% range due to capacity constraints, while EMEA is projected to exceed its 3-5% target, supported by the acquisition of a majority stake in European beverage can manufacturer Benepack. South America volumes are expected to grow 4-6% for the year. Our second-quarter 2026 estimate for the Beverage Packaging, North and Central America segment’s net sales is pegged at $1.66 billion, indicating a 2.8% year-over-year rise. We expect the segment’s volume to increase 0.8% year over year. We expect a 4% year-over-year increase in the segment’s operating income to $225 million. Our model predicts the Beverage Packaging, EMEA segment’s sales to be around $1.2 billion, indicating 8.1% growth from the year-ago quarter’s reported figure. We expect volume growth of 6.1% for this segment. The segment’s operating income is projected at $161.2 million, indicating 6% year-over-year growth. For the Beverage Packaging, South America segment, we estimate net sales of $588.9 million, up 23.5% year over year. Shipment volumes are expected to surge 20.4%, representing a significant rebound from the 2.6% decline recorded in the first quarter and aligning with management's commentary on improving demand. The consensus estimate for the segment’s operating income is pegged at $53 million, indicating a 5.9% rise from the year-ago quarter’s actual. Ball Corp. is likely to have faced higher input costs during the quarter due to tariff-related pressures. However, stronger shipment volumes, favorable revenue growth, ongoing cost-reduction initiatives, and continued productivity and efficiency improvements are expected to have largely offset these headwinds, supporting margin expansion in the quarter. The company’s shares have gained 15% in the past year compared with the industry's 12.1% growth. Image Source: Zacks Investment Research Crown Holdings, Inc. CCK reported second-quarter 2026 adjusted earnings of $2.49 per share, up 15.8% year over year. The figure surpassed the Zacks Consensus Estimate of $2.15 by 15.81%. Including one-time items, the company reported earnings of $2.23 per share in the quarter under review compared with $1.56 in the year-ago quarter. Crown Holdings’ net sales increased 16.5% to $3.67 billion and beat the consensus estimate of $3.34 billion by 9.88%. Global beverage can volumes rose 5%, led by 6% growth in Europe and 5% growth in the Americas. This was partially offset by softer demand in Latin America. Crown Holdings increased its full-year adjusted earnings guidance to $8.30-$8.50 per share from the previously mentioned $7.90-$8.30. Silgan Holdings SLGN reported adjusted earnings per share of 98 cents in the second quarter of 2026, beating the Zacks Consensus Estimate of 96 cents. This marked a 3% decline from earnings of $1.01 per share in the year-ago quarter. Including one-time items, the company reported earnings of 72 cents per share in the quarter under review compared with 83 cents in the second quarter of 2025. Silgan Holdings posted revenues of $1.64 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate of $1.62 billion by 1.54%. This compares with year-ago revenues of $1.54 billion. Silgan maintained its guidance for adjusted earnings per share in the range of $3.73-$3.93 for 2026, a 3% year-over-year increase at the midpoint. Here is one Industrial Products stock, which according to our model, also has the right combination of elements to post an earnings beat in its upcoming release. Ferguson Enterprises Inc. FERG, slated to release second-quarter 2026 results on Aug. 10, has an Earnings ESP of +1.22% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for Ferguson’s second-quarter 2026 earnings is pegged at $3.23 per share. Ferguson has a trailing four-quarter average surprise of 6.5%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ball Corporation (BALL) : Free Stock Analysis Report Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report Ferguson plc (FERG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed Q2 performance to strong execution in high-value segments like fine fragrance and wet pet food, which helped offset geopolitical and inflationary headwinds. Dispensing and Specialty Closures (DSC) faced a 15% volume decline in Brazil due to inflationary market conditions, though management views this as a temporary market dynamic rather than a loss of share. Metal Containers volume was flat as 7% growth in wet pet food was offset by a strategic shift in order patterns for a major vegetable customer following a change in ownership. The company successfully implemented commercial actions to recover cost increases from raw material and other inflation, maintaining a focus on price-over-cost management. Custom Containers results reflected a deliberate strategy to exit lower-margin business as part of a footprint optimization program, leading to improved segment EBIT despite lower volumes. Management noted a shift in CPG customer behavior toward volume growth over price/margin trade-offs, supported by targeted promotional activity in segments like cat food. Full-year 2026 adjusted EPS guidance is confirmed, assuming low to mid-single digit organic volume growth in DSC and low single-digit growth in Metal Containers. Q3 guidance assumes a year-over-year Adjusted EBIT increase of approximately $10 million, driven by higher volumes across all segments on a comparable basis. Management expects a recovery in the Brazilian market to begin in late Q3, with a return to full performance levels anticipated by 2027. Metal Containers volume in Q3 is projected to grow at a low to mid-single digit rate, aided by the timing shift of vegetable pack orders from Q2 into Q3. The healthcare business, currently at $250 million, is expected to ramp up in the second half of the year with a focus on nasal and ophthalmic drug delivery applications. A $10 million net unrecovered inflation impact, primarily from resin volatility, was recorded in Q2; management expects this to reverse when resin prices eventually decline. The transition to a new long-term supply agreement in the vegetable market concludes a multi-year disruption, aligning production closer to customer fill times. Corporate expenses were elevated in the first half due to lumpy spending related to strategic evaluations, but full-year guidance of $50 million remains unchanged. Leverage is expected to finish the year below 3x, providing flexibility for a returns-based capital allocation strategy between M&A and share repurchases. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The 15% regional decline was driven by market-wide inflation impacting consumer demand, not competitive share loss. Management expects recovery to start late in Q3 and gain momentum during the Q4 holiday season, which is a critical period for their two largest Brazilian customers. Growing conditions have been favorable, with high heat actually benefiting crop yields thus far. The new supply agreement shifts volume into Q3 and Q4, providing better alignment with the actual harvest and fill season. Growth is being driven by long-term contracts for nasal and ophthalmic products that are currently in the commercialization phase. Management aims to double this business by applying existing dispensing technology to new drug delivery applications. All deployment is benchmarked against share buybacks as a hurdle rate using a returns-based decision model. The M&A pipeline remains active, specifically targeting rigid packaging for consumer goods in developed markets that offer high margins.