Silgan Holdings' Q2 Earnings Call: Record Financials Amid External Challenges

Silgan Holdings reported record adjusted EBIT of $193mln, up 17% YoY, and aims to exceed $1bln in adjusted EBITDA by end-2025. The Dispensing and Specialty Closures segment saw a 24% sales increase, while the Metal Containers segment experienced mid-single-digit volume growth in pet food. However, the Food and Beverage Specialty Closures segment faced a 3% volume decline due to poor weather, and the company revised its full-year adjusted EPS guidance down to $3.85-$4.05.

Silgan Holdings (SLGN) reported its second-quarter (Q2) 2025 financial results, highlighting a record adjusted EBIT of $193 million, up 17% year-over-year (YoY). The company aims to exceed $1 billion in adjusted EBITDA by the end of 2025. The Dispensing and Specialty Closures segment saw a 24% sales increase, while the Metal Containers segment experienced mid-single-digit volume growth in pet food. However, the Food and Beverage Specialty Closures segment faced a 3% volume decline due to poor weather, leading the company to revise its full-year adjusted EPS guidance down to a range of $3.85–$4.05 [1].

Key highlights of Silgan's Q2 2025 performance include:

- Adjusted EBIT: Record adjusted EBIT of $193 million, a 17% YoY increase.
- Segment Performance:
- Dispensing and Specialty Closures: Sales rose 24%, driven by the Weener integration and higher organic Dispensing product volumes.
- Metal Containers: Sales increased 4%, with pet food volumes growing by a mid-single-digit percentage.
- Custom Containers: Sales declined 3%, largely due to exits from lower-margin business, but adjusted EBIT increased 11% YoY.
- Full-Year Outlook: Adjusted EPS range revised to $3.85–$4.05 for 2025, a 9% increase at the midpoint over 2024 actuals. Free cash flow guidance was lowered to approximately $430 million, up 10% from 2024.

Management attributed the downward revision in adjusted EPS guidance to two factors: an expected $10 million reduction in Dispensing and Specialty Closures adjusted EBIT due to weaker North American hot-fill beverage volumes from adverse weather, and a separate $10 million impact in Metal Containers adjusted EBIT from a major North American customer bankruptcy [1].

The company expects ongoing growth in Dispensing and pet food, and stable soup and fruit segment volumes in 2025, despite short-term disruptions from discrete weather and customer events. Silgan's President Adam Greenlee stated that the company's position targets a 9% YoY adjusted EPS gain at the midpoint for 2025, supported by record first-half adjusted EBIT and record first-half adjusted EBITDA for the first half of 2025 [1].

References:
[1] https://www.fool.com/earnings/call-transcripts/2025/07/30/silgan-slgn-q2-2025-earnings-call-transcript/