Silgan (SLGN) Q3 2026 earnings summary

Executive summary

• Record adjusted diluted EPS of $1.31, up 7% YoY and at the high end of guidance; adjusted EBIT rose 6% to $235.0M despite muted demand and inflation.

• Portfolio transformation advanced with the proposed Trivium acquisition and AIP partnership; FY 2026 adjusted EPS guidance increased, with earnings and free cash flow growth anticipated in 2027.

Financial highlights

• Q3 net sales rose 1.6% to $2.040B, mainly from pass-through of higher raw-material and other costs; favorable Custom Containers mix was partly offset by lower volumes and ~$5M of unfavorable FX translation.

• Adjusted EBIT increased to $235.0M from $221.4M; adjusted EPS was $1.31 versus $1.22, while higher EBIT and lower interest expense more than offset a higher adjusted tax rate.

• GAAP net income declined to $105.0M from $113.3M and diluted EPS to $0.99 from $1.06; Q3 gross profit was $328.6M and gross margin was 16.1% versus 16.3%.

• Nine-month net sales rose 4.6% to $5.245B, while net income declined to $243.8M from $270.2M and diluted EPS to $2.30 from $2.52.

• Corporate expense, excluding announced acquisition costs, was approximately $6M below the prior-year quarter, partly due to reversal of Trivium-related corporate development costs.

Outlook and guidance

• FY 2026 adjusted diluted EPS guidance increased to $3.83-$3.93; the midpoint implies 4% growth over 2025 adjusted EPS of $3.72, with adjusted EBIT expected to exceed 2025 levels in all segments.

• Q4 adjusted diluted EPS guidance is $0.76-$0.86 versus $0.67 in Q4 2025; the midpoint assumes adjusted EBIT growth of ~$10M-$15M YoY and a 25%-26% tax rate.

• FY 2026 volumes are expected to be comparable to 2025 across all three segments; Q4 volumes are expected to be comparable YoY in each segment.

• FY 2026 free cash flow estimate remains ~$450M, with capital expenditures of ~$310M; 2027 outlook calls for organic earnings and modest free cash flow growth.

• Q4 guidance assumes interest expense of $45M-$50M; FY 2026 assumptions include ~$185M of interest expense and a 25%-26% tax rate, with adjusted corporate expense of ~$45M-$50M.