second quarter 2026
Filed Jul 29, 2026Second-quarter net sales rose 7% to $1.64 billion, while adjusted net income per diluted share was $0.98 versus $1.01; the Company confirmed full-year 2026 adjusted EPS and free-cash-flow estimates.
Sales increased 7%, supported primarily by contractual raw-material cost pass-through, and Custom Containers adjusted EBIT increased. However, net income, GAAP diluted EPS, and adjusted diluted EPS were below the prior-year quarter, while Metal Containers and Dispensing and Specialty Closures adjusted EBIT declined or was comparable. Full-year adjusted EPS and free-cash-flow estimates were confirmed.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $1.64 billion | – | $104.1 million, or 7% |
| Net incomeGAAP | $75.8 million | – | – |
| Net income per diluted shareGAAP | $0.72 per diluted share | – | – |
| Adjusted net income per diluted sharenon-GAAP | $0.98 | – | – |
| Adjustments increasing net income per diluted sharenon-GAAP | $0.26 | – | – |
| Income before interest and income taxes (EBIT)other | $151.0 million | – | a decrease of $16.5 million |
| Rationalization chargesother | $18.2 million | – | – |
| Corporate expenseother | $15.4 million | – | an increase of $4.8 million |
| Interest and other debt expenseother | $47.1 million | – | a decrease of $1.6 million |
| Effective tax rateGAAP | 28.1% | – | – |
| Adjusted effective tax ratenon-GAAP | 25.2% | – | – |
| Dispensing and Specialty Closures EBITother | $85.5 million | – | – |
| Metal Containers EBITother | $55.4 million | – | – |
| Custom Containers EBITother | $25.5 million | – | – |
| Dispensing and Specialty Closures Adjusted EBITnon-GAAP | $107.6 million | – | – |
| Metal Containers Adjusted EBITnon-GAAP | $65.9 million | – | – |
| Custom Containers Adjusted EBITnon-GAAP | $27.2 million | – | increased $2.3 million |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Dispensing and Specialty ClosuresNet sales reflected pass through of higher raw material and other costs of 3% and favorable foreign currency translation of 2%, partially offset by less favorable volume/mix of 3%. Lower market volumes of certain dispensing products, predominantly in Brazil, also resulted in a less favorable mix of products sold. | $713.9 million | – | $11.7 million, or 2% |
| Metal ContainersNet sales increased from improved price/mix due to contractual pass through of higher raw material and other manufacturing costs. Metal container volume was comparable to the prior year period, with a high single digit increase in pet-food volumes offset by more normal seasonal fruit and vegetable pack order patterns and lower soup-market volumes. | $763.9 million | – | $87.8 million, or 13% |
| Custom ContainersMore favorable price/mix was partially offset by lower volumes of 4%. The exit of lower margin business in 2025 associated with footprint optimization plans impacted volumes by approximately 4%. | $165.5 million | – | $4.6 million, or 3% |
full year of 2026 and third quarter of 2026 outlook
- NoteFull year 2026 adjusted net income per diluted share: $3.73 to $3.93
- NoteFull year 2026 adjusted net income per diluted share: a 3% increase at the midpoint of the range over adjusted net income per diluted share of $3.72 in 2025
- NoteFull year 2026 Adjusted EBIT: expected to be higher than 2025 levels in all segments
- NoteFull year 2026 free cash flow: approximately $450 million
- Note2025 free cash flow comparison: $445.2 million
- Note2026 capital expenditures: approximately $310 million
- NoteThird quarter of 2026 adjusted net income per diluted share: $1.21 to $1.31
- NoteThird quarter of 2025 adjusted net income per diluted share comparison: $1.22
What drove it
- Second-quarter net sales increased primarily because of the contractual pass through of higher raw material costs.
- The Dispensing and Specialty Closures franchise achieved high single digit volume growth in products for fragrance markets and received additional contractual new business awards during the quarter.
- Metal Containers delivered high single digit volume growth in products for pet food markets and executed a new long-term supply agreement with a large customer in the vegetable market.
- Custom Containers profit growth reflected favorable price/cost including mix and benefits from previously announced cost reduction activities.
- Interest and other debt expense decreased primarily due to lower weighted average outstanding borrowings in the current year period.
Concerns
- Adjusted net income per diluted share was $0.98, compared with $1.01 in the second quarter of 2025.
- Net income was $75.8 million, compared with $89.0 million, and EBIT was $151.0 million, compared with $167.5 million.
- Rationalization charges were $18.2 million, compared with $9.9 million.
- Dispensing and Specialty Closures adjusted EBIT was comparable to the prior-year quarter as more favorable price/cost was offset by less favorable volume/mix, including lower market volumes predominantly in Brazil.
- Metal Containers adjusted EBIT decreased primarily because of less favorable price/cost including mix, in part due to higher volumes of smaller pet-food containers and lower volumes for fruit and vegetable markets.
- Corporate expense increased primarily related to corporate development activities.
- The effective tax rate was 28.1%, compared with 25.6%.
What to watch
- Execution against the confirmed full-year 2026 adjusted net income per diluted share range of $3.73 to $3.93.
- Whether Adjusted EBIT is higher than 2025 levels in all segments, as expected by the Company.
- Third-quarter adjusted net income per diluted share relative to the guided range of $1.21 to $1.31.
- Dispensing and Specialty Closures volume/mix, including market volumes of dispensing products in Brazil.
- Metal Containers pricing, mix, pet-food volumes, fruit and vegetable seasonal ordering, and soup-market volumes.
- Realization of the approximately $450 million free-cash-flow estimate alongside approximately $310 million of capital expenditures.
Analysis
Silgan reported second-quarter net sales of $1.64 billion, up $104.1 million, or 7%, from $1.54 billion. Management attributed the increase primarily to contractual pass through of higher raw material costs. Profit measures were lower than the prior-year quarter: net income was $75.8 million versus $89.0 million, GAAP diluted EPS was $0.72 versus $0.83, and adjusted diluted EPS was $0.98 versus $1.01. EBIT was $151.0 million compared with $167.5 million, while rationalization charges increased to $18.2 million from $9.9 million.
Segment performance reflected differing demand and mix conditions. Dispensing and Specialty Closures sales increased 2% to $713.9 million, with cost pass-through and favorable currency translation more than offsetting less favorable volume/mix. Its adjusted EBIT of $107.6 million was comparable with $107.9 million, as favorable price/cost was offset by lower market volumes of certain dispensing products, predominantly in Brazil. Management separately highlighted high single digit volume growth in products for fragrance markets and additional contractual new business awards.
Metal Containers delivered the largest sales increase, rising 13% to $763.9 million, driven by price/mix associated with contractual pass through of higher raw material and manufacturing costs. Volume was comparable with the prior-year period: high single digit pet-food growth was offset by seasonal fruit and vegetable ordering patterns and lower soup volumes. Adjusted EBIT decreased to $65.9 million from $70.8 million because of less favorable price/cost including mix. Custom Containers sales rose 3% to $165.5 million despite lower volumes of 4%, and adjusted EBIT increased to $27.2 million from $24.9 million on favorable price/cost including mix and cost-reduction benefits.
The cost and financing picture was mixed. Corporate expense increased to $15.4 million from $10.6 million, primarily on corporate development activities, while interest and other debt expense decreased $1.6 million to $47.1 million because of lower weighted average outstanding borrowings. The effective tax rate increased to 28.1% from 25.6%, although the adjusted effective tax rate was 25.2% compared with 25.3%.
Management confirmed full-year adjusted EPS guidance of $3.73 to $3.93 and expects Adjusted EBIT to be higher than 2025 levels in all segments. It also confirmed approximately $450 million of free cash flow and approximately $310 million of capital expenditures for 2026. For the third quarter, the Company guided adjusted diluted EPS to $1.21 to $1.31, compared with $1.22 in the third quarter of 2025. The key reported tension is that sales growth has been driven primarily by pass-through pricing while the quarter's adjusted EPS and EBIT were below prior-year levels, leaving price/cost, product mix and segment-volume execution central to the remainder of the year.
Management, verbatim
Silgan reported another quarter of strong financial results in the second quarter that were above the midpoint of our expected range and highlighted our focused operational execution, as we continue to deliver on our plan for 2026.
Adam Greenlee, President and CEO
Our teams remain focused on our near and long term strategic growth initiatives that position the Company to deliver organic growth well into the future.
Adam Greenlee, President and CEO
The Silgan team continued to drive success in the second quarter, and our momentum into the second half of 2026 remains strong despite experiencing dynamic and evolving operating conditions against a backdrop of geopolitical and macroeconomic uncertainty.
Adam Greenlee, President and CEO
Not in the filing
stated, not guessed- The filing text is truncated immediately after the heading for the condensed consolidated statements of income; the referenced financial tables and non-GAAP reconciliations are not included.
- GAAP gross profit and gross margin.
- GAAP operating income.
- Operating cash flow for the reported quarter.
- Free cash flow for the reported quarter.
- Cash and cash equivalents balance.
- Debt balance.
- Share repurchases and dividends.
- Prior-quarter comparisons for reported second-quarter metrics.
- Revenue, gross-margin, operating-expense, and tax-rate guidance.
- Quantitative segment revenue or profit guidance.
- A prior earnings-release outlook for comparison.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.