Sustainable rigid packaging solutions provider Silgan has reported decreased profits in the third quarter (Q3) of 2026 despite sales growth due to the contractual pass-through of higher raw material costs.
Net income declined to $105m in the quarter, or $0.99 per diluted share, from $113.3m, or $1.06 per diluted share, a year earlier.
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However, the company’s net sales soared 2% year-on-year to $2.04bn.
Q3 earnings before interest and taxes (EBIT) fell to $191.7m from $198.7m in the prior-year quarter.
The dispensing and speciality closures, metal containers, and custom containers businesses generated EBIT of $86.4m, $99.5m, and $21.2m, respectively.
The US group recorded $10.3m in costs related to announced acquisitions while rationalisation charges increased to $17.1m from $7.2m.
Corporate expense rose by $4.4m to $15.4m. Interest and other debt expense decreased by $2.7m to $47.3m, driven by lower average borrowings.
Dispensing and speciality closures sales increased 1% to $699.2m while adjusted EBIT for the segment declined 2% to $111.2m.
Silgan reported that unit volumes remained steady compared to the prior year, supported by “mid-single-digit” growth in fragrance market dispensing products and “double-digit” growth in North American prescription pharma dispensing products.
Sales from metal containers rose 1% to $1.17bn. Volume declined 4% as lower soup demand was partly offset by higher fruit, vegetable, and pet food volumes. Adjusted EBIT for the segment increased 10% to $105.2m.
Custom Containers revenue climbed 4% to $166.8m, with adjusted EBIT increasing 3% to $23.7m. The 2025 exit from lower-margin business under footprint optimisation plans reduced volumes by about 3%.
Silgan raised its 2026 adjusted earnings outlook to $3.83-$3.93 per diluted share, from $3.73-$3.93, and expects EBIT to exceed 2025 levels across all segments. It reaffirmed approximately $450m in free cash flow and expects capital expenditure of $310m.
Silgan president and CEO Adam Greenlee said: “We continue to believe our portfolio of consumer staple products remains well positioned to outpace growth in our end markets, and our company is poised to deliver earnings and free cash flow growth again in 2026 and beyond.”
Earlier this month, Silgan partnered with private equity company American Industrial Partners to purchase Trivium Packaging in an all-cash deal worth $3.4bn.
