Silgan Holdings’ second quarter results were met with a sharply negative market reaction, as investors digested broad-based headwinds despite top-line growth ahead of expectations. Management attributed performance to robust expansion in Dispensing and pet food packaging, but also highlighted setbacks in the North American beverage closures business, which faced weaker demand due to unusually wet and cool weather. CEO Adam Greenlee described the quarter as shaped by “significant organic growth in Dispensing and pet food markets,” but emphasized that “volumes for our North American Beverage Specialty Closure products, particularly in the hot fill markets, fell short of our expectations entering the quarter.” Additionally, the bankruptcy of a major Metal Containers customer contributed to operational caution and tempered the company’s near-term outlook.
Is now the time to buy SLGN? Find out in our full research report (it’s free).
Silgan Holdings (SLGN) Q2 CY2025 Highlights:
- Revenue: $1.54 billion vs analyst estimates of $1.53 billion (11.4% year-on-year growth, 0.5% beat)
- Adjusted EPS: $1.01 vs analyst expectations of $1.03 (2.1% miss)
- Adjusted EBITDA: $253 million vs analyst estimates of $260.8 million (16.4% margin, 3% miss)
- Management lowered its full-year Adjusted EPS guidance to $3.95 at the midpoint, a 3.7% decrease
- Operating Margin: 10.9%, in line with the same quarter last year
- Organic Revenue rose 2.3% year on year vs analyst estimates of 2.7% growth (40.5 basis point miss)
- Market Capitalization: $4.97 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Silgan Holdings’s Q2 Earnings Call
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Matthew Roberts (Raymond James) sought clarity on the magnitude of customer bankruptcy impact. CEO Adam Greenlee explained Silgan’s exposure is limited by on-site supply advantages and contingency planning, but acknowledged that volume at co-packers not supplied by Silgan may not return immediately.
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George Staphos (Bank of America) pressed for details on legacy Dispensing growth versus acquired Weener volumes. Greenlee confirmed legacy Dispensing products grew mid- to high single digits, in line with expectations, and said parsing out Weener’s specific contribution was increasingly complex post-integration.
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Ghansham Panjabi (Baird) asked if guidance was only affected by beverage closures and the customer bankruptcy. Greenlee affirmed these were the sole drivers of the revised outlook, with other business segments continuing to perform as planned.
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Anthony Pettinari (Citi) inquired about the effect of tariffs on input costs and competitive dynamics. Greenlee and CFO Kim Ulmer emphasized that most tariff-induced cost increases are contractually passed through to customers, minimizing direct margin exposure.
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Gabe Hajde (Wells Fargo Securities) questioned whether the customer bankruptcy could trigger further volume or EBITDA losses in 2026. Greenlee responded that additional downside is possible depending on asset ownership, but expressed confidence in Silgan’s ability to adjust capacity or redeploy assets as needed.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will closely monitor (1) the pace of recovery in North American beverage closure volumes as weather normalizes and promotional activity resumes, (2) the outcome of the Metal Containers customer bankruptcy and any resulting changes in volume or facility utilization, and (3) continued growth in Dispensing and pet food categories, which management identified as key strategic priorities. Execution on cost savings and raw material management will also be a focus.
Silgan Holdings currently trades at $46.74, down from $55.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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