Silgan Holdings Inc (NYSE:SLGN) Posts Mixed Q3 2025 Results as Cautious Outlook Sparks Stock Selloff

Silgan Holdings Inc (NYSE:SLGN) reported financial results for the third quarter of 2025 that presented a mixed picture for investors. The company surpassed revenue expectations but delivered a cautious outlook for the coming months, leading to a sharp negative reaction in the stock during pre-market trading.

Earnings and Revenue Versus Estimates

The rigid packaging supplier posted a strong top-line performance for the quarter, though its bottom-line results and forward guidance appear to be the focal points for the market's disappointment.

• Revenue: Q3 2025 revenue reached $2.01 billion, a 15.1% increase compared to the $1.75 billion reported in the prior year period. This figure came in above analyst estimates of $1.97 billion.
• Earnings Per Share (EPS): Adjusted net income per diluted share was $1.22. This was essentially in line with the analyst consensus estimate of $1.22, showing a modest 1% increase from the $1.21 reported in Q3 2024.
• Market Reaction: Despite the revenue beat, the stock was down approximately 10.6% in pre-market activity. This suggests investor concern is centered on factors beyond the immediate quarterly figures, primarily the company's revised outlook for the remainder of the year.

Revised 2025 Outlook and Analyst Comparisons

A key driver of the market's reaction was the company's decision to lower its full-year adjusted EPS guidance. Management now expects 2025 adjusted EPS in the range of $3.66 to $3.76, down from a previous forecast of $3.85 to $4.05. At the midpoint of this new range ($3.71), the guidance implies a 3% year-over-year increase from the 2024 figure of $3.62.

This revised outlook falls short of the more optimistic growth trajectory the market had previously anticipated. For the fourth quarter of 2025, the company provided an adjusted EPS forecast of $0.62 to $0.72, which is significantly below the $0.85 per share reported in the fourth quarter of 2024. The reduction is attributed to several factors:

• Lower volume expectations for certain products in North American personal care and home care markets.
• A higher anticipated full-year tax rate of approximately 24.5%.
• Increased interest expense related to recent debt issuances.

Third Quarter 2025 Performance Summary

The earnings release highlighted several operational successes in the quarter, demonstrating the underlying strength of the business despite the cautious forward look.

• Overall Growth: Net sales increased by 15% year-over-year to $2.01 billion, driven by the inclusion of the Weener acquisition and the pass-through of higher raw material costs. Net income rose to $113.3 million, or $1.06 per diluted share, from $100.1 million, or $0.93 per diluted share, in the same period last year.
• Segment Performance:
  • Dispensing and Specialty Closures: This segment achieved a record quarterly performance, with net sales up 23% and Adjusted EBIT increasing 19% to $113.5 million. Growth was fueled by the Weener acquisition and strong organic volumes in high-value fragrance dispensing products.
  • Metal Containers: Net sales grew 13%, but Adjusted EBIT saw a slight decrease to $95.8 million, primarily due to less favorable price/cost dynamics, despite higher volumes in pet food products.
  • Custom Containers: The segment delivered record third-quarter Adjusted EBIT of $23.1 million, driven by favorable price/cost mix and lower operating costs.

President and CEO Adam Greenlee commented on the results, stating, "Our third quarter results continued to exhibit the success of our strategic growth initiatives, the resilience of our business through dynamic customer and end market conditions and the benefits of our disciplined capital deployment model."

Conclusion

Silgan Holdings' third-quarter results underscore the company's ability to grow revenue organically and through acquisition, with particular strength in its dispensing and closures segment. However, the market's negative reaction highlights the weight that future guidance carries. The downward revision to the full-year and fourth-quarter earnings forecast, driven by volume softness in specific North American markets and higher costs, has overshadowed the solid quarterly performance. Investors will be watching closely to see if the company's expectation for a return to earnings growth in 2026 materializes as planned.

For a detailed look at historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.