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Why Is Silgan (SLGN) Down 6.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Silgan Holdings (SLGN - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Silgan due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Silgan Holdings reported adjusted earnings of 78 cents per share in the first quarter 2026, beating the Zacks Consensus Estimate of 74 cents by 5.4%. The bottom line decreased 4.9% year over year.
Including one-time items, earnings were 60 cents per share compared with 63 cents in the prior-year quarter.
Total revenues increased year over year to $1.56 billion from the prior-year quarter’s $1.47 billion. The top line beat the Zacks Consensus Estimate of $1.49 billion by 4.5%.
SLGN’s Q1 Costs & Margins
In first-quarter 2026, the cost of goods sold increased 8.3% year over year to around $1.3 billion. The gross profit decreased 1.7% to $265.8 million. The gross margin was 17% compared with the prior-year quarter’s 18.4%.
Selling, general and administrative expenses amounted to $131.2 million, up 1.6% year over year. The company reported an adjusted operating income of $152 million compared with $158.3 million in the prior-year quarter. The operating margin was 9.7%, down from the prior-year quarter’s 10.8%.
Silgan Holdings’ Q1 Segment Performances
Revenues in the Dispensing and Specialty Closures segment rose 2% year over year to $685.3 million. Results were driven by the contractual pass-through of higher raw material and other costs and favorable foreign currency translation, which helped offset the weather-related impact on production.
The adjusted EBITDA for the segment was $136.8 million, up 1.3% from $135.1 million in the first quarter of 2025. Segment adjusted EBIT fell 3% to $96.1 million due to less favorable volume and mix and less favorable price/cost, including inventory effects in its European metal closures operations.
The Metal Containers segment’s revenues improved 15% year over year to $724.9 million due to improved price/mix resulting from contractual pass-through of higher raw material and other manufacturing costs and higher volumes. The segment’s adjusted EBITDA was $69.8 million compared with $68.8 million in the prior-year quarter. Adjusted EBIT edged up 0.4% to $49.8 million from $49.6 million, driven by higher volumes, partly offset by weaker pricing and product mix in certain markets.
In the Custom Containers segment, revenues totaled $151.1 million, down 9.6% from $167.2 million in the year-ago quarter, primarily due to lower volumes. Volumes bore the impact of the company’s decision to exit businesses with lower margins in 2025 as part of Silgan’s footprint optimization plans. The segment reported an adjusted EBITDA of $29.7 million, down from the prior-year quarter’s $33.3 million. Segment adjusted EBIT declined to $21.7 million from $24.6 million, mainly due to lower sales volumes.
SLGN’s Cash Flow & Cash Position
The company had cash and cash equivalents of $435.4 million at the end of the first quarter of 2026, compared with $353 million at the end of the first quarter of 2025. SLGN used $799.6 million of cash in operating activities in the first quarter of 2026 compared with $683.4 million in the prior-year period. Capital expenditures for the reported quarter were $82.4 million.
Silgan Holdings’ 2Q & 2026 Outlook
The company increased its adjusted earnings per share guidance to $3.73-$3.93 for 2026, indicating a 3% year-over-year increase at the midpoint. For second-quarter 2026, SLGN anticipates adjusted EPS to be between 92 cents and $1.02. It posted EPS of $1.01 in the year-ago quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Silgan has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Silgan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Silgan (SLGN) Down 6.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Silgan Holdings (SLGN - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Silgan due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Silgan Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Silgan Holdings reported adjusted earnings of 78 cents per share in the first quarter 2026, beating the Zacks Consensus Estimate of 74 cents by 5.4%. The bottom line decreased 4.9% year over year.
Including one-time items, earnings were 60 cents per share compared with 63 cents in the prior-year quarter.
Total revenues increased year over year to $1.56 billion from the prior-year quarter’s $1.47 billion. The top line beat the Zacks Consensus Estimate of $1.49 billion by 4.5%.
SLGN’s Q1 Costs & Margins
In first-quarter 2026, the cost of goods sold increased 8.3% year over year to around $1.3 billion. The gross profit decreased 1.7% to $265.8 million. The gross margin was 17% compared with the prior-year quarter’s 18.4%.
Selling, general and administrative expenses amounted to $131.2 million, up 1.6% year over year. The company reported an adjusted operating income of $152 million compared with $158.3 million in the prior-year quarter. The operating margin was 9.7%, down from the prior-year quarter’s 10.8%.
Silgan Holdings’ Q1 Segment Performances
Revenues in the Dispensing and Specialty Closures segment rose 2% year over year to $685.3 million. Results were driven by the contractual pass-through of higher raw material and other costs and favorable foreign currency translation, which helped offset the weather-related impact on production.
The adjusted EBITDA for the segment was $136.8 million, up 1.3% from $135.1 million in the first quarter of 2025. Segment adjusted EBIT fell 3% to $96.1 million due to less favorable volume and mix and less favorable price/cost, including inventory effects in its European metal closures operations.
The Metal Containers segment’s revenues improved 15% year over year to $724.9 million due to improved price/mix resulting from contractual pass-through of higher raw material and other manufacturing costs and higher volumes. The segment’s adjusted EBITDA was $69.8 million compared with $68.8 million in the prior-year quarter. Adjusted EBIT edged up 0.4% to $49.8 million from $49.6 million, driven by higher volumes, partly offset by weaker pricing and product mix in certain markets.
In the Custom Containers segment, revenues totaled $151.1 million, down 9.6% from $167.2 million in the year-ago quarter, primarily due to lower volumes. Volumes bore the impact of the company’s decision to exit businesses with lower margins in 2025 as part of Silgan’s footprint optimization plans. The segment reported an adjusted EBITDA of $29.7 million, down from the prior-year quarter’s $33.3 million. Segment adjusted EBIT declined to $21.7 million from $24.6 million, mainly due to lower sales volumes.
SLGN’s Cash Flow & Cash Position
The company had cash and cash equivalents of $435.4 million at the end of the first quarter of 2026, compared with $353 million at the end of the first quarter of 2025. SLGN used $799.6 million of cash in operating activities in the first quarter of 2026 compared with $683.4 million in the prior-year period. Capital expenditures for the reported quarter were $82.4 million.
Silgan Holdings’ 2Q & 2026 Outlook
The company increased its adjusted earnings per share guidance to $3.73-$3.93 for 2026, indicating a 3% year-over-year increase at the midpoint. For second-quarter 2026, SLGN anticipates adjusted EPS to be between 92 cents and $1.02. It posted EPS of $1.01 in the year-ago quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Silgan has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Silgan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.