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1. Company Snapshot

1.a. Company Description

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products in North America, Europe, and internationally.It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers.The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals.


The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for use in food, beverage, health care, garden, home, personal care, and beauty products, as well as capping/sealing equipment and detection systems.The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive; and marine chemical products.This segment also provides plastic thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products, including soft fabric wipes.


The company markets its products primarily through direct sales force, as well as through a network of distributors and an online shopping catalog.Silgan Holdings Inc.was founded in 1987 and is headquartered in Stamford, Connecticut.

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1.b. Last Insights on SLGN

Silgan Holdings Inc.'s recent performance was positively driven by its Q4 2025 earnings beat, with quarterly earnings of $0.67 per share exceeding the Zacks Consensus Estimate of $0.65 per share. The company's resilience through shifting consumer trends and progress on integration and cost initiatives also contributed to its performance. Additionally, New York State Common Retirement Fund raised its stake in Silgan Holdings Inc. by 23.9% in Q3, according to a recent disclosure. Analysts have a "Moderate Buy" consensus recommendation for the stock.

1.c. Company Highlights

2. Silgan Holdings' Q4 2025 Earnings: A Resilient Performance

Silgan Holdings Inc.'s fourth-quarter 2025 earnings call highlighted the company's strong financial performance, with net sales reaching approximately $1.5 billion, a 4% increase from the prior year period, driven by the pass-through of higher raw materials and favorable foreign currency translation. Adjusted EBIT for the quarter was $150.6 million, relatively flat from the prior year, while adjusted EPS was $0.67, a decrease of $0.18 due to higher interest expense and a higher tax rate. Notably, the actual EPS came out at $0.67, beating estimates of $0.65. The company's revenue growth was largely driven by its Metal Containers segment, which saw an 11% increase in sales.

Publication Date: Feb -05

📋 Highlights
  • 2025 Q4 Net Sales:: Reached $1.5B (+4% YoY), driven by raw material pass-through and foreign currency gains.
  • Metal Containers Segment Growth:: Sales rose 11% YoY with a 5% EBIT increase, outperforming other segments.
  • 2026 Guidance:: EPS projected at $3.70–$3.90, with $450M free cash flow and $205M interest expense expected.
  • Healthcare Expansion:: $200M revenue segment expected to double in coming years, leveraging dispensing product growth.
  • Protein Market Opportunity:: FDA guidelines could boost metal cans' 10% protein-related volume, aligning with pet food and premium trends.

Segment Performance

The company's segments performed as follows: Dispensing and Specialty Closures (DSC) segment sales increased 1% versus the prior year, with adjusted EBIT comparable to the record level in the prior year; Metal Containers segment sales increased 11%, driven by the pass-through of higher raw material costs and higher volumes, with adjusted EBIT increasing approximately 5%; and Custom Containers segment sales decreased 8%, with adjusted EBIT comparable to the prior year levels. The DSC segment saw double-digit growth in fragrance and beauty, while metal containers benefited from mid-single-digit growth in pet food products.

Outlook and Guidance

The company expects 2026 EPS to be in the range of $3.70 to $3.90, with interest expense of approximately $205 million and a tax rate of 25% to 26%. For the first quarter of 2026, adjusted earnings are estimated to be in the range of $0.70 to $0.80 per diluted share. The company anticipates low to mid-single-digit percentage total adjusted EBIT growth in 2026, driven by low to mid-single-digit percent increase in DSC adjusted EBIT and a low single-digit percent increase in metal containers adjusted EBIT. Analysts estimate next year's revenue growth at 2.1%.

Valuation and Metrics

Silgan Holdings' current valuation metrics include a P/E Ratio of 16.22, EV/EBITDA of 4.48, and a Dividend Yield of 1.67%. The company's ROE stands at 19.17%, indicating a strong return on equity. With a Net Debt / EBITDA ratio of -1.19, Silgan Holdings has a healthy debt profile. These metrics suggest that the company's stock is reasonably valued, with a balance between growth prospects and dividend returns.

Growth Opportunities

The company sees opportunities in the current environment, where customers are looking to reduce costs and complexity in their supply chains. With a portfolio of products in the consumer staples category, Silgan feels confident in its ability to navigate volatility. The company has taken a more conservative approach to guidance, but sees potential for growth in areas like health care and pharma, with a strong pipeline of products. The acquisition of Vayner Packaging has been fully integrated, contributing to mid-single-digit growth in dispensing products.

3. NewsRoom

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Silgan Q4 Earnings Call Highlights

Feb -07

Source: defenseworld.net

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Silgan (NYSE:SLGN) Trading 7.5% Higher After Strong Earnings

Feb -05

Source: defenseworld.net

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Silgan Holdings Inc. (SLGN) Q4 2025 Earnings Call Transcript

Feb -04

Source: seekingalpha.com

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Silgan (SLGN) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -04

Source: zacks.com

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Silgan Holdings (SLGN) Tops Q4 Earnings and Revenue Estimates

Feb -04

Source: zacks.com

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Silgan Announces Fourth Quarter and Full Year 2025 Results; Expects Continued Growth in 2026

Feb -04

Source: businesswire.com

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Silgan Holdings Inc. $SLGN Holdings Boosted by New York State Common Retirement Fund

Feb -04

Source: defenseworld.net

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Bernzott Capital Buys Another $3 Million of Silgan Stock Amid 20% Dip

Feb -03

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.90%)

6. Segments

Metal Containers

Expected Growth: 2.5%

Silgan Holdings Inc.'s Metal Containers segment growth of 2.5% is driven by increasing demand for sustainable packaging, growth in the food and beverage industry, and rising adoption of eco-friendly products. Additionally, the company's strategic acquisitions and investments in manufacturing capabilities have enhanced its production efficiency and capacity, contributing to the segment's growth.

Dispensing and Specialty Closure

Expected Growth: 3.5%

Silgan Holdings Inc.'s Dispensing and Specialty Closure segment growth of 3.5% is driven by increasing demand for sustainable and convenient packaging solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from a strong brand portfolio, innovative product offerings, and a focus on operational efficiency, leading to improved profitability and market share gains.

Custom Containers

Expected Growth: 2.8%

Silgan Holdings' Custom Containers segment growth of 2.8% is driven by increasing demand for sustainable and eco-friendly packaging solutions, expansion in e-commerce and online shopping, and rising need for customized packaging in the food and beverage industry. Additionally, strategic acquisitions and investments in innovation have contributed to the segment's growth.

7. Detailed Products

Metal Closures

Silgan Holdings Inc. provides metal closures for food and beverage products, including twist-off and pry-off caps, as well as custom-designed closures for specialty applications.

Plastic Closures

Silgan Holdings Inc. offers plastic closures for food and beverage products, including screw-top and snap-on caps, as well as custom-designed closures for specialty applications.

Metal Containers

Silgan Holdings Inc. provides metal containers for food and beverage products, including tin-free steel and tinplate containers for packaging of food, beverages, and personal care products.

Aerosol Cans

Silgan Holdings Inc. offers aerosol cans for packaging of personal care, household, and industrial products.

Custom Containers

Silgan Holdings Inc. provides custom-designed containers for specialty applications, including food, beverage, and personal care products.

8. Silgan Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Silgan Holdings Inc. operates in the metal and glass packaging industry, which has a moderate threat of substitutes. While there are some substitutes available, such as plastic packaging, they are not always suitable for certain products, and the company's products have a strong market presence.

Bargaining Power Of Customers

Silgan Holdings Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Silgan Holdings Inc. relies on a few large suppliers for raw materials, which gives them some bargaining power. However, the company's scale and diversification of suppliers mitigate this risk to some extent.

Threat Of New Entrants

The metal and glass packaging industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to join the market, reducing the threat of new entrants.

Intensity Of Rivalry

The metal and glass packaging industry is highly competitive, with several established players competing for market share. Silgan Holdings Inc. faces intense competition from companies such as Crown Holdings, Ball Corporation, and Owens-Illinois.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.53%
Debt Cost 6.13%
Equity Weight 35.47%
Equity Cost 7.38%
WACC 6.57%
Leverage 181.91%

11. Quality Control: Silgan Holdings Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Greif

A-Score: 6.0/10

Value: 8.2

Growth: 4.0

Quality: 5.8

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Sealed Air

A-Score: 5.8/10

Value: 5.9

Growth: 4.3

Quality: 6.7

Yield: 4.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Crown Holdings

A-Score: 5.7/10

Value: 6.2

Growth: 5.0

Quality: 5.0

Yield: 2.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Silgan

A-Score: 4.8/10

Value: 6.9

Growth: 5.2

Quality: 5.0

Yield: 3.0

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Berry Global

A-Score: 4.8/10

Value: 6.1

Growth: 5.7

Quality: 4.3

Yield: 1.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
WestRock

A-Score: 3.9/10

Value: 7.3

Growth: 2.7

Quality: 2.3

Yield: 2.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.48$

Current Price

48.48$

Potential

-0.00%

Expected Cash-Flows