Silgan shares tumble nearly 8% as Q4 guidance falls short of expectations

NEW YORK - On Wednesday, Silgan Holdings Inc. (NYSE:SLGN) reported third quarter adjusted earnings that met analyst expectations while revenue exceeded forecasts, and significantly lowered its fourth quarter outlook.

The packaging manufacturer’s shares fell 7.89% in pre-market trading after the results.

The company reported third quarter adjusted earnings of $1.22 per share, matching analyst estimates, on revenue of $2.01 billion, which surpassed the $1.93 billion consensus. Revenue increased 15% compared to the same period last year, primarily driven by the inclusion of results from the Weener acquisition and the pass-through of higher raw material costs.

Silgan’s fourth quarter guidance of $0.62 to $0.72 per share fell well below the $0.87 analyst consensus, prompting the sharp sell-off. For the full year 2025, the company now expects adjusted earnings of $3.66 to $3.76 per share, down from its previous forecast and below the $3.92 consensus.

"While the developments in the market backdrop in 2025 have been more challenging than we anticipated entering the year, one of the hallmarks of Silgan is our resilient performance in the face of challenging market conditions," said Adam Greenlee, President and CEO.

The company’s Dispensing and Specialty Closures segment delivered record quarterly adjusted EBIT growth of 19%, while Metal Containers achieved mid-single digit volume growth with double-digit increases in pet food products. Custom Containers saw a 4% volume improvement on a comparable basis.

Silgan cited lower customer volume forecasts for North American personal care and home care markets in the fourth quarter as the primary reason for the guidance reduction, which is expected to result in production downtime and inventory reductions. The company also noted higher tax rates and increased interest expense related to a recent euro bond issuance.

Despite the challenges, Silgan confirmed its free cash flow estimate of $430 million for 2025, representing a 10% increase compared to 2024.

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