SILGAN HOLDINGS INC Q1 FY2025 earnings call

• Welcome and introduction of key executives, with Philippe Chevrier integrated into the Silgan culture. - Strong start in 2025 with record results, driven by organic growth, cost savings, and Weener acquisition. - Dispensing and Specialty Closure segment had fourth consecutive quarter of double-digit organic growth in dispensing products. - Weener acquisition integration on track with incremental growth opportunities. - Metal Containers saw volume growth in pet food and soup, driven by pet population growth and consumer value appreciation in soup. - Custom Containers had record operating performance with new business commercialization and volume growth in pet food products. - Long-term contractual arrangements and localized manufacturing help navigate international trade policy uncertainty.

Dispensing and Specialty Closure: First quarter sales increased 25% vs prior year, driven by Weener acquisition contribution ($126M) and 4% volume mix growth. Adjusted EBIT increased $21M or 28% y-o-y. Metal Containers: Sales increased 2% y-o-y due to 4% unit volume growth in pet food and soup, adjusted EBIT up 10%. Custom Containers: Sales increased 2% y-o-y from new business commercialization, adjusted EBIT up 22%.

• Adjusted EPS expected in range of $4 to $4.20 for 2025, midpoint 13% increase from 2024. - Total adjusted EBIT expected mid-teen percentage increase in 2025, with Dispensing and Specialty Closure up >20%, Custom Containers mid-teen, and Metal Containers high single-digit. - Free cash flow expected ~$450M, 50% increase from prior year, with CapEx ~$300M. - Second quarter adjusted earnings expected in range of $0.98 to $1.08 per diluted share, 17% increase y-o-y.

• Uncertainties in international trade policy impacting financial markets. - Potential impact of tariffs on certain segments, though Silgan passes through inflation to customers and sees limited financial impact.

Q: Why remain comfortable with volume guidance in light of potential weaker economy?

A: Mid-single-digit volume growth expected in each segment, strong customer relationships, historic transparency with customers, and majority of products in consumer staple category (nondiscretionary).

Q: Impact of tariffs on DSC segment?

A: Limited impact as DSC has low cross-border activity, customers on high end beauty/fragrance side pass through inflation from tariffs.

Q: Weener integration learning?

A: Confirms thesis on dispensing products having greater than market growth rate activities with right innovation and customer service model.

Q: Metal Containers volume outlook for 2Q?

A: Volume expected flat to prior year, with fruit and vegetable pack volume improvement in third quarter.

Q: Impact of propylene values on DSC?

A: Slight lag effect in DSC, but slight benefit if propylene continues downward trend.