Silgan Holdings Inc. Q4 FY2025 earnings call

• Adam Greenlee welcomed everyone, mentioned Sean Fabry's promotion and Robert Lewis's retirement. - Team showed focus in 2025, delivered strong adjusted earnings and free cash flow, integrated Vayner acquisition, achieved run rate synergies, returned to target leverage, and completed cost savings program. - Dispensing and Specialty Closures had record results in 2025. Metal Containers had growth in pet food. Custom Containers had record profitability but flat volumes in 2026. - Outlook for 2026 includes organic and inorganic growth opportunities, with segment-specific volume expectations and balance sheet within target leverage.

Dispensing and Specialty Closures: In 2025, it delivered record sales, adjusted EBIT, and adjusted EBITDA, representing over half of adjusted EBITDA. In Q4 2025, sales increased 1% vs prior year, with double-digit growth in high-value fragrance and beauty products offset by destocking in personal and home care markets. For 2026, expecting low to mid-single-digit organic volume growth. Metal Containers: Sales increased 11% in Q4 2025 due to raw material pass-through and 4% volume growth, primarily from pet food (7% growth). Adjusted EBIT increased ~5% year-over-year. For 2026, expecting low single-digit volume growth, primarily from mid-single-digit growth in pet foods. Custom Containers: Sales decreased 8% in Q4 2025 due to planned footprint optimization, but excluding those volumes, volume increased 1%. Adjusted EBIT was comparable to prior year. For 2026, volumes expected to be flat with first-quarter impact from customer destocking.

• 2026 EPS estimate: $3.70 to $3.90. - Segment volume expectations: Dispensing and specialty closures low to mid-single-digit organic volume growth, Metal Containers low single-digit volume growth (pet food mid-single-digit), Custom Containers flat with first-quarter impact from destocking. - First-quarter 2026 adjusted earnings estimate: $0.70 to $0.80 per diluted share.

• Volatile consumer spending trends affecting customers and the company. - Uncertainties related to tariffs on steel and aluminum, impacting costs and pricing. - Potential lingering impacts from customer destocking in certain segments. - Ongoing process with a customer bankruptcy and its potential outcomes.

Q: Could you give more detail on the first-quarter outlook for DSC?

A: For the DSC segment in the first quarter, seeing low to mid-single-digit volumes with a headwind from low-cost inventory put through the system in 2025.

Q: On the PSC volume for 2026, how did volumes perform in 4Q? And outlook for '26?

A: In 4Q, volumes for DSC were very close to expectations. For 2026, significant growth expected in fragrance and beauty, with assumptions of comparable volumes for food and beverage.

Q: On the Vayner packaging integration, any specific wins?

A: Acquisition integration is complete, achieved synergy targets. Commercial synergy exists, with wins in areas like food and personal care products leveraging combined technologies.

Q: With steel and aluminum tariffs, how is the market absorbed?

A: Contracts pass through costs to customers, market has absorbed costs with customers passing on to consumers, and volumes still showing growth.

Q: On health care opportunity, growth expectations?

A: Healthcare business is growing, expected to double over next few years, driven by organic growth and existing pipeline with large customers.