NASDAQ$SLGN

Silgan Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Silgan reported a decrease in net sales but an increase in adjusted EPS, driven by strategic growth initiatives and the Weener acquisition.

Silgan Holdings Inc. reported third quarter 2024 net sales of $1.75 billion and net income of $100.1 million, or $0.93 per diluted share. Adjusted net income per diluted share for the third quarter of 2024 was $1.21. The company completed the acquisition of Weener Packaging and renewed a long-term contract with its largest Metal Containers customer.

  • Completed acquisition of Weener Packaging.
  • Renewed long-term contract with largest customer.
  • Delivered double digit growth and record volume in dispensing products.
  • Record Dispensing and Specialty Closures segment Adjusted EBIT.

Headline financials

Total Revenue

$1.75B

Previous: $1.8B-3.2%
EPS

$0.93

Previous: $1.16-19.8%
Effective Tax Rate

20.2%

No prior period
Capital Expenditures

-$192M

Previous: -$173M-10.7%
Free Cash Flow

-$92M

Previous: -$62.8M-46.4%
Net Income

$100M

Previous: $111M-9.6%
Operating Income

$167M

Previous: $195M-14.2%
Gross Profit

$293M

Previous: $286M+2.6%
Cash & Equivalents

$369M

Previous: $307M+20.0%
Total Assets

$7.75B

Previous: $7.81B-0.8%

Revenue & EPS history

Silgan · Revenue · Quarterly

$1.75B

Q3 2024-3.2%vs Q3 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Silgan · $1.8B total across 3 segments · Q3 2023

  • Metal Containers
    $1.09B-9.7%
  • Dispensing & Specialty Closures
    $559M-2.8%
  • Custom Containers
    $149M-18.3%

Forward guidance

The Company has narrowed its estimate of adjusted net income per diluted share for the full year of 2024 from a range of $3.55 to $3.75 to a range of $3.55 to $3.65. For the fourth quarter of 2024, the Company expects low single digit volume growth in the Dispensing and Specialty Closures and Custom Containers segments and is providing an estimate of adjusted net income per diluted share for the fourth quarter of 2024 in the range of $0.78 to $0.88.

Tailwinds

  • Volume/mix in the Dispensing and Specialty Closures segment and volumes in Custom Containers are expected to be higher than 2023 levels.
  • Volumes in the Metal Containers segment are expected to be comparable to prior year levels.
  • Adjusted net income per diluted share includes slight accretion from the recently completed acquisition of Weener Packaging
  • The Company anticipates interest and other debt expense in 2024 of approximately $170 million and an effective tax rate for 2024 of approximately 23 - 24%.
  • The Company is confirming its estimate of free cash flow in 2024 of approximately $375 million, as compared to $356.7 million in 2023.

Headwinds

  • Metal Containers volumes are expected to be below prior year levels due to the early end to the fruit and vegetable pack season in 2024 as compared to strong fruit and vegetable volumes in the fourth quarter of 2023.
  • Impact of severe weather
  • Mixed success of customer promotional activity
  • Net sales for the third quarter of 2024 were $1.75 billion, a decrease of $58.0 million, or 3%, as compared to the same period in the prior year.
  • The decline in Adjusted EBIT in the quarter was primarily the result of unfavorable price/cost including mix, largely as a result of the adverse mix impact of lower volumes related to the fruit and vegetable pack.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.7%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+9.6%

Q4 2025

Best reaction

-13.6%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%+1.3%-3.2%
Q4 2025+9.6%+11.2%+1.5%
Q3 2025-13.6%-13.1%-11.4%
Q1 2025-1.5%+4.0%+5.0%
Q4 2024+5.2%+3.4%+2.5%
Q3 2024+1.9%+4.5%+13.3%
Q2 2024+8.1%-0.7%+7.2%
Q1 2024-2.7%-0.0%+1.3%
Q4 2023+6.3%+2.5%+0.2%
Q3 2023-3.3%-3.5%+2.1%
Q2 2023-11.2%-10.2%-7.9%
Q1 2023-9.4%-7.0%-13.0%
Q4 2022+4.7%+3.9%+6.1%
Q3 2022+4.1%+5.4%+18.2%
Q2 2022+5.8%+5.2%+10.8%
Q1 2022+2.9%+2.0%+2.3%
Q4 2021+2.0%+7.7%-0.3%
Q3 2021+3.4%+2.4%+8.7%
Q2 2021+2.0%+1.0%+7.6%
Q1 2021-1.8%-1.3%-2.3%
Q4 2020-2.2%-0.8%+3.9%
Q3 2020-7.7%-8.8%-11.1%
Q2 2020+7.6%+7.9%+6.3%
Q1 2020+3.9%+7.5%-0.2%
Q4 2019-1.7%-1.9%-6.7%
Q3 2019-1.8%+0.1%-1.3%
Q2 2019+0.3%+1.9%-2.3%
Q1 2019-2.8%-1.7%-1.9%
Q4 2018+3.6%+6.2%+7.6%
Q3 2018-11.3%-11.2%-5.1%
Q2 2018+0.1%+1.7%+1.7%
Q1 2018+6.1%+3.4%+2.8%
Q4 2017+3.2%+1.7%-3.3%
Q3 2017+3.3%+1.6%-0.3%
Q2 2017-3.3%-5.0%-7.3%
Q1 2017+2.8%+1.4%+4.5%
Q4 2016+1.8%+1.9%+0.9%
Q3 2016+2.0%+0.6%-0.8%
Q2 2016-5.0%-5.3%-9.5%
Q1 2016-3.6%
Q4 2015+1.4%
Q3 2015-6.8%
Q2 2015-0.5%
Q1 2015-5.4%
Q4 2014+5.3%
Q3 2014-2.9%
Q2 2014-0.4%
Q1 2014-1.8%
Q4 2013+0.8%
Q3 2013-8.3%
Q2 2013-3.2%
Q1 2013-1.6%
Q4 2012+1.4%
Q3 2012+1.0%
Q2 2012-5.5%
Q1 2012-1.0%
Q4 2011+0.2%
Q3 2011-2.0%
Q2 2011+5.0%
Q1 2010-0.3%
Q4 2010-0.3%
Q1 2011+1.5%
Q4 2008-1.5%
Q3 2010+0.5%
Q3 2009+0.5%
Q4 2009+1.2%
Q2 2009+1.2%
Q2 2010+1.2%

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