Company: SLGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000849869-25-000072
Chunk: 51

Company: SILGAN HOLDINGS INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 51
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, and adjusted EBIT margin increased to 7.9 percent from 7.3 percent for the same periods. The increase in adjusted EBIT was primarily due to improved manufacturing productivity and cost performance and higher unit volumes, partially offset by a less favorable mix of products sold due to higher unit volumes of smaller cans for pet food markets.

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Custom Containers Segment

 20252024(Dollars in millions)Net sales$167.2 $164.0 Income before interest and income taxes (EBIT)22.1 17.8 Income before interest and income taxes margin (EBIT margin)13.2 %10.9 %Adjusted EBIT$24.6 $20.2 Adjusted EBIT margin14.7 %12.3 %

In the first quarter of 2025, net sales for the custom containers segment increased $3.2 million, or 2.0 percent, as compared to the first quarter of 2024. This increase was principally due to higher volumes of approximately two percent primarily driven by new business awards and the pass through of higher raw material costs, partially offset by the impact of unfavorable foreign currency translation of approximately $2.0 million.

In the first quarter of 2025, adjusted EBIT of the custom containers segment increased $4.4 million as compared to the first quarter of 2024, and adjusted EBIT margin increased to 14.7 percent from 12.3 percent over the same periods. The increase in adjusted EBIT was primarily attributable to improved manufacturing productivity and cost performance and higher volumes.

CAPITAL RESOURCES AND LIQUIDITY

Our principal sources of liquidity have been net cash from operating activities and borrowings under our debt instruments, including our senior secured credit facility. Our liquidity requirements arise from our obligations under the indebtedness incurred in connection with our acquisitions and the refinancing of that indebtedness, capital investment in new and existing equipment, the funding of our seasonal working capital needs and other general corporate uses.

On March 15, 2025, we repaid all €650.0 million aggregate principal amount of our outstanding 3¼% Notes at 100 percent of their principal amount plus accrued and unpaid interest to the repayment date.  We funded this repayment with Euro revolving loan borrowings under the Credit Agreement and cash on hand.

For the three months ended March 31, 2025, we used net borrowings of revolving loans of $1.1 billion,