Company: SLGN
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038677
Chunk: 64

Company: SILGAN HOLDINGS INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 64
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Custom Containers Segment

Three Months EndedSix Months Ended June 30, 2025June 30, 2024June 30, 2025June 30, 2024(Dollars in millions)Net sales$160.9 $165.2 $328.0 $329.2 Income before interest and income taxes (EBIT)22.6 20.5 44.7 38.3 Income before interest and income taxes margin (EBIT margin)14.0 %12.4 %13.6 %11.6 %Adjusted EBIT$24.9 $22.5 $49.5 $42.7 Adjusted EBIT margin15.5 %13.6 %15.1 %13.0 %

In the second quarter of 2025, net sales for the custom containers segment decreased $4.3 million, or 2.6 percent, as compared to the second quarter of 2024. This decrease was principally due to lower volumes of approximately two percent due primarily to the exit of lower margin business as a result of footprint optimization plans.

In the first six months of 2025, net sales for the custom containers segment decreased $1.2 million, or 0.4 percent, as compared to the first six months of 2024. This decrease was principally due to unfavorable foreign currency translation of approximately $2.0 million, partially offset by the pass through of higher raw material costs.

In the second quarter of 2025, adjusted EBIT of the custom containers segment increased $2.4 million as compared to the second quarter of 2024, and adjusted EBIT margin increased to 15.5 percent from 13.6 percent over the same periods. The increase in adjusted EBIT was primarily attributable to improved manufacturing productivity and cost performance.

In the first six months of 2025, adjusted EBIT of the custom containers segment increased $6.8 million as compared to the first six months of 2024, and adjusted EBIT margin increased to 15.1 percent from 13.0 percent over the same periods. The increase in adjusted EBIT was primarily attributable to improved manufacturing productivity and cost performance.

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