Silgan Holdings Inc. has authorized a new stock repurchase program up to $500 million, extending through December 31, 2029. The new authorization replaces a prior program that had only $25 million remaining, giving the company a larger pool to return capital to shareholders over the next several years.
The move follows a strong third‑quarter 2025 performance in which Silgan reported net sales of $2.01 billion, a 15% year‑over‑year increase from $1.75 billion in Q3 2024. Adjusted net income per diluted share rose to $1.22 from $1.21, matching consensus estimates. The revenue growth was driven largely by the Dispensing and Specialty Closures segment, which benefited from the Weener acquisition and organic expansion, while the Metal Containers segment grew in pet‑food markets. Cost‑control initiatives and a favorable mix of high‑margin products helped keep gross margin at 16.3% and operating margin at 11% despite a slight decline in gross margin from 16.8% a year earlier.
Management lowered its full‑year adjusted EPS guidance to $3.71 at the midpoint, a 6.1% decrease from the previous estimate. The guidance cut reflects concerns about emerging consumer trends and customer‑specific challenges, including a large bankruptcy and subdued demand in personal‑care and home‑care segments. The company’s revenue guidance remains unchanged, but the earnings outlook signals caution about near‑term profitability while still acknowledging the strength of its core operations.
CEO Adam Greenlee emphasized that the buyback program is part of a disciplined, returns‑based capital deployment strategy that has historically created value for shareholders. He noted that the company’s disciplined approach to cost reduction—through footprint rationalization and other initiatives—has bolstered cash flow, enabling the new authorization. Silgan also continues its long‑standing dividend policy, having increased its dividend for 21 consecutive years and paid a quarterly dividend for 87 consecutive quarters.
Investors reacted to the guidance cut with caution, while the announcement of the $500 million buyback was viewed positively. The company’s strong cash position, evidenced by a current ratio of 2.37 and a market capitalization of $4.13 billion, underpins confidence in its ability to fund the program and maintain growth initiatives.
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