Silgan Holdings Inc.

Please stand by, your conference is about to begin. Good day and welcome to the Silgun Holdings Fourth Quarter 2025 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Alex Hutter, Senior Vice President, Strategy and Investor Relations. Please go ahead.

Thank you and good morning. Joining me on the call today are Adam Greenlee, President and CEO, Philippe Chevrier, EVP and COO, Sean Fabry, EVP and CFO, and Bob Lewis, EVP, Corporate Development and Administration. Before we begin the call today, we would like to make it clear that certain statements made on this conference call may be forward-looking statements. These forward-looking statements are made based upon management's expectations and beliefs concerning future events impacting the company and, therefore, involve a number of uncertainties and risks, including, but not limited to, those described in the company's annual report on Form 10-K for 2024 and other filings with the Securities and Exchange Commission. Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in the forward-looking statements. In addition, commentary on today's call may contain references to certain non-GAAP financial metrics, including adjusted EBITDA, free cash flow, and adjusted net income per diluted share, or adjusted EPS. A reconciliation of these metrics, which should not be considered substitutes for similar GAAP metrics, can be found in today's press release and under the non-GAAP financial information portion of the investor relations section of our website at silganholdings.com. With that, let me turn it over to Adam.

Thank you, Alex, and we'd like to welcome everyone to Silgan's fourth quarter earnings call. Before we begin our discussion on our fourth quarter and full year results and our outlook for 2026, I want to welcome Sean Fabry, who was promoted to CFO in November to the call. Sean joined the company through the IPEC closures acquisition in 2010, and has served in senior finance roles in each of our operating segments, and most recently on our corporate development team. Sean brings a wealth of knowledge and experience to his new role that I know will make him and our company successful well into the future. Sean's looking forward to meeting our analysts and investors in the coming quarters, so please join me in welcoming Sean to the call. I also would like to take a moment to thank Bob Lewis, who informed the company of his decision to retire at the end of March for his over 21 years of steadfast commitment to our company. Since Bob joined the company in 2004, our sales have nearly tripled and our stock price has appreciated over seven times, representing a 10% compound annual growth rate. And Bob's leadership in our finance and corporate development efforts have contributed meaningfully to our growth and value creation. He's been a trusted and valued partner to me, our executive team, and to our advisors, and we wish Bob all the same success as he enters his retirement. Moving now to our results, our team continued to show exceptional focus and determination in 2025. As our business navigated evolving consumer spending trends throughout the year, they created a more challenging operating environment for our customers and our company. We delivered our second highest adjusted earnings and free cash flow in the history of the company. returned approximately $160 million in capital to our shareholders, and returned it within our target leverage range just over a year after closing the Vayner acquisition. We made significant progress towards our strategic goals in 2025 as we successfully integrated the Vayner acquisition, continued to outpace the market and our peers in target organic growth products and end markets, and completed our multi-year cost savings program as expected. We continue to validate the success of our unique operating model in our customer partnerships and are being rewarded in the market with new business opportunities and awards as a result of our unmatched focus, operational excellence, market-leading innovation, and relentless efforts to provide the best total value solutions to our customers. Our dispensing and specialty closure segment, which now represents over half of our adjusted EBITDA, delivered another year of record sales, adjusted EBIT and adjusted EBITDA, with continued EBITDA margin expansion and significant free cash flow generation. With the Vayner acquisition now fully integrated and our run rate synergies fully achieved, the business is positioned to continue to achieve organic growth well in excess of our peers as we continue to win an outsized proportion of new product launches in the market. The combined innovation engine of these two market-leading businesses has already yielded additional contractual business wins, and the business pipeline and dispensing products continues to accelerate. While 2025 included some unforeseen challenges, our team adapted during the year to the changing landscape, and more importantly, have used the learnings from 2025 to further strengthen our processes that will help the businesses operate and serve their markets in an even more agile and adaptive way in the future. Our metal containers business delivered another year of positive earnings and volume trends with 4% growth in volumes, led by 7% growth in pet food products. While our business was faced with a very challenging circumstance as one of our long-term customers during the year, our teams were focused on protecting our business ahead of this outcome and worked diligently to nearly fully offset the secondary impact of this customer exiting certain markets. More importantly, with the recently announced developments with this customer, we believe we are uniquely positioned to continue to supply this business in the future and at this time do not anticipate any further impact from this situation. In custom containers, our teams continue to build on our commercial success and despite significant destocking in personal and home care products in the fourth quarter, delivered a record year of profitability driven by our cost reduction programs and continued commercial successes. Our adjusted EBIT and EBITDA margins expanded by 150 basis points to a level well above the target we laid out about a decade ago. And the business is now in a strong position to transition into an accelerated growth phase over the next several years. Arcane continues to demonstrate and validate our unique position in this market. And despite being a smaller scale than some of our competitors, the levels of service we provide new product innovation, and the value of our long-term customer partnerships create significant opportunity to deliver organic growth in this business. As we turn our focus to 2026, we continue to see significant opportunities to grow our company both organically and inorganically. Our teams remain focused, our strategic initiatives continue to bear fruit, our balance sheet is within our target leverage range, And we believe the opportunities for significant value creation for shareholders in 2026 and beyond remain as compelling as at any time in our history. At the segment level, we are expecting dispensing and specialty closures organic volumes to grow by a low to mid single digit rate in 2026, driven by another year of growth in our dispensing products and improved mix. We expect metal containers volumes to grow by a low single digit percentage, driven primarily by another year of mid-single-digit growth in pet food. In custom containers, after a record year of profitability, volumes are expected to be flat, as the first quarter is expected to see some continued but limited impact from customer destocking. Importantly, we anticipate this impact to be offset in the remaining three quarters as the business repositions to longer-term growth with key franchise customers. As we enter 2026, we remain excited about the opportunities that lay ahead for the company and are confident that the structural changes and evolution in our portfolio have positioned us to drive growth in our business in the near and long term. Our teams remain focused on meeting the unique needs of our customers as we continue to compete and win in the markets we serve, and our strategic growth initiatives continue to shape the company's future. The power of our portfolio, the strength of our teams, and the discipline of our capital deployment model continue to drive significant opportunity to create value for shareholders in 2026 and beyond. With that, Sean will take you through the financials for the quarter and our estimates for the first quarter and full year of 2026.