Silgan added $104.1 million of sales in the three months ended June 30, enough to look like straightforward growth. It also lost $13.1 million of net income, so the profit decline was roughly one-eighth the size of the sales increase.
The surface reading is familiar: revenue reached $1.6 billion, up 6.8% from the comparable three months a year earlier. The less comfortable detail is that gross margin fell to 17.9% from 19.4%, while net income dropped 14.8% to $75.8 million.
Silgan says the extra sales did not mainly come from selling more containers. Much of the increase came from passing higher costs through to customers, favorable currency translation, and product mix. Lower volumes in several businesses pulled the other way.
The company spells out that bridge in its 10-Q:
"In the second quarter of 2026, consolidated net sales were $1.6 billion, an increase of $104.1 million, or 6.8 percent, as compared to the second quarter of 2025 primarily due to the contractual pass through of higher raw material and other manufacturing costs, the impact from favorable foreign currency translation of approximately $16.0 million and a more favorable mix of products sold in the custom containers segment, partially offset by a less favorable mix of products sold in the dispensing and specialty closures and metal containers segments and lower volumes in the dispensing and specialty closures and custom containers segments."
Silgan Holdings, Form 10-Q, Aug. 6, 2026
That makes the revenue number less of a demand read. The same filing says lower volumes and product mix weighed on adjusted EBIT, with cost reductions providing some offset. Silgan has described input and raw-material costs as an adverse factor across five filings, so the pass-through mechanism is recurring business plumbing, not a one-line oddity.
The cash figures add another layer. Cash rose 10.7% to $351.5 million, and inventory declined 2.1% to $1.2 billion. Accounts receivable moved in the opposite direction, rising 17.1% to $1.5 billion. Silgan does not say why.
The margin pressure also reached the bottom line. Diluted earnings per share fell 13.3% to $0.72, despite a 1.4% reduction in diluted shares. That is what makes the filing more specific than a simple “sales up” headline: the company passed through higher costs, but the pass-through did not preserve gross profit or earnings in this period.
Management’s explanation for the operating pressure is blunt:
"The decrease in adjusted EBIT was primarily attributable to lower volumes, partially offset by a more favorable mix of products sold including as a result of the benefit of previously announced cost reductions in the current year period."
Silgan Holdings, Form 10-Q, Aug. 6, 2026
Silgan’s annual results provide a useful scale check. Revenue grew 10.7% in 2025 to $6.5 billion, after falling in both 2023 and 2024. The latest three-month figures show what that growth can look like underneath: more reported sales, but less gross profit and a larger unpaid-customer balance.
The next quarterly report’s accounts-receivable balance and explanation will answer the question this filing leaves open: what drove the 17.1% increase?
Source: Silgan Holdings’ Form 10-Q filed Aug. 6, 2026, for the three months ended June 30, 2026.