SIG Group has reported a growth in net income for the first quarter of 2026, reaching €67.m ($78.7m) compared to the €15.6m recorded during the same period in 2025.
This rise was largely fuelled by unrealised gains from polymer derivatives and aluminium, alongside a reduction in depreciation and amortisation following the conclusion of the Onex PPA in 2025.
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Despite the bottom-line growth, group-level revenue fell 4.2% on a reported basis to €714.3m while remaining flat at constant currency.
This decline was primarily attributed to revenue contractions in Europe and the Americas, with the performance of the bag-in-box and spouted pouch segment acting as a notable drag on volumes.
For the first quarter, adjusted net income increased to €48.1m from €44.4m in the previous year.
Adjusted earnings before interest and taxes (EBIT) remained steady at €95.7m while the adjusted EBIT margin improved to 13.4% from 12.8%.
The packaging company noted that while foreign exchange trends were unfavourable, they were offset by efficient raw material sourcing, production gains, lower depreciation, and reduced selling, general, and administrative (SG&A) expenses.
Regarding geopolitical tensions, it said that impacts from the Middle East conflict were “limited”.
Additionally, free cash flow showed a year-on-year improvement of €25.5m.
Looking ahead, SIG has maintained its full-year 2026 guidance, projecting total revenue growth at constant currency and constant resin within a 0-2% range.
The annual adjusted EBIT margin is forecasted to land between 15.7% and 16.2%, with the company anticipating stronger revenue and margin performance in the second half of the year due to seasonal trends.
Net capital expenditure is expected to remain within the target range of 6%-8% of revenue.
SIG CEO Mikko Keto said: “Despite a difficult market environment, we are pleased to report a solid start to the year, characterised by stable revenue performance and an improvement in our adjusted EBIT margin.
“While the first quarter reflected only a limited impact from higher raw material costs, we have initiated pricing actions to mitigate cost effects and maintain our full-year guidance.”
Last month, SIG and Oobli partnered to develop shelf-stable low-sugar beverage solutions.
