SIG Group Q1 adjusted net income rises to US$51.5M as revenue holds flat at constant currency

SWITZERLAND – SIG Group has reported adjusted net income of €48.1 million (approximately US$51.5 million) for Q1 2026, up from €44.4 million a year earlier, while group-level revenue fell 4.2% on a reported basis to €714.3 million (approximately US$765 million) but remained flat at constant currency.

Reported net income reached €67.8 million (approximately US$72.6 million), compared to €15.6 million in Q1 2025, largely fuelled by unrealised gains from polymer derivatives and aluminium, alongside reduced depreciation. 

Adjusted EBIT remained steady at €95.7 million while the adjusted EBIT margin improved to 13.4% from 12.8%.

Revenue Headwinds by Region

The revenue decline was primarily attributed to contractions in Europe and the Americas, with the bag-in-box and spouted pouch segment acting as a notable drag on volumes. 

While foreign exchange trends were unfavourable, they were offset by efficient raw material sourcing, production gains, lower depreciation, and reduced SG&A expenses. 

Regarding geopolitical tensions, the company stated that impacts from the Middle East conflict were limited.

Packaging Economics: Derivatives and Raw Materials

The significant gap between reported net income (€67.8 million) and adjusted net income (€48.1 million) reflects the volatility of polymer and aluminium derivatives, which are used to hedge against raw material price swings. 

For a packaging company that converts resin and metal into aseptic cartons and closures, these hedges can produce large unrealised gains or losses without affecting cash flow or operational performance. 

The adjusted figure strips out these non-cash movements, providing a clearer view of underlying business performance.

Outlook and Pricing Actions

Free cash flow showed a year-on-year improvement of €25.5 million. 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 between 15.7% and 16.2%. 

Mikko Keto, CEO of SIG, explained that despite a difficult market environment, the company is pleased to report a solid start to the year, characterised by stable revenue performance and an improvement in adjusted EBIT margin. 

He noted that while the first quarter reflected only limited impact from higher raw material costs, the company has initiated pricing actions to mitigate cost effects.

When Derivatives Distort the True Picture

€67.8 million in reported net income looks like a surge. 

The adjusted figure, €48.1 million, tells a different story: steady operational performance, modest margin improvement, and flat revenue. 

For packaging investors, the gap matters because hedges smooth earnings but obscure trends. SIG’s Q1 results are solid, not spectacular.

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