SIG raises 2026 expected EBIT margin to 16.0–16.5% after third-quarter revenue growth
Key Facts
SIG Group raised its adjusted earnings before interest and taxes margin forecast for fiscal 2026 to 16.0–16.5%, from 15.7–16.2%, after third-quarter revenue grew 7.2% on a constant-currency basis compared with the same period in 2025. The company maintained its full-year revenue growth forecast at 0–2% on a constant-currency and constant-resin basis, limiting the revision to margin. Chief Executive Anne Erkens said the strong third-quarter performance "gave us confidence to raise our full-year adjusted EBIT margin guidance." The guidance update comes as the company seeks to expand margins and improve shareholder returns under a new growth roadmap. The nine-month margin also rose, while third-quarter results exceeded analysts' average forecasts, according to Investing.com coverage.
Third-quarter revenue growth was 7.2% on a constant-currency basis and 6.5% on a constant-currency and constant-resin basis, according to SIG's statement. In the first nine months of 2026, adjusted EBIT margin was 16.3%, compared with 14.8% in the same period of 2025 after excluding non-recurring items. For the third quarter alone, revenue was 843 million euros, compared with analysts' average forecast of 805.7 million euros, while adjusted margin was 17.4% against expectations of 16.3%. The company said aseptic carton performed well across regions and that operational efficiency measures were beginning to deliver results. It added that improved profitability and strong cash flow generation also benefited from a low comparison base in the previous year.
Erkens said the market remains challenging because of geopolitical uncertainty and volatility in raw-material and shipping costs, alongside differing demand patterns across regions. SIG aims to address cost pressures and improve profitability through procurement savings, higher productivity and operating leverage. Over the medium term, the company set a target for organic revenue growth of between 3% and 5%, and adjusted EBIT margin above 18% for the group. The target for the aseptic carton business is above 20%, putting it above the group target. These goals reflect a path that requires combining revenue growth with higher margins, while the company left its revenue growth forecast for the current year unchanged.
The plan includes addressing performance in the Bag-in-Box and spouted pouch business through portfolio improvements, operational excellence and a greater focus on aseptic applications, with the aim of restoring growth and profitability. SIG will also reorganize its reporting segments into two core businesses: aseptic carton and Bag-in-Box and spouted pouches. The company said the segment change will result in a non-cash impairment loss of about 250 million euros in the fourth quarter of 2026. The reorganization places the two businesses within a simplified reporting structure, alongside the operational transformation plan for the business whose profitability the company is seeking to restore. The plan therefore covers margin, procurement and productivity targets, as well as a change in the segment structure and efforts to address the performance of Bag-in-Box and spouted pouches.
On shareholder returns, SIG plans to resume distributions in 2027 for fiscal 2026, with a target payout ratio of between 30% and 50% of adjusted net income. The company linked the return of distributions to its plan to increase shareholder returns, setting a timeframe and target ratio rather than announcing a specific payment date. The company's shares jumped more than 7% on Tuesday, October 27, after the guidance increase and third-quarter results, according to Investing.com. SIG is scheduled to report fiscal 2026 results on March 2, 2027, according to its investor calendar. The annual results date follows the announced plan to resume distributions in 2027 and provides the next milestone for presenting full-year performance.