Shares of Silgan Holdings fell even after the company reported second-quarter results ahead of Wall Street estimates, as executives said the company is facing cost headwinds and market weakness in Brazil.

Shares were down 12% to $42.46 in Wednesday afternoon trading. The stock is up 5.2% year to date.

The maker of rigid-packaging solutions said its business faced headwinds in the second quarter, including a shortfall in Brazil, where volumes in the dispensing and specialty-closures segment fell 15%. That drove a 1% decline in volumes across the segment, executives said on a Wednesday call.

The company expects the market conditions in Brazil to persist through the third quarter before a recovery begins in the fourth.

Silgan is also grappling with higher costs, particularly for resin, Chief Executive Officer Adam Greenlee said on the call.

"There is a tremendous amount of volatility, as everybody knows, still in those markets," Greenlee said. "That'll be unrecovered until such time as resin declines in the future and we just don't have clear visibility as to when that's going to happen."

The company reported a second-quarter profit of $75.8 million, or 72 cents a share, compared with a profit of $89 million, or 83 cents a share, a year earlier.

Stripping out certain one-time items, the company reported adjusted earnings of 98 cents a share. Analysts polled by FactSet were expecting 96 cents a share.

Net sales rose to $1.64 billion from $1.54 billion a year prior. Analysts were expecting $1.62 billion.

For the current third quarter, the company is targeting adjusted earnings of between $1.21 and $1.31 a share. Analysts expect $1.27 a share.

Silgan reaffirmed its 2026 outlook for adjusted earnings between $3.73 and $3.93 a share and about $450 million in free cash flow.