Financial Data and Key Metrics Changes - Adjusted EBITDA grew by 6% year-over-year, reaching $208 million, which was at the upper end of guidance [4][14] - Year-to-date global volumes increased by over 3% compared to the previous year, despite being below expectations for the quarter [4][5] - The company expects full-year adjusted EBITDA to be in the range of $720 million to $735 million based on current FX rates [14] Business Segment Data and Key Metrics Changes - In Europe, Q3 revenue increased by 9% to $625 million, or 3% on a constant currency basis, primarily due to volume growth [5][6] - Adjusted EBITDA in Europe rose by 4% to $82 million, although it decreased by 4% on a constant currency basis due to input cost recovery headwinds [6] - In the Americas, revenue increased by 8% to $803 million, with adjusted EBITDA also rising by 8% to $126 million, supported by lower operational costs [7][8] Market Data and Key Metrics Changes - In Brazil, beverage can shipments decreased by 17% due to a weak industry backdrop, with beer can volumes falling by around 14% [10][11] - North America shipments increased by 1% for the quarter, with year-to-date shipments up by 5% [7][10] - The company anticipates a modest impact on Q4 performance due to supply chain issues but maintains guidance for mid-single-digit growth in North America shipments for the full year [9][10] Company Strategy and Development Direction - The beverage can segment continues to benefit from innovation and share gains, with a focus on sustainability and reducing emissions [5][14] - The company expects a transition year in 2026, with growth anticipated in 2027 due to contracted additional filling locations and ongoing market growth [10][14] - The company is upgrading its full-year adjusted EBITDA guidance, reflecting resilient performance across segments [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand elasticity is not significantly impacting sales currently, there are risks for 2026 due to potential higher aluminum costs [20][21] - The outlook for the beer category in Europe is cautious, with expectations for stabilization in 2026 [85][86] - Management expressed optimism about the North American market, citing strong customer demand for non-alcoholic beverages [9][10] Other Important Information - The company ended the quarter with a robust liquidity position of over $600 million and a net leverage ratio of 5.2 [12][13] - The quarterly ordinary dividend announced was $0.10 per share [13] Q&A Session Summary Question: Effects of demand elasticity and alumina pricing - Management indicated that there is currently no significant impact from demand elasticity, but risks may arise in 2026 as hedges roll off [20][21] Question: Growth expectations in North America and Brazil - Management expects North America to grow at a market level of 1% to 2% in 2026, with Brazil anticipated to return to growth [10][21] Question: Capacity and footprint in Europe - Management confirmed that the European market remains tight, with no changes to the timing of needing new capacity [39][40] Question: Input cost recovery in Europe - Management noted that input cost recovery challenges are primarily related to European aluminum prices, which have been impacted by energy costs [57][58] Question: Aluminum pricing and promotional activity - Management acknowledged that rising aluminum prices could lead to inflation on the shelf, impacting volumes, but remains cautiously optimistic about growth [101][102] Question: Transition to new product categories - Management is implementing projects to increase flexibility in production lines to better capture growth in faster-growing categories [75][76]

Financial Performance - Revenue for the three months ended September 30, 2025, was $1,428 million, a 8.8% increase from $1,313 million in the same period of 2024[4] - Gross profit for the nine months ended September 30, 2025, was $529 million, up from $479 million in 2024, reflecting a 10.5% increase[7] - Operating profit for the three months ended September 30, 2025, was $87 million, compared to $83 million in the same period of 2024, representing a 4.8% increase[4] - Profit for the period for the three months ended September 30, 2025, was $27 million, an increase from $18 million in 2024, marking a 50% growth[10] - Profit before tax for the nine months ended September 30, 2025, was $43 million, compared to $12 million in the same period of 2024, indicating a significant improvement[7] - Earnings per share for the three months ended September 30, 2025, was $0.04, up from $0.02 in 2024[4] - As of September 30, 2025, the profit for the period was $27 million, compared to $8 million for the same period in 2024, reflecting a significant increase[13] - Adjusted EBITDA for the nine months ended September 30, 2025, rose to $573 million, up from $508 million in the same period of 2024, reflecting a 12.8% increase[39] - Revenue for the Group in Q3 2025 was $1,428 million, compared to $1,313 million in Q3 2024, marking an 8.8% increase[39] - Profit for the period increased to $27 million in Q3 2025 from $18 million in Q3 2024, representing a 50% year-over-year growth[39] Assets and Liabilities - Total assets as of September 30, 2025, were $5,456 million, slightly down from $5,462 million at December 31, 2024[12] - Current liabilities increased to $1,460 million as of September 30, 2025, compared to $1,448 million at December 31, 2024[12] - Non-current liabilities increased to $4,330 million as of September 30, 2025, from $4,150 million at December 31, 2024[12] - As of September 30, 2025, the Group's total borrowings amounted to $4,115 million, an increase from $3,933 million at December 31, 2024[60] - The Group's net debt was $4,093 million, with available liquidity of $310 million, resulting in a net debt to available liquidity ratio of 3,813[60] - The fair value of the Group's total borrowings, excluding lease obligations, was $3,566 million as of September 30, 2025, compared to $3,215 million at December 31, 2024[10] - Lease obligations decreased from $374 million at December 31, 2024, to $369 million at September 30, 2025, reflecting $83 million in principal repayments[62] Cash Flow and Investments - Cash generated from operations for the nine months ended September 30, 2025, was $257 million, up from $199 million in 2024, indicating a 29% increase[17] - The net cash used in investing activities for the nine months ended September 30, 2025, was $131 million, slightly down from $132 million in 2024[17] - The total dividends paid for the nine months ended September 30, 2025, remained constant at $198 million compared to the same period in 2024[17] - The cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, was $317 million, unchanged from the previous year[17] - Cash flows from operating activities increased by $16 million to $81 million for the nine months ended September 30, 2025, compared to $65 million in the same period in 2024[160] - Capital expenditure for the nine months ended September 30, 2025, was $131 million, a decrease of $1 million compared to $132 million in the same period in 2024[169] Operational Insights - The company operates 23 production facilities across Europe and the Americas, employing approximately 6,300 people[24] - The Group's performance is assessed based on Adjusted EBITDA, which reflects the profit for the period before income tax, net finance expense, depreciation, and amortization[36] - The Group's operations are influenced by global economic trends, energy prices, and raw material costs, with variable costs typically constituting approximately 75% of total cost of sales[99] - The company emphasizes the importance of maintaining effective relationships with suppliers and managing supply chain disruptions to ensure timely deliveries[175] Risks and Uncertainties - The company faces risks including increased manufacturing capacity without corresponding demand, competition, and fluctuations in raw material costs, which could materially affect future performance[175] - Forward-looking statements are based on assumptions and analyses that may not guarantee future performance, highlighting the inherent risks and uncertainties[178] - The ongoing geopolitical situation, particularly the Russia-Ukraine war, may impact energy prices and supply stability in Europe[175] - The company is subject to various regulatory and compliance costs that could affect its financial performance and operational strategies[175] - The Board has formed the judgment that there is a reasonable expectation for the Group to continue operational existence for the foreseeable future[31]

Financial Performance - Q3 2025 Adjusted EBITDA reached $208 million, at the high end of the $200-$210 million guidance range[15] - Q3 2025 Adjusted EBITDA increased by 6% compared to the previous year, or 3% on a constant currency basis[14, 30] - Full year Adjusted EBITDA guidance was raised to $720-$735 million[14, 15] - Q3 2025 revenue was $1.428 billion, a 9% increase compared to the $1.313 billion in Q3 2024 (6% at constant currency)[30, 31] Regional Performance - Europe Adjusted EBITDA grew by 4% in Q3, driven by volume/mix and currency effects[15] - Americas Adjusted EBITDA grew by 8% in Q3, driven by lower operational and overhead costs[15] - Americas shipments declined by 3% in Q3, with North America growing by 1% and Brazil declining by 17%[15, 21] - Europe shipments grew by 2% in Q3, with strength in energy drinks and other smaller categories offsetting softness in the beer category[15, 21] Market Trends and Sustainability - Global shipments declined by 1% in Q3 due to weakness in Brazil, but year-to-date global shipments grew by over 3%[15] - The company reported a 10% increase in renewable electricity coverage to 30% and a 10% decrease in Scope 1 & 2 emissions in 2024[27] - Beverage cans are gaining share in the beverage packaging mix, with penetration rates increasing in the US, Brazil, and Europe[15, 23, 24]

Group 1: Earnings Performance - Ardagh Metal Packaging S.A. reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, with an earnings surprise of +14.29% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - Revenue for the quarter ended September 2025 was $1.43 billion, surpassing the Zacks Consensus Estimate by 2.71%, compared to $1.31 billion in the same quarter last year [2] Group 2: Stock Performance and Outlook - Ardagh Metal Packaging shares have increased by approximately 23.9% since the beginning of the year, outperforming the S&P 500's gain of 13.9% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $1.26 billion, and $0.18 on revenues of $5.37 billion for the current fiscal year [7] Group 3: Industry Context - The Metal Products - Procurement and Fabrication industry, to which Ardagh belongs, is currently ranked in the top 9% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Group 1 - Ardagh presents an attractive risk/reward setup with potential upside of up to 60% [1] - The potential valuation re-rate could stem from improvements in the company's capital structure, which would reduce associated risks [1] - The focus is on special situations and deep value plays, with an openness to long/short positioning to capture market inefficiencies [1] Group 2 - Long positioning aims to identify asymmetric opportunities where downside risk is limited and upside potential is underestimated by the market [1] - Examples of such opportunities include restructurings, spin-offs, and takeover targets [1]

Financial Data and Key Metrics Changes - Global shipments grew by 5% and adjusted EBITDA increased by 18% compared to the prior year, exceeding guidance [4][12] - The company ended the quarter with a liquidity position of $680 million and a net leverage ratio of 5.3 times, a decrease of half a turn from Q2 2024 [10][11] - Full year adjusted EBITDA is now expected to be in the range of $700 million to $725 million based on current FX rates [12][13] Business Line Data and Key Metrics Changes - In Europe, Q2 revenue increased by 9% to $615 million, with a 1% growth in shipments driven by soft drinks, while beer faced weakness due to adverse weather [5][6] - In The Americas, revenue rose by 21% to $840 million, with adjusted EBITDA increasing by 34% to $133 million, driven by favorable volume growth and lower operating costs [7][8] - Beverage can shipments in Brazil increased by 12%, outperforming the industry which grew modestly [8][9] Market Data and Key Metrics Changes - The beverage can market in Europe is expected to grow around 3% for the full year 2025, with strong growth in soft drinks offsetting beer weaknesses [6][25] - North America is expected to see mid single-digit growth in shipments for the full year, with strong demand for nonalcoholic beverages [8][19] - The overall market for cans in Europe remains healthy, with long-term growth trends expected [25][38] Company Strategy and Development Direction - The company is focused on maintaining strong performance in the beverage can segment, which continues to gain market share [12][38] - There are plans for capacity additions in the future, particularly in Europe, to meet growing demand [41][82] - The company is committed to improving operational efficiencies and cost savings in manufacturing [73][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic uncertainties, with expectations for continued growth in the beverage can market [4][12] - The company anticipates a reduction in growth rates in the second half of the year compared to the first half, but still expects healthy performance [18][19] - Management noted that the macroeconomic environment remains uncertain, which is reflected in cautious guidance for the second half [59][60] Other Important Information - The company announced a quarterly ordinary dividend of $0.10 per share [11] - There are no near-term bond maturities, providing a strong liquidity position [10] Q&A Session Summary Question: Insights on North American volumes and expectations for the region - Management highlighted strong performance in soft drinks and energy drinks, with expectations for continued growth but not as strong as the first half [16][18] Question: Details on capacity constraints in Europe - Management acknowledged capacity constraints in certain can sizes and noted that they could not fully meet the growth in soft drinks due to strong beer positions [21][23] Question: Performance drivers in The Americas - Management indicated that strong promotional activity contributed to better-than-expected performance, but they do not foresee significant stockpiling [29][32] Question: European cost impacts and aluminum pricing - Management discussed timing effects related to aluminum pricing but did not expect a significant recovery in Q3 [47][50] Question: Guidance for Q4 and cost considerations - Management noted that Q4 guidance reflects a cautious outlook due to macroeconomic uncertainties and anticipated slower growth in Brazil and North America [51][56] Question: Energy market dynamics and consumer behavior - Management reported no significant cannibalization between energy drinks and CSDs, with both categories showing growth [62][64] Question: Contract negotiations and visibility for 2026 and 2027 - Management confirmed good visibility for 2026 volumes and noted that 2027 contracts are reasonably well established [75][76] Question: Manufacturing efficiency contributions - Management acknowledged improved operational costs and efficiencies in both North America and Europe [72][73] Question: Future capacity needs and growth management - Management indicated that future capacity additions would likely be brownfield projects rather than new facilities, focusing on existing sites [81][86]

Financial Data and Key Metrics Changes - Global shipments grew by 5% and adjusted EBITDA increased by 18% compared to the prior year, exceeding guidance [4][12] - Revenue in Europe rose by 9% to $615 million, or 4% on a constant currency basis, while adjusted EBITDA in Europe decreased by 3% to $77 million [5][6] - Revenue in The Americas increased by 21% to $840 million, with adjusted EBITDA rising by 34% to $133 million [6][7] Business Line Data and Key Metrics Changes - In Europe, shipments grew by 1%, driven by soft drinks, while beer experienced weakness due to adverse weather [5][6] - In The Americas, shipments increased by 8%, with strong demand for nonalcoholic beverages, particularly carbonated soft drinks and energy drinks [7][8] - Brazil's beverage can shipments increased by 12%, outperforming the industry which grew modestly [8][9] Market Data and Key Metrics Changes - The beverage can market continues to gain share in the packaging mix, with expectations for shipments growth in Europe around 3% for the full year 2025 [6][12] - North America is expected to see mid single-digit growth in shipments for the full year, while Brazil is anticipated to have at least low single-digit growth [9][12] Company Strategy and Development Direction - The company is upgrading its full-year adjusted EBITDA guidance to a range of $700 million to $725 million based on current FX rates [12] - The company plans to maintain a robust liquidity position and expects adjusted free cash flow for 2025 to be at least $150 million [10][11] - Capacity remains tight in certain geographies, and the company is evaluating the need for future capacity additions [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic uncertainties, with strong volume growth in The Americas [4][12] - The company anticipates a reduction in growth rates in the second half of the year compared to the first half, but still expects healthy performance overall [19][20] - Management noted that the European market remains healthy, with long-term growth trends expected to continue [39][40] Other Important Information - The company announced a quarterly ordinary dividend of $0.10 per share [11] - Net leverage decreased to 5.3 times net debt over the last twelve months adjusted EBITDA, reflecting adjusted EBITDA growth [10] Q&A Session Summary Question: Insights on North American volumes and expectations for the region - Management highlighted strong performance in soft drinks and energy drinks, with expectations for continued growth but not as strong as the first half [17][19] Question: Capacity constraints in Europe - Management acknowledged capacity constraints in certain can sizes and indicated that they could not fully meet the growth in soft drinks due to these limitations [22][24] Question: Performance drivers in The Americas - Management noted strong promotional activity and innovative products contributing to better-than-expected performance, but anticipated a potential slowdown in the second half [30][33] Question: European cost impacts and guidance - Management discussed timing effects related to aluminum pricing and indicated that they do not expect a significant recovery in Q3 [48][50] Question: Overall growth outlook and cost considerations - Management expressed caution regarding growth rates in the second half, reflecting a more challenging macroeconomic environment [60][61] Question: Energy market dynamics and consumer behavior - Management reported no significant cannibalization between energy drinks and carbonated soft drinks, with both categories performing well [63][66] Question: Manufacturing efficiency and future targets - Management confirmed improved operational costs and efficiency in manufacturing, with ongoing targets for cost savings [73][75] Question: Contract negotiations for future volumes - Management indicated good visibility on contracted volumes for 2026 and 2027, with ongoing negotiations progressing well [76][77]

Core Insights - Ardagh Metal Packaging S.A. (AMBP) reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and up from $0.06 per share a year ago, representing an earnings surprise of +14.29% [1] - The company achieved revenues of $1.46 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.66%, compared to $1.26 billion in the same quarter last year [2] - Ardagh Metal Packaging shares have increased approximately 54.2% year-to-date, significantly outperforming the S&P 500's gain of 8.1% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.07 on revenues of $1.39 billion, and for the current fiscal year, it is $0.20 on revenues of $5.28 billion [7] Industry Context - The Metal Products - Procurement and Fabrication industry, to which Ardagh belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - Ardagh Metal Packaging (AMP) reported strong Q2 2025 results, outperforming guidance, and raised the full-year Adjusted EBITDA guidance to $705-$725 million[14] - Q2 2025 global shipments grew by 5%[15] - Q2 2025 Adjusted EBITDA reached $210 million, exceeding the guidance range of $195-$205 million[16] - Group revenue in Q2 2025 was $1455 million, a 16% increase compared to $1259 million in Q2 2024[32] - Adjusted EBITDA increased by 18% to $210 million in Q2 2025, compared to $178 million in Q2 2024[31] Regional Performance - Americas experienced strong growth in Q2 2025, with Adjusted EBITDA increasing by 34%[16] - North America saw an 8% growth in Q2 2025, driven by non-alcoholic beverages[16] - Brazil's growth was 12% in Q2 2025, reflecting customer mix[16] - Europe experienced a 1% growth in Q2 2025, with strength in soft drinks offset by market weakness in beer[16] Market Trends and Strategy - Beverage cans are gaining share in the packaging mix across regions[23] - AMP anticipates minimal impact from tariffs due to the regional nature of its supply chain[16] - The company maintains a disciplined approach to capital deployment, focusing on network optimization and flexibility[38]

Core Viewpoint - Ardagh Metal Packaging S.A. reported strong financial performance for Q2 2025, with significant revenue and Adjusted EBITDA growth, driven by robust volume growth in the Americas and resilience against macroeconomic uncertainties [1][3]. Financial Performance Review - Revenue for Q2 2025 reached $1,455 million, a 16% increase from $1,259 million in Q2 2024, with a 13% increase on a constant currency basis [2][6]. - Adjusted EBITDA for the quarter was $210 million, an 18% increase from $178 million in the same period last year, with a 16% increase at constant currency [2][7]. - Profit for the period was $5 million, compared to $2 million in Q2 2024 [2][22]. - Adjusted earnings per share rose to $0.08 from $0.06 year-over-year [2][22]. Regional Performance - In the Americas, revenue increased by 21% to $840 million, driven by favorable volume/mix effects and higher input costs passed to customers [8]. - Adjusted EBITDA in the Americas grew by 34% to $133 million, reflecting strong volume growth and reduced operational costs [9]. - In Europe, revenue increased by 9% to $615 million, with a 4% increase on a constant currency basis, while Adjusted EBITDA decreased by 3% to $77 million due to lower input cost recovery [10][11]. Guidance and Expectations - The company raised its full-year Adjusted EBITDA guidance to a range of $705-$725 million, reflecting improved performance and favorable currency movements [3][6]. - The expected total capital expenditure for 2025 remains unchanged at just over $200 million, with $70 million allocated for growth investments [3][6]. - The company maintains a strong liquidity position of $680 million as of June 30, 2025, with a net debt to Adjusted EBITDA ratio of 5.3x, down from 5.8x a year earlier [3][6].