Key Takeaways Ball Corp completed the sale of a 41% stake in its Saudi joint venture to ORG for $70M.The company retains 10% ownership in the JV to maintain a strategic minority position.The deal expands Ball Corp's collaboration with ORG to serve Middle East customers better.Ball Corporation (BALL) announced that it sold its 41% ownership interest in Ball United Arab Can Manufacturing Company (UAC), its consolidated joint venture in the Kingdom of Saudi Arabia, to a subsidiary of ORG Technology Co., Ltd. ( ...

WESTMINSTER, Colo., Aug. 27, 2025 /PRNewswire/ -- Ball Corporation (NYSE: BALL) today announced it has completed the sale of 41% of its 51% ownership interest in Ball United Arab Can Manufacturing Company (UAC), its consolidated joint venture in the Kingdom of Saudi Arabia, to a subsidiary of ORG Technology Co., Ltd. (ORG) for approximately USD $70 million, which is subject to customary closing adjustments. This transaction deepens the multi-year relationship with ORG and combines Ball's global can innovati ...

Core Viewpoint - Ball Corporation has announced a public offering of $750 million in Senior Notes with a 5.500% interest rate, maturing in 2033, expected to close on August 14, 2025, pending customary closing conditions [1]. Group 1: Offering Details - The offering consists of $750 million aggregate principal amount of Senior Notes due 2033 [1]. - The offering is being managed by BofA Securities, Goldman Sachs, Citigroup, and Morgan Stanley as global coordinators and joint book-running managers [3]. Group 2: Use of Proceeds - Ball intends to use the net proceeds for general corporate purposes, which may include refinancing or repaying debt [2]. - Specifically, a portion of the proceeds will be used to repay outstanding borrowings under its U.S. dollar and multi-currency revolving credit facilities [2]. Group 3: Company Overview - Ball Corporation specializes in providing innovative and sustainable aluminum packaging solutions for various sectors, including beverage and personal care [6]. - The company employs 16,000 people globally and reported net sales of $11.80 billion for 2024, excluding its divested aerospace business [6].

Ball is making the offer pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. The offering of the Notes is being made solely by means of a prospectus supplement and accompany prospectus. Copies of the preliminary prospectus supplement and accompany prospectus relating to the offering may be obtained via mail from BofA Securities, Inc. at BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Att ...

Core Insights - Ball Corporation reported second-quarter 2025 adjusted earnings per share (EPS) of 90 cents, exceeding the Zacks Consensus Estimate of 87 cents, and reflecting a 22% year-over-year improvement driven by higher volumes across all segments [1][9] - Total sales reached $3.34 billion, up from $2.96 billion in the same quarter last year, surpassing the Zacks Consensus Estimate of $3.15 billion, with global aluminum packaging shipments increasing by 4.1% year over year [2][9] Financial Performance - The cost of sales was $2.69 billion, a 14.1% increase from the previous year, while gross profit totaled $648 million, up from $602 million, resulting in a gross margin of 19.4%, down from 20.3% year over year [3] - Selling, general and administrative expenses decreased by 1.4% year over year to $137 million, with comparable segment operating earnings rising to $388 million from $360 million in the prior year [3] Segment Performance - Beverage Packaging North and Central America segment revenues increased by 9.8% year over year to $1.61 billion, with operating earnings of $208 million, down 1% year over year [4] - Beverage Packaging EMEA segment sales rose 19.3% year over year to $1.05 billion, with operating earnings growing by 14.2% to $129 million [5] - Beverage Packaging South America segment revenues increased by 13% year over year to $477 million, with operating earnings rising 37.8% to $51 million [6] Cash Flow and Debt - Cash and cash equivalents at the end of Q2 2025 were $0.29 billion, down from $1.35 billion a year earlier, with cash used in operating activities amounting to $0.33 billion in the first half of 2025 [7] - Long-term debt increased to $6.48 billion as of June 30, 2025, from $5.52 billion a year prior [7] Stock Performance - Ball Corporation's shares have declined by 6.8% over the past year, contrasting with the industry's growth of 0.7% [8]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Financial statements show increased sales from continuing operations but lower total net earnings due to the 2024 aerospace business divestiture - The financial statements reflect the aerospace business as discontinued operations for all periods presented, following its divestiture on February 16, 2024, which significantly impacts year-over-year comparisons of net earnings and cash flows[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Earnings](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Earnings) Net sales and earnings from continuing operations grew, but total net earnings fell sharply without the prior year's gain from the aerospace sale Consolidated Earnings Summary (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $3,338 | $2,959 | $6,435 | $5,833 | | **Earnings from Continuing Operations** | $215 | $159 | $396 | $238 | | **Discontinued Operations, net of tax** | $0 | $0 | $(2) | $3,607 | | **Net Earnings Attributable to Ball** | $212 | $158 | $391 | $3,843 | | **Diluted EPS - Continuing Operations** | $0.76 | $0.51 | $1.40 | $0.75 | | **Total Diluted EPS** | $0.76 | $0.51 | $1.39 | $12.21 | [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities increased, driven by higher long-term debt, while total equity decreased due to treasury stock purchases Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $5,252 | $4,841 | | **Total Assets** | $18,608 | $17,628 | | **Long-Term Debt** | $6,479 | $5,312 | | **Total Liabilities** | $13,331 | $11,698 | | **Total Equity** | $5,277 | $5,930 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash use improved, while investing activities saw a significant outflow, contrasting with the prior year's large inflow from divestiture Six-Month Cash Flow Summary (in millions) | Activity | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Cash from Operating Activities** | $(333) | $(995) | | **Cash from Investing Activities** | $(391) | $5,204 | | **Cash from Financing Activities** | $88 | $(3,496) | | **Change in Cash** | $(613) | $638 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the aerospace divestiture's impact, strategic transactions, new debt issuance, and share repurchase programs - The company completed the divestiture of its aerospace business on February 16, 2024, for **$5.6 billion**, resulting in a pre-tax gain of **$4.61 billion**, which is reported in discontinued operations[38](index=38&type=chunk)[40](index=40&type=chunk) - In February 2025, the company acquired Florida Can Manufacturing for **$160 million** in cash to strengthen its supply network in the North and Central America segment[36](index=36&type=chunk) - The company entered an agreement to sell a **41% interest** in its Saudi Arabian business, which is expected to close in Q3 2025 and result in deconsolidation and an estimated gain of **$85 million**[33](index=33&type=chunk) - In May 2025, Ball issued **€850 million** of 4.25% senior notes due in 2032 and used the proceeds to repay outstanding amounts on its revolving credit facilities[62](index=62&type=chunk) - The Board of Directors approved a new **$4.0 billion** share repurchase authorization effective through the end of 2027; in Q2 2025, the company entered into a **$250 million** accelerated share repurchase (ASR) agreement[76](index=76&type=chunk)[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Sales and earnings growth is attributed to higher volumes and favorable pricing, with all segments performing well and strong liquidity supporting shareholder returns [Results of Consolidated Operations](index=28&type=section&id=Results%20of%20Consolidated%20Operations) Q2 sales increased by $379 million from higher volume and price/mix, while net earnings rose due to lower consolidation costs Drivers of Sales Increase - Q2 2025 vs Q2 2024 (in millions) | Driver | Impact | | :--- | :--- | | Higher Volume | +$224 | | Price/Mix | +$127 | | Currency Translation | +$53 | | **Total Increase** | **+$379** | - The decrease in Selling, General and Administrative expenses for the six-month period was primarily due to **$63 million in lower compensation costs**, as 2024 included incremental bonuses related to the successful sale of the aerospace business[117](index=117&type=chunk) [Results of Business Segments](index=31&type=section&id=Results%20of%20Business%20Segments) All beverage packaging segments reported year-over-year growth in sales and comparable operating earnings, driven by increased volumes Segment Performance - Q2 2025 vs Q2 2024 (in millions) | Segment | Net Sales 2025 | Net Sales 2024 | Comp. Op. Earnings 2025 | Comp. Op. Earnings 2024 | | :--- | :--- | :--- | :--- | :--- | | **Bev. Pkg, N. & Central America** | $1,613 | $1,469 | $208 | $210 | | **Bev. Pkg, EMEA** | $1,050 | $880 | $129 | $113 | | **Bev. Pkg, South America** | $477 | $422 | $51 | $37 | [Financial Condition, Liquidity and Capital Resources](index=33&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through cash flow and credit facilities to fund capital expenditures and shareholder returns - The company expects 2025 capital expenditures to be in the range of **$600 million**[142](index=142&type=chunk) - Share repurchases totaled **$1.02 billion** in the first six months of 2025, and the company plans to continue capital return with an estimated **$1.3 billion** in share repurchases for the full year 2025[145](index=145&type=chunk) - As of June 30, 2025, the company had **$1.36 billion** available under its long-term, multi-currency committed revolving credit facilities, which mature in June 2027[150](index=150&type=chunk) - The company utilizes accounts receivable factoring programs with combined limits of approximately **$1.78 billion** as of June 30, 2025, of which **$602 million** was available for sale[138](index=138&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company uses derivative instruments and contractual provisions to manage commodity, interest rate, and currency risks - Ball employs risk management procedures to reduce exposure to fluctuations in commodity prices (e.g., aluminum), interest rates, and currency exchange rates[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[162](index=162&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) No new material legal proceedings were reported during the quarter - There were **no new material events** to report under this item for the three months ended June 30, 2025, other than those already discussed in Note 21[165](index=165&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 7.6 million shares in Q2 2025, with $3.22 billion remaining under the current authorization Share Repurchases - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 2,077,904 | $48.62 | | May 2025 | 1,098,462 | $53.72 | | June 2025 (Open Market) | 795,102 | $54.26 | | June 2025 (ASR) | 3,626,473 | (c) | | **Total Q2** | **7,597,941** | **N/A** | - In June 2025, the company entered into a **$250 million** accelerated share repurchase (ASR) arrangement, receiving an initial delivery of **3.63 million shares**[172](index=172&type=chunk) - As of the end of Q2 2025, **$3.22 billion remained available** under the company's $4.0 billion share repurchase program authorized through 2027[147](index=147&type=chunk)[168](index=168&type=chunk)

Financial Data and Key Metrics Changes - For Q2 2025, comparable diluted earnings per share (EPS) increased to $0.90 from $0.74 in Q2 2024, representing a 22% increase [10] - Comparable net earnings for Q2 2025 were $249 million, driven by higher volume and cost management initiatives, partially offset by higher interest expense and lower interest income [10][12] - The company returned $1.13 billion to shareholders through share repurchases and dividends [9] Business Line Data and Key Metrics Changes - In North and Central America, volume growth was driven by strength in energy drinks and non-alcoholic beverages, although product mix and cost to serve headwinds impacted margins [10][11] - EMEA segment comparable operating earnings increased by 14%, with robust volume performance [11] - South America saw a 38% increase in segment comparable operating earnings, supported by strong volume in Argentina and Chile [12] Market Data and Key Metrics Changes - Global beverage can shipments increased by 4.3% year-over-year in 2025 [12] - North America is expected to see volume growth near the top end of the 1% to 3% long-term range, driven by non-alcoholic categories [14] - EMEA is anticipated to achieve mid-single-digit volume growth in 2025 due to competitive advantages of aluminum packaging [14] Company Strategy and Development Direction - The company aims for 12% to 15% comparable diluted EPS growth for 2025, supported by operational efficiency and strong customer relationships [13][20] - The focus remains on operational excellence, disciplined cost control, and enhancing productivity across the global footprint [18][19] - The company is actively monitoring geopolitical conditions and tariff developments to navigate uncertainties [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive momentum despite external volatility, particularly related to geopolitical events [20] - The company anticipates global volume growth above the long-term 2% to 3% range for 2025, reflecting strong underlying demand [13] - Management highlighted the importance of executing at a high operational level to meet customer expectations reliably [20] Other Important Information - The company expects year-end 2025 net debt to comparable EBITDA to be around 2.75 times [16] - Full-year 2025 interest expense is projected to be in the range of $300 million [18] - The effective tax rate on comparable earnings for 2025 is expected to be slightly above 22% [18] Q&A Session Summary Question: What is driving the outperformance in non-alcohol categories in North America? - Management noted strong growth in energy drinks, with one strategic partner growing nearly 20%, and highlighted the importance of promotional activity and multi-pack purchases [25][26] Question: Can Europe benefit from margin expansion similar to North America? - Management indicated that while margins may not improve significantly, operational leverage is expected to be consistent, with mid-single-digit growth anticipated [32][33] Question: How are customer conversations regarding tariffs and pricing strategies evolving? - Management stated that discussions about 2026 pricing are not yet happening, but noted that customers are focused on securing cans to drive volume [38][39] Question: What is the outlook for Brazil's performance in the second half of the year? - Management expressed confidence in recovery, citing a strong customer relationship that typically reflects market growth [55][56] Question: How is the company positioned regarding aluminum pricing and customer demand? - Management indicated that customers are currently hedged, and the company expects to see changes in buying behavior as pricing dynamics evolve [68][69] Question: What impact has immigration enforcement had on demand? - Management suggested that there may be a benefit from increased multipack purchasing in grocery channels, countering potential demand slowdowns [81][82] Question: How balanced is supply and demand in Europe? - Management acknowledged the need for incremental capacity to meet sustained mid-single-digit growth in Europe [84][85] Question: What are the expectations for manufacturing efficiency going forward? - Management reported improvements in plant performance and emphasized a long-term focus on safety and quality as key to operational efficiency [132][134]

Financial Data and Key Metrics Changes - For Q2 2025, comparable diluted earnings per share (EPS) increased to $0.90 from $0.74 in Q2 2024, representing a 22% increase [8] - Comparable net earnings for Q2 2025 were $249 million, driven by higher volume and cost management initiatives, partially offset by higher interest expense and lower interest income [8][10] - The company returned $1.13 billion to shareholders through share repurchases and dividends [7] Business Line Data and Key Metrics Changes - In North and Central America, volume growth was driven by energy drinks and non-alcoholic beverages, although product mix and cost to serve headwinds impacted margins [8][9] - EMEA segment volume remained robust with a 14% increase in comparable operating earnings, driven by sustained volume growth and operational efficiency [9] - South America saw a 38% increase in segment comparable operating earnings, supported by strong performance in Argentina and Chile, despite Brazil underperforming [10] Market Data and Key Metrics Changes - Global beverage can shipments increased by 4.3% year over year in 2025 [10] - The company anticipates North American volume growth near the top end of the 1% to 3% long-term range, driven by strong demand in non-alcoholic categories [12] - EMEA is expected to see mid-single-digit volume growth in 2025, while South America is projected to exceed the 4% to 6% long-term range due to recovery in Argentina and Chile [12] Company Strategy and Development Direction - The company aims for 12% to 15% comparable diluted EPS growth for 2025, focusing on operational excellence, disciplined cost control, and enhancing productivity [11][15] - The strategic focus includes leveraging the resilience of the global portfolio and managing ongoing uncertainties related to tariffs and geopolitical conditions [15][16] - The company is committed to future-proofing its business by securing long-term contracts and optimizing its operational footprint [16][127] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating external volatility and achieving financial objectives despite geopolitical uncertainties [17] - The company anticipates that the defensive nature of its portfolio will help manage potential economic uncertainties [12][17] - Management noted that while inflationary pressures could impact volume, the current consumer behavior favors multipack purchases, which may sustain demand [88][80] Other Important Information - The company expects to repurchase at least $1.3 billion of shares in 2025, having already purchased $1 billion year to date [14] - Full-year 2025 effective tax rate on comparable earnings is expected to be slightly above 22% due to lower year-over-year tax credits [15] Q&A Session Summary Question: What is driving the outperformance in non-alcohol categories in North America? - Management noted strong growth in energy drinks, with one strategic partner growing nearly 20%, and highlighted successful promotional activities driving multipack purchases [22][24] Question: Why were margins down 140 basis points in North America? - Management attributed margin decline to operational inefficiencies due to unexpected growth, product mix changes, and tariff impacts [26][27] Question: Can Europe benefit from margin expansion like North America? - Management indicated that while margins may not improve significantly, operational leverage will remain consistent, with expectations of mid-single-digit growth [31] Question: How are customer conversations regarding tariffs and pricing strategies evolving? - Management stated that discussions about 2026 pricing are premature, but noted that customers are focused on managing current tariff impacts [38][39] Question: What is the outlook for Brazil's market performance? - Management expressed optimism for recovery in Brazil, citing strong performance from a key customer and overall market growth expectations [52][54] Question: How is the company preparing for potential demand slowdowns? - Management indicated that current trends in multipack purchasing are favorable, and they do not anticipate a slowdown in demand [80][81] Question: What is the impact of scrap metal pricing on the business? - Management stated that scrap metal pricing has been negligible, with more concern about demand side impacts from tariffs [140]

Core Insights - Ball reported revenue of $3.34 billion for the quarter ended June 2025, reflecting a 12.8% increase year-over-year and surpassing the Zacks Consensus Estimate of $3.15 billion by 5.86% [1] - The company's EPS for the quarter was $0.90, up from $0.74 in the same quarter last year, exceeding the consensus estimate of $0.87 by 3.45% [1] Revenue Breakdown - Net Sales- Other: $198 million, slightly above the estimated $197.02 million, representing a 5.3% increase year-over-year [4] - Net Sales- Beverage packaging, EMEA: $1.05 billion, exceeding the estimate of $976.65 million, with a year-over-year growth of 19.3% [4] - Net Sales- Beverage packaging, South America: $477 million, above the estimated $450.71 million, showing a 13% increase compared to the previous year [4] - Net Sales- Beverage packaging, North and Central America: $1.61 billion, surpassing the estimate of $1.53 billion, with a 9.8% year-over-year growth [4] Comparable Operating Earnings - Comparable operating earnings for Beverage packaging, North and Central America were $208 million, slightly above the average estimate of $206.19 million [4] - Comparable operating earnings for Beverage packaging, South America were $51 million, exceeding the average estimate of $42.15 million [4] - Comparable operating earnings for Beverage packaging, EMEA were $129 million, above the average estimate of $120.25 million [4] - Comparable operating earnings for Other were $8 million, significantly better than the average estimate of -$6.94 million [4] Stock Performance - Ball's shares have returned -1.4% over the past month, while the Zacks S&P 500 composite has increased by 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Ball Corporation reported better-than-expected Q2 earnings driven by strong demand for aluminum cans in North America and Europe, and raised its annual profit guidance [1] Group 1: Financial Performance - Q2 revenue increased by 7.8% to $3.34 billion, surpassing market expectations of $3.12 billion [1] - Adjusted earnings per share were $0.90, exceeding the anticipated $0.87 [1] - Global shipments of aluminum packaging products grew by 4.1%, up from 2.6% in the previous three months [1] Group 2: Market Demand - Increased demand from packaged food companies is attributed to consumers opting for canned foods and beverages amid high inflation [1] - Beverage packaging sales in North and Central America rose from $1.47 billion to $1.61 billion year-over-year [1] Group 3: Future Outlook - The company expects comparable earnings to grow by 12% to 15% by 2025, an increase from the previous forecast of 11% to 14% [1] Group 4: Cost Management - Tariffs on steel and aluminum have raised input costs for companies like Ball [2] - The company believes the direct impact of announced tariffs is manageable and is working closely with customers to mitigate the effects of aluminum price fluctuations [2] - The CEO indicated that the company is strictly controlling costs in light of potential geopolitical uncertainties and market volatility in the second half of the year [2]