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Core Insights - Ball Corporation is a leading global provider of sustainable aluminum packaging for beverage, personal care, and household products [2][4] - The company will present at the Baird 2025 Global Industrial Conference on November 13, 2025 [1] - In 2024, Ball Corporation reported net sales of $11.80 billion, excluding the divested aerospace business [2] Company Developments - Damiel W. Fisher, chairman and CEO, and Daniel J. Rabbitt, senior vice president and interim CFO, are scheduled to speak at the conference [2] - John E. Panichella, CEO of Solenis, has been appointed to Ball Corporation's board of directors [4] Financial Performance - The company reported third quarter 2025 results, with references to net sales and comparable operating earnings [3]

Core Insights - Ball Corporation reported third-quarter 2025 adjusted earnings per share (EPS) of $1.02, matching the Zacks Consensus Estimate and reflecting a 12% year-over-year improvement driven by higher volumes across all segments [1][8] - Total sales reached $3.38 billion, surpassing the previous year's $3.08 billion and beating the Zacks Consensus Estimate of $3.32 billion, with global aluminum packaging shipments increasing by 3.9% year over year [2][8] Financial Performance - The cost of sales was $2.7 billion, an increase of 11.4% from the prior-year quarter, while gross profit totaled $678 million, up 3% from $657 million, resulting in a gross margin of 20.1%, down from 21.3% in the previous year [5] - Selling, general and administrative expenses decreased by 8.5% year over year to $130 million, with comparable segment operating earnings rising to $437 million from $409 million in the prior year [6] Segment Performance - Beverage Packaging North and Central America segment revenues increased by 12.5% year over year to $1.64 billion, with operating earnings of $210 million, up 3% year over year [7] - Beverage Packaging EMEA segment revenues rose by 11% year over year to $1.06 billion, with operating earnings growing by 14.8% to $147 million [8][9] - Beverage Packaging South America segment revenues increased by 5% year over year to $508 million, with operating earnings rising by 2.6% to $80 million [9] Cash Flow and Debt - Cash and cash equivalents at the end of Q3 2025 were $0.57 billion, down from $1.44 billion a year earlier, with cash generated from operating activities amounting to $51 million compared to a cash outflow of approximately $385 million in the previous year [10] - Long-term debt increased to $6.86 billion as of September 30, 2025, from $5.35 billion a year prior, with the company returning $1.27 billion to shareholders through share repurchases and dividends [11] Outlook - The company anticipates growth in comparable earnings per share of 12-15% for 2025 [12] Market Performance - Ball Corporation's shares have declined by 14.6% year to date, compared to a 6.4% decline in the industry [13]

Financial Performance - Net sales for the three months ended September 30, 2025, increased by $297 million to $3,379 million, driven by higher volume ($145 million), price/mix ($120 million), and currency translation ($64 million) compared to the same period in 2024[118]. - Net earnings attributable to Ball Corporation for the three months ended September 30, 2025, rose by $124 million to $321 million, primarily due to business consolidation and other activities ($163 million) and reportable segments results ($28 million) offset by higher interest expense ($18 million) and income tax provision ($34 million) compared to the same period in 2024[119]. - For the nine months ended September 30, 2025, net sales were $5,526 million, with a gross profit of $670 million and net earnings of $379 million[168]. Cost and Expenses - Cost of sales for the three months ended September 30, 2025, was $2,701 million, representing 80% of consolidated net sales, with an increase of $244 million attributed to higher raw materials costs driven by higher aluminum prices[121]. - Selling, general and administrative expenses decreased to $130 million for the three months ended September 30, 2025, representing 4% of consolidated net sales, primarily due to lower professional services costs[124]. - Interest expense for the three months ended September 30, 2025, was $85 million, an increase from $67 million in 2024, primarily due to a higher amount of weighted average principal outstanding[127]. Tax and Legal Matters - The effective tax rate for the three months ended September 30, 2025, was 19.4%, an increase from 18.5% in 2024, primarily due to lower state and local tax credits[128][130]. - The company is subject to various legal proceedings and has been designated as a potentially responsible party for hazardous waste site clean-ups[165]. Segment Performance - Beverage Packaging segment net sales for the three months ended September 30, 2025, were $1,638 million, an increase of $182 million compared to the same period in 2024, driven by price/mix increases ($106 million) and higher volume ($76 million)[132][133]. - Comparable operating earnings for the Beverage Packaging segment for the three months ended September 30, 2025, were $210 million, representing 13% of segment net sales, a slight decrease from 14% in the same period in 2024[132]. - Beverage Packaging segment net sales for the three months ended September 30, 2025, were $1,059 million, up from $950 million in 2024, representing an increase of 11.5%[135]. - Comparable operating earnings for the Beverage Packaging segment in EMEA for the three months ended September 30, 2025, were $147 million, compared to $128 million in 2024, reflecting a growth of 14.8%[135]. - Beverage Packaging segment net sales in South America for the three months ended September 30, 2025, were $508 million, an increase of 5% from $484 million in 2024[137]. - Comparable operating earnings for the South America segment for the three months ended September 30, 2025, were $80 million, up from $78 million in 2024, maintaining a margin of 16%[137]. Cash Flow and Debt - Cash flows provided by operating activities were $51 million for the nine months ended September 30, 2025, a significant improvement from a cash outflow of $385 million in 2024[144]. - Total interest-bearing debt increased to $7.26 billion as of September 30, 2025, compared to $5.69 billion at the end of 2024[158]. - The company has approximately $1.70 billion available under its long-term, multi-currency committed revolving credit facilities as of September 30, 2025[161]. - As of September 30, 2025, the company maintained a leverage ratio of no greater than 4.5 times and had the capacity to borrow an additional $2.39 billion under its credit facilities[163]. Shareholder Returns and Investments - The company plans to return approximately $220 million to shareholders in dividends for the full year 2025, including a cash dividend of 20 cents per share[152]. - Share repurchases totaled $1.11 billion during the nine months ended September 30, 2025, compared to $1.06 billion in the same period of 2024[155]. - The company expects capital expenditures for property, plant, and equipment to be in the range of $465 million for 2025, with $375 million already contractually committed[152]. Strategic Activities - Business consolidation and other activities resulted in income of $78 million for the three months ended September 30, 2025, compared to charges of $85 million in 2024, including a gain related to the sale of the Saudi Arabian business[125]. - The company continues to evaluate potential strategic acquisitions and divestitures to benefit shareholders, indicating ongoing market expansion strategies[114]. Subsidiary Transactions - The obligor group recorded sales to other subsidiary companies of $952 million for the nine months ended September 30, 2025[170]. - The obligor group held long-term notes receivable from other subsidiary companies amounting to $9.15 billion as of September 30, 2025[169]. - The company sold 41 percent of its share in Ball United Arab Can Manufacturing Company in August 2025, resulting in deconsolidation[164]. - The company received dividends from other subsidiary companies totaling $54 million during the year ended December 31, 2024[170]. Risk Management - The company employs risk management policies to mitigate exposure to fluctuations in commodity prices, interest rates, and currency exchange rates[172].

Financial Data and Key Metrics Changes - Beverage can volumes grew by 4.2% in Q3 2025, comparable operating earnings increased by 5.1%, and comparable diluted earnings per share rose by 12.1% [7][8] - Third Quarter comparable net earnings were $277 million, driven by higher volume and cost management initiatives, partially offset by higher interest expense and lower interest income [8][14] - The company has returned $1.35 billion to shareholders through share repurchases and dividends as of the call [7] Business Line Data and Key Metrics Changes - In North and Central America, segment comparable operating earnings increased by 3.5%, driven by stronger-than-expected volume performance, particularly in energy drinks and non-alcoholic beverages [8][10] - EMEA segment volume growth was mid-single-digit percent, contributing to a 14.8% increase in segment comparable operating earnings [9] - South America saw a 2.6% increase in segment comparable operating earnings, with mid-single-digit percent volume growth supported by strong performance in Argentina [9] Market Data and Key Metrics Changes - The company anticipates 2025 global volume growth to exceed the long-term 2%-3% range, with all reportable segment businesses expected to perform in line with or ahead of long-term targets [10][11] - In EMEA, mid-single-digit percent volume growth is expected in 2025, driven by the competitive advantages of aluminum packaging [11] - North America is expected to exceed the top end of the long-term 1%-3% volume growth range in 2025 [12] Company Strategy and Development Direction - The company remains focused on delivering 12%-15% comparable diluted EPS growth for the year, with a strong emphasis on operational excellence and cost discipline [10][17] - The company is actively managing uncertainties related to tariffs and consumer pressures, particularly in the U.S., while maintaining confidence in its ability to navigate these dynamics [8][9] - Long-term contracts and disciplined financial management are seen as key to delivering consistent, high-quality results [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain momentum and deliver meaningful value to shareholders despite external challenges [10][17] - The geopolitical landscape and tariff developments are being closely monitored, with proactive measures in place to protect the business [9][10] - Management highlighted the importance of operational precision and reliability in meeting customer expectations amid tight capacity conditions [17] Other Important Information - The company anticipates year-end 2025 net debt to comparable EBITDA to be slightly above 2.75 times, with share repurchases expected to reach at least $1.3 billion in 2025 [14] - Full-year 2025 effective tax rate on comparable earnings is expected to be slightly above 22% [14] - The company has made a $47 million investment in ORG Technology, a strategic relationship linked to its beverage can business in China [92][93] Q&A Session Summary Question: How did operational inefficiencies in the Beverage NCA segment play out in Q3? - Management noted that while operating profit improved, the operating leverage remains below historical norms due to a shift towards lower margin categories and a focus on aligning with fast-growing brands [23][24] Question: What are the expectations for volume growth in 2026? - Management indicated confidence in growing global volumes in line with long-term expectations, with more detailed guidance to come in the following weeks [26][27] Question: How are tariff situations affecting volume patterns? - Management stated that current price increases are being passed through to customers, and a reversal of tariffs would positively impact costs, although demand challenges may arise from economic conditions [34][35] Question: What is the outlook for the Oregon plant and its impact on volume? - The Oregon plant is expected to unlock significant volume improvements in 2027, with startup costs anticipated in 2026 [47][48] Question: What are the expectations for CapEx in 2026? - Management indicated that CapEx would likely be in line with depreciation levels, with a focus on maintaining a conservative balance sheet [66][82] Question: How is the company managing inventory levels? - Management explained that increased inventories are a combination of higher aluminum costs and a strategic decision to ensure readiness for customer demand [90][91] Question: What are the main concerns for the company moving forward? - Management expressed confidence in the team's ability to navigate challenges, focusing on operational execution and maintaining a positive outlook despite external uncertainties [106][107]

Financial Data and Key Metrics Changes - Beverage can volumes grew by 4.2% in Q3 2025, with comparable operating earnings increasing by 5.1% and comparable diluted earnings per share rising by 12.1% [5][6] - Comparable net earnings for Q3 2025 were $277 million, driven by higher volume and cost management initiatives, partially offset by higher interest expense and lower interest income [6][11] - The company has returned $1.35 billion to shareholders through share repurchases and dividends as of the call [5] Business Line Data and Key Metrics Changes - In North and Central America, segment comparable operating earnings increased by 3.5%, driven by stronger-than-expected volume performance, particularly in energy drinks and non-alcoholic beverages [6][10] - EMEA segment volume growth remained robust, contributing to a 14.8% increase in segment comparable operating earnings [7] - In South America, segment comparable operating earnings increased by 2.6%, supported by strong performance in Argentina, while Brazil's market was slightly below expectations due to weather-related issues [7][9] Market Data and Key Metrics Changes - The company anticipates global volume growth to exceed the long-term range of 2%-3% in 2025, with all reportable segment businesses expected to perform in line with or ahead of long-term targets [8][10] - In EMEA, mid-single-digit volume growth is expected in 2025, driven by the competitive advantages of aluminum packaging [9] - In South America, full-year 2025 volume growth is expected to fall within the long-term range of 4%-6% [9] Company Strategy and Development Direction - The company remains focused on delivering 12%-15% comparable diluted EPS growth for the year, emphasizing operational excellence and cost discipline [8][14] - The company is actively managing uncertainties related to tariffs and consumer pressures, particularly in the U.S., while maintaining confidence in its ability to navigate these dynamics [6][10] - Long-term contracts and disciplined financial management are highlighted as key strategies to deliver consistent, high-quality results [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain momentum despite external challenges, with a focus on delivering meaningful value to shareholders [8][10] - The evolving geopolitical landscape and tariff developments are being monitored closely, with proactive measures in place to protect the business [7][12] - Management indicated that the company is well-positioned to capitalize on market opportunities and drive continued performance improvement [7][10] Other Important Information - The company expects year-end 2025 net debt to comparable EBITDA to be slightly above 2.75 times, with a share repurchase target of at least $1.3 billion in 2025 [11] - Full-year 2025 effective tax rate on comparable earnings is expected to be slightly above 22% due to lower year-over-year tax credits [11] - The company has made a $47 million investment in ORG Technology, a strategic relationship linked to its beverage can business in China [89][90] Q&A Session Summary Question: How did operational dynamics play out for the beverage NCA segment in Q3? - Management noted that while operating profit improved, the operating leverage remains below historical norms due to a shift towards lower margin categories and a focus on aligning with fast-growing brands [19][20] Question: What are the expectations for volume growth in 2026? - Management indicated confidence in growing volumes in line with long-term expectations, with a focus on finishing a strong 2025 before providing detailed guidance for 2026 [23][24] Question: How are tariff situations affecting volume patterns? - Management stated that current price increases are being passed through to customers, and a reversal of tariffs would positively impact costs, although demand challenges may arise from broader economic conditions [30][31] Question: What is the outlook for the North American market in 2026? - Management expressed a strong contractual outlook and anticipated that growth would be constrained until the new Oregon facility is operational, with expectations for improved profitability in 2027 [42][45] Question: What are the concerns regarding supply chain and metal supply? - Management confirmed that supply chain challenges have been effectively managed, and while there are ongoing issues with aluminum supply, the medium to long-term outlook remains positive [114][115]

Core Insights - Ball (BALL) reported quarterly earnings of $1.02 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.91 per share a year ago [1] - The company achieved revenues of $3.38 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.71% and up from $3.08 billion year-over-year [2] - Ball's stock has underperformed, losing approximately 14.6% since the beginning of the year, while the S&P 500 has gained 16.5% [3] Earnings Performance - The earnings surprise for the previous quarter was +3.45%, with actual earnings of $0.90 per share compared to an expected $0.87 [1] - Over the last four quarters, Ball has surpassed consensus EPS estimates three times [1] Revenue Performance - Ball has also topped consensus revenue estimates three times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.90 on revenues of $3.09 billion, and for the current fiscal year, it is $3.56 on revenues of $12.85 billion [7] Market Outlook - The company's earnings outlook is crucial for assessing future stock performance, especially in light of recent estimate revisions [4] - The Zacks Rank for Ball is currently 4 (Sell), indicating expectations of underperformance in the near future [6] - The Containers - Metal and Glass industry, to which Ball belongs, is currently in the bottom 13% of over 250 Zacks industries, which may negatively impact stock performance [8]

Financial Performance - Ball Corporation reported third quarter 2025 net earnings of $321 million, or diluted earnings per share of $1.18, compared to $197 million and $0.65 per share in 2024, representing a year-over-year increase of 62.4% in net earnings and 81.5% in earnings per share [4]. - Comparable net earnings for the third quarter 2025 were $277 million, or $1.02 per diluted share, compared to $278 million, or $0.91 per diluted share in 2024, indicating a 12.1% increase in earnings per share [4][8]. - The company reported a year-to-date net sales of $9.81 billion for the first nine months of 2025, compared to $8.92 billion in the same period of 2024, marking a 10% increase [25]. - Net earnings for the nine months ended September 30, 2025, were $715 million, a decrease from $4,044 million in the same period of 2024 [26]. - Comparable diluted earnings per share increased to $1.02 in Q3 2025 from $0.91 in Q3 2024, reflecting a 12% growth [51]. - Comparable EBITDA for the nine months ended September 30, 2025, was $1,537 million, up from $1,472 million in the same period of 2024, indicating a 4% increase [55]. - Facility closure costs and other non-comparable items impacted net earnings by $(78) million in Q3 2025, compared to a positive impact of $85 million in Q3 2024 [54]. Sales and Revenue Growth - Total net sales for the third quarter 2025 were $3.38 billion, up from $3.08 billion in 2024, reflecting a year-over-year growth of 9.7% [4][25]. - Beverage Packaging segment comparable operating earnings for North and Central America were $210 million on sales of $1.64 billion, compared to $203 million on sales of $1.46 billion in 2024, reflecting higher volume [9]. - Beverage Packaging segment comparable operating earnings for EMEA were $147 million on sales of $1.06 billion, up from $128 million on sales of $950 million in 2024, attributed to higher shipments and currency translation [11]. - Net sales for Beverage packaging, North and Central America increased to $4,714 million for the nine months ended September 30, 2025, up from $4,328 million in 2024, representing a growth of 8.9% [40]. - Comparable segment operating earnings for Beverage packaging, EMEA increased to $372 million for the nine months ended September 30, 2025, compared to $326 million in 2024, reflecting a growth of 14.1% [40]. Shareholder Returns and Cash Flow - Ball returned $1.27 billion to shareholders through share repurchases and dividends in the first nine months of 2025, with a target to return at least $1.5 billion by year-end [5][8]. - Cash provided by operating activities was $51 million for the nine months ended September 30, 2025, compared to cash used of $385 million in 2024 [26]. - The company recorded a total cash provided by operating activities of $51 million for the nine months ended September 30, 2025, with capital expenditures of $304 million, resulting in a free cash flow of $(253) million [55]. - Adjusted free cash flow for the nine months ended September 30, 2025, was $(193) million after adding $60 million for cash taxes paid related to the Aerospace disposition [55]. - Cash and cash equivalents decreased to $579 million at the end of the period from $1,444 million in 2024 [26]. Strategic Initiatives - The company expects comparable diluted earnings per share growth in the range of 12-15% for 2025, supported by a focus on sustainable aluminum packaging and operational excellence [8][21]. - Ball's strategic priorities include local sourcing and manufacturing to mitigate trade volatility, with a commitment to generating strong free cash flow and long-term shareholder value [17][18]. - The acquisition of Florida Can Manufacturing for $160 million is expected to enhance the supply network in North and Central America [38]. - The company completed the divestiture of its aerospace business for a purchase price of $5.6 billion, resulting in a pre-tax gain of $4.61 billion [39]. Debt and Financial Ratios - Ball Corporation's total debt at the end of the reporting period was $7,208 million, with net debt amounting to $6,640 million [55]. - Ball Corporation's interest coverage ratio improved to 6.67x, while leverage stood at 3.31x as of September 30, 2025 [55]. Asset Management - Total assets decreased to $18,721 million as of September 30, 2025, from $18,824 million in 2024 [28]. - Changes in working capital components resulted in a cash outflow of $909 million for the nine months ended September 30, 2025, compared to $630 million in 2024 [26]. - The company recognized a gain of $86 million from the sale of 41% of its interest in Ball United Arab Can Manufacturing Company [35]. - The company recognized a gain of $86 million from the sale of its Saudi Arabian business during the three months ended September 30, 2025 [51]. - The amortization of acquired Rexam intangibles was $33 million for Q3 2025, slightly down from $34 million in Q3 2024 [54].

Core Insights - Ball Corporation reported strong third-quarter results for 2025, with net earnings of $321 million, or $1.18 per diluted share, on sales of $3.38 billion, compared to $197 million, or $0.65 per diluted share, on sales of $3.08 billion in 2024 [2][10] - The company returned over $1 billion to shareholders in the first nine months of 2025 and is on track to return at least $1.5 billion by year-end [4][10] - Ball's comparable net earnings for the third quarter were $277 million, or $1.02 per diluted share, slightly down from $278 million, or $0.91 per diluted share, in 2024 [3][10] Financial Performance - On a U.S. GAAP basis, third-quarter net sales increased to $3.38 billion from $3.08 billion year-over-year, reflecting higher volumes and price/mix [2][10] - Comparable operating earnings for the Beverage Packaging segment in North and Central America were $210 million on sales of $1.64 billion, up from $203 million on sales of $1.46 billion in 2024 [5][10] - The EMEA segment reported comparable operating earnings of $147 million on sales of $1.06 billion, compared to $128 million on sales of $950 million in 2024 [6][10] Strategic Initiatives - The company emphasized a disciplined growth strategy and operational excellence, which contributed to higher volumes and operating earnings [4][10] - Investments in innovation and sustainability are aimed at meeting evolving consumer needs, enhancing manufacturing efficiencies, and providing resilience against macroeconomic volatility [4][10] - Ball Corporation continues to focus on local sourcing and manufacturing to mitigate risks associated with international trade fluctuations [14][10] Shareholder Returns - In the first nine months of 2025, Ball returned $1.27 billion to shareholders through share repurchases and dividends [10] - The company is committed to maintaining a robust financial foundation to ensure attractive returns while positioning for long-term value creation [15][10] Market Outlook - Ball Corporation anticipates comparable diluted earnings per share growth in the range of 12-15% for 2025 [16][10] - The company remains vigilant regarding ongoing geopolitical and macroeconomic volatility but is well-positioned to achieve its objectives [4][10]

Core Insights - Ball Corporation (BALL) is set to report its third-quarter 2025 results on November 4, with net sales expected to reach $3.32 billion, reflecting a 7.8% year-over-year growth. Earnings per share (EPS) is estimated at $1.02, indicating a 12.1% increase from the previous year, although the consensus has decreased by 1.9% in the last 60 days [1][4]. Financial Estimates - The Zacks Consensus Estimate for BALL's EPS has shown a downward trend over the past 60 days, with current estimates at $1.02, down from $1.04 two months ago, indicating a revision of -1.92% [2][5]. - The Beverage Packaging segment in North and Central America is projected to generate net sales of $1.50 billion, a 3.3% increase year-over-year, with an expected operating income decline of 11.8% to $179 million [8]. - The Beverage Packaging segment in Europe is estimated to achieve sales of $991 million, representing a 4.3% growth, while operating income is anticipated to drop by 15.4% to $108 million [9]. - The South America segment's net sales are expected to be $525 million, indicating an 8.5% increase, but with a projected operating income decline of 24.7% to $59 million [10]. Market Performance - BALL's stock has experienced a decline of 24.5% over the past year, compared to a 16.3% decrease in the industry [11]. Demand and Operational Factors - The company has faced weaker-than-expected demand due to muted customer spending amid higher retail prices, particularly in the U.S., which is likely to impact third-quarter results [6]. - Despite these challenges, BALL has focused on improving efficiency and reducing costs, which may help mitigate the negative impacts on margins [7].