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]

Core Insights - Ball (BALL) reported quarterly earnings of $0.9 per share, exceeding the Zacks Consensus Estimate of $0.87 per share, and up from $0.74 per share a year ago, representing an earnings surprise of +3.45% [1] - The company achieved revenues of $3.34 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.86%, compared to $2.96 billion in the same quarter last year [2] - Ball has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $3.29 billion, and for the current fiscal year, it is $3.52 on revenues of $12.61 billion [7] - The trend of estimate revisions for Ball was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6] Industry Context - The Containers - Metal and Glass industry, to which Ball belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Ball Corporation Q2 2025 Earnings Release](index=1&type=section&id=Ball%20Reports%20Second%20Quarter%202025%20Results) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Highlights) The company reported strong Q2 2025 results, with significant EPS growth, increased global shipments, and raised full-year guidance Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $3.34 billion | $2.96 billion | | GAAP Net Earnings | $212 million | $158 million | | GAAP Diluted EPS | $0.76 | $0.51 | | Comparable Net Earnings | $249 million | $232 million | | Comparable Diluted EPS | $0.90 | $0.74 | - Global aluminum packaging shipments increased by **4.1%** in the second quarter[8](index=8&type=chunk) - The company returned **$1.13 billion** to shareholders through share repurchases and dividends in the first six months of 2025[6](index=6&type=chunk)[8](index=8&type=chunk) - Full-year guidance for comparable diluted earnings per share growth was increased to a range of **12-15%**[6](index=6&type=chunk)[8](index=8&type=chunk)[19](index=19&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) The beverage packaging segments showed overall growth, though the North and Central America segment's earnings slightly declined due to costs [Beverage Packaging, North and Central America](index=2&type=section&id=Beverage%20packaging%2C%20North%20and%20Central%20America) This segment's sales grew on higher volume, but operating earnings slightly decreased due to unfavorable price/mix and increased costs Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $1.61 billion | $1.47 billion | | Comparable Operating Earnings | $208 million | $210 million | - Segment volume increased by a **mid-single-digit percentage** year-over-year[10](index=10&type=chunk) [Beverage Packaging, EMEA](index=3&type=section&id=Beverage%20Packaging%2C%20EMEA) The EMEA segment delivered strong growth in sales and operating earnings, driven by higher shipments and favorable price/mix Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $1.05 billion | $880 million | | Comparable Operating Earnings | $129 million | $113 million | - Segment volume increased by a **mid-single-digit percentage** year-over-year, contributing to the earnings growth[12](index=12&type=chunk) [Beverage Packaging, South America](index=3&type=section&id=Beverage%20Packaging%2C%20South%20America) The South America segment achieved significant earnings growth, propelled by a low-single-digit increase in segment volume Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $477 million | $422 million | | Comparable Operating Earnings | $51 million | $37 million | - Year-over-year segment volume increased by a **low-single-digit percentage**[13](index=13&type=chunk) [Non-reportable Segments](index=3&type=section&id=Non-reportable) This category's results were affected by the deconsolidation of the aluminum cups business and increased corporate expenses - The company closed a transaction for its aluminum cups business on March 21, 2025, resulting in its **deconsolidation**[15](index=15&type=chunk)[35](index=35&type=chunk) [2025 Outlook](index=3&type=section&id=Outlook) The company raised its full-year EPS guidance and plans to return at least $1.5 billion to shareholders while managing trade volatility - The company increased its full-year 2025 guidance for comparable diluted earnings per share growth to **12-15%**[6](index=6&type=chunk)[19](index=19&type=chunk) - Ball expects to return at least **$1.5 billion** to shareholders in 2025, supported by robust free cash flow generation[8](index=8&type=chunk)[17](index=17&type=chunk) - The company is managing the impact of tariffs and aluminum premium volatility through **local sourcing and manufacturing strategies**[16](index=16&type=chunk) [Condensed Financial Statements](index=6&type=section&id=Condensed%20Financial%20Statements) The unaudited statements show year-over-year revenue and net earnings growth, alongside changes in the balance sheet and cash flow Condensed Consolidated Statements of Earnings (Three Months Ended June 30) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net sales | $3,338 | $2,959 | | Earnings before taxes | $268 | $200 | | Net earnings attributable to Ball Corporation | $212 | $158 | Condensed Consolidated Balance Sheets (As of June 30) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total current assets | $5,252 | $5,752 | | Total assets | $18,608 | $18,961 | | Long-term debt | $6,479 | $5,517 | | Total equity | $5,277 | $6,983 | Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Cash provided by (used in) operating activities | ($333) | ($995) | | Cash provided by (used in) investing activities | ($391) | $5,204 | | Cash provided by (used in) financing activities | $88 | ($3,496) | | Change in cash, cash equivalents and restricted cash | ($613) | $638 | [Notes to the Condensed Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) The notes detail significant corporate activities, including the aerospace business divestiture and non-GAAP measure reconciliations - The divestiture of the aerospace business was completed on February 16, 2024, for a purchase price of **$5.6 billion**[30](index=30&type=chunk)[37](index=37&type=chunk) - In February 2025, the company acquired Florida Can Manufacturing for **$160 million** in cash to strengthen its supply network[36](index=36&type=chunk) - On March 21, 2025, Ball formed a strategic partnership for its aluminum cups business, **deconsolidating the business**[32](index=32&type=chunk)[35](index=35&type=chunk) Reconciliation of Net Earnings to Comparable Net Earnings (Q2) | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net earnings attributable to Ball Corporation (GAAP) | $212 | $158 | | Facility closure costs and other items | $12 | $60 | | Amortization of acquired Rexam intangibles | $35 | $33 | | Debt refinancing and other costs | $— | $1 | | Non-comparable tax items | ($11) | ($23) | | (Gain) loss on Aerospace disposal | $1 | $— | | Aerospace disposition compensation | $— | $3 | | **Comparable Net Earnings (Non-GAAP)** | **$249** | **$232** |

Core Insights - Ball Corporation reported strong second quarter 2025 results, with net earnings of $212 million and diluted earnings per share of 76 cents, compared to $158 million and 51 cents in the same period of 2024 [3][12] - The company increased its full-year guidance for comparable diluted earnings per share growth to 12-15% due to a robust financial position and focused growth strategy [5][18] - Ball returned $1.13 billion to shareholders in the first half of 2025 and is on track to return at least $1.5 billion by year-end [12][17] Financial Performance - Second quarter 2025 net sales reached $3.34 billion, up from $2.96 billion in 2024, reflecting higher volume and price/mix [3][12] - Comparable net earnings for the second quarter were $249 million, or 90 cents per diluted share, compared to $232 million, or 74 cents per diluted share in 2024 [4][50] - The company reported a year-over-year increase in global aluminum packaging shipments of 4.1% in the second quarter [12] Segment Performance - Beverage Packaging, North and Central America, reported comparable operating earnings of $208 million on sales of $1.61 billion, compared to $210 million on sales of $1.47 billion in 2024 [7][8] - Beverage Packaging, EMEA, saw comparable operating earnings increase to $129 million on sales of $1.05 billion, up from $113 million on sales of $880 million in 2024 [9][10] - Beverage Packaging, South America, reported comparable operating earnings of $51 million on sales of $477 million, compared to $37 million on sales of $422 million in 2024 [13] Strategic Outlook - The company is focused on advancing sustainable aluminum packaging and enhancing operational efficiencies while managing costs [5][18] - Ball continues to assess the evolving trade landscape and its implications for business, emphasizing local sourcing and manufacturing to mitigate international trade fluctuations [16] - The company remains committed to returning value to shareholders through share repurchases and dividends, supported by strong free cash flow generation [17][18]

Core Insights - Ball Corporation (BALL) is set to report its second-quarter 2025 results on August 5, with net sales estimated at $3.15 billion, reflecting a 6.6% increase year-over-year [1] - The earnings consensus estimate is 87 cents per share, indicating a year-over-year growth of 17.6%, although this estimate has decreased by 1.1% over the past 60 days [1][5] - The company has a history of exceeding earnings estimates, with an average surprise of 4.9% over the last four quarters [2][3] Financial Performance Expectations - Q2 sales are projected to be driven by Beverage Packaging across all regions, despite rising labor and input costs potentially offsetting volume gains [5] - The Beverage Packaging segment in North and Central America is expected to generate net sales of $1.52 billion, a 3.2% year-over-year increase, with a projected operating income decline of 14.4% to $180 million [8] - The Europe segment's sales are anticipated to reach $923 million, indicating a 4.9% growth, while operating income is expected to drop by 13.6% [9] - The South America segment is projected to have net sales of $448 million, reflecting a 6.2% increase, but with a forecasted operating income decrease of 12.8% [10] Market Context - Ball Corporation's stock has declined by 10.1% over the past year, contrasting with a 1.9% decline in the industry [11] - The company is currently facing challenges due to weaker-than-expected demand and high input costs, which are likely to impact its Q2 performance [7]

Group 1 - Ball Corporation's board declared a cash dividend of 20 cents per share, payable on September 16, 2025, to shareholders of record as of September 2, 2025 [1] - Edmund "Ted" Doering has been elected as the new Chief Information Officer (CIO) of Ball Corporation, succeeding Brian Gabbard, who will retire at the end of September [2] - Ted Doering brings over 30 years of global IT leadership experience, previously serving as executive vice president and CIO at Berry Global, and has expertise in value creation and enterprise risk management [2] Group 2 - Ball Corporation will announce its second quarter 2025 earnings on August 5, 2025, before trading begins on the New York Stock Exchange [3] - A quarterly conference call will be held at 9 a.m. Mountain Time on the same day to discuss the company's results and performance [3] - A replay and transcript of the conference call will be available within 48 hours on Ball's website [4] Group 3 - Ball Corporation specializes in innovative and sustainable aluminum packaging solutions for various sectors, employing 16,000 people globally [4] - The company reported net sales of $11.80 billion for 2024, excluding the divested aerospace business [4]

Company Performance - Ball Corporation has recently experienced a rebound in volumes and an improved pricing mix for aluminum products [1] Investment Perspective - The analysis suggests a long-term investment horizon of 5-10 years, focusing on a portfolio that includes a mix of growth, value, and dividend-paying stocks, with a particular emphasis on value [1]