Group 1 - Ball Corporation has completed the sale of 41% of its 51% ownership interest in Ball United Arab Can Manufacturing Company to ORG Technology Co., Ltd. for approximately USD $70 million [1] - The transaction enhances the relationship with ORG and combines Ball's global can innovation with ORG's regional manufacturing capabilities [1] - Following the sale, Ball retains a 10% ownership interest in UAC and has deconsolidated the joint venture [1] Group 2 - The CEO of Ball Corporation emphasized the focus on a disciplined, returns-oriented portfolio and the importance of maintaining a strategic minority position for flexibility in investments [2] - The collaboration with ORG aims to better serve customers in Saudi Arabia and the broader Middle East [2] - Ball Corporation reported net sales of $11.80 billion for 2024, excluding the divested aerospace business [3]

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].

Core Viewpoint - Ball Corporation has initiated a public offering of $750 million in Senior Notes due 2033, with the final terms dependent on market conditions [1] Group 1: Offering Details - The offering consists of $750 million aggregate principal amount of Senior Notes due 2033 [1] - The exact amount, terms, and timing of the offering will be influenced by market conditions and other factors [1] Group 2: Use of Proceeds - Ball plans to use the net proceeds for general corporate purposes, which may include refinancing or repaying debt [2] - A portion of the net proceeds will be used to repay outstanding borrowings under its U.S. dollar and multi-currency revolving credit facilities [2] Group 3: Management and Coordination - BofA Securities, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., and Morgan Stanley & Co. LLC are acting as global coordinators and joint book-running managers for the offering [3] Group 4: Company Overview - Ball Corporation provides innovative and sustainable aluminum packaging solutions for various sectors, employing 16,000 people globally [6] - The company reported net sales of $11.80 billion for 2024, excluding its divested aerospace business [6]

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]

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]