Ball (BALL) - 2025 Q2 - Quarterly Results

Ball Corporation Q2 2025 Earnings Release Second Quarter 2025 Financial 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] - The company returned $1.13 billion to shareholders through share repurchases and dividends in the first six months of 2025[6][8] - Full-year guidance for comparable diluted earnings per share growth was increased to a range of 12-15%[6][8][19] Business Segment Performance 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 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] Beverage Packaging, EMEA 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] Beverage Packaging, South America 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] Non-reportable Segments 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][35] 2025 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][19] - Ball expects to return at least $1.5 billion to shareholders in 2025, supported by robust free cash flow generation[8][17] - The company is managing the impact of tariffs and aluminum premium volatility through local sourcing and manufacturing strategies[16] Condensed Financial Statements The unaudited statements show year-over-year revenue and net earnings growth, alongside changes in the balance sheet and cash flow Condensed Consolidated Statements of Earnings (Three Months Ended June 30) | ($ 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 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][37] - In February 2025, the company acquired Florida Can Manufacturing for $160 million in cash to strengthen its supply network[36] - On March 21, 2025, Ball formed a strategic partnership for its aluminum cups business, deconsolidating the business[32][35] Reconciliation of Net Earnings to Comparable Net Earnings (Q2) | ($ 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 |