Ball (US:BALL)2025-11-04 13:05Financial 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].