Ball (US:BALL)2025-11-04 18:07Financial 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].