Crown Holdings Q2 Earnings & Revenues Beat Estimates, '25 View Raised

Core Insights - Crown Holdings, Inc. (CCK) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.15, exceeding the Zacks Consensus Estimate of $1.86 and the company's guidance of $1.80-$1.90, reflecting a 19% year-over-year improvement [1][7] - The company generated net sales of $3.15 billion, a 3.6% increase from the previous year, driven by strong performance in the Americas Beverage, European Beverage, and North American Tinplate segments [2][7] - Crown Holdings raised its full-year adjusted EPS outlook to $7.10-$7.50, indicating a projected 14% year-over-year growth at the midpoint [7][8] Financial Performance - The cost of products sold increased by 2.4% year over year to $2.44 billion, while gross profit rose by 7.9% to $713 million, leading to an improved gross margin of 22.6% compared to 21.7% in the prior year [3] - Selling and administrative expenses rose by 7.3% year over year to $161 million, with segmental operating income increasing to $476 million from $437 million in the previous year [3] Segment Analysis - The Americas Beverage segment reported net sales of $1.40 billion, up 6% year over year, with operating profit increasing by 10.3% to $268 million [4] - The European Beverage segment's sales rose by 13.4% to $635 million, with operating income increasing to $97 million from $88 million [4] - The Asia-Pacific segment experienced a revenue decline of 11.7% to $256 million, with operating profit decreasing to $50 million from $55 million [5] - The Transit Packaging segment's revenues totaled $526 million, down from $555 million, with operating profit falling by 1.4% to $72 million [5] Cash Flow and Balance Sheet - At the end of Q2 2025, Crown Holdings had cash and cash equivalents of $0.94 billion, down from $1.41 billion a year earlier, while generating $463 million in cash from operating activities in the first half of 2025, compared to $343 million in the same period last year [6] - Long-term debt decreased to $5.62 billion as of June 30, 2025, from $5.95 billion a year prior [6] Stock Performance - Crown Holdings' shares have increased by 36.8% over the past year, contrasting with a 12.4% decline in the industry [9]