Ball (NYSE:BALL) Q4 2025 Earnings call February 03, 2026 09:00 AM ET Company ParticipantsAnojja Shah - Director of Equity ResearchBrandon Potthoff - Head of Investor RelationsDan Rabbitt - SVP and CFOGeorge Staphos - Managing DirectorMatt Roberts - VP of Equity ResearchMike Roxland - Managing Director of Equity ResearchPhil Ng - Managing DirectorRon Lewis - CEOStefan Diaz - VP of Equity ResearchConference Call ParticipantsAnthony Pettinari - Research AnalystArun Viswanathan - Senior Equity AnalystEdlain Rod ...

Financial Data and Key Metrics Changes - In 2025, the company achieved record earnings per share (EPS) of $3.57, a 13% increase from 2024 [11] - Adjusted free cash flow reached $956 million, a 2.4 times increase year-over-year [11] - The company returned over $1.5 billion to shareholders through buybacks and dividends [6][11] Business Line Data and Key Metrics Changes - North and Central America segment comparable operating earnings increased by 12% in Q4 and 3.3% for the full year [13] - EMEA segment comparable operating earnings increased by 36.7% in Q4 and 19% for the full year [16] - South America segment comparable operating earnings increased by 1% in Q4 and 10.5% for the full year [17] Market Data and Key Metrics Changes - Global shift volumes for aluminum packaging increased by 6% in Q4 and 4.1% for the full year [11] - The North American can industry grew about 2%, while the company outperformed with a 4.8% growth [26] - EMEA's growth was above the long-term range of 3%-5%, with expectations to exceed this range due to the acquisition of Benepack facilities [34][60] Company Strategy and Development Direction - The company aims to double down on profitable growth, focusing on operational excellence and customer partnerships [8][22] - The Ball Business System is central to the company's strategy, emphasizing customer engagement and operational standardization [9][10] - The company plans to maintain EVA as its core financial lens, aligning capital spending with growth and shareholder returns [22] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving 10%+ comparable diluted EPS growth in 2026 [12][19] - The company anticipates some direct tariff costs in 2026, estimated at approximately $35 million, as it works to domesticate some production [15] - The management highlighted the importance of customer relationships and the ongoing shift towards aluminum packaging as key growth drivers [9][70] Other Important Information - The company completed the acquisition of two Benepack beverage can facilities, enhancing its European footprint [11][34] - The net debt to EBITDA ratio ended the year at 2.8 times, with a goal to reduce it to 2.5 times in the coming years [18] Q&A Session Summary Question: Volume growth in North and Central America segment - The company reported a 4.8% volume growth in 2025, outperforming the can industry growth of about 2% due to strong customer partnerships and innovation [26][28] Question: Outlook for 2026 volume growth - For 2026, the company expects volume growth at the low end of its long-term range of 1%-3% until new capacity in Millersburg is operational [28] Question: Details on the Benepack acquisition - The Benepack acquisition is expected to enhance the company's European manufacturing network and support long-term volume growth [34][60] Question: Emphasis on doubling down on profitable growth - The management emphasized the need to focus on operational excellence and customer engagement to achieve the long-term growth algorithm of 10%+ EPS [45][62] Question: Impact of tariffs and aluminum prices - The company is managing tariff impacts through pass-through mechanisms and is monitoring aluminum price trends, which have not significantly affected consumer demand [68][70] Question: Operating leverage in Europe - The company achieved high operating leverage in Europe due to capacity utilization and expects to maintain this in 2026 [60] Question: Changes in customer relationships post-management changes - The management has engaged extensively with major customers and is focused on strengthening long-term strategic partnerships [74] Question: Progress on cost savings from the Ball Business System - The company is on track to deliver $500 million in cost savings ahead of schedule, with significant progress already made [76][78]