Financial Data and Key Metrics Changes - For Q2 2025, comparable diluted earnings per share (EPS) increased to $0.90 from $0.74 in Q2 2024, representing a 22% increase [10] - Comparable net earnings for Q2 2025 were $249 million, driven by higher volume and cost management initiatives, partially offset by higher interest expense and lower interest income [10][12] - The company returned $1.13 billion to shareholders through share repurchases and dividends [9] Business Line Data and Key Metrics Changes - In North and Central America, volume growth was driven by strength in energy drinks and non-alcoholic beverages, although product mix and cost to serve headwinds impacted margins [10][11] - EMEA segment comparable operating earnings increased by 14%, with robust volume performance [11] - South America saw a 38% increase in segment comparable operating earnings, supported by strong volume in Argentina and Chile [12] Market Data and Key Metrics Changes - Global beverage can shipments increased by 4.3% year-over-year in 2025 [12] - North America is expected to see volume growth near the top end of the 1% to 3% long-term range, driven by non-alcoholic categories [14] - EMEA is anticipated to achieve mid-single-digit volume growth in 2025 due to competitive advantages of aluminum packaging [14] Company Strategy and Development Direction - The company aims for 12% to 15% comparable diluted EPS growth for 2025, supported by operational efficiency and strong customer relationships [13][20] - The focus remains on operational excellence, disciplined cost control, and enhancing productivity across the global footprint [18][19] - The company is actively monitoring geopolitical conditions and tariff developments to navigate uncertainties [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive momentum despite external volatility, particularly related to geopolitical events [20] - The company anticipates global volume growth above the long-term 2% to 3% range for 2025, reflecting strong underlying demand [13] - Management highlighted the importance of executing at a high operational level to meet customer expectations reliably [20] Other Important Information - The company expects year-end 2025 net debt to comparable EBITDA to be around 2.75 times [16] - Full-year 2025 interest expense is projected to be in the range of $300 million [18] - The effective tax rate on comparable earnings for 2025 is expected to be slightly above 22% [18] Q&A Session Summary Question: What is driving the outperformance in non-alcohol categories in North America? - Management noted strong growth in energy drinks, with one strategic partner growing nearly 20%, and highlighted the importance of promotional activity and multi-pack purchases [25][26] Question: Can Europe benefit from margin expansion similar to North America? - Management indicated that while margins may not improve significantly, operational leverage is expected to be consistent, with mid-single-digit growth anticipated [32][33] Question: How are customer conversations regarding tariffs and pricing strategies evolving? - Management stated that discussions about 2026 pricing are not yet happening, but noted that customers are focused on securing cans to drive volume [38][39] Question: What is the outlook for Brazil's performance in the second half of the year? - Management expressed confidence in recovery, citing a strong customer relationship that typically reflects market growth [55][56] Question: How is the company positioned regarding aluminum pricing and customer demand? - Management indicated that customers are currently hedged, and the company expects to see changes in buying behavior as pricing dynamics evolve [68][69] Question: What impact has immigration enforcement had on demand? - Management suggested that there may be a benefit from increased multipack purchasing in grocery channels, countering potential demand slowdowns [81][82] Question: How balanced is supply and demand in Europe? - Management acknowledged the need for incremental capacity to meet sustained mid-single-digit growth in Europe [84][85] Question: What are the expectations for manufacturing efficiency going forward? - Management reported improvements in plant performance and emphasized a long-term focus on safety and quality as key to operational efficiency [132][134]

Financial Data and Key Metrics Changes - For Q2 2025, comparable diluted earnings per share (EPS) increased to $0.90 from $0.74 in Q2 2024, representing a 22% increase [8] - Comparable net earnings for Q2 2025 were $249 million, driven by higher volume and cost management initiatives, partially offset by higher interest expense and lower interest income [8][10] - The company returned $1.13 billion to shareholders through share repurchases and dividends [7] Business Line Data and Key Metrics Changes - In North and Central America, volume growth was driven by energy drinks and non-alcoholic beverages, although product mix and cost to serve headwinds impacted margins [8][9] - EMEA segment volume remained robust with a 14% increase in comparable operating earnings, driven by sustained volume growth and operational efficiency [9] - South America saw a 38% increase in segment comparable operating earnings, supported by strong performance in Argentina and Chile, despite Brazil underperforming [10] Market Data and Key Metrics Changes - Global beverage can shipments increased by 4.3% year over year in 2025 [10] - The company anticipates North American volume growth near the top end of the 1% to 3% long-term range, driven by strong demand in non-alcoholic categories [12] - EMEA is expected to see mid-single-digit volume growth in 2025, while South America is projected to exceed the 4% to 6% long-term range due to recovery in Argentina and Chile [12] Company Strategy and Development Direction - The company aims for 12% to 15% comparable diluted EPS growth for 2025, focusing on operational excellence, disciplined cost control, and enhancing productivity [11][15] - The strategic focus includes leveraging the resilience of the global portfolio and managing ongoing uncertainties related to tariffs and geopolitical conditions [15][16] - The company is committed to future-proofing its business by securing long-term contracts and optimizing its operational footprint [16][127] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating external volatility and achieving financial objectives despite geopolitical uncertainties [17] - The company anticipates that the defensive nature of its portfolio will help manage potential economic uncertainties [12][17] - Management noted that while inflationary pressures could impact volume, the current consumer behavior favors multipack purchases, which may sustain demand [88][80] Other Important Information - The company expects to repurchase at least $1.3 billion of shares in 2025, having already purchased $1 billion year to date [14] - Full-year 2025 effective tax rate on comparable earnings is expected to be slightly above 22% due to lower year-over-year tax credits [15] Q&A Session Summary Question: What is driving the outperformance in non-alcohol categories in North America? - Management noted strong growth in energy drinks, with one strategic partner growing nearly 20%, and highlighted successful promotional activities driving multipack purchases [22][24] Question: Why were margins down 140 basis points in North America? - Management attributed margin decline to operational inefficiencies due to unexpected growth, product mix changes, and tariff impacts [26][27] Question: Can Europe benefit from margin expansion like North America? - Management indicated that while margins may not improve significantly, operational leverage will remain consistent, with expectations of mid-single-digit growth [31] Question: How are customer conversations regarding tariffs and pricing strategies evolving? - Management stated that discussions about 2026 pricing are premature, but noted that customers are focused on managing current tariff impacts [38][39] Question: What is the outlook for Brazil's market performance? - Management expressed optimism for recovery in Brazil, citing strong performance from a key customer and overall market growth expectations [52][54] Question: How is the company preparing for potential demand slowdowns? - Management indicated that current trends in multipack purchasing are favorable, and they do not anticipate a slowdown in demand [80][81] Question: What is the impact of scrap metal pricing on the business? - Management stated that scrap metal pricing has been negligible, with more concern about demand side impacts from tariffs [140]