Financial Data and Key Metrics Changes - In 2025, the company achieved record comparable diluted EPS of $3.57, a 13% increase from 2024 [12] - Adjusted free cash flow reached $956 million, up 2.4 times year-over-year [19] - The company returned over $1.5 billion to shareholders through buybacks and dividends [7][12] Business Line Data and Key Metrics Changes - North and Central America segment comparable operating earnings increased 12% in Q4 and 3.3% for the full year [15] - EMEA segment comparable operating earnings rose 36.7% in Q4 and 19% for the full year [17] - South America segment comparable operating earnings increased 1% in Q4 and 10.5% for the full year [18] Market Data and Key Metrics Changes - Global shift volumes increased by 6% in Q4 and 4.1% for the full year [12] - The North American can industry grew about 2%, while the company outpaced this with a 4.8% growth [27] - EMEA's growth was above the long-term range, with expectations for continued strong performance due to the acquisition of Benepack facilities [34][61] Company Strategy and Development Direction - The company aims to double down on profitable growth, focusing on operational excellence and customer partnerships [9][47] - The Ball Business System is central to the operational model, emphasizing customer engagement and efficiency [10][62] - The company plans to maintain EVA as a core financial lens, aligning capital spending with growth and shareholder returns [23] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving 10%+ comparable diluted EPS growth in 2026 [21] - The company is navigating tariff complexities and geopolitical dynamics while maintaining a focus on long-term growth [16][70] - Management highlighted the importance of the aluminum can market's growth and the company's strong position within it [6][70] Other Important Information - The company completed the acquisition of two Benepack beverage can facilities, enhancing its European footprint [13] - The expected startup costs for new capacity in 2026 are approximately $35 million [16] - The company aims to reduce net debt to EBITDA to 2.5 times in the coming years while continuing shareholder returns [19][21] Q&A Session Summary Question: Volume growth in North and Central America segment - Management noted a 4.8% growth in 2025, outpacing the can industry growth of about 2%, attributing success to strong customer partnerships and innovation [27][28] Question: Outlook for 2026 volume growth - Management indicated that North America is capacity constrained until the Millersburg asset is operational, expecting growth at the low end of the 1%-3% range [29] Question: Details on the Benepack acquisition - The acquisition is expected to optimize the European network and support long-term volume projections, with profitability expected to improve over time [34][41] Question: Emphasis on doubling down on profitable growth - Management clarified that this focus is to ensure operational excellence and leverage growth opportunities, aiming for 10%+ EPS growth [46][47] Question: Impact of tariffs and aluminum prices - Management confirmed that tariffs are being monitored but have no significant direct impact beyond certain costs, and the company can pass through inflationary pressures [69][70] Question: Trends in customer relationships post-management changes - Management highlighted strong long-term partnerships with strategic customers and a focus on supporting their growth [76] Question: Cost savings from the Ball Business System - Management confirmed that they are on track to deliver $500 million in cost savings ahead of schedule, with significant progress already made [78][79]

Financial Data and Key Metrics Changes - In 2025, the company achieved record comparable diluted EPS of $3.57, a 13% increase from 2024 [12][23] - Adjusted free cash flow reached $956 million, up 2.4 times year-over-year [19] - The company returned over $1.5 billion to shareholders through buybacks and dividends [7][12] Business Line Data and Key Metrics Changes - North and Central America segment comparable operating earnings increased 12% in Q4 and 3.3% for the full year [15] - EMEA segment comparable operating earnings rose 36.7% in Q4 and 19% for the full year, with high single-digit volume growth [17] - South America segment comparable operating earnings increased 1% in Q4 and 10.5% for the full year, with high single-digit volume growth [18] Market Data and Key Metrics Changes - Global shift volumes increased by 6% in Q4 and 4.1% for the full year [12] - The aluminum can market is growing, with the company outpacing the market in shipped volumes [6][7] Company Strategy and Development Direction - The company aims to double down on profitable growth, focusing on operational excellence and customer partnerships [9][47] - The Ball Business System is central to the company's strategy, emphasizing customer engagement and operational efficiency [10][11] - The company plans to maintain EVA as its core financial lens, ensuring disciplined capital allocation [23] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's ability to deliver 10%+ comparable diluted EPS growth in 2026 [21][23] - The company is monitoring geopolitical dynamics and tariff developments to protect long-term growth [16] - Management highlighted the importance of the aluminum can's value proposition in various economic environments [70] Other Important Information - The company completed the acquisition of two Benepack beverage can facilities, enhancing its European footprint [13] - The company expects to incur approximately $35 million in direct tariff costs in 2026 as it works to domesticate some production [16] Q&A Session Questions and Answers Question: Volume growth in North and Central America segment - The company grew 4.8% in 2025, outpacing the can industry growth of about 2% due to strong customer partnerships and innovation [27][28] Question: Outlook for 2026 volume growth - The company expects volume growth at the low end of its long-term range of 1%-3% for North America until the Millersburg asset is operational [29] Question: Details on the Benepack acquisition - The acquisition is expected to optimize the European manufacturing network and support long-term volume projections [33][34] Question: Impact of tariffs and aluminum prices - The company can pass through inflationary cost pressures due to its contracts, and the U.S. consumer continues to buy aluminum cans despite rising costs [69][70] Question: Operating leverage in North America - The company achieved high single-digit volume growth in Q4, but tariff costs impacted operating leverage [50] Question: Trends in customer relationships post-management changes - The company is well contracted into 2027 with strategic customers, indicating strong long-term partnerships [76] Question: Cost savings from the Ball Business System - The company is on track to deliver $500 million in cost savings, with more than two-thirds already realized [78][79]

Summary of Ball Corporation FY Conference Call Company Overview - **Company**: Ball Corporation (NYSE: BALL) - **Key Executives**: Ron Lewis (CEO), Daniel Rabbitt (CFO) [1][2] Core Industry Insights - **Industry**: Beverage Can Manufacturing - **Market Performance**: The North American beverage can industry is experiencing significant growth, with Ball Corporation reporting a volume growth of over 4% year-on-year [16][18]. Key Points and Arguments 1. **Leadership Transition**: The recent appointments of Ron Lewis as CEO and Daniel Rabbitt as CFO were unexpected but are seen as a return to the company's core values and culture [12][25]. 2. **Company Culture**: Emphasis on a strong corporate culture that values hard work, integrity, and collaboration. The company aims to return to its roots of being an excellent allocator of capital and maintaining a high-touch collaborative environment [15][21][25]. 3. **Financial Performance**: The company is on track for record earnings this year, with a long-term algorithm targeting EPS growth of 10%-15% per year and free cash flow of approximately $1.3 billion by 2030 [34][63]. 4. **Operational Excellence**: Ball Corporation is committed to achieving $500 million in productivity savings by the end of 2026, one year ahead of schedule. This is part of their operational excellence agenda [35][36]. 5. **Market Growth Projections**: - North America: Expected growth of 1%-3% - Europe: Expected growth of 3%-5% - South America: Expected growth of 4%-6% [46]. 6. **Sustainability Focus**: There is a stronger emphasis on sustainability in Europe compared to North America, with a focus on achieving a net-zero carbon footprint [50][51]. Additional Important Insights 1. **Capacity Expansion**: Ball Corporation is adding capacity in North America with a new plant expected to be operational by mid-next year, which will help meet growing demand [44]. 2. **Customer Relationships**: The company has strong contractual commitments with its customer base, which is crucial for sustaining growth [43]. 3. **Challenges and Headwinds**: Despite the positive outlook, the company acknowledges headwinds in the market and is focused on maintaining resilience and adaptability [36][52]. 4. **Capital Allocation Strategy**: The company is disciplined in its capital allocation, ensuring that growth capital is backed by long-term contracts and solid volume commitments [58][59]. Conclusion Ball Corporation is navigating a transformative period with new leadership, a strong focus on culture, and a commitment to operational excellence. The company is well-positioned for future growth in the beverage can industry, with strategic plans in place to enhance productivity and sustainability while maintaining strong customer relationships.