Financial Data and Key Metrics Changes - Earnings per share for the quarter were $1.31, down from $3.02 in the prior year quarter, which included a $2.32 per share gain from the sale of Eviosys. Adjusted earnings per share were $1.74, up 9% from $1.59 in the prior year quarter [3][4] - Net sales increased by 8% compared to the prior year quarter, driven by a 3% increase in global beverage can volumes, $189 million from higher raw material cost pass-through, and $58 million from favorable foreign exchange [4] - Record adjusted EBITDA for the year was almost $2.1 billion, compared to $1.9 billion in 2024, with record free cash flow of $1,146 million in 2025, up from $814 million in 2024 [4][5] Business Line Data and Key Metrics Changes - Segment income for the quarter was $420 million, slightly down from $428 million in the prior year, with strong performance in European Beverage offset by lower volumes in Transit Packaging [4] - North American beverage volumes were up slightly more than 1% in the quarter, with North American gains of 2.5% offset by a 3% decline in Brazil. For the full year, North American volumes were flat, while Brazil was down 3% [8][9] - European beverage volumes increased by 10% in the fourth quarter, generating record segment income, more than double what it was a few years ago [9] Market Data and Key Metrics Changes - Sales unit volumes across Asian operations were down 3% in the fourth quarter due to the border conflict between Cambodia and Thailand, with subdued consumer purchasing power in the region [10] - The North American tin plate business benefited from 5% food can volume growth, offsetting softness in steel aerosols during the fourth quarter [11] Company Strategy and Development Direction - The company aims to maintain a net leverage target of 2.5 times, achieved at the end of September 2025, down from 2.7 times at the end of 2024. The focus remains on compounding earnings, investing in the business, and returning excess cash to shareholders [5][6] - The company is committed to responsibly investing to support partners' growth while ensuring that returns on capital employed are appropriate [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving North American volume gains of 2%-3% in 2026, despite inflation and startup costs impacting EBIT [20] - The company remains bullish on European growth, projecting a potential volume growth of 4%-5% for 2026, with strong demand across various products [22][26] - Management noted that the Asian market has growth potential, with a low-cost structure allowing for commercial adjustments to drive volume growth [63] Other Important Information - The company plans to return $625 million to shareholders in 2025, consisting of $505 million in share repurchases and $120 million in dividends, compared to $336 million in 2024 [5] - The company expects full-year free cash flow for 2026 to be approximately $900 million after $550 million of capital spending [7] Q&A Session Summary Question: Outlook for North America's EBIT and European volume growth - Management expects North America's EBIT to be down slightly due to inflation and startup costs, with European volume growth potentially at 4%-5% [20][22] Question: Drivers of volume growth in North America and Europe - Management highlighted strong beer growth in Europe and various product categories in North America, including energy drinks and flavored alcohols, as key drivers [25][26] Question: Free cash flow growth expectations - Management indicated that a free cash flow of around $1 billion seems reasonable and sustainable, with potential for growth aligned with volume increases [28] Question: Demand outlook in January and February - Management noted that January was impacted by weather but February has shown recovery, aligning with expectations [70][71] Question: Impact of startup costs in Brazil, Greece, and Spain - Most startup costs are expected to be second-half weighted, with some hiring and training costs occurring in Q2 [108] Question: State of the Asian market and competitive landscape - Management expressed confidence in the Asian market's growth potential, emphasizing a low-cost structure and the ability to make commercial adjustments [63] Question: Capacity utilization in North America - Management stated that capacity in North America is tight, with no immediate need for new capacity, but some open capacity exists [46][82]

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]

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.