Financial Data and Key Metrics Changes - Earnings for the quarter were $1.85 per share compared to a loss of $1.47 per share in the prior year quarter, with adjusted earnings per share at $2.24 compared to $1.99 in the prior year quarter [3] - Net sales in the quarter increased by 4.2% compared to the prior year, reflecting a 12% increase in shipments across European beverage [4] - Segment income was $490 million in the quarter compared to $472 million in the prior year, indicating year-on-year improvements in segment income, adjusted EBITDA, and free cash flow [4][5] - Free cash flow improved to $887 million from $668 million in the prior year [4] Business Line Data and Key Metrics Changes - European beverage posted a record quarter with income 27% above the prior year on the back of 12% volume growth [9] - North American beverage volumes were down 3% in the quarter, with a 5% decline in Brazil and Mexico contributing to this decrease [9][10] - Transit packaging income remained level to the prior year, with increased shipments offsetting the impact of lower equipment activity [10] Market Data and Key Metrics Changes - North American volumes were mixed, down 3% after a slow start in July and August, but rebounded in September [9] - Latin American volumes were down 5%, primarily due to a 15% volume decline across Brazil and Mexico [9] - European beverage growth was driven by market share gains and substitution, with strong demand noted in the Gulf states [10] Company Strategy and Development Direction - The company achieved its long-term net leverage target of 2.5x and remains committed to a healthy balance sheet while returning excess cash to shareholders [5] - The company is raising its guidance for full-year adjusted EPS to $7.70-$7.80, projecting fourth quarter adjusted EPS to be in the range of $1.65-$1.75 [5][6] - The company is focused on continuous operational improvements and maintaining a strong balance sheet to support shareholder returns [11] Management's Comments on Operating Environment and Future Outlook - Management noted limited direct impact from tariffs but remains attentive to indirect effects on global consumer and industrial demand [5] - The company expects the fourth quarter in Brazil to return to growth, supported by government initiatives to lower interest rates [9] - Management expressed confidence in the European market's growth potential, emphasizing that historical growth rates of 4%-5% are expected to continue [18] Other Important Information - The company repurchased $105 million of common stock in the quarter and $314 million year-to-date, returning over $400 million to shareholders this year [4] - The company is monitoring the impact of the Novelis fire on the industry but does not foresee a significant negative impact on its operations [110] Q&A Session Summary Question: Growth in Europe and potential concerns - Management indicated that the 12% growth in Europe is not expected to be sustainable quarter after quarter, with historical growth rates around 4%-5% being more realistic [17][18] Question: Americas EBIT outlook and impact from Mexico and Brazil - Management confirmed that the $1 billion EBIT target is still aspirational but achievable this year, with Brazil and Mexico contributing negatively to the Americas beverage segment [26][27] Question: North American beverage volumes and market dynamics - Management noted that the underperformance in North America was primarily due to pruning a complicated customer account, with overall market growth expected to be positive [32][98] Question: Capital allocation and free cash flow for 2026 - Management stated that they expect to maintain a strong cash flow and will responsibly return cash to shareholders, with potential for share buybacks depending on market conditions [90][92] Question: Impact of Novelis fire on the industry - Management indicated that while there is no direct impact on Crown, they are monitoring the situation as it may affect some customers [110]

Financial Data and Key Metrics Changes - Earnings for the quarter were $1.85 per share compared to a loss of $1.47 per share in the prior year quarter, with adjusted earnings per share at $2.24 compared to $1.99 in the prior year quarter [4] - Net sales in the quarter increased by 4.2% compared to the prior year, driven by a 12% increase in shipments across European beverage [4] - Free cash flow improved to $887 million from $668 million in the prior year, reflecting higher income and lower capital spending [5] - Segment income was $490 million in the quarter compared to $472 million in the prior year, indicating year-on-year improvements in segment income, adjusted EBITDA, and free cash flow [5] Business Line Data and Key Metrics Changes - European beverage posted a record quarter with income 27% above the prior year, supported by 12% volume growth [13] - Americas beverage volumes were down 5% in the quarter, primarily due to a 15% volume decline across Brazil and Mexico [12] - North American volumes were mixed, down 3% overall, but showed a rebound of 3% in September [12] - Transit packaging income remained level to the prior year, with increased shipments offsetting the impact of lower equipment activity [13] Market Data and Key Metrics Changes - Delivered aluminum reached $2.1 per pound, up $0.74 per pound or 54% in the last ten months, impacting North American beverage margins [9][10] - European beverage growth was driven by market growth and substitution, with margins remaining strong despite lower Southeast Asian volumes [13][14] Company Strategy and Development Direction - The company is committed to maintaining a healthy balance sheet while returning excess cash to shareholders, having achieved its long-term net leverage target of 2.5 times [5][6] - The company expects to continue benefiting from strong demand in European beverage and improving cost structures across its operations [8][14] - The company is cautious about future growth rates, indicating that while 12% growth was achieved, historical growth rates in the can business are typically lower [22][47] Management's Comments on Operating Environment and Future Outlook - Management raised guidance for the full year adjusted EPS to $7.7 to $7.8, projecting fourth quarter adjusted EPS to be in the range of $1.65 to $1.75 [6] - Management noted limited direct impact from tariffs but remains attentive to indirect effects on global consumer and industrial demand [5][6] - The company expects fourth quarter in Brazil to return to growth, supported by government initiatives to lower interest rates [12] Other Important Information - The company repurchased $105 million of common stock in the quarter and $314 million year to date, returning more than $400 million to shareholders this year [5] - The company is monitoring the impact of the Novelis fire, which has a more significant effect on other customers but not directly on its operations [126] Q&A Session Summary Question: Growth in Europe and potential concerns about pre-buying - Management indicated that the growth in Europe is driven by underlying market growth and substitution, with historical growth rates expected to be around 4% to 5% [22][47] Question: Outlook for Americas EBIT and impact from Mexico and Brazil - Management confirmed that the EBIT target of $1 billion is still aspirational but achievable this year, with significant impacts from Brazil and Mexico noted [30] Question: North American market performance and promotional spending - Management acknowledged underperformance due to customer pruning but noted that the overall market was estimated to be up 2% [39][40] Question: Capacity and growth expectations in Europe - Management expressed confidence in their capacity to meet demand, with ongoing investments in new lines in Germany and Greece [85][86] Question: Capital allocation and share repurchase strategy - Management emphasized flexibility in capital allocation, with potential for share repurchases depending on market conditions [106][107]