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]

Financial Data and Key Metrics Changes - Global shipments grew by 5% and adjusted EBITDA increased by 18% compared to the prior year, exceeding guidance [4][12] - The company ended the quarter with a liquidity position of $680 million and a net leverage ratio of 5.3 times, a decrease of half a turn from Q2 2024 [10][11] - Full year adjusted EBITDA is now expected to be in the range of $700 million to $725 million based on current FX rates [12][13] Business Line Data and Key Metrics Changes - In Europe, Q2 revenue increased by 9% to $615 million, with a 1% growth in shipments driven by soft drinks, while beer faced weakness due to adverse weather [5][6] - In The Americas, revenue rose by 21% to $840 million, with adjusted EBITDA increasing by 34% to $133 million, driven by favorable volume growth and lower operating costs [7][8] - Beverage can shipments in Brazil increased by 12%, outperforming the industry which grew modestly [8][9] Market Data and Key Metrics Changes - The beverage can market in Europe is expected to grow around 3% for the full year 2025, with strong growth in soft drinks offsetting beer weaknesses [6][25] - North America is expected to see mid single-digit growth in shipments for the full year, with strong demand for nonalcoholic beverages [8][19] - The overall market for cans in Europe remains healthy, with long-term growth trends expected [25][38] Company Strategy and Development Direction - The company is focused on maintaining strong performance in the beverage can segment, which continues to gain market share [12][38] - There are plans for capacity additions in the future, particularly in Europe, to meet growing demand [41][82] - The company is committed to improving operational efficiencies and cost savings in manufacturing [73][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic uncertainties, with expectations for continued growth in the beverage can market [4][12] - The company anticipates a reduction in growth rates in the second half of the year compared to the first half, but still expects healthy performance [18][19] - Management noted that the macroeconomic environment remains uncertain, which is reflected in cautious guidance for the second half [59][60] Other Important Information - The company announced a quarterly ordinary dividend of $0.10 per share [11] - There are no near-term bond maturities, providing a strong liquidity position [10] Q&A Session Summary Question: Insights on North American volumes and expectations for the region - Management highlighted strong performance in soft drinks and energy drinks, with expectations for continued growth but not as strong as the first half [16][18] Question: Details on capacity constraints in Europe - Management acknowledged capacity constraints in certain can sizes and noted that they could not fully meet the growth in soft drinks due to strong beer positions [21][23] Question: Performance drivers in The Americas - Management indicated that strong promotional activity contributed to better-than-expected performance, but they do not foresee significant stockpiling [29][32] Question: European cost impacts and aluminum pricing - Management discussed timing effects related to aluminum pricing but did not expect a significant recovery in Q3 [47][50] Question: Guidance for Q4 and cost considerations - Management noted that Q4 guidance reflects a cautious outlook due to macroeconomic uncertainties and anticipated slower growth in Brazil and North America [51][56] Question: Energy market dynamics and consumer behavior - Management reported no significant cannibalization between energy drinks and CSDs, with both categories showing growth [62][64] Question: Contract negotiations and visibility for 2026 and 2027 - Management confirmed good visibility for 2026 volumes and noted that 2027 contracts are reasonably well established [75][76] Question: Manufacturing efficiency contributions - Management acknowledged improved operational costs and efficiencies in both North America and Europe [72][73] Question: Future capacity needs and growth management - Management indicated that future capacity additions would likely be brownfield projects rather than new facilities, focusing on existing sites [81][86]

Financial Data and Key Metrics Changes - Earnings for the quarter were $1.81 per share compared to $1.45 per share in the prior year quarter, with adjusted earnings per share at $2.15 compared to $1.81 in the prior year quarter [4] - Net sales increased by 3.6% compared to the prior year quarter, driven by higher shipments in North American Beverage, European Beverage, and North American fruit can volumes [4] - Free cash flow improved to $387 million from $178 million in the prior year, reflecting higher income and lower capital spending [5] Business Line Data and Key Metrics Changes - Global Beverage segment income advanced 9% in the quarter, following a 21% improvement in the prior year's second quarter [8] - Americas Beverage reported a 10% increase in segment income, with shipment gains in both North America and Brazil [9] - North American food demand increased by 9% in the second quarter, primarily due to strong vegetable volumes, leading to a 150% improvement in income in the other segment [11][12] Market Data and Key Metrics Changes - In Asia Pacific, income declined as Southeast Asian market volumes were down high single digits compared to the prior year, impacted by tariffs affecting consumer confidence [10] - European Beverage unit volumes advanced 6%, contributing to another quarter of record income, with growth noted across Northern and Southern Europe [9] Company Strategy and Development Direction - The company is raising its guidance for the full year adjusted EPS to a range of $7.1 to $7.5 per share, reflecting strong first-half performance and potential impacts from tariffs [5] - The company is focused on returning cash to shareholders while also considering growth opportunities, with a commitment to maintaining a long-term leverage target of 2.5 times [52][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for beverage cans in Europe, citing a shift towards more sustainable packaging [25] - Concerns were raised about potential impacts of tariffs on consumer and industrial activity, particularly in the Americas and Asia [5][10] - Management noted that despite economic uncertainties, the beverage can market continues to perform well, with no significant destocking observed [40][58] Other Important Information - The company expects net interest expense of approximately $360 million and a full-year tax rate of 25% [6] - The restructuring charge for the quarter was around $40 million, primarily related to asset write-downs in a Chinese plant and severance costs in Signode [34] Q&A Session Summary Question: Can you talk about expectations for the segments for 3Q? - Management indicated that while the third quarter last year was exceptionally strong, they expect to perform slightly better than last year despite challenging comps [16] Question: What are the prospects for Signode in 3Q and 4Q? - Management is hopeful to maintain the current level of EBIT in Signode into 3Q, with the second quarter being the largest for the segment [35] Question: Are you seeing any impact from tariffs in Europe? - Management stated that they do not see significant direct tariff impacts in Europe, but there are concerns about the overall economic environment [40] Question: How are beverage customers behaving in North America amidst tariff concerns? - Customers are continuing to promote their products despite rising costs, and the beverage can market remains strong [46] Question: What is the outlook for inventory levels along the supply chain? - Management noted that inventory levels are lean, and they plan to build inventory in Q4 in anticipation of strong demand in 2026 [80] Question: How will capital deployment be prioritized in the coming years? - The primary goal is to return cash to shareholders while also considering growth opportunities and maintaining a healthy balance sheet [52][72]

Financial Data and Key Metrics Changes - Earnings for the quarter were $1.81 per share compared to $1.45 per share in the prior year quarter, with adjusted earnings per share at $2.15 compared to $1.81 in the prior year quarter [3] - Net sales increased by 3.6% compared to the prior year quarter, primarily due to higher shipments in North American Beverage and European Beverage [3] - Free cash flow improved to $387 million from $178 million in the prior year, reflecting higher income and lower capital spending [4] Business Line Data and Key Metrics Changes - Global Beverage segment income advanced 9% in the quarter, following a 21% improvement in the prior year's second quarter [7] - Americas Beverage reported a 10% increase in segment income, with North American shipments advancing 1% and Brazil showing 2% growth [8] - North American food demand increased by 9% in the second quarter, driven by strong vegetable volumes, leading to a 150% improvement in income in the other segment [10] Market Data and Key Metrics Changes - In Asia Pacific, income declined as Southeast Asian market volumes were down high single digits compared to the prior year, impacted by tariffs affecting consumer confidence [9] - European Beverage unit volumes advanced 6%, contributing to record income across the region [8] Company Strategy and Development Direction - The company is raising its guidance for the full year adjusted EPS to a range of $7.1 to $7.5 per share, reflecting strong performance and potential impacts from tariffs [4] - The company is focused on returning cash to shareholders while maintaining a healthy balance sheet, with net leverage expected to be approximately 2.5 times by the end of 2025 [5] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential impacts of tariffs on consumer and industrial activity, but noted strong performance in the first half of the year [4] - The outlook for Europe remains positive, with expectations for continued growth driven by sustainable packaging needs [25] Other Important Information - The company expects to maintain a strong balance sheet and continue returning cash to shareholders, with a focus on capital projects that support growth [52] - The restructuring charge of approximately $40 million was primarily due to asset write-downs in a Chinese plant and severance costs in Signode [35] Q&A Session Summary Question: Expectations for segments in Q3 - Management indicated that while Q3 comparisons are challenging, they expect improvement in European beverage and North American food, with Americas beverage performance likely to be flat compared to last year [14][15] Question: Strength in non-reportable segments - Management noted that strength in non-reportable segments is due to investments in the North American food business and easier comparisons from last year [18] Question: Customer conversations regarding market tightness in Europe - Management remains bullish on the need for more cans in Europe, driven by sustainable packaging trends, despite potential soft spots [24] Question: Restructuring charge details - The restructuring charge was primarily due to asset write-downs and severance costs, with expectations for benefits to materialize in the future [35] Question: Impact of tariffs on beverage can volumes - Management stated that they do not see significant destocking or direct tariff impacts in Europe, but are cautious about the overall economic environment [41] Question: Capital deployment priorities - The primary goal is to increase returns to shareholders, with a focus on supporting customer needs and growth opportunities [51] Question: Demand softness in the U.S. due to immigration enforcement - Management noted that despite political and economic noise, can demand remains strong, with beverage units in cans up 4.5% [58] Question: Sustainability of margins in North America - Management indicated that while margins are currently strong, continuous improvement efforts are ongoing to maintain and enhance profitability [109]

Core Insights - Crown Holdings, Inc. reported first-quarter 2025 adjusted earnings per share (EPS) of $1.67, exceeding the Zacks Consensus Estimate of $1.22 by 37% and marking a 64% year-over-year improvement [1][2] - The company's net sales for the quarter reached $2.89 billion, surpassing the Zacks Consensus Estimate of $2.87 billion and reflecting a 3.7% increase from the previous year's $2.78 billion [2] - Crown Holdings raised its full-year adjusted EPS outlook to $6.70-$7.10, up from the previous estimate of $6.60-$7.00, indicating an expected year-over-year growth of 8% [9] Financial Performance - The cost of products sold increased by 0.7% year over year to $2.26 billion, while gross profit rose 16% to $620 million, resulting in a gross margin of 21.6%, which is a 230-basis point expansion year over year [3] - Selling and administrative expenses decreased by 1.3% year over year to $152 million, contributing to a total segment operating income of $398 million, up from $308 million in the prior-year quarter [4] Segment Performance - In the Americas Beverage segment, net sales totaled $1.32 billion, an 8% increase year over year, with operating profit rising 25% to $236 million [5] - The European Beverage segment saw sales increase by 6% year over year to $512 million, with operating income jumping 31% to $67 million [5] - The Asia-Pacific segment's sales remained flat at $279 million, but operating profit increased by 12% to $47 million [6] Cash Flow and Balance Sheet - At the end of Q1 2025, Crown Holdings had cash and cash equivalents of $0.78 billion, down from $1.12 billion at the end of 2024, and generated $14 million in cash from operating activities [7] - The company's long-term debt decreased to $4.74 billion from $6.62 billion at the end of 2024 [7] Stock Performance - Crown Holdings' shares have increased by 16.7% over the past year, contrasting with a 6.3% decline in the industry [10]

Financial Data and Key Metrics Changes - Earnings per share for the quarter were $1.65, up from $0.56 in the prior year quarter, while adjusted earnings per share increased to $1.67 from $1.02 [3] - Net sales rose by 3.7% year-over-year, driven by a 1% increase in global beverage can volumes and a 16% increase in North American food can volumes [3][4] - Segment income reached $398 million, compared to $308 million in the prior year quarter, reflecting a 29% increase [4][6] Business Line Data and Key Metrics Changes - Beverage can segment income improved by 24% year-over-year, with significant contributions from higher shipments in the Americas and Europe [6][7] - North American food can volumes increased by 16%, driven by demand from vegetable and pet food customers [11] - Transit Packaging performance declined due to subdued industrial demand, particularly affecting the higher margin equipment and tools business [10] Market Data and Key Metrics Changes - European beverage volumes improved by 5%, with growth noted in Eastern and Southern Europe and the Gulf States, leading to a more than 30% increase in segment income [9] - In Asia Pacific, segment income advanced by 12%, benefiting from revenue quality improvements and ongoing cost reduction programs [9] - North American beverage can volumes were up 2%, while Brazil saw an 11% increase, attributed to strong customer performance during the carnival season [96] Company Strategy and Development Direction - The company is raising its full-year adjusted EPS guidance to a range of $6.70 to $7.10, reflecting confidence in continued strong performance [4] - There is an expectation of a tight supply situation in both North America and Europe during the summer selling season, with ongoing substrate shifts anticipated [30][75] - The company aims to maintain a long-term leverage target of approximately 2.5 times, balancing capital investments and shareholder returns [68] Management's Comments on Operating Environment and Future Outlook - Management noted that while the operating environment remains uncertain, the company is well-positioned in its markets and expects strong demand to continue [12] - The potential impact of tariffs is being monitored closely, with estimates of income exposure below $30 million for the year [10][84] - Management expressed optimism about the summer selling season, with expectations of continued strong performance in beverage can businesses [30][48] Other Important Information - The company returned $233 million to shareholders in Q1 2025, including $203 million in share repurchases [4] - Adjusted free cash flow for the full year is estimated to be approximately $800 million after $450 million of capital spending [5] - The company achieved trailing twelve months EBITDA above $2 billion for the first time, with EBITDA margins increasing by 260 basis points in the quarter [12] Q&A Session Summary Question: Are customers changing their behavior going into the seasonal peak period? - Management indicated that inventory levels are short, and there has not been significant pre-buying behavior observed in the beverage can segment [17][18] Question: Are there signs of increased promotional activity from brand owners or retailers? - Management noted that there is no significant promotional activity, but some large customers are optimistic about their opportunities post-COVID [22] Question: What are the expectations for North America performance in 2025 and 2026? - Management expects to be materially in line with the market in 2025 and potentially ahead in 2026 [31] Question: What is the outlook for the Transit business given potential tariff impacts? - Management acknowledged a multitude of quoting opportunities but noted that actual orders are slower due to cautious capital budgets among customers [35] Question: How is the company addressing supply chain issues related to tariffs? - Management estimated direct tariff impacts to be below $10 million, primarily affecting equipment made for customers in Europe [37] Question: What drove the strong performance in the Americas Beverage segment? - Management attributed the strong performance to high utilization rates and effective execution in manufacturing [45] Question: How does the company view the balance between supply and demand in the can industry? - Management emphasized the importance of being mindful of supply-demand dynamics before embarking on rapid capacity expansion [91]

Financial Data and Key Metrics Changes - Earnings per share for Q1 2025 were $1.65, up from $0.56 in the prior year quarter, while adjusted earnings per share increased to $1.67 from $1.02 [3] - Net sales rose by 3.7% year-over-year, driven by a 1% increase in global beverage can volumes and a 16% increase in North American food can volumes [3][4] - Segment income for the quarter was $398 million, compared to $308 million in the prior year [3][4] Business Line Data and Key Metrics Changes - Beverage can segment income improved by 24% year-over-year, with significant contributions from the Americas and Europe [6][7] - North American food can volumes increased by 16%, driven by demand from vegetable and pet food customers [11] - Transit Packaging performance declined due to subdued industrial demand, impacting higher-margin equipment and tools business [10] Market Data and Key Metrics Changes - European beverage volumes improved by 5%, with growth noted in Eastern and Southern Europe [9] - Asia Pacific segment income advanced by 12%, benefiting from revenue quality improvements and cost reduction programs [9] - North American beverage can volumes were up 2%, while Brazil saw an 11% increase, attributed to strong customer promotions during the carnival season [96] Company Strategy and Development Direction - The company is raising its full-year adjusted EPS guidance to a range of $6.70 to $7.10, reflecting confidence in ongoing demand and operational performance [4] - There is an expectation of a tight supply situation in both North America and Europe during the summer selling season, indicating a focus on maintaining operational efficiency [29][30] - The company is monitoring potential impacts from tariffs and global trade tensions, particularly in the Asia Pacific region [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to 2025, with expectations for continued demand and operational improvements [6][12] - Concerns were raised about the potential indirect impacts of tariffs on consumer demand, particularly in markets like Mexico and Southeast Asia [78][80] - The company remains cautious about the economic environment but is well-positioned to capitalize on growth opportunities in the can business [12][30] Other Important Information - The company returned $233 million to shareholders in Q1 2025, including $203 million in share repurchases [4] - Adjusted free cash flow for 2025 is estimated to be approximately $800 million after $450 million of capital spending [5] - The company achieved trailing twelve months EBITDA above $2 billion for the first time, with EBITDA margins increasing by 260 basis points in the quarter [12] Q&A Session Summary Question: Are customers changing their behavior going into the seasonal peak period? - Management noted that inventory levels are short, and there hasn't been significant pre-buying observed, particularly in the beverage can segment [17][20] Question: Are there signs of increased promotional activity from brand owners or retailers? - Management indicated that there is no significant promotional activity, but some large customers are optimistic about their opportunities post-COVID [22] Question: What are the expectations for North America performance in 2025 and 2026? - Management expects to be materially in line with the market in 2025 and potentially ahead in 2026 [31] Question: What is the outlook for the Transit business given potential tariff impacts? - Management highlighted that quoting opportunities are high, but actual orders are slower due to cautious capital budgets among customers [35][37] Question: How is the company addressing supply chain issues related to tariffs? - Management estimated direct tariff impacts to be below $10 million, primarily affecting equipment made for customers in Europe [37] Question: What drove the strong performance in Brazil? - The growth in Brazil was largely attributed to alignment with major customers who promoted products heavily during the carnival season [96] Question: What is the company's approach to capacity additions in response to substrate shifts? - Management acknowledged the need for potential capacity additions in Europe due to ongoing substrate shifts and is currently evaluating markets [75]

Financial Performance - Ardagh Metal Packaging (AMP) reported a 15% increase in Q3 Adjusted EBITDA, reaching $196 million, driven by double-digit growth in both Europe and the Americas[33] - The company improved its full-year Adjusted EBITDA guidance to $650-660 million, up from the previous $640-660 million[17, 38] - Q3 revenue increased by 1% to $1.313 billion[33] - AMP has strong Q3 liquidity of $0.7 billion and expects it to increase to approximately $1 billion by the end of 2024[17] Regional Performance - Europe's revenue increased by 2%, with Adjusted EBITDA up by 18% due to higher input cost recovery and favorable volume/mix[35] - Americas revenue increased by 1%, with Adjusted EBITDA up by 13% driven by favorable volume/mix effects and lower operating costs[35] - Global shipment growth was 2% in Q3, with strong end market performance in Europe[14, 22] Strategic Initiatives - AMP secured a solar virtual Power Purchase Agreement (vPPA) in Portugal, representing approximately 50% of AMP Europe's continental energy consumption[27] - A new credit facility was agreed in Brazil for BRL 500 million (approximately $90 million) to further strengthen liquidity[30] Market Position - AMP is a leading global supplier of sustainable and infinitely recyclable metal beverage cans, with sales of $4.8 billion in 2023[4] - The company holds leading market positions, ranking 2 in Europe and 3 in North America and Brazil[9]