Ball Corporation (BALL) Earnings & Analysis

Latest quarter

Ball reported third-quarter revenue of $4.188 billion, up 23.9% from a year earlier and above the $3.738 billion consensus. Comparable diluted earnings per share were $1.10, above the $1.06 consensus.

Ball’s filing attributed the year-over-year sales increase primarily to price and mix, mainly higher aluminum prices, as well as higher volume. CFO Daniel Rabbitt said global aluminum shipments rose 4.7%, with growth across each business unit. He said North and Central America comparable operating earnings declined as higher costs, including Millersburg startup costs, outweighed benefits from volume and price mix. EMEA and South America comparable operating earnings increased.

Ball reported a diluted loss per share of −$0.36, compared with earnings of $1.18 a year earlier. The filing attributed the decline in net earnings primarily to a $475 million noncash settlement charge following a U.K. pension buy-out. Gross margin fell to 16.9% from 20.1%, while quarterly free cash flow declined to $32.0 million from $257.0 million.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Ron Lewis said packaged-liquid volumes continue to grow and aluminum cans are gaining share. He attributed South American volume growth to Ball’s customer portfolio and said both Brazil and its other markets grew by double digits. For the coming summer selling season, Lewis expected growth to return to the company’s long-term regional range.

In North and Central America, CFO Daniel Rabbitt said energy drinks and nonalcoholic beverages supported demand. He said higher costs, including approximately $10 million in Millersburg startup costs, reduced the region’s comparable operating earnings, partly offset by volume and price mix. Rabbitt expects the third-quarter benefit from the timing of metal pass-through to reverse in the fourth quarter, affected by metal price declines and timing with customers that procure their own metal.

Asked about European capacity, Lewis said growth had created operational friction and that the acquired Hungary and Belgium plants were not yet running continuously. He said Ball’s planned Baruth, Germany, facility is supported by a long-term customer partnership and is expected to ramp up in late 2028. Lewis said the planned Uttar Pradesh, India, plant is expected to be operational in 2029.

On competition in North America, Lewis said he was not spending much time worrying about new entrants and described the existing supply-and-demand balance as healthy. He said the Millersburg plant was operating and that Ball had absorbed its excess capacity after volume growth in 2025.

Asked about cash flow and working capital, Rabbitt said higher inventories had supported growth and reflected supply-chain challenges at the start of the year. He expects working capital to normalize in the fourth quarter. Lewis said fourth-quarter volume growth should be in line with the year-to-date experience and that he expects modest EPS growth.

Guidance

Lewis said Ball raised its 2026 capital expenditure expectation to $650 million from $600 million, attributing the change to the timing of investments. Rabbitt said full-year adjusted corporate undistributed costs are expected to be in the range of $165 million, compared with the prior expectation of $175 million.