Crown Q1 2025 Earnings Report

Crown EPS Results

• Actual EPS: $1.67
• Consensus EPS: $1.22
• Beat/Miss: Beat by +$0.45
• One Year Ago EPS: $1.02

Crown Revenue Results

• Actual Revenue: $2.89 billion
• Expected Revenue: $2.82 billion
• Beat/Miss: Beat by +$64.64 million
• YoY Revenue Growth: +3.70%

Crown Announcement Details

• Quarter: Q1 2025
• Date: 4/28/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, April 29, 2025
• Conference Call Time: 9:00AM ET

Crown (NYSE:CCK), together with its subsidiaries, engages in the packaging business in the United States and internationally. It operates through Americas Beverage, European Beverage, Asia Pacific, and Transit Packaging segments. The company manufactures and sells recyclable aluminum beverage cans and ends, glass bottles, steel crowns, aluminum caps, non-beverage cans, and aerosol cans and closures. It also provides manual, semi-automatic, and automatic equipment and tools to apply and remove consumables, such as straps and films; protective solutions, including airbags, edge protectors, and honeycomb products; and steel and plastic consumables include steel strap, plastic strap, industrial film, and other related products. The company serves food industries, including pet food, personal care, household, and industrial products. Crown Holdings, Inc. was founded in 1892 and is headquartered in Yardley, Pennsylvania.

Crown Q1 2025 Earnings Call Transcript

Presentation

[Operator]

Good morning, and welcome to Crown Holdings First Quarter twenty twenty five Conference Call.

[Operator]

Please be advised that this conference is being recorded. I would now like to turn the call over to Mr. Kevin Cluthier, Senior Vice President and Chief Financial Officer. Sir, you may begin.

[Kevin Clothier, Senior VP & CFO at Crown]

Thank you, Elle, and good morning. With me on today's call is Tim Donahue, President and Chief Executive Officer. If you don't already have the earnings release, it's available on our website at crowncourt.com. On this call, as in the earnings release, we will be making a number of forward looking statements. Actual results could vary materially from such statements.

[Kevin Clothier, Senior VP & CFO at Crown]

Additional information concerning factors that could cause actual results to vary is contained in the press release and in our SEC filings, including our Form 10 ks for 2024 and subsequent filings. Earnings for the quarter were $1.65 per share compared to $0.56 per share in the prior year quarter. Adjusted earnings per share were $1.67 compared to $1.02 in the prior year quarter. Net sales in the quarter were up 3.7% compared to the prior year quarter, reflecting a 1% increase in global beverage can volumes, 16% increase in North American food can volumes, the pass through of higher raw material costs, partially offset by lower volumes in Transit Packaging. Segment income was $398,000,000 in the quarter compared to $3.00 $8,000,000 in

[Kevin Clothier, Senior VP & CFO at Crown]

the prior

[Kevin Clothier, Senior VP & CFO at Crown]

year, reflecting higher beverage can volumes in Americas and European Beverage, increased volumes in North American food and improved manufacturing performance in the beverage businesses. The company returned $233,000,000 to shareholders in the first quarter of twenty twenty five, including $2.00 $3,000,000 of share repurchases, after returning $336,000,000 in the full year of 2024. The company had a strong first quarter with year on year improvements in segment income, adjusted EBITDA and free cash flow. As we look forward, the potential impact of tariffs creates a wide range of possibilities, including potential slowdown in consumer industrial activities. With all of this in mind, we're raising our guidance for the full year adjusted EPS to $6.7 to $7.1 and project the second quarter EPS to be in the range of $1.8 compared to $1.9 Our adjusted earnings guidance for the full year includes modest changes in certain assumptions.

[Kevin Clothier, Senior VP & CFO at Crown]

We now expect net interest expense to be approximately $360,000,000 exchange rates assume a euro of 108,000,000 to the dollar non controlling interest expense to be $160,000,000 and dividends to non controlling interest are expected to be approximately $140,000,000 Remaining unchanged are assumptions for a full year tax rate of approximately 25% and depreciation of approximately $310,000,000 Also unchanged, we currently estimate 2025 full year adjusted free cash flow to be approximately $800,000,000 after $450,000,000 of capital spending. And at the end of 2025, we expect net leverage to be approximately 2.5 times. With that, I'll turn the call over to Tim.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you, Kevin. As always, a sea of numbers. Good morning to everyone. As reflected in last night's earnings release and as Kevin just summarized, Crown got off to a tremendous start in 2025 with segment income up 29% over the prior year. First quarter beverage can segment income improved 24% over the prior year led by higher than expected shipments in The Americas and Europe.

[Timothy Donahue, Chairman, President & CEO at Crown]

Outstanding manufacturing performance globally including some additional benefits from the prior year's Asian capacity optimization program also contributed to the excellent results. In total, earnings per share were significantly ahead of last year reflecting a quarter in which we executed very well. Americas Beverage reported a 25% income improvement over a very strong first quarter last year. This was led by higher than expected quarterly volumes in North America and Brazil, up 211% respectively. The segment also benefited from high utilization rates as we build inventory for what looks to be a strong summer selling season and a tightening supply situation.

[Timothy Donahue, Chairman, President & CEO at Crown]

With little direct tariff impact in this business, we will keep an eye on consumer demand as the segment strives to achieve income of $1,000,000,000 European beverage volumes improved 5% with growth noted throughout Eastern And Southern Europe and The Gulf States leading to a more than 30% increase in segment income in the quarter. The conversion to the aluminum beverage can from other substrates continues and almost feels as if it is accelerating leading to what we expect will be a very tight supply situation for the segment in the summer as well. Again, we expect very little direct tariff impact to this business. Income in Asia Pacific advanced 12% in the quarter, reflecting two important items: the continuing benefits of our efforts to improve revenue quality and our ongoing cost reduction programs. These offset the volume impact from the closure of an underutilized regional facility.

[Timothy Donahue, Chairman, President & CEO at Crown]

We do expect the Asia Pacific region to be more sensitive to current global trade tensions, so we continue to watch consumer demand there closely. As expected, transit performance was down in the first quarter as subdued industrial demand continues, most notably impacting the higher margin equipment and tools business. In our view, the transit business is the business that could be most affected by tariffs both directly and indirectly. For 2025, we have estimated Crown's potential income exposure to be below $30,000,000 in total, below $10,000,000 of direct exposure and the indirect exposure that is lower spending by our customers given uncertainties in the business environment to be below $20,000,000 It is important to note that these are just rough estimates at this time and only our best effort to estimate the range of risk that may or may not occur. These estimates are included in the revised guidance shown in last night's earnings release.

[Timothy Donahue, Chairman, President & CEO at Crown]

First quarter volumes in North American food advanced 16% on the back of increased demand from vegetable and pet food customers. When combined with improving two piece food can manufacturing performance and a flatter tinplate steel environment in 2025, income and other increased $21,000,000 in the quarter. Reflecting on the first quarter, the beverage can businesses are off to a very good start with the momentum carrying through to the April. On a global business, we continue to generate improving margins necessary in our view considering the amount of capital and manufacturing know how required to efficiently run beverage can lines at high speeds. Both 2023 and 2024 were record EBITDA performances for the company and 2025 is poised to set another record.

[Timothy Donahue, Chairman, President & CEO at Crown]

While the world may feel a bit uncertain, we are well positioned in our markets and we are reminded in times like these that it is good to be in the can business. Operationally in the first quarter of twenty five was outstanding. To summarize, segment income was up 90,000,000 Trailing twelve months EBITDA is now above $2,000,000,000 for the first time with EBITDA margins up two sixty basis points in the quarter. A significant increase in North American food can volumes led by pet foods, improved cash flow from operating activities now positive in the first quarter and we returned more than $200,000,000 to shareholders with minimal impact to our leverage versus year end. Lastly, we want to thank our more than 23,000 associates globally for their hard work and dedication they displayed each day in supporting Crown's customers.

[Timothy Donahue, Chairman, President & CEO at Crown]

As important, I want to congratulate the entire Crown family as together we have surpassed $2,000,000,000 in EBITDA for the first time. With that, Elle, I think we are now ready to take questions.

[Operator]

Thank you. We will now begin the question and answer session. Our first question comes from the line of George Staphos from Bank of America. Your line is now open.

[George Staphos, Managing Director at Bank of America Merrill Lynch]

Thanks so much. Hi, everyone. Good morning. Thanks for the details.

[Timothy Donahue, Chairman, President & CEO at Crown]

Good morning, George.

[George Staphos, Managing Director at Bank of America Merrill Lynch]

Hope everyone is well on your side of the phone. So Tim, can you talk to whether your customers are changing any of their normal behavior going into the seasonal peak period? And what I'm really trying to get is, is there any buying on their part ahead of maybe higher aluminum? I know you said it wasn't a direct impact from what you see, but can you give us a bit of color on how you're seeing that play out now to one or two follow ons?

[Timothy Donahue, Chairman, President & CEO at Crown]

George, on the beverage can side, inventory, say the inventory whether it's empty cans or even filled product that our customers hold is pretty short. Often times we deliver cans within a pretty tight window. Their demand is a pretty tight window and they take the cans, they put them through a can washer and they fill them often times within fifteen to thirty minutes from our delivery. So I don't think on the beverage side we've seen any of that and in fact we've seen the LME come down quite a bit since the specter of tariffs was announced and it's been bouncing around a little bit. I think the LME is much cheaper today than it was earlier in the year.

[Timothy Donahue, Chairman, President & CEO at Crown]

Now having said that, it's offset a bit by the Midwest premium, but they have a lot of levers to pull the beverage guys. I think on the food can side perhaps in North America there may have been some pre buying ahead of what they thought would be the tariff implications on two piece steel. As you know, as well as anybody George, most of the two piece steel used for food cans in The United States comes from the European suppliers as The U. S. Suppliers are not capable and seem unwilling to invest to supply the full needs of U.

[Timothy Donahue, Chairman, President & CEO at Crown]

S. Manufacturers. So I don't don't think we've seen a lot of that happen yet. I think I'll save the other answer for a different question perhaps. Kevin and I spent a lot of time talking to the teams trying to understand if there was any pre buy that was going on.

[Timothy Donahue, Chairman, President & CEO at Crown]

We didn't get the feeling that there was a lot of pre buy and if we want to sit here and make ourselves feel better and hedge the first quarter a little, if the first quarter was 50,000,000 or $60,000,000 better than we anticipated. Could 5,000,000 or $7,000,000 have been related to that? Yeah, but boy the overwhelming majority of the beat against what we were expecting is just strong volume and really good execution.

[George Staphos, Managing Director at Bank of America Merrill Lynch]

Appreciate all that detail, Tim. That's good to hear. One more question on behavior change, but really more at retail. Are you seeing any signs of willingness, either by the brand owners or the retailers, to promote more? Is that maybe what you're seeing on the food side, if you can parse it?

[George Staphos, Managing Director at Bank of America Merrill Lynch]

And then my last question and I'll turn it over. I recall there being some view that in 2025, there'd be some margin compression from PPIs in Europe. Didn't seem like there was much of an effect, but just wanted to check-in on that and see what effect, if you can relay, that might have had and will have in '25? Thank you and good luck in the quarter.

[Timothy Donahue, Chairman, President & CEO at Crown]

I

[Timothy Donahue, Chairman, President & CEO at Crown]

would say on the food can side, I don't think there is any tremendous promotional activity going on. I think we are what we are seeing is that one of our large pet food customers coming out of COVID was exceptionally bullish on what they believe their opportunities to be and I think we are starting to see those opportunities manifesting themselves to the benefit of the customer that we supply, our large customer in pet food. Then some of the vegetable guys that we supply, some of them are less seasonal than others, packing a variety of vegetable products, southern vegetables especially and they are doing quite well. I think it is customer mix. There could be a little pre buy in there, but I think it is largely customer mix that has gone in our favor.

[George Staphos, Managing Director at Bank of America Merrill Lynch]

Your comparison is easy too there, in any event too we should remember that. Please go ahead Tim.

[Timothy Donahue, Chairman, President & CEO at Crown]

On the European question George, think as we began the year we expected to see some headwinds on what you would describe as PPI or CPI in the various formulas we have throughout Europe. I think that's been overwhelmed by volume and I guess I'll get to it now. I was going to save this for another question but it begs the answer now. I think what we are saying, as I said in the prepared remarks, is that we expect a really strong summer selling season. We think the conversion from other substrates is accelerating.

[Timothy Donahue, Chairman, President & CEO at Crown]

I know it's too early to call, it's only one or two quarters of data, but for example, I had the European team give us by country liters of consumption versus can growth and in all cases, can growth is two to three, sometimes 4% greater than consumption of liters. So either we're selling a lot of small cans or there is a substrate shift happening and I think it's substrate shift ongoing and accelerating. So I think to the extent that we were concerned with PPI that PPI is going to be there, but I expect that it is going to be overwhelmed by volume gains.

[George Staphos, Managing Director at Bank of America Merrill Lynch]

Thank you very much, Tim.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thanks, George.

[Operator]

Thank you. Next in line is Phil Ng from Jefferies. Your line is now open.

[Philip Ng, Managing Director at Jefferies Financial Group]

Hey, guys. Congrats on another really strong quarter. Thank gave us some color on why you think you haven't seen any pre buy in Americas. But any color on how trends are shaping up in March and April? Just kind of get a read on what you're seeing out there.

[Philip Ng, Managing Director at Jefferies Financial Group]

Have you seen any slowdown in orders and whatnot?

[Timothy Donahue, Chairman, President & CEO at Crown]

No. As we said in the prepared, we might have even said it in the, I think Kevin's quote in the release and in our prepared remarks, the firmness that we felt in demand throughout the first quarter, we've seen carry through to the April. It does feel like, and I know I said it a couple of times in the prepared remarks, both as it relates to North America and Europe. It does feel like we're going to have a tight supply situation in both geographies this summer. I'm not ready to say that south of the border and I'm not ready to say it out in Southeast Asia, but in our big beverage can businesses in Europe and North America, it feels like things are going to be tight.

[Timothy Donahue, Chairman, President & CEO at Crown]

It feels like we're going have a good summer. I know it's early. We've tried to be cautious with the guidance we've given you. There are some reasons to be cautious with tariffs but it feels like it's going to be a strong season and I'm not yet ready to say that there's the reinitiation of substrate shift in North America yet, but I certainly am prepared to say it in Europe.

[Philip Ng, Managing Director at Jefferies Financial Group]

Okay. And then last quarter, you gave us a view of how you're thinking about North America performance for Crown versus the market 2025 and 2026. Kind of expect it to be in line with the market in 2025 in North America and perhaps a little faster in 2026. Any update on that front in terms of I believe you got some CST contracts that could be up for renewal on that time frame. Any color on that front?

[Timothy Donahue, Chairman, President & CEO at Crown]

I think that we will be materially in line, when I say materially, whether we are 0.5% above or below in '25 with the market and in '26 based on what we see now, we should be ahead of the market.

[Philip Ng, Managing Director at Jefferies Financial Group]

Okay.

[Timothy Donahue, Chairman, President & CEO at Crown]

I think same as we have said before.

[Philip Ng, Managing Director at Jefferies Financial Group]

Okay. And then just last one for me. On the Transit side, results were actually really stable from Q4 to Q1. Think implicit in your guidance, you're baking in some potential softness from tariffs and whatnot. Curious to hear what you are seeing on the quoting and order side of things.

[Philip Ng, Managing Director at Jefferies Financial Group]

Have you seen any slowdown in activity, anything that is pushed out from a timing perspective on the transit side of things thus far?

[Timothy Donahue, Chairman, President & CEO at Crown]

Phil, that is an absolutely excellent question. We are seeing a multitude of quoting opportunities. Quoting is very high. Actual orders for equipment and other longer lead time items is a little slower than we like to see and I think that's a function of customers across a wide variety of industries being very careful with their capital budgets because they are uncertain as to what's going to happen in the economy in general as we look out six, nine, twelve, fifteen months. The opportunity for us is, as you point out, think quite high.

[Timothy Donahue, Chairman, President & CEO at Crown]

We have significantly reduced the cost footprint across the entire organization globally, which has helped us maintain firmer profitability perhaps than you would have expected from a business that has been, I think, improperly characterized in the past as being overly cyclical. I think it's a lot less cyclical than it used to be but having said that, it is certainly more cyclical than cans. The opportunity for us when industrial demand returns and customers get more comfortable with their capital budgets and they are willing to redeploy capital to reduce their long term costs by making the back end of their processes more efficient, that is by taking labor out, we see the opportunity as being quite robust. In the interim, what is happening, they are taking labor out of the back end right now because they don't see the need for the labor. But as they see demand pick up in their own businesses, they have two choices, try to automate the back end of line or bring the labor back and we are hopeful that they continue on the automation path.

[Philip Ng, Managing Director at Jefferies Financial Group]

Do you have any supply chain stuff with equipment with tariffs and whatnot?

[Timothy Donahue, Chairman, President & CEO at Crown]

As we said, we estimate the direct impact of tariffs being below $10,000,000 and most of that Phil, want to tell you that most of that is equipment that we make for customers in Europe that gets distributed in The U. S. And or components that we make for ourselves that we then assemble in The U. S. But the components are made in Europe.

[Timothy Donahue, Chairman, President & CEO at Crown]

Most of that is internal but still subject to tariffs and that would be as we sit here and look at the balance of the year assuming that the ninety day holiday on tariffs comes off so we start feeling that in JuneJuly. That's the less than $10,000,000 Okay.

[Philip Ng, Managing Director at Jefferies Financial Group]

Thank you so much.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Thank you. Our next question comes from the line of Ghansham Panjabi from R. W. Baird. Your line is now open.

[Ghansham Panjabi, Senior Research Analyst at Baird]

Thank you, operator. Good morning, everybody.

[Timothy Donahue, Chairman, President & CEO at Crown]

Good morning, Ghansham.

[Ghansham Panjabi, Senior Research Analyst at Baird]

Good morning. Guess, Tim, going back to the Americas Beverage segment specific to profitability, I know that North American volumes were up 2%, Brazil up 11%, but the incrementals were just phenomenal, 50% almost incremental margins in that segment. Can you give us a bit more color as to what drove that? And then secondly, 1Q is a smaller tail quarter, it is dangerous to linearize trends from the first quarter because a lot can happen between now and the end of the year. Gives you confidence specifically as it relates to your comment about the strong summer selling season?

[Timothy Donahue, Chairman, President & CEO at Crown]

All good questions. Gansham, what I would say is that as you start adding incremental units to factories that are pretty well loaded to begin with, it's all gravy. As you start, it's like a spillover effect and we are running well. As you know, we and others have brought up a number of large multiline, multisize factories over the last several years. We are through learning curve on each of those plants and we are running real well.

[Timothy Donahue, Chairman, President & CEO at Crown]

There is always one offs here and there but I don't think there is nothing remarkable to talk about in terms of a one off. I think these are just incremental volume and running well. I will say that we do believe we were appropriately cautious and appropriately strategic as to how much capital we invested and where we invested and with which customers we invested. So I think we are seeing the benefit of that. As to your second question, yeah, listen, your point is absolutely correct.

[Timothy Donahue, Chairman, President & CEO at Crown]

You can't take the first quarter and just assume the rest of the year is going to look like the first quarter. We generally always try to be a bit cautious as we look out the balance of the year when we are talking to you in April or May. We had a really big first quarter. I don't think you want to I think we are going to have pretty good second quarter, in no way should you model the second quarter growth over last year to be similar to what the growth in the first quarter was over the prior year. But it does feel like demand is really high right now.

[Timothy Donahue, Chairman, President & CEO at Crown]

Now, having said that, we have a lot of cans we have to sell. You have to get through the second and third quarter, the next five or six months. There are a lot of cans that need to leave the warehouse and get through the entire distribution system through to the consumers, be consumed and then we start rebuilding inventory in Q4 for the following season. There is a lot to happen as you rightly point out.

[Ghansham Panjabi, Senior Research Analyst at Baird]

Okay, great. And then my second question, just kind of going through the earnings season and listening to comments out of your customers across, let's say, consumer product group ecosystem, you know, they're throwing out tremendous numbers as it relates to cost increases specific to tariffs and so on. Obviously, they've outlined mitigation strategies against that and, you know, we'll try to take up some price. But just in your conversations with customers, do you sense anything different in terms of how they approach their own promotional cadence and so on and so forth as the year unfolds in context of obviously a huge increase in costs?

[Timothy Donahue, Chairman, President & CEO at Crown]

Yes. As it relates to our business, the tariff impacts notwithstanding the LME or the Midwest Premium, just the specter of tariff impacts from bringing in primary aluminum from Canada and I think it's pretty well documented that that's about perhaps $01 a can and it sounds like a lot but it can be absorbed through to the consumer without a lot of pain. Food can side, little bit, the food can customers, a lot of these customers are family businesses with great brands and they have perhaps a little bit less leeway to operate in that environment and steel tariffs, there's been steel tariffs now for seven or eight years through a couple of administrations and they're not happy with it and they need to find a way to deal with it through their supply chains through to the retailers. Food cans still offer an incredibly economic way for families to feed themselves with healthy nutritious food. Are all going to have to deal with this.

[Timothy Donahue, Chairman, President & CEO at Crown]

Other than tinplate steel that comes in from Europe and primary aluminum which comes in for the non recycled piece which comes into The United States, our industry not overwhelmingly impacted by trade flows from China and or other locations and it feels like it can be absorbed through to the consumer without massive increases. Remember, our customers took prices up a few years ago in response to the LME hitting 4,000 The LME has certainly backed off a long way from 4,000 and they haven't really reduced those selling prices a whole lot. We'll see.

[Ghansham Panjabi, Senior Research Analyst at Baird]

Okay. Got it. Thanks so much.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Thank you. Our next question comes from Stefan Diaz of Morgan Stanley.

[Operator]

Sir, your

[Operator]

line is now open.

[Stefan Diaz, Vice President, Equity Research at Morgan Stanley]

Hello. Good morning, Tim. Good morning, Kevin. Thanks for taking my And congrats on a strong quarter. So maybe just to start, so we had roughly a $0.40 beat in 1Q, '10 percent guide up at the midpoint.

[Stefan Diaz, Vice President, Equity Research at Morgan Stanley]

Is this just conservatism or what are some of the puts in the back half that you're seeing? Or is this just the headwinds that you outlined in your transit business due to tariffs?

[Timothy Donahue, Chairman, President & CEO at Crown]

I would have, I'm assuming that had we not spent some time on tariffs and what the potential impact on tariffs could be specifically in the transit business that you would have met a forecast for the balance of the year that didn't look like the one we generated with a lot more skepticism than you are viewing the one we did put out there. I think we tried to be thoughtful around what the impact could be and we tried to provide a forecast that encapsulated what we think we know, understanding that things are fluid and they are changing rapidly and we don't really know if the ninety day holiday here that he has given everybody is going to be extended or what is going to happen. It was our best effort to provide you with something that we thought was thoughtful.

[Stefan Diaz, Vice President, Equity Research at Morgan Stanley]

Great. That's helpful. And then last quarter, I think you guided to roughly like $275 ish million, dollars 3 hundred million ish of share repurchases. You repurchased a little over $200 in 1Q. Maybe one, is this still the right range to expect where share repurchases might end up?

[Stefan Diaz, Vice President, Equity Research at Morgan Stanley]

And then maybe quickly if I could just sort of slip in one more. I think last quarter you said FX was roughly a $0.10 headwind. Given dollar weakness, what are you sort of assuming for FX now? Thanks.

[Kevin Clothier, Senior VP & CFO at Crown]

So I think you're spot on in terms of share repurchases. We'll purchase somewhere around $300,000,000 maybe slightly less than that. And then on FX, we originally assumed and I'll give you euro as the reference at 103,000,000 We're forecasting now at 108 Clearly, a lot of volatility in the FX market right now. If we were to assume the FX rates stay the same between stay at 1.14, which is where the euro is today, it's probably a benefit to us of another $05 So we have encapsulated some FX gains in our forecast.

[Stefan Diaz, Vice President, Equity Research at Morgan Stanley]

Thank you. I'll turn it over.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Thank you. Our next question comes from Chris Parkinson of Wolfe Research. Sir, your line is open.

[Christopher Parkinson, Managing Director at Wolfe Research, LLC]

Great. Thank you so much for taking my question. Just you've done a lot over the last couple of years in The U. S, Asia and even Europe just to further improve your operational performance and leverage a lot of your new lines on an ongoing basis. Can just give us an update by geography on how you think those are going at this juncture given it's been a few years and how much is perhaps left for improvement or do you feel you've already hit your stride?

[Christopher Parkinson, Managing Director at Wolfe Research, LLC]

Thank you.

[Timothy Donahue, Chairman, President & CEO at Crown]

Chris, I want to make sure I don't say this and I insult our manufacturing teams, but I think there is always room for improvement. Our manufacturing teams are always looking for ways to continuously improve. Having said that, the performance they have demonstrated over the last several years has been nothing short of what we would characterize as remarkable given amount of work required to integrate new factories and new lines, new sizes, changeovers of size, changing customer demands whether it's size under design and at the same time expanding margins in the process. I point that out because I think what they've done has been remarkable. It's been a large part of the margin expansion that we've experienced over the last several years but we all know there is always ways to get better.

[Timothy Donahue, Chairman, President & CEO at Crown]

We have 17 plants in Europe and across Europe and The Middle East or 14 or 15 plants and I'm sure there is one or two that we know we can make better. And there is some that are just absolutely tremendous. There is always opportunity to improve but I think that really done a good job. Think as I said last year numerous times, I think our team in Asia Pacific having gone through a period of tremendous growth really embraced the notion that we are a manufacturing company first and we are going to make cans for profit, are just not going to make cans for growth and so cost reduction efforts, appropriate downsizing where needed, customer pruning where required to get proper returns on the capital that we deploy. Again, I think they have just done a tremendous job.

[Christopher Parkinson, Managing Director at Wolfe Research, LLC]

Thanks for that. Just as a quick follow-up, I wholeheartedly understand that you don't necessarily want to get ahead of yourself just given the macro and the ever evolving situations. But when we think about buybacks, and the cadence for the balance of the year and your cash conversion, perhaps could you just give us a little insight on your thought process in terms of how you're evaluating that for the balance of 2025? Thank you.

[Timothy Donahue, Chairman, President & CEO at Crown]

You're welcome. So as Kevin said, we've $200,000,000 accomplished early in Q1 and you probably should consider roughly another $100,000,000 for the balance of the year, but I think we want to be mindful of the environment we're in. I think we have a long term leverage target of 2.5. We are not really that far away from that. I not overly concerned.

[Timothy Donahue, Chairman, President & CEO at Crown]

I think we have some investors or we have other investors who are not invested in us that would like to see us at that level or lower than that level. So you want to make the company as attractive to as many investors as possible to drive value. And we have a significant amount of debt that we do need to refinance over the next year or two. So we're mindful of all these things. It's just a I think we're fortunate that we have improving operations, we have high demand for our products, we have an improving balance sheet and we have a lot of cash flow that we can address all of these simultaneously.

[Christopher Parkinson, Managing Director at Wolfe Research, LLC]

Helpful color. Thank you very much.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Thank you. Our next question is from Anthony Vettneri of Citigroup. Your line is now open.

[Anthony Pettinari, Analyst at Citigroup]

Good morning. Morning. Tim, you referenced a tight supply situation for the summer in Europe and Americas Bev. And I'm wondering if there are things you're doing to in your system to debottleneck extra cans. More broadly, as you see accelerated substrate shift and maybe think about 2026 and beyond, are there regions where capacity additions may ultimately be required to meet your customers' needs?

[Anthony Pettinari, Analyst at Citigroup]

Can you just talk generally about how much runway you have before you maybe start to bump into

[Timothy Donahue, Chairman, President & CEO at Crown]

Yes, listen, I didn't mean to chuckle when you asked the question. We are always trying to become more efficient in debottleneck. The problem you have when we get into the season, there is no time to get creative and thoughtful about how you're going to do this. You're just running cans. We understand where those bottlenecks are.

[Timothy Donahue, Chairman, President & CEO at Crown]

We will get to it when the season slows down but when you are in the season you are just making cans and you are trying to be thoughtful about how you fill orders and put the orders in the right locations with the right run lengths and etcetera to generate as many cans as possible but it's really hard to do in season. Second part of your question, yes, given the ongoing substrate shift that we believe is happening in Europe, there may be more capacity required. We are adding some capacity in Greece right now and we will continue to evaluate the other markets around the Europe and The Middle East as we go forward.

[Anthony Pettinari, Analyst at Citigroup]

Okay, that's helpful. And then you talked about relatively minimal impact from tariffs to your bev can business. But I'm wondering if you could talk a little bit about your Mexican business, to what extent they're seeing any impact or maybe percentage of your volumes that are going to the domestic Mexican market. And then conversely in Canada, you have, I think, an exposure to Canadian beer. We read about consumers there kind of favoring domestic brands increasingly.

[Anthony Pettinari, Analyst at Citigroup]

Just wondering if you could talk about Mexico and Canada in the context

[Anthony Pettinari, Analyst at Citigroup]

of tariffs and if it kind

[Anthony Pettinari, Analyst at Citigroup]

of moves the needle?

[Timothy Donahue, Chairman, President & CEO at Crown]

Absolutely. Thank you for the question. So, Mexican beverage can business, almost exclusively the cans we sell are filled and distributed Mexico. Very few cans that our customers fill in Mexico get exported to The United States.

[Timothy Donahue, Chairman, President & CEO at Crown]

So we don't have that direct impact from tariffs. We don't see much of a direct impact on tariffs to our Mexican business. What we do worry about in a geography like Mexico would be the indirect impact, that is consumer demand. I think that in any market where disposable income is less and there could be a variety of products that become more expensive, especially if Mexico institutes retaliatory tariffs against The U. S.

[Timothy Donahue, Chairman, President & CEO at Crown]

For those products that have to come into The U. S. From The U. S. Into Mexico and it makes it more expensive for Mexican citizens and you do worry how much of their remaining disposable income will be used to purchase soft drinks and or beer.

[Timothy Donahue, Chairman, President & CEO at Crown]

So for us in Mexico, indirect is almost nothing that our customers feel come to The U. S. Canada, I think as you rightly point out, we have two very well run facilities, one in Toronto, One in Calgary supplying soft drinks and beer to the extent that Canadians want to consume more Canadian beer as opposed to U. S. Imports.

[Timothy Donahue, Chairman, President & CEO at Crown]

That will benefit us. If there is large tariff impacts for Canadian beer that is exported into The U. S, I don't see that as a large impact to our Canadian business.

[Anthony Pettinari, Analyst at Citigroup]

Okay. Is very helpful. I will

[Anthony Pettinari, Analyst at Citigroup]

turn it over.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Thank you. Our next question is from Arun Viswanathan of RBC Capital Markets. Your line is now open.

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

Hey, guys. Sorry about that. Congrats on a very strong quarter. Definitely nice to see that. I guess a few questions here.

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

So first on the guidance, going back to your commentary, if you said that tariffs in total were about $30,000,000 for the year, maybe tax effect that and you get about $0.15 to $0.20 Is that the right way to think about it? And the related question I had there was that you did provide some Q2 guidance as well. So if we put that in and assume the midpoint of the full year, we're only getting to about $3.4 for the back half versus 3.7 to $3.8 current consensus. So there's obviously a big shortfall. I appreciate the uncertainty in the environment right now, but it does imply kind of a pretty large drop off, especially for Q4.

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

So maybe you can just help square some of those thoughts out if you can. Thanks.

[Timothy Donahue, Chairman, President & CEO at Crown]

Yes, I think that the roughly $30,000,000 or less than $30,000,000 we described was specifically related to transit. There always is, in answering Anthony's question, there always is a little bit of concern in a market like Mexico or perhaps Southeast Asia that the indirect impact of tariffs and or inflation, we don't really see recessions impacting our business, but certainly inflation impacts our business. So to the extent that global trade tensions create inflationary environments in a market like Mexico or Southeast Asia, you could be concerned with demand. So it's a forecast. What I would say Arun if you want to look at it differently, if you take the midpoint of our second quarter guidance and if we hit the third quarter and fourth quarter of last year then we would be at the high end of the range that Kevin gave you.

[Timothy Donahue, Chairman, President & CEO at Crown]

So is a variety of ways to look at the guidance we have given you. I would hope that the investor and analyst community would understand that we are trying to be thoughtful and we don't want you to think with such skepticism that we have our head in the sand and we haven't considered the environment that we live in right now.

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

Okay. I appreciate that. Then I guess similar question on free cash flow. Obviously very strong performance. You noted Q1 also stronger than normal I imagine, normal seasonality even so with positives.

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

So do you see upside to free cash flow as you move through the year? What are some headwinds that would prevent that? And then similarly, as you move into next year, it sounds like substrate shift should continue. So does that portend continued free cash flow growth as well? Should free cash flow kind of grow in line with EBITDA?

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

Thanks.

[Timothy Donahue, Chairman, President & CEO at Crown]

I don't want to talk about next year, that's getting ahead of ourselves. I would say it this way, I'd say as we sit here today, we don't see any downside to that cash flow number we've given you. It's early in the year and I know you're looking at the numbers and if results in Q1 were 40,000,000 or $50,000,000 better than you thought they were going be, how does that not flow to cash flow? It's a fair question. We won't be below the $800,000,000 I don't think.

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

Okay, great. And just lastly, any footprint you'd consider, you said tight stuff in North America, tight supply and demand for North American bev can. Does there need to be any actions taken there? I know there's been a lot of actions back and forth, additions and reductions over the last couple of years. Maybe it's best to leave it alone.

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

But what are your thoughts on supplydemand, especially in some of these tighter markets?

[Timothy Donahue, Chairman, President & CEO at Crown]

I'll be careful how I say this. Listen, I think the can industry enjoyed an environment over the last several years in which the balance between global consumer companies that buy from us and the can companies, if it was way out of balance before and not in our favor, we gained a little favor back, but still not a fiftyfifty relationship. The hope is that we're all mindful of supplydemand dynamics and we're all mindful that our responsibility is to provide the best returns to our stakeholders. My hope would be that before we embark on another rapid capacity expansion program that we all keep that in mind as we go through the next several cycles of contract renegotiations. That's not meant to tell anybody anything.

[Timothy Donahue, Chairman, President & CEO at Crown]

That's just meant to tell you how we view capital deployment as being responsible to you, our stakeholders.

[Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets]

Great. Thanks a lot.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Our next question is from Mike Leithead of Barclays. Sir, your line is now open.

[Michael Leithead, Director - Equity Research at Barclays]

Great. Thanks. Good morning, guys. Good morning, 11% Brazil growth this quarter, obviously quite strong. Can you help us understand what drove that number?

[Michael Leithead, Director - Equity Research at Barclays]

Was it business mix, category mix? Just how you triangulated that performance this quarter and how you think you performed relative to the market there?

[Timothy Donahue, Chairman, President & CEO at Crown]

Yes, sure. I think the market is probably 3% or 4%. I would characterize for you our growth in the first quarter largely related to customer If you know anything about the Brazilian market, there are four to five large customers.

[Timothy Donahue, Chairman, President & CEO at Crown]

There's a variety of small customers, but those large customers make up the large majority of the Brazilian can market and we're aligned with a customer that did quite well and promoted product quite heavily through the carnival season. In Q1, I think that we do not and you should not expect that we are going to be up 11% each quarter in 2025 in Brazil but we should be ahead of the market which I assume the market for the full year in the 2% to 3% range. Now having said that, we're going into the winter season but as we get to September and we start to see orders for the summer pack and the following carnival season in '26, we will have a little bit more clarity but as we have always told you, we have been and we remain very bullish on the future of the can market in Brazil.

[Michael Leithead, Director - Equity Research at Barclays]

Great. Thanks, Tim.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Our next question is from Josh Spector of UBS. Your line is now open.

[Anojja Shah, Director Equity Research Analyst at UBS Group]

Hi. It's Anoja Shah sending in for Josh. Good morning.

[Timothy Donahue, Chairman, President & CEO at Crown]

Good morning.

[Anojja Shah, Director Equity Research Analyst at UBS Group]

I

[Anojja Shah, Director Equity Research Analyst at UBS Group]

may have missed this, but did you actually give the volume growth number in Q1 for Europe?

[Timothy Donahue, Chairman, President & CEO at Crown]

I bet you I did not. But Mr. Fisher is looking at me right now and he is holding up five fingers. So I think 5%.

[Anojja Shah, Director Equity Research Analyst at UBS Group]

Okay, thank you. And a large European beer brand last week announced that it's exploring adoption of reusable packaging in their mix. Are you seeing more of this in Europe now as people prepare to address EPR requirements? And if so, can can sort of be technically categorized as reusable since they are infinitely recyclable?

[Timothy Donahue, Chairman, President & CEO at Crown]

Well,

[Timothy Donahue, Chairman, President & CEO at Crown]

that's a question. Listen, I think what we always endeavor to do is increase collection rates and the recycled content and there are a wide variety of initiatives that various countries in Europe and the European Union have put forward with respect to sustainability of packaging products including cans, including whether or not they want refillable containers, reusable containers, recycled content of containers and we're working exceptionally hard to try to get to 90% across the board in Europe and there comes a time I think we get to 90%, we can characterize our products as reusable, refillable, but as you might imagine, the can is not a refillable container, right? So we need to collect and recycle as many units as possible.

[Anojja Shah, Director Equity Research Analyst at UBS Group]

Great. Thank you. And then just a question on the North America market. I know you said your volumes were up 2%, but any sense of how the market was in Q1 and if you have it, the split between alcoholic and nonalcoholic?

[Timothy Donahue, Chairman, President & CEO at Crown]

Yes. Well, We don't get all the information anymore. Not all of the can companies report data to our and not all the can companies are members of the association we belong to. I'm guessing we were up 2% in North America. I bet you the market could have been up 3%.

[Timothy Donahue, Chairman, President & CEO at Crown]

It just feels like the market was a little stronger than we initially thought it was going to be. I tell you 3%. I do think that if mass beer was down, think it is being replaced with cans being used for other alcoholic products. Think soft drinks perhaps up a little bit more than soft drinks and energy. Iim giving you this off the top my head because we donit get all data again.

[Timothy Donahue, Chairman, President & CEO at Crown]

But I think soft drinks and energy up more than alcohol as the other flavored alcohol drinks offset the decline in mass beer.

[Anojja Shah, Director Equity Research Analyst at UBS Group]

Great. Thank you. Thatis very helpful. Iill turn it over.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Thank you. Our next question is from Jeff DeCoskos of JPMorgan Chase. Your line is now open.

[Jeff Zekauskas, Analyst at JPMorgan Chase]

Thanks very much. If you were one of your customers, would you build inventories in The United States given the raw material patterns?

[Timothy Donahue, Chairman, President & CEO at Crown]

On the beverage can side, absolutely not. They have managed to optimize their supply chain to where we deliver just in time and they fill and they deliver just in time to the retail and I don't know why they would build unless they have already designs on mass promotions which can only be done at lower prices. Don't see why they would do that. Think cans are available. The supply chain may get tight but generally what that means when supply gets tight is that customers that are under contract get cans.

[Timothy Donahue, Chairman, President & CEO at Crown]

Customers that are not under contract, they struggle to get cans. I don't think you will see that in beverage. On the food side, they might take some cans in early but they typically take cans early all year anyway because that's how we have to make them because they fill so much more during the pack season than is able to be produced during the pack season.

[Jeff Zekauskas, Analyst at JPMorgan Chase]

Your margins were very strong in the first quarter. Were they unrepresentatively high? That is, were there positive price raw material variances that might have been temporary? Or is this something which could be a steady state for the year?

[Timothy Donahue, Chairman, President & CEO at Crown]

I'll take the North American food business to start and I'll come back to beverage.

[Jeff Zekauskas, Analyst at JPMorgan Chase]

So

[Timothy Donahue, Chairman, President & CEO at Crown]

in North American food last year, we had metal repricing headwinds probably of 8,000,000 to $10,000,000 that we did not face this year. It was basically benign. It was zero. The pricing environment was flat. Year on year, that's a tailwind just because of the cost we had last year that we didn't experience this year.

[Timothy Donahue, Chairman, President & CEO at Crown]

So you would argue that if you are in a flat environment going forward, all things being equal, that we don't have a plus or a minus going forward next year from that. On the beverage can side, listen I think we passed through a lot unrepresentatively high. I hope the answer to that is no, but you are always concerned that especially you sometimes become concerned if your margins are higher than others. Do they have incentive to try to get to your margin level or do they have incentive to try to drag you down? I will say that the margins expanded in Q1 and they expanded in an environment where the aluminum was higher, so we are passing through higher aluminum and at the same time we generated higher margins.

[Timothy Donahue, Chairman, President & CEO at Crown]

You typically see higher margins when we are passing through lower aluminum costs. Listen, plants are running full. We have run a lot of inventory because we expect a strong summer selling season, so utilization is high, profit and inventory is quite high and we are running well. I hate to say it's too high because I could have told you it was too high last year and just in The Americas beverage business we are almost two fifty basis points higher than we were in Q1 last year and Q1 last year I bet you was 100 basis to 200 basis points higher than it was in '23. Jeff, it's a good question.

[Timothy Donahue, Chairman, President & CEO at Crown]

It's just one of those questions you hate to answer because you never know how high you can go if you don't keep pushing and we're pushing.

[Jeff Zekauskas, Analyst at JPMorgan Chase]

Great. Thanks so much.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you.

[Operator]

Our next question is from Edlain Rodriguez of Mizuho. Your line is now open.

[Edlain Rodriguez, Equity Analyst at Mizuho Securities]

Thank you. Good morning, everyone. I mean, Tim, like the other segment, of course, driven by food chems has rebounded very strongly. Like how should we think of that of income in that segment Should we think of that $55,000,000 as like a good run rate for the rest of the year?

[Timothy Donahue, Chairman, President & CEO at Crown]

Well, I think if I wanted to give you a number, Edlyn, I would tell you to think about $100,000,000 for this year. So why don't we do that and I think we expect to see some growth in Q2 versus Q2 last year and we will see how the balance of the year plays out. So much of that business is tied to the food can pack in the third quarter that sometimes hard to tell you how Q3 is going go until we know how well the crops come in and the business is a little bit less cyclical or seasonal than it used to be only because pet foods are more stable than seasonal and pet foods are increasingly bigger part of that business. Think about 100,000,000 for the year.

[Edlain Rodriguez, Equity Analyst at Mizuho Securities]

Okay, makes sense. One last one, I think in the prior answer you said like if you look at the second half versus like last year, if you do the same, you'll be at the high end of your guide. Like what would have to happen for you to be below last year's second half? Can you see anything out there that could prevent you from exceeding or at least mid the second half of last year?

[Timothy Donahue, Chairman, President & CEO at Crown]

A lot of things that can happen, right? You want to ask a CEO what can go wrong? I spend my whole life worrying about what can go wrong. I don't mean to say it that way, but if you don't run a business that way then you're taking your eye off the ball. But listen, I think that let's talk about what could go wrong and why we think the range we've given you is achievable and the opportunity for the high end of the range is also achievable.

[Timothy Donahue, Chairman, President & CEO at Crown]

We talked about earlier that indirect tariff exposure on the beverage can side in our view largely only exposed in markets like Southeast Asia and or Mexico where the economies are a little bit more fragile, disposable income not as great as it is in North America and Europe for consumers. Now we'll see how that goes, but you're not talking about huge numbers here, People are still going to consume and then the other, if the summer selling season does not turn out to be as robust as I have indicated our confidence to be in North America and Europe it could drag you down a few cents but it really feels like both regions are going to be strong just as we sit here today at the April. And then lastly, we try to be very mindful and I don't know if we've been overly cautious or not as cautious as we should have been with respect to direct and indirect tariffs in our transit business, but we put a number out there and it could be too high of a number or it could be too little of a number but we will see how the rest of the year goes.

[Timothy Donahue, Chairman, President & CEO at Crown]

We think we have given you a range. We do think the higher end of the range is achievable but we are going to see how of the year plays out, are going to see how tariffs play out and we are going to see how consumer demand plays out into our strong selling season. Let's not forget, we have a lot of cans we and the rest of the members of the industry need to sell over the next five months.

[Edlain Rodriguez, Equity Analyst at Mizuho Securities]

No, makes sense. Good color. Thank you.

[Timothy Donahue, Chairman, President & CEO at Crown]

Elle, are we going to take one more we will take one more question please.

[Operator]

Sure. Our next question is from Gabe Hajde of Wells Fargo Securities. Your line is now open.

[Gabe Hajde, Analyst at Wells Fargo]

Tim, Kevin, good morning.

[Timothy Donahue, Chairman, President & CEO at Crown]

Good morning, Gabe.

[Kevin Clothier, Senior VP & CFO at Crown]

Good morning, Gabe.

[Gabe Hajde, Analyst at Wells Fargo]

I'm going to try to ask for a third time, maybe specifically sort of what you know and feel like you have under your belt, appreciating like you said, second half a lot can happen. The sequential EPS increase of 13 to 23¢ in the Q2, I think in Q1 in 2023, it was like 48¢. In 2024, was 79¢. Seems pretty small, the leap. And so to the extent you're willing to, the bridge on America's EBIT improvement, volume, maybe productivity improvements, anything like that that we should be mindful of as we think about the second quarter?

[Timothy Donahue, Chairman, President & CEO at Crown]

I think I'm probably not prepared to do that because there are too many people listening. Dave, what I would tell you, it all comes down to volume as we get through the summer. We are not only looking to sell cans, we are looking to rebuild the inventory and keep utilization rates real high. Easiest way to rebuild inventory is if your customers take cans. So, your sales are high and you have to rebuild the inventory for the next quarter.

[Timothy Donahue, Chairman, President & CEO at Crown]

It all comes down to customer pull. Okay.

[Gabe Hajde, Analyst at Wells Fargo]

Have two last ones. Will try to squeeze in quick. When there is consolidation with your customers, can you talk about how long it may take to bring that new customer on to maybe your contracts and things like that? And do you typically get the benefit of those incremental cans in like the acquisition year or does it take a little bit to flow through? And then on the cash flow side, is there a specific working capital assumption built in there Kevin?

[Gabe Hajde, Analyst at Wells Fargo]

Are plants more expensive to build or lines more expensive to add versus even two, three years ago? And Q1 CapEx $33,000,000 I'm assuming timing, but anything in there that we should be mindful of?

[Timothy Donahue, Chairman, President & CEO at Crown]

A lot of questions there. Let's try to remember them all. Capital, I think that largely timing, Gabe. We're running flat out. It's hard to tell the plants to dedicate resources to another area of the factory for needs for new capital.

[Timothy Donahue, Chairman, President & CEO at Crown]

We're running flat out right now in the big markets and but largely timing. I think we'll start to spend more money as we go through the year. Kevin, you want to take the working capital and then Gabe will remind me of the first question because I Sure.

[Kevin Clothier, Senior VP & CFO at Crown]

Gabe, yes, working capital is going to run somewhere, call it $75,000,000 outflow this year.

[Timothy Donahue, Chairman, President & CEO at Crown]

Yes, and part of that question was our plants more expensive to build, absolutely, I mean, I'll just give you numbers. What we might have envisioned, the all in cost of a new two line can plant building and equipment, if it used to be $170,000,000 it might be over $250,000,000 now or more. So yes, much more expensive, construction, steel, labor, all kinds of things, permitting, all kinds of things. You had a first question that I forgot and I apologize. Please ask again.

[Gabe Hajde, Analyst at Wells Fargo]

Consolidation with your customers, do you typically see the impact of that?

[Timothy Donahue, Chairman, President & CEO at Crown]

Think you asked a question and the answer is all of the above. It really depends on what commitments the acquired or the target business has had with its suppliers and it may depend on the contracts that the acquiring company has with its suppliers. I would say all of the above. But If we are already supplying the target, then we have the artwork. If we are not supplying the target, it doesn't take very long to get the artwork and then get qualified at that new customer.

[Timothy Donahue, Chairman, President & CEO at Crown]

The answer is all of the above.

[Gabe Hajde, Analyst at Wells Fargo]

Thank you.

[Timothy Donahue, Chairman, President & CEO at Crown]

Thank you, Gabe.

[Operator]

You.

[Timothy Donahue, Chairman, President & CEO at Crown]

That was the last question. Thank you very much and that will conclude the call. We thank all of you for joining us and we look forward to speaking with you again in July. Bye now.

[Operator]

That concludes today's conference. Thank you everyone for joining. You may disconnect and have a great day.

Participants

Executives

• Kevin Clothier, Senior VP & CFO

Analysts

• Timothy Donahue, Chairman, President & CEO at Crown
• George Staphos, Managing Director at Bank of America Merrill Lynch
• Philip Ng, Managing Director at Jefferies Financial Group
• Ghansham Panjabi, Senior Research Analyst at Baird
• Stefan Diaz, Vice President, Equity Research at Morgan Stanley
• Christopher Parkinson, Managing Director at Wolfe Research, LLC
• Anthony Pettinari, Analyst at Citigroup
• Arun Viswanathan, Senior Equity Analyst at RBC Capital Markets
• Michael Leithead, Director - Equity Research at Barclays
• Anojja Shah, Director Equity Research Analyst at UBS Group
• Jeff Zekauskas, Analyst at JPMorgan Chase
• Edlain Rodriguez, Equity Analyst at Mizuho Securities
• Gabe Hajde, Analyst at Wells Fargo