Ball Q1 Earnings Call Highlights

Key Points

• Ball reported Q1 comparable diluted EPS of $0.94, up 22% year-over-year, with comparable operating earnings up 10%, and reiterated 2026 targets including >$900M free cash flow, at least $600M in share repurchases (total shareholder returns of $800M) and a goal of 10%+ EPS growth for the year.
• EMEA led performance with comparable operating earnings up about 20% and low-single-digit volume growth boosted by the Benepack acquisition, while North America showed low-single-digit growth and South America rebounded in April after Q1 declines.
• Management said the business is effectively sold out for 2026 (over 90% sold for 2027) with plant utilization in the mid-to-high 90s; the Millersburg, OR facility is on track to ramp in 2027 with roughly $35M of startup costs, and a potential East Coast plant is planned later in the decade.

Ball NYSE: BALL executives said the beverage packaging maker opened 2026 with what CEO Ron Lewis called “a good start,” citing modest global volume growth alongside stronger earnings and an outlook that maintains the company’s targets for the year.

On the company’s first-quarter 2026 earnings call, Lewis and CFO Dan Rabbitt emphasized demand trends favoring aluminum packaging, while pointing to operational execution, cost discipline, and capital allocation as key drivers of results. Comparable diluted earnings per share rose to $0.94, up 22% year over year, while comparable operating earnings increased 10%.

First-quarter results: modest volume growth, stronger earnings

Lewis said global volumes were up “nearly 1%” versus the prior year, driven by slightly stronger-than-expected volumes in North America and in-line performance in South America, partially offset by EMEA. Rabbitt similarly described global shipped beverage volumes as up about 1% year over year, with low-single-digit growth in North America and EMEA and lower volumes in South America.

Lewis highlighted operating leverage in the quarter, stating comparable operating earnings growth “exceed[ed] our 2x operating leverage objective for the quarter.” He said comparable diluted EPS growth was driven by “strong operational execution, cost discipline, and capital allocation,” and added that the quarter reinforced confidence in delivering “10%+ EPS growth for the full year.”

Rabbitt provided 2026 modeling items, including:

• Free cash flow: expected to be greater than $900 million in 2026
• Effective tax rate (comparable earnings): expected to be slightly above 23%
• Interest expense: expected in the range of $320 million
• Capex: expected to be in line with GAAP depreciation and amortization
• Adjusted corporate undistributed costs (other non-reportable): expected in the range of $175 million
• Leverage: year-end 2026 net debt to comparable EBITDA around 2.7x
• Share repurchases: at least $600 million, contributing to total shareholder returns of $800 million in 2026

Segment performance: EMEA led earnings growth

In North and Central America, Rabbitt said comparable operating earnings rose 2.5% as volumes grew in the low single digits. He attributed the volume performance to demand “particularly in energy drinks and non-alcoholic beverages,” while noting the business is expected to grow at the low end of Ball’s long-term 1% to 3% range in 2026.

In EMEA, Rabbitt said comparable operating earnings increased 20% and volumes were up low single digits. During the quarter, the company completed its Benepack acquisition, which he said strengthens Ball’s European footprint and expands capacity in Hungary and Belgium. For 2026, with Benepack included, Rabbitt said the company expects volume growth above the top end of its long-term 3% to 5% range, with 2x operating leverage.

In South America, Rabbitt said comparable operating earnings were flat as volumes declined mid-single digits, which he attributed to “customer timing and inventory position coming into the quarter.” Lewis later added that April volumes in South America were up 20% year over year, which he said “erases all of the declines we saw in Q1,” bringing the region back to flat volumes for the year to date.

Reporting changes: segment results recast for clearer operating view

Rabbitt said Ball updated segment financial reporting to better separate operating decisions from corporate financing activity. He said the company amended its definition of comparable operating earnings to exclude items such as “factoring fees, interest income, and other impacts driven by corporate financing activity rather than the underlying operations,” while keeping those items in comparable net earnings and comparable diluted EPS.

He also said the company moved beverage can plants in India and Myanmar into the EMEA segment, noting that EMEA management has overseen those operations for several years. Both executives said the changes are intended to provide a clearer view of operating performance, and Rabbitt said they do not materially affect comparable net earnings or comparable diluted EPS.

Macro issues: Middle East tensions, tariffs, and inflation

Asked about effects from Middle East tensions, Lewis said Ball has no direct business in the Middle East and has not experienced supply assurance impacts. He acknowledged that commodity costs, “especially aluminum,” have been affected, but said Ball generally passes aluminum costs through to customers “on an immediate basis.” Lewis added that volumes were “accelerating as we begin the second quarter of the year across all of our businesses.”

On tariffs, Lewis said Section 232 remains the most impactful framework for aluminum costs and pricing and characterized recent changes as “de minimis” for Ball, adding there could be a “slight positive” related to filled products coming into the U.S.

On inflation and consumer spending, Lewis reiterated that “the can is winning in every single region,” citing the package’s durability, shelf life, merchandising benefits, and suitability for promotional activity. Rabbitt added that when inflation pressures consumers, it can drive more at-home consumption, which he said has helped support demand.

Capacity, contracting, and key operational initiatives

Management repeatedly pointed to high utilization levels and a contracted portfolio. Lewis said Ball is “sold out for 2026,” “more than 90% sold” for 2027, and “basically 50% sold” through the rest of the decade. He said North America and Europe have been volume constrained, and described utilization levels “in the mid to high 90s” depending on region.

Ball is progressing on its Millersburg, Oregon facility, which Lewis said is “on track towards full ramp-up in 2027,” with commissioning expected late this year and “material volume” added to the network next year. Rabbitt reiterated expectations for $35 million of startup costs tied to Millersburg and U.S. domestication of ends, with costs expected later in the year and “heavily in the third quarter.” Lewis said the plant is supported by a long-term offtake agreement with a strategic customer and that Ball would not build a new plant without long-term commitments filling essentially all capacity.

Lewis also said the company sees potential to build another plant on the U.S. East Coast, in North Carolina, “at some point before the end of the decade,” though “it won’t be in the next several years.”

Throughout the call, Lewis and Rabbitt emphasized the company’s EVA framework and the Ball Business System as central to operations and capital deployment. Lewis said a key metric for segment profitability is “operating earnings per can,” while Rabbitt said the company is working to make EVA more actionable at a granular level for employees.

About Ball NYSE: BALL

Ball Corporation is a leading provider of sustainable aluminum packaging solutions and advanced aerospace technologies. Headquartered in Broomfield, Colorado, the company serves customers in the beverage, food and aerosol markets through a global network of manufacturing facilities. With an emphasis on sustainability and innovation, Ball designs and produces metal cans, bottles and ends that support recycling and reduce environmental impact.

The company's packaging segment specializes in beverage cans for soft drinks, beer and energy drinks, as well as metal packaging for food and personal care applications.

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