Ball NYSE: BALL executives highlighted record results for 2025 and outlined expectations for continued earnings and cash flow growth in 2026, as the company leans into global demand trends for aluminum beverage cans and recent capacity investments.
Leadership transition and strategic priorities
Chief Executive Officer Ron Lewis, speaking on his first earnings call in the role, said Ball’s strategy is “intact and it is working,” emphasizing execution through the company’s Ball Business System, disciplined capital allocation measured by economic value added (EVA), and a focus on “doubling down on profitable growth.” Lewis said industry fundamentals remain supportive, pointing to global packaged liquid volume growth and aluminum cans gaining share due to convenience and sustainability alignment.
Lewis also noted Ball’s operational footing, citing high utilization rates, improvements in profit per can, and opportunities for further efficiency gains. He said the company’s long-term financial algorithm remains centered on “10%+ annual comparable diluted EPS growth, strong free cash flow, and consistent returns to shareholders.”
Chief Financial Officer Dan Rabbitt, newly appointed to the role, echoed confidence in Ball’s outlook and said the company’s balance sheet and operating execution position it well for 2026 and beyond.
2025 results: record EPS and free cash flow
Management described 2025 as a record year. Fourth-quarter global shipped volumes increased 6%, and full-year global volume growth was 4.1%. Comparable diluted earnings per share reached a record $3.57, up 13% from 2024, while adjusted free cash flow totaled $956 million, which Lewis called a “new high watermark” and said was up 2.4 times year-over-year.
Rabbitt said fourth-quarter comparable earnings increased 6.8% and full-year comparable earnings increased 5.6%. The company returned $1.54 billion to shareholders in 2025 through share repurchases and dividends, including $1.32 billion in buybacks. Rabbitt said shares outstanding fell to 265 million, a 16% reduction over the past two years.
Ball ended 2025 with net debt to EBITDA of 2.8x, in line with expectations. Rabbitt said the company is targeting net debt to EBITDA of 2.5x “in the coming years” while continuing to repurchase 4% to 6% of shares outstanding annually.
Regional performance and key operating drivers
In North and Central America, segment comparable operating earnings rose 12% in the fourth quarter and 3.3% for the full year. Volume grew at a high single-digit rate in the fourth quarter and 4.8% for the year, led by strength in energy drinks and non-alcoholic beverages. Rabbitt said the team navigated the complexities of Section 232 tariffs and a volatile environment.
On the call, management said industry data indicated the U.S. can market grew about 2% in 2025, while Ball’s North America volumes rose 4.8%, attributing outperformance to its customer portfolio, network, and ability to serve multiple can sizes and formats.
In EMEA, segment comparable operating earnings increased 36.7% in the fourth quarter and 19% for the full year. Volume grew at a high single-digit rate in the fourth quarter and 5.5% for the year. Lewis said operating leverage in Europe benefited from growing into available capacity, and that demand trends remain favorable with can penetration still relatively low in some categories.
In South America, segment comparable operating earnings increased 1% in the fourth quarter and 10.5% for the full year, with high single-digit volume growth in the fourth quarter and 4.2% for 2025. Management said the region is positioned for sustained momentum into 2026.
Rabbitt added that since 2019, Ball’s EMEA and North American businesses have expanded profit per can by more than 30%, with EMEA reaching an all-time record, driven by cost management and standardization efforts.
Benepack acquisition and capacity investments
Lewis said Ball closed “late last week” on the previously announced acquisition of two Benepack beverage can facilities in Belgium and Hungary—countries where Ball did not have plants previously. He described the deal as an opportunity to optimize the European manufacturing network and support long-term volume projections and EVA growth, noting the assets were acquired at a price below replacement cost.
Management characterized Benepack as similar to the Florida Can acquisition, describing the facilities as newer plants that have not run continuously and will require improvement to ramp up. Lewis said Benepack is expected to produce about 1.7 billion units in 2026, with comparable operating earnings projected to be “pretty close to flat,” framing it as more meaningful for 2027 and beyond.
2026 outlook: EPS algorithm intact, cash flow above $900 million
For 2026, management reiterated expectations to deliver 10%+ comparable diluted EPS growth and forecast free cash flow greater than $900 million. Rabbitt provided additional modeling items:
- Effective tax rate: slightly above 23% on comparable earnings
- Interest expense: $320 million
- Capex: in line with GAAP depreciation and amortization
- Adjusted corporate undistributed costs: about $160 million
- Year-end 2026 net debt to comparable EBITDA: around 2.7x
In North America, the company expects 2026 volume growth at the low end of its long-term 1% to 3% range, with management citing capacity constraints until new capacity comes online in Millersburg, Oregon. Rabbitt said startup costs tied to Millersburg and expected direct tariff costs related to domesticating some ends production are expected to be a combined approximately $35 million in 2026, with commentary during Q&A suggesting more of the impact will be back-half weighted.
In EMEA, Rabbitt said Ball expects volume growth above the top end of its long-term 3% to 5% range in 2026 with the Benepack assets and expects to deliver 2x operating leverage. In South America, management guided to volume growth at the low end of its 4% to 6% long-term range and 2x operating leverage.
Executives also addressed cost pass-through dynamics, saying Ball is “broadly a pass-through business” with contractual mechanisms for inflationary pressures, including natural gas in Europe and can coatings. On tariffs and aluminum pricing, management said there was no direct impact beyond the ends-related items discussed, and pointed to continued can category resilience in the U.S. relative to other packaging substrates.
On cost savings initiatives, Lewis said Ball expects to deliver its targeted $500 million in cost savings within a three-year timeframe (2024–2026), rather than the previously contemplated four years, and said “more like three-quarters” of the savings have been delivered in the first two years. He said the operational excellence platform has been rolled out across all 67 plants globally.
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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