Ball NYSE: BALL reported higher global aluminum shipments and earnings for the third quarter of 2026, citing continued beverage-can demand across its operating regions and progress on new capacity investments. The company said it remains on track to deliver more than 10% comparable diluted earnings-per-share growth for the full year and plans to return approximately $800 million to shareholders in 2026.
Global aluminum shipments rose 4.7% year over year in the third quarter, following 3.4% growth through the first nine months of the year. Comparable operating earnings increased 2.5% in the quarter, while comparable diluted EPS rose 6.8%. For the first nine months, comparable operating earnings grew 6.4% and comparable diluted EPS increased 14%.
CEO Ron Lewis said growth was supported by demand for packaged liquids and an ongoing shift toward aluminum cans, which he said are benefiting from consumer demand for convenience, performance and sustainability. The company said it has now recorded volume growth for seven consecutive quarters.
Regional performance
In North and Central America, Ball reported low-single-digit volume growth, supported by energy drinks and non-alcoholic beverages. The company expects full-year volume growth at the low end of its long-term 1% to 3% range for the region.
Segment comparable operating earnings in North and Central America declined 2.3% from a year earlier. CFO Dan Rabbitt said the result reflected higher costs, including roughly $10 million related to the startup of the Millersburg facility, partly offset by favorable volume and price mix. The company now expects total Millersburg startup costs of about $25 million for 2026.
Rabbitt also said Ball experienced approximately $20 million of metal-related timing benefits during the third quarter, following earlier commodity-price increases, and expects that benefit to reverse in the fourth quarter amid metal-price declines and the timing of customer metal procurement.
In Europe, the Middle East and Africa, volumes increased by the mid-single digits, aided by underlying demand and contributions from facilities acquired in Hungary and Belgium. The company noted that the comparison was partly offset by the prior-year sale of its Saudi Arabian business. Segment comparable operating earnings in EMEA rose 3.7% in the quarter and 9.1% through nine months, reaching a record quarterly level, according to the company.
Ball said it expects EMEA volume growth for the full year to exceed the upper end of its long-term 3% to 5% range, including the acquired facilities. Lewis said the company continues to experience operational friction from tight capacity in Europe, though the Hungary and Belgium assets provide additional expansion opportunities as they are integrated and ramped.
South America delivered low-double-digit volume growth and a 19.5% increase in segment comparable operating earnings during the quarter. Year-to-date segment operating earnings rose 24.2%. Lewis said both Brazil and the company’s other South American markets posted double-digit growth in the quarter, though Ball expects growth to moderate toward the middle of its long-term 4% to 6% range for the full year as the region enters its summer selling season.
Capacity investments and customer commitments
Ball recently announced plans for multi-line aluminum-can facilities in Germany and India. The Baruth, Germany, facility is expected to begin ramping late in 2028, while the Uttar Pradesh, India, plant is expected to begin operating in 2029.
Lewis said the Germany investment is backed by a long-term customer partnership, contractual commitments and expected EVA-accretive returns. He described the project as a facility designed for a strategic customer with strong growth across Europe rather than a broad bet on German market growth. Ball said the facility currently has one anchor customer.
In India, Lewis said the market has been growing at a mid-teens rate for several years and that the planned plant is supported by multiple long-term global customers. The new facility will expand Ball’s network beyond its existing locations in the southeast and southwest of the country.
The company also said it is effectively contracted for its expected 2027 volumes across geographies. Lewis said customers are seeking assurance of supply rather than reducing commitments, particularly as capacity remains tight in North America and Europe.
Ready-to-drink cocktails remain a relatively small portion of industry volume, Lewis said, representing less than 5% of the market, though the category is gaining share. He said the category typically uses 12-ounce or similar sleek can formats.
Cash flow, capital spending and shareholder returns
Ball raised its 2026 capital-expenditure outlook to $650 million, in line with expected GAAP depreciation and amortization. The increase from its prior expectation reflects the company’s ability to pull forward investments and projects, Lewis said, rather than a change in its broader capital-spending strategy.
The company now expects 2026 free cash flow of about $900 million. Rabbitt said working capital has been pressured by higher inventory levels used to support growth and early-year supply-chain challenges, but Ball expects working capital to normalize by year-end.
For 2026, Ball expects a comparable effective tax rate slightly above 23%, interest expense of about $310 million and corporate undistributed costs of approximately $165 million. It anticipates year-end net debt to comparable EBITDA of 2.7 times and plans to repurchase at least $600 million of shares. Together with dividends, the company expects total shareholder returns of roughly $800 million.
Looking ahead, management reiterated its long-term framework of 4% to 6% annual comparable operating-earnings growth through volume gains and operating leverage, supporting a target of more than 10% comparable diluted EPS growth.
About Ball (NYSE:BALL)
Ball Corporation is a global supplier of sustainable aluminum packaging. The company primarily manufactures aluminum beverage cans, bottles and cups used by beer, soft-drink, energy-drink and other beverage companies. Its products are designed to support brand presentation, product protection and recycling throughout the packaging lifecycle.
Ball serves customers across North and South America, Europe and other international markets through a network of manufacturing facilities. The company also develops and markets aluminum packaging products for additional consumer and household applications, including its reusable and recyclable Ball Aluminum Cup.
Founded in 1880 as a manufacturer of glass containers, Ball evolved into a major producer of metal packaging and became particularly known for its aluminum beverage cans.
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