Financial Performance - For the three months ended March 31, 2025, net sales increased by $223 million to $3,097 million, compared to $2,874 million in the same period in 2024, primarily driven by a $150 million increase from price/mix and a $117 million increase from higher volume [106]. - Net earnings attributable to Ball Corporation for the three months ended March 31, 2025, decreased by $3.51 billion to $179 million, primarily due to a $3.61 billion decrease from lower discontinued operations [107]. - Cost of sales for the three months ended March 31, 2025, was $2,493 million, representing 80% of consolidated net sales, compared to $2,283 million or 79% of net sales in the same period in 2024, with a $179 million increase attributed to higher aluminum costs [109]. - Comparable operating earnings for Beverage Packaging in North and Central America increased to $195 million for the three months ended March 31, 2025, from $192 million in 2024, with net sales rising to $1,463 million from $1,403 million [119]. - Beverage Packaging in EMEA reported net sales of $903 million for the three months ended March 31, 2025, an increase of $93 million compared to $810 million in 2024, with comparable operating earnings rising to $96 million from $85 million [123]. - Beverage Packaging in South America achieved net sales of $544 million for the three months ended March 31, 2025, up from $482 million in 2024, with comparable operating earnings increasing to $69 million from $55 million [125]. Tax and Interest - The effective tax rate for the three months ended March 31, 2025, was 23.1%, a decrease of 3.6 percentage points from 26.7% in the same period in 2024, primarily due to increased tax benefits from U.S. permanent differences [117]. - Interest expense decreased to $70 million for the three months ended March 31, 2025, from $93 million in 2024, with the interest expense as a percentage of average borrowings decreasing from 5.2% to 4.4% [116]. Cash Flow and Investments - Cash flows used in operating activities were $665 million in Q1 2025, primarily due to working capital outflows of $887 million, offset by earnings of $181 million and depreciation adjustments of $150 million [133]. - Cash flows used in investing activities totaled $207 million in Q1 2025, mainly driven by $160 million for the acquisition of Florida Can Manufacturing and $81 million in capital expenditures [134]. - Cash flows provided by financing activities were $396 million in Q1 2025, primarily from net inflows of $1.01 billion in borrowings, offset by $555 million in stock repurchases and $57 million in dividends [135]. Shareholder Returns and Debt - The company plans to return approximately $1.3 billion to shareholders through share repurchases in 2025, with $555 million repurchased in Q1 2025 compared to $182 million in Q1 2024 [142]. - Total interest-bearing debt increased to $6.75 billion as of March 31, 2025, up from $5.69 billion at December 31, 2024 [144]. - The company has $3.67 billion remaining available for share repurchases under the Board of Directors' approved plan as of March 31, 2025 [143]. Capital Expenditures and Operational Focus - The company expects capital expenditures for property, plant, and equipment to be around $600 million for 2025, with $276 million already contractually committed as of March 31, 2025 [139]. - The company is focused on maintaining a strong financial position through operational efficiencies, innovative product offerings, and strategic acquisitions to enhance growth in the aluminum packaging industry [99]. - Ball Corporation continues to evaluate potential strategic acquisitions and divestitures to benefit the company and its shareholders [102]. Operational Metrics - As of March 31, 2025, days sales outstanding was 77 days, with a one-day change impacting operating cash flows by $34 million [133]. - The company recorded net sales of $1.734 billion for the three months ended March 31, 2025, with a gross profit of $218 million [153]. - Contributions to defined benefit pension plans were $7 million in Q1 2025, with an expected total of approximately $32 million for the full year [138].

Ball (BALL) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Company Participants Brandon Potthoff - Head of Investor RelationsDaniel Fisher - Chairman & CEOHoward Yu - Executive VP & CFOStefan Diaz - Vice President, Equity ResearchPhilip Ng - Managing DirectorJosh Spector - Executive DirectorGeorge Staphos - Managing DirectorNiccolo Piccini - Equity Research AssociateChristopher Parkinson - Managing Director Conference Call Participants Ghansham Panjabi - Senior Research AnalystAnthony Pettinari - AnalystEdl ...

Financial Data and Key Metrics Changes - In Q1 2025, comparable diluted earnings per share increased to $0.76 from $0.68 in Q1 2024, representing a 12% growth [12] - Comparable net earnings for Q1 2025 were $216 million, driven by higher volumes, lower interest expenses, and cost management initiatives [12][14] - The company anticipates a net debt to comparable EBITDA ratio of 2.75 times by year-end 2025 and plans to repurchase at least $1.3 billion worth of shares in 2025 [15][16] Business Line Data and Key Metrics Changes - North and Central America saw a 2% increase in comparable operating earnings, driven by stronger-than-expected volume performance, particularly in energy drinks and non-alcoholic beverages [12][13] - EMEA segment volume remained robust, with comparable operating earnings increasing by 13% [13] - South America experienced a 25% increase in segment comparable operating earnings, supported by strong volume performance across all markets [14] Market Data and Key Metrics Changes - Global shipments increased by 2.6% year-over-year in Q1 2025, with volume growth expected to be in the 2% to 3% range for the year [8][9] - In EMEA, mid-single-digit volume growth is anticipated for 2025, driven by the competitive advantages of aluminum packaging [9] - In South America, recovery in Argentina and Chile, along with growth in Brazil, is expected to drive volume growth above the long-term range of 4% to 6% in 2025 [9] Company Strategy and Development Direction - The company is focused on achieving 11% to 14% comparable diluted earnings per share growth in 2025 and generating record adjusted free cash flow [7][19] - A strategic partnership, Oasis Venture Holdings, was formed to enhance the aluminum cup business, indicating a focus on long-term growth potential [10] - The company emphasizes operational excellence, disciplined cost management, and driving efficiency across the organization [17][20] Management's Comments on Operating Environment and Future Outlook - Management remains confident in navigating uncertainties related to tariffs and consumer pressures, particularly in the U.S., while sustaining positive momentum [7][19] - The company is optimistic about the resilience of its global portfolio and strong customer alignment, which positions it well to handle potential economic slowdowns [10][19] - Management highlighted the importance of monitoring geopolitical developments and their potential impact on operations [17] Other Important Information - The company has repurchased $651 million worth of shares year-to-date and plans to continue aggressive stock repurchases [15] - The effective tax rate for 2025 is expected to be slightly above 22%, influenced by lower year-over-year tax credits [16] - Capital expenditures for 2025 are expected to be slightly below depreciation and amortization, in the range of $600 million [15][16] Q&A Session Summary Question: Can you frame your supply position in Europe and the next leg of incremental growth? - Management indicated that they have made significant investments in Europe, which allows for scaling up production, and they expect continued growth into 2026 and 2027 [25][28] Question: How are self-improvement initiatives tracking in North America? - Management noted that while they do not expect margin expansion, they are seeing improvements in Europe and South America due to lean initiatives [30] Question: What is the impact of tariffs on demand, particularly regarding Mexico beer exposure? - Management stated that the impact of tariffs is minimal and they have not seen significant changes in customer behavior or forecasts [36][38] Question: How is the promotional environment shaping up in major markets? - Management observed that there has been innovation in the energy segment and a more deliberate effort to price products to drive volume [46] Question: Can the company achieve 11% EPS growth if volume falls short due to tariffs? - Management expressed confidence in navigating uncertainties and highlighted the resilience of aluminum packaging in a recession [70][74] Question: What are the expectations for margin sustainability in North America? - Management acknowledged that maintaining current margins will be challenging due to affordability concerns among CPG customers [112][114] Question: How is the company adjusting its mix in specialty cans? - Management noted that there is growth in 12-ounce cans and that affordability is a key factor in the current market [115] Question: What are the trends in Latin America and expectations for growth? - Management indicated that Brazil is expected to see 2% to 3% growth, with recovery in Argentina and Chile contributing to overall growth in the region [121][123] Question: How should the market view supply-demand dynamics in Europe? - Management highlighted that Europe presents more growth opportunities than North America due to the shift away from glass packaging [125][128]

Financial Performance - First quarter 2025 net earnings attributable to Ball Corporation were $179 million, or diluted earnings per share of $0.63, compared to $3.69 billion and $11.61 per share in 2024[4][27]. - Comparable net earnings for the first quarter 2025 were $216 million, or $0.76 per diluted share, compared to $217 million, or $0.68 per diluted share in 2024[5]. - Total sales for the first quarter 2025 were $3.10 billion, an increase from $2.87 billion in the same period of 2024[4][27]. - Comparable net earnings for Q1 2025 were $216 million, slightly down from $217 million in Q1 2024, indicating a decrease of approximately 0.5%[53]. - Comparable Operating Earnings for the twelve months ended March 31, 2025, were $1,478 million, compared to $1,472 million for the previous year[56]. - Comparable EBITDA for Q1 2025 was $462 million, slightly up from $459 million in Q1 2024[56]. - Earnings from continuing operations for Q1 2025 were $181 million, up from $79 million in Q1 2024[54]. Sales and Volume - Beverage packaging segment comparable operating earnings in North and Central America were $195 million on sales of $1.46 billion, reflecting higher volume and price/mix[8]. - First quarter segment volume increased low-single digit percent in North and Central America, and mid-single digit percent in EMEA[11][12]. - Net sales increased from $2,874 million in Q1 2024 to $3,097 million in Q1 2025, representing an increase of about 7.8%[42]. - Reportable segment sales rose from $2,695 million in Q1 2024 to $2,910 million in Q1 2025, an increase of about 8%[42]. Shareholder Returns - Ball Corporation returned $612 million to shareholders in the first quarter 2025, on track to return at least $1.5 billion by year-end[9][19]. - The company expects comparable diluted earnings per share growth in the range of 11-14% for 2025[22]. Debt and Cash Flow - Total debt at the end of the period was $6,717 million, with net debt standing at $6,268 million[56]. - Free Cash Flow for Q1 2025 was $(746) million, with total cash used in operating activities at $(665) million[56]. - Cash provided by operating activities was negative $665 million for the first quarter 2025, compared to negative $1.25 billion in 2024[28]. - Interest expense decreased to $70 million in Q1 2025 from $93 million in Q1 2024[54]. - Interest coverage ratio (Comparable EBITDA/Interest Expense) improved to 7.21x, while leverage (Net Debt/Comparable EBITDA) was 3.22x[56]. Asset Management - Total assets decreased from $19,898 million in 2024 to $18,039 million in 2025, a decline of approximately 9.3%[30]. - Current liabilities decreased from $5,384 million in 2024 to $4,845 million in 2025, a reduction of approximately 9.9%[30]. Strategic Actions - The company completed the divestiture of its aerospace business for $5.6 billion, resulting in a pre-tax gain of $4.61 billion after adjustments[41]. - The acquisition of Florida Can Manufacturing for $160 million is expected to enhance the supply network in North and Central America[38]. - The divestiture of the aerospace business removed it from the company's obligor group, impacting the company's senior notes and credit facilities[41]. - The company recorded an additional loss of $6 million related to the aluminum cups business transaction in Q1 2025[39]. - The company is focused on advancing sustainable aluminum packaging and maintaining a robust financial position to support long-term growth[22][19].

Group 1 - Ball Corporation will announce its first quarter 2025 earnings on May 6, 2025, before trading begins on the New York Stock Exchange [1] - A quarterly conference call will be held at 9 a.m. Mountain Time (11 a.m. Eastern Time) on the same day to discuss the company's results and performance [1] - North American callers can participate in the live Q&A session by calling 877-497-9071, while international callers should use +1 201-689-8727 [1] Group 2 - For those unable to attend the live call, a taped replay and transcript will be available within 48 hours on Ball's website under "Financial Results" [2] - Ball Corporation reported net sales of $11.80 billion for 2024, excluding the divested aerospace business [2] - The company employs 16,000 people worldwide and provides innovative, sustainable aluminum packaging solutions for various sectors [2]

Core Viewpoint - Ball Corporation has established a joint venture with Ayna.AI to enhance the development of the Aluminum Cup category, aiming to expand its market presence and operational efficiency in sustainable packaging solutions [1][2][3]. Group 1: Joint Venture Details - The joint venture, named Oasis Venture Holdings, LLC, will focus on the Aluminum Cup business, incorporating commercial, supply chain, and manufacturing teams, with its headquarters located in Rome, Georgia [2]. - Ball Corporation holds a 49% stake in the joint venture, while Ayna.AI holds a 51% stake, indicating a strategic partnership aimed at leveraging Ayna's expertise in industrial technology [1][2]. Group 2: Strategic Importance - The partnership is seen as a natural progression for Ball Corporation, which has been expanding its product offerings since 2019 by introducing the Aluminum Cup to its portfolio, thereby creating a new category in aluminum packaging [3]. - Ayna.AI's experience in executing large-scale joint ventures is expected to provide operational guidance and strategic partnerships, enhancing the venture's potential for success [3][4]. Group 3: Market Potential - Both companies believe in the long-term potential of the Aluminum Cup to transform the market for single-use products and recycling, while also improving consumer experience [3]. - The joint venture aims to strengthen relationships with existing customers and suppliers, increase awareness and adoption of the Aluminum Cup, and enhance its value proposition across key market segments [3]. Group 4: Company Background - Ball Corporation is a leading provider of sustainable aluminum packaging solutions, employing 16,000 people globally and reporting net sales of $11.80 billion in 2024, excluding its divested aerospace business [5]. - Ayna.AI specializes in advisory and implementation within the industrial technology sector, utilizing an engaged operator model to optimize performance and drive growth [4].

Financial Performance - Ball Corporation's consolidated net sales for the year ended December 31, 2024, were $11.80 billion, a decrease from $12.06 billion in 2023, representing a decline of approximately 2.2%[241]. - The company recorded a net earnings of $4.01 billion for 2024, significantly up from $711 million in 2023, indicating a substantial increase of approximately 463.5%[245]. - Earnings per share (EPS) for basic continuing operations was $1.39 in 2024, down from $1.54 in 2023, reflecting a decrease of about 9.7%[245]. - The company's total comprehensive earnings for 2024 were $3.93 billion, compared to $474 million in 2023, marking an increase of approximately 728.5%[247]. - The effective tax provision for 2024 was $133 million, compared to $146 million in 2023, indicating a decrease of about 8.9%[245]. - The company reported a currency translation adjustment loss of $232 million in 2024, contrasting with a gain of $55 million in 2023[247]. - Ball Corporation's interest income increased to $68 million in 2024 from $36 million in 2023, representing an increase of approximately 88.9%[245]. - The company's business consolidation and other activities expenses rose to $420 million in 2024, up from $133 million in 2023, reflecting a significant increase of approximately 215.0%[245]. - Net earnings for 2024 reached $4,014 million, a significant increase from $711 million in 2023[250]. Segment Performance - Beverage packaging, North and Central America, accounted for 48% of consolidated net sales in 2024, with approximately 48 billion aluminum beverage containers shipped, representing 34% of the total shipments in the region[50][52]. - The beverage packaging, EMEA, segment contributed 29% to consolidated net sales in 2024, with 36 billion aluminum beverage containers shipped, capturing an estimated 39% of the market in that region[56]. - The beverage packaging, South America, segment represented 17% of consolidated net sales in 2024, with approximately 19 billion aluminum beverage containers shipped, accounting for 45% of South American shipments[59]. - Comparable segment operating earnings for beverage packaging in North and Central America increased to $747 million in 2024, up from $710 million in 2023[332]. Strategic Changes - The aerospace business was divested on February 16, 2024, and is now reported as discontinued operations, leading to a strategic shift in the company's financial reporting[49]. - The company completed the divestiture of its aerospace business for a pre-tax gain of $4.61 billion, with cash proceeds of $5.42 billion received at close[341]. - The company is expanding its operations in the personal & home care market through acquisitions, including the acquisition of Alucan Entec, S.A. in late-October 2024[64]. - The acquisition of Florida Can Manufacturing for $160 million is expected to enhance Ball's supply network in North and Central America[336]. - The company plans to form a strategic partnership for the aluminum cups business in early 2025, leading to its deconsolidation[337]. Risk Management - The company manages commodity price risk related to aluminum through sales contracts that include pass-through pricing and derivative instruments, estimating a $2 million after-tax reduction in net earnings from a hypothetical 10% adverse change in aluminum prices[220][221]. - A 100-basis point increase in interest rates is projected to result in an estimated $1 million after-tax reduction in net earnings over a one-year period[223]. - A hypothetical 10% reduction in currency exchange rates compared to the U.S. dollar would lead to an estimated $19 million after-tax reduction in net earnings[226]. Assets and Liabilities - Total current assets decreased slightly to $4,841 million in 2024 from $4,883 million in 2023[249]. - Total assets decreased to $17,628 million in 2024, down from $19,303 million in 2023[249]. - Total liabilities decreased to $11,698 million in 2024, compared to $15,466 million in 2023[249]. - Long-term debt decreased to $5,312 million in 2024 from $7,504 million in 2023[249]. - The company has obligations outstanding under supplier finance programs amounting to $423 million as of December 31, 2024, down from $703 million at the beginning of the period[319]. Taxation - The effective income tax rate on discontinued operations for 2024 was 23.1%, influenced by state and local taxes[344]. - The total income tax provision for 2024 was $133 million, a decrease from $146 million in 2023 and $138 million in 2022[384]. - The effective tax rate for 2024 was 24.9%, compared to 23.8% in 2023 and 19.4% in 2022[384]. - Ball Corporation has $2.64 billion of adjusted retained earnings in non-U.S. subsidiaries, with $933 million previously subjected to U.S. federal income tax[384]. - Net income tax payments in 2024 were $922 million, significantly higher than $179 million in 2023 and $143 million in 2022[387]. Accounting Practices - The company recognizes sales of packaging products when a customer obtains control, either over time or at a point in time[269]. - The company assesses the fair value of reporting units using market and income approach methodologies, incorporating assumptions related to WACC and growth rates[264]. - The company performs an annual qualitative analysis of goodwill recoverability, with a quantitative impairment test if necessary[263]. - The company recognizes long-lived assets for impairment when future cash flows indicate the carrying amount may not be recoverable[265]. - The company uses the purchase method of accounting for acquisitions, recording assets and liabilities at their estimated fair values, with any excess purchase price recognized as goodwill[295].

Core Viewpoint - Ball Corporation, a leader in sustainable aluminum packaging, will present at the Bank of America 2025 Global Agriculture and Materials Conference on February 26, 2025 [1]. Company Overview - Ball Corporation specializes in innovative and sustainable aluminum packaging solutions for beverages, personal care, and household products [3]. - The company employs 16,000 people globally and reported net sales of $11.80 billion for 2024, excluding its divested aerospace business [3]. Event Details - Daniel W. Fisher, chairman and CEO, and Howard H. Yu, executive vice president and CFO, are scheduled to speak at 7:30 am Eastern Time [2]. - A live webcast of the presentation will be available, with a replay accessible for 90 days post-event [2].

Financial Performance - Full-year 2024 net earnings attributable to Ball Corporation were $4.01 billion, with diluted earnings per share of $13.00 on sales of $11.80 billion, compared to $707 million net earnings and diluted earnings per share of $2.23 on sales of $12.06 billion in 2023[4]. - Fourth quarter 2024 net loss attributable to the corporation was $32 million, or a diluted loss per share of 11 cents, on sales of $2.88 billion, compared to net earnings of $154 million and diluted earnings per share of 49 cents on sales of $2.90 billion in Q4 2023[5]. - Full-year 2024 comparable net earnings were $977 million, or $3.17 per diluted share, compared to $920 million, or $2.90 per diluted share in 2023[4]. - Net earnings for the year ended December 31, 2024, were $4,014 million, a significant increase from $711 million in 2023[28]. - Comparable Net Earnings for Q4 2024 were $250 million, up from $246 million in Q4 2023, with Comparable Diluted Earnings Per Share increasing to $0.84 from $0.78[53]. - Comparable Operating Earnings for the year ended December 31, 2024, were $1,472 million, an increase from $1,342 million in 2023[55]. Shareholder Returns - Ball returned $1.96 billion to shareholders in 2024 through share repurchases and dividends[8]. Segment Performance - Beverage packaging segment in North and Central America reported full-year comparable operating earnings of $747 million on sales of $5.62 billion, compared to $710 million on sales of $5.96 billion in 2023[9]. - Beverage packaging segment in EMEA achieved full-year comparable operating earnings of $416 million on sales of $3.47 billion, up from $354 million on sales of $3.40 billion in 2023[12]. - Full-year segment volume for North and Central America decreased by low-single digits, while fourth quarter volume decreased by mid-single digits[11]. - Comparable segment operating earnings for Beverage packaging, North and Central America were $747 million for the year, up from $710 million in 2023[43]. Cash Flow and Assets - Cash provided by operating activities decreased to $115 million in 2024 from $1,863 million in 2023[28]. - Cash provided by investing activities was $5,003 million in 2024, compared to a cash used of $1,053 million in 2023, largely due to the business dispositions[28]. - Total assets decreased to $17,628 million in 2024 from $19,303 million in 2023, primarily due to the divestiture of the aerospace business[30]. - Total current liabilities decreased to $4,847 million in 2024 from $6,185 million in 2023, reflecting improved financial management[30]. - Free Cash Flow for the year ended December 31, 2024, was $(369) million, while Adjusted Free Cash Flow was $397 million after accounting for cash taxes paid related to the Aerospace disposition[56]. Strategic Initiatives - The company is positioned to grow comparable diluted earnings per share by over 10% in 2025 and beyond, while generating strong free cash flow and increasing economic value added (EVA)[8]. - In the fourth quarter of 2024, Ball's Board of Directors approved pursuing alternatives for the aluminum cup business, including a potential strategic partnership in early 2025[18]. - The company plans to leverage its Ball Business System and operational talent to consistently deliver high-quality results and returns[21]. Divestitures and Impairments - The divestiture of the aerospace business was completed for a purchase price of $5.6 billion, resulting in a pre-tax gain of $4.61 billion after adjustments[40]. - The company expects to pay approximately $875 million in income taxes related to the aerospace divestiture, with $766 million already paid as of December 31, 2024[42]. - The company recorded a noncash impairment charge of $233 million related to the aluminum cups business in Q4 2024[37]. - The pre-tax gain from the sale of the aerospace business was adjusted during Q4 2024, impacting the overall financial results[54]. Debt and Financial Ratios - Total debt at the end of 2024 was $5,673 million, with Net Debt standing at $4,788 million[56]. - Comparable EBITDA for the year ended December 31, 2024, was $1,944 million, with Interest Coverage at 6.63x and Leverage at 2.46x[56].

Core Points - Ball Corporation's board declared a cash dividend of 20 cents per share, payable on March 17, 2025, to shareholders of record as of March 3, 2025 [1] - The board authorized a share repurchase of up to $4 billion, replacing all previous authorizations, to enhance the ongoing multi-year return of capital to shareholders [1][2] Financial Performance - Ball Corporation reported net sales of $12.06 billion for 2023, excluding the divested aerospace business [4] Upcoming Events - The company will hold its fourth quarter 2024 earnings call on February 4, 2025, at 9 a.m. Mountain time [3]