Ball Corporation Q2 FY2025 earnings call

Introduction

• CEO Dan Fisher started by noting strong second quarter results, having returned $1.13 billion to shareholders via share repurchases and dividends. Aluminum packaging is outperforming other substrates. Monitors tariffs and consumer pressures, confident in managing challenges to deliver 12%-15% comparable diluted EPS growth.

Key Metrics from CFO

• Dan Rabbitt discussed year-end 2025 net debt to comparable EBITDA around 2.75x, plans to repurchase at least $1.3 billion of shares in 2025 (already purchased $1 billion year-to-date), CapEx expected slightly below D&A at ~$600 million, effective tax rate on comparable earnings expected slightly above 22%, and commitment to operational excellence and disciplined cost control across global footprint.

North and Central America: Strong volume performance in nonalcoholic beverages like energy drinks, but faced product mix and cost to serve headwinds. Second quarter comparable diluted earnings per share was $0.90 vs $0.74 in 2024, up 22%. EMEA: Segment volume remained robust, comparable operating earnings increased 14%. South America: Segment comparable operating earnings increased 38%, supported by strong volume in Argentina and Chile; Brazil market below initial expectations but expected to recover in H2. Global Beverage Cans: Shipments up 4.3% year-over-year in Q2 2025.

Volume Growth

• Anticipate 2025 global volume growth above long-term 2%-3% range. EMEA: mid-single-digit volume growth. South America: volume above 4%-6% long-term range. North America: volume near top end of 1%-3% long-term range. ### EPS Growth
• Target 12%-15% comparable diluted EPS growth for 2025. ### Share Repurchases
• Plan to repurchase at least $1.3 billion of shares in 2025, with $1 billion already purchased year-to-date.

• Uncertainties related to tariffs and consumer pressures, particularly in the U.S.
• Impact of geopolitical landscape on business operations
• Operational inefficiencies due to higher-than-expected growth in some categories
• Dependence on key customers and potential disruptions in supply chain

Q: Could you give more color on what's driving outperformance in nonalcohol categories in North America and Central America and why margins were down?

A: Strong growth in energy drinks, multipack purchases connected to promotions, inefficiencies in service model, mix related to tariffs Q: How have conversations with customers gone regarding tariffs and hedging strategies for 2026?

A: Conversations about tariffs and hedging will become clearer closer to 2026; not worried about pricing dynamics constraining volume currently Q: Impact of One Big Beautiful Bill on the business?

A: Doesn't think it will change trajectory much, benefits from accelerated depreciation but EBITDA limit is a factor Q: Outlook for Brazil's market performance in the back half of 2025?

A: Confident due to concentration with a key customer who has plans to grow, and leadership in Argentina on the right trajectory Q: Status of volume contracts for 2026 and 2027?

A: 2026 North America volumes slightly north of 90% under contract; 2027 North America ~75% under contract with a big partner contract due