Ball Corporation Q4 FY2025 earnings call

• Ron Lewis introduces his background and the company's vision, emphasizing hard work, teamwork, and sustainability. Discusses 2025 financial performance, including record adjusted free cash flow and EPS. Mentions acquisition of Benepack beverage can facilities.
• Daniel Rabbitt walks through financial results, talks about segment performances, volume growth expectations for 2026, and capital allocation plans.

North and Central America: Fourth quarter comparable operating earnings increased 12%, full year 2025 increased by 3.3%. High single-digit percent volume growth in Q4 and 4.8% growth for the full year 2025 led by energy drinks and nonalcoholic beverages. EMEA: Fourth quarter segment comparable operating earnings increased 36.7%, full year 2025 increased by 19%. High single-digit volume growth in Q4 and 5.5% growth for the full year. South America: Fourth quarter segment comparable operating earnings increased 1%, full year 2025 increased by 10.5%. High single-digit percent volume growth in Q4 resulted in 4.2% growth in the full year 2025.

• Expect 10-plus percent comparable diluted EPS growth in 2026.
• Anticipate free cash flow >$900 million in 2026.
• Effective tax rate on comparable earnings expected slightly above 23% in 2026.
• Interest expense expected ~$320 million in 2026.
• CapEx in line with GAAP depreciation and amortization in 2026.
• Net debt to comparable EBITDA expected ~2.7x by year-end 2026.
• Plan to purchase at least $600 million of shares in 2026.

• Geopolitical landscape and tariff developments could impact business.
• Start-up costs for new plants and potential tariff costs in 2026.

Q: For the beverage North America and Central America segment, how to disaggregate volume growth improvement?

A: Ron Lewis attributes it to unrivaled customer network and helping customers win with innovation.

Q: Talk about Benepack and European footprint?

A: Ron Lewis discusses adding Benepack facilities in Belgium and Hungary, optimizing network, and EVA benefits.

Q: Natural gas prices in Europe?

A: Ron Lewis says they can pass through costs and hedge gas pricing.