Ball Corporation Q2 FY2026 earnings call

• Industry and Company Fundamentals • Global packaged liquid volume continues to grow, and aluminum cans are gaining market share driven by consumer, customer, and retailer preference for convenience, performance, and sustainability, creating durable long-term demand for Ball's products • Ball holds competitive advantages including long-term customer partnerships, a well-contracted product portfolio, disciplined capacity management, and an unmatched global footprint that supports strong utilization and consistent commercial performance • The company maintains financial discipline, a healthy balance sheet, and an EVA-aligned capital allocation framework focused on high-return investments and returning capital to shareholders

• Strategic Pillars • Execute consistently in the core business via strong customer service, cost management, and ongoing operational consistency improvements across all plants and regions • Leverage close customer relationships and the strength of Ball's global network to respond quickly and reliably to shifting demand • Accelerate the industry-wide substrate shift to aluminum and expand into high-priority growth categories, leveraging aluminum's sustainability and performance advantages • Manage operational complexity via scale, process standardization, and the Ball Business System to deliver more consistent, repeatable performance over time

• Operational Progress • The Ball Business System drives continuous improvement by standardizing best practices, increasing productivity, and reducing organizational complexity • Integration of the acquired BenePak facilities in Hungary and Belgium remains on track for full ramp-up by 2027 • The new Millersburg, Oregon facility in North America started commercial production in June 2026 and remains on schedule for full ramp-up in 2027, with pre-production startup costs tracking to plan

1. North and Central America: Volume grew low single digits year-over-year, in line with full-year expectations for the low end of the 1-3% long-term growth range. Segment comparable operating earnings declined 2.4% year-over-year, as $5 million in Millersburg plant startup costs and higher overall costs were partially offset by favorable price/mix. This segment contributed ~35-40% of total operating earnings based on overall company growth, though specific revenue contribution percentages were not disclosed.
2. EMEA: Volume grew mid-single digits year-over-year, with growth supported by underlying demand and the BenePak acquisition, partially offset by the prior-year sale of the Saudi Arabian business. For the full year 2026, with BenePak included, the segment is on track to exceed the top end of its 3-5% long-term volume growth range. Segment comparable operating earnings increased 6.6% year-over-year, driven by higher volumes and favorable price mix, partially offset by higher integration and input costs.
3. South America: Volume grew mid-teens year-over-year, after recovering from first-quarter customer timing and inventory impacts. Full-year 2026 volume is expected to land at the low end of the segment's 4-6% long-term growth range. Segment comparable operating earnings increased 64% year-over-year, driven by higher volumes and favorable price mix. Overall company global beverage can volumes grew 4.3% year-over-year in Q2 2026, with comparable operating earnings up 7.7% year-over-year and comparable diluted EPS up 14.4% year-over-year.

• Full-year 2026 comparable diluted EPS growth guidance is maintained at 10%+

• Operational friction across high-utilization, capacity-constrained networks in North America and EMEA has created short-term pressures on labor, scheduling, freight, and maintenance costs, limiting near-term operating leverage in these segments

Q: How did summer flagship events (America 250, World Cup) impact North American volumes, and what was underlying organic volume growth in EMEA Q2 2026? / A: Capacity is tight in North America due to the ongoing Millersburg plant ramp-up, so the events did not generate material incremental volume growth, but they confirmed healthy underlying demand, and the company served all customers to the best of its ability. For EMEA, legacy organic operations delivered mid-single digit volume growth in line with long-term expectations; BenePak acquisition volumes offset the loss of the Saudi Arabian business, leaving overall segment growth aligned with prior guidance.

Q: Why was operating leverage lower than expected in North America and EMEA despite strong volume growth, and were there unplanned integration costs for BenePak in Q2? / A: Both regions were capacity constrained heading into Q2, and stronger-than-expected volume demand created network stress and operational friction that limited near-term operating leverage. Startup and ramp-up costs for BenePak and Millersburg were exactly in line with prior guidance; there were no unplanned costs, and the overall company delivered 7.7% operating earnings growth which is a strong core result.

Q: What is driving North American can volume growth, and when will all Millersburg and BenePak startup costs be recorded? / A: Most North American can volume growth continues to come from substrate shift: the overall beverage market is flat, while cans gain 2-3% share annually as new product innovations increasingly launch in cans. All $35 million in total 2026 Millersburg startup costs will be recorded by the end of 2026; $5 million was recognized in Q2, with the remaining $30 million in the second half of 2026, and no additional startup costs are expected for the project in 2027.

Q: What is the cadence of planned 2026 share repurchases, and what is Ball's outlook for 2027 volume growth after capacity additions? / A: Full-year 2026 share repurchase guidance of $600 million (for $800 million total shareholder return including dividends) is maintained. Only ~$100 million in repurchases were completed in the first half, with the remaining ~$500 million expected in the second half, aligned with the typical backloaded seasonal pattern of Ball's free cash flow. For 2027, Ball maintains a long-term 2-3% global volume growth outlook, with full capacity contributions from Millersburg and BenePak expected throughout the year.