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    BALL
    Earnings call· Jun 2026(Q2 FY26)

    BALL Q2 FY26 earnings call BALL

    Aug 4, 2026 Source

    Executive summary

    Ball Corporation Q2 FY26 — Strong EPS Growth and Volume Momentum

    Ball Corporation delivered strong second-quarter results, driven by global volume growth and disciplined execution across its operations. The company reaffirmed its full-year comparable diluted EPS growth target of 10-plus percent and free cash flow guidance of over $900 million. Despite facing tight capacity in North America and associated start-up costs, Ball is progressing with strategic investments like the Millersburg facility and Benepack integration, while maintaining its commitment to significant capital returns to shareholders.

    Highlights

    5

    • Global volumes improved 4.3% year-over-year, with growth across all regions, reflecting continued momentum.

    • Comparable operating earnings grew 7.7% year-over-year, supported by disciplined cost management and commercial performance.

    • Comparable diluted EPS increased 14.4% year-over-year, driven by operating performance and capital allocation tailwinds.

    • The company remains on track to return approximately $800 million to shareholders in 2026.

    • The Millersburg facility is now making commercial cans and is on track for full ramp-up in 2027.

    Concerns

    3

    • North and Central America segment comparable operating earnings declined 2.4% year-over-year due to higher costs, including approximately $5 million in start-up costs.

    • North America capacity remains "notably tight" due to high utilization rates and the ongoing ramp-up of new facilities.

    • Full year start-up costs for the Millersburg facility are expected to total approximately $35 million, with roughly $30 million anticipated in the second half of 2026.

    Guidance & targets

    17
    CategoryTargetConfidence
    Comparable diluted EPS growth
    10-plus percent
    high materiality
    High
    Free cash flow
    greater than $900 million
    high materiality
    High
    Capital return to shareholders
    approximately $800 million
    high materiality
    High
    Global volume growth
    2% to 3% range, probably 3%
    medium materiality
    Medium
    North and Central America volume growth
    low end of 1% to 3% range
    medium materiality
    High
    Millersburg start-up costs
    approximately $35 million
    medium materiality
    High
    EMEA volume growth
    above the top end of 3% to 5% range
    medium materiality
    High
    South America volume growth
    low end of 4% to 6% range
    medium materiality
    High
    Effective tax rate on comparable earnings
    slightly above 23%
    medium materiality
    High
    Interest expense
    $310 million
    medium materiality
    High
    CapEx
    in line with GAAP D&A
    medium materiality
    High
    Adjusted corporate undistributed costs
    $175 million
    medium materiality
    High
    Net debt to comparable EBITDA
    around 2.7x
    high materiality
    High
    Share repurchases
    at least $600 million
    high materiality
    High
    Millersburg facility full ramp-up
    full ramp-up
    medium materiality
    High
    Benepack integration
    fully ramped and operational
    medium materiality
    High
    South America volume growth
    4% to 6%
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    North and Central America
    Comparable operating earnings declined due to higher costs, including approximately $5 million in start-up costs, partially offset by favorable price mix and metal pass-through timing.
    Demand remained constructive in energy drinks and nonalcoholic beverages.
    		—low single digits—declined 2.4% year-over-year
    EMEA
    Volume growth supported by underlying demand and Benepack contribution, partially offset by the prior year's Saudi Arabian business sale. Operating earnings increased reflecting higher volume and favorable price mix, partially offset by higher costs.
    		—mid-single digits—increased 6.6% year-over-year
    South America
    Volume growth driven by moving past Q1 customer timing and inventory impacts. Operating earnings increased significantly due to higher volumes and favorable price/mix.
    		—mid-teens—increased 64% year-over-year
    Other Nonreportable (Personal Home Care)
    Consistently accretive to overall volume and operating earnings growth. This business often grows at higher rates than the beverage can business.
    		—high single digits——

    Operational metrics

    14
    Global volume growth
    4.3%year-over-year
    Q2 FY26

    Growth observed across each region.

    Comparable operating earnings growth
    7.7%year-over-year
    Q2 FY26

    Supported by disciplined cost management and commercial performance.

    Comparable diluted EPS growth
    14.4%year-over-year
    Q2 FY26

    Reflecting operating earnings performance and capital allocation.

    Millersburg start-up costs
    $5 million
    Q2 FY26

    Part of the higher costs impacting segment operating earnings.

    Millersburg start-up costs
    $35 million
    FY26

    Total expected for the full year 2026.

    Share repurchases executed
    $100 million
    H1 FY26

    Part of the planned capital return, with the majority expected in H2 due to free cash flow timing.

    Global volume growth
    4%
    FY25

    Volume growth for the full year 2025.

    Global volume growth
    4%+
    Q2 FY25

    Volume growth in the comparable prior year quarter.

    North America beverage market trend
    relatively flat
    last year

    Overall market trend, while the can segment grows.

    Can market share gain
    2% to 3%
    last year

    Can continues to take share from other substrates.

    Other substrates decline
    2% to 3%
    last year

    Decline in other packaging types.

    Can penetration rates
    lowervs other regions
    current

    Indicates significant growth opportunity.

    Can filling capacity investment
    morevs other regions
    current

    Indicates strong market development.

    Can growth
    more than teens
    for a while

    Strong growth driven by governmental changes and market opportunity.

    Industry KPIs

    6
    MetricValueDetails
    Dividendsquarterly cash dividend declared
    Share buybackat least $600 millionUSD
    Net debt leveragearound 2.7x
    CAPEX capital programin line with GAAP D&A
    Volume production growth4.3%%
    End market demand driversconstructive

    Orderbook & backlog

    1
    Contracted capacitymore than 50% sold outQ2 FY26

    Refers to capacity utilization through the end of the decade, not a traditional order book.

    Deals & partnerships

    2
    BenepackAcquisition of two facilities (Hungary and Belgium) to expand EMEA capacity.

    The acquisition is aimed at expanding EMEA capacity and is currently undergoing integration and ramp-up.

    Saudi Arabian businessSale of the Saudi Arabian business.

    The divestiture occurred in the prior year.

    Capital programs

    2
    Millersburg facility ramp-upon track

    Benefit: one-line plant, standard-sized cans

    The facility is now making commercial cans as of last month and is expected to be fully ramped up in 2027, providing full value. It will not cause a mix shift as it produces standard cans.

    Benepack integration (Hungary and Belgium facilities)making progress

    Benefit: expanded EMEA capacity

    Integration of the acquired facilities is progressing, with the goal of getting them fully ramped up and operational as part of the network by 2027. The Hungary plant is considered a new start-up, and the Belgium plant is being ramped to 24/7 operations.

    Risks & headwinds

    4
    North America start-up costsFY26

    $35 million for FY26, with $30 million in H2 FY26

    Mitigation: Millersburg facility ramp-up to full production in 2027 will alleviate these costs and provide capacity.

    North America capacity tightnessCurrent, until Millersburg fully ramps

    Not quantified, described as "notably tight"

    Mitigation: Bringing the new Millersburg plant online and integrating it into the network to relieve pressure and support customers.

    Operational frictionQ2 FY26, ongoing until capacity eases

    Not quantified, described as impacting planning, scheduling, labor, freight, maintenance

    Mitigation: Investing for growth (Millersburg, Benepack) and continuous debottlenecking efforts within existing plants.

    Elevated aluminum pricesOngoing

    Not quantified, described as affecting end consumer demand and customers

    Mitigation: While a pass-through model is in place, the company encourages investments in smelting and rolling to lower aluminum prices.

    What to watch in Q3 FY26

    5

    Millersburg facility ramp-up

    Next quarter / H2 FY26
    CurrentMaking commercial cans as of last month
    TargetProgress towards full operational status and contribution to North America capacity

    Why it matters

    Successful ramp-up is crucial for alleviating tight North America capacity and improving operating leverage.

    What I will say is really great news for us is our plant in Millersburg is now making commercial cans as of last month, and we're looking forward to ramping that up, and you should expect to see the full benefit of that in 2027.

    Q&A highlights

    10

    How did flagship events like America 250 and the World Cup impact North America volumes, given the tight capacity?

    The company was notably tight on capacity, so these events did not lead to meaningful growth in North America. However, they reinforced confidence in future demand. The Millersburg plant ramp-up is critical to relieve pressure.

    “We said coming into the year in North America that we were running notably tight and that certainly is the case. And so we didn't see any really meaningful growth in North America due to America 250 or World Cup.”

    asked by Ghansham Panjabi · answered by Ron Lewis

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Pillars and Ball Business System

    Ball's strategy is grounded in four pillars: executing in the core business, maximizing the global network and customer partnerships, accelerating the substrate shift to aluminum, and managing complexity. The Ball Business System (BBS) connects these priorities, standardizing best practices, improving productivity, and driving continuous improvement. This system, combined with an EVA-guided capital allocation approach, aims to deliver consistent operational results and long-term shareholder value.

    02

    North America Capacity and Millersburg Ramp-up

    The North and Central America segment experienced low single-digit volume growth, consistent with expectations, but comparable operating earnings declined due to approximately $5 million in start-up costs and operational friction from tight capacity. The Millersburg facility, which began making commercial cans last month, is crucial for relieving this pressure and is on track for full ramp-up in 2027. Total start-up costs for Millersburg are projected at $35 million for FY26, with $30 million expected in the second half.

    03

    EMEA and Benepack Integration

    EMEA volumes increased mid-single digits year-over-year, supported by underlying demand and the contribution from the Benepack acquisition, partially offset by the prior year's Saudi Arabian business sale. Segment comparable operating earnings grew 6.6%. The integration of Benepack's Hungary and Belgium facilities is progressing, with expectations for full ramp-up and operational contribution in 2027, driving EMEA volume growth above the long-term 3% to 5% range for FY26.

    04

    South America Outperformance and Market Dynamics

    South America delivered strong mid-teens volume growth and a 64% increase in comparable operating earnings, recovering from Q1 customer timing impact📎s. This performance was driven by higher volumes and favorable price/mix, benefiting from a healthy can market and a privileged customer portfolio, particularly during the World Cup. The company expects full-year volume growth at the low end of its 4% to 6% long-term range, with confidence in achieving this target.

    05

    Capital Allocation and Shareholder Returns

    Ball remains committed to its capital allocation strategy, targeting over $900 million in free cash flow and approximately $800 million in total capital returns to shareholders for 2026. This includes at least $600 million in share repurchases, with $100 million already executed in the first half. The company aims for a year-end 2026 net debt to comparable EBITDA ratio of around 2.7x, reflecting a disciplined approach to financial management.

    06

    Can Market Strength and Substrate Shift

    The aluminum can continues to gain market share globally, driven by consumer preference for convenience, performance, and sustainability. In North America, the overall beverage market is relatively flat, but the can is growing by 2% to 3% annually, taking share from other substrates. New product launches increasingly favor cans, and regions like Europe and India present significant growth opportunities due to lower can penetration rates and strong sustainability tailwinds.

    AI-generated summary of the company’s earnings call. Not investment advice.