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Ball (BALL) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 4, 2026

Source: earnings call transcript

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

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

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——

Orderbook & backlog

Contracted capacity more than 50% sold out Q2 FY26

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

Deals & partnerships

Benepack Acquisition 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 business Sale of the Saudi Arabian business.

The divestiture occurred in the prior year.

Capital programs

Millersburg facility ramp-up on 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

North America start-up costs FY26

$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 tightness Current, 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 friction Q2 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 prices Ongoing

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

Millersburg facility ramp-up

Next quarter / H2 FY26
Current Making commercial cans as of last month
Target Progress 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.

Find out whether BALL delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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 impacts. 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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.