Ball Corporation

Ball reported second-quarter 2026 global shipped beverage can volumes up 4.3% year over year. Comparable operating earnings increased 7.7% year over year, and comparable diluted EPS increased 14.4%. In North and Central America, volumes increased low single digits while segment comparable operating earnings declined 2.4%; in EMEA, volumes increased mid-single digits and operating earnings rose 6.6%; in South America, volumes increased mid-teens and operating earnings rose 64%. For full-year 2026, management still expects 10%+ comparable diluted EPS growth, free cash flow greater than $900 million, a tax rate slightly above 23%, interest expense around $310 million, CapEx in line with GAAP D&A, reported adjusted corporate undistributed costs around $175 million, and net debt to comparable EBITDA around 2.7x. The company expects to repurchase at least $600 million of shares and return about $800 million to shareholders in 2026.

Ron Lewis emphasized that Ball’s long-term thesis remains intact: packaged beverage volume is growing globally and aluminum cans continue to gain share on convenience, performance and sustainability. He framed the quarter as evidence that Ball’s strategy is working, citing disciplined execution, customer partnerships, the Ball Business System and EVA-based capital allocation. His tone was confident but pragmatic, repeatedly noting that the company is still running tight on capacity in North America and parts of EMEA while new plants ramp.

Dan Rabbitt focused on the numbers and reaffirmed the 2026 model. He highlighted 4.3% volume growth, 7.7% comparable operating earnings growth and 14.4% comparable diluted EPS growth, then reiterated full-year free cash flow above $900 million, interest expense around $310 million, and net debt to comparable EBITDA around 2.7x. He also said about $5 million of the expected $35 million in Millersburg start-up costs hit in the first half, with roughly $30 million expected in the second half, and noted Ball had done about $100 million of share repurchases in the first half while still targeting around $600 million for the year.

Analysts pressed on North America’s weak operating leverage despite volume growth, and management said high utilization and start-up costs created operational friction, but that this was the result of strong demand in a tightly constrained network. Questions also focused on Europe/Benepack, where management said the acquired plants are still ramping and not yet accretive, and on South America, where Ron Lewis said World Cup-related demand was helpful but not something he wanted to quantify. Other questions covered category mix, tariff/Section 232 changes, 2027 volume implications, and capital returns; management repeatedly declined to give quarterly 2027 guidance but said Millersburg should contribute its full value beginning sometime in the first quarter and that there are no expected start-up costs in 2027.