BALL Corp Q1 FY2025 earnings call

• Employees volunteered over 640 hours in global volunteer month across 11 countries in April. - Delivered strong first quarter results and returned $708 million to shareholders via share repurchases and dividends. - Aluminum packaging outperforms other substrates globally. - Confident in managing uncertainties related to tariffs and consumer pressures. - Focused on achieving 11% to 14% comparable diluted earnings per share growth in 2025. - Anticipate global volume growth in the 2% to 3% range, with EMEA expecting mid-single digit volume growth, South America volume growth above 4% to 6% range, and North America non-alcoholic categories offsetting mass beer pressures. - Announced formation of Oasis Venture Holdings for the aluminum cup business.

In the first quarter of 2025, Ball Corporation's segments showed varied performances. In EMEA, first quarter volume remained strong with customers shifting to aluminum cans. South America saw volume growth ahead of expectations, driven by positive performance in regions like Argentina, Chile, and expected growth in Brazil. North America's volume returned to growth despite tough comparisons and economic pressures, with non-alcoholic categories outperforming mass beer. For cups, the company announced the formation of Oasis Venture Holdings, a strategic partnership as the minority partner. Comparable diluted earnings per share in Q1 2025 was $0.76, up 12% from $0.68 in Q1 2024, with comparable net earnings at $216 million.

• Anticipate 11% to 14% comparable diluted earnings per share growth in 2025. - Expect global volume growth in the 2% to 3% range. - EMEA to have mid-single digit volume growth in 2025. - South America volume growth above 4% to 6% long-term range in 2025. - North America non-alcoholic categories to offset mass beer pressures. - Board declared quarterly cash dividend; expect year-end 2025 net debt to comparable EBITDA to be 2.75x; repurchase at least $1.3 billion worth of shares in 2025; 2025 CapEx expected slightly below D&A in range of $600 million.

• Ongoing uncertainties related to tariffs and consumer pressures, particularly in the U.S. - Volatility in emerging markets and broader geopolitical developments.

Q: Ghansham Panjabi asked about Europe's supply position, utilization, and pull forward ahead of tariffs.

A: Dan Fisher responded there was minimal pull forward, investments in Europe, and a positive growth trajectory for Europe.

Q: Stefan Diaz inquired about tariffs impact on Mexico beer and SNAP cuts.

A: Dan Fisher said there was minimal tariff impact, no significant volume change, and non-alcoholic beverages were reformulating.

Q: Anthony Pettinari asked about North America's promotional environment and Florida Can update.

A: Dan Fisher discussed non-alcoholic innovation, beer peak season plans, and Florida Can integration.

Q: Phil Ng asked about North America's summer season and Europe pricing.

A: Dan Fisher talked about North America volume outlook, Europe margin focus, and North America capacity.

Q: Edlain Rodriguez asked if EPS growth could be achieved if volume fell short.

A: Dan Fisher was confident in navigating uncertainties, mentioned currency tailwinds, and team execution.

Q: George Staphos asked about initiatives, pre buy, and beer marketing.

A: Dan Fisher spoke about Ball Business Systems, minimal pre buy impact, and brewer marketing efforts.

Q: Jeffrey Zekauskas asked about CapEx and inventories.

A: Howard Yu said CapEx would ramp up later, and inventories were seasonal.

Q: Michael Roxland asked about North America margin sustainability and specialty cans.

A: Dan Fisher discussed margin sustainability, specialty can growth, and affordability lens.

Q: Chris Parkinson asked about Latin America trends and Europe supply demand.

A: Dan Fisher talked about Latin America recovery, Europe substrate shift, and capital discipline.

Q: Arun Viswanathan asked about price mix and Florida Can visibility.

A: Dan Fisher spoke about price mix contribution, Florida Can integration, and volume confidence.