Ball tops Q3 revenue estimate, profit in line with forecasts

Ball (BALL) said on Nov. 3 that third-quarter revenue rose to $4.19 billion, above the $3.86 billion consensus estimate, while comparable earnings per share of $1.10 were in line with the $1.09 consensus estimate, both compiled by Finnhub.

On a U.S. GAAP basis, the company posted a net loss of $94 million, or 36 cents per share. A year earlier it had net earnings of $321 million, or $1.18 per share.

The swing came mainly from a $482 million charge for business consolidation and other activities. That charge was primarily a $475 million noncash settlement charge tied to a pension buy-out for the company’s U.K. defined benefit pension plan, plus costs for previously announced facility closures.

The company partly offset the charge by reversing previously accrued tariff contingencies, after a favorable final ruling from the U.S. Department of Commerce.

Here's how the company did:

• Revenue: $4.19 billion vs. $3.38 billion a year earlier, above the $3.86 billion consensus estimate
• Comparable diluted EPS: $1.10 vs. $1.03 a year earlier, in line with the $1.09 consensus estimate
• Comparable operating earnings: $451 million vs. $440 million a year earlier
• GAAP diluted EPS: loss of 36 cents vs. earnings of $1.18 a year earlier

Comparable operating earnings rose 2.5% to $451 million, and comparable diluted EPS rose 6.8%. Global aluminum packaging shipments increased 4.7% in the quarter.

Ball Chief Executive Officer Ron Lewis said, “Ball delivered another quarter of strong results, reflecting the power of our customer-focused strategy, disciplined execution and the ownership mindset embedded throughout our organization.”

Segment results

Beverage packaging, North and Central America, earned $210 million on sales of $2.06 billion, compared with $215 million on $1.64 billion a year earlier. Higher costs, mainly operating costs and plant start-up costs, were partly offset by favorable price/mix and higher volume.

Beverage packaging, EMEA, earned $170 million on sales of $1.33 billion, compared with $164 million on $1.13 billion. Its results include the Benepack business, which the company acquired in January 2026 from ORG Technology Co. Ltd.

ORG keeps a 20 percent ownership interest in that business, which has two plants, in Belgium and Hungary.

Beverage packaging, South America, earned $92 million on sales of $653 million, up from $77 million on $508 million. Higher volumes and favorable price/mix drove the gain, and volume rose by a low-double-digit percentage.

2026 outlook

The company expects comparable diluted EPS growth of 10-plus percent in 2026, and free cash flow in the range of $900 million.

It said it remains on track to deliver its long-term objective of 4 to 6 percent operating earnings growth.

Senior Vice President and Chief Financial Officer Dan Rabbitt said, “Our third quarter results reflect disciplined execution across the business, supported by global volume growth, operational performance and the stability provided by our contractual passthrough mechanisms.”

The company is investing in a new beverage can plant in Baruth, Germany, to support customer growth in Europe, the Middle East and Africa. It also announced a new beverage can plant in India.

Cash and capital returns

Ball returned $431 million to shareholders through share repurchases and dividends in the first nine months of 2026. It said it is on track to return at least $800 million by year-end, the target it set in its Aug. 4 results release.

For the first nine months, operating cash flow was $20 million and capital expenditures were $459 million. That left free cash flow at negative $439 million, according to the company’s financial tables.

Net debt stood at $6.87 billion at the end of the quarter, or 3.21 times comparable EBITDA, or earnings before interest, taxes, depreciation and amortization.