BALL's Q4 Earnings Beat Estimates, Sales Up Y/Y on Higher Volumes

Ball Corporation BALL reported fourth-quarter 2025 adjusted earnings per share (EPS) of 91 cents, beating the Zacks Consensus Estimate of 90 cents. The bottom line improved 8% year over year as higher volumes and favorable price/mix across all segments offset the impact of higher costs.

On a reported basis, the company’s EPS from continuing operations was 74 cents against the prior-year quarter’s loss of one cent.

Total sales were $3.35 billion in the reported quarter compared with $2.88 billion in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $3.11 billion. Global aluminum packaging shipments were up 4.1% year over year.

Ball Corp.’s Q4 Margins Dip on Higher Costs 

The cost of sales was $2.7 billion, up 17.9% from the year-ago quarter. The gross profit totaled $648 million, up 9.6% from the year-ago quarter’s $591 million. The gross margin was 19.4%, a contraction from the prior-year quarter’s 20.5%.

Selling, general and administrative expenses rose 16% year over year to $150 million. Comparable segment operating earnings were $409 million, 14% higher than the prior-year quarter’s $358 million. Segment operating margin was 12.2% compared with 12.4% in the year-ago quarter.

BALL’s Segment Performances in Q4

The Beverage Packaging North and Central America segment’s revenues increased 22% year over year to $1.57 billion in the fourth quarter on higher volume and price/mix. We projected sales of $1.34 billion. Operating earnings amounted to $159 million, up 12% year over year. Higher volume and favorable price/mix helped offset the impact of higher costs. Our estimate for the segment's operating earnings was $194 million.

Sales in the Beverage Packaging EMEA segment were $971 million, up 17.6% year over year. The reported figure beat our estimate of $839 million. The upside was driven by higher volume and favorable currency impact. Operating earnings were $123 million, marking 36.7% year-over-year growth. Gains from increased volume and favorable currency translation partially offset higher costs. The figure came in line with our projected figure of $123 million.

The Beverage Packaging South America segment’s revenues rose 12% year over year to $633 million, driven by higher volumes as well as favorable price/mix. Our projection for the segment’s sales was $610 million. Operating earnings rose 0.8% to $127 million as higher volume and favorable price/mix were partially negated by higher costs. The reported figure beat our estimate of $71.7 million.

Ball Corp.'s Cash Flow & Debt Position

The company reported cash and cash equivalents of $1.2 billion at the end of 2025, up from $0.9 billion at the end of 2024. Cash generated from operating activities amounted to $1.26 billion in 2025 compared with $0.1 billion reported in 2024. Adjusted free cash flow was a record $956 million in 2025. 

The company’s long-term debt increased to $6.99 billion as of 2025-end, from $5.31 billion as of 2024-end.

The company returned $1.54 billion to shareholders through share repurchases and dividends in 2025.

In August 2025, Ball Corp. sold 41% of its 51% stake in Ball United Arab Can Manufacturing Company. In March 2025, the company had exited the aluminum cups business.

In January 2026, Ball Corp. completed the acquisition of 80% stake in European beverage can manufacturer Benepack for €184 million ($217 million). Benepack has two production facilities in Belgium and Hungary, which cater to both international and local customers across Western and Eastern Europe. 

BALL’s Performance in 2025

Ball Corp. reported a record adjusted EPS of $3.57 in 2025, which came in 13% higher than the prior year and beat the Zacks Consensus Estimate of $3.56. On a reported basis, the company’s EPS from continuing operations was $3.30 compared with the prior-year quarter’s $1.37.

Total sales increased 11.6% year over year to $13.16 billion in 2025, surpassing the Zacks Consensus Estimate of $12.9 billion. The company reported a 6% rise in global aluminum packaging shipments for the year.

Ball Corp.’s Outlook For 2026

The company expects year-over-year growth in comparable earnings per share to exceed 10% in 2026. Free cash flow is projected to be above $900 million.

BALL’s Price Performance & Zacks Rank

Ball Corp.’s shares have gained 1.8% in a year compared with the industry’s 4.1% growth.

The company currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Performance of a Packaging Peer

Packaging Corporation of America PKG reported adjusted earnings per share of $2.32 in the fourth quarter of 2025, which missed the Zacks Consensus Estimate of $2.41. The bottom line came below Packaging Corp.’s guidance and fell 6% year over year. 

Packaging Corp.’s sales in the fourth quarter rose 10.1% year over year to $2.36 billion. The top line missed the Zacks Consensus Estimate of $2.42 billion.

Ball Corp’s Peers Awaiting Q4 Results

Crown Holdings CCK is set to release fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Crown Holdings’ fourth-quarter 2025 earnings is pegged at $1.69 per share, suggesting year-over-year growth of 6.3%. The consensus estimate for Crown Holdings’ revenues is pegged at $3.05 billion, indicating a 5% increase from the prior-year quarter.

Silgan Holdings Inc. SLGN is also set to report fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Silgan Holdings’ fourth-quarter 2025 earnings is pegged at 65 cents per share, suggesting a year-over-year decrease of 23.5%. The consensus estimate for Silgan Holdings’ revenues is pegged at $1.46 billion, indicating a 3.5% increase from the prior-year quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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