A month has gone by since the last earnings report for Ball (BALL). Shares have lost about 0.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ball due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Ball Corporation before we dive into how investors and analysts have reacted as of late.
BALL's Q4 Earnings Beat Estimates, Sales Up Y/Y on Higher Volumes
Ball Corporation 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. Operating earnings amounted to $159 million, up 12% year over year. Higher volume and favorable price/mix helped offset the impact of higher costs.
Sales in the Beverage Packaging EMEA segment were $971 million, up 17.6% year over year. 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 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. Operating earnings rose 0.8% to $127 million as higher volume and favorable price/mix were partially negated by higher costs.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Ball has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Ball has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ball Corporation (BALL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
