A month has gone by since the last earnings report for Crown Holdings (CCK). Shares have lost about 5.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Crown due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Crown Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
Crown Holdings Earnings Surpass Estimates in Q4, Sales Rise Y/Y
Crown Holdings reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.74, beating the Zacks Consensus Estimate of $1.69. The bottom line increased 9% year over year and came within the company’s guidance of $1.65-$1.75.
Including one-time items, the company reported earnings from continuing operations of $1.31 per share in the quarter under review compared with earnings of $3.02 in the prior-year quarter.
Net sales in the quarter totaled $3.13 billion, up 7.7% from the year-ago quarter’s $2.90 billion. The upside was driven by shipments in European Beverage and the North America business, partially offset by lower volumes in both Asia Pacific and Transit Packaging. The reported figure surpassed the Zacks Consensus Estimate of $3.05 billion.
Crown Holdings’ Q4 Gross Margin Dip Y/Y
The cost of products sold increased 9.4% year over year to $2.46 billion. On a year-over-year basis, gross profit increased 1.8% to $662 million. The gross margin came in at 21.2%, down from the year-ago quarter’s 22.4%.
Selling and administrative expenses grew 11.6% year over year to $164 million. The total segmental operating income was $420 million in the quarter under review compared with the prior-year quarter’s $428 million. The total segment operating margin was 13.4% compared with 14.7% in the prior-year quarter.
CCK’s Q4 Segmental Performances
Net sales in the Americas Beverage segment totaled $1.47 billion, up 11.2% year over year. The segment’s operating profit decreased 1.5% year over year to $271 million.
The European Beverage segment’s sales rose 14% year over year to $520 million. Operating income was $61 million, marking an improvement from the year-ago quarter’s $51 million.
The Asia-Pacific segment’s sales totaled $302 million, down 1.9% year over year. Operating profit was $42 million compared with the prior-year quarter’s $487 million.
Sales in the Transit Packaging segment totaled $501 million compared with the year-ago quarter’s $511 million. Operating profit fell 5.1% year over year to $56 million.
Crown Holdings’ Q4 Cash Flow & Balance Sheet Updates
CCK had cash and cash equivalents of $764 million at the end of 2025, down from $918 million at the end of 2024. The company generated $1.53 billion in cash from operating activities in 2025 compared with $1.19 billion in the prior-year period.
CCK’s 2025 Performance
The company reported 2025 adjusted EPS of $7.79, beating the Zacks Consensus Estimate of $7.75. The bottom line improved 22% year over year and came above the company’s guidance of $7.70-$7.80.
Including one-time items, the company reported earnings from continuing operations of $3.55 per share in the year under review compared with $3.76 per share in the prior year.
Net sales in the year totaled $12.36 billion, up 4.8% year over year. The reported figure surpassed the Zacks Consensus Estimate of $12.28 billion.
Crown Holdings’ 2026 Outlook
The company projects full-year adjusted EPS of $7.90-$8.30 per share. It expects 2025 adjusted free cash flow of $900 million. It indicates a 4% increase at mid-point year-over-year.
Crown Holdings expects adjusted EPS between $1.70 and $1.80 for the first quarter of 2026. Adjusted EPS in the fourth quarter of 2024 was $1.67.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in fresh estimates.
VGM Scores
At this time, Crown has a average Growth Score of C, 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 top 40% for value investors.
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
Crown has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Crown Holdings, Inc. (CCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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