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BALL beat Q1 estimates with 22% EPS growth and 16% higher revenues, driven by volume and pricing gains.
Ball saw margin pressure as costs surged, with gross margin falling to 17.9% from 19.5% last year.
BALL reaffirmed 2026 EPS growth outlook and plans $800M shareholder returns via buybacks and dividends.
Ball Corporation (BALL - Free Report) posted first-quarter 2026 comparable earnings of 94 cents per share, up 22.1% year over year and above the Zacks Consensus Estimate of 85 cents by 10.6%.
Higher volumes in North and Central America and EMEA, and favorable price/mix across the beverage can footprint helped offset higher costs. On a reported basis, the company’s earnings per share (EPS) from continuing operations were 77 cents compared with the prior-year quarter’s 64 cents.
Revenues rose 16.3% from the year-ago quarter to $3.60 billion, topping the consensus mark of $3.27 billion by 10.1%. Global aluminum packaging shipments inched up 0.8% year over year.
Ball Corporation Price, Consensus and EPS Surprise
Cost of sales (excluding depreciation and amortization) increased 18.6% to $2.96 billion. The gross profit totaled $646 million, up 7% from the year-ago quarter. The gross margin was 17.9%, a contraction from the prior-year quarter’s 19.5%.
Selling, general and administrative expense was $150 million, a 0.7% increase year over year. Comparable segment operating earnings were $387 million, 10% higher than the prior-year quarter’s $352 million. Segment operating margin was 10.7% compared with 11.4% in the year-ago quarter.
BALL’s Segment Performances in Q126
The Beverage Packaging North and Central America segment’s revenues increased 21.4% year over year on higher volume and price/mix, mainly due to higher aluminum prices. We had projected sales of $1.51 billion. Operating earnings amounted to $205 million, up 2.5% 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 $187 million.
Sales in the Beverage Packaging EMEA segment were $1.11 billion, up 16% year over year. The reported figure beat our estimate of $983 million. The upside was attributed to stronger shipments and currency translation, and contributions from the acquired Benepack business. Operating earnings were $134 million, marking 20.7% year-over-year growth. The figure came in higher than our projected figure of $90.9 million.
The Beverage Packaging South America segment’s revenues rose 7.5% year over year to $585 million, driven by higher prices, primarily attributable to higher aluminum prices, partially offset by lower volume. Our projection for the segment’s sales was $580.6 million. Operating earnings were $67 million, in line with the year-ago quarter and our projection. Higher price/mix was offset by higher costs and lower volume.
Ball Corp.'s Cash Flow & Debt Position
The company reported cash and cash equivalents of $730 million at the end of the first quarter of 2026, up from $449 million at the end of 2025. Operating cash flow was a usage of $777 million in the quarter compared with an outflow of $665 million in the year-ago quarter.
Free cash flow was negative $938 million. Adjusted free cash flow was negative $1.04 billion after $104 million of cash taxes tied to the Aerospace disposition. Ball Corp. also increased capital spending to $161 million from $81 million in the prior-year period.
The company’s long-term debt increased to $7.02 billion as of the first quarter 2026-end, from $6.13 billion as of 2025-end. Net debt to comparable EBITDA was 3.39x.
BALL Maintains 2026 Targets and Shareholder Returns
Management reiterated expectations for 2026 comparable EPS growth of “10-plus per cent” and free cash flow greater than $900 million. BALL also said it remains on track to return at least $800 million to shareholders through buybacks and dividends by year-end, while continuing to invest in long-term, EVA-driven growth projects tied to sustainable aluminum packaging demand.
BALL’s Price Performance & Zacks Rank
Ball Corp.’s shares have gained 17.5% in a year compared with the industry’s 1.6% growth.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. Packaging Corp.’s results beat the Zacks Consensus Estimate of $2.17 by 10.6%. Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported Packaging Corp.’s results, though special items weighed on reported profitability.
Silgan Holdings (SLGN - Free Report) reported adjusted earnings of 78 cents per share, beating the Zacks Consensus Estimate of 74 cents per share. This came in lower than the 82 cents per share reported in the prior year quarter. Silgan Holdings posted revenues of $1.56 billion, surpassing the Zacks Consensus Estimate of $1.49 billion by 4.53%. Revenues increased 6% year over year.
Crown Holdings (CCK - Free Report) reported adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.75 per share and marking an 11% increase year over year. Crown Holdings’ revenues for the quarter increased 13% to $3.26 billion and also surpassed the Zacks Consensus Estimate of $3 billion by 8.10%.
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Ball Corp.'s Q1 Earnings Beat Estimates, Margins Dip Y/Y
Key Takeaways
Ball Corporation (BALL - Free Report) posted first-quarter 2026 comparable earnings of 94 cents per share, up 22.1% year over year and above the Zacks Consensus Estimate of 85 cents by 10.6%.
Higher volumes in North and Central America and EMEA, and favorable price/mix across the beverage can footprint helped offset higher costs.
On a reported basis, the company’s earnings per share (EPS) from continuing operations were 77 cents compared with the prior-year quarter’s 64 cents.
Revenues rose 16.3% from the year-ago quarter to $3.60 billion, topping the consensus mark of $3.27 billion by 10.1%. Global aluminum packaging shipments inched up 0.8% year over year.
Ball Corporation Price, Consensus and EPS Surprise
Ball Corporation price-consensus-eps-surprise-chart | Ball Corporation Quote
BALL Sees Margin Pressure From Higher Costs
Cost of sales (excluding depreciation and amortization) increased 18.6% to $2.96 billion. The gross profit totaled $646 million, up 7% from the year-ago quarter. The gross margin was 17.9%, a contraction from the prior-year quarter’s 19.5%.
Selling, general and administrative expense was $150 million, a 0.7% increase year over year. Comparable segment operating earnings were $387 million, 10% higher than the prior-year quarter’s $352 million. Segment operating margin was 10.7% compared with 11.4% in the year-ago quarter.
BALL’s Segment Performances in Q126
The Beverage Packaging North and Central America segment’s revenues increased 21.4% year over year on higher volume and price/mix, mainly due to higher aluminum prices. We had projected sales of $1.51 billion. Operating earnings amounted to $205 million, up 2.5% 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 $187 million.
Sales in the Beverage Packaging EMEA segment were $1.11 billion, up 16% year over year. The reported figure beat our estimate of $983 million. The upside was attributed to stronger shipments and currency translation, and contributions from the acquired Benepack business. Operating earnings were $134 million, marking 20.7% year-over-year growth. The figure came in higher than our projected figure of $90.9 million.
The Beverage Packaging South America segment’s revenues rose 7.5% year over year to $585 million, driven by higher prices, primarily attributable to higher aluminum prices, partially offset by lower volume. Our projection for the segment’s sales was $580.6 million. Operating earnings were $67 million, in line with the year-ago quarter and our projection. Higher price/mix was offset by higher costs and lower volume.
Ball Corp.'s Cash Flow & Debt Position
The company reported cash and cash equivalents of $730 million at the end of the first quarter of 2026, up from $449 million at the end of 2025. Operating cash flow was a usage of $777 million in the quarter compared with an outflow of $665 million in the year-ago quarter.
Free cash flow was negative $938 million. Adjusted free cash flow was negative $1.04 billion after $104 million of cash taxes tied to the Aerospace disposition. Ball Corp. also increased capital spending to $161 million from $81 million in the prior-year period.
The company’s long-term debt increased to $7.02 billion as of the first quarter 2026-end, from $6.13 billion as of 2025-end. Net debt to comparable EBITDA was 3.39x.
BALL Maintains 2026 Targets and Shareholder Returns
Management reiterated expectations for 2026 comparable EPS growth of “10-plus per cent” and free cash flow greater than $900 million. BALL also said it remains on track to return at least $800 million to shareholders through buybacks and dividends by year-end, while continuing to invest in long-term, EVA-driven growth projects tied to sustainable aluminum packaging demand.
BALL’s Price Performance & Zacks Rank
Ball Corp.’s shares have gained 17.5% in a year compared with the industry’s 1.6% growth.
Image Source: Zacks Investment Research
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 Packaging Peers
Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. Packaging Corp.’s results beat the Zacks Consensus Estimate of $2.17 by 10.6%. Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported Packaging Corp.’s results, though special items weighed on reported profitability.
Silgan Holdings (SLGN - Free Report) reported adjusted earnings of 78 cents per share, beating the Zacks Consensus Estimate of 74 cents per share. This came in lower than the 82 cents per share reported in the prior year quarter. Silgan Holdings posted revenues of $1.56 billion, surpassing the Zacks Consensus Estimate of $1.49 billion by 4.53%. Revenues increased 6% year over year.
Crown Holdings (CCK - Free Report) reported adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.75 per share and marking an 11% increase year over year. Crown Holdings’ revenues for the quarter increased 13% to $3.26 billion and also surpassed the Zacks Consensus Estimate of $3 billion by 8.10%.