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Ball (BALL) Down 0.3% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Ball (BALL - Free Report) . Shares have lost about 0.3% 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Ball's Q2 Earnings Beat on Volume Growth and Favorable Price/Mix
Ball reported comparable earnings of $1.03 per share for the second quarter of 2026, up 14.4% year over year. The figure surpassed the Zacks Consensus Estimate of 99 cents by 4%, supported by higher shipments and favorable price/mix.
On a reported basis, the company’s earnings per share (EPS) from continuing operations were 83 cents compared with the prior-year quarter’s 76 cents.
Revenues climbed 19.7% to $3,997 million and beat the consensus mark of $3,666 million by 9%. The company’s top-line increase reflected higher volumes and favorable price/mix, mainly attributable to higher aluminum prices. Global shipment growth of 4.3% exceeded Ball’s long-term volume growth range of 2-3%.
Ball Sees Margin Pressure From Higher Costs
Cost of sales, excluding depreciation and amortization, increased 22.7% year over year to $3.30 billion. Gross profit rose 7.6% year over year to $697 million. However, gross margin contracted to 17.4% from 19.4%.
Selling, general and administrative expenses increased 19% to $163 million. Comparable operating earnings rose 7.7% to $433 million, but operating margin declined to 10.8% from 12%.
Ball’s Segment Performance in Q2 2026
The Beverage Packaging North and Central America segment’s revenues increased 24.4% year over year to $2 billion. The improvement reflected higher volumes and favorable price/mix, primarily tied to higher aluminum prices. Segment shipment volume increased by a low-single-digit percentage.
Comparable operating earnings declined 2.4% to $207 million. Higher operating expenses, increased volume-related costs and plant start-up spending more than offset favorable price/mix, including the timing of metal cost pass-throughs to customers. Segment margin fell to 10.3% from 13.1%.
Sales in the Beverage Packaging EMEA segment rose 10.6% to $1.24 billion, aided by higher shipments and favorable price/mix and contributions from the acquired Benepack business. Comparable operating earnings increased 6.6% to $162 million. Higher volume and pricing benefits offset increased costs, while segment shipments grew at a mid-single-digit rate.
The Beverage Packaging South America segment’s revenues rose 23.9% year over year to $591 million, driven by higher prices, primarily attributable to higher aluminum prices and higher volume.
Ball's Cash Flow and Leverage Stay in Focus
For the first six months of 2026, cash used in operating activities was $169 million against outflow of $333 million in the prior-year period. Working-capital requirements remained significant at $1.012 billion, while capital expenditures increased to $302 million from $177 million.
Free cash flow was negative $471 million and adjusted free cash flow was negative $575 million after accounting for $104 million of cash taxes related to the Aerospace disposition. Ball ended the second quarter with $491 million in cash and equivalents.
Total debt was $7.22 billion, producing net debt of $6.729 billion. Net leverage stood at 3.16 times comparable EBITDA, while interest coverage was 6.65 times.
Ball Reaffirms 2026 Targets
Management maintained its expectation for comparable earnings growth of more than 10% in 2026 and free cash flow exceeding $900 million. Ball also continues to target approximately $600 million of capital expenditures and net leverage of around 2.7 times.
The company returned $222 million through dividends and share repurchases during the first half. It remains on track to return at least $800 million to shareholders by year-end while funding long-term projects, including the ramp-up of its Millersburg facility and the integration of Benepack.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Ball has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. 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.
View the Zacks #1 Rank List
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Ball (BALL) Down 0.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Ball (BALL - Free Report) . Shares have lost about 0.3% 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Ball's Q2 Earnings Beat on Volume Growth and Favorable Price/Mix
Ball reported comparable earnings of $1.03 per share for the second quarter of 2026, up 14.4% year over year. The figure surpassed the Zacks Consensus Estimate of 99 cents by 4%, supported by higher shipments and favorable price/mix.
On a reported basis, the company’s earnings per share (EPS) from continuing operations were 83 cents compared with the prior-year quarter’s 76 cents.
Revenues climbed 19.7% to $3,997 million and beat the consensus mark of $3,666 million by 9%. The company’s top-line increase reflected higher volumes and favorable price/mix, mainly attributable to higher aluminum prices. Global shipment growth of 4.3% exceeded Ball’s long-term volume growth range of 2-3%.
Ball Sees Margin Pressure From Higher Costs
Cost of sales, excluding depreciation and amortization, increased 22.7% year over year to $3.30 billion. Gross profit rose 7.6% year over year to $697 million. However, gross margin contracted to 17.4% from 19.4%.
Selling, general and administrative expenses increased 19% to $163 million. Comparable operating earnings rose 7.7% to $433 million, but operating margin declined to 10.8% from 12%.
Ball’s Segment Performance in Q2 2026
The Beverage Packaging North and Central America segment’s revenues increased 24.4% year over year to $2 billion. The improvement reflected higher volumes and favorable price/mix, primarily tied to higher aluminum prices. Segment shipment volume increased by a low-single-digit percentage.
Comparable operating earnings declined 2.4% to $207 million. Higher operating expenses, increased volume-related costs and plant start-up spending more than offset favorable price/mix, including the timing of metal cost pass-throughs to customers. Segment margin fell to 10.3% from 13.1%.
Sales in the Beverage Packaging EMEA segment rose 10.6% to $1.24 billion, aided by higher shipments and favorable price/mix and contributions from the acquired Benepack business. Comparable operating earnings increased 6.6% to $162 million. Higher volume and pricing benefits offset increased costs, while segment shipments grew at a mid-single-digit rate.
The Beverage Packaging South America segment’s revenues rose 23.9% year over year to $591 million, driven by higher prices, primarily attributable to higher aluminum prices and higher volume.
Ball's Cash Flow and Leverage Stay in Focus
For the first six months of 2026, cash used in operating activities was $169 million against outflow of $333 million in the prior-year period. Working-capital requirements remained significant at $1.012 billion, while capital expenditures increased to $302 million from $177 million.
Free cash flow was negative $471 million and adjusted free cash flow was negative $575 million after accounting for $104 million of cash taxes related to the Aerospace disposition. Ball ended the second quarter with $491 million in cash and equivalents.
Total debt was $7.22 billion, producing net debt of $6.729 billion. Net leverage stood at 3.16 times comparable EBITDA, while interest coverage was 6.65 times.
Ball Reaffirms 2026 Targets
Management maintained its expectation for comparable earnings growth of more than 10% in 2026 and free cash flow exceeding $900 million. Ball also continues to target approximately $600 million of capital expenditures and net leverage of around 2.7 times.
The company returned $222 million through dividends and share repurchases during the first half. It remains on track to return at least $800 million to shareholders by year-end while funding long-term projects, including the ramp-up of its Millersburg facility and the integration of Benepack.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Ball has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. 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.