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BALL Q3 Earnings Beat on Higher Volumes and Favorable Price/Mix
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Key Takeaways
Ball's Q3 earnings rose 6.8% to $1.10 per share, beating estimates, while revenues surged 23.9% to $4.19B.
Global aluminum packaging shipments rose 4.7%, but higher costs pushed operating margin down to 10.8%.
Ball maintained its 2026 targets of at least 10% earnings growth and roughly $900M in free cash flow.
Ball Corporation (BALL - Free Report) reported comparable earnings of $1.10 per share for the third quarter of 2026, up 6.8% year over year. The figure surpassed the Zacks Consensus Estimate of $1.06 by 3.77%, supported by higher shipments and favorable price/mix.
On a reported basis, the company incurred a loss of 36 cents per share against earnings of $1.18 in the prior-year quarter.
Revenues climbed 23.9% to $4.188 billion and beat the consensus mark of $3.738 billion by 12.04%. Global aluminum packaging shipments increased 4.7% year over year.
Ball Corporation Price, Consensus and EPS Surprise
Cost of sales, excluding depreciation and amortization, increased 28.8% year over year to $3.48 billion. Gross profit rose 4.6% to $709 million. However, gross margin contracted to 16.9% from 20.1%, reflecting cost pressures despite higher sales.
Selling, general and administrative expenses increased 8.5% to $141 million. Comparable operating earnings rose 2.5% to $451 million. However, operating margin declined to 10.8% from 13%, impacted by higher operating expenses and plant start-up costs.
Ball's Segments See Higher Revenues While Margins Dip
The Beverage Packaging North and Central America segment's revenues increased 25.8% year over year to $2.06 billion. The reported figure beat our projection of $1.73 billion. The improvement reflected higher volumes and favorable price/mix, primarily attributable to higher aluminum prices. Segment shipment volumes increased by a low-single-digit percentage.
Comparable operating earnings declined 2.3% to $210 million. Our model had projected operating earnings of $227 million. Higher operating expenses and plant start-up costs more than offset favorable price/mix, including the timing of metal cost pass-throughs to customers, and increased volumes. Segment operating margin fell to 10.2% from 13.1%.
Sales in the Beverage Packaging EMEA segment rose 18.3% year over year to $1.33 billion, aided by higher shipments and favorable price/mix. Our projection was at $1.27 billion. Segment volumes increased at a mid-single-digit rate.
Comparable operating earnings increased 3.7% to $170 million. Higher volumes and favorable pricing offset increased costs, although operating margin contracted to 12.8% from 14.6%. Results included contributions from the acquired Benepack business. Our estimate for the segment’s operating earnings was $173 million.
The segment also reflects the realignment of Ball's facilities in India and Myanmar, along with the former Saudi Arabian business, implemented in the first quarter of 2026.
The Beverage Packaging South America segment's revenues surged 28.5% year over year to $653 million. The figure beat our projection of $581 million. Higher volumes and favorable price/mix, primarily attributable to increased aluminum prices, supported the improvement. Segment shipments increased by a low-double-digit percentage.
Comparable operating earnings climbed 19.5% to $92 million from $77 million. Increased volumes and pricing benefits more than offset higher costs. Our projected figure for the segment was $83 million for the quarter. Segment operating margin declined to 14.1% from 15.2%.
BALL's Cash Flow and Leverage Remain in Focus
For the first nine months of 2026, cash provided by operating activities was $20 million compared with $51 million in the prior-year period. Working-capital requirements remained substantial at $1.23 billion, while capital expenditures increased to $459 million from $304 million.
Free cash flow was negative $439 million, while adjusted free cash flow was negative $543 million after accounting for $104 million of cash taxes related to the Aerospace disposition.
Ball ended the third quarter with $410 million in cash and equivalents. Total debt was $7.28 billion, producing net debt of $6.87 billion. Net leverage stood at 3.21 times comparable EBITDA, while interest coverage was 6.92 times.
Ball Maintains 2026 Earnings and Cash Flow Targets
Management maintained its expectation for comparable earnings growth of 10% or more in 2026 and free cash flow of approximately $900 million. The company also remains focused on its long-term objective of 4-6% operating earnings growth.
Ball returned $431 million through dividends and share repurchases during the first nine months. It remains on track to return at least $800 million to shareholders by year-end.
The company is investing in new beverage can manufacturing facilities in Baruth, Germany and India to support long-term customer growth and strengthen its manufacturing network. Management continues to prioritize disciplined capital allocation and economic value added, or EVA, while pursuing growth opportunities and improving operating performance.
BALL’s Price Performance & Zacks Rank
Ball Corp.’s shares have gained 42.3% in a year compared with the industry’s 25.1% growth.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
Packaging Corporation of America (PKG - Free Report) reported third-quarter 2026 adjusted earnings of $3.04 per share, up 11.4% year over year and beating the Zacks Consensus Estimate of $2.95 by 3.05%. The bottom line also exceeded the company's guidance of $2.91, driven by favorable price and mix in the Packaging segment and contributions from the acquired operations.
Packaging Corp’s net sales increased 12.5% year over year to $2.60 billion and beat the consensus estimate of $2.56 billion.
Sonoco Products Company (SON - Free Report) posted adjusted earnings of $1.67 per share in the third quarter of 2026, missing the Zacks Consensus Estimate of $1.76. The figure dipped 13% from $1.92 in the year-ago quarter. Sonoco’s net sales of $2.04 billion declined 4.2% year over year and missed the consensus mark of $2.09 billion.
Silgan Holdings (SLGN - Free Report) reported quarterly earnings of $1.31 per share, beating the Zacks Consensus Estimate of $1.26 per share. Earnings increased 7% year over year.
Silgan posted revenues of $2.04 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate of $2.07 billion. This compares with year-ago revenues of $2.01 billion.
View the Zacks #1 Rank List
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BALL Q3 Earnings Beat on Higher Volumes and Favorable Price/Mix
Key Takeaways
Ball Corporation (BALL - Free Report) reported comparable earnings of $1.10 per share for the third quarter of 2026, up 6.8% year over year. The figure surpassed the Zacks Consensus Estimate of $1.06 by 3.77%, supported by higher shipments and favorable price/mix.
On a reported basis, the company incurred a loss of 36 cents per share against earnings of $1.18 in the prior-year quarter.
Revenues climbed 23.9% to $4.188 billion and beat the consensus mark of $3.738 billion by 12.04%. Global aluminum packaging shipments increased 4.7% year over year.
Ball Corporation Price, Consensus and EPS Surprise
Ball Corporation price-consensus-eps-surprise-chart | Ball Corporation Quote
BALL Faces Margin Pressure From Higher Costs
Cost of sales, excluding depreciation and amortization, increased 28.8% year over year to $3.48 billion. Gross profit rose 4.6% to $709 million. However, gross margin contracted to 16.9% from 20.1%, reflecting cost pressures despite higher sales.
Selling, general and administrative expenses increased 8.5% to $141 million. Comparable operating earnings rose 2.5% to $451 million. However, operating margin declined to 10.8% from 13%, impacted by higher operating expenses and plant start-up costs.
Ball's Segments See Higher Revenues While Margins Dip
The Beverage Packaging North and Central America segment's revenues increased 25.8% year over year to $2.06 billion. The reported figure beat our projection of $1.73 billion. The improvement reflected higher volumes and favorable price/mix, primarily attributable to higher aluminum prices. Segment shipment volumes increased by a low-single-digit percentage.
Comparable operating earnings declined 2.3% to $210 million. Our model had projected operating earnings of $227 million. Higher operating expenses and plant start-up costs more than offset favorable price/mix, including the timing of metal cost pass-throughs to customers, and increased volumes. Segment operating margin fell to 10.2% from 13.1%.
Sales in the Beverage Packaging EMEA segment rose 18.3% year over year to $1.33 billion, aided by higher shipments and favorable price/mix. Our projection was at $1.27 billion. Segment volumes increased at a mid-single-digit rate.
Comparable operating earnings increased 3.7% to $170 million. Higher volumes and favorable pricing offset increased costs, although operating margin contracted to 12.8% from 14.6%. Results included contributions from the acquired Benepack business. Our estimate for the segment’s operating earnings was $173 million.
The segment also reflects the realignment of Ball's facilities in India and Myanmar, along with the former Saudi Arabian business, implemented in the first quarter of 2026.
The Beverage Packaging South America segment's revenues surged 28.5% year over year to $653 million. The figure beat our projection of $581 million. Higher volumes and favorable price/mix, primarily attributable to increased aluminum prices, supported the improvement. Segment shipments increased by a low-double-digit percentage.
Comparable operating earnings climbed 19.5% to $92 million from $77 million. Increased volumes and pricing benefits more than offset higher costs. Our projected figure for the segment was $83 million for the quarter. Segment operating margin declined to 14.1% from 15.2%.
BALL's Cash Flow and Leverage Remain in Focus
For the first nine months of 2026, cash provided by operating activities was $20 million compared with $51 million in the prior-year period. Working-capital requirements remained substantial at $1.23 billion, while capital expenditures increased to $459 million from $304 million.
Free cash flow was negative $439 million, while adjusted free cash flow was negative $543 million after accounting for $104 million of cash taxes related to the Aerospace disposition.
Ball ended the third quarter with $410 million in cash and equivalents. Total debt was $7.28 billion, producing net debt of $6.87 billion. Net leverage stood at 3.21 times comparable EBITDA, while interest coverage was 6.92 times.
Ball Maintains 2026 Earnings and Cash Flow Targets
Management maintained its expectation for comparable earnings growth of 10% or more in 2026 and free cash flow of approximately $900 million. The company also remains focused on its long-term objective of 4-6% operating earnings growth.
Ball returned $431 million through dividends and share repurchases during the first nine months. It remains on track to return at least $800 million to shareholders by year-end.
The company is investing in new beverage can manufacturing facilities in Baruth, Germany and India to support long-term customer growth and strengthen its manufacturing network. Management continues to prioritize disciplined capital allocation and economic value added, or EVA, while pursuing growth opportunities and improving operating performance.
BALL’s Price Performance & Zacks Rank
Ball Corp.’s shares have gained 42.3% in a year compared with the industry’s 25.1% growth.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
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) reported third-quarter 2026 adjusted earnings of $3.04 per share, up 11.4% year over year and beating the Zacks Consensus Estimate of $2.95 by 3.05%. The bottom line also exceeded the company's guidance of $2.91, driven by favorable price and mix in the Packaging segment and contributions from the acquired operations.
Packaging Corp’s net sales increased 12.5% year over year to $2.60 billion and beat the consensus estimate of $2.56 billion.
Sonoco Products Company (SON - Free Report) posted adjusted earnings of $1.67 per share in the third quarter of 2026, missing the Zacks Consensus Estimate of $1.76. The figure dipped 13% from $1.92 in the year-ago quarter. Sonoco’s net sales of $2.04 billion declined 4.2% year over year and missed the consensus mark of $2.09 billion.
Silgan Holdings (SLGN - Free Report) reported quarterly earnings of $1.31 per share, beating the Zacks Consensus Estimate of $1.26 per share. Earnings increased 7% year over year.
Silgan posted revenues of $2.04 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate of $2.07 billion. This compares with year-ago revenues of $2.01 billion.