10-Q: Quarterly report [Sections 13 or 15(d)]
Published on May 5, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Registrant’s telephone number, including area code:
Securities registered pursuant to section 12(b) of the Act:
Class | Trading Symbol | Name of Exchange | Outstanding at May 1, 2026 | |||
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
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Accelerated filer ◻ | |
Non-accelerated filer ◻ | Smaller reporting company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Ball Corporation
QUARTERLY REPORT ON FORM 10-Q
For the period ended March 31, 2026
INDEX
Page | ||
1 | ||
1 | ||
1 | ||
2 | ||
Unaudited Condensed Consolidated Balance Sheets at March 31, 2026, and December 31, 2025 | 3 | |
4 | ||
Notes to the Unaudited Condensed Consolidated Financial Statements | ||
5 | ||
5 | ||
6 | ||
8 | ||
9 | ||
10 | ||
Note 7. Supplemental Cash Flow Statement and Other Disclosures | 10 | |
11 | ||
11 | ||
11 | ||
12 | ||
12 | ||
12 | ||
13 | ||
13 | ||
14 | ||
14 | ||
Note 18. Equity and Accumulated Other Comprehensive Earnings (Loss) | 15 | |
17 | ||
17 | ||
22 | ||
22 | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 24 | |
30 | ||
31 | ||
31 |
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
BALL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended March 31, | ||||||
($ in millions, except per share amounts) | 2026 | | 2025 | |||
Net sales | $ | | $ | | ||
Cost of sales (excluding depreciation and amortization) | ( | ( | ||||
Depreciation and amortization | ( | ( | ||||
Selling, general and administrative | ( | ( | ||||
Business consolidation and other activities | ( | ( | ||||
Interest income | | | ||||
Interest expense | ( | ( | ||||
Earnings before taxes | | | ||||
Tax (provision) benefit | ( | ( | ||||
Equity in results of affiliates, net of tax | | | ||||
Earnings from continuing operations | | | ||||
Discontinued operations, net of tax | — | ( | ||||
Net earnings | | | ||||
Net earnings attributable to noncontrolling interests | — | — | ||||
Net earnings attributable to Ball Corporation | $ | | $ | | ||
Earnings per share: | ||||||
Basic - continuing operations | $ | | $ | | ||
Basic - discontinued operations | — | ( | ||||
Total basic earnings per share | $ | | $ | | ||
Diluted - continuing operations | $ | | $ | | ||
Diluted - discontinued operations | — | ( | ||||
Total diluted earnings per share | $ | | $ | | ||
Weighted average shares outstanding: (000s) | ||||||
Basic | | | ||||
Diluted | | | ||||
See accompanying notes to the unaudited condensed consolidated financial statements.
1
BALL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)
Three Months Ended March 31, | ||||||
($ in millions) | | 2026 | | 2025 | ||
Net earnings | $ | | $ | | ||
Other comprehensive earnings (loss): | ||||||
Currency translation adjustment | ( | | ||||
Pension and other postretirement benefits | | ( | ||||
Derivatives designated as hedges | | ( | ||||
Total other comprehensive earnings (loss) | | | ||||
Tax (provision) benefit | ( | | ||||
Total other comprehensive earnings (loss), net of tax | | | ||||
Total comprehensive earnings | | | ||||
Comprehensive earnings attributable to noncontrolling interests | — | — | ||||
Comprehensive earnings attributable to Ball Corporation | $ | | $ | | ||
See accompanying notes to the unaudited condensed consolidated financial statements.
2
BALL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, | December 31, | |||||
($ in millions) | | 2026 | | 2025 | ||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | | $ | | ||
Receivables, net | | | ||||
Inventories, net | | | ||||
Other current assets | | | ||||
Current assets held for sale | | | ||||
Total current assets | | | ||||
Noncurrent assets | ||||||
Property, plant and equipment, net | | | ||||
Goodwill | | | ||||
Intangible assets, net | | | ||||
Other assets | | | ||||
Total assets | $ | | $ | | ||
Liabilities and Equity | ||||||
Current liabilities | ||||||
Short-term debt and current portion of long-term debt | $ | | $ | | ||
Accounts payable | | | ||||
Accrued employee costs | | | ||||
Other current liabilities | | | ||||
Total current liabilities | | | ||||
Noncurrent liabilities | ||||||
Long-term debt | | | ||||
Employee benefit obligations | | | ||||
Deferred taxes | | | ||||
Other liabilities | | | ||||
Total liabilities | | | ||||
Equity | ||||||
Common stock ( | | | ||||
Retained earnings | | | ||||
Accumulated other comprehensive earnings (loss) | ( | ( | ||||
Treasury stock, at cost ( | ( | ( | ||||
Total Ball Corporation shareholders' equity | | | ||||
Noncontrolling interests | | — | ||||
Total equity | | | ||||
Total liabilities and equity | $ | | $ | | ||
See accompanying notes to the unaudited condensed consolidated financial statements.
3
BALL CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, | ||||||
($ in millions) | | 2026 | | 2025 | ||
Cash Flows from Operating Activities | ||||||
Net earnings | $ | | $ | | ||
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | | | ||||
Business consolidation and other activities | | | ||||
Deferred tax provision (benefit) | ( | ( | ||||
Loss on Aerospace disposal | — | | ||||
Pension contributions | ( | ( | ||||
Other, net | | ( | ||||
Changes in working capital components, net of acquisitions and dispositions | ( | ( | ||||
Cash provided by (used in) operating activities | ( | ( | ||||
Cash Flows from Investing Activities | ||||||
Capital expenditures | ( | ( | ||||
Business acquisitions, net of cash acquired | ( | ( | ||||
Business dispositions, net of cash sold | — | | ||||
Derivative settlements | ( | | ||||
Other, net | ( | | ||||
Cash provided by (used in) investing activities | ( | ( | ||||
Cash Flows from Financing Activities | ||||||
Long-term borrowings | | | ||||
Repayments of long-term borrowings | ( | ( | ||||
Net change in short-term borrowings | ( | ( | ||||
Acquisitions of treasury stock | ( | ( | ||||
Common stock dividends | ( | ( | ||||
Other, net | | | ||||
Cash provided by (used in) financing activities | | | ||||
Effect of exchange rate changes on cash | | | ||||
Change in cash, cash equivalents and restricted cash | ( | ( | ||||
Cash, cash equivalents and restricted cash - beginning of period | | | ||||
Cash, cash equivalents and restricted cash - end of period | $ | | $ | | ||
See accompanying notes to the unaudited condensed consolidated financial statements.
4
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements (consolidated financial statements) include the accounts of Ball Corporation and its controlled affiliates, including its consolidated variable interest entities (collectively Ball, the company, we or our), and have been prepared by the company. Certain information and footnote disclosures, including significant accounting policies normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted for this quarterly presentation.
Results of operations for the periods shown are not necessarily indicative of results for the year, particularly in view of the seasonality in the packaging segments. These consolidated financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and the notes thereto included in the company’s 2025 Annual Report on Form 10-K filed on February 19, 2026, pursuant to the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2025 (annual report).
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires Ball’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. These estimates are based on historical experience and various assumptions believed to be reasonable under the circumstances. Ball’s management evaluates these estimates on an ongoing basis and adjusts or revises the estimates as circumstances change. As future events and their impacts cannot be determined with precision, actual results may differ from these estimates. In the opinion of management, the consolidated financial statements reflect all adjustments that are of a normal recurring nature and are necessary to fairly state the results of the periods presented.
Certain prior year amounts have been reclassified in order to conform to the current year’s presentation, including changes made during the first quarter of 2026 to the Company’s reportable segments and measure of segment profitability. See Note 3 for details.
2. Accounting Pronouncements
Recently Adopted Accounting Standards
Measurement of Credit Losses for Accounts Receivable and Contract Assets
In 2025, amended guidance was issued by the Financial Accounting Standards Board (FASB) with the goal of improving efficiencies associated with the measurement of credit losses for accounts receivable and contract assets by allowing entities to elect a practical expedient for measurement. The company has elected to adopt the practical expedient on a prospective basis and does not expect it to have a material impact.
New Accounting Guidance and Disclosure Requirements
Improvements to Accounting for Internal-Use Software
In 2025, new guidance was issued by the FASB with the goal to better align accounting with how internal-use software is developed. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to adopt the guidance on a prospective basis in 2028.
Disaggregation of Income Statement Expenses
In 2024, new guidance was issued by the FASB with the goal of providing financial statement users with more expense information of certain categories of expenses that are included in line items on the face of the statements of earnings. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to meet the disclosure requirements on a prospective basis in its 2027 annual report and interim periods thereafter.
5
3. Business Segment Information
Ball’s operations are organized and reviewed by management along its product lines and geographical areas and presented in the
Beverage packaging, North and Central America: Consists of operations in the U.S., Canada and Mexico that manufacture and sell aluminum beverage containers throughout those countries.
Beverage packaging, EMEA: Consists of operations in numerous countries throughout Europe, as well as Egypt, Turkey, India and Myanmar, that manufacture and sell aluminum beverage containers throughout those countries.
Beverage packaging, South America: Consists of operations in Brazil, Argentina, Paraguay and Chile that manufacture and sell aluminum beverage containers throughout most of South America.
As presented in the tables below, Other consists of a non-reportable operating segment that manufactures and sells extruded aluminum aerosol containers and recloseable aluminum bottles across multiple consumer categories as well as aluminum slugs (personal & home care or PHC) throughout North America, South America and Europe; undistributed corporate expenses; and intercompany eliminations and other business activities.
In January 2026, the company acquired an
On August 27, 2025, the company sold
On March 21, 2025, Ball closed on a transaction for its aluminum cups business, which resulted in Ball deconsolidating the business. The financial results of the aluminum cups business are presented in Other in the tables below through the date of the transaction. See Note 4 for further details on the Benepack acquisition, Saudi Arabia and aluminum cups businesses.
The accounting policies of the segments are the same as those used in the consolidated financial statements, as discussed in Note 1. The company also has investments in operations in Guatemala, Panama, the U.S., Vietnam and Saudi Arabia that are accounted for under the equity method of accounting and, accordingly, those results are not included in segment sales or earnings.
Ron Lewis, Chief Executive Officer, is the company’s chief operating decision maker (CODM). For each reportable segment, the CODM uses comparable segment operating earnings to analyze profitability compared to internal forecasts and comparative prior periods. These analyses allow the CODM to have constructive dialogue with other company leaders on how to improve company performance.
6
Summary of Business by Segment
Three Months Ended March 31, | ||||||
($ in millions) | | 2026 | | 2025 | ||
Net sales | ||||||
Beverage packaging, North and Central America | $ | | $ | | ||
Beverage packaging, EMEA | | | ||||
Beverage packaging, South America | | | ||||
Reportable segment sales | | | ||||
Other | | | ||||
Net sales | $ | | $ | | ||
Comparable segment operating earnings (a) | ||||||
Beverage packaging, North and Central America | $ | | $ | | ||
Beverage packaging, EMEA | | | ||||
Beverage packaging, South America | | | ||||
Reportable segment comparable operating earnings | | | ||||
Other (b) | ( | ( | ||||
Reconciling items, net | ( | ( | ||||
Earnings before taxes | | | ||||
Reconciling items: | ||||||
Business consolidation and other activities | ( | ( | ||||
Factoring fee expense (c) | ( | ( | ||||
FX gain (loss) (c) | | | ||||
Intangible amortization | ( | ( | ||||
Interest expense | ( | ( | ||||
Interest income | | | ||||
Stock-based compensation expense (c) | ( | ( | ||||
Unrealized gain (loss) on equity-linked notes (c) | ( | — | ||||
Other, net (c) | ( | — | ||||
Reconciling items, net | $ | ( | $ | ( |
| (a) | The difference between reportable segment net sales and comparable operating earnings is comprised of other segment items. Other segment items include cost of sales, depreciation, and selling, general and administrative, adjusted for other items, identified in (c) below. The CODM does not receive or use these amounts at the reportable segment level. However, the CODM is provided these amounts at a consolidated level to manage operations. |
| (b) | Includes undistributed corporate expenses, net, of $ |
| (c) | During the first quarter of 2026, the company changed its measure of comparable segment operating earnings, to exclude these amounts, as well as interest income and total amortization. |
Three Months Ended March 31, | ||||||
($ in millions) | | 2026 | | 2025 | ||
Depreciation and amortization | ||||||
Beverage packaging, North and Central America | $ | | $ | | ||
Beverage packaging, EMEA | | | ||||
Beverage packaging, South America | | | ||||
Reportable segment depreciation and amortization | | | ||||
Other | | | ||||
Depreciation and amortization | $ | | $ | | ||
The company does not disclose total assets by segment as it is not provided to the CODM.
7
4. Acquisitions and Dispositions
Acquisition of Benepack European Production Facilities
In January 2026, the company acquired an
The initial accounting for the acquisition is incomplete as of March 31, 2026, as such the purchase price allocation recognized in the unaudited condensed consolidated balance sheet is provisional and based upon preliminary estimates.
The following table summarizes the consideration paid for Benepack’s European beverage can manufacturing business and the preliminary amounts assigned for the assets acquired and liabilities assumed, as well as the fair value of the noncontrolling interest at the acquisition date:
($ in millions) | | ||
Cash and cash equivalents | $ | | |
Receivables | | ||
Inventories | | ||
Other current assets | | ||
Property, plant and equipment | | ||
Goodwill | | ||
Total assets acquired | $ | | |
Short-term borrowings and current portion of long-term debt | | ||
Accounts payable | | ||
Accrued employee costs | | ||
Other current liabilities | | ||
Other liabilities | | ||
Total liabilities assumed | $ | | |
Net assets acquired | | ||
Noncontrolling interests | ( | ||
Aggregate value of cash consideration paid | $ | |
Benepack contributed sales of $
Saudi Arabia
On August 27, 2025, the company sold
Aluminum Cups
On March 21, 2025, Ball and Ayna.AI LLC (Ayna) executed a Unit Purchase Agreement to form a strategic partnership in which Ball owns a
8
recorded losses of $
Acquisition of Florida Can Manufacturing
In February 2025, the company closed on the acquisition of Florida Can Manufacturing for cash consideration of $
5. Revenue from Contracts with Customers
The following table disaggregates the company’s net sales based on the timing of transfer of control:
Three Months Ended March 31, | |||||||||
($ in millions) | Point in Time | Over Time | Total | ||||||
2026 | $ | | $ | | $ | | |||
2025 | | | | ||||||
The company did
Contract | Contract | |||||
Liabilities | Liabilities | |||||
($ in millions) | | (Current) | (Noncurrent) | |||
Balance at December 31, 2025 | $ | | $ | | ||
Increase (decrease) | | — | ||||
Balance at March 31, 2026 | $ | | $ | | ||
During the three months ended March 31, 2026, contract liabilities increased by $
9
6. Business Consolidation and Other Activities
2026
During the three months ended March 31, 2026, the company recorded net charges of $
2025
During the three months ended March 31, 2025, the company recorded net charges of $
7. | Supplemental Cash Flow Statement and Other Disclosures |
March 31, | ||||||
($ in millions) | 2026 | | 2025 | |||
| ||||||
Beginning of period: | | |||||
Cash and cash equivalents | $ | | | $ | | |
| | | ||||
| | | ||||
Cash reported in current assets held for sale | — | | | |||
Total cash, cash equivalents and restricted cash | $ | | | $ | | |
| ||||||
End of period: | | |||||
Cash and cash equivalents | $ | | | $ | | |
| | | ||||
| | |||||
Cash reported in current assets held for sale | — | | ||||
Total cash, cash equivalents and restricted cash | $ | | | $ | | |
The company’s restricted cash is primarily related to receivables factoring programs and represents amounts collected from customers that have not yet been remitted to the banks as of the end of the reporting period. Restricted cash also relates to consideration owed for business acquisitions.
Noncash investing activities include the acquisition of property, plant and equipment (PP&E) for which payment has not been made. These noncash capital expenditures are excluded from the unaudited condensed consolidated statements of cash flows. A summary of the PP&E acquired but not yet paid, is as follows:
March 31, | ||||||
($ in millions) | 2026 | | 2025 | |||
| ||||||
Beginning of period: | | |||||
PP&E acquired but not yet paid | $ | | | $ | | |
End of period: | | |||||
PP&E acquired but not yet paid | $ | | | $ | | |
Supplier Finance Programs
The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's regional supplier finance programs was $
10
balance sheets, and the associated payments are reflected in the cash flows from operating activities section of the unaudited condensed consolidated statements of cash flows.
8. Receivables, Net
March 31, | December 31, | |||||
($ in millions) | 2026 | | 2025 | |||
Trade accounts receivable | $ | | $ | | ||
Unbilled receivables | | | ||||
Less: Allowance for doubtful accounts | ( | ( | ||||
Net trade accounts receivable | | | ||||
Other receivables | | | ||||
$ | | $ | | |||
The company has entered into several regional accounts receivable factoring programs with various financial institutions for certain receivables of the company. The programs are accounted for as true sales of the receivables, with limited recourse to Ball, and had combined limits of approximately $
Other receivables include income and indirect tax receivables, aluminum scrap sale receivables and other miscellaneous receivables.
9. Inventories, Net
March 31, | December 31, | |||||
($ in millions) | | 2026 | | 2025 | ||
Raw materials and supplies | $ | | $ | | ||
Finished goods | | | ||||
Less: Inventory reserves | ( | ( | ||||
$ | | $ | | |||
10. Property, Plant and Equipment, Net
March 31, | December 31, | |||||
($ in millions) | | 2026 | | 2025 | ||
Land | $ | | $ | | ||
Buildings | | | ||||
Machinery and equipment | | | ||||
Construction-in-progress | | | ||||
| | |||||
Accumulated depreciation | ( | ( | ||||
$ | | $ | | |||
Depreciation expense was $
11
11. Goodwill
($ in millions) | | Beverage | | Beverage | | Beverage | | Other | | Total | |||||
Balance at December 31, 2025 | $ | | $ | | $ | | $ | | $ | | |||||
Additions | — | | — | — | | ||||||||||
Effects of currency exchange | — | ( | — | ( | ( | ||||||||||
Balance at March 31, 2026 | $ | | $ | | $ | | $ | | $ | | |||||
12. Intangible Assets, Net
March 31, | December 31, | |||||
($ in millions) | | 2026 | | 2025 | ||
Acquired customer relationships and other intangibles (net of accumulated amortization and impairment losses of $ | $ | | $ | | ||
Capitalized software (net of accumulated amortization of $ | | | ||||
Other intangibles (net of accumulated amortization of $ | | | ||||
$ | | $ | | |||
Total amortization expense of intangible assets was $
13. Other Assets
March 31, | December 31, | |||||
($ in millions) | | 2026 | | 2025 | ||
Long-term pension assets | $ | | $ | | ||
| | |||||
Investments in affiliates | | | ||||
Long-term deferred tax assets | | | ||||
Other | | | ||||
$ | | $ | | |||
Investments in affiliates primarily includes the company’s
In 2025, Ball acquired $
12
14. Leases
The company enters into operating leases for buildings, warehouses, office equipment, production equipment, land and other types of equipment. The company also enters into finance leases for certain plant equipment. Supplemental balance sheet information related to the company’s leases follows:
March 31, | December 31, | ||||||
($ in millions) | Balance Sheet Location | 2026 | 2025 | ||||
Operating leases: | |||||||
Operating lease ROU asset | $ | | $ | | |||
Current operating lease liabilities | | | |||||
Noncurrent operating lease liabilities | | | |||||
Finance leases: | |||||||
Finance lease ROU assets, net | | | |||||
Current finance lease liabilities | | | |||||
Noncurrent finance lease liabilities | | | |||||
15. Debt
Long-term debt outstanding and interest rates in effect, along with short-term debt outstanding, consisted of the following:
March 31, | December 31, | |||||
($ in millions) | | 2026 | | 2025 | ||
Senior Notes | ||||||
| | |||||
| | |||||
| | |||||
| | |||||
| | |||||
| | |||||
Senior Credit Facility (at variable rates) | ||||||
U.S. dollar revolver due November 2030 ( | | — | ||||
Multi-currency revolver due November 2030 | — | — | ||||
Term A loan due November 2030 ( | | | ||||
| | |||||
Other (including debt issuance costs) | ( | ( | ||||
| | |||||
Less: Current portion of long-term debt | ( | ( | ||||
Long-term debt | $ | | $ | | ||
Short-term debt | ||||||
Current portion of long-term debt | $ | | $ | | ||
Short-term uncommitted credit facilities | | | ||||
Short-term debt and current portion of long-term debt | $ | | $ | | ||
The company’s senior credit facilities include a $
During the first quarter of 2026, Ball paid down $
13
The fair value of Ball’s long-term debt was estimated to be $
The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The company’s most restrictive debt covenant requires it to maintain a leverage ratio (as defined) of no greater than
16. Taxes on Income
The company’s effective tax rate was
17. Employee Benefit Obligations
March 31, | December 31, | |||||
($ in millions) | 2026 | | 2025 | |||
Underfunded defined benefit pension liabilities | $ | | $ | | ||
Less: Current portion | ( | ( | ||||
Long-term defined benefit pension liabilities | | | ||||
Long-term retiree medical liabilities | | | ||||
Deferred compensation plans | | | ||||
Other | | | ||||
$ | | $ | | |||
Components of net periodic benefit cost associated with the company’s defined benefit pension plans were as follows:
Three Months Ended March 31, | ||||||||||||||||||
2026 | 2025 | |||||||||||||||||
($ in millions) | | U.S. | | Non-U.S. | | Total | | U.S. | | Non-U.S. | | Total | ||||||
Ball-sponsored plans: | ||||||||||||||||||
Service cost | $ | | $ | — | $ | | $ | | $ | — | $ | | ||||||
| | | | | | |||||||||||||
( | ( | ( | ( | ( | ( | |||||||||||||
— | | | — | | | |||||||||||||
| | | | | | |||||||||||||
Total net periodic benefit cost | $ | ( | $ | | $ | | $ | ( | $ | | $ | | ||||||
Non-service pension income of $
Contributions to the company’s defined benefit pension plans were $
14
2025, and such contributions are expected to be approximately $
In November 2023, the Trustee Board of the U.K. defined benefit pension plan entered into an agreement with an insurance company for a bulk annuity purchase, or “buy-in”, for its U.K. defined benefit pension plan to reduce retirement plan risk, while delivering promised benefits to plan participants. This transaction allows the company to reduce volatility by removing investment, longevity, mortality, interest rate and inflation risk upon the transfer of substantially all of the pension plan assets to the insurer in exchange for the group annuity insurance contract. At this time the company retains both the fair value of the annuity contract within plan assets and the pension benefit obligations related to these participants. The plan was frozen on April 5, 2024, and future service accruals were replaced with defined contribution benefits for the impacted employees. The company anticipates the “buy-out” will occur within the second half of 2026, which will trigger a pension settlement that will result in all plan balances, including accumulated pension components within other comprehensive income, being charged to expense as a noncash settlement charge. As of March 31, 2026, accumulated other comprehensive income included $
18. Equity and Accumulated Other Comprehensive Earnings (Loss)
The following tables provide additional details of the company’s equity activity:
Common Stock | Treasury Stock | Accumulated Other | ||||||||||||||||||||
Number of | Number of | Retained | Comprehensive | Noncontrolling | Total | |||||||||||||||||
($ in millions; share amounts in thousands) | | Shares | | Amount | | Shares | | Amount | | Earnings | | Earnings (Loss) | | Interest | | Equity | ||||||
Balance at December 31, 2025 | | $ | | ( | $ | ( | $ | | $ | ( | $ | — | $ | | ||||||||
Net earnings | — | — | — | — | | — | — | | ||||||||||||||
Other comprehensive earnings (loss), net of tax | — | — | — | — | — | | — | | ||||||||||||||
Common dividends | — | — | — | — | ( | — | — | ( | ||||||||||||||
Treasury stock purchases | — | — | ( | ( | — | — | — | ( | ||||||||||||||
Treasury shares reissued | — | — | | | — | — | — | | ||||||||||||||
Shares issued and stock-based compensation, net of shares exchanged | | | — | — | — | — | — | | ||||||||||||||
Business acquisitions | — | — | — | — | — | — | | | ||||||||||||||
Distributions from deferred compensation plans and other activity | — | — | — | | — | — | — | | ||||||||||||||
Balance at March 31, 2026 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Common Stock | Treasury Stock | Accumulated Other | ||||||||||||||||||||
Number of | Number of | Retained | Comprehensive | Noncontrolling | Total | |||||||||||||||||
($ in millions; share amounts in thousands) | | Shares | | Amount | | Shares | | Amount | | Earnings | | Earnings (Loss) | | Interest | | Equity | ||||||
Balance at December 31, 2024 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
Net earnings | — | — | — | — | | — | — | | ||||||||||||||
Other comprehensive earnings (loss), net of tax | — | — | — | — | — | | — | | ||||||||||||||
Common dividends | — | — | — | — | ( | — | — | ( | ||||||||||||||
Treasury stock purchases | — | — | ( | ( | — | — | — | ( | ||||||||||||||
Treasury shares reissued | — | — | | | — | — | — | | ||||||||||||||
Shares issued and stock-based compensation, net of shares exchanged | | | — | — | — | — | — | | ||||||||||||||
Distributions from deferred compensation plans and other activity | — | — | — | | — | — | — | | ||||||||||||||
Balance at March 31, 2025 | | $ | | ( | $ | ( | $ | | $ | ( | $ | | $ | | ||||||||
On January 29, 2025, the Board of Directors approved the repurchase by the company of up to $
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Accumulated Other Comprehensive Earnings (Loss)
The activity related to accumulated other comprehensive earnings (loss) was as follows:
($ in millions) | |
| | Pension and | Derivatives Designated as Hedges | | Accumulated | |||||
| ||||||||||||
Balance at December 31, 2025 | $ | ( | $ | ( | $ | | $ | ( | ||||
Other comprehensive earnings (loss) before reclassifications | ( | | | ( | ||||||||
Amounts reclassified into earnings | — | | | | ||||||||
Balance at March 31, 2026 | $ | ( | $ | ( | $ | | $ | ( | ||||
The following table provides additional details of the amounts reclassified into net earnings from accumulated other comprehensive earnings (loss):
Three Months Ended March 31, | ||||||
($ in millions) | | 2026 | | 2025 | ||
Gains (losses) on cash flow hedges: | ||||||
Commodity contracts recorded in net sales | $ | ( | $ | ( | ||
Commodity contracts recorded in cost of sales | | | ||||
Currency exchange contracts recorded in selling, general and administrative | | ( | ||||
Interest rate contracts recorded in interest expense | | — | ||||
Total before tax effect | ( | ( | ||||
Tax benefit (expense) on amounts reclassified into earnings | — | | ||||
Recognized gain (loss), net of tax | $ | ( | $ | ( | ||
Amortization and disposal of pension and other postretirement benefits: | ||||||
Actuarial gains (losses) | $ | ( | $ | ( | ||
Total before tax effect | ( | ( | ||||
Tax benefit (expense) on amounts reclassified into earnings | | | ||||
Recognized gain (loss), net of tax | $ | ( | $ | ( | ||
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19. Earnings and Dividends Per Share
Three Months Ended March 31, | ||||||
($ in millions, except per share amounts; shares in thousands) | | 2026 | | 2025 | ||
Earnings from continuing operations attributable to Ball Corporation, net of tax | $ | | $ | | ||
Discontinued operations, net of tax | — | ( | ||||
Net earnings attributable to Ball Corporation | $ | | $ | | ||
Basic weighted average common shares | | | ||||
Effect of dilutive securities | | | ||||
Weighted average shares applicable to diluted earnings per share | | | ||||
Basic - continuing operations | $ | | $ | | ||
Basic - discontinued operations | — | ( | ||||
Per basic share | $ | | $ | | ||
Diluted - continuing operations | $ | | $ | | ||
Diluted - discontinued operations | — | ( | ||||
Per diluted share | $ | | $ | | ||
Certain outstanding options were excluded from the diluted earnings per share calculation because they were anti-dilutive. The excluded options totaled approximately
The company declared and paid dividends of $
20. Financial Instruments and Risk Management
Policies and Procedures
The company employs established risk management policies and procedures, which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates, net investments in foreign operations and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance that these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to offset any amount owed with regard to open derivative positions.
Commodity Price Risk - The company manages commodity price risk in connection with market price fluctuations of aluminum through
Interest Rate Risk - The company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. To achieve these objectives, the company may use a variety of interest rate swaps, collars and options to manage its mix of floating and fixed-rate debt.
Currency Exchange Rate Risk - The company’s objective in managing exposure to currency fluctuations is to limit the exposure of cash flows and earnings from changes associated with currency exchange rate changes through the use of
17
various derivative contracts. In addition, at times the company manages earnings translation volatility through the use of currency option strategies, and the change in the fair value of those options is recorded in the company’s net earnings.
Net Investments in Foreign Operations Risk – The company is exposed to changes in foreign currencies impacting its net investments held in foreign subsidiaries. The company’s objective in managing exposure to net investments in foreign operations is to limit the foreign exchange translation risk associated with its net investments in non-U.S. dollar foreign entities. The company uses fixed-for-fixed cross currency swaps and euro-denominated debt designated as net investment hedges to achieve this objective.
The following table provides additional information related to the commercial risk management derivative instruments described above:
($ in millions) | March 31, 2026 | |||||||||||
Commercial risk area | Commodity | Currency | | Interest Rate | | Net Investment | ||||||
Notional amount of contracts | $ | | $ | | $ | | € | | ||||
Net gain (loss) included in AOCI, after-tax | | | | $ | ( | |||||||
Net gain (loss) included in AOCI, after-tax, expected to be recognized in net earnings within the next 12 months | | | | — | ||||||||
Longest duration of forecasted hedge transactions in years | ||||||||||||
In May 2025, Ball issued €
Common Stock Price Risk
The company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is marked to fair value using the company’s closing stock price at the end of the related reporting period. The company entered into total return swaps to reduce the company’s earnings exposure to these fair value fluctuations that will be outstanding through March 2027, and which have a combined notional value of
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Fair Value Measurements
Ball has classified all applicable financial derivative assets and liabilities as Level 2 within the fair value hierarchy as of March 31, 2026, and December 31, 2025, and presented those values in the tables below. The company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
March 31, 2026 | ||||||||||
($ in millions) | Balance Sheet Location | | Derivatives | | Derivatives not | | Total | |||
Assets: | ||||||||||
$ | | $ | — | $ | | |||||
— | | | ||||||||
| — | | ||||||||
Other current assets | $ | | $ | | $ | | ||||
$ | | $ | — | $ | | |||||
Other noncurrent assets | $ | | $ | — | $ | | ||||
| ||||||||||
Liabilities: | ||||||||||
$ | | $ | — | $ | | |||||
— | | | ||||||||
— | | | ||||||||
| — | | ||||||||
Other current liabilities | $ | | $ | | $ | | ||||
$ | | $ | — | $ | | |||||
| — | | ||||||||
Other noncurrent liabilities | $ | | $ | — | $ | | ||||
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December 31, 2025 | ||||||||||
($ in millions) | Balance Sheet Location | Derivatives | | Derivatives not | | Total | ||||
Assets: | ||||||||||
$ | | $ | — | $ | | |||||
— | | | ||||||||
| | | ||||||||
Other current assets | $ | | $ | | $ | | ||||
$ | | $ | — | $ | | |||||
Other noncurrent assets | $ | | $ | — | $ | | ||||
| ||||||||||
Liabilities: | ||||||||||
$ | | $ | | $ | | |||||
| | | ||||||||
Other current liabilities | $ | | $ | | $ | | ||||
$ | | $ | — | $ | | |||||
| — | | ||||||||
Other noncurrent liabilities | $ | | $ | — | $ | | ||||
The company uses closing spot and forward market prices as published by the London Metal Exchange, the Chicago Mercantile Exchange, Reuters and Bloomberg to determine the fair value of any outstanding aluminum, currency, energy, cross-currency swaps and interest rate spot and forward contracts. Option contracts are valued using a Black-Scholes model with observable market inputs for aluminum, currency and interest rates. The company values each of its financial instruments either internally using a single valuation technique, from a reliable observable market source or from third-party software. The present value discounting factor is based on the comparable time period Secured Overnight Financing Rate (SOFR). Ball performs validations of the company’s internally derived fair values reported for the company’s financial instruments on a quarterly basis utilizing counterparty valuation statements. The company additionally evaluates counterparty creditworthiness and, as of March 31, 2026, has not identified any circumstances requiring the reported values of the company’s financial instruments be adjusted.
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The following tables provide the effects of derivative instruments in the unaudited condensed consolidated statements of earnings:
Three Months Ended March 31, | ||||||||||||||
2026 | 2025 | |||||||||||||
($ in millions) | | Location of Gain (Loss) | | Cash Flow | Gain (Loss) on | | Cash Flow | | Gain (Loss) on | |||||
Commodity contracts - manage exposure to customer pricing | Net sales | $ | ( | $ | — | $ | ( | $ | — | |||||
Commodity contracts - manage exposure to supplier pricing | Cost of sales | | ( | | — | |||||||||
Interest rate contracts - manage exposure for outstanding debt | | — | — | — | ||||||||||
Currency contracts - manage currency exposure | | | ( | ( | ||||||||||
Equity contracts | Selling, general and administrative | — | | — | ( | |||||||||
Total | $ | ( | $ | | $ | ( | $ | ( | ||||||
The changes in accumulated other comprehensive earnings (loss) for derivatives designated as hedges were as follows:
Three Months Ended March 31, | ||||||
($ in millions) | | 2026 | | 2025 | ||
Amounts reclassified into earnings: | ||||||
Commodity contracts | $ | | $ | | ||
Interest rate contracts | ( | — | ||||
Currency exchange contracts | ( | | ||||
Change in fair value of hedges: | ||||||
Commodity contracts | | — | ||||
Interest rate contracts | | ( | ||||
Currency exchange contracts | | ( | ||||
Net investment hedge | | ( | ||||
Currency and tax impacts | ( | | ||||
$ | | $ | ( | |||
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21. Contingencies
Ball is subject to numerous lawsuits, claims or proceedings arising out of the ordinary course of business, including actions related to product liability; personal injury; the use and performance of company products; warranty matters; patent, trademark or other intellectual property infringement; contractual liability; the conduct of the company’s business; tax reporting in domestic and non-U.S. jurisdictions; workplace safety; environmental; trade compliance and other matters. The company has also been identified as a potentially responsible party (PRP) at several waste disposal sites under U.S. federal and related state environmental statutes and regulations and may have joint and several liability for any investigation and remediation costs incurred with respect to such sites. In addition, the company has received claims alleging that employees in certain plants have suffered damages due to exposure to alleged workplace hazards. Some of these lawsuits, claims and proceedings involve substantial amounts, including as described below, and some of the environmental proceedings involve potential monetary costs or sanctions that may be material. Ball has denied liability with respect to many of these lawsuits, claims and proceedings and is vigorously defending such lawsuits, claims and proceedings. The company carries various forms of commercial, property and casualty, and other forms of insurance; however, such insurance may not be applicable or adequate to cover the costs associated with a judgment against Ball with respect to these lawsuits, claims and proceedings. The company estimates that potential for all currently known and estimable environmental matters are approximately $
In September 2025, the company received notice from the U.S. Customs and Border Protection challenging the tariff classification and applicable rate of duty of certain aluminum imports. This matter is now concluded. Accordingly, the company has not recorded a liability with respect to this matter.
The company’s operations in Brazil are involved in various governmental assessments, which have historically mainly related to claims for taxes on the internal transfer of inventory, gross revenue taxes, and indirect tax incentives and deductibility of goodwill. In addition, one of the company’s Brazilian subsidiaries received an income tax assessment focused on the disallowance of deductions associated with the acquisition price paid to a third party for a portion of its operations. Based on the information available at the present time, the Company is unable to predict the ultimate outcome of these claims including the amount of reasonably possible loss and intends to vigorously defend these matters.
22. Indemnifications and Guarantees
General Guarantees
The company or its appropriate consolidated direct or indirect subsidiaries have made certain indemnities, commitments and guarantees under which the specified entity may be required to make payments in relation to certain transactions. These indemnities, commitments and guarantees are in contracts to which the company or its subsidiaries are a party, including agreements with customers of the subsidiaries in connection with the sales of their packaging products and services; guarantees to suppliers of subsidiaries of the company guaranteeing the performance of the respective entity under a purchase agreement, construction contract, renewable energy purchase contract or other commitment; guarantees in respect of certain non-U.S. subsidiaries’ pension plans; indemnities for liabilities associated with the infringement of third-party patents, trademarks or copyrights under various types of agreements; indemnities to various lessors in connection with facility, equipment, furniture and other personal property leases for certain claims arising from such leases; indemnities pursuant to agreements relating to certain joint ventures; indemnities in connection with the sale of businesses or substantially all of the assets and specified liabilities of businesses; and indemnities to directors, officers and employees of the company to the extent permitted under the laws of the State of Indiana and the United States of America. The duration of these indemnities, commitments and guarantees varies and, in certain cases, is indefinite.
In addition, many of these indemnities, commitments and guarantees do not provide for any limitation on the maximum potential future payments the company could be obligated to make. As such, the company is unable to reasonably estimate its potential exposure under these items.
The company has not recorded any material liabilities for these indemnities, commitments and guarantees in the accompanying unaudited condensed consolidated balance sheets. The company does, however, accrue for payments
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under promissory notes and other evidence of incurred indebtedness and for losses for any known contingent liability, including those that may arise from indemnifications, commitments and guarantees, when future payment is both reasonably estimable and probable. Finally, the company carries specific and general liability insurance policies and has obtained indemnities, commitments and guarantees from third-party purchasers, sellers and other contracting parties, which the company believes would, in certain circumstances, provide recourse to certain claims arising from these indemnifications, commitments and guarantees.
Debt Guarantees
The company’s and its subsidiaries’ obligations under the senior notes and senior credit facilities (or, in the case of U.S. domiciled non-U.S. subsidiaries under the senior credit facilities, the obligations of non-U.S. credit parties only) are guaranteed on a full, unconditional and joint and several basis by certain of the company’s domestic subsidiaries and the domestic subsidiary borrowers, and obligations of other guarantors and the subsidiary borrowers under the senior credit facilities are guaranteed by the company, in each case with certain exceptions. These guarantees are required in support of the senior notes and senior credit facilities referred to above, are coterminous with the terms of the respective note indentures, senior notes and credit agreement, and they could be enforced by the holders of the obligations thereunder during the continuation of an event of default under the note indentures, the senior notes and/or the credit agreement. The maximum potential amounts which could be required to be paid under such guarantees are essentially equal to then-outstanding obligations under the respective senior notes or the credit agreement (or, in the case of U.S. domiciled non-U.S. subsidiaries under the senior credit facilities, the obligations of non-U.S. credit parties only), with certain exceptions. All obligations under the guarantees of the senior credit facilities are secured, with certain exceptions, by a valid first priority perfected lien or pledge on (i)
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management’s discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements (consolidated financial statements) and accompanying notes included in Item 1 of this Quarterly Report on Form 10-Q, which include additional information about our accounting policies, practices and the transactions underlying our financial results. The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires us to make estimates and assumptions that affect the reported amounts in our consolidated financial statements and the accompanying notes, including various claims and contingencies related to lawsuits, taxes, environmental and other matters arising during the normal course of business. We apply our best judgment, our knowledge of existing facts and circumstances and actions that we may undertake in the future in determining the estimates that affect our consolidated financial statements. We evaluate our estimates on an ongoing basis using our historical experience, as well as other factors we believe appropriate under the circumstances, such as current economic conditions, and adjust or revise our estimates as circumstances change. As future events and their effects cannot be determined with precision, actual results may differ from these estimates. Ball Corporation and its subsidiaries are referred to collectively as “Ball Corporation,” “Ball,” “the company,” “we” or “our” in the following discussion and analysis.
OVERVIEW
Business Overview and Industry Trends
Ball Corporation is one of the world’s leading aluminum packaging suppliers. With a growth mindset and by pursuing operational excellence, we lean on our competitive strengths to reach our financial goals. We are focused on maintaining our strong financial position by listening to and partnering with our global customers, delivering operational efficiencies and an innovative product portfolio from our best-in-class manufacturing facilities and returning value to shareholders via share repurchases and dividends. In the aluminum packaging industry, sales and earnings can be increased by reducing costs, increasing prices, developing new products, expanding volume and making strategic acquisitions.
We sell our aluminum packaging products mainly to large, multinational beverage, personal care and household products companies with which we have developed long-term relationships. This is evidenced by our high customer retention and our large number of long-term supply contracts. While we have a diversified customer base, we sell a significant portion of our packaging products to major companies and brands, as well as to numerous regional customers. The overall global aluminum packaging industry is growing and is expected to continue to grow in the medium to long term.
We purchase our raw materials from relatively few suppliers. We also have exposure to inflation, in particular the rising costs of raw materials, as well as other direct cost inputs. We mitigate our exposure to the changes in the costs of aluminum through the inclusion of provisions in contracts covering the majority of our volumes to pass-through aluminum price changes, as well as through the use of derivative instruments. The pass-through provisions generally result in proportional increases or decreases in sales and costs with a greatly reduced impact, if any, on net earnings; however, there may be timing differences of when the costs are passed through. Because of our customer and supplier concentration, our business, financial condition and results of operations could be adversely affected by the loss, insolvency or bankruptcy of a major customer or supplier or a change in a supply agreement with a major customer or supplier, although our contract provisions generally mitigate the risk of customer loss, and our long-term relationships represent a known, stable customer base.
From time to time, we have evaluated and expect to continue to evaluate possible transactions that we believe will benefit the company and our shareholders, which may include strategic acquisitions, divestitures of parts of our company or equity investments. At any time, we may be engaged in discussions or negotiations at various stages of development with respect to one or more possible transactions or may have entered into non-binding letters of intent. As part of any such initiatives, we may participate in processes being run by other companies or leading our own activities.
RESULTS OF CONSOLIDATED OPERATIONS
Management’s discussion and analysis for our results of operations on a consolidated and segment basis include a quantification of factors that had a material impact. Other factors that did not have a material impact, but that are significant to understand the results, are qualitatively described.
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Geopolitical Conflicts
Ball is monitoring current geopolitical conflicts across the globe and may experience increased costs for inputs such as energy and transportation, as well as aluminum, due to the negative impact on the global economy and reduction in supply. Ongoing conflicts have the potential to impact Ball across its global business, and it is not possible to accurately predict all future impacts. As such, current conflicts and the resulting effects have the potential to materially impact the company’s results of operations.
Consolidated Sales and Earnings
Three Months Ended March 31, | ||||||||
($ in millions) | | 2026 | | 2025 | | |||
Net sales | $ | 3,603 | $ | 3,097 | ||||
Net earnings attributable to Ball Corporation | 205 | 179 | ||||||
Net earnings attributable to Ball Corporation as a % of net sales | 6 | % | 6 | % | ||||
Sales in the three months ended March 31, 2026, increased $506 million compared to the same period in 2025 primarily due to increases of $345 million from price/mix, mainly from higher aluminum prices, $33 million from higher volume and $107 million from currency translation.
Net earnings attributable to Ball Corporation for the three months ended March 31, 2026, increased $26 million compared to the same period in 2025 primarily due to increases from the results of the reportable segments discussed below.
Cost of Sales (Excluding Depreciation and Amortization)
Cost of sales, excluding depreciation and amortization, was $2,957 million and $2,493 million for the three months ended March 31, 2026, and 2025, respectively. These amounts represented 82 percent and 80 percent of consolidated net sales for the three months ended March 31, 2026, and 2025, respectively. The increase for the three months ended March 31, 2026, was primarily due to higher raw materials costs of $357 million, driven by higher aluminum prices and higher volumes.
Depreciation and Amortization
Depreciation and amortization expense was $159 million and $150 million for the three months ended March 31, 2026, and 2025, respectively. These amounts represented 4 percent and 5 percent of consolidated net sales for the three months ended March 31, 2026, and 2025, respectively.
Selling, General and Administrative
Selling, general and administrative was $150 million and $149 million for the three months ended March 31, 2026, and 2025, respectively. These amounts represented 4 percent and 5 percent of consolidated net sales for the three months ended March 31, 2026, and 2025, respectively.
Business Consolidation and Other Activities
Business consolidation and other activities resulted in charges of $11 million and $13 million for the three months ended March 31, 2026, and 2025, respectively. The 2026 amounts include costs for previously announced facility closures. The 2025 amount includes a loss related to the aluminum cups business transaction and costs for previously announced facility closures. Further details regarding business consolidation and other activities are provided in Note 6.
Interest Income
Interest income was $10 million and $7 million for the three months ended March 31, 2026, and 2025, respectively.
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Interest Expense
Interest expense was $78 million and $70 million for the three months ended March 31, 2026, and 2025, respectively. Interest expense as a percentage of average borrowings decreased approximately 40 basis points from 4.4 percent for the three months ended March 31, 2025, to 4.0 percent for the three months ended March 31, 2026. The increase in interest expense for the three months ended March 31, 2026, was primarily driven by a higher amount of weighted average principal outstanding during the year, partially offset by lower weighted average interest rates on outstanding debt during the year.
Income Taxes
The effective tax rate for the three months ended March 31, 2026, was 24.0 percent, compared to 23.1 percent for the same period in 2025. The increase of 0.9 percentage points for the three months ended March 31, 2026, was due to increased non-U.S. rate differences, U.S. tax on foreign items net of credits and effects of share-based compensation. This was partially offset by the effects of U.S. permanent differences. Similar impacts may occur in future periods, but given their inherent uncertainty, the company is unable to reasonably estimate their potential future impacts.
RESULTS OF BUSINESS SEGMENTS
Segment Results
Ball’s operations are organized and reviewed by management along its product lines and geographical areas, and its operating results are presented in the three reportable segments discussed below. As of first quarter of 2026, the manufacturing facilities in the beverage packaging, other non-reportable segment are now included in the beverage packaging, EMEA segment. In addition, the company made changes to its measure of profitability, comparable segment operating earnings, which better aligns to how the CODM assesses segment performance and resource allocation. The company’s segment results and disclosures for the three months ended March 31, 2025, have been retrospectively recast to conform to current year presentation. See Note 3 for further details on the changes to segment results.
Beverage Packaging, North and Central America
Three Months Ended March 31, | |||||||||
($ in millions) | | 2026 | | 2025 | | ||||
Net sales | $ | 1,776 | $ | 1,463 | |||||
Comparable operating earnings | 205 | 200 | |||||||
Comparable operating earnings as a % of segment net sales | 12 | % | 14 | % | |||||
Ball acquired an aluminum beverage can manufacturing facility in Winter Haven, Florida, in the first quarter of 2025 as part of its acquisition of Florida Can Manufacturing. See Note 4 for further details on the acquisition.
Segment sales for the three months ended March 31, 2026, were $313 million higher compared to the same period in 2025. The increase for the three months ended March 31, 2026, was primarily due to increases of $271 million from price/mix, mainly from higher aluminum prices, and $42 million from higher volume.
Comparable operating earnings for the three months ended March 31, 2026, were $5 million higher compared to the same period in 2025. The increase for the three months ended March 31, 2026, was primarily due to increases of $29 million from higher volume and $26 million from price/mix, partially offset by $49 million from higher costs.
Beverage Packaging, EMEA
Three Months Ended March 31, | ||||||||
($ in millions) | | 2026 | | 2025 | | |||
Net sales | $ | 1,111 | $ | 958 | ||||
Comparable operating earnings | 134 | 111 | ||||||
Comparable operating earnings as a % of segment net sales | 12 | % | 12 | % | ||||
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Ball acquired an 80 percent capital share of Benepack’s European beverage can manufacturing business from ORG Technology Co. Ltd. (ORG), in the first quarter of 2026. See Note 4 for further details on the acquisition.
Segment sales for the three months ended March 31, 2026, were $153 million higher compared to the same period in 2025. The increase for the three months ended March 31, 2026, was primarily due to increases of $32 million from higher volume and $92 million from currency translation.
Comparable operating earnings for the three months ended March 31, 2026, were $23 million higher compared to the same period in 2025. The increase for the three months ended March 31, 2026, was primarily due to higher volume and currency translation.
Beverage Packaging, South America
Three Months Ended March 31, | ||||||||
($ in millions) | | 2026 | | 2025 | | |||
Net sales | $ | 585 | $ | 544 | ||||
Comparable operating earnings | 67 | 67 | ||||||
Comparable operating earnings as a % of segment net sales | 11 | % | 12 | % | ||||
Segment sales for the three months ended March 31, 2026, were $41 million higher compared to the same period in 2025. The increase for the three months ended March 31, 2026, was primarily due to higher price/mix of $55 million, mainly from higher aluminum prices, partially offset by a decrease from lower volume.
Comparable operating earnings for the three months ended March 31, 2026, were flat when compared to the same period in 2025. This was primarily due to an increase in price/mix, offset by decreases from higher costs and lower volume.
NEW ACCOUNTING PRONOUNCEMENTS
For information regarding recent accounting pronouncements, see Note 2 to the consolidated financial statements included within Item 1 of this report on Form 10-Q.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Cash Flows and Capital Expenditures
Our primary sources of liquidity are cash provided by operating activities and external borrowings. We believe that cash flows from operating activities and cash provided by short-term, long-term and committed revolver borrowings, when necessary, will be sufficient to meet our ongoing operating requirements, scheduled principal and interest payments on debt, dividend payments, anticipated share repurchases and anticipated capital expenditures. We have limited near-term debt maturities and our senior credit facilities are in place until 2030. The following table summarizes our cash flows:
Three Months Ended March 31, | |||||||
($ in millions) | | 2026 | | 2025 | | ||
Cash flows provided by (used in) operating activities | $ | (777) | $ | (665) | |||
Cash flows provided by (used in) investing activities | (306) | (207) | |||||
Cash flows provided by (used in) financing activities | 605 | 396 | |||||
Cash flows used in operating activities were $777 million in 2026, primarily driven by working capital outflow of $1.15 billion, partially offset by earnings from continuing operations of $205 million and a reconciling adjustment to operating cash flow of $159 for depreciation and amortization. In a dynamic economic environment, payment terms with our customers and vendors become a more important element of total mix of information used to negotiate our contract terms. At March 31, 2026, a change of one day in days sales outstanding will impact cash flows provided by (used in) operating activities by $40 million, a change of one day in days payable outstanding will impact cash flows provided by (used in) operating activities by $33 million and a change of one day in days inventory on hand will impact cash flows provided by (used in) operating activities by $33 million.
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Cash flows used in investing activities were $306 million in 2026, primarily driven by capital expenditures of $161 million, $75 million of cash consideration, net of cash acquired, for the acquisition of Benepack’s European beverage can manufacturing business and $52 million for the purchase of notes linked to the stock market performance of ORG. See Note 4 for further details on the acquisition. See Note 13 for further details on the equity-linked notes.
Cash flows provided by financing activities were $605 million in 2026, primarily driven by a net inflow from long-term and short-term borrowing of $650 million. See Note 15 for further details on the company’s borrowings and additional amounts available.
We have entered into several regional accounts receivable factoring programs with various financial institutions for certain of our accounts receivable. The programs are accounted for as true sales of the receivables, with limited recourse to Ball, and had combined limits of approximately $1.77 billion and $1.82 billion at March 31, 2026, and December 31, 2025, respectively. A total of $308 million and $364 million were available for sale under these programs as of March 31, 2026, and December 31, 2025, respectively. The company has recorded expense related to its factoring programs of $10 million for the three months ended March 31, 2026, and 2025, respectively, and has presented these amounts in selling, general and administrative in its unaudited condensed consolidated statements of earnings.
The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's regional supplier finance programs was $229 million and $424 million at March 31, 2026, and December 31, 2025, respectively. These amounts are classified within accounts payable on the unaudited condensed consolidated balance sheets, and the associated payments are reflected in the cash flows from operating activities section of the unaudited condensed consolidated statements of cash flows.
Contributions to the company’s defined benefit pension plans were $7 million in the first three months of 2026 and 2025, and such contributions are expected to be approximately $29 million for the full year of 2026. This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors. The company anticipates a “buy-out” for its U.K. defined benefit pension plan will occur within the second half of 2026, which will trigger a pension settlement that will result in all plan balances, including accumulated pension components within other comprehensive income, being charged to expense as a noncash settlement charge. As of March 31, 2026, accumulated other comprehensive income included $463 million of unrecognized pension losses, expected to be recognized upon settlement.
The company expects that 2026 capital expenditures for property, plant and equipment will likely be in the range of $600 million. Approximately $280 million of capital expenditures for property, plant and equipment were contractually committed as of March 31, 2026, and the company intends to return approximately $210 million to shareholders in the form of dividends for the full year of 2026, inclusive of the cash dividend of 20 cents per share, payable June 15, 2026, to shareholders of record as of June 1, 2026.
As of March 31, 2026, approximately $622 million of our cash was held outside of the U.S. In the event that we would need to utilize any of the cash held outside of the U.S. for purposes within the U.S., there are no material legal or other economic restrictions regarding the repatriation of cash from any of the countries outside the U.S. where we have cash. The company believes its U.S. operating cash flows and cash on hand, as well as availability under its long-term, revolving credit facilities, uncommitted short-term credit facilities and accounts receivable factoring programs, will be sufficient to meet the cash requirements of the U.S. portion of our ongoing operations, scheduled principal and interest payments on U.S. debt, dividend payments, capital expenditures and other U.S. cash requirements. If non-U.S. funds are needed for our U.S. cash requirements and we are unable to provide the funds through intercompany financing arrangements, we may be required to repatriate funds from non-U.S. locations where the company has previously asserted indefinite reinvestment of funds outside the U.S.
Based on its indefinite reinvestment assertion, the company has not provided deferred taxes on earnings in certain non-U.S. subsidiaries because such earnings are intended to be indefinitely reinvested in its international operations. It is not practical to estimate the additional taxes that might become payable if these earnings were remitted to the U.S.
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Share Repurchases
The company had immaterial share repurchase activity during the three months ended March 31, 2026, compared to $555 million of repurchases during the same period of 2025. The company plans to continue capital return to shareholders via an estimated $600 million in share repurchases in 2026.
On January 29, 2025, the Board of Directors approved the repurchase by the company of up to $4.00 billion in shares of its common stock through the end of 2027. This repurchase authorization replaced all previous authorizations. At March 31, 2026, $2.93 billion remains available to be repurchased.
Debt Facilities and Other Activities
Given our cash flow projections and unused credit facilities that are available until November 2030, our liquidity is expected to meet our ongoing cash and debt service requirements. Total debt of $7.86 billion and $7.01 billion was outstanding at March 31, 2026, and December 31, 2025, respectively.
The company’s senior credit facilities include a $1.50 billion term loan and long-term multi-currency revolving facilities that mature in November 2030, which provide the company with up to U.S. dollar equivalent of $2.00 billion.
At March 31, 2026, approximately $1.24 billion was available under the company’s long-term, multi-currency committed revolving credit facilities. The company also had approximately $940 million of short-term uncommitted credit facilities available at March 31, 2026, of which $139 million was outstanding and due on demand. At December 31, 2025, the company had $19 million outstanding under short-term uncommitted credit facilities.
While ongoing financial and economic conditions in certain areas may raise concerns about credit risk with counterparties to derivative transactions, the company mitigates its exposure by allocating the risk among various counterparties and limiting exposure to any one party. We also monitor the credit ratings of our suppliers, customers, lenders and counterparties on a regular basis.
We were in compliance with the leverage ratio requirement at March 31, 2026, and for all prior periods presented, and have met all debt payment obligations. The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of our debt covenants requires us to maintain a leverage ratio (as defined) of no greater than 5.0 times, which will change to 4.5 times as of March 31, 2026. As of March 31, 2026, the company could borrow an additional $1.93 billion under its long-term multi-currency committed revolving facilities and short-term uncommitted credit facilities. Additional details about our debt are available in Note 15 accompanying the consolidated financial statements within Item 1 of this report.
Benepack
In January 2026, the company acquired an 80 percent capital share of Benepack’s European beverage can manufacturing business from ORG Technology Co. Ltd. The business includes two manufacturing facilities, one in Belgium and one in Hungary, and are included in Ball’s beverage packaging, EMEA, segment. See Note 4 for further details.
CONTINGENCIES, INDEMNIFICATIONS AND GUARANTEES
Details of the company’s contingencies, legal proceedings, indemnifications and guarantees are available in Note 21 and Note 22 accompanying the consolidated financial statements within Item 1 of this report. The company is routinely subject to litigation incidental to operating its businesses and has been designated by various federal, state, and international environmental agencies as a potentially responsible party, along with numerous other companies, for the clean-up of several hazardous waste sites.
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Guaranteed Securities
The company’s senior notes are guaranteed on a full and unconditional, joint and several basis by the issuer of the company’s senior notes and the subsidiaries that guarantee the notes (the obligor group). The entities that comprise the obligor group are 100 percent owned by the company. As described in the supplemental indentures governing the company’s existing senior notes, the senior notes are guaranteed by any of the company’s domestic subsidiaries that guarantee any other indebtedness of the company.
The following summarized financial information relates to the obligor group as of March 31, 2026, and December 31, 2025. Intercompany transactions, equity investments and other intercompany activity between obligor group subsidiaries have been eliminated from the summarized financial information. Investments in subsidiaries not forming part of the obligor group have also been eliminated.
Three Months Ended | |||
($ in millions) | March 31, 2026 | ||
Net sales | $ | 1,751 | |
Gross profit (a) | 208 | ||
Net earnings | 112 | ||
Net earnings attributable to Ball Corporation | 112 | ||
| (a) | Gross profit is shown after depreciation and amortization related to cost of sales of $41 million for the three months ended March 31, 2026. |
March 31, | December 31, | |||||
($ in millions) | | 2026 | | 2025 | ||
Current assets | $ | 2,637 | $ | 2,222 | ||
Noncurrent assets | 13,630 | 13,453 | ||||
Current liabilities | 3,778 | 3,399 | ||||
Noncurrent liabilities | 12,843 | 12,761 | ||||
Included in the amounts disclosed in the table above, at March 31, 2026, and December 31, 2025, the obligor group held receivables due from other subsidiary companies of $795 million and $503 million, respectively, long-term notes receivable due from other subsidiary companies of $10.07 billion and $9.93 billion, respectively, payables due to other subsidiary companies of $1.09 billion, and long-term notes payable due to other subsidiary companies of $5.06 billion and $4.97 billion, respectively.
For the three months ended March 31, 2026, the obligor group recorded the following transactions with other subsidiary companies: sales to them of $183 million, net credits from them of $13 million, and net interest income from them of $70 million.
A description of the terms and conditions of the company’s debt guarantees is located in Note 22 of Item 1 of this report.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The company employs established risk management policies and procedures which seek to reduce the company’s commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates, net investments in foreign operations and prices of the company’s common stock with regard to common share repurchases and the company’s deferred compensation stock plan. However, there can be no assurance that these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the company’s master derivative agreements, the non-defaulting party has the option to set off any amounts owed with regard to open derivative positions. Further details are available in Item 7A within Ball’s 2025 Annual Report on Form 10-K filed on February 19, 2026, and in Note 20 accompanying the consolidated financial statements included within Item 1 of this report.
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Item 4. CONTROLS AND PROCEDURES
Our chief executive officer and chief financial officer participated in management’s evaluation of our disclosure controls and procedures, as defined by the Securities and Exchange Commission (SEC), as of the end of the period covered by this report and concluded that our controls and procedures were effective. There were no changes to internal controls during the company’s first quarter of 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
FORWARD-LOOKING STATEMENTS
This report contains “forward-looking” statements concerning future events and financial performance. Words such as “expects,” “anticipates,” “estimates,” “will,” “believe,” “likely,” “continue,” “goal” and similar expressions typically identify forward looking statements, which are generally any statements other than statements of historical fact. For example, the forward-looking statements in this Form 10-Q include statements relating to our plans, expectations and intentions. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements, and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. Ball undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Ball’s Form 10-K, which are available on Ball’s website and at www.sec.gov. Additional factors include among others: supply and demand constraints, fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; power and supply chain interruptions; customer and supplier consolidation; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass-through increased costs; footprint adjustments and other manufacturing changes, including the opening and closing of facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; war, political instability, sanctions, and other uncertainties surrounding geopolitical events and governmental policies including relating to the conflicts between the United States and Iran, and Russia and Ukraine and the impact of these conflicts on Ball’s operations in Europe, the Middle East and Africa regions; changes in foreign exchange or tax rates; tariffs, trade actions, or other governmental actions; unfavorable mandatory deposit or packaging laws; regulatory actions or issues including those related to tax, environmental regulation, social and governance reporting, competition, health and workplace safety, including governmental actions or public concerns affecting products filled in Ball’s containers, or chemicals or substances used in raw materials or in the manufacturing process; changes in climate and weather and related events such as drought, wildfires, storms, hurricanes, tornadoes and floods; the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; strikes; disease; pandemic; labor cost changes; technological developments and innovations; the ability to manage cyber threats; litigation; inflation; pension changes; changes in the rates of return on assets of Ball’s defined benefit retirement plans; reduced cash flow; interest rates affecting Ball’s debt; successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on Ball’s operating results and business generally.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
There were no events required to be reported under Item 1 for the three months ended March 31, 2026, except as discussed in Note 21 to the consolidated financial statements included within Part I, Item 1 of this report.
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Item 1A. Risk Factors
There were no changes required to be reported under Item 1A for the three months ended March 31, 2026.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table summarizes the company’s repurchases of its common stock during the first quarter of 2026.
Purchases of Securities | ||||||||||
| Total Number of Shares Purchased (a) | | Average Price Paid per Share | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) | | Maximum Value of Shares that May Yet Be Purchased Under the Plans or Programs (b) | |||
January 1 to January 31, 2026 | — | $ | — | — | $ | 2,925,127,964 | ||||
February 1 to February 28, 2026 | 19,752 | 52.97 | 19,752 | 2,924,081,701 | ||||||
March 1 to March 31, 2026 | — | — | — | 2,924,081,701 | ||||||
Total | 19,752 | 19,752 | ||||||||
| (a) | Includes any open market purchases (on a trade-date basis), share repurchase agreements and/or shares retained by the company to settle employee withholding tax liabilities. |
| (b) | The company has an ongoing repurchase program for which shares are authorized from time to time by Ball’s Board of Directors. On January 29, 2025, the Board approved the repurchase by the company of up to $4.00 billion in shares of its common stock through the end of 2027. This repurchase authorization replaced all previous authorizations. |
Item 3. Defaults Upon Senior Securities
There were no events required to be reported under Item 3 for the three months ended March 31, 2026.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
There were
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Item 6. Exhibits
3(i) | ||
3(ii) | ||
10.1 | ||
31.1 | | |
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definitions Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | The cover page of the company’s quarterly report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL (contained in Exhibit 101), the: (i) Unaudited Condensed Consolidated Statement of Earnings, (ii) Unaudited Condensed Statement of Comprehensive Earnings (Loss), (iii) Unaudited Condensed Consolidated Balance Sheet, (iv) Unaudited Condensed Consolidated Statement of Cash Flows and (v) Notes to the Unaudited Condensed Consolidated Financial Statements. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Ball Corporation | ||
(Registrant) | ||
By: | /s/ Daniel J. Rabbitt | |
Daniel J. Rabbitt | ||
Senior Vice President and Chief Financial Officer | ||
Date: | May 5, 2026 | |
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