Ball (BALL) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with global beverage can shipments up 2.8% and extruded aluminum aerosol shipments up 5.6% year-over-year.

• Completed sale of aerospace business in February 2024, resulting in a significant gain and strategic shift; net earnings for H1 2024 were $3.84 billion, driven by the aerospace sale.

• Returned $790 million to shareholders in H1 2024 and is on track to exceed $1.6 billion for the year through buybacks and dividends.

• Now operates three reportable segments: beverage packaging North and Central America, EMEA, and South America.

• Included in the FTSE4Good Index, reflecting strong ESG practices.

Financial highlights

• Q2 2024 comparable diluted EPS was $0.74, up from $0.61 in Q2 2023; GAAP diluted EPS was $0.51 versus $0.55.

• Q2 2024 net sales were $2.96 billion, down from $3.07 billion in Q2 2023; Q2 comparable net earnings were $232 million.

• H1 2024 net earnings attributable to Ball were $3.84 billion, including a $3.39 billion after-tax gain from the aerospace sale.

• Interest expense decreased to $68 million in Q2 2024 from $116 million in Q2 2023.

• Year-end 2024 net debt to comparable EBITDA expected below 2.5x; currently at 2.3x.

Outlook and guidance

• Full-year global shipments expected to grow low to mid-single digits; mid-single digit plus growth in comparable diluted EPS for 2024, off 2023's $2.90 per share.

• Shareholder returns via repurchases and dividends expected to exceed $1.6 billion in 2024.

• 2024 CapEx targeted at $650 million, a $400 million reduction year-over-year.

• Long-term diluted EPS growth targeted at 10%+ per annum.

• Strong free cash flow and EVA generation anticipated, supporting both investment and shareholder returns.