Ball (BALL) Q3 2024 earnings summary

Executive summary

• Delivered strong Q3 2024 results, with $1.25B returned to shareholders in the first nine months and a target of over $1.6B by year-end through buybacks and dividends.

• Completed the $5.6B divestiture of the aerospace business in February 2024, resulting in a $4.67B pre-tax gain and a strategic shift in operations.

• Acquired Alucan Entec for €82M, expanding European extruded aluminum aerosol and bottle capacity.

• Global beverage can shipments were flat year-over-year in Q3, up 2% year-to-date; full-year shipment growth expected in low single digits.

• Focused on operational excellence, cost management, and shareholder value creation.

Financial highlights

• Q3 2024 comparable diluted EPS was $0.91 (up from $0.83 in Q3 2023); GAAP diluted EPS was $0.65.

• Q3 2024 net sales were $3.08B (down from $3.11B YoY); nine-month net earnings surged to $4.04B, driven by the aerospace sale.

• Q3 comparable net earnings rose 6% YoY to $278M; Q3 net earnings attributable to Ball were $197M.

• Interest expense fell to $67M in Q3 2024 from $122M YoY, reflecting debt reduction post-aerospace sale.

• Free cash flow for the first nine months was $(762)M; adjusted free cash flow was $(278)M after adding back $484M in aerospace-related tax payments.

Outlook and guidance

• Full-year comparable diluted EPS expected to grow mid-single digits plus off 2023 base of $2.90; targeting over 10% per annum diluted comparable EPS growth, including in 2025.

• Anticipates strong adjusted free cash flow and over $1.6B returned to shareholders in 2024.

• 2024 CapEx on track at $650M, down $400M YoY; $245M planned for dividends.

• Year-end 2024 net debt to comparable EBITDA targeted below 2.5x; currently at 2.2x.

• Full-year effective tax rate expected slightly above 21%; interest expense around $300M.