Crown (CCK) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales were $3.04 billion, down from $3.1 billion, as higher beverage can shipments in the Americas and Europe were offset by lower raw material costs and unfavorable FX.

• Net income attributable to Crown Holdings rose to $174 million from $157 million, with reported EPS at $1.45 and adjusted EPS at $1.81, both up year-over-year.

• Free cash flow for the first half reached a record $178 million, driven by operational performance and reduced capital spending.

• Net leverage improved to 3.2x from 4.0x year-over-year.

• The company continues to focus on profitable growth, cash flow generation, and shareholder returns through dividends and share repurchases.

Financial highlights

• Segment income increased to $437 million from $414 million, led by global beverage operations.

• Americas Beverage segment income rose 15% on 10% volume growth; North America up 9%, Brazil up 12%.

• European Beverage shipments grew 7%, with segment income up 27%.

• Asia Pacific segment margin reached 19% of net sales, with income up nearly 45% despite a 5% volume decline.

• Operating cash flow for the first half of 2024 was $343 million, up from $293 million in the prior year period.

Outlook and guidance

• Q3 adjusted EPS projected at $1.75–$1.85; full-year 2024 diluted EPS guidance raised to $6.00–$6.25.

• 2024 adjusted free cash flow expected to be at least $750 million, with capital spending capped at $500 million.

• Net leverage expected to fall below 3.0x by year-end, with a long-term target of 2.5x.

• Board authorized a new $2 billion share repurchase program through 2027, replacing the previous $3 billion program.

• Proceeds of approximately $300 million from the sale of the Eviosys stake are anticipated by year-end 2024.