Ball Corp Reports Strong 2024 Earnings but Faces Challenges in 2025
Ball Corp (NYSE:BALL) has delivered solid financial results for 2024, reporting a 9.3% increase in fourth-quarter comparable diluted earnings per share (EPS), reaching $0.84, up from $0.78 in the same period last year. The company also posted $977 million in comparable net earnings for the full year, signaling a strong performance.
Return on Shareholder Investment
In a significant move to enhance shareholder value, Ball Corp returned $1.96 billion to investors through share repurchases and dividends in 2024. Looking ahead, the company plans to repurchase at least $3 billion of shares between 2024 and 2025, as part of its ongoing commitment to maximizing shareholder returns.
EPS Growth and 2025 Outlook
For 2025, Ball Corp has set an ambitious target of 11% to 14% growth in comparable diluted EPS, driven by factors like operational performance, volume growth, and productivity gains. The company is optimistic about sustaining its growth trajectory, with global volume growth expectations between 2% and 3%.
Additionally, Ball Corp is preparing for continued expansion with a projected capital expenditure (CapEx) of approximately $600 million in 2025. This is part of their strategy to invest in the future, which includes the development of a new can plant in Oregon and an acquisition of a beverage can facility in Florida to boost capacity.
Challenges for 2025
Despite these positive projections, Ball Corp faces several challenges. The company reported softer-than-expected volume in North America, particularly due to economic pressures on end consumers and exposure to the domestic beer market. This softness has resulted in slower-than-expected volume growth in the region.
In Brazil, Ball Corp has encountered supply-demand tightness, hampering its efforts to ramp up vital capacity in the country. Additionally, global beverage can shipments were down by low single digits compared to the previous year, indicating challenges in maintaining volume growth across the globe.
Looking into the first quarter of 2025, Ball Corp anticipates a challenging environment due to tough year-over-year comparisons and negative impacts from poor weather in the U.S. during January. Further risks could arise from tariffs affecting the aluminum supply chain, which could add pressure on both volume growth and supply chain dynamics.
Strategic Focus
Despite these challenges, Ball Corp remains focused on long-term growth, having already secured over 85% of its 2026 volume under contract, including a significant extension with a major customer. This strategic positioning is expected to provide long-term stability and mitigate some of the challenges it is currently facing.
As Ball Corp navigates both positive and negative factors, its investors will be closely watching how the company adapts to external pressures while maintaining its focus on sustainable growth.
