Ball Corporation makes aluminum cans and other packaging for beverage, personal-care and household-product companies. In the second quarter of 2026, sales rose almost 20%, largely because customers paid more for the aluminum in their packaging. Profit increased, but the first six months still used $169 million of operating cash. Ball has room to finance its expansion; delivering its planned cash generation would let it fund new capacity and shareholder payments with less reliance on borrowing.
Research cutoff: October 16, 2026, New York time. Financial results cover the quarter and six months ended June 30, 2026; the material subsequent investment announcement reviewed is dated September 11, 2026.
Source: Ball’s second-quarter 2026 Form 10-Q, consolidated statements, pp. 1–4, and management’s discussion, pp. 26–31. Full reporting details appear after the conclusion.
1. Higher aluminum prices explain most of the sales increase
Higher prices and changes in the products sold accounted for most of the sales increase. Most of its volume is covered by contracts that pass changes in aluminum prices to customers. When aluminum becomes more expensive, Ball generally records both higher sales and higher material costs. That helps protect profit dollars, although collection timing and incomplete cost recovery can still matter.
Of the quarter’s $659 million sales increase, management attributed $542 million to prices and product mix, mainly higher aluminum prices. That represents about 82% of the increase. Higher volume contributed $65 million.
The first-half comparison tells the same story. Sales increased $1.165 billion, including $898 million from prices and mix, $131 million from converting foreign sales into dollars, and $97 million from higher volume. The business sold more packaging, but metal prices were the dominant reason that reported revenue grew so quickly.
The following comparison separates the amount customers were charged from the profit Ball kept. “Operating profit” is calculated from the reported accounts before interest, taxes and earnings from partly owned affiliates. Net earnings attributable to Ball are the profit belonging to Ball’s shareholders after those items and the outside owners’ share. Ball does not present the operating-profit subtotal on the face of its earnings statement.
| Consolidated results; US$ millions except EPS | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| Net sales | 3,338 | 3,997 | 6,435 | 7,600 |
| Operating profit, calculated from reported accounts | 344 | 347 | 636 | 673 |
| Net earnings attributable to Ball | 212 | 221 | 391 | 426 |
| Diluted earnings per share, US$ | 0.76 | 0.83 | 1.39 | 1.59 |
Source: 2026 Form 10-Q, statement of earnings, p. 1; business overview and consolidated results, pp. 25–27. Calculations use the displayed amounts; the operating-profit formula is in the calculation notes.
After subtracting production costs, including depreciation and amortization, Ball had $39 million more profit before overhead and other operating charges than a year earlier. Higher selling and administrative expense absorbed $26 million of that improvement, and higher business-consolidation and other charges absorbed another $10 million. Only $3 million remained as additional operating profit.
Consequently, calculated operating profit grew 0.9% in the quarter, while its share of revenue fell from 10.3% to 8.7%. Higher aluminum charges enlarge the sales denominator, so that margin decline does not by itself measure deterioration in can-making efficiency. The small increase in profit dollars, however, shows that costs outside the metal bill also mattered. Over the first half, operating profit grew 5.8%, with its margin declining from 9.9% to 8.9%.
Ball’s first-half tax rate also increased, from 22.9% to 23.7%, mainly because of foreign tax-rate differences and U.S. taxes on foreign earnings. Earnings from partly owned affiliates rose from $13 million to $19 million after tax. These items help explain why the final profit attributable to Ball differs from the factory-level results below.
Source: 2026 Form 10-Q, statement of earnings; Note 16; management’s discussion, pp. 26–27.
2. South America and EMEA supplied the profit growth
Regional growth was real, but North and Central America did not turn higher sales into higher quarterly earnings. Ball reported a 4.3% increase in global aluminum-packaging shipments. Regional shipment growth ranged from low single digits in North and Central America to mid-single digits in EMEA and a mid-teen percentage in South America. These figures measure units shipped to customers, not drinks purchased by consumers.
Ball’s EMEA region covers Europe, the Middle East and Africa, plus India and Myanmar. The table uses “comparable operating earnings,” a management measure that removes specified expenses and gains. Its scope is examined in Section 3.
| Region; US$ millions | Second-quarter 2025 sales | Second-quarter 2026 sales | Second-quarter 2025 comparable operating earnings | Second-quarter 2026 comparable operating earnings |
|---|---|---|---|---|
| North and Central America | 1,613 | 2,006 | 212 | 207 |
| EMEA | 1,123 | 1,242 | 152 | 162 |
| South America | 477 | 591 | 50 | 82 |
| Other, including corporate expenses and eliminations | 125 | 158 | −12 | −18 |
| Consolidated total | 3,338 | 3,997 | 402 | 433 |
Sources: 2026 Form 10-Q, Note 3 and segment discussion, pp. 28–29; August 4 earnings release, regional shipment commentary. The 2025 segment figures are recast to the 2026 structure and definitions. The comparison includes the Saudi business through its August 2025 disposal.
North and Central America generated roughly half of consolidated quarterly sales. Yet its comparable operating earnings fell $5 million. Management identified $44 million of higher costs, including costs associated with greater volume, plant operations and startup activity, partially offset by $28 million from prices and mix, including the timing of aluminum cost recovery. For the first half, regional earnings remained $412 million in both years. The region needs better production economics, not simply a larger metal bill passed to customers.
EMEA’s earnings rose $10 million in the quarter and $33 million in the first half. Its new Benepack facilities contributed $49 million of quarterly sales. The acquisition adds production and customers, so the full regional sales increase should not be described as growth from existing facilities alone. The filing also identifies higher costs as an offset to better prices, mix and volume.
South America supplied $32 million of the three reportable regions’ combined $37 million quarterly earnings increase. Its first-half earnings rose to $149 million from $117 million. Subtracting the second quarter shows first-quarter earnings of $67 million in both years: the first-half profit improvement was concentrated in the second quarter. Management linked the shipment rebound partly to customer timing and inventory effects that had weighed on the first quarter.
Sources: 2026 Form 10-Q, Notes 3–4 and segment discussion, pp. 28–29; August 4 earnings-call transcript, p. 9. First-quarter earnings are calculated as first-half earnings less second-quarter earnings.
External evidence supports a growing can market, while showing why Ball’s regional rebound should not be treated as an industry-wide rate. Crown reported 5% global beverage-can shipment growth, including 7% in Europe and 5% in North America. But Crown’s Brazilian can volumes fell 14% in the quarter. Different customer portfolios and geographic footprints can produce sharply different outcomes within the same industry.
Brewer Ambev reported Brazilian beer volume growth of 5.0%, while its Brazilian nonalcoholic-beverage volume fell 4.4%. These are beverage volumes across packaging types, not purchases of Ball cans. They nevertheless show that demand varied by product, supporting a more selective interpretation of Ball’s strong South American quarter.
Sources: Crown’s July 20, 2026 results, shipment commentary; Crown’s second-quarter 10-Q, Americas Beverage discussion; Ambev’s July 30, 2026 results, consolidated highlights and Brazil Beer discussion.
Ball’s customer relationships provide scale and repeat orders, but also concentrate bargaining power. AB InBev and affiliates, Coca-Cola Bottlers’ Sales & Services and affiliates, and Red Bull and affiliates represented 40% of 2025 sales combined. Long-term agreements help Ball plan capacity; losing a large contract or failing to meet its service requirements could leave expensive factories with less work.
Source: Ball’s 2025 Form 10-K, Note 3, “Major Customers,” and Item 1A, customer-concentration risk. The disclosed shares were 15%, 14% and 11%, respectively.
3. Adjusted earnings improve the picture, but remove some continuing costs
Ball’s earnings improvement survives adjustment, although its adjusted operating measure excludes costs the business continues to incur. In early 2026, Ball changed both its segment structure and profitability definitions. The comparable operating measure now excludes factoring fees, currency gains and losses, stock compensation, all intangible amortization and certain other items. The company restated the 2025 comparisons used here.
Selling customer invoices to banks carried $20 million of fees in the first half. Stock compensation excluded from comparable operating earnings was $13 million. These expenses help fund and staff the business. Removing them can help management compare factories, but does not make them economically irrelevant. Startup costs discussed in Section 5 remain in the regional comparable results.
Comparable net earnings use a different set of adjustments. The following reconciliation preserves the tax treatment instead of treating every excluded pretax expense as an equal increase in final profit.
| Reconciliation to comparable net earnings; US$ millions | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| Reported net earnings attributable to Ball | 212 | 221 | 391 | 426 |
| Add business-consolidation and other charges, pretax | 12 | 22 | 25 | 33 |
| Add intangible amortization, pretax | 38 | 38 | 74 | 75 |
| Add unrealized loss on equity-linked notes, pretax | 0 | 13 | 0 | 27 |
| Add aerospace disposal loss, pretax | 1 | 0 | 3 | 0 |
| Tax adjustments reported by Ball | −12 | −18 | −23 | −34 |
| Comparable net earnings, non-GAAP | 251 | 276 | 470 | 527 |
Source: August 4 earnings release, “Non-U.S. GAAP Measures,” after-tax earnings reconciliation. “Tax adjustments” is Ball’s aggregate non-comparable tax line, not a separately disclosed tax rate for each expense. The operating-earnings reconciliation appears in the calculation notes.
The $27 million first-half loss came from investments linked to ORG Technology’s share price. Their carrying value was $73 million at June 30, and they mature in 2028. Excluding changes in their value helps separate can-making results from financial-investment volatility. Ball still bears the investment and issuer-credit risk.
Amortization presents a different issue. It spreads the recorded cost of acquired customer relationships and other intangible assets over time. It does not require current cash payment, but the acquired businesses still contribute sales. Comparable earnings therefore show profitability before this acquisition-accounting expense, rather than a fully recurring cash-profit figure.
Source: 2026 Form 10-Q, Notes 3, 12 and 13.
Share repurchases also increased profit per share faster than total profit. Quarterly net earnings attributable to Ball grew 4.2%, while diluted EPS rose from $0.76 to $0.83. Average diluted shares fell 3.8%, from 277.771 million to 267.139 million. With the prior-year share count, the current quarter’s profit would have produced approximately $0.80 per share. The smaller denominator explains the remaining lift to approximately $0.83.
The current buyback pace was much slower than a year earlier: cash purchases of treasury shares were $115 million in the first half, versus $1.022 billion. Earlier repurchases continued to affect the average share count. Employee share issuance and reissuance partly offset repurchases; the equity records show shares held in treasury, not a retirement of all purchased shares.
Source: 2026 Form 10-Q, cash-flow statement and Notes 18–19. The constant-share-count EPS is a calculation, not a company-reported measure.
4. A tax refund helped cash flow while customers and inventory absorbed more money
The improvement in reported cash flow was smaller after removing aerospace-related tax timing. Operating activities used $169 million in the first half, compared with $333 million a year earlier. However, 2026 included a $104 million refund related to the former aerospace business, whereas the first half of 2025 included a $19 million tax payment for that disposal. This $123 million swing explains most of the $164 million improvement in operating cash flow.
Cash spending on property and equipment rose by $125 million. After both that spending and the disposal-tax adjustment, the cash deficit widened.
| Consolidated cash measures; US$ millions | First half 2025 | First half 2026 |
|---|---|---|
| Operating cash flow | −333 | −169 |
| Cash capital expenditures, shown as a positive amount | 177 | 302 |
| Free cash flow: operating cash flow less cash capital expenditures | −510 | −471 |
| Remove aerospace tax payment or refund | +19 | −104 |
| Adjusted free cash flow on Ball’s disposal-tax basis | −491 | −575 |
Sources: 2026 Form 10-Q, cash-flow statement; 2026 earnings release and 2025 earnings release, free-cash-flow reconciliations; 2025 Form 10-K, liquidity discussion, confirming receipt of the refund in January 2026. Both free-cash-flow measures are non-GAAP.
The main cash demand came from the gap between paying to produce packaging and collecting payment for it. Working-capital changes used $1.012 billion, compared with $838 million in the prior first half. This cash-flow measure excludes acquisitions and disposals. It should not be equated directly with changes in balance-sheet balances, which also reflect acquired operations and currency movements.
Customer-related receivables, after the allowance for doubtful accounts, increased from $2.057 billion at December 31 to $2.758 billion at June 30. Billed trade receivables accounted for most of that increase. Ball had recorded more money owed by customers without yet holding the corresponding cash. The total receivables balance also includes tax, scrap-sale and other amounts.
Inventory increased from $2.013 billion to $2.517 billion. Raw materials and supplies accounted for $447 million of the increase before inventory reserves; finished goods increased $66 million. The heavier concentration in materials fits the disclosed rise in aluminum costs, although the filing does not separate the inventory increase into price, quantity and acquisition effects. It does not establish a buildup of unsold cans of the same size.
Suppliers financed part of Ball’s operating needs through unpaid bills, but accounts payable increased only $97 million. Obligations confirmed under supplier-finance programs declined from $424 million to $276 million. Ball also sells eligible customer invoices to banks for earlier payment. These programs had approximately $1.73 billion of limits and $216 million of unused capacity at June 30. The associated fees are a real cost of accelerating collections.
Source: 2026 Form 10-Q, Notes 7–9 and liquidity discussion, pp. 29–30. Supplier-finance obligations are included in accounts payable, and their payments are operating cash flows; receivable sales are accounted for as true sales with limited recourse.
Payment timing now moves substantial sums. Ball estimated that one additional day to collect customer payments would affect operating cash flow by $44 million. One day of inventory or supplier-payment timing would affect it by $37 million.
A strong second half has precedent. In 2025, Ball generated $1.595 billion of operating cash and $1.298 billion after capital spending in the second half, calculated from full-year less first-half results. For 2026, reaching management’s stated free-cash-flow objective of more than $900 million would require more than $1.371 billion in the second half on the unadjusted definition used in the table. That is a funding requirement implied by the goal, not a forecast of collections.
Sources: 2026 Form 10-Q, liquidity discussion; 2025 Form 10-K, consolidated cash flows; August 4, 2026 release, outlook and free-cash-flow definitions.
5. New plants should relieve capacity pressure, with costs arriving first
Ball is investing to serve customer demand, but the main U.S. operating benefit lies beyond the reported quarter. Management said its North American network was running tight, putting pressure on scheduling, labor, freight and maintenance. The Millersburg, Oregon, plant began making commercial cans in July. Management expected its full benefit in 2027, with roughly $30 million of additional startup costs in the second half of 2026 after approximately $5 million in the second quarter.
That creates a clear near-term tradeoff. Ball must spend and absorb startup expense before the plant can consistently supply customers and relieve pressure elsewhere. Successful production ramp-up would give the region more room to grow without imposing the same strain on its existing network.
Source: August 4 earnings-call transcript, pp. 9 and 13–14. The cost and benefit timing represents management’s expectations as of that call.
In Europe, Ball bought 80% of Benepack’s Belgian and Hungarian operations to strengthen its manufacturing network. Cash consideration was $95 million, or $76 million after acquired cash. The transaction also brought $176 million of borrowings onto Ball’s consolidated balance sheet; Ball repaid $137 million of assumed short-term borrowings in the first quarter. The acquisition therefore required more funding than the net acquisition-payment line alone suggests.
Because Ball controls Benepack, its accounts include the acquired facilities’ full revenue and costs. The outside owner’s share is deducted when calculating profit attributable to Ball. Benepack generated $11 million of first-half operating earnings within these consolidated results.
The acquisition added $167 million of property and equipment. Across Ball, the net value of property and equipment increased by $127 million to $6.783 billion, after depreciation and other movements.
Benepack also added $60 million of goodwill, the acquisition value assigned to the business as a whole rather than to specific assets and liabilities. Ball’s total goodwill rose only $18 million because currency movements offset part of that addition. Separately, intangible assets fell $74 million, broadly reflecting $75 million of amortization. The accounts therefore show new business investment alongside the gradual recognition of earlier acquisition costs as expenses.
Source: 2026 Form 10-Q, Notes 4, 10–12 and 15. Benepack’s purchase-price allocation remained provisional.
The September 11 announcement extends the investment horizon. Ball plans a two-line beverage-can plant in Uttar Pradesh, India, expected to operate in 2029. The project is supported by customer contracts and would supplement its two existing Indian locations. Ball did not disclose the project’s cost in that announcement. It strengthens the longer-term capacity plan without adding production to the 2026 results.
Competition is expanding too: Crown’s July results described capacity projects in Brazil, Greece and Spain, plus a new plant in northern India. Ball’s customer commitments therefore matter alongside industry demand; new capacity must find enough contracted business to earn its cost.
Sources: Ball’s September 11, 2026 India announcement; Crown’s July 20, 2026 results, expansion commentary.
Ball expected approximately $600 million of 2026 cash capital expenditures and had $299 million contractually committed at June 30. Those commitments establish continuing cash needs while new capacity is being brought into operation.
Source: 2026 Form 10-Q, liquidity discussion, p. 30, and Note 7. Equipment acquired but not yet paid for was $146 million, versus $161 million at the start of the year; cash capital expenditures exclude unpaid purchases.
6. Borrowing capacity gives Ball time to rebuild cash
Ball has substantial committed borrowing capacity, while its cash cushion has become smaller. Cash and equivalents fell from $1.212 billion to $491 million during the first half. Financing debt increased from $7.012 billion to $7.220 billion. Subtracting cash from debt gives calculated net debt of $6.729 billion, up $929 million.
Operating cash flow less capital spending was negative $471 million. Ball also paid $115 million for treasury shares and $107 million in dividends, leaving a $693 million cash deficit before acquisitions and other investing activity. Beginning cash balances carried much of the burden: net borrowing supplied $79 million, and cash including restricted amounts fell $720 million. The complete cash reconciliation is in the notes.
Management’s stated purpose for repurchases is returning capital to shareholders. It deliberately limited first-half purchases to match the expected timing of cash generation. Against its approximately $600 million annual repurchase plan, $485 million remained after June. Its approximately $210 million annual dividend plan implied another $103 million after the first-half payments. These are planned cash uses, not already-paid amounts.
Sources: 2026 Form 10-Q, consolidated balance sheet, cash flows and liquidity discussion, pp. 30–31; August 4 call transcript, p. 16, explanation of repurchase timing.
At June 30, $1.71 billion remained available under committed credit lines that Ball can draw and repay, with final maturity in November 2030. Ball separately disclosed short-term uncommitted facilities and $43 million drawn under them, repayable on demand. Committed lines provide firmer access to funding because the lenders have already agreed to make that credit available, subject to the agreement’s conditions.
The nearest major bond maturity is the euro-denominated 1.50% note due in March 2027. Its dollar carrying amount was $628 million. This explains most of the move of debt into the current-liability category: current financing debt jumped to $692 million from $21 million, while long-term debt declined. That classification change is not the same as taking on $671 million of new borrowing.
| Principal debt instruments at June 30, 2026; US$ millions | Amount outstanding | Maturity | Contractual annual interest rate |
|---|---|---|---|
| Euro senior notes | 628 | March 2027 | 1.50% |
| U.S. dollar senior notes | 1,000 | June 2029 | 6.00% |
| U.S. dollar senior notes | 1,300 | August 2030 | 2.875% |
| Term A loan | 1,500 | November 2030 | 4.64% |
| Drawn U.S. dollar revolver | 225 | November 2030 | 4.61% |
| U.S. dollar senior notes | 850 | September 2031 | 3.125% |
| Euro senior notes | 971 | July 2032 | 4.25% |
| U.S. dollar senior notes | 750 | September 2033 | 5.50% |
Source: 2026 Form 10-Q, Note 15. Euro instruments are shown at their June 30 dollar equivalents. Term A and revolver rates are variable; the table shows their June 30 rates. Finance leases, short-term borrowings and debt-cost adjustments are reconciled separately in the calculation notes.
The table also exposes a later concentration: $3.025 billion of currently drawn bonds and bank loans has final maturity dates in 2030. Ball has time to plan, but refinancing decisions need to consider both principal and interest. First-half interest expense was $157 million, up from $151 million, because a larger average debt balance outweighed lower average rates. The low-interest 2027 note creates a particular funding decision; its replacement cost will depend on the terms available when Ball refinances or repays it.
Ball complied with its debt agreements at June 30. Those agreements include a debt-to-earnings test using contractually defined amounts. The strictest permitted ratio falls from 5.0 times to 4.5 times on March 31, 2027. A tighter limit reduces borrowing room unless earnings increase or debt falls. Recovering cash before then would support both refinancing flexibility and the planned shareholder payments.
Operating leases add $362 million of liabilities, including $83 million current, outside the financing-debt total above. They largely relate to premises and equipment used in the business. The latest annual maturity schedule showed $411 million of undiscounted operating-lease payments at December 31, 2025, including $83 million for 2026 and $75 million for 2027. Those are the year-end contractual schedule, not a fresh June forecast.
Sources: 2026 Form 10-Q, Notes 14–15 and interest discussion, p. 27; 2025 Form 10-K, Note 14, lease maturities.
Shareholders’ accounting capital grew despite the cash decline. Total equity increased $345 million to $5.766 billion, chiefly because Ball retained profit after dividends. Pension and hedging entries increased equity, partly offset by currency translation losses. These accounting movements did not supply equivalent cash. The equity reconciliation below distinguishes those movements from share issuance and repurchases; a higher equity balance does not remove the need to collect customer payments.
Source: 2026 Form 10-Q, Note 18.
7. Pension accounting and tariff disputes could interrupt reported earnings
Several disclosed exposures can change profit without tracking current can shipments. Ball’s U.K. pension plan purchased an insurance contract in 2023 to reduce investment and longevity risks while securing employee benefits. At the August filing date, Ball expected to complete a further transfer to the insurer in the third quarter of 2026.
That settlement would move accumulated pension losses into the earnings statement as a noncash charge. The filing identified $454 million of unrecognized losses associated with the planned settlement. This is not a new $454 million cash-payment forecast, and the filing does not provide an after-tax charge of that amount. The reviewed materials do not establish that the transfer had completed by the research cutoff. Separate pension cash contributions were $15 million in the first half, with approximately $29 million expected for the year.
Source: 2026 Form 10-Q, Note 17 and liquidity discussion, p. 30.
Tariffs create a more direct cost-recovery issue. First-half business-consolidation and other charges of $33 million primarily included tariff contingencies for which Ball sought recovery and costs from previously announced facility closures. The filing does not separate those two amounts. Until recovery is secured, the fact that an expense is removed from comparable earnings does not establish that Ball will get its money back.
The historical context is relevant: the 2025 annual report disclosed a September 2025 U.S. Customs challenge to classifications, duty rates and exemptions on certain aluminum imports. At that annual-report date, Ball could not estimate the reasonably possible loss and had recorded no reserve for that matter. The quarterly filing does not reconcile its tariff charges to the earlier Customs challenge, leaving the final cost and recovery unresolved.
Sources: 2026 Form 10-Q, Note 6; 2025 Form 10-K, Item 1A, raw-material and tariff risk.
Ball also accrued approximately $25 million for known, estimable environmental matters. It could not estimate reasonably possible losses above those accruals. Brazilian tax assessments concern inventory transfers, revenue taxes, incentives, goodwill and acquisition-related deductions; Ball could not estimate the ultimate reasonably possible loss. These are potential demands on future resources, without a supportable amount to add to the funding forecast. Some contractual indemnities also lack a specified maximum payment, although no material liability was recorded for those guarantees.
Source: 2026 Form 10-Q, Notes 21–22.
8. Ball’s next gains depend on steadier production and stronger cash flow
Ball has evidence of growing customer demand and capacity projects to serve it, but the next improvement must reach both factory profit and cash. South America and EMEA provided the earnings gains, while North and Central America remained constrained by operating and startup costs. Most of the reported sales increase merely carried a larger aluminum bill through the accounts.
The funding position allows Ball to continue investing. Its more demanding task is to collect the money tied up in operations while bringing new facilities into steady production. A strong second-half cash recovery would support the 2027 debt maturity, planned shareholder payments and expansion without a comparable increase in borrowing. Slower collections or a delayed U.S. ramp-up would consume more of that flexibility and increase the competition between those uses of cash. This is the business test that matters more than the headline revenue growth.
Reporting basis and calculation notes
Reporting basis: Ball Corporation, NYSE: BALL, CIK 0000009389; Form 10-Q, accession 0001104659-26-090226, filed August 4, 2026, for the period ended June 30, 2026. Quarterly comparisons cover April 1–June 30; first-half comparisons cover January 1–June 30. Balance-sheet comparisons are June 30, 2026 versus December 31, 2025 unless explicitly labelled otherwise. These are unaudited consolidated U.S. GAAP accounts covering controlled affiliates, including consolidated variable-interest entities. Partly owned equity-method investments are not added to segment sales or operating profit.
Sources: SEC filing index; SEC submissions record; company-hosted filing, cover and Notes 1 and 3. Selected SEC XBRL facts were checked against the same accession, date ranges and units, including consolidated assets, liabilities, cash flows, revenue, profit and diluted shares. Revenue uses the filing’s including-assessed-tax concept; consolidated profit and profit attributable to Ball are distinct facts. Dollar facts were converted to millions; share facts to millions or thousands as labelled.
Reporting basis: Research was limited to information available by October 16, 2026, New York time. The latest quarterly operating results used are the August 4 release and filing. The September 11 India announcement updates the investment outlook. Plans, including the pension settlement and 2026 cash targets, are not treated as completed outcomes.
Calculation notes: The following checks make the accounting comparisons reproducible. Amounts are US$ millions unless stated otherwise; negative amounts reduce the relevant total.
A. Sales, margins and the two operating-profit measures. Reported-account operating profit equals sales less cost of sales, depreciation and amortization, selling and administrative expense, and business-consolidation charges. For the second quarter, 2026 is 3,997 − 3,300 − 165 − 163 − 22 = 347; 2025 is 3,338 − 2,690 − 155 − 137 − 12 = 344. For the first half, the corresponding calculations produce 673 and 636. Growth is the change divided by the prior-year amount; a margin is profit divided by sales.
Ball’s first-half comparable operating measure reconciles as follows. Expenses and gains below are pretax, and this bridge stops before interest, taxes and equity-method earnings.
| First-half operating reconciliation; US$ millions | 2025 | 2026 |
|---|---|---|
| Operating profit calculated from reported accounts | 636 | 673 |
| Add business-consolidation charges | 25 | 33 |
| Add factoring fees | 19 | 20 |
| Remove foreign-exchange gains | −13 | −23 |
| Add intangible amortization | 74 | 75 |
| Add stock compensation | 18 | 13 |
| Add equity-linked-note losses | 0 | 27 |
| Other reconciling items | −5 | 2 |
| Comparable operating earnings | 754 | 820 |
Source: 2026 Form 10-Q, statement of earnings and Note 3. Quarterly checks use the same categories: 347 + 22 + 10 − 4 + 38 + 7 + 13 = 433 for 2026; 344 + 12 + 9 − 6 + 38 + 10 − 5 = 402 for 2025.
B. Profit to operating cash. This reconciliation begins with consolidated profit, including the outside owners’ share, because that is the starting point of the consolidated cash-flow statement. Depreciation and amortization reduce accounting profit without a current cash payment. The remaining adjustments also account for noncash entries and differences between recording an expense and paying it.
| First-half profit-to-cash reconciliation; US$ millions | 2025 | 2026 |
|---|---|---|
| Consolidated net earnings | 394 | 428 |
| Depreciation and amortization | 305 | 324 |
| Business-consolidation and other adjustments | 25 | 33 |
| Deferred-tax adjustment | −43 | 24 |
| Aerospace disposal loss adjustment | 3 | 0 |
| Pension contributions | −15 | −15 |
| Other adjustments, net | −164 | 49 |
| Working-capital changes, excluding acquisitions and disposals | −838 | −1,012 |
| Operating cash flow | −333 | −169 |
Source: 2026 Form 10-Q, statement of cash flows. The filing does not fully disaggregate “Other, net.” The disposal-tax adjustment in Section 4 is an alternative comparison of the total cash result, not another amount to add to this bridge.
C. Cash spending and the closing balance. The first-half 2026 cash movement reconciles as 1,221 opening cash − 169 operating outflow − 437 investing outflow − 126 financing outflow + 12 currency effect = 501 closing cash. Investing outflow is 302 capital spending + 76 acquisitions + 11 derivative settlements + 48 other net spending. Management identifies $52 million of payments for ORG-linked notes within investing activity; the net “Other” line also contains other movements.
Financing is 1,505 long-term borrowing − 1,281 repayments − 145 net short-term repayments − 115 treasury-share purchases − 107 dividends + 17 other = −126. The Benepack debt repayment is already within financing cash flows and is not deducted again. Closing cash comprises 491 cash and equivalents plus 10 restricted cash; the opening equivalents are 1,212 plus 9. Restricted cash principally includes customer collections awaiting remittance to factoring banks and acquisition-related amounts.
Source: 2026 Form 10-Q, cash-flow statement, Notes 7 and 15, and investing-cash discussion, p. 30.
D. The second-half funding requirement. The 2025 historical comparison uses operating cash of 1,262 − (−333) = 1,595 and capital spending of 474 − 177 = 297, giving second-half free cash flow of 1,298. For 2026, a full-year result greater than 900, following first-half free cash flow of −471, requires more than 1,371 in the second half. If annual capital spending is 600, the remaining spending is 298 and required second-half operating cash exceeds 1,669. These calculations use unadjusted free cash flow, exclude acquisitions, and do not predict the timing of any further disposal-tax items.
Sources: 2025 Form 10-K, consolidated cash flows; 2026 Form 10-Q, cash flows and capital-spending outlook; 2026 results release, free-cash-flow outlook.
E. Balance-sheet and equity checks. Assets equal liabilities plus equity in both periods: 20,110 = 14,344 + 5,766 at June 30, and 19,524 = 14,103 + 5,421 at December 31. The changes are therefore 586 in assets, 241 in liabilities and 345 in equity.
Financing debt is 692 current + 6,528 long term = 7,220, versus 21 + 6,991 = 7,012. The principal instruments in Section 6 total 7,224; adding 7 of finance leases, subtracting 54 of other adjustments including debt issuance costs, and adding 43 of short-term borrowings reconciles to 7,220.
Equity is the recorded value of assets left after liabilities. The table separates profit kept in the business, share transactions and gains or losses recorded outside net earnings.
| Equity component; US$ millions | December 31, 2025 | First-half movement | June 30, 2026 |
|---|---|---|---|
| Common-stock capital | 1,422 | +25 | 1,447 |
| Retained earnings | 12,219 | +319 | 12,538 |
| Accumulated other comprehensive loss | −869 | +67 | −802 |
| Treasury stock, at cost | −7,351 | −86 | −7,437 |
| Outside owners’ interests | 0 | +20 | 20 |
| Total equity | 5,421 | +345 | 5,766 |
Retained earnings, the accumulated profit kept in the company, increased by 426 profit attributable to Ball less 107 dividends. Common-stock capital increased through share issuance and compensation, net of exchanged shares.
Treasury stock represents shares Ball bought back and still holds. Its equity balance changed by −103 purchases + 5 reissued shares + 12 distributions under deferred employee-compensation plans and other activity. The equity statement records 103 of purchases, while the cash-flow statement records 115 paid. The filing does not fully explain that difference, so each amount is used only in its own reconciliation.
The 67 improvement in accumulated other comprehensive income comprises −9 currency translation, +16 pension-related movements and +60 hedging movements, all after tax. These entries record changes outside net earnings, including contracts used to offset price and currency risks. Outside owners’ interests increased through 19 from the acquisition, 2 earnings and −1 other activity.
Issued shares rose by approximately 0.876 million, while treasury shares increased by approximately 1.644 million, leaving approximately 0.768 million fewer shares outstanding at period-end. This is distinct from the weighted-average share count used for EPS.
Source: 2026 Form 10-Q, consolidated balance sheets and Notes 15, 18 and 19. Share-count changes use the exact balance-sheet counts; equity amounts are rounded to millions.
This analysis is for general information and is not investment advice.