NYSE$BALL

Ball Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported mixed second quarter 2023 results due to lower global volumes and divestments, while managing costs and working capital effectively.

Ball Corporation reported second quarter 2023 net earnings of $173 million, or $0.55 per diluted share, on sales of $3.57 billion. The results reflect strong performance despite lower global volumes, driven by inflationary cost recovery and cost-out actions.

  • U.S. GAAP diluted earnings per share were 55 cents, compared to a loss of 55 cents in 2022, including the impact of 2022 business divestments.
  • Comparable diluted earnings per share were 61 cents, compared to 82 cents in 2022, including the impact of 2022 business divestments.
  • Global beverage can shipments decreased by 4.9%, excluding the impact of the 2022 Russian business divestment.
  • Aerospace backlog is $2.6 billion, with contracts won-not-booked at $6.0 billion, up $1 billion year-to-date.

Headline financials

Total Revenue

$3.57B

Previous: $4.13B-13.7%
EPS (adj)

$0.61

Previous: $0.82-25.6%
Capital Expenditures

-$608M

Previous: -$819M+25.8%
Free Cash Flow

-$435M

Previous: -$984M+55.8%
Net Income

$173M

Previous: -$165M+204.8%
Operating Income

$321M

Previous: -$107M+400.0%
Gross Profit

-$2.92B

Previous: -$3.45B+15.4%
Cash & Equivalents

$955M

Previous: $480M+99.0%
Total Assets

$20.2B

Previous: $20.9B-3.6%

Revenue & EPS history

Ball · Revenue · Quarterly

$3.57B

Q2 2023-13.7%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Ball · $3.07B total across 4 segments · Q2 2023

  • Beverage Pkg NCA
    $1.54B-13.4%
  • Beverage Pkg EMEA
    $920M-18.8%
  • Beverage Pkg South Am
    $405M-24.2%
  • Other
    $205M

Forward guidance

Ball Corporation is positioned to deliver approximately $750 million of free cash flow in 2023. The company anticipates that the reduction of capital expenditures to depreciation levels will increase free cash flow generation, allowing for additional deleveraging and accelerated return of value to shareholders via share buybacks and dividends in 2024 and beyond.

Tailwinds

  • Maximizing returns and improving free cash conversion.
  • Driving organic growth by leveraging sustainability and innovation tailwinds.
  • Being good stewards of our capital.
  • Driving a circular economy through the broader use of sustainable aluminum packaging.
  • Employing exquisite environmental, aerospace and defense technologies to preserve our planet and achieve the best outcomes for our stakeholders.

Headwinds

  • Higher interest costs.
  • Year-to-date demand trends.
  • The Russian business divestment headwind.
  • Potential to achieve low end of long-term comparable diluted earnings per share growth goal of 10 to 15 percent.
  • Improve EVA generation, and increase cash flow to deleverage and return value to shareholders in 2023 and beyond

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.2%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+0.8%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+12.1%

Q1 2023

Best reaction

-22.6%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%-3.9%-14.3%
Q4 2025+8.0%+17.3%+11.5%
Q3 2025+1.6%+4.0%+3.7%
Q1 2025-0.4%+0.5%+3.2%
Q4 2024-6.9%-9.4%-6.3%
Q3 2024-8.1%-6.6%-3.2%
Q2 2024+1.5%-0.8%-0.0%
Q1 2024+8.1%+4.3%+5.2%
Q4 2023+7.3%+3.2%+15.9%
Q3 2023+7.7%+5.4%+18.5%
Q2 2023+1.3%-1.4%-3.8%
Q1 2023+12.1%+9.1%+4.2%
Q4 2022+0.9%-1.4%-2.3%
Q3 2022+6.3%+5.6%+16.6%
Q2 2022-22.6%-24.6%-23.3%
Q1 2022-13.6%-17.0%-11.6%
Q4 2021-1.0%-1.3%+1.3%
Q3 2021-3.9%-3.0%-0.9%
Q2 2021+7.9%+12.4%+23.2%
Q1 2021+2.1%+2.8%+10.8%
Q4 2020+0.2%-2.3%-9.9%
Q3 2020+3.6%+0.9%+0.1%
Q2 2020+0.7%-1.5%+9.9%
Q1 2020-2.8%-5.8%-0.6%
Q4 2019-1.8%-2.1%-29.7%
Q3 2019-4.9%-4.7%-5.6%
Q2 2019-2.0%+0.7%+7.6%
Q1 2019+0.9%+0.4%+3.6%
Q4 2018+0.7%+1.9%+6.4%
Q3 2018-0.4%+2.6%+3.1%
Q2 2018+2.3%+2.3%+3.3%
Q1 2018-2.1%+1.4%+1.0%
Q4 2017-1.4%+1.5%-0.6%
Q3 2017-1.7%-4.2%-2.3%
Q2 2017-2.5%-1.1%-2.0%
Q1 2017-0.4%-1.3%+4.4%
Q4 2016-1.6%-3.6%-1.0%
Q3 2016-0.0%-3.4%-3.2%
Q2 2016+0.2%-0.4%-3.4%
Q1 2016+1.0%
Q4 2015+3.0%
Q3 2015+4.3%
Q2 2015-3.2%
Q1 2015-0.8%
Q4 2014-0.1%
Q3 2014-0.8%
Q2 2014+0.9%
Q1 2014+2.0%
Q4 2013-0.4%
Q3 2013+0.1%
Q2 2013-3.4%
Q1 2013-0.6%
Q4 2012-1.4%
Q3 2012+0.4%
Q2 2012+4.2%
Q1 2012+0.5%
Q4 2011-0.9%
Q3 2011+1.8%
Q1 2010+1.8%
Q2 2011+3.9%
Q1 2011+0.9%
Q4 2010-1.3%
Q4 2008-1.3%
Q3 2010+2.5%
Q3 2009+2.5%
Q2 2009+0.2%
Q2 2010+0.2%
Q4 2009+0.2%

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