Ball Corporation

Greetings and welcome to the Ball Corporation's second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brandon Potthoff, Head of Investor Relations. Thank you, sir. You may begin.

Thank you. Good morning, everyone. This is Ball Corporation's conference call regarding the company's second quarter 2026 results. During this call, we will reference our second quarter 2026 earnings presentation, available through this webcast and on our website at investors.ball.com. The information provided during this call will contain forward-looking statements. Actual results or outcomes may differ materially from those that may be expressed or implied. We assume no obligation to update any forward-looking statements made today. Some factors that could cause the results or outcomes to differ are described in the company's latest Form 10-K, other SEC filings, and in today's earnings release and earnings presentation. If you do not already have our earnings release, it is available on our website at vol.com. Information regarding the use of non-GAAP financial measures may also be found in the notes section of today's earnings release. In addition, this presentation and the release include a summary of non-comparable items as well as a reconciliation of comparable net earnings and diluted earnings per share calculations. I would now like to turn the call over to our CEO, Ron Lewis.

Thank you, Brandon. Today I'm joined by Dan Rabbitt, Senior Vice President and Chief Financial Officer. I will provide some brief introductory remarks and discuss Second quarter and first half 2026 financial performance and our outlook for the remainder of 2026. Dan will touch on key metrics and then we will finish up with closing comments and a question and answer session. As we begin, I want to reinforce the same big picture message we have discussed in prior quarters because it remains central to how we think about Ball's long-term value creation. The fundamentals supporting our business remain firmly in place. Packaged liquid volume continues to grow globally and aluminum cans continue to gain share as consumers, customers, and retailers prioritize convenience, performance, and sustainability. These trends continue to support a durable runway of demand for our products. Within that growing market, Ball remains well positioned. Across our regions, we continue to benefit from long-term customer partnerships, a well-contracted portfolio, Disciplined capacity management and an unmatched global footprint. Together, those advantages support strong utilization and consistent commercial performance. We are pairing those operating advantages with financial discipline. Through the first half of 2026, our results have reinforced our confidence in the framework we laid out for the year, supported by a healthy balance sheet and a capital allocation approach grounded in EBA. We remain focused on investing where we can earn attractive returns and returning capital to shareholders. Operationally, our teams continue to make progress. Standardization, cost discipline, and the ball business system are helping us reduce complexity, improve productivity, and create a more repeatable operating model as volumes grow. When you bring together attractive industry fundamentals, strong customer relationships, Disciplined execution, financial strength, and an operating system built for continuous improvement, Ball remains well positioned to deliver on our 2026 objectives and create long-term value for shareholders. Our first half results reinforce the resilience of our business and the consistency of our execution, even as the external environment remains complex. The strategy we have discussed in prior quarters remains clear, consistent, and grounded in four strategic pillars, and our first half performance provides further evidence that it is working. First, we remain focused on executing in our core business. That discipline shows up through service, cost management, and ongoing efforts to improve operational consistency across our plants and regions. Second, we stay close to our customers and maximize the strength of our global network. Long-term customer partnerships, strong service levels, and a balanced footprint give us the flexibility to respond quickly and reliably. Third, we continue to accelerate the substrate shift to aluminum and expand into targeted categories. Aluminum's sustainability and performance advantages remain compelling and we are focused on translating these advantages into disciplined growth. Fourth, we manage complexity to our advantage. Our scale, standardization, and systems help us stay focused on the levers we control and build more repeatable performance over time. The Ball business system connects these priorities across the organization, helping us standardize best practices, improve productivity, and drive continuous improvement. At the center of that system are our people and culture. Low ego, high collaboration, and a shared commitment to doing the right things the right way. That consistency is what supports our first half performance and gives us confidence in our ability to deliver on our 2026 objectives while continuing to create value long term. That is where the Ball Business System and EVA come together. One helping us to operate with greater consistency, the other guiding how we allocate capital to create long-term value. In the second quarter and first half, that discipline showed up in our financial performance while we continued to focus on delivering operational results in line with our Ball Business System goals. It is also why our 2026 framework remains unchanged. 10 plus percent comparable diluted EPS growth, strong free cash flow, and consistent returns to shareholders. With that context, let me address how those priorities translated into our second quarter and first half results. Turning to our second quarter performance, we continue to build on the solid start we discussed last quarter. Global volumes improved 4.3% year over year with growth in each region reflecting continued momentum across our portfolio and keeping us on track with the full year volume outlook we outlined earlier this year. Comparable operating earnings grew 7.7% year-over-year, supported by disciplined cost management, commercial performance, and continued progress through the Ball business system, even as we absorbed the previously discussed North American startup costs. That performance flowed through to the bottom line, with comparable diluted EPS growth of 14.4%, reflecting operating earnings performance and capital allocation. Our first half performance reinforces our confidence in delivering 10 plus percent comparable diluted EPS growth for the full year. We also remain focused on shareholder returns and remain on track to return approximately $800 million to shareholders in 2026. Operationally, we continue to advance our priorities, including integrating BenePak to expand our EMEA capacity and continuing to make progress at our Millersburg facility, which remains on track Thank you, Ron.