Adjusted EPS Growth
Adjusted earnings per share of $1.86, up 11% versus $1.67 a year ago, showing improved underlying profitability despite GAAP EPS softness.
Crown Holdings
· CCK
April 27th, 2026
Summary
- Earnings Call Date:
- 2026-04-27
- Change Since:
- +7.60%
- Next Earnings Date:
- 2026-07-20
Earnings Call Sentiment
PositiveThe call conveyed a predominantly constructive operational and financial picture: adjusted EPS, net sales and multiple regions (Europe, Asia Pacific) showed strong growth, cash generation and shareholder returns remain robust, and management provided steady guidance. Offsetting these positives are meaningful near-term headwinds — higher input and freight costs driven by the Middle East conflict, margin pressure in the Americas and transit packaging from pass-through/timing mismatches, and localized weakness in Brazil. Management has actionable responses (capacity adjustments, price recovery efforts, global network flexibility) and maintains healthy cash flow and leverage targets, suggesting the company is managing the challenges without a fundamental change to its growth trajectory.
Company Guidance
Crown guided second-quarter 2026 adjusted EPS of $2.10–$2.20 and full-year adjusted EPS of $7.90–$8.30, reflecting a $0.10/share hit from the Middle East (split $0.05 in Q2 and $0.05 in H2). Assumptions include net interest expense of ~ $355M, euro at $1.17, a full‑year tax rate of ~25%, depreciation of ~ $330M, noncontrolling interest expense of ~ $145M (with $110M of dividends to noncontrolling interest), and share repurchases of about $600M. The company reiterated full‑year free cash flow of ~ $900M after ~$550M of capex to support Brazil, Greece, Spain and India projects, and expects net leverage to move from 2.7x at Q1 end to about 2.5x at year‑end.
Strong Top-Line Performance
Net sales increased 13% year-over-year, reflecting higher volumes and price pass-throughs (including $234 million attributable to pass-through of higher raw material costs and $74 million favorable FX).
Global Beverage Volume Growth
Global beverage can unit volumes rose 5% in the quarter, driven by strong demand in Europe and Asia Pacific and supportive trends in North America.
Regional Outperformance — Europe
European beverage volumes advanced 7% with segment income increasing 28%, benefiting from tight capacity and sustained demand across Northwest and Southern Europe and Gulf States.
Asia Pacific Momentum
Asia Pacific segment income rose 10% on 17% unit volume gains, with notable growth across Vietnam, Cambodia, and China driven by commercial adjustments and cost reduction programs.
Cash Generation and Capital Returns
Company returned in excess of $250 million to shareholders in Q1, repurchased ~6% of outstanding shares over the last five quarters, plans approximately $600 million of repurchases for 2026, and maintains FCF guidance of ~ $900 million after ~$550 million of CapEx.
Solid Segment and Company-Level Guidance
Q2 adjusted EPS guidance of $2.10–$2.20 and full-year guidance of $7.90–$8.30 (including a $0.10/share headwind from the Middle East) with net leverage expected to finish near 2.5x.
Operational Milestones and Capacity Investments
Company recorded its highest-ever shipment day and strongest shipment month (March); ongoing growth projects and greenfield expansions in Brazil, Greece, Spain and India (India greenfield ~2.2 billion units added; India market ~4–5 billion units and growing 15–20% annually).
Other Segment Strength
North American food cans volumes up 3% and 'Other' segment income increased by $18 million; beverage can equipment income tripled year-over-year in the quarter (off a smaller base) with improving order inflows.
Operator
Thank you for standing by. The conference will begin shortly. Until such time, you will hear music. Thank you, and please continue to stand by. Good morning, and welcome to Crown Holdings, Inc. First Quarter 2026 Conference Call. Your lines have been placed on a listen-only mode until the question and answer session. Please be advised that this conference is being recorded.
I would now like to turn the conference over to Mr. Kevin Charles Clothier, Senior Vice President and Chief Financial Officer. You may begin.
Kevin Charles Clothier
Thank you, Elle, and good morning. With me on today's call is Timothy J. Donahue, President and Chief Executive Officer. If you do not already have the earnings release, it is available on our website at crowncourt.com. On this call, as in the earnings release, we will be making a number of forward-looking statements. Actual results could vary from such statements. Additional information concerning factors that could cause actual results to vary is contained in the press release and our SEC filings, including our Form 10-K for 2025 and subsequent filings. Earnings for the quarter were $1.56 per share, compared to $1.65 per share in the prior-year quarter.
Adjusted earnings per share were $1.86, up 11% compared to $1.67 in the prior-year quarter. Net sales for the quarter were up 13% compared to the prior-year quarter, reflecting a 5% increase in global beverage can volumes, $234 million from the pass-through of higher raw material cost, and $74 million from favorable foreign exchange. Segment income was $405 million in the quarter, compared to $398 million in the p...
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