CROWN HOLDINGS, INC. REPORTS SECOND QUARTER 2025 RESULTS

TAMPA, Fla., July 21, 2025 /PRNewswire/ -- Crown Holdings, Inc. (NYSE: CCK) today announced its financial results for the second quarter ended June 30, 2025.

Highlights

Second Quarter

• Diluted earnings per share of $1.56 versus $1.45 in 2024
• Adjusted diluted earnings per share increased 19% to $2.15 compared to $1.81 in 2024
• Income from operations of $391 million versus $379 million in 2024
• Segment income improved $39 million, or 9% to $476 million

2025 Outlook

• Expect third quarter adjusted diluted earnings per share of $1.95 to $2.05
• Full year guidance range for adjusted diluted earnings per share of $7.10 to $7.50 with adjusted free cash flow of approximately $900 million
• Reaffirming long-term net leverage ratio target of 2.5x

Commenting on the quarter, Timothy J. Donahue, Chairman, President and Chief Executive Officer, stated, "During the second quarter, continued strong performance, led by Americas Beverage, European Beverage and the North American Tinplate businesses led to segment income growth of 9% over the prior year.  In addition to shipment growth in Europe and the Middle East, the improvement also reflects favorable product mix and exceptional operational performance throughout global operations.  Beverage can shipments in North America advanced 1% in line with expectations.  Transit Packaging results remained firm to the prior year, despite a continued tepid industrial production environment, the result of continuing cost reduction efforts.

"We remain excited about the Company's prospects in 2025 with trailing twelve-month adjusted EBITDA through June approaching $2.1 billion, an 11% increase from same prior period.  Reflecting on the Company's strong performance over the first six months, the Company has increased its full year 2025 expectations for adjusted earnings per share and adjusted free cash flow. The balance sheet is strong, and we are well on our way to achieving our long-term target leverage ratio of 2.5x of adjusted EBITDA.  As a result, the Company is well positioned to increase its return of cash to shareholders."

Net sales in the second quarter were $3,149 million compared to $3,040 million in the second quarter of 2024 reflecting increased shipments of both beverage and food cans in North America, as well as across European Beverage, the pass through of $120 million in higher material costs and favorable foreign currency translation of $23 million, partially offset by lower shipments in Asia Pacific and Transit Packaging.

Income from operations was $391 million in the second quarter compared to $379 million in the second quarter of 2024.  Segment income in the second quarter of 2025 was $476 million compared to $437 million in the prior year second quarter and includes continuing improvements to operational performance.

Net income attributable to Crown Holdings in the second quarter was $181 million compared to $174 million in the second quarter of 2024.  Reported diluted earnings per share were $1.56 in the second quarter of 2025 compared to $1.45 in 2024 and adjusted diluted earnings per share were $2.15 compared to $1.81 in 2024.

Six Month Results
Net sales for the first six months of 2025 were $6,036 million compared to $5,824 million in the first six months of 2024, reflecting the pass through of $214 million in higher material costs and higher shipments in Americas Beverage, European Beverage and North America food can, partially offset by lower shipments in Asia Pacific and Transit Packaging.

Income from operations was $756 million in the first half of 2025 compared to $624 million in the first half of 2024.  Segment income in the first half of 2025 was $874 million compared to $745 million in the prior year period and includes the benefits of improved manufacturing performance and savings from prior year restructuring actions in Asia Pacific.

Net income attributable to Crown Holdings in the first six months of 2025 was $374 million compared to $241 million in the first six months of 2024. Reported diluted earnings per share were $3.21 compared to $2.01 in 2024.  Adjusted diluted earnings per share were $3.81 compared to $2.83 in 2024.

Outlook
"In view of strong first half performance, the Company has increased its full year 2025 guidance range to $7.10 to $7.50 of adjusted diluted earnings per share while we continue to closely monitor the potential impacts of tariffs on consumers and industrial activity," commented Kevin C. Clothier, Senior Vice President and Chief Financial Officer.  The Company expects third quarter adjusted diluted earnings per share to be in the range of $1.95 to $2.05.

The Company expects to generate approximately $900 million in adjusted free cash flow in 2025 after capital spending of approximately $450 million with the adjusted effective tax rate expected to be approximately 25%.

Non-GAAP Measures
Segment income, adjusted free cash flow, net debt, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share, net interest expense, EBITDA and adjusted EBITDA are not defined terms under U.S. generally accepted accounting principles (non-GAAP measures).  Non-GAAP measures should not be considered in isolation or as a substitute for income from operations, cash flow, leverage ratio, net income, effective tax rates, diluted earnings per share or interest expense and interest income prepared in accordance with U.S. GAAP and may not be comparable to calculations of similarly titled measures by other companies.

The Company views segment income as the principal measure of the performance of its operations and adjusted free cash flow and adjusted net leverage ratio as the principal measures of its liquidity.  The Company considers all of these measures in the allocation of resources.  Adjusted free cash flow has certain limitations, however, including that it does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.  The amount of mandatory versus discretionary expenditures can vary significantly between periods.  The Company believes that adjusted free cash flow and adjusted net leverage ratio provide meaningful measures of liquidity and a useful basis for assessing the Company's ability to fund its activities, including the financing of acquisitions, debt repayments, share repurchases or dividends.  The Company believes that adjusted net income, segment income, the adjusted effective tax rate and adjusted diluted earnings per share are useful in evaluating the Company's operations as these measures are adjusted for items that affect comparability between periods.  Segment income, adjusted free cash flow, net debt, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share, net interest expense, EBITDA and adjusted EBITDA are derived from the Company's Consolidated Statements of Operations, Cash Flows and Consolidated Balance Sheets, as applicable, and reconciliations to segment income, adjusted free cash flow, net debt, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share and adjusted EBITDA can be found within this release.  Reconciliations of estimated adjusted diluted earnings per share, adjusted free cash flow, the adjusted effective tax rates and adjusted net leverage ratio for the third quarter and full year of 2025 to estimated diluted earnings per share, operating cash flow, the effective tax rate and income from operations on a GAAP basis are not provided in this release due to the unavailability of estimates of the following, the timing and magnitude of which the Company is unable to reliably forecast without unreasonable efforts, which are excluded from estimated adjusted diluted earnings per share, the adjusted effective tax rates and adjusted net leverage ratio, and could have a significant impact on earnings per share, the effective tax rate and income from operations on a GAAP basis: gains or losses on the sale of businesses or other assets, restructuring and other costs, asset impairment charges, asbestos-related charges, losses from early extinguishment of debt, pension settlement and curtailment charges, the tax and noncontrolling interest impact of the items above, and the impact of tax law changes or other tax matters.

Conference Call
The Company will hold a conference call tomorrow, July 22, 2025, at 9:00 a.m. (EDT) to discuss this news release.  Forward-looking and other material information may be discussed on the conference call.  The dial-in numbers for the conference call are 630-395-0194 or toll-free 888-324-8108 and the access password is "packaging."  A live webcast of the call will be made available to the public on the internet at the Company's website, www.crowncork.com.  A replay of the conference call will be available for a one-week period ending at midnight on July 29, 2025.  The telephone numbers for the replay are 203-369-1942 or toll free 866-510-4834.

Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements.  These forward-looking statements involve a number of risks, uncertainties and other factors, including the Company's ability to continue to operate its plants, distribute its products, and  maintain its supply chain; the future impact of currency translation; the continuation of performance and market trends in 2025, including consumer preference for beverage cans and global beverage can demand; the future impact of inflation, including the potential for higher interest rates and energy prices and the Company's ability to recover raw material and other inflationary costs, including tariffs and retaliatory trade measures; future demand for food cans; the Company's ability to deliver continuous operational improvement; future demand in the Transit Packaging segment; and the Company's ability to increase cash flow and to further reduce net leverage, that may cause actual results to be materially different from those expressed or implied in the forward-looking statements.  Important factors that could cause the statements made in this press release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2024 and in subsequent filings made prior to or after the date hereof.  The Company does not intend to review or revise any particular forward-looking statement in light of future events.

Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Tampa, Florida.

For more information, contact:
Kevin C. Clothier, Senior Vice President and Chief Financial Officer, (215) 698-5281
Thomas T. Fischer, Vice President, Investor Relations and Corporate Affairs, (215) 552-3720

Unaudited Consolidated Statements of Operations, Balance Sheets, Statements of Cash Flows, Segment Information and Supplemental Data follow.

Consolidated Supplemental Financial Data (Unaudited)
(in millions)

Reconciliation from Income from Operations to Segment Income
The Company views segment income, as defined below, as a principal measure of performance of its operations and for the allocation of resources.  Segment income is defined by the Company as income from operations adjusted to exclude intangibles amortization charges and provisions for restructuring and other.

Consolidated Supplemental Data (Unaudited)
(in millions, except per share data)

Reconciliation from Net Income and Diluted Earnings Per Share to Adjusted Net Income and Adjusted Diluted Earnings Per Share

The following table reconciles reported net income and diluted earnings per share attributable to the Company to adjusted net income and adjusted diluted earnings per share, as used elsewhere in this release. 

Adjusted net income, adjusted diluted earnings per share and the adjusted effective tax rate are non-GAAP measures and are not meant to be considered in isolation or as a substitute for net income, diluted earnings per share and effective tax rates determined in accordance with U.S. generally accepted accounting principles.  The Company believes these non-GAAP measures provide useful information to evaluate the performance of the Company's ongoing business.

Adjusted free cash flow is defined by the Company as net cash from operating activities less capital expenditures and certain other items.  A reconciliation of net cash from operating activities to adjusted free cash flow for the three and six months ended June 30, 2025 and 2024 follows.

SOURCE Crown Holdings, Inc.