Ball announces $250 million accelerated share repurchase

Published 16/06/2025, 14:06
Ball announces $250 million accelerated share repurchase

WESTMINSTER, Colo. - Ball Corporation (NYSE: BALL), currently valued at $15.1 billion, today announced an agreement to repurchase approximately $250 million of its outstanding common stock through a privately negotiated accelerated stock repurchase transaction with Crédit Agricole CIB. According to InvestingPro analysis, management has been consistently aggressive with share buybacks, supporting shareholder returns alongside a remarkable 53-year streak of dividend payments.

The transaction, which begins today, will use cash on hand and available borrowings to reduce Ball’s outstanding common stock. Final share counts will be determined based on the volume weighted average price over the agreement period, with potential settlement adjustments based on market price terms.

"This share buyback, which is part of our previously announced planned purchases for the year, enables us to most efficiently deliver on our goal of returning at least $1.5 billion to shareholders by year-end," said Daniel W. Fisher, chairman and chief executive officer of Ball Corporation.

Ball Corporation supplies aluminum packaging solutions for beverage, personal care and household products customers. The company employs 16,000 people worldwide and reported 2024 net sales of $11.80 billion, excluding its divested aerospace business. InvestingPro data shows the company maintains strong financial health with positive earnings expectations, as evidenced by six analysts recently revising their earnings forecasts upward. For detailed insights into Ball Corporation’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The announcement comes as part of Ball’s previously disclosed capital allocation strategy. The repurchase agreement includes customary market price adjustment terms that may require a settlement to be made by Ball, or to Ball, based on the volume weighted average trading price of the company’s common stock over an agreed upon period.

This article is based on a press release statement from Ball Corporation.

In other recent news, Ball Corporation reported its first-quarter 2025 earnings, showcasing an EPS of $0.76, which surpassed the forecasted $0.71. The company’s revenue also exceeded expectations, reaching $3.1 billion against the anticipated $2.9 billion. Truist Securities responded to these strong results by raising Ball Corp’s stock price target to $62 from $58, while maintaining a Buy rating. Additionally, Ball Corporation has successfully completed an €850 million public offering of senior notes due in 2032, a move aligned with its strategy to manage its capital structure and support long-term growth. The offering was upsized from an initial €750 million due to high demand and carries an interest rate of 4.250%.

Ball Corporation plans to use the proceeds from this offering for general corporate purposes, including debt refinancing and investments. In other developments, President Trump’s recent increase in aluminum tariffs is expected to impact beverage can producers like Ball Corporation. Analysts suggest that the tariff hike could lead to a 2% retail price inflation, though the immediate impact might be mitigated by commodity hedging practices. Despite these challenges, Ball Corporation continues to focus on its strategic initiatives, including share repurchases and capital expenditures, to drive future growth.

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