Crown Holdings Q4 revenue beats expectations, helped by higher European Beverage shipments

Overview

• Packaging supplier's Q4 revenue rose, beating analyst expectations

• Adjusted EPS for Q4 increased 9%, beating analyst expectations

• Company reduced net leverage ratio to 2.5x from 2.7x in 2024

Outlook

• Crown Holdings expects full-year 2026 adjusted EPS between $7.90 and $8.30

• Company anticipates 2026 adjusted free cash flow of approximately $900 mln

• Crown Holdings plans $550 mln capital spending for growth in Brazil, Greece, Spain

Result Drivers

• EUROPEAN BEVERAGE SHIPMENTS - Higher shipments in European Beverage contributed to increased net sales in Q4

• MATERIAL COST PASS-THROUGH - $189 mln in higher material costs were passed through to customers, affecting Q4 sales

• FOREIGN CURRENCY IMPACT - Favorable foreign currency translation added $58 mln to Q4 net sales

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

• Wall Street's median 12-month price target for Crown Holdings Inc is $120.00, about 7.6% above its February 3 closing price of $111.55

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn8M76X6a

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