Crown Holdings beats Q2 sales, adjusted profit estimates

Overview

• Crown Holdings Q2 rev grows to $3.149 bln, beating analyst expectations

• Adjusted EPS for Q2 rises 19% to $2.15, surpassing consensus

• Company has increased its full year 2025 expectations for adjusted earnings per share and adjusted free cash flow.

Outlook

• Crown Holdings expects Q3 adjusted EPS of $1.95 to $2.05

• Beverage and food cans maker projects full-year adjusted EPS of $7.10 to $7.50

• Company anticipates $900 mln in adjusted free cash flow for 2025

• Crown Holdings reaffirms long-term net leverage ratio target of 2.5x

Result Drivers

• BEVERAGE SEGMENTS - Strong performance in Americas Beverage, European Beverage, and North American Tinplate drove segment income growth, per CEO Timothy J. Donahue

• SHIPMENT GROWTH - Increased shipments in Europe and the Middle East contributed to revenue growth

• COST REDUCTION - Stable results in Transit Packaging attributed to ongoing cost reduction efforts despite a tepid industrial production environment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "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 $125.00, about 15% above its July 18 closing price of $106.23

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn16bpZBa