Ardagh Metal Packaging's Q2 revenue beats, anticipates minimal tariff impact

Overview

• Ardagh Metal Packaging Q2 revenue grows 16% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q2 rises 18%, surpassing estimates, per LSEG data

• Adjusted EPS of $0.08 beats consensus estimate of $0.07, per LSEG data

Outlook

• Company raises full-year Adjusted EBITDA guidance to $705-$725 mln

• Company maintains full-year shipments growth forecast range of 3-4%

• Company expects Q3 Adjusted EBITDA of $200-$210 mln, up from $196 mln in Q3 2024

• Company anticipates minimal impact from announced tariff measures

Result Drivers

• AMERICAS GROWTH - Strong volume growth in Americas drives 34% increase in Adjusted EBITDA

• EUROPE CHALLENGES - Lower input cost recovery impacts European Adjusted EBITDA, despite revenue growth

• BRAZIL PERFORMANCE - Brazil volumes outperformed industry with 12% growth, boosting overall results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "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 Ardagh Metal Packaging SA is $4.50, about 3.1% below its July 23 closing price of $4.64

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn9PG4fSa