Ardagh Metal Packaging (NYSE:AMBP) raised its full-year adjusted EBITDA outlook after second-quarter results came in ahead of expectations, with management citing stronger-than-expected performance in Europe and favorable input cost recovery.
Chief Executive Officer Oliver Graham said the company delivered second-quarter adjusted EBITDA of $240 million, up 14% from the prior-year period and above its guidance range of $210 million to $220 million. Global beverage can sales declined 1% year over year, which Graham said was in line with expectations as the company cycled 5% growth in the prior-year quarter.
“Our performance year-to-date is testament to the resilience of our business,” Graham said. “In an uncertain macroeconomic environment, AMP has delivered strong second quarter adjusted EBITDA growth of 14% versus the prior year, significantly ahead of expectations.”
Europe Drives Earnings Beat
In Europe, second-quarter revenue rose 13% to $698 million, or 10% on a constant currency basis, compared with the same period in 2025. Graham said the increase reflected favorable volume and mix effects, along with the pass-through of higher input costs, including aluminum prices.
European shipments increased 5% in the quarter, supported by strong underlying demand and the ramp-up of newly contracted volumes. Graham said the company saw growth in carbonated soft drinks, energy drinks and several smaller growing beverage categories. He also noted improved underlying beer performance, while saying reported year-over-year beer can shipments were reduced by specific contract losses.
Adjusted EBITDA in Europe rose 36% to $105 million, or 33% on a constant currency basis. Graham attributed the increase primarily to stronger input cost recovery, including a favorable metal pricing timing impact, and volume growth, partly offset by higher operations and overhead costs.
Graham said the company remains well covered for its direct energy needs through hedging programs. He said Ardagh Metal Packaging is more than 85% covered for 2026 energy requirements, approximately 80% covered for 2027 and nearly 70% covered for 2028.
The company reaffirmed its expectation for approximately 3% volume growth in Europe for 2026. Graham said beverage can consumption trends in available scanner data remain “very positive” and that capacity remains tight in the region.
Company Upsizes U.K. and Spain Projects
Ardagh Metal Packaging said it will increase planned investments in the U.K. and Spain following customer discussions and strong demand in those markets. Chief Financial Officer Stefan Schellinger said the company now expects total 2026 capital expenditures of $240 million, up $40 million from prior guidance, driven by the upsizing of those new capacity investments.
Graham said the company is also reviewing the timing of the projects because of demand strength and will provide an update later.
“Capacity remains tight in the region, and our production volumes in the quarter benefited from the network optimization actions that we undertook,” Graham said.
Americas Revenue Rises Despite Shipment Declines
In the Americas, second-quarter revenue increased 21% to just over $1 billion, mainly reflecting the pass-through of higher input costs to customers, including metal costs and freight cost pass-throughs. Lower shipments partly offset the revenue increase.
Adjusted EBITDA in the Americas rose 2% to $135 million. Graham said results were broadly in line with expectations, with lower operations and overhead costs offsetting lower input cost recovery and lower shipments.
North American shipments declined 5% in the quarter. Graham said the decline reflected expected contract resets, metal supply chain challenges at the start of the quarter and comparison with 8% growth in the prior-year period. He said metal supply availability in North America improved significantly during the quarter and the company expects normal supply conditions in the second half.
Graham said industry demand in North America remains robust outside of beer, a category where AMP has low single-digit exposure. He highlighted continued strength in energy drinks and specialty can formats.
Ardagh Metal Packaging continues to expect low single-digit industry growth in North America in 2026, while expecting its own full-year volumes to decline slightly because of contract resets. Graham said the company expects a more favorable second-half volume performance and a return to growth in 2027 “at least in line with the industry,” supported by additional customer filling locations.
In Brazil, second-quarter shipments decreased 15%. Graham said the decline reflected customer mix effects after the company outperformed in the first quarter, when volumes grew 14%. He said increased World Cup-related activity by a leading market player negatively affected customer performance, as did maintenance downtime by one customer. Management now expects low single-digit industry growth in Brazil for 2026 and for AMP volumes to broadly track the market.
Guidance Raised, Free Cash Flow Outlook Unchanged
Ardagh Metal Packaging raised its 2026 full-year adjusted EBITDA guidance to a range of $775 million to $790 million. Graham said the outlook assumes some reversal of favorable metal price timing effects and first-quarter revaluation gains related to freight cost hedging. He also cited inflationary headwinds tied to freight costs and other direct materials affected by oil prices amid conflict in the Middle East.
For the third quarter, the company expects adjusted EBITDA of $200 million to $210 million, compared with $208 million in the prior-year quarter on a constant currency basis.
Schellinger said Ardagh Metal Packaging ended the quarter with liquidity of $647 million. Net leverage was 5.2 times net debt to last-12-month adjusted EBITDA, compared with 5.3 times at the end of June 2025, or 5.7 times on a like-for-like basis after pro forma treatment of last year’s preferred share refinancing with debt.
For 2026, Schellinger said the company expects:
- Total capital expenditures of $240 million, including growth investments;
- Cash interest of $220 million;
- Lease principal repayments of approximately $150 million;
- Cash taxes of approximately $30 million;
- A small working capital outflow.
He said the company’s full-year adjusted free cash flow expectation remains unchanged. Ardagh Metal Packaging also announced an unchanged quarterly ordinary dividend of $0.10 per share.
Boston Beer Award Increases With Interest
Management also provided an update on litigation involving Boston Beer. Graham said that on May 26, 2026, a court entered an amended final judgment to include $15.5 million in prejudgment interest, bringing the total expected award value to approximately $190 million on a pre-tax basis. He said Boston Beer has posted a bond with the court to cover the award value and has filed a notice of appeal.
Graham also marked Ardagh Metal Packaging’s 10-year anniversary, saying the company has invested more than $2 billion in growth capital over that period, increased capacity by more than 30% and expanded specialty cans to more than 50% of volumes.
About Ardagh Metal Packaging (NYSE:AMBP)
Ardagh Metal Packaging (NYSE: AMBP) is a global supplier of metal packaging solutions, specializing in the production of steel and aluminum beverage cans, food cans and ends. As a segment of the Ardagh Group, the company supports a broad range of food and beverage customers, including soft drink and craft beer producers, as well as food manufacturers requiring durable, recyclable packaging. Its product portfolio encompasses two‐piece and three‐piece cans, a variety of can ends and closures, and value‐added services such as custom lithography and decorating.
The company operates a network of manufacturing plants across North America and Europe, serving both regional and multinational clients.
