Crown (NYSE:CCK) closed out 2025 with higher adjusted earnings and record cash generation, as management highlighted resilient global beverage can demand, continued margin discipline, and an active shareholder return program during the company’s fourth-quarter earnings call.
Quarterly results shaped by prior-year divestiture gain
Chief Financial Officer Kevin Clothier said fourth-quarter earnings were $1.31 per share versus $3.02 a year earlier, when results included a $2.32 per share gain from the sale of Eviosys. On an adjusted basis, earnings were $1.74 per share, up 9% from $1.59 in the prior-year quarter.
Record 2025 EBITDA and free cash flow; leverage target achieved
For the full year, Crown delivered what management described as record results across key financial metrics. Clothier said the company generated record adjusted EBITDA of almost $2.1 billion, up from the prior-year record of $1.9 billion in 2024, driven by “strong commercial and operational performance across the beverage and tinplate businesses.”
Free cash flow also hit a record $1,146 million in 2025, compared with $814 million in 2024. Clothier said the improvement was largely due to higher EBITDA and lower pension contributions.
Management emphasized balance sheet progress as well. Crown reached its net leverage target of 2.5x by the end of September 2025, improving from 2.7x at the end of 2024.
Shareholder returns and capital allocation priorities
Crown continued to return capital to shareholders, including $191 million in share repurchases during the fourth quarter. For the year, the company returned $625 million through $505 million of buybacks and $120 million in dividends, up from $336 million returned in 2024.
In the Q&A, Clothier said the company’s 2026 plan assumes roughly $650 million of share repurchases, spread across the year to allow flexibility “to be opportunistic” depending on valuation and timing.
Chief Executive Officer Tim Donahue said Crown does not currently see packaging M&A opportunities that would “meaningfully improve” the company, adding that management views buybacks as the best use of excess cash after investing in the business.
Business trends: Europe strength, North America steady, Brazil softer, Asia disrupted
Donahue said global beverage can unit volumes rose 3% in the quarter. In the Americas, beverage volumes increased a bit more than 1%, with 2.5% growth in North America offset by a 3% decline in Brazil. For the full year, North America was flat while Brazil was down 3%. Donahue said the Americas Beverage segment delivered record income of over $1 billion for the year, supported by operating performance and mix, with margins (adjusted for aluminum pass-through) within 30 basis points of the prior-year fourth quarter.
Looking to 2026, Crown expects North American volume gains of 2%–3%, though Donahue cautioned that segment income could be “down a touch” due to inflationary pressures, tariffs, and startup costs tied to a new line in Brazil. On Brazil, Donahue cited softer consumption and a shift toward larger returnable bottles, while noting Crown remains positive on the market over a multi-year horizon. When asked for a planning assumption, he suggested using 3% growth for both the industry and Crown, while emphasizing it is early.
Europe remained a standout. Donahue said European beverage volumes increased 10% in the quarter and 10% for the full year, producing record segment income that is “more than double” what it was only a few years ago. While management did not provide a formal 2026 volume forecast, Donahue said investors could “pencil in 4%–5%” to start, adding that the company is “very bullish on Europe.” He pointed to ongoing substrate shifts toward cans, including beer conversion from glass and new filling capacity favoring cans.
Asia volumes were down 3% in the quarter, which Donahue attributed entirely to a border conflict between Cambodia and Thailand. He said Crown expects to “lap that sometime in the third quarter” and believes its low-cost structure enables commercial adjustments to drive growth. He also said consumer purchasing power remains subdued amid tariff concerns.
2026 outlook: EPS guidance, free cash flow, and expansion projects
Clothier guided to first-quarter 2026 adjusted earnings per diluted share of $1.70–$1.80 and full-year adjusted EPS of $7.90–$8.30. The full-year outlook includes:
- Net interest expense: approximately $350 million–$360 million, depending on buyback timing
- Exchange rates:
- Tax rate: approximately 25%
- Depreciation: approximately $330 million
- Non-controlling interest expense: approximately $140 million; dividends to non-controlling interests expected to be $110 million
Crown expects 2026 free cash flow of approximately $900 million after $550 million of capital spending, which will support capacity expansions and facility upgrades in Brazil, Greece, and Spain. Donahue said the projects are expected to start up in the back half of 2026, with most of the volume benefit coming in 2027, alongside second-half-weighted startup costs as hiring and training ramp beginning in the second quarter.
In other segments, Donahue said Transit Packaging income declined with industrial activity, though the business continues to generate cash flow and maintain “double-digit to low teens” margins, with equipment and tools pressured by tariff-related adjustments. In North American tinplate, management cited 5% food can volume growth in the fourth quarter and said “other” income was up 80% for the year, supported by volume growth and improved operating performance. Donahue said wet pet food exposure positions Crown to grow “a touch above market” in food cans.
About Crown (NYSE:CCK)
Crown Holdings, Inc is a leading global supplier of rigid packaging products for consumer goods markets. The company designs, manufactures and sells metal packaging for beverage, food, household, personal care and specialty products. Its portfolio includes aluminum and steel beverage cans, steel food cans, aluminum aerosols, metal closures and ends, offering customers end-to-end solutions from design and prototyping to large-scale production.
Founded in 1919 as the Crown Cork & Seal Company, Crown has grown through strategic acquisitions and investments in advanced manufacturing technologies.
