Ball faces North American capacity constraints

Ball Corp. reported low single-digit shipments growth in North America and Europe, the Middle East, and Africa (EMEA), offset by a mid-single-digit decline in South America.

Ball did not provide absolute shipment volume figures in its first-quarter earnings, instead reporting growth in percentage terms.

In North and Central America, shipments increased at a low single-digit rate year over year, supported by demand in energy drinks and non-alcoholic beverages.

EMEA volumes also increased by low single digits, though the results included timing impacts from the Benepack acquisition and prior portfolio changes. Ball entered an agreement to acquire a majority stake in Benepack’s beverage can production facilities in Belgium and Hungary in December 2025. South America declined by mid-single digits due to customer timing and inventory positions entering the quarter.

Management indicated that volumes began to recover exiting the quarter, with April shipments up mid-single digits companywide and South America deliveries rebounding by approximately 20% year over year.

For 2026, Ball expects global volume growth in the 2% to 3% range, with North America at the low end due to capacity limits.

North American capacity

The North American business continues to operate with limited available capacity, which impacts both near-term volumes and capital spending decisions.

Management stated the company is “volume constrained” in North America, with demand exceeding current production capacity.

Ball said its global can network is operating at utilization levels in the mid- to high-90% range, following several years of demand growth that has absorbed previously available capacity.

Only a minority of volumes turn over annually, bolstering the long-term nature of customer agreements and limiting near-term exposure to spot demand fluctuations.

Capacity additions

The constraint supports ongoing investment, including the Millersburg, Ore., facility, which remains on track for full ramp-up in 2027 and could mean about 1.5 billion units of capacity, according to comments from Chairman and CEO Daniel Fisher on the company’s third-quarter 2025 earnings call.

New capacity additions remain tied to customer commitments. Ball said it would not build new plants without long-term offtake agreements covering essentially all output, with capacity at its Millersburg facility already committed years in advance.

The Millersburg plant is expected to address regional supply constraints in the Pacific Northwest, a topic discussed by AMU in June 2025, and add volume to the North American system beginning in 2026.

Ball also indicated it has intentions to build additional capacity on the US East Coast, citing growth from a strategic customer, with North Carolina identified as the location.

The comments likely refer to previously reported plans for a vertically integrated campus in Concord, N.C., developed alongside Red Bull and Rauch, which is expected to include can production, filling operations, and distribution infrastructure. The facility is slated to begin operations in 2028, with capacity of up to three billion cans annually.

Contracts and backlogs

The company is fully contracted for 2026 and more than 90% contracted for 2027.

Longer term, capacity is “basically 50% sold” through the end of the decade, which supports forward volumes and demand visibility.

This level of contract coverage reinforced management’s indication that the business is effectively sold out in key regions.

Financial performance

First-quarter net sales were $3.6 billion, up from $3.1 billion in the prior year, while net earnings increased to $205 million from $179 million over the same period.

The increase in revenue was driven by a combination of modest shipment growth and higher price/mix, with the latter due to the pass-through of higher aluminum costs.

By segment, North and Central America generated $1.78 billion in sales, up from $1.46 billion, while EMEA sales increased to $1.11 billion from $958 million year over year. Quarterly South American sales rose to $585 million, up from $544 million year over year.

Despite global shipment growth of less than 1%, comparable operating earnings growth rose 10% from the previous year period, which Ball attributed to cost control and higher profit per unit rather than volume expansion.

Nicholas Bell

Nicholas brings over half a decade of experience covering metals markets, pricing trends, and supply chain dynamics. Prior to joining AMU, he reported on aluminum, high-temperature scrap, and ferro-alloy markets at Argus Media, with additional coverage of minor metals and rare earths. His work has built deep expertise in North American metals pricing and trade flows. A native of Houston, Nicholas holds a bachelor’s degree in Media Production and an MBA with a concentration in Finance, both from the University of Houston.