Crown Holdings Posts Strong Q1 Results, Guides Full-Year Adjusted Earnings Per Share at $7.90-$8.30
The conference call transcript for Crown Holdings' first quarter 2026 earnings has revealed a strong start to the year for the company, with adjusted earnings per share rising 11% to $1.86 compared to $1.67 in the prior-year quarter.
Net sales for the quarter were up 13% compared to the prior year quarter, reflecting a 5% increase in global beverage can volumes, $234 million from the pass-through of higher raw material costs, and $74 million from favorable foreign exchange. Segment income was $405 million in the quarter, compared to $398 million in the prior year, reflecting higher beverage can shipments in Europe and Asia Pacific, partially offset by lower volumes in Brazil and lower cost recovery in Americas Beverage.
President and Chief Executive Officer Timothy J. Donahue highlighted the company's performance, stating that "the company had a firm start to the year with earnings per share up 11% over 2025." He also noted that global beverage unit volumes were up 5% in the quarter on the back of strong demand across Europe and Asia Pacific.
However, the conflict in the Middle East continues to create volatility across energy, transportation, and direct materials such as aluminum and coatings. The company has included a full-year $0.10 per share headwind to account for increased costs related to ocean freight, energy, and direct materials. This includes a $0.05 per share headwind in both the second quarter and the second half of the year.
In Americas Beverage, sales increased by 16% in the quarter, primarily reflecting the pass-through of higher material costs. Unit volumes in the Americas were up 1% to the prior-year first quarter, with North America up 1% and Brazil down 5%. Income was down about 10% in the quarter in line with expectations owing to volume mix effects, Q1 cost timing, and higher cost inputs not recovered through our contractual pricing formula.
Despite these challenges, the company remains confident in its full-year guidance. Second-quarter 2026 adjusted earnings per diluted share are projected to be in the range of $2.10 to $2.20 per share, with a full-year projection of $7.90 to $8.30 per share.
The company's net leverage was 2.7 times at the end of the first quarter, reflecting seasonal working capital build. However, it expects year-end net leverage to be approximately 2.5 times, in line with its long-term target. Share repurchases are expected to be approximately $600 million, and dividends to non-controlling interest are expected to be $110 million.
