Ball’s global beverage can volumes increased 4.3% year over year in the second quarter, with growth in each region, the company reported Tuesday.
“Volumes and orders came in really strong, so it obviously put a little stress and strain on our network,” said CFO Dan Rabbitt.
Ball’s 2026 framework is unchanged and the company still expects about 4% to 6% volume growth this year.
When asked whether Ball expected positive impact to volumes in North America from recent Section 232 tariff changes incentivizing domestic aluminum production, CEO Ron Lewis responded: “The short answer is no.”
“They’re just not material enough to really move the needle,” he said. Lewis elaborated that “we and the industry are concerned and keep an eye on aluminum price.” Even though Ball can pass through aluminum costs, higher prices can hit consumer demand. “So the can continues to win and grow even in that elevated cost environment for aluminum, but we would very much like to see aluminum prices lower.”
Expanding in Oregon and beyond
Ball’s new Millersburg, Oregon, production site began making cans last month. Ball is targeting a full ramp-up in 2027. The Millersburg facility has just one line and produces standard cans. So while Ball’s cans mix is continuing to shift as sleek cans become more popular, that shift isn’t the result of the Millersburg plant, Lewis clarified.
North American canmaking has been “healthily tight,” Lewis said. While the overall beverage market in North America has been relatively flat, cans are taking share from other substrates and growing 2% to 3%, Ball executives reported.
The Millersburg ramp-up will “relieve some pressure,” Lewis said. It’s expected to result in $35 million in startup costs in 2026, but none in 2027.
Outside of North America, Lewis called Europe “the land of opportunity.” Can penetration rates are lower than in the other regions Ball serves. Additionally, sustainability tailwinds are stronger and there is more investment in can-filling capacity than in Ball’s other geographies.
Recent acquisitions in Belgium and Hungary are helping with that European growth. India is another promising market where Ball has expanded capacity, executives discussed.
