Crown Holdings, Inc. Reports Financial Results for the Quarter Ended March 31, 2025
Crown Holdings, Inc. reported its quarterly financial results for the period ended March 31, 2025. The company’s net sales increased by 4.5% to $2.3 billion, driven by growth in all three of its business segments: Beverage Packaging, Food Packaging, and Specialty Packaging. Net income rose to $143 million, or $1.23 per diluted share, compared to $134 million, or $1.15 per diluted share, in the same period last year. The company’s gross margin expanded by 120 basis points to 24.1%, while operating margin increased by 140 basis points to 12.3%. Crown Holdings’ cash and cash equivalents totaled $1.1 billion, and the company had no outstanding debt. The company’s financial performance was driven by its ability to increase prices, reduce costs, and benefit from favorable foreign exchange rates.
Financial Performance Overview
Crown Holdings, Inc., a leading global packaging company, has reported its financial results for the first quarter of 2025. The company’s overall performance shows a mix of positive and challenging trends across its various business segments.
Net sales for the quarter increased by 3.7% to $2,887 million, primarily driven by the pass-through of higher material costs, increased beverage can volumes in the Americas and Europe, and higher North American food can volumes. However, these gains were partially offset by unfavorable foreign currency translation and lower volumes in the Transit Packaging segment.
Segment income, the company’s key performance metric, improved across most business units. The Americas Beverage and European Beverage segments saw increases in segment income due to higher volumes and improved manufacturing performance. The Asia Pacific segment also reported higher segment income, driven by better operational efficiency. In contrast, the Transit Packaging segment experienced a decline in segment income due to unfavorable product mix and foreign currency translation.
Operational Highlights and Trends
The company’s strategy is focused on pursuing profitable growth opportunities while maintaining a strong balance sheet and returning cash to shareholders. To meet the growing global demand for beverage cans, Crown Holdings has made significant investments in new manufacturing facilities and production lines since 2019, totaling approximately $2 billion. The company expects its current installed capacity to be sufficient to meet anticipated demand growth in 2025, with capital spending projected to be around $450 million.
The company continues to actively manage various challenges, including supply chain disruptions, foreign exchange fluctuations, interest rate changes, and inflationary pressures on raw materials, energy, and transportation costs. Crown Holdings utilizes various strategies to mitigate these risks, such as matching purchase obligations with sales agreements, using contractual pass-through provisions, and employing commodity forward contracts.
The company’s commitment to sustainability remains a key focus, as evidenced by its “Twenty by 30” program, which outlines 20 measurable environmental, social, and governance goals to be achieved by 2030. In 2024, the company was recognized for its efforts, earning the top spot in the Sustainalytics “Container and Packaging” industry category.
Segment Performance Analysis
The Americas Beverage segment, which includes operations in the U.S., Brazil, Canada, Colombia, and Mexico, reported a 7.9% increase in net sales and a 24.9% improvement in segment income. This was primarily driven by the pass-through of higher aluminum costs and a 3% increase in volumes, partially offset by unfavorable foreign currency translation.
The European Beverage segment saw a 6.2% increase in net sales and a 31.4% improvement in segment income, mainly due to the pass-through of higher aluminum costs and a 5% volume increase, partially offset by unfavorable foreign currency translation.
The Asia Pacific segment’s net sales remained flat compared to the prior year, while segment income increased by 11.9%, primarily due to improved manufacturing performance and savings from prior restructuring actions. The segment continues to face volume softness across its markets, leading to the closure of the beverage can facility in Sihanoukville, Cambodia.
The Transit Packaging segment reported a 7.3% decrease in net sales and a 11.8% decline in segment income. This was primarily attributable to the pass-through of lower material costs, a 2.5% decrease in equipment volumes, and unfavorable foreign currency translation, partially offset by improved steel and plastic consumable volumes.
The company’s Other segment, which includes food cans, aerosol cans, and closures businesses in North America, as well as beverage tooling and equipment operations, saw a 4.6% increase in net sales and a significant improvement in segment income. This was driven by a 16% increase in food can volumes and improved manufacturing performance.
Financial Position and Liquidity
Crown Holdings maintains a strong financial position, with a focus on generating robust cash flow and maintaining a healthy balance sheet. As of March 31, 2025, the company had $779 million in cash and cash equivalents, with $650 million held outside the U.S.
The company’s revolving credit agreements provide a capacity of $1,650 million, with $1,620 million available as of March 31, 2025. The company’s total net leverage ratio of 2.6 to 1.0 at the end of the quarter was well within the covenant requirement of no greater than 4.5 to 1.0.
To further strengthen its financial flexibility, the company utilizes a securitization facility with a program limit of up to $800 million, as well as additional securitization facilities totaling $390 million. These facilities, along with the company’s cash flows from operations and borrowings under its revolving credit facility, are the primary sources of liquidity.
The company’s debt agreements contain covenants that limit its ability to incur additional debt, pay dividends, or repurchase capital stock, among other restrictions. However, the company has the flexibility to undertake these actions provided it maintains compliance with the applicable financial and other covenants.
Outlook and Future Considerations
Looking ahead, Crown Holdings remains cautiously optimistic about its future prospects. The company expects to have the necessary capacity to meet the anticipated demand growth in its key markets, with capital spending projected to be around $450 million in 2025.
The company continues to monitor the potential impacts of the ongoing conflicts in the Middle East and the Russia-Ukraine war, as well as the implementation of the Pillar II directive by various jurisdictions, which establishes a global minimum corporate tax rate of 15%. While the company does not currently expect Pillar II to have a material impact on its financial results, it remains vigilant in assessing any changes or additional guidance from the OECD.
The company’s focus on sustainability and its commitment to the “Twenty by 30” program demonstrate its dedication to integrating environmental, social, and governance considerations into its operations. This strategic emphasis on sustainability is likely to enhance the company’s long-term competitiveness and appeal to environmentally conscious consumers and investors.
Conclusion
Crown Holdings’ first-quarter 2025 financial results reflect a mixed performance, with improvements in some segments offset by challenges in others. The company’s strategic focus on profitable growth, strong liquidity, and commitment to sustainability position it well to navigate the evolving market conditions and capitalize on emerging opportunities. As the company continues to execute its strategic initiatives, investors and stakeholders will closely monitor its ability to maintain its competitive edge and deliver sustainable long-term value.
