Description
Aluminum cans are infinitely recyclable; ~70% recycled content; invests in closed-loop recycling infrastructure.
Created
Mar 26, 2025 6:47 PM
Circular Economy Involvement
Company Name
Ball Corporation
Cover Image
Industry/Subsector
Packaging – Aluminum Beverage Cans
Investment Thesis
Market CapitalizationMarket Capitalization
Multi-selectMarket Capitalization
~$14 billionPure-play on sustainable packaging; strong margins; stable demand; synergy with ESG trends; reliable cash flow.
Recent Financial Performance
Stock
~$12.06B packaging revenue, ~$920M net income, ~7.6% margin, ROE ~18%, debt/equity ~1.0
Ticker
BALL
- Industry/Subsector: Packaging – Aluminum Beverage Cans (Sustainable Materials)
- Market Capitalization: ~$14 billion
- Circular Economy Involvement: Ball Corporation is a leading manufacturer of aluminum cans, bottles, and cups – products that are infinitely recyclable and central to a circular packaging economy. Aluminum is often cited as a model material for circularity since it can be recycled repeatedly without losing quality. Ball has embraced this fully: as of 2023, the company’s beverage cans contained 70% recycled content, on average, one of the highest rates in the industry. Ball actively works to increase recycling rates through industry coalitions and advocates for deposit return systems to recirculate more cans. In Ball’s own words, it is “contributing to a circular economy through… aluminum packaging products that are durable, lightweight and recyclable”, and sees circularity as integral to its business value and to its customers’ sustainability goals. By replacing single-use plastic bottles with aluminum and using recycled metal, Ball helps close the loop in packaging.
- Recent Financial Performance: Ball’s financials have been in transition due to the 2023 sale of its aerospace division. Focusing on its core packaging segment, Ball had $12.06 billion in 2023 packaging sales (pro forma, excluding aerospace) and comparable net earnings of $920 million. This equates to a net margin of ~7.6%. In 2024, despite a small dip in sales, Ball grew comparable EPS by 9% (to $3.17), indicating margin improvements. Pre-divestiture ROE averaged around 17–20%, though 2024’s reported ROE was inflated by the one-time gain on the aerospace sale. Ball carries a moderate debt load (debt/equity ~1.0 after using some sale proceeds to reduce debt), and its stable cash flows from the beverage can business support ongoing debt reduction, dividends, and share repurchases.
- Investment Thesis: Ball Corporation presents a compelling long-term play on sustainable packaging. Demand for aluminum cans is growing as beverage companies and consumers shift away from plastic due to environmental concerns. Ball, as a market leader, is positioned to benefit from this secular trend. The company’s focus on high recycled content not only appeals to ESG-minded customers but also reduces raw material costs (recycled aluminum uses 95% less energy than virgin production). With the aerospace sale, Ball is now a pure-play packaging company and has refocused on operational efficiency and innovation in can design. Investors can expect relatively stable growth (tied to global beverage consumption), improved margins as inflationary costs are passed through, and a solid capital return profile. Ball’s commitment to circular economy principles isn’t just good for the planet – it’s a strategic advantage that can drive customer loyalty (brands want sustainable packaging) and potentially policy incentives. In summary, Ball offers steady earnings with an ESG tilt, making it a strong candidate for long-term value creation as “aluminum replaces plastic” in the packaging world.