Crown Holdings Posts 6% Beverage Can Volume Growth, Tightens 2026 EPS Range

Beverage can volumes rose 6% in both North America and globally during the third quarter, Crown Holdings reported this week in its earnings release. The company pointed to beverage category growth plus substrate changes as the twin drivers, and CEO Tim Donahue framed the moment in unusually vivid terms on Tuesday's earnings call.

"It is a global growth spurt right now we're experiencing across beverage cans. It feels a little bit like pre-COVID although this feels a bit more organic," Donahue said.

What drove the Americas revenue bump?

Crown attributed part of the revenue increase in its Americas Beverage business to $240 million in pass-through of higher metal costs. Donahue cautioned that the pass-through did not translate cleanly into profit. "The majority of the volume contribution was offset by rising input costs," he said.

The quarter's growth was not confined to beverage cans. North American food can volumes posted high-single-digit gains on strong demand for canned vegetables and pet food. That strength helped offset softer aerosol can sales. Crown's transit packaging business, by contrast, underperformed. "Disappointed" was the word Donahue used for that unit in Q3.

How are Middle East conflicts affecting costs?

Inflationary headwinds stemming from conflict in the Middle East ran more significant than Crown expected in the third quarter. The same pressures also weighed on volumes in the region.

The company estimates a similar headwind in Q4 from heightened energy, freight and other costs as it works to offset them. Recovery is contractual, not immediate. "The contractual recovery of these and other nonmetal costs will occur in 2027 via a look-back formula," Donahue said, anticipating "a fairly large repricing" around April 1.

What does Crown expect for 2026 and beyond?

The company forecasts full-year beverage can shipments up 4% to 5% globally and up 3% to 4% in North America.

Crown adjusted its 2026 guidance slightly. It now expects adjusted diluted earnings per share between $8.35 and $8.45, narrowing the prior range of $8.30 to $8.50 at both ends. Adjusted free cash flow guidance rose to at least $950 million from the previous $900 million.

Capacity expansion is underway internationally. Projects include builds in India and Brazil plus three in Europe, with startup costs hitting at the end of this year and in Q1 2027.

Acquisitions remain a possible growth lever in cans, though only at small scale. "It's hard to see how we could do a large-scale can acquisition just given the concentration across so many of the markets," Donahue said.

He left the door open to targeted deals. "Would we or do we have opportunity to pick up a plant here or there? Yes, and we'll see what happens. It's too early to say what might become available from any of the two or three situations that are out there or recently announced," he said. "But as we sit here today, no large-scale M&A, because we just don't think it's available in cans, and certainly no large-scale M&A outside of cans."

By James Calloway