Crown Holdings’ second quarter results reflected broad-based growth across its beverage and food can businesses, with management pointing to volume increases in North America and Europe as key drivers. CEO Timothy Donahue attributed the higher segment income to improved plant operations and notable gains in North American food can demand, especially in vegetables. The company also benefited from ongoing cost controls and lower capital spending, which contributed to stronger free cash flow and a step change in profitability compared to prior years. Management acknowledged that their segment results came against a backdrop of challenging comparisons, particularly in Americas Beverage due to strong prior-year performance.
Is now the time to buy CCK? Find out in our full research report (it’s free).
Crown Holdings (CCK) Q2 CY2025 Highlights:
- Revenue: $3.15 billion vs analyst estimates of $3.12 billion (3.6% year-on-year growth, 0.9% beat)
- Adjusted EPS: $2.15 vs analyst estimates of $1.87 (14.7% beat)
- Adjusted EBITDA: $552 million vs analyst estimates of $508.9 million (17.5% margin, 8.5% beat)
- Management raised its full-year Adjusted EPS guidance to $7.30 at the midpoint, a 5.8% increase
- Operating Margin: 12.4%, in line with the same quarter last year
- Constant Currency Revenue rose 2.8% year on year (-1.8% in the same quarter last year)
- Market Capitalization: $11.85 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Crown Holdings’s Q2 Earnings Call
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Anthony Pettinari (Citigroup): Asked about expectations for segment performance given challenging prior-year comparisons; CEO Timothy Donahue explained that while Americas Beverage faces tough comps, improvement is likely in European beverage and North American food, with Americas Beverage expected to hold steady.
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Chris Parkinson (Wolfe Research): Inquired about European customer demand and long-term outlook; Donahue highlighted ongoing growth in Europe tied to sustainable packaging trends and noted upcoming modernization projects to address capacity needs.
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George Staphos (Bank of America): Sought clarity on restructuring charges and sustainability of Signode improvements; Donahue explained asset write-downs in China and severance at Signode, expecting benefits to materialize later this year and into next.
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Philip Ng (Jefferies): Questioned North American and Brazilian customer behavior amid tariff and input cost pressures; Donahue reported continued promotional activity and resilient consumer demand, with contracts allowing pass-through of aluminum costs.
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Arun Viswanathan (RBC Capital Markets): Asked about the sustainability of Americas Beverage margins; Donahue described a philosophy of continuous operational improvement and noted that margins are maintained through higher productivity and contractual cost pass-throughs.
Catalysts in Upcoming Quarters
Over the next few quarters, the StockStory team will be monitoring (1) capacity expansions and modernization progress in Europe and Brazil, (2) management’s ability to offset tariff and inflationary pressures in Asia and the transit business, and (3) whether North American and European beverage can demand continues to outpace softer regions. We will also track the company’s capital allocation, including shareholder returns and any shifts in investment priorities.
Crown Holdings currently trades at $102.98, down from $104.80 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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