Board Approves $4 billion Share Repurchase Authorization and Quarterly Dividend

Rhea-AI Summary

Ball (NYSE: BALL) has announced two significant shareholder-focused initiatives. The Board of Directors has approved a $4 billion share repurchase authorization, replacing all previous authorizations, and declared a quarterly cash dividend of 20 cents per share. The dividend will be payable on March 17, 2025, to shareholders of record as of March 3, 2025.

CFO Howard Yu emphasized that the increased share repurchase authorization will support their ongoing multi-year capital return strategy to shareholders. The company also announced its upcoming fourth quarter 2024 earnings call scheduled for February 4, 2025, at 9 a.m. Mountain time.

Positive

• $4 billion share repurchase program authorized, indicating strong commitment to shareholder returns
• Quarterly dividend of $0.20 per share maintained, providing steady income to shareholders
• Multi-year capital return strategy confirms long-term focus on shareholder value

Negative

• Large cash allocation to buybacks may reduce funds available for business investments or growth opportunities

Insights

Financial Analyst

The announcement of a $4 billion share repurchase authorization represents a substantial 23.6% of Ball 's current market capitalization, signaling an aggressive capital return strategy. This sizeable authorization, replacing all previous ones, demonstrates management's strong conviction in the company's intrinsic value and future cash flow generation capabilities.

The timing of this announcement, coupled with the maintained quarterly dividend of $0.20 per share, reveals a balanced approach to capital allocation. The dividend provides predictable income streams for shareholders, while the flexible nature of the buyback program allows management to opportunistically repurchase shares when they believe the stock is undervalued.

From a financial perspective, this program could significantly impact key metrics: 1) The reduced share count will provide immediate EPS accretion 2) The company's leverage capacity is being efficiently utilized for shareholder returns 3) The balanced approach between dividends and buybacks provides optimal tax efficiency for different investor profiles.

Within the packaging industry context, this aggressive capital return program positions Ball among the leaders in shareholder-friendly capital allocation. The magnitude of the authorization suggests management's confidence in maintaining strong free cash flow generation despite ongoing market challenges in the aluminum packaging sector.

WESTMINSTER, Colo., Jan. 29, 2025 /PRNewswire/ -- Ball Corporation's (NYSE: BALL) board of directors (the "Board") today declared a cash dividend of 20 cents per share, payable March 17, 2025, to shareholders of record as of March 3, 2025. In addition, the Board also authorized the repurchase by the company of up to $4 billion of its common stock. The repurchase authorization replaces all previous authorizations.

"Today's increased share repurchase authorization will enable our ongoing multi-year return of capital to shareholders," said Howard Yu, executive vice president and chief financial officer.

Conference Call Details

Ball Corporation (NYSE: BALL) will hold its fourth quarter 2024 earnings call Tuesday, February 4, 2025 at 9 a.m. Mountain time (11 a.m. Eastern). The North American toll-free number for the call is +1 877-497-9071. International callers should dial +1 201-689-8727. Please use the following URL for a webcast of the live call:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=8plFS7Xq

For those unable to listen to the live call, a webcast replay and written transcript of the call will be posted within 48 hours of the call's conclusion to Ball's website at www.ball.com/investors under "news & presentations."

About Ball Corporation

Ball Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products customers. Ball Corporation employs 16,000 people worldwide and reported 2023 net sales of $12.06 billion, which excluded the divested aerospace business. For more information, visit www.ball.com, or connect with us on LinkedIn or Instagram.  

Forward-Looking Statement

This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," "believes," "will," "believe," "continue," and similar expressions typically identify forward looking statements, which are generally any statements other than statements of historical fact. For example, the forward-looking statements in this press release include statements relating to our plans, objectives and expectations for the repurchase of shares. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements, and they should be read in conjunction with, and qualified in their entirety by, these cautionary statements. Ball undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause the statements made in this press release or actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in Ball's Form 10-K, which are available on Ball's website and at www.sec.gov.

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SOURCE Ball Corporation

FAQ

What is the size of Ball 's (BALL) new share repurchase authorization?

Ball 's board approved a $4 billion share repurchase authorization, replacing all previous authorizations.

When will Ball (BALL) pay its latest quarterly dividend?

Ball will pay a quarterly dividend of 20 cents per share on March 17, 2025, to shareholders of record as of March 3, 2025.

What is the impact of BALL's $4 billion buyback on shareholders?

The buyback program demonstrates commitment to returning capital to shareholders and could potentially increase earnings per share by reducing the number of outstanding shares.

When is Ball 's (BALL) Q4 2024 earnings call?

Ball 's Q4 2024 earnings call is scheduled for Tuesday, February 4, 2025, at 9 a.m. Mountain time (11 a.m. Eastern).