Q3 2025 Crown Holdings Inc Earnings Call

Kevin Clothier: Thank you for standing by the conference. We'll begin momentarily. Until such time, you will hear music. Thank you, and please continue to stand by.

Thank you for standing by for the conference. We will begin momentarily. Until such time, you will hear music. Thank you and please continue to stand by.

Operator: Good morning and welcome to Crown Holdings, Inc.'s third quarter 2025 conference call. Your lines have been placed on a listen-only mode until the question and answer session. Please be advised that this conference call is being recorded. I would now like to turn the call over to Mr. Kevin Clothier, Senior Vice President and Chief Financial Officer. Thank you, sir, and you may begin.

[Company Representative]: Thank you, Elle, and good morning. With me on today's call is Timothy Donahue, President and Chief Executive Officer. If you don't already have the earnings release, it is available on our website at crowncork.com. On this call, as in the earnings release, we will be making a number of forward-looking statements. Actual results could vary materially from such statements. Additional information concerning factors that could cause actual results to vary is contained in the press release and in our SEC filings, including our Form 10-K from 2024 and subsequent filings. Earnings for the quarter were $1.85 per share compared to a loss of $1.47 per share in the prior year quarter. Adjusted earnings per share were $2.24 compared to $1.99 in the prior year quarter.

Good morning and welcome to Crown Holdings' third quarter 2025 conference call. Your lines have been placed on a listen-only mode until the question and answer session. Please be advised that this conference call is being recorded. I would now like to turn the call over to Mr. Kevin Keyer, Vice President and Chief Financial Officer. Thank you, Sir, and good morning again.

Thank you. Well, and good morning. With me on today's call is Tim Nanu, President and Chief Executive Officer.

If you don't already have the earnings release, it is available on our website at crown court.com on this call. As in the earnings release, we will be making a number of forward-looking statements, actual results could vary materially from such statements.

Additional information concerning factors that could cause actual results to vary this contained in the press release, and in our SEC filings, including our form 10 from 2024 and subsequent filings.

Earnings for the quarter were $1.85 per share. Compared to a loss of a 147 cents per share in the prior year quarter.

[Company Representative]: Net sales in the quarter were up 4.2% compared to the prior year, reflecting a 12% increase in shipments across European beverage, the pass-through of higher raw material costs, and a favorable foreign currency translation, partially offset by lower volumes across Latin America. Segment income was $490 million in the quarter compared to $472 million in the prior year, reflecting increased volumes in Europe and strong results in our tinplate businesses, as well as continued operational improvements across the global manufacturing footprint. For the nine months ended September 30, free cash flow improved to $887 million from $668 million in the prior year, reflecting higher income and lower capital spending. The company repurchased $105 million of common stock in the quarter and $314 million year to date. When combined with dividends, we've returned more than $400 million to shareholders this year.

Adjusted earnings per share were $2.24 compared to $1.99 cents in the prior year quarter.

net sales in the quarter, were up 4.2% compared to the prior year, reflecting at 12%, increase in shipments across European beverage

The pass through of higher enrollment material costs and the favorable foreign currency translation. Partially offset by lower volumes across Latin America.

Segment income was $490 million in the quarter compared to $472 million in the prior year, reflecting increased volumes in Europe and strong results in our ten clay businesses, as well as continued operational improvements across the global manufacturing footprint.

For the 9 months ended September 30th.

Free cash flow improved to 887 million from 668 million in the prior year, reflecting higher income and lower Capital spending.

The company repurchased 105 million shares of common stock in the quarter and 314 million year-to-date.

[Company Representative]: The company achieved its long-term net leverage target of 2.5 times in September and remains committed to a healthy balance sheet while returning excess cash to shareholders in the future. The company continued to perform well in the quarter with year-on-year improvements in segment income, adjusted EBITDA, and free cash flow. We have seen limited direct impact from tariffs and remain attentive to the indirect effects that tariffs have had on the global consumer and industrial demand. Considering our strong performance to date, we're raising our guidance for the full year adjusted EPS to $7.70 to $7.80 and project the fourth quarter adjusted EPS to be in the range of $1.65 to $1.75. Our adjusted earnings guidance for the full year includes modest changes to the following assumptions. We expect net interest expense of approximately $350 million. Exchange rates assume the U.S.

When combined with dividends, we've returned more than 400 million to shareholders this year.

The company achieved. This long-term net, leverage Target of 2 and a half times in September and remains committed to a healthy balance sheet. While returning excess cash to shareholders in the future.

The company continued to perform well in the quarter with year-on-year improvements in segment income, adjusted, Evita and free cash flow.

We have seen limited, direct impact from tariffs and remain attentive to the indirect effects that tariffs have had on the global consumer and Industrial demand.

Considering our strong performance to date. We're raising

our guidance for the full year, adjusted EPS to $7.70 to $7.80 and project. The fourth quarter, adjusted EPS to be in the range of $1.65 to $1.75

350 million.

[Company Representative]: dollar at an average of $1.13 to the euro. Non-controlling interest expense to be approximately $150 million, and dividends and non-controlling interest are expected to be approximately $140 million. Remaining unchanged, we expect a full-year tax rate of 25%, depreciation of approximately $310 million. We now estimate 2025 full-year adjusted free cash flow to be approximately $1 billion after $400 million of capital spending and net leverage to remain close to our long-term net leverage target of 2.5 times. With that, I'll turn the call over to Tim.

Exchange rates assume the US dollar at an average of $1.13 to the euro.

Non-controlling interest expense is expected to be approximately $150 million, and dividends and non-controlling interests are expected to be approximately $140 million.

Remaining unchanged. We expect full year tax rate of 25% and depreciation of approximately $310 million.

We now estimate 2025 full-year adjusted free cash flow to be approximately $1 billion after $400 million of capital spending, and net leverage to remain close to our long-term net leverage target of 2.5 times. With that, I'll turn the call over to Tim.

Timothy Donahue: Thank you, Kevin, and good morning to everyone. I'll be brief, and then we'll open the call to questions. As Kevin just summarized and as reflected in last night's earnings release, third quarter results were better than expected. Consolidated earnings per share advanced 13% as the strength of our balanced portfolio drove higher segment income and cash flow, in turn lowering interest costs. Strong demand in European beverage and an improving cost structure across the U.S. tin plate businesses combined to offset weakness across Latin America. Two items to remind everyone of. First, delivered aluminum reached $2.10 a pound last Friday. That is up $0.74 a pound or 54% in the last 10 months, primarily from the increased United States delivery premium. We contractually passed through aluminum, so the increased denominator effect will reduce percentage margins, not absolute margins.

Thank you, Kevin, and good morning to everyone. I'll be brief, and then we'll open the call to questions.

As Kevin just summarized and is reflected in last night's. Earnings release third quarter results. Were better than expect expected.

Consolidated earnings per share Advanced 13%.

As of the strength of our balance, portfolio drove, higher segment, income and cash flow in turn, lowering interest costs.

Strong demand in European beverage and an improving cost structure across the US tin plate. Businesses combined to offset weakness across Latin America.

2 items to remind everyone of first delivered aluminum reached $2.10. A pound last Friday that is up 74 cents a pound or 54% in the last 10 months.

Primarily from The increased United States delivery premium.

Timothy Donahue: This is primarily a North American issue, and it had about a 1.25% impact on America's beverage margins in the third quarter. Second, as most of you are aware, we operate our Brazilian operations through a joint venture. As Brazil profits go up or down, the minority interest that you see on the face of the income statement will also go up or down. The lower minority interest that you see in the third quarter are the result of the lower Brazilian income, which is reported in the America's beverage segment income. Following numerous quarters of above-market growth, including 10% in last year's third quarter, America's beverage volumes were down 5% in the quarter, the result of a 15% volume decline across Brazil and Mexico. The effects of an uncertain and tariff-weary Mexican consumer, combined with the coldest Brazilian winter in 20 years, subdued demand.

We contractually passed through aluminum, so the increased denominator of effect will reduce percentage margins, not absolute margins.

And this is, uh, primarily a North American issue, and it had about a 1.25% impact on America's beverage margins in the third quarter.

Second, as most of you are aware, we operate. Our Brazilian operations through a joint venture.

As Brazil's profits go up or down, the minority interest that you see on the face of the income statement will also go up or down.

The lower minority interests that you see in the third quarter are the result of the lower Brazilian income, which is reported in the Americas beverage segment income.

Following numerous quarters of above market growth including 10% in last year's third quarter. America's beverage volumes were down 5% in the quarter. The result of a 15% volume decline across Brazil and Mexico

Timothy Donahue: We do expect the fourth quarter in Brazil to return the growth, and 2026 in Brazil may be bolstered by government initiatives to lower interest rates and provide subsidies to the lower-income populations. As discussed earlier, the net earnings impact to the company is somewhat muted by the reduction in the Brazilian minority interest. North American volumes were mixed in the quarter, down 3% after getting off to a slow start in July and August. However, activity rebounded firmly in September, which was up 3%, and shipments to date in October have also been strong. For reference, North American volumes were up 5%, and Latin American volumes were up more than 18% in the prior year third quarter. European beverage posted a record quarter with income 27% above the prior year on the back of 12% volume growth.

The effects of an uncertain and tariff weary. Mexican consumer combined with the coldest. Brazilian winter in 20 years, subdued, demand.

We do expect fourth quarter, in Brazil, to return the growth.

And 2026 in Brazil may be bolstered by government initiatives to lower interest rates and provide subsidies to lower-income populations.

And as discussed earlier, the net earnings impact to the company is somewhat muted by the reduction in the Brazilian minority interest.

North American volumes were mixed in the quarter, down 3%, after getting off to a slow start in July and August. However, activity rebounded firmly in September, which was up 3%, and shipments to date in October have also been strong for reference. North American volumes were up 5% in Latin America, and volumes were up more than 18% in the prior year’s third quarter.

Timothy Donahue: As has been the case throughout the year, growth was recorded in each region of the segment as the can continues to gain share across Europe, while in the Gulf states, the emergence of local brands is driving outsized growth. Margins across Asia remained above 17% in the quarter despite lower Southeast Asian volumes of 3% as Asian industries and consumers alike feel the pinch of higher tariffs to their economies. Transit packaging income remained level to the prior year as increased shipments and continuing cost efforts offset the impact of lower equipment activity. The industrial markets remain challenging, but the transit team is executing well to control costs and generate cash. North American food can benefited from firm harvest demand and efficiency improvements to recently installed capacity.

European beverage posted a record quarter with income 27% above the prior year, on the back of 12%, volume growth.

As has been the case throughout the year growth was recorded in each region of the segment. As the can continues to gain, share across Europe while in the Gulf States. The emergence of local Brands is driving outside growth.

Margins across Asia remained above 17% in the quarter, despite lower Southeast Asian volumes of 3%.

as Asian Industries and consumers alike, feel the pinch of higher T tariffs to their economies,

Transit, packaging income, remained level to the prior year as increased shrapit shipments and continuing cost efforts offset the impact.

Of lower equipment activity.

The industrial markets remain challenging, but the transit team is executing well to control costs and generate cash.

Timothy Donahue: Combined with a lower cost structure in aerosol cans and increased activity in can-making equipment, results in other significantly exceeded the prior year third quarter. In summary, performance across the portfolio resulted in another strong quarter. Segment income up 4% and earnings per share up 13% against a very strong prior year third quarter. European beverage reflects the ongoing benefits from overall market growth and substitution. North American food continues to gain from new capacity brought online over the last two years. The balance sheet is strong, and when combined with robust cash flow, the company remains well-positioned to responsibly return cash to shareholders. Lastly, before we open the call to questions, we've had an exceptional year in 2025 as the entire CROWN family continues the mission to serve our brand partners, and we sincerely thank them. With that, Elle, we are now ready to take questions.

North American food can benefited from firm Harvest demand and an official and efficiency improvements to recently installed capacity.

Combined with a lower cost structure and aerosol cans and increased activity and can making equipment results in other significantly. Exceeded the prior year third quarter.

When summarizing performance across the portfolio, it resulted in another strong quarter.

4% and earnings per share up 13% against a very strong prior year, third quarter.

European beverage reflects the ongoing benefits from overall market growth and substitution.

North American food continues to gain from new capacity brought online over the last 2 years.

The balance sheet is strong, and when combined with robust cash flow, the company remains well positioned to responsibly return cash to shareholders.

And lastly, before we open the call to questions, we've had an exceptional year in 2025.

As the entire Crown, family continues the mission to serve our brand partners and we sincerely, thank them.

So, with that L, uh, we are now ready to take questions.

Operator: Thank you, sir. We will now begin the question and answer session. If you would like to ask a question, please press star and then the number one. Please unmute your phone and record your name and company name clearly when prompted. Please are required to introduce your question. To cancel your request, please press star and then the number two. Our first question comes from the line of George Staphos of Bank of America. Your line is now open.

[Analyst]: Thanks so much. Hi, everyone. Good morning. Thanks for the details.

Thank you, cheers. We will now begin the question and answer session. If you would like to ask a question, please press star. And then the number 1 please. Unmute your phone and record your name and company name. Clearly when prompted these are required to introduce your question and to cancel your request. Please press star. And then the number 2. Our first question comes from the line of George staff is a Bank of America. Your line is now open

Timothy Donahue: How's it working?

[Company Representative]: Good morning, George.

[Analyst]: How are you? Congratulations on the progress. I guess the first question I had, Europe, you grew 12% as you stated. Share gains, I think, from a pack mix standpoint and underlying market growth. Can you give us a bit more color? In particular, should we worry at all about pre-buying lapping tough comps at some point? How long do you see Europe growing at, maybe not 12%, but at what's been the historical rate given what's been very, very strong growth through the first nine months? I had one or two follow-ons.

Thanks so much. Hi everyone. Good morning. Thanks for the details. How are you? Congratulations on the progress. I guess the the, um, first question I had

Europe, you grew 12%, as you stated. Um,

Share gains. I think from a pack mix standpoint and underlying market growth. Can you give us a bit more color and in particular

Should we worry at all about?

Timothy Donahue: Okay. Good question, George. It'll allow me to say something that I do want to get out on the call as well. The third quarter of last year, I think Europe was up 6%, up 12% this year. George, you've been around a long time like I have. Maybe I have more gray hair, but you know that 6% and 12% is not the history of the can business, right? The can business is a low-growth business with pockets of outsized growth requiring discipline. Cash flow is quite high, and it gives you the opportunity to generate a lot of value. Anybody expecting the company to grow 12% quarter after quarter or expecting us to grow earnings per share 20% year after year, you know, that's not what the can industry is, right? It's certainly much more stable than that.

Pre-b, buying lapping tough comps at some point. You know, how long do you see Europe growing at, you know, maybe not 12%. But, you know, at what's been the historical rate given what's been very, very strong growth through the first 9 months. And then had a 1 or 2 following ones,

Okay, uh, so good question, George. It'll, it'll allow me to say something that I do want to get out on the call as well. So, the third quarter of last year, I think Europe was up 6% up, 12%, this year and George, you've been around a long time. Like I have maybe I have more gray hair, but, um, you, you know, that 6% and 12% is not the history of the canned business, right? The canned business is,

Is a low growth business with pockets of outside growth, requiring discipline, um, cash flow is quite high and it gives you the opportunity to generate a lot of value. So, anybody expecting the company to grow 12%, quarter after quarter, or, or expecting us to grow earnings per share, 20% year after year?

Timothy Donahue: Having said that, I don't think we would ascribe any volume growth that we had this year in Europe to pre-buy. I think, as we've said before, and I know repeatedly, Tom and Kevin have told you before, the long-term growth rate in Europe has been on the order of 4 to 4.5, 4 to 5%. We've got a couple of open years in there, perhaps when the Germans outlawed cans and some other things. For the most part, over the last 20 to 25 years, it's been pretty consistent, the amount of growth. I just point out that while the segment was up 12% in the quarter, Continental Europe was up more than the Middle East. This was a European-driven growth phenomenon, and I think it's largely to do with growth itself, underlying growth, and substitution, as we've discussed before.

You know, that's not what the cane industry is, right? Um, it's certainly much more stable than that and uh

But but having said that, I I don't think we would ascribe any volume growth that we had this year in Europe to prebby.

I think, um,

As we've said before. And I know, repeatedly, Tom and Kevin have told you before the long-term growth rate in Europe, has been on the order of 4, 4 to 4, and a half 4 to 5%.

um, got a couple open years in there, perhaps when the Germans outlawed cans and some other things but uh, for the most part over the last 20 to 25 years, it's

Been pretty consistent the amount of growth. And I just point out that

Um, while the segment was up, 12%.

in the

quarter.

Uh, Continental Europe was up more than the Middle East. So uh, this was a European uh, driven growth phenomenon and I think it's largely to do with growth itself.

Underlying growth.

[Analyst]: Okay. Appreciate that, Tim. Second question, as we think about the year and certainly what looks to be an up fourth quarter versus where we were and where consensus was, how are you thinking about the Americas EBIT overall? At one point in time, you mentioned $1 billion of EBIT, I think, if I'm correct, as being aspirational. Can you talk about what the outlook is for the year? If you can talk a little bit about, in terms of the third quarter or however you want to frame it, what the profit impact negatively was from what you saw in Mexico and Brazil and how that's woven into the $1 billion. Lastly, in other, was there any pickup from spread or is it purely cost reduction and your volume increase that drove the performance? Thank you.

And, um, substitution, as we've discussed before.

Okay.

appreciate that Tim um second question as we think about the year and certainly what looks to be

Uh, an up fourth quarter versus where we were and where consensus was. How are you thinking about the America's EBIT? Overall, at one point in time, you mentioned a billion dollars of EBIT. I think, if I'm correct, that is being aspirational.

Can you talk about what the Outlook is for the year? If you can talk a little bit about uh in terms of the third quarter or however you want to frame it? What the prophet impact negatively was from what you saw in, Mexico and Brazil and how that's woven into the billion dollars

Timothy Donahue: All right. You are going to have to stay on the line, George, because you asked a bunch of questions.

Um and then lastly in in in other and I'll turn it over. Was there any pickup from spread or is it purely cost reduction and your volume increase that drove the performance? Thank you.

[Analyst]: I'm going to.

Timothy Donahue: The first one was long. Repeat the, just get me started on the first one again.

All right, so you're going to have to stay on the line, George, because you asked a bunch of questions. Um, only two.

[Analyst]: Basically, the $1 billion of EBIT being media.

Timothy Donahue: Oh, $1 billion.

[Analyst]: Is that still the case? Brazil, Mexico, kind of what impact did they have?

Timothy Donahue: Yep, yep, yep. A billion dollars, I was prepared to, again, tell you this morning it was aspirational. Kevin reminded me this morning that it looks like we will get there this year. Okay. Brazil, Mexico. Mexico, we own 100% of our operations, George. Brazil is a joint venture. If you look at the difference in minority interest, which is, what, $12 million to $15 million? If you want to, you want to say the impact of Brazil itself was more than $20 million in the quarter. The impact from Mexico, Mexican cans, glass was flattish to slightly up in the quarter. Mexican cans was also an impact of about $5 million or $6 million in the quarter. More than the total decline in Americas beverage came from Mexico and Brazil.

Oh, a million dollars. So, it's still the case that, you know, Brazil and Mexico kind of had an impact. And then, yep, yep, yep. So, uh, a billion dollars.

I was prepared to tell you this morning that it was aspirational. Kevin reminded me this morning that it looks like we will get there this year.

Okay. Um,

uh, Brazil Mexico.

Uh, Mexico—we own 100% of our operations. George Brazil, uh, is a joint venture. If you look at the difference in minority interest, which is...

What 12 to 15 million dollars. If you want to, you want to say the impact of Brazil itself was more than 20 more than 20 million dollars.

in the, uh,

In the quarter and the impact from Mexico. Mexican cans glass was flattish to slightly up in the quarter Mexican cans. Uh was also an impact of about 5 or 6 million in the quarter. So

[Analyst]: Got it. Spreads in metal and steel, I'll turn it over.

More than the total decline in America's beverages came from Mexico and Brazil.

Got it and spreads and metal and alter and steel. I'll turn it over.

Timothy Donahue: I don't believe at this time we're benefiting in the third quarter from any spreads in steel. Perhaps there was some spread benefit earlier in the year, but in the third quarter, I don't believe we had any.

Um,

so, I don't

Believe that, this time, we're benefiting in the third quarter.

[Analyst]: Thank you very much, guys. I'll turn it over.

For many spreads and steel. Perhaps there was some spread benefit earlier in the year but in the third quarter I don't believe we had any

Timothy Donahue: Thanks, George.

Thank you very much, guys. I'll turn it over.

Thanks George.

Operator: Thank you. Our next question will be from Ghansham Panjabi of Baird. Your line is now open.

[Analyst]: Thank you, operator. Good morning, everybody.

Thank you. Our next question will be from Gunshot Punjabi. Oh Bears, your line is now open.

Timothy Donahue: Morning, Genshin.

[Company Representative]: Morning.

[Analyst]: Morning. I guess, you know, if we switch to North America, you know, I think you said, Tim, volumes down 3%. You know, sort of a mixed start to the quarter, ended the quarter much better. What do you think the industry did during the third quarter? Is there anything else just going on in terms of movement as it relates to promotional spending that's a little bit more episodic? You're seeing that as your customers adjust things? What do you think is going on in the market?

Good morning everybody. Um,

Morning morning. Um, I guess, you know, if we switch to North America. Uh, I think you said Tim volumes down, 3%, um, you know, sort of a mix start at the quarter and and the quarter much better. Um, what what do you think the industry did during the third quarter? And and you know is is there, is there anything else just going on in terms of uh you know movement as it relates to promotional spending? That's a little bit more episodic and and so you're seeing that as as your customers are adjust things or what do you think is going on in the market?

Timothy Donahue: Tom does his best to estimate the market. Not everybody reports data, so we have to make some estimates. As we said, we were down 3% in the quarter, and Tom's best estimate is perhaps the market was up 2% in the quarter. We will have underperformed the market. Our underperformance is specific to one customer that we pruned at the start of the year. I'll leave it at that. It was a complicated customer with short runs, a lot of label changes. Frankly, the pricing didn't warrant the complexity put on the factories, the inefficiencies put on the factory. We didn't participate, no longer participate in that account. What do I think is going on with promotions? I'll tell you, in the summer, it felt like they were much more aggressive promoting. I think through the third quarter, even through Labor Day, it didn't feel like promotions.

So, Tom Tom does his best to estimate the market. Not everybody reports data, so we have to make some estimates.

Um um as we said, we were down 3 in the quarter and Tom's, best estimate is perhaps the market was up 2% in the quarter.

So uh, we will have underperformed, the market. Uh, our underperformance is specific to 1 customer that we pruned, uh, at the start of the year.

So uh I'll I'll leave it at that. Um, it was a complicated.

Uh, customer with short runs, a lot of label changes. Um, frankly, the pricing didn't warrant the complexity put on the factories, uh, the inefficiencies put on the factory. So we we didn't participate no longer participate in that account. Um, what do I think is going on with promotions? Um,

You know, I, boy, I tell you, in the summer, Don, it felt like they were much more aggressive promoting. I, I think um,

Timothy Donahue: We've got folks that are in supermarkets up in the Philadelphia area, and we're down here in the Florida area. We're not covering the whole country, but it didn't feel like, when you go to the supermarket and you look, because it's one thing for your customers to tell you what they're doing nationally. It's another thing to actually walk into stores and see the promotions. It didn't feel like they were heavily promoting. I think the strength in the market, if the market is indeed up 2%, as Tom says, is more about the resilience of the beverage can, is more about the experience that the consumer has with affordable pleasures in a challenging environment. It just shows the strength of the can and shows the strength of our industry.

Through the third quarter, even through Labor Day, it didn't feel like promotions. Now you know, we we've got folks that are in supermarkets up in the Philadelphia area and we're we're down here in the Florida area. So we, we're not covering the whole country, but it didn't feel like, you know, when you go to the supermarket and you look

Because it's 1 thing to for your customers. To tell you what they're doing nationally, it's another thing to actually walk into stores and seeing the promotions it it didn't feel like it was very they were heavily promoting

I, I think I think the strength in the market, if the market is indeed up 2%, as Tom says, um, is more about the resilience of the beverage can is more about the the experience that the consumer has with, um,

Timothy Donahue: I'm not trying to be promotive when I say that, Ghansham, I just don't see the promotions from our customers driving the growth. I see the consumer, just the consumer demand for the product right now driving the growth.

With affordable Pleasures in a, in a challenging environment. I think it just it. Uh, it shows the strength of the can and the shows the strength of our industry and I'm not trying to be

[Analyst]: Okay, fair enough. Just related to that, you know, just based on what you said about pruning and some of the adjustments in the market, etc., what's your base case as it relates to volume specific to North American beverage for 2026? I'm just trying to get a sense as it relates to if there's any spillover from the pruning and so on and so forth. For my second question on Europe, just given the strength, which has been phenomenal for multiple years, how do you feel about capacity in the region and your specific footprint to align with that growth expectations having changed pretty nicely over the years?

Promotive, when I say that gancho, I just don't I don't see the promotions from our customers driving. The growth. I see the consumer. Just the consumer demand for the product right now. Driving the growth.

Timothy Donahue: Yeah, so we like our footprint. We're very strong in the perimeter. There are some pockets in the central part of the European continent where we're smaller or not present. The only thing I would tell you is the margin opportunity in those regions has not justified us putting capacity in. I think that, and we've talked about this before, because we're on the perimeter and we're closer, we're very strong across the Mediterranean. We do benefit when tourism is up, and tourism was up this summer. It can go either way, Ghansham, but this year we were the beneficiaries of a strong tourism season.

Okay, fair enough. And then just related to that, um, you know, so just based on what you said about pruning and, you know, some of the adjustments in the market Etc. What what's your base case? As a relates to volume specific to North American Beverage for 2026 and I'm just trying to get a sense as it relates to if there's any spillover from the pruning and so on and so forth. And then for my second question on Europe? Uh, just given the strength, which has been phenomenal for multiple years. Um, you know, how how do you feel about capacity in the region and, uh, and your specific footprint to uh, to align with that growth expectations having changed, uh, pretty nicely over the years.

Yeah, so um we like our footprint. We're

Perimeter. Um,

Uh, there's some pockets in the central part of the European continent.

Where we're smaller, we're not present. Um,

you know, the only thing I would tell you is the the margin opportunity in those regions have not justified us. Putting capacity in um,

I think that, and we've talked about this before.

Timothy Donahue: I do think, again, as I said to George, I don't think that, and you've been around a long time as well, Ghansham, I don't think anybody should ever anticipate that 12% is a number that you should expect companies in the can business to print every quarter. We may get a quarter or two like that every so often, but the growth rate in Europe is, as you said, it's been very nice. Four to five % for 20 plus years, we'll take that for the next 20 years. Capacity, there are pockets of open capacity, specific to one or two regions, but by and large, the market's in pretty good shape. From time to time, the hope is we're all responsible and we pick our moments as to when we want to add more capacity.

Uh, because we're on the perimeter and and we're closer we're very strong across the Mediterranean. Uh, we do benefit when tourism is up and tourism was up this summer so it it can go either way gone, but but this year, we were the beneficiaries of strong tourism season. Um, I do think again, as I said, the George, I don't think that

And you've been around a long time, as well gone. I don't think anybody should ever anticipate. That 12% is a number that you should expect companies in the canned business to print every quarter. We we may get a quarter or 2 like that every so often. But but, you know, the

The growth rate in Europe is, as you said, it's been very nice 4. 4 to 5%.

For 20 plus years. We'll take that for the next 20 years. Uh capacity. Uh there are pockets.

[Analyst]: Beverage North America 2026 volumes?

All open capacity, uh, specific to 1 or 2 regions, but by and large the Market's in pretty good shape. And, and from time to time, you know, the hope is we're all responsible and, and we pick our moments as to when we want to add more capacity,

And Beverage North America 2026 volumes.

Timothy Donahue: I think, as we've said before, we expect to be up next year.

[Analyst]: Okay, fair enough. Thank you.

Uh, I think as we've said before, we expect to be up next year.

Timothy Donahue: Thank you.

Fair enough. Thank you.

Operator: Thank you. Our next question will be from Stefan Diaz of Morgan Stanley. Line is open.

Thank you.

[Analyst]: Hi, good morning, Tim. Good morning, Kevin.

Our next question will be from Stefan. Yes. Of Morgan Stanley, sir, your line is open.

[Company Representative]: Hi, Genshim.

hi, good morning Sam, good morning, Kevin

[Analyst]: Hi, yeah. Maybe just to begin, can you just give more details on the drivers for the better than expected performance in other? I know in the prepared remarks you said that food cans are strong. Maybe you saw some green shoots in the equipment business. Maybe on a go-forward basis, how should we think about the earnings power in this business?

Timothy Donahue: Last year was not a very good year, right? The comp was low. I never want to say anything is easy, but the comp was low. We knew coming into this year we were going to do much better across food and aerosol, food with some volume gains early in the year. We brought on three new lines over the last couple of years: two two-piece lines, and then we have a three-piece line, two three-piece lines that are co-located at a customer facility. All are operating much better now than they were earlier. Volume growth, let's say pet food in Q1, vegetables in Q2, pretty constant volume in Q3, but really a lot of efficiency gain here in Q3 in food. We did close an aerosol can plant last year, so the aerosol cost structure is much lower, so we're benefiting from that.

Um, hi. Yeah, maybe just to begin. Can you just get more details on the drivers for the, you know, better than expected performance and other um I know in the prepared remarks, you said that food cans are strong. Uh maybe you saw some, you know, Green shoots in the equipment business, um but maybe like on a go forward basis. You know, how should we think about the earnings power, you know, in this business?

Well, I, you know, last year was not a very good year, right? So let's start with the comp; it was low. I never want to say anything is easy, but the comp was low.

We knew coming into this year, we were going to do much better.

Across food and aerosol food with some volume gains, early in the year. And we we we brought on 3 new lines.

Uh, over the last couple of years, 2, 2 piece lines and and then we have a, a 3 piece line, 2, 3 piece lines that are co-located.

At a customer facility and all are operating, uh, much better now than they were earlier. So, uh, volume growth.

Let's say pet food in Q1, vegetables in Q2.

Timothy Donahue: I almost used the term green shoots in my prepared remarks, but I thought better of it, although I will tell you that equipment sales, equipment and tool sales in can-making are up. In Q3, profitability is up. There is growth globally in beverage can and beverage can equipment. It's in a lot of regions of the world that many Americans are not familiar with. We do operate a global equipment business out of the headquarters in the UK. Green shoots, I don't know, it might be too early to say that, but I think we're happy with where the business looks like it's going right now.

Pretty constant volume increase Q3 but really a lot of efficiency uh, gain here in Q3 and food. We did close an aerosol can plant last year. So, the aerosol structure cost structure is much lower. So, we're benefiting from that.

and uh,

I almost used the term green shoots in my prepared remarks but I thought better of it, uh, although I will tell you that equipment, sales equipment and tool sales in can making are up in Q3 profitability is up.

Um, there is growth globally in beverage cans and beverage can equipment. It's in a lot of regions of the world that many Americans are not familiar with, but we do operate a global equipment business out of the headquarters in the UK.

And, um, green shoots. I don't know, it might be too early to say that, but I think we're happy with where the business looks like it's going right now.

[Analyst]: Okay, great. That's helpful. Maybe in Signode, correct me if I'm wrong, but I think you expected like a $25 million headwind due to tariffs in that business. You were able to grow income there modestly. Is this headwind still the right way to think about 2025? Maybe just sticking with Signode, it seems like revenue declines have been getting better over the previous two quarters. Do you think the business is in a position to maybe start growing top line as we look into 4Q and 2026? Thank you.

Timothy Donahue: Yeah, just on the revenue, remember one thing, we also pass through material costs in Signode, and by and large, that's steel, not tin plate steel, but steel and plastics. As the price of those commodities move up or down, our revenues move up or down. In total, overall volumes would have been lower. Equipment and tools would have been lower. They're higher value items that get sold, and they're higher margin items that get sold, offset by plastic strap, which was up nicely in the quarter. I'll wait right now before I say we're at a bottom. I think there are some things that still need to be sorted out with tariffs and everything else before we get too confident on where we think cross-border shipments of equipment are likely to be as we go forward. Tariffs, Kevin and I looked at this the other day.

Okay, great, that's that's helpful and then maybe in signode. Um, correct me if I'm wrong but uh, I think you expected like a 25 million uh headwind due to tariffs in that business. Um, I mean you were able to grow income there modestly. Um, is is, is this headwind still the right way to think about 2025 and, you know, maybe just sticking with sine node. It it seems like Revenue. Declines have been, you know, getting better over the previous 2 quarters. Uh, do you think the business is in a position to, you know, maybe start growing Top Line as we look into you know, 4 and the 2026. Thank you.

Yeah, so just on the revenue. Remember 1 thing we also passed through.

Our revenues move up or down, but in total, overall volumes would have been lower. Equipment and tools would have been lower; their higher-value items that get sold and their higher-margin items that get sold offset by plastic strap, which was up nicely in the quarter.

You know, I'll wait right now before I say we're at a bottom. I think they're...

There are some things that still need to be, uh, sorted out with tariffs and everything else before we get too confident about where we think cross-border shipments of equipment are likely to be as we go forward.

Timothy Donahue: I would say we said that originally we expected $10 million of direct tariffs. I think we still expect that through three quarters. We're in the $7 million, $7.5 million range. We expect the $10 million. Indirect, we said $15 million, which was a function of lower order patterns from customers given uncertainty and/or increased cost for some of the equipment that we make in Switzerland or Finland that would have to come into the U.S. We are seeing lower equipment and tool sales that are made abroad that would otherwise come into the U.S. I think that's still a good number. As I said, the transit team is doing a really nice job of managing their cost structure, looking for ways to reduce cost, running more efficiently, running more responsibly.

Uh, tariffs, Uh, Kevin. And I looked at this the other day, I would say, we said that, originally, we expected 10 million of direct tariffs. I think we still expect that through 3 quarters, we're in the 7 7 and a half million dollar range. So we expect the 10 indirect, we said 15 which was a function of lower order patterns from customers, given uncertainty, Andor increased cost for some of the equipment that we make in Switzerland or Finland that would have to come into the US.

And uh, we are seeing lower equipment and tool sales that are made abroad that would otherwise come into the us. So, I think that's still a good number.

and as I said the, uh,

The transit team is doing a really nice job of managing their cost structure, looking for ways to reduce costs.

Timothy Donahue: The one thing we have delivered to the Signode franchise since we've owned it now for seven years is we've brought them back to understanding they are a manufacturing company. As we try to do in our can business, we've put a number of the former can guys into Signode who are helping them understand the positive benefits of efficiency and lower spoilage and lower labor hours to make as many or more units. I think it's paying off. Cost structure is a lot lower. The opportunity for us to benefit greatly when the industrial markets return is there. I just think it's a little too early to call for that right now.

Uh, running more efficiently, running more responsibly.

Um, you know, the 1 thing, we have delivered to the sine node franchise since we've owned it. Now, for 7 years is we've brought them back to understanding, they are a manufacturing company. And um, as we try to do on our canned business, uh, We've uh, we've put a number of the uh, former can guys in the signal who are helping them understand, uh, the positive benefits of of efficiency and lower spoilage and uh lower labor hours to make as many or more units and and I think it's paying off. So cost structure a lot lower.

The opportunity for us to benefit greatly when the industrial markets return is there.

Uh, I just, you know, I don't... it's a little too early to call for that right now.

[Analyst]: Thank you. I'll turn it over.

Operator: Thanks.

Timothy Donahue: Thank you, Stefan.

Thank you. I'll turn it over.

Operator: Thank you. Our next question will be from Christopher Parkinson of Wolfe Research. Your line is open.

Thank you so much.

[Analyst]: Great. Thank you so much. You know, Tim, when we think about your global operations, we've seen consistent improvements in, you know, operating profitability. Could you just do a quick fly-by of how we should be thinking about that, in terms of 2026 and where you think you still could be seeing some opportunities? Obviously, given that just the asset changes in Asia, obviously, would be one of my top of mind. Also in the U.S., it just seems like some, you know, some of your newer facilities within the last five years continue to operate a little bit more efficiently. If you could give us some color there, it would be greatly appreciated. Thank you.

Thank you. Our next question will be from Chris Parkinson. I will freeze your for your line is open.

Timothy Donahue: Yeah, listen, I think that, I think we're going to continue to improve operations. I mean, it's not a, you know, the manufacturing team has goals every year, and the goal is to get better every year. We've described to you before that we typically characterize our plants in one of three buckets. If you're in the bottom bucket, you're expected to be in the top bucket the next year. It doesn't always happen, but that's the goal, continuous improvement. From that standpoint, we always expect the manufacturing teams to do a better job. That's their job. Having said that, one thing that will happen as the price of quoted aluminum on the London Metal Exchange increases, and more specifically as the delivery premium stays higher for longer, we will have percentage margin impact, especially in North America.

Great, thank you so much. Um, you know, Tim when we think about your Global operations we've seen consistent improvements in, you know, you know, operating profitability could you just do a quick flyby of how we should be thinking about that, um, in terms of 2026 and where you think, you still could be seeing some opportunities, you know, obviously given that just the asset changes. And, um, Asia, obviously, be 1 of my 1 top of mind. And then also in the US, it just seems like some, you know, some of your newer facilities within the last 5 years, continue to operate, uh, a little bit more efficiently. So if you could give us some color there, um, it would be greatly appreciated. Thank you.

yeah, I listen, I think that um,

I think we're going to continue to improve operations. I mean, it's not a

You know.

The manufacturing team has goals every year and and the goal is to get better every year and we've described to you before that.

uh, we

Typically, characterize our plants.

In 1 of 3 buckets. And if you're in the bottom bucket, you're expected to be at the top bucket, the prior the next year, so, um, doesn't always happen but but that's the goal continuous Improvement. So from that standpoint, we always expect the manufacturing teams to do a better job. That's their job.

Timothy Donahue: That will flow through the Americas beverage segment as we pass through one for one, the denominator gets bigger with the same dollar. You understand the denominator effect. We'll see how Mexico and Brazil do next year in the face of a tariff environment that has consumers and customers alike a little uncertain to this point. I should mention that across Asia, the tariff environment, perhaps even more impactful than it is in Brazil. All in all, margins across our business are pretty healthy. I think in every reportable segment we have, we're well into the double digits. Even transit is a business right now where demand is low, but they're making above 13%. We describe that as a 12% to 15% business.

Having said that, uh, 1 thing that will happen as the price of quoted. Aluminum on the London, Metal Exchange increases and and more specifically, as the delivery premium stays higher for longer, uh, we will have percentage margin impact, especially in North America. So that will flow through the America's beverage segment. As we as we pass through 1 for 1, the denominator gets bigger with the same dollar. So you understand the denominator effect, um,

and then, you know, we'll see how

We'll see how Mexico and Brazil do next year in the face of, uh,

Of a, of a tariff environment that has consumers and and uh customers alike. Um,

A little uncertain to this point. And I should mention that across Asia, the tariff environment, perhaps even more.

impactful than it is in Brazil. So, um,

you know, all in all

Margins across our business are pretty healthy. I think in every reportable segment, we are well into the double digits and, um,

You know, we even transit is a business.

Timothy Donahue: Historically, if you look across packaging land, 12% to 15% in a low-growth, low-capital-intensive business is really quite nice because you generate a lot of cash and give the management team a lot of flexibility in how to return the money to shareholders. We're quite happy with the portfolio at this point.

Historically, if you look across packaging land,

12 to 15%.

[Analyst]: Got it. Just as a quick follow-up, when we're thinking about your free cash flow conversion, given your updated number for 2025, how should we think about it then 2026 in terms of priorities, now that you've hit your two and a half times leverage target in terms of buybacks and anything else you're considering? Thank you.

In a low-growth, low-capital-intensive business, it is really quite nice because you generally generate a lot of cash and give the management team a lot of flexibility in how to return money to shareholders. So we're quite happy with the portfolio at this point.

Timothy Donahue: Yeah, so Kevin does want to tell you that we've probably got a little timing on CapEx flipping in the next year, but we're still going to have exceptional cash flow next year. As we said in the press release, balance sheet's in really good shape. We'll responsibly return cash to shareholders. You know, we might move debt down, up or down a little bit, but we're going to be in and around two and a half times, and there's a lot of cash left over to return.

Just as a quick followup. Just, you know, when we're thinking about your free cash flow conversion, um, given your updated number for 25. How should we think about that 26, in terms of priorities? Uh, now that you've hit your, you know, 2 and a half times, leverage chart in terms of BuyBacks and anything else you're considering? Thank you.

Yeah, so, uh, Kevin does want to tell you that.

We probably got a little timing on capex, Flipping in the next year, but we're still going to have exceptional cash flow next year, and as we said in the press release balance sheets and really good shape.

Um, we'll responsibly return cash to shareholders. Um, you know, we might move debt down up up, or down a little bit, but we're going to be in and around.

[Analyst]: Thank you so much.

Two and a half times, and there's a lot of cash left over to return.

Timothy Donahue: Thank you.

Thank you so much.

Thank you.

Operator: Thank you. Next question will be from Anthony Pettinari of Citigroup. Sir, your line is open.

Thank you. Next question, will be from Anthony Peter of study groups to your line is open.

[Company Representative]: Good morning. Just following up on the last question. The CapEx that was lowered for this year, I guess it just shows up in next year. I don't know if you had any kind of further comments about CapEx specifically in 2026, just given that, you know, North America, Europe seems like, you know, the system is probably running pretty full, or I'm not sure how you'd characterize it, but any call you can give there.

Timothy Donahue: I’ll characterize it this way because it's a good question. I would say they're running full enough for everyone to be responsible and have a good margin environment. You know, the history of the world, people get greedy and they try to take more than they need to. The systems are pretty full, and we should find a way to operate and improve. Everybody should find a way to improve. You know, we originally said $450 million is capital this year. We're going to be about $400 million. If we thought about $450 million and $450 million, maybe next year is in the $450 million to $500 million range.

Uh, good morning. Um, just just following up on the last question. So the the capex that was, uh, lowered for for this year, I guess it just shows up in next year. And I don't know if you had any kind of further comments about capex specifically in 26 just given that, you know, North America Europe. Seems like you know, the system is probably running pretty full or I'm not sure how you'd characterize it. But uh any color you can give their

Well, I’ll characterize it this way because it’s a good question. I would say they’re running full enough.

For every 1 to be responsible and have a good margin environment. Now, you know, the history of the world, people get greedy, and they try to take more than they need to. Um, but the systems are pretty full and, um,

We should find a way to operate and improve. Everybody should find a way to improve. You know, we originally said 450th Capital this year; we're going to be about 400.

um, so if we thought about 450 and 450, maybe next year's in the 450 to 500 range,

[Company Representative]: Okay. That's very helpful. Just switching gears on transit, how did transit demand kind of hold up in Q3 relative to the expectations you shared with us over the summer? As we think about Q4 and finishing the year, is demand improving? Is it deteriorating? Is it kind of in line with Q3? Just any thoughts you can give there?

Okay, good, that's very helpful. Um, and then just Switching gears on Transit. How did Transit demand kind of hold up in 3Q? Kind of relative to the the expectations she shared with us, you know, over the summer. And as we think about 4 and finishing the year, I mean it's demand

Timothy Donahue: I would say that on the commodity side, that is, steel and plastic strap, film, all the protective products, actually holding up, and specifically in India and the United States, holding up much better than we had initially anticipated at the beginning of the year. That's probably driving a little bit of the slightly better performance that we had in Q2 and Q3 than we might have otherwise expected. It's offset by lower equipment and tools, which is, you know, much higher margin business. Equipment and tools impacted by the tariffs. Perhaps in a reverse way, tariffs are going to help our commodity businesses because it just becomes that much more expensive to bring commodity products into the country from overseas. All in all, I think holding up as we expected, we're just a touch better.

Improving. It's deteriorating. Is it kind of in line with Q3? Just any thoughts you can give their.

So, I, I would say that the on the commodity side, that is steel and plastic strap film, all the protective products actually holding up and specifically in in India and the United States holding up much better.

Than we had initially anticipated at the beginning of the year.

Um, and that's probably driving a little bit of the

Slightly better performance that we had in Q2 and Q3 than we might have otherwise expected.

Uh, and it's offset by lower equipment and tools, which is, you know, much harder, much higher, margin business, so, um equipment and tools impacted by the tariffs.

and then, uh,

Perhaps in a a reverse way tariffs are going to help our our commodity businesses because it just becomes that much more expensive to bring.

Commodity products into the country from overseas. So, um,

you know, I I all in all I think holding up

As we expected, or just a touch better.

[Company Representative]: Okay, that's helpful. I'll turn it over.

Timothy Donahue: Thank you.

Okay, that's helpful. I'll turn it over.

Operator: Thank you. Our next question will be from Phil Ng of Jefferies. Sir, your line is open.

Thank you.

[Analyst]: Hey, guys. Strong quarter. Congrats. Tim, I guess, you know, when we think about North America this year, the market's up. It's been a little noisy for you guys, but it sounds like you're seeing good momentum in the fourth quarter. When you kind of look at 2026, it sounds like you expect growth again. You know, how are you positioned now? I know during the summer months, you were sold out. Inventory was pretty tight. Do you think you're going to be in a position to better service that demand next year? You made the point that, you know, everyone's got decent capacity and they should be able to make good money and profitability. In this period, I believe there are some contracts that are going to be up for renewal in North America in the next 12 to 24 months.

Thank you. Our next question will be from Phil Ang of Jeffrey. Story line is open.

Strong quarter, uh, congrats.

Uh, so Tim, I guess, you know, uh, when we think about North America, this year, the Market's up, it's been a little noisy for you guys, uh, but it sounds like you're seeing good momentum in the fourth quarter when you kind of look at the 2026 sounds like you expect growth again. Um, you know how you're positioned. Now, I know during the summer months you were sold out, inventory was pretty tight. You think you can be in a position to better service that demand next year.

[Analyst]: Do you view that as an opportunity to sustain profitability at these levels and build off of it, or are there some risk factors that we should be appreciative of?

Timothy Donahue: Phil, the risk factor is that we're in a competitive business, and not everybody has the same goals and aspirations as everybody else. You know, we operate our business the way we operate our business, and I can't really comment on how other people operate their business, but I think we've done a nice job over the last several years bringing on capacity at reasonable margins and trying to get a return as quick as we can for the amount of money it costs to build and run a can plant. I think that we'll see where the market takes us. As I said earlier, we're not unhappy with our margin profile.

Um, and then you made the point that um, you know, everyone's got decent capacity, they should be able to make good money and profitability. Um, so in that in the spirit of that, I I believe there's some contracts that are going to be offering you all in North America. The next 12 to 24 months, do you view that as a opportunity to stay in sustained profitability at these levels and build off of it? Or there's some risk factors we should be appreciative.

Well, you know, the

With the risk factor is that?

we're in a competitive business, and

and um,

Not everybody has the same goals and aspirations as everybody else. And um,

You know, we we, we operate our business, the way we operate our business, and I can't really comment on how other people operate their business. But, um,

I think we've done a nice job over the last several years, bringing on capacity, uh, at reasonable margins and trying to get a return to as quick as we can, for the amount of money it costs to to build and run, a A can plan um,

I think that, um,

[Analyst]: Got it. Your ability to service that North America demand next year, it was a little tighter this year.

you know, we'll see, we'll see where the, where the market takes us but, um, you know, as I said earlier, we're we're not unhappy with our margin profile.

Timothy Donahue: No, we should be okay to service the demand next year. Okay, not an issue.

Got it. And then your ability to service that North American demand next year. Um, it it was a little tighter this year.

No, we should be okay to service the demand next year.

[Analyst]: Okay. Europe, obviously really strong growth, and to your point, capacity is pretty tight. Same question, your ability to kind of service that demand and, you know, lapping pretty tough comps, appreciating mid-single-digit growth is historically how it's grown. Is that still a good way to think about things when we look at the 2026?

I'm not an issue.

Okay.

Timothy Donahue: Yeah, we bought the German plant sometime early last year, I guess it was, and we're still trying to bring them through the Crown learning curve as opposed to whatever learning curve they thought they were on before, but it is getting better. That yields more cans as you go through that process. We are modernizing a facility in Greece. Essentially, we're operating the two old can lines currently, but we're building two new can lines on the same property. When they're done, they'll be much higher speed, obviously, with greater output capacity, and we'll take down the old lines when we're done. We are adding capacity in Europe as we speak. There are other ways that we're looking at to incrementally add capacity, if needed.

And then Europe um obviously really strong growth then to to your point capacity is pretty tight. Same question. Um, your, your ability to kind of serve as that the man and, you know, lapping pretty tough comps, you know, appreciating mid single digit growth is historically, out of the ground is, is that still a good way of thinking about things? When we look out the 26th,

yeah, we have, um,

We, you know, we we bought the German plant.

Um,

Sometime early last year, I guess it was. And we're still trying to...

Bring them through the Crown learning curve, as opposed to whatever learning curve they thought they were on before. But it is getting better, and that yields more cans as you go through that process. We are modernizing a facility in Greece.

essentially, we're

We're operating the two old can lines currently, but we're building two new can lines on the same property. When they're done, ...

Uh, they'll be much higher speed, obviously greater output capacity, and we'll take down the old lines when we're done. So, we are adding capacity in Europe as we speak.

[Analyst]: Got it. Remind me, when did those two new plants come online in Greece?

There are, you know, other ways that we're looking at to incrementally add capacity, if needed.

Timothy Donahue: It’s two lines, not two plants.

Got it. Remind me when that those 2 uh new plants come online increase.

[Analyst]: I'm sorry, two lines.

Timothy Donahue: They should be done sometime early next year.

Well, it's 2 lines, not 2 plants. I'm sorry, 2 lines.

[Analyst]: Okay. Appreciate the color. Thank you.

Yeah, they they should be done sometime early next year.

Timothy Donahue: You're welcome.

Okay, appreciate the call. Thank you.

You're welcome.

Operator: Thank you. Our next question will be from Matt Roberts of Raymond James. Sir, your line is open.

[Analyst]: Hey, Tim, Kevin, good morning. Let me take another stab here at 2026. Less diverse to the point, but based on the demand you're seeing now, do you continue to expect to build inventory in Q4? More broadly, it seems like at Max last week, a lot of customers seem to be showing off innovation or areas of growth. Are there areas of the portfolio where you'd like to lean into more in 2026? On the contrary, are there certain pockets of the portfolio that are becoming more competitive going into 2026 that you'd want to diversify away from to protect price and margin?

Thank you. Our next question will be from Matt Roberts of Raymond James. Sir, your line is open.

Hey, Tim Kevin, good morning. Um take another morning, let me take another step here at 2026, lest I break the point. Um, but based on the demand you're seeing now, do you continue to expect to build inventory in for Q and then more broadly? I mean it seems like at at Max last week a lot of customers seem to be showing off Innovation or areas of growth are there areas of the portfolio where you'd like to lean into more in 2026 or on a contrary certain pockets of the portfolio that are becoming more competitive going into 2026 that you'd want to diversify away from to protect price and margin.

Timothy Donahue: I don't know if there's anything I'd say is becoming more competitive. The business has always been very competitive, and I don't think we really want to lean away from anything. I think, you know, Kevin and I were talking earlier, we mentioned earlier to you the price of delivered aluminum right now at $2.10 a pound, most of that increase being made up by the increased delivery premium. This is the highest that we ever remember. It does remind us of mid to late 2022, when a massive rise in the aluminum price to the delivered aluminum to the mid-four thousands a ton did have an inflationary impact across the can business. The one thing that our business survives very well is recessionary environments. Many businesses and demand, you do worry about inflation.

I don't know if there's anything I'd say is becoming more competitive. The business has always been very competitive. Um, so and I and I don't think you we really want to lean away from anything.

um, I I think the

You know.

Kevin and I were talking earlier, you know, the

We mentioned earlier that the price of delivered aluminum right now is $2.10 per pound.

Most of that increase is made up by the increased delivery premium. This is the highest that we ever remember.

And it, it does remind us of mid to late 2022.

uh, when a

massive rise in the aluminum price to the

Delivered aluminum to the mid $4,000s a ton. Uh, did have an inflationary impact.

Uh, across the canned business and, um,

And, uh, you know, the one thing that our business...

Timothy Donahue: Let's see before we get too excited about next year, let's see what higher aluminum and higher inflation because of aluminum means to not only our customers, but also to the consumers. Nothing that we're going to lean away from. It's just, you know, you're always mindful of inflation.

Survives very well in recessionary environments. Many businesses and demand you do worry about inflation. So let's see, before we get too excited about next year.

Let's see what, uh, higher aluminum.

Uh, and higher inflation because of of aluminum means to uh not only our customers but also to the consumers but nothing that we're going to lean away from. It's just, you know, you're always mindful of

of inflation.

[Analyst]: That certainly makes sense. Thank you, Tim. And one more on Europe. You did note Continental did better than Middle East. Within Continental Europe, was that across the board for the market or more specific to Europe? Okay.

Operator: I'll call it Southern Europe exposure.

Timothy Donahue: Yeah, for us, it was across the board.

Operator: Okay. You did note tourism. It seems like some travel companies are saying tourism season is getting extended. Was that evident in October, or does that impact seasonality in that business at all going forward, or just too minimal, all things considered?

I call it Southern Southern Europe, exposure for us. It was AC the board.

Timothy Donahue: No, tourism is very big from, let's say, May to September. It is more seasonal than it's not an October phenomenon.

Okay. Um, well, you didn’t have tourism. I mean, it seems like some travel companies are saying tourism season is getting expanded. Was that evident in October or does that impact seasonality in that business at all, or is it just too minimal, all things considered?

No tourism is very big from, let's say, May to September.

Operator: Okay. Appreciate that. Maybe I could squeeze one last one in. It looks like you have some maturities due in 2026, just to refinance the zero notes. Plans to address remaining maturities or impact the interest in 2026 or not? Thanks for taking all the questions.

It is more seasonal than it's not an October phenomenon.

Okay.

Kevin Clothier: Yeah. Matt, in terms of the 2026 notes, if you look at the balance sheet now, we really have cash on the balance sheet to settle those notes. Some of them have different call dates, so we'll look at the call dates and address them as they come due. In terms of interest expense for next year, I would think it's largely in line with this year, is what I would forecast.

Appreciate that. Maybe I could squeeze 1 last 1 and it looks like you have some maturities doing 2026. Just to refinance the Euro notes um plans to address remaining maturities or or impact the interest in 2026 amount. Thanks for taking all the questions.

Operator: Tim, Kevin, thank you again.

Yep. Uh, so yeah, Matt in terms of 2026 notes, uh, if you look at the balance sheet, now, uh, we really have cash on the balance sheet to settle those notes and, um, some of them have different call dates. So we'll look at the call dates and, and, and take and address them as they come. Do the, uh, in terms of interest expense for next year. I would think it's largely in line, with this year, um, is is what I would forecast.

Timothy Donahue: Thank you.

Kevin Clothier: Thank you, Matt.

Tim Kevin. Thank you again.

[Company Representative]: Thank you. Our next question will be from Mike Roxland of Truist Securities. Sir, your line is open.

Thank you. Our next question.

Mike roxland.

Timothy Donahue: Thank you, Tim, Kevin, Tom, for taking my questions, and congrats on a strong quarter.

Uh, thank you. Tim. Kevin Tom for taking my questions and congrats on the strong quarter.

Operator: Welcome.

Timothy Donahue: Tim, just would love to get your thoughts around capital allocation for 2026. Given you've had a strong growth this year, increase in free cash flow generation, which you just increased with your updated guide, you're now at your targeted leverage level. How should we think about capital return next year, particularly in light of some of the expansion projects you've mentioned as well that you're pursuing in Europe?

Um,

Tim just wanted to get your thoughts around capital allocation for 2026. You know, given you've had a strong growth this year and an increase in free cash flow generation, which you just increased with your updated guidance. You now have your targeted leverage level. So how should we think about capital return next year, particularly in light of some of the expansion projects you mentioned as well that you're pursuing in Europe?

Timothy Donahue: I think we said this year capital's $400 million. We said next year's $450 million to $500 million. That doesn't materially reduce cash flow, but if you want to say we got $1 billion in this year and you're only happy with $900 million next year, we'll be happy with $900 million next year. We'll see where it comes out. As we said, the balance sheet's in pretty good shape. At the end of the third quarter, we're two and a half times levered. Whether we're 2.3 or 2.7 or 2.5, I'm not sure, when the world we're in right now makes a whole lot of difference. I think it gives us the flexibility, depending on the share price, to be opportunistic, how and when we want to return more cash to shareholders.

Well.

I think you said,

This your capital is 400. We said next year is 450 to 500. That doesn't materially reduce

Cash flow. But, you know, if you want to

If you want to say we got a billion this year and you're you're only happy with 900. Let next year we'll be happy with 900 next year. Um we'll see where it comes out but um

and as we said, the balance sheets in pretty good shape and

You know, at the end of the third quarter, we're 2 and a half. Times levered. Whether we're 2.3 or 2.7 or 2.5. I'm not sure. Uh, in the world we're in right now

It makes a whole lot of difference. I think it gives us the flexibility, depending on the share price, to be opportunistic. Um,

Timothy Donahue: I mean, I totally get it. Do you think, given the accelerating free cash flow, that you could repurchase $400 million of shares, $500 million worth of shares, any number that you'd like to just give as a baseline, given your strong performance for 2026?

How? And when we want to return, more cash to shareholders,

I mean I I totally get it. I mean, do you think given um, the accelerating free cash flow that you could, you could repurchase, you know, 400 million of shares? 500 million dollars worth of shares. Any number that you'd like to just give us a baseline, uh, given, uh, given your strong performance.

Timothy Donahue: I could give you a whole lot of numbers. I don't want to give you a number because you're going to write it down. You can do the math. Clearly, if you want to start with $900 million, if we don't buy back a number like you just said, what are we going to do with the cash? We can either pay down debt or buy back stock. I don't mean to not give you an answer. I just don't want to say I'm going to buy back a certain amount, and if the price doesn't make sense, we'll see where we get to. There's adequate cash to allow us, I don't want to say unlimited flexibility, but a lot of flexibility in what we do.

For 20 seconds to this.

I could give you a whole lot of numbers. I don't want to give you a number because you're going to write it down, but,

You.

Let me, you can do the math, uh, clearly.

You know, if we, if you want to start with $900 million,

You know, if if we don't buy back a number like you just said, what are we going to do with the cash? We can either pay down debt or buy back stock.

So I I don't I don't mean to not give you an answer. I just I don't, I don't want to say, I'm going to buy back a certain amount and if the price

Doesn't make sense, you know? We'll see what we get to, but there's adequate cash to allow us.

Timothy Donahue: Totally get it. One quick follow-up just on the CapEx to $450 to $500 million. Is that solely related to the two new lines in Greece and the modernization of the German plant? Is there anything else that we should be mindful of with CapEx, and could that number actually wind up being higher if you decide to pursue other projects? Thank you.

Uh, I don't want to say unlimited flexibility, but a lot of flexibility in what we do.

Timothy Donahue: We also have a third line that we're putting in a plant in Brazil that we've talked about earlier. That's included in there, and there may or may not be one other opportunity that we've not decided on, certainly not announced yet.

Till I get it. Um, and 1 quick follow up, just on the catback, is the 450 to 500 million is that solely related to the 2 new lines in Greece, and the modernization of the German plan. And is there anything else that we should be mindful of with with capex? And could that number actually wind up being higher if you decide to pursue other projects, thank you.

We, uh, we also have a plant, uh, a third line that we're putting in a plant in Brazil that we have talked about earlier.

So that's included in there, and there may or may not be one other opportunity that we've not decided on, certainly not announced yet.

Timothy Donahue: Thank you.

Timothy Donahue: Thank you.

Thank you.

Thank you.

[Company Representative]: Thank you. Our next question will be coming from Arun Viswanathan of RBC Capital Markets. Sir, your line is open.

Operator: Great. Thanks for taking my question. Congrats on a very strong quarter there. I guess first off, just in North America, I understand that, I think your volumes maybe, I think you mentioned minus 3%, industry maybe a plus 2%. I think you attributed a good portion of that to some customer mix issues, by your own intentions earlier in the year. Would you characterize the rest of your portfolio as somewhat in line with industry, excluding that event, or maybe ahead or behind? I think you guys are a little bit under-indexed to energy versus your peers. Did that result in maybe a less than industry performance, or would you say that you guys were in line and seeing pockets of strength elsewhere?

Thank you. Our next question will be coming from our investment analyst, Nathan. Um, our VC Capital markets through your line is open.

In the year, so I guess.

Timothy Donahue: No, I think the customer prune probably gets us pretty close to flat year over year. Then there is slight underperformance, and you may want to attribute that to under-indexing energy. The other thing I would tell you is that alcohol was stronger in Q3 than we've seen for some time. As you know, we're under-indexed to beer in North America, so that could have attributed some of it as well.

Would you characterize the rest of your portfolio as somewhat in line with the industry, excluding that event or maybe uh, ahead or behind? Um, you know, I I think you guys are a little bit under indexed to energy versus your peers. Did that result in maybe a a lesson industry uh, performance or would you say that you guys were were in line and and uh, seeing pockets of strength elsewhere.

no, I I think you're I think the uh, the the customer prune

Probably gets us pretty close to Flat year-over-year. The then there is slight underperformance and

Uh, you may want to attribute that to under-indexing energy. The other thing I would tell you is that alcohol was stronger in Q3.

Operator: Okay. That's helpful. If we consider that maybe, you know, you will post some growth, as you noted in Americas next year, do you expect also, you know, continued growth in, you know, the other segments as well? I mean, European beverage really, you know, standout performance, you know, but you are going to be facing pretty tough comps there. Then Signode and non-reportables or transit non-reportables that appear to have achieved a structurally higher earnings power level. Is that correct? Is that a fair characterization? Can you grow from what you did this year, or is this year more transitory?

Than we've seen for some time and as you know we're under index to beer in North America so that that could have attributed some of it as well.

Okay, that's helpful. So then if um we consider that maybe, you know, you will post some growth as you noted in America's next year. Um, do you expect also um, you know, continued growth in uh, you know, the other segments as well. I mean, European beverage, really, you know, Stand Up Performance, you know, but you are going to be facing pretty tough comps there. Um, and then sign out and and uh, non-reportable or Transit non-reportable is achieved uh, appear to have achieved. Um, a structurally higher earnings. Power level is, is that correct? Is that a fair characterization?

uh, and can you grow from from what you did this year or is, uh, is this your more, um, transitory

Timothy Donahue: We expect the European business to continue to grow volume and income-wise. I think the can still has penetration available to it across Southern Europe, and it certainly has substrate shift available to it across the entire continent. Transit, the cost structure is significantly lower than it was a couple of years ago. That business is only waiting for industrial demand to pick up, and there are embedded gains in that business. Now, whether, as I've said before, that's one, two, or three years away, I can't answer it for you, but the business from a cost standpoint is in excellent shape. Food business, I would say that, as you know, food is not a growth business. We expect food to be a very stable business. We do see the move from human food in cans shifting more to pet food in cans, and that is ongoing.

Um, so I think, you know, we expect the European business to continue to grow volume and income wise.

I think the the can still has penetration available to it across southern Europe, and it certainly has substrate shift available to it across the entire continent.

um,

Transit.

Uh the cost structure is significantly lower than it was a couple of years ago. That business is only waiting for industrial demand to pick up and there is embedded gains in that business. Now whether as I've said before whether that's 1 2 or 3 years away, I can't answer it for you but the business from a cost standpoint is in excellent shape uh Food business. Um I would say that as you know, food is not a growth business. So uh, we expect food to be a very, um, stable business.

Timothy Donahue: We have a very large and stable pet food presence, and we're going to continue to benefit from that. I think the growth that we're likely to see in the other segment comes from greater efficiencies on stable volumes in food and aerosol, combined with some recovery in the can-making equipment business over time.

Uh, we do see the move from, uh, human food in cans shifting more to pet food in cans, and that ongoing shift is significant. We have a very large and stable pet food presence, and we're going to continue to benefit from that. So, um, I think the growth that we're likely to see in the other segment comes from greater efficiencies on stable volumes in food and aerosol, combined with, uh, some...

Operator: I really appreciate that. If I could squeeze one last in, just on the Midwest premium and maybe even aluminum in Europe, I know that the % margin may start to get impacted. Would that inflation also potentially start to impact demand at some point, especially in Europe, as you potentially negotiate those price increases, or how does that work?

Recovery in the can-making equipment business over time.

Timothy Donahue: Yeah. I mean, obviously, we did say North America, we are mindful of inflation, the impact of inflation on the consumer, specific to higher delivered aluminum, which is mostly related to the Midwest premium right now. The delivery premium in Europe is not the Midwest premium, and it's not as elevated as the Midwest premium because they're not dealing with a tariff structure for imported aluminum. We don't have the same inflationary element, notwithstanding the London Metal Exchange price for aluminum. I don't right now have the same concern with European demand that I do with North American demand.

And I I really appreciate that just if I could squeeze 1 1 last in just on the Midwest premium and maybe even aluminum in Europe. Um, I know that the percent margin may start to get impacted but with with that inflation also potentially start to impact demand at some point. Um uh especially in Europe, uh as you you know potentially negotiate those price increases or how does that work? Yeah, so I mean, obviously, we did say North America. We're, we're we are mindful of inflation.

uh,

the impact of inflation on the consumer, uh, specific to higher delivered aluminum, which is

Mostly related to the Midwest premium right now.

Uh, the delivery premium in Europe is not the Midwest premium, and it's not as elevated, uh, as the Midwest premium because they're not dealing with a tariff structure for imported aluminum. Um, so, uh, we don't have the same inflationary element, notwithstanding the London Metal Exchange price for aluminum. Um, so I don't right now have the same concern with European demand that I do with North American demand.

Operator: Great. Thanks.

Timothy Donahue: Thank you.

Alright, thanks.

[Company Representative]: Thank you. Our next question will be from Josh Spector of UBS. Sir, your line is open.

Thank you.

[Analyst]: Hey, good morning. First, I just want to ask a quick follow-up on free cash flow and deployment there. I think in response to an earlier question, you talked about paying off some of your debt coming due. Just curious, do you think you need to reduce your gross debt level from here? Or just trying to think about why do that versus refi and buybacks since next year and how you're thinking about it?

Thank you. Our next question will be from Josh Spectre of UBS your line open.

Hey, good morning. Um, first, I just want to ask a quick follow-up on free cash flow and deployment there. I think in response to an earlier question, you talked about paying off some of your debt coming due. Just curious, do you think you need to reduce your gross debt level from here? I'm just trying to think about why do that versus refinancing and buybacks next year, and how you're thinking about it?

Kevin Clothier: We give you a net debt leverage ratio, which is two and a half times. The cash on the balance sheet right now is really there to pay off debt that's coming due. It's a net leverage, so it doesn't move. As we think about it going forward, absolute debt levels, we're comfortable with the absolute debt level because it tells us the net debt level because we're at the two and a half times. We do have to address the bonds that are coming due to use the cash and refinance, you're effectively levering up at that point. We're comfortable at the net leverage ratio of two and a half times.

Which is 2 and a half times. So the cash on the balance sheet right now is really, uh, there to pay off debt. That's coming due. Uh, it's a net leverage. So it doesn't move, um, you know, as as as we we we think about it going forward, um, you know, absolute debt levels. Uh, you know, we're comfortable with the absolute debt level because it tells us to net, debt level because we're at the 2 and a half times. Um,

Timothy Donahue: Yeah. We don't expect any levering up to satisfy 2026 maturities. Just to summarize it, I think we're in and around the long-term target of two and a half times. If we took all the cash flow we generated next year and paid dividends and bought back stock, we'd still be levered in and around two and a half times.

We do have to address the the, the bonds that are coming to to to, you know, use the cash and refinance, your effectively Levering up at that point. So, um, we're we're, we're, we're comfortable at the, uh, the net leverage ratio of 2 and a half times. Yeah, we we don't expect any Levering up to satisfy 2026 maturities.

Just to summarize it. I think we're in and around the long term Target of 2 and a half times.

Um, if we took all the cash flow we generated next year and paid dividends and bought back stock, we'd still be leveraged in and around 2.5 times.

[Analyst]: Okay. I appreciate that. Just to ask on the Novelis fire that was reported earlier, from this call, it doesn't sound like that's impacting your volumes at all. Curious, does it have any impact for you or your view on what the impact there could be on the industry?

Timothy Donahue: direct impact to Crown Holdings, Inc. from that fire is not as large as it is to others, including some of the customers. That does not mean there's not an indirect impact. Novelis is looking to subsidize lost automobile production with can sheet production. We are monitoring that. We don't have a lot of exposure to Novelis in total, but we are mindful of the impact on some of the customers we have that do buy directly from them. We don't see a negative impact to the company over the next several months.

Okay, I appreciate that. And just to ask on the Novell fire that was reported earlier, I mean from this call it doesn't sound like that's impacting your volumes at all. But I’m curious, does it have any impact for you or your view on what the impact could be on the industry?

Uh, so the direct impact to Crown from that fire.

is not as large as it is to others, including some of the customers.

Um, that does not mean there's not an indirect impact, and um,

And Novelis is looking to.

Uh, subsidized lost automobile production with, uh, can sheet production. So we are monitoring that, but we're not a.

We don't have a lot of exposure to the velis in total, uh, but we are mindful of the impact on some of the customers we have that do buy directly from them.

[Analyst]: Okay, thank you.

Uh, we don’t see a negative impact to the company, uh, over the next several months.

Timothy Donahue: Thank you.

Okay, thank you.

[Company Representative]: Thank you. Our next question will be from Edlain Rodriguez of Mizuho. Sir, your line is open.

Thank you.

Thank you. Our next question, will.

[Company Representative]: Thank you. Good morning, everyone. Tim, when you look at share repurchase, again, since earnings last quarter in July, there was a long down spell in the stock. Was there any thinking of trying to be more aggressive with buying back shares over the past couple of months, or was getting to the targeted leverage a higher priority?

Inland Rodriguez, Mizzou. Your line is open.

And thank you and good morning, everyone. I mean, Tim. So when you look at the...

Timothy Donahue: I don't think there was no priority to get to the targeted leverage. I think we got to the targeted leverage a little earlier than we anticipated, probably for three reasons. We generated a little bit more cash than we thought we would. Some of that was the result of more earnings than we thought we would have. I think currency helped us as well. We do have a fair amount of debt that's denominated in euros, and the euro did devalue a little bit in Q3. All of that helped us get to that leverage target a little sooner than we thought we would. Whether we got to two and a half times by the end of this year or sometime next year was never really our concern. It was a target, and we had a clear pathway to get there over time.

Shall we purchase? I mean, again since earnings last quarter you know, in July know, there was like a long down spell in in in those stock like was there any thinking of trying to be more aggressive uh, with buying back shares, uh, over the past couple of months or was getting to the targeted leverage or higher priority?

Timothy Donahue: When we chose to buy back stock was more a function of as we got further through the third quarter and the big season, you get a little bit more comfortable where the season's going to end up. That was all it was.

Well, I don't, I don't think there was no priority to get to the targeted leverage. I think we got to the targeted leverage, a little earlier than we anticipated probably uh, for 3 reasons. We generated a little bit more cash than we thought we would. Uh, some of that was the result of more earnings than we thought we would have. And then I think currency helped us as well. So we do have a fair amount of debt that's denominated in euros and the Euro did devalue a little bit in Q3. So all of that helped us get to that leverage Target. A little sooner than we thought we would. Um, whether we got to 2 and a half times by the end of this year or sometime next year, was never really Our concern. It was a, it was a Target and we had a clear pathway to get there over time. Um,

I, you know.

when we chose to buy back, stock was more of a function of as we got

[Company Representative]: Okay. One last one on Europe again. Clearly outperform even your expectation, I believe. Over the past couple of months, as the quarter progresses, where were the big surprises versus what you were expecting? Again, 12% volume growth, and maybe I think you were expecting maybe it could be like half of that or a little more. What were the big surprising items there for you?

further through the third quarter and and the and the big season, you get a little bit more comfortable where the season's going to end up that that was all it was

Okay, and, and 1 last 1, uh, on on Europe again. Again, clearly outperformed even your expectation, I believe. So, over the past couple of months, as a quarter Progressive, like, what, like, where were the big surprises, like, this is what you were expecting, again. 12%, volume growth. And maybe I think you were expecting.

Timothy Donahue: I think we always knew we were going to have a real strong campaign in Europe. You know, we were at a conference in early September, and all we did at that conference was tell people, you know, the analyst at this conference put out a note that said the weather in Brazil was really lousy and demand was lousy. We tried to remind everybody we have other businesses. Namely, we have a European business that's going to do really well. We did expect Europe to do really well. I think it was broad-based, broad-based across our portfolio in Europe, which is, as I said earlier, perimeter-based and does benefit from tourism, and we just had a very strong season.

Maybe it could be like half of that a little a little more. Like what would the big surprising uh items there for you?

Well, I think we always knew we were going to have a real strong campaign in Europe. Um,

you know, we we were at a conference in early September and um,

All we did at that conference was tell people, you know, the Analyst at this conference put out a note that said the weather in Brazil was really lousy and demand was lousy and we tried to remind everybody. We have other businesses. Namely we have a European business that's going to do really well. So we did expect Europe to do really well.

Um, but I think it was broad-based. Um,

Perimeter based.

[Company Representative]: Okay, thank you very much.

And, uh, it does benefit from tourism, and we just had a very strong season.

Timothy Donahue: Thank you.

Okay, thank you very much.

Thank you.

[Company Representative]: Thank you. Our last question will be from Jeff Zekauskas of JPMorgan Chase. Sir, your line is open.

Kevin Clothier: Thanks very much. In your share repurchase, did you buy your shares rapidly through the quarter? Sequentially, I think your share count is down maybe 150,000 shares. Did you issue shares in the quarter, or is there an issuance number for this year?

Thank you. Our last question will be from Jeff Vasos of JP Morgan. The line is open.

In your Sherry purchase, did you buy your shares rally through the quarter and sequentially?

Timothy Donahue: There were no shares issued in the quarter. The shares, how many shares did you buy, Kevin?

Um, I think your share count is down maybe 150,000 shares. Um, did you issue shares in the quarter or is there an issuance number for this year?

There were no shares issued in the quarter. Um,

Kevin Clothier: Million.

The shares. How many shares? You, how many shares did you buy? Kevin?

Kevin Clothier: We bought shares later in the quarter, Jeff. Yeah, a little over, almost 1.1 million.

Timothy Donahue: Would they have all been bought over a couple-week period?

Kevin Clothier: Yeah.

Timothy Donahue: Yeah.

Million. Uh, we bought. So we bought shares later in the quarter, Jeff. And a little over uh almost 1.1 million and they would have all been bought over a couple week period. Yeah. Yeah.

Kevin Clothier: No share issuance, Jeff. We.

Kevin Clothier: No share issuance.

Kevin Clothier: Yeah.

And, and no share know. Share issue with Chef we know insurance.

Kevin Clothier: As you look in the fourth quarter, has the European, strong volume trend continued?

You know, as you look in the fourth quarter, has the European strong volume trend continued?

Timothy Donahue: We expect Europe to be very firm in the fourth quarter as well. As I said earlier, you should not expect 12% every quarter, but long-term compound annual growth rate for the region in the range of 4 to 4.5, 4 to 5%, that's something reasonable to expect.

Uh, we expect Europe to be, uh, very firm in the fourth quarter as well. I, I, I, as I said earlier, you should not expect 12% every quarter, but.

Kevin Clothier: Great. Thanks so much.

Uh, the long-term compound annual growth rate for the region, in the range of 4% to 4.5%, or 4% to 5%, that's something reasonable to expect.

Timothy Donahue: Thank you. I think you said that was the last question. Thank you very much, Al. We thank all of you for joining us, and we'll speak to you again in 2026. Bye now.

Thanks so much.

Thank you.

Kevin Clothier: Thank you.

And now, I think you said that, uh, was the last question. So, thank you very much, Al, and, um, we thank all of you for joining us. We'll speak to you again in 2026.

[Company Representative]: Thank you. That concludes today's conference. Thank you, everyone, for joining. You may disconnect now and have a great day.

Bye now. Thank you.

Thank you, and that concludes today's conference. Thank you, everyone, for joining. You may disconnect now, and have a great day.