Matt Roberts

Stander confirmed Kroger protein piloting and a second-half 2026 Walmart commercial start, but declined to quantify the percentage of the rollout in 2026.

CEO acknowledged inflation higher than planned with lower economic indicators. Confidence in earnings growth from $55M restructuring (increased from $50M), HVC expansion, and share count reduction. CPG volumes showing early positive signs; apparel imports and inventory-to-sales ratios at cycle lows.

CEO expects general retail compliance to return as tariff disruption normalizes. Largest logistics customer fully automated domestically; discussions on international expansion and first-mile shipper applications. Other logistics pilots expanding across major carriers in US and Europe.

CEO said new program rollouts largely on track ex-tariffs, but volume muted by apparel tariff impacts. Too early for 2026 outlook given uncertainty; will detail in January.

CFO confirmed continued capital allocation strategy with slower buyback pace than Q1. CEO emphasized robust M&A pipeline and leverage capacity at 2.3x.

CEO stated minimal tariff impact on RFID supply chain, ROI pays back within a year, and no customer has indicated they will pull back on rollouts.

CEO explained compliance-driven acceleration in general retail and laid out low double-digit apparel IL growth expectation for 2025 with 10-15% total IL range.

Steve pointed to the $0.13-0.21 EPS bridge (~$80 million after-tax, ~$100 million EBIT at the midpoint), driven by ~$110 million of EBIT synergies plus reduced Berry depreciation, offset by higher taxes (16% first half returning toward ~19%) and modestly higher interest from prior refinancings.

PK cautioned against reading short-term trends but acknowledged April volumes better than Q3 run rate. Uncertain whether driven by customer stock-building ahead of disruption. Supply chain tightness limits pre-buying. Customer promotional commitment encouraging with more consistency.

PK attributed healthcare weakness to weaker US flu season and potential phasing between quarters. Broad exposure across pharma and medical provides balance. GLP-1 solid oral dose win highlighted as example of combined company capabilities in healthcare.

Michael noted one European plant (<$20M sales) and one equity-accounted JV totaling ~$100M proceeds. Pleased with outcome. Proceeds to pay down debt. Continued work on remaining noncore assets including NA Beverage.

PK explained Berry buys little PET (NA Bev's main material) and some NA Bev resin is toll-supplied. Procurement synergies at ~50% of total $650M remain intact in dollar terms regardless of potential beverage divestiture.

PK said assessment must be refreshed in context of combined entity and synergy opportunities. Environment won't stop the initiative but timing of execution is hard to predict. Committed to disciplined approach.

Roberts sought clarification on full-year volume growth; Lewis said Ball should be at or above 2-3% and is tracking mid-range at the half-year point.

Lewis confirmed enterprise April volumes up mid-single digits with South America up 20% (erasing all Q1 declines). Q1 SA weakness driven by high Q4 2025 customer inventory carryover and below-average peak season weather. Flat SA operating earnings achieved via lower inventory build and favorable size/country mix.

Rabbitt guided majority of $35M headwind to H2 2026. Benepack ramp similarly back-half weighted with 2027 as the real contribution year. Both acquisitions have similar maturation profiles.