Ardagh Metal Packaging (NYSE:AMBP) executives told investors the company delivered “another year of strong performance” in 2025, driven by shipment growth of more than 3%, a favorable product mix, and cost control efforts that helped lift profitability above its initial expectations.
On the company’s fourth-quarter 2025 earnings call, CEO Oliver Graham said adjusted EBITDA grew 10% year over year in 2025, “significantly” exceeding the company’s initial guidance, as AMP generated operational and overhead cost savings and managed changing demand patterns across beverage categories and can sizes. CFO Stefan Schellinger said AMP ended the year with $964 million of liquidity, and the company reiterated its quarterly ordinary dividend of $0.10 per share.
Fourth-quarter and full-year results
Management also emphasized the company’s view that beverage cans continue to gain share against other packaging substrates, supported by convenience, branding, total cost of ownership, and sustainability credentials.
Segment performance: Europe and the Americas
Europe: Fourth-quarter revenue decreased 1% to $539 million, or 6% on a constant-currency basis, which Graham attributed principally to the impact of a negative IFRS 15 contract asset. Shipments increased 1% in the quarter, with growth in carbonated soft drinks and other categories (including energy) offset by lower beer shipments. Full-year European shipments rose 2%, as non-alcoholic growth offset flat beer performance.
European adjusted EBITDA in the fourth quarter increased 14% year over year to $64 million, which management said was ahead of expectations. On a constant-currency basis, adjusted EBITDA increased 8%, driven by higher input cost recovery including a positive benefit from metal timing effects and favorable mix, partially offset by higher operations and overhead costs. Full-year adjusted EBITDA in Europe was $272 million.
Americas: Fourth-quarter revenue increased 24% to $807 million, reflecting the pass-through of higher input costs to customers, including the impact of a higher Midwest Premium in North America, as well as shipment growth. Fourth-quarter adjusted EBITDA in the Americas declined 6% to $102 million, which management attributed to higher operations and overhead costs and lower input cost recovery, partially offset by favorable mix.
In North America, shipments increased 9% in the fourth quarter despite supply chain disruption; full-year shipments grew 6%. Graham said AMP’s North America sales mix remained weighted toward non-alcoholic beverages, noting energy drinks represented 16% of North America sales in 2025 and sparkling water represented 11%, while beer was “only a mid-single digit %” of the portfolio.
In Brazil, fourth-quarter shipments fell 4% but were a sequential improvement from the third quarter, while full-year shipments declined 2% in line with a weak industry backdrop. Graham said industry data indicated beverage cans gained “an additional couple of percentage points” of share in beer packaging during 2025.
Balance sheet actions and cash flow
Schellinger said AMP closed a $1.3 billion equivalent green bond financing in December, which increased reported net leverage to 5.3x net debt to adjusted EBITDA. He said proceeds were used to repay $600 million of notes due in June 2027, repay a EUR 269 million senior secured term loan, and redeem EUR 250 million of preferred shares.
According to Schellinger, the refinancing lengthened AMP’s maturities so that no bonds mature before September 2028, simplified the capital structure, and is expected to generate annual cash savings of approximately $10 million, as higher annual cash interest is more than offset by savings from eliminating preferred share dividend payments of about $25 million annually.
AMP generated adjusted free cash flow of $172 million in 2025, which Schellinger said was ahead of guidance. He also noted that both S&P and Fitch took positive credit rating actions during the quarter, citing the company’s operating and financial performance.
2026 outlook: transition year in North America, growth elsewhere
Management guided 2026 adjusted EBITDA to a range of $750 million to $775 million, with first-quarter adjusted EBITDA expected at $160 million to $170 million. Graham said the expected full-year improvement is driven by operational efficiencies and cost savings, shipment growth in line with industry growth in Europe and Brazil, and improved category mix.
- Europe: AMP expects volume growth of around 3% in 2026, broadly in line with the industry. Graham said capacity remains tight and the company is optimizing its network toward higher-demand can sizes. AMP is progressing plans to add capacity in Spain and the U.K. by adding lines at existing facilities over the next couple of years, with a “moderate” capital expenditure increase spread across financial years.
- North America: AMP expects low-single-digit industry growth, but management reiterated that 2026 will be a “transition year” for AMP volumes due to contract resets tied to footprint situations. Graham said the company expects a small volume decline in 2026 before returning to growth in 2027, supported by additional contracted filling locations and its portfolio mix.
- Brazil: AMP expects low- to mid-single-digit industry growth and said it expects its volumes to broadly track the market. In response to a question about a potential World Cup impact, management said its market outlook already broadly incorporates that effect, with any uplift likely appearing in the months leading into the tournament and into the period as the tournament progresses.
Management also discussed operational headwinds tied to tight metal supply following disruptions at a major supplier’s rolling mill. Graham said AMP incurred additional costs in the fourth quarter and expects the situation to persist through the first half of 2026 before capacity is restored and new domestic supply ramps up. In response to analyst questions, management characterized the potential first-half impact in the “$5 million-$8 million” range, with the lower end roughly consistent with what was seen in the fourth quarter.
On cash flow components for 2026, Schellinger said the company expects capital expenditures slightly above $200 million, lease principal repayments of about $115 million, cash interest of around $220 million, cash taxes a little over $30 million, and a smaller working capital outflow.
About Ardagh Metal Packaging (NYSE:AMBP)
Ardagh Metal Packaging (NYSE: AMBP) is a global supplier of metal packaging solutions, specializing in the production of steel and aluminum beverage cans, food cans and ends. As a segment of the Ardagh Group, the company supports a broad range of food and beverage customers, including soft drink and craft beer producers, as well as food manufacturers requiring durable, recyclable packaging. Its product portfolio encompasses two‐piece and three‐piece cans, a variety of can ends and closures, and value‐added services such as custom lithography and decorating.
The company operates a network of manufacturing plants across North America and Europe, serving both regional and multinational clients.
