CROWN HOLDINGS, INC.
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
CCK$121.30-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001219601-25-000015
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0001219601-25-000036
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 116 current paragraphs.
65 unchanged; 34 reworded; 14 added; 7 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Net sales increased primarily due to $120 from the pass-through of higher material costs, higher beverage and food can volumes in North America, as well as across the European Beverage segment and favorable foreign currency translation of $23, partially offset by lower volumes in Asia Pacific and the Transit Packaging segment.
Current report
Six months ended June 30, 2025 compared to 2024
Current report
In May 2025, the Company announced it will add a new high-speed production line to its beverage can plant in Ponta Grossa, Brazil. The line is expected to commence commercial production in the third quarter of 2026.
Current report
For the three and six months ended June 30, 2025 compared to 2024, Net sales increased primarily due to $83 and $154 from the pass-through of higher aluminum costs and higher volumes in both periods, part ially offset by unfavorable foreign currency translation of $10 and $23.
Current report
For the three and six months ended June 30, 2025 compared to 2024, Net sales increased primarily due to $28 and $50 from the pass-through of higher aluminum costs, higher volumes of 6% and 8% and favorable foreign currency translation of $19 and $11.
Current report
For the three and six months ended June 30, 2025 compared to 2024, Net sales decreased primarily due to lower volumes, partially offset by the pass-through of higher aluminum costs of $14 and $25 and favorable foreign currency translation of $7 and $11.
Current report
Segment income was comparable to 2024 with lower volumes partially offset by $6 and $8 improved manufacturing performance, including savings realized as part of prior year restructuring actions, for the three and six months ended June 30, 2025, respectively.
Current report
For the three and six months ended June 30, 2025 compared to 2024, Net sales increased primarily due to higher food can volumes of 7% and 11% partially offset by $13 and $26 related to the closure of the food can plant in La Villa, Mexico.
Current report
For the three and six months ended June 30, 2025, restructuring and other net charges of $47 and $45, primarily related to an asset impairment charge in China and end line rationalization in the Asia Pacific segment. The Company also recorded severance and other exit costs in the Transit Packaging segment.
Current report
Interest expense and interest income
Current report
For the three and six months ended June 30, 2025 compared to 2024, interest expense decreased from $112 to $103 and $225 to $202. During the same periods interest income decreased from $16 to $14 and $36 to $27. The decrease in both interest expense and interest income was due to lower borrowings, cash balances and interest rates.
Current report
On July 4, 2025, the U.S. government enacted tax reform, commonly referred to as the One Big Beautiful Bill Act ("OBBB"). OBBB amends U.S. tax law, including provisions related to bonus depreciation, interest expense limitation, research and development, global intangible low-taxed income, foreign derived intangible income and base erosion and anti-abuse tax. The Company is still evaluating the impact of the OBBB, however, does not currently believe it will have a material impact on its effective tax rate in the current year.
Current report
Cash used for financing activities increased from $70 for the six months ended June 30, 2024 to $427 for the six months ended June 30, 2025 primarily due to the repayment of $875 4.75% senior notes in 2025, partially offset by the issuance of $700 5.875% senior notes in the second quarter of 2025 and $209 of common stock repurchases.
Current report
(3) Includes payables of $16 and $20 due to non-guarantor subsidiaries as of June 30, 2025 and December 31, 2024
Removed paragraphs (7)
Previous report
Net sales increased primarily due to $71 from the pass-through of higher aluminum costs and 3% higher volumes, partially offset by unfavorable foreign currency translation of $13.
Previous report
Segment income improved due to higher volumes and improved manufacturing performance.
Previous report
Net sales increased primarily due to $22 from the pass-through of higher aluminum costs and 5% higher volumes, partially offset by unfavorable foreign currency translation of $8.
Previous report
Net sales was comparable to 2024 with 7% lower volumes offset by $11 from the pass-through of higher aluminum costs.
Previous report
Net sales increased primarily due to 16% higher food can volumes.
Previous report
Cash from financing activities decreased from an inflow of $9 for the three months ended March 31, 2024 to an outflow of $153 for the three months ended March 31, 2025 primarily due to $203 of common stock repurchases, partially offset by higher short term borrowings in the first quarter of 2025.
Previous report
(3) Includes payables of $20 due to non-guarantor subsidiaries as of both March 31, 2025 and December 31, 2024
Reworded paragraphs (34)
Previous wording
The following discussion presents management's analysis of the results of operations for the three months ended March 31, 2025 compared to 2024 and changes in financial condition and liquidity from December 31, 2024. This discussion should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, along with the consolidated financial statements and related notes included in and referred to within this report.
Current wording
The following discussion presents management's analysis of the results of operations for the three and six months ended June 30, 2025 compared to 2024 and changes in financial condition and liquidity from December 31, 2024. This discussion should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, along with the consolidated financial statements and related notes included in and referred to within this report.
Previous wording
Global industry demand for beverage cans has been growing in recent years in North America, Brazil, Europe, and Southeast Asia. Growth has been driven by new product introductions, customer and consumer focus on the sustainability benefits of aluminum and population and GDP growth in many markets. To meet such demand, the Company made long-term investments of approximately $2,000 for new manufacturing facilities and additional production lines in existing facilities since 2019. Based on current market conditions, the Company expects to have the ability to meet expected demand growth with its current installed capital base and expects capital spending to be approximately $450 in 2025.
Current wording
Global industry demand for beverage cans has been growing in recent years in North America, Brazil and Europe. Growth has been driven by new product introductions, customer and consumer focus on the sustainability benefits of aluminum and population and GDP growth in many markets. To meet such demand, the Company made long-term investments of approximately $2,000 for new manufacturing facilities and additional production lines in existing facilities since 2019. Based on current market conditions, the Company expects to have the ability to meet expected demand growth with its current installed capital base and expects capital spending to be approximately $450 in 2025.
Previous wording
The foreign currency translation impacts referred to in the discussion below were primarily due to changes in the Mexican peso in the Company's Americas Beverage segment, the euro in the Company's European Beverage segment, and the Thai baht in the Company's Asia Pacific segment. The Company's Transit Packaging segment is a global business and the foreign currency translation impacts referred to in the discussion below are primarily related to the euro, the Indian rupee, the Mexican peso and the Brazilian real.
Current wording
European Beverage segment, and the Thai baht in the Company's Asia Pacific segment. The Company's Transit Packaging segment is a global business and the foreign currency translation impacts referred to in the discussion below are primarily related to the euro, the Indian rupee, the Mexican peso and the Brazilian real.
Previous wording
Net sales increased primarily due to $94 from the pass-through of higher material costs, higher beverage can volumes in the Americas and European Beverage segments and higher North American food can volumes, partially offset by unfavorable foreign currency translation of $31 and lower volumes in the Transit Packaging segment.
Current wording
Net sales increased primarily due to $214 from the pass-through of higher material costs, higher beverage can volumes in the Americas and European Beverage segments and higher North American food can volumes, partially offset by lower volumes in Asia Pacific and the Transit Packaging segment.
Previous wording
Segment income increased primarily due to improved manufacturing performance, including savings realized as part of prior year restructuring actions.
Current wording
Segment income increased primarily due to improved manufacturing performance and higher volumes.
Previous wording
Segment income improved due to higher volumes.
Current wording
Segment income improved primarily due to higher volumes.
Previous wording
In June 2022, the Company's Yangon, Myanmar beverage can plant was temporarily idled due to currency restrictions, which resulted in the inability to source U.S. dollars required to procure U.S. dollar raw materials. The Company began production on a limited basis in 2023 and had net sales of $1 for the three months ended March 31, 2025. Property, plant and equipment in Myanmar as of March 31, 2025 was $48, including $23 of land and buildings and $25 of machinery and equipment. The Company will continue to monitor the economic conditions and the impact to its business in Myanmar, including any alternative uses for its machinery and equipment.
Current wording
In June 2022, the Company's Yangon, Myanmar beverage can plant was temporarily idled due to currency restrictions, which resulted in the inability to source U.S. dollars required to procure U.S. dollar raw materials. The Company began production on a limited basis in 2023 and had net sales of $2 for the six months ended June 30, 2025. Property, plant and equipment in Myanmar as of June 30, 2025 was $48, including $23 of land and buildings and $25 of machinery and equipment. The Company will continue to monitor the economic conditions and the impact to its business in Myanmar, including any alternative uses for its machinery and equipment.
Previous wording
Net sales decreased primarily due to the pass-through of $12 lower material costs, $13 lower equipment volumes and unfavorable foreign currency translation of $14, partially offset by improved steel and plastic consumable volumes.
Current wording
For the three and six months ended June 30, 2025 compared to 2024, Net sales decreased primarily due to $22 and $38 of lower equipment volumes and the pass-through of lower material costs of $10 and $22, partially offset by higher steel and plastic strap volumes.
Previous wording
Segment income decreased primarily due to unfavorable product mix, driven by lower equipment volumes which have higher margins, and unfavorable foreign currency translation of $2.
Current wording
Segment income decreased primarily due to unfavorable product mix, driven by lower equipment volumes which have higher margins, partially offset by improved cost performance.
Previous wording
Segment income increased primarily due to higher food can volumes and improved manufacturing performance, including lower start-up costs. Additionally, the three months ended Mach 31, 2024, included a steel repricing loss of $8.
Current wording
Segment income increased primarily due to higher food can volumes and improved manufacturing performance, including lower start-up costs. Additionally, the six months ended June 30, 2024, included a steel repricing loss of $8.
Previous wording
Corporate and unallocated expenses decreased for the three months ended March 31, 2025 compared to 2024, primarily due to lower property insurance costs. The three months ended March 31, 2024, included a charge of $8 related to a facility fire.
Current wording
Corporate and unallocated expenses increased for the three and six months ended June 30, 2025 compared to 2024, primarily due to higher employee compensation, including stock compensation. Additionally, the six months ended June 30, 2024, included a charge of $8 for property insurance deductible related to a facility fire.
Previous wording
For the three months ended March 31, 2024, restructuring and other net charges of $23 primarily included business reorganization activities in the Company's European Beverage segment. The Company continues to review its costs structure and may record additional restructuring charges in the future.
Current wording
The three and six months ended June 30, 2024, restructuring and other net charges of $17 and $40 primarily included business reorganization activities in the Company's European Beverage and Other segments.
Previous wording
For the three months ended March 31, 2025 compared to 2024, other pension and postretirement decreased from $11 to $5, primarily due to the transfer of portions of the Company's U.S. and Canadian defined benefit pension liabilities through the purchase of group annuity insurance contracts using pension plan assets in the third quarter of 2024.
Current wording
For the three and six months ended June 30, 2025 compared to 2024, other pension and postretirement decreased from a charge of $13 to a benefit of $1 and a charge of $24 to a charge of $4, primarily due to the transfer of portions of the Company's U.S. and Canadian defined benefit pension liabilities through the purchase of group annuity insurance contracts using pension plan assets in the third quarter of 2024.
Previous wording
The decrease in the effective tax rate for the three months ended March 31, 2025 compared to 2024, was primarily due to an income tax benefit of $22 recorded in the first quarter of 2025 after an internal reorganization which resulted in the release of deferred tax liabilities related to the foreign currency impact of certain intercompany debt instruments that were designated as hedges of the Company's net investment in a euro-based subsidiary, as well as the geographic distribution of the Company's world-wide earnings.
Current wording
The increase in the effective tax rate for the three months ended June 30, 2025 compared to 2024, was primarily due to a benefit of $16 taken in 2024 related to the release of a valuation allowance resulting from improved profitability in a European subsidiary. In addition, the Company recorded an income tax benefit of $22 in the first quarter of 2025 after an internal reorganization which resulted in the release of deferred tax liabilities related to the foreign currency impact of certain intercompany debt instruments that were designated as hedges of the Company's net investment in a euro-based subsidiary.
Previous wording
For the three months ended March 31, 2025 compared to 2024, net income from noncontrolling interests increased from $26 to $34 primarily due to higher earnings in the Company's beverage can operations in Brazil.
Current wording
For the three and six months ended June 30, 2025 compared to 2024, net income attributable to noncontrolling interests increased from $33 to $35 and $59 and $69 primarily due to higher earnings in the Company's beverage can operations in Brazil.
Previous wording
Cash from operating activities increased from an outflow of $102 for the three months ended March 31, 2024 to an inflow of $14 for the three months ended March 31, 2025, primarily due to higher income from operations.
Current wording
Cash from operating activities increased from $343 for the six months ended June 30, 2024 to $463 for the six months ended June 30, 2025, primarily due to higher income from operations.
Previous wording
Days sales outstanding for trade receivables, excluding the impact of unbilled receivables, decreased from 32 days as of March 31, 2024 to 31 days as of March 31, 2025.
Current wording
Days sales outstanding for trade receivables, excluding the impact of unbilled receivables, decreased from 34 days as of June 30, 2024 to 33 as of June 30, 2025.
Previous wording
Inventory turnover decreased from 63 days at March 31, 2024 to 57 days at March 31, 2025 primarily due to higher average inventory levels carried into the first quarter of 2024.
Current wording
Inventory turnover decreased from 60 days at June 30, 2024 to 57 days at June 30, 2025.
Previous wording
Days outstanding for trade payables increased from 83 days at March 31, 2024 to 87 days at March 31, 2025 primarily due to higher raw material costs and efforts to rebuild inventory in certain businesses.
Current wording
Days outstanding for trade payables increased from 87 days at June 30, 2024 to 92 days at June 30, 2025 primarily dueto higher raw material costs and efforts to rebuild inventory in certain businesses.
Previous wording
Cash from investing activities increased from an outflow of $81 for the three months ended March 31, 2024 to an inflow of $1 for the three months ended March 31, 2025, primarily due to lower capital expenditures.
Current wording
Cash used for investing activities decreased from $143 for the six months ended June 30, 2024 to $44 for the six months ended June 30, 2025, primarily due to lower capital expenditures.
Previous wording
As of March 31, 2025, $650 of the Company's $779 of cash and cash equivalents was located outside the U.S. The Company is not currently aware of any legal restrictions under foreign law that materially impact its access to cash held outside the U.S. The Company funds its cash needs in the U.S. through a combination of cash flows from operations, dividends from certain foreign subsidiaries, borrowings under its revolving credit facility and the acceleration of cash receipts under its receivable securitization and factoring facilities. Of the cash and cash equivalents located outside the U.S., $266 was held by subsidiaries for which earnings are considered indefinitely reinvested.
Current wording
As of June 30, 2025, $798 of the Company's $936 of cash and cash equivalents was located outside the U.S. The Company is not currently aware of any legal restrictions under foreign law that materially impact its access to cash held outside the U.S. The Company funds its cash needs in the U.S. through a combination of cash flows from operations, dividends from certain foreign subsidiaries, borrowings under its revolving credit facility and the acceleration of cash receipts under its receivable securitization and factoring facilities. Of the cash and cash equivalents located outside the U.S., $266 was held by subsidiaries for which earnings are considered indefinitely reinvested.
Previous wording
The Company's revolving credit agreements provide capacity of $1,650 and as of March 31, 2025, the Company had available capacity of $1,620. The Company could have borrowed this amount at March 31, 2025 and still have been in compliance with its leverage ratio covenants.
Current wording
The Company's revolving credit agreements provide capacity of $1,650 and as of June 30, 2025, the Company had available capacity of $1,619. The Company could have borrowed this amount at June 30, 2025 and still have been in compliance with its leverage ratio covenants.
Previous wording
The Company’s revolving credit facilities and term loan facilities also contain a total leverage ratio covenant. The leverage ratio is calculated as total net debt divided by Consolidated EBITDA (as defined in the credit agreement). Total net debt is defined in the credit agreement as total debt less cash and cash equivalents. Consolidated EBITDA is calculated as the sum of, among other things, net income attributable to Crown Holdings, net income attributable to certain of the Company's subsidiaries, income taxes, interest expense, depreciation and amortization, and certain non-cash charges. The Company’s total net leverage ratio of 2.6 to 1.0 at March 31, 2025 was in compl iance with the covenant requiring a ratio no greater than 4.5 to 1.0. The ratio is calculated at the end of each quarter using debt and cash balances as of the end of the quarter and Consolidated EBITDA for the most recent twelve months. Failure to meet the financial covenant could result in the acceleration of any outstanding amounts due under the revolving credit facilities and term loan facilities.
Current wording
The Company’s revolving credit facilities and term loan facilities also contain a total leverage ratio covenant. The leverage ratio is calculated as total net debt divided by Consolidated EBITDA (as defined in the credit agreement). Total net debt is defined in the credit agreement as total debt less cash and cash equivalents. Consolidated EBITDA is calculated as the sum of, among other things, net income attributable to Crown Holdings, net income attributable to certain of the Company's subsidiaries, income taxes, interest expense, depreciation and amortization, and certain non-cash charges. The Company’s total net leverage ratio of 2.5 to 1.0 at June 30, 2025 was in compl iance with the covenant requiring a ratio no greater than 4.5 to 1.0. The ratio is calculated at the end of each quarter using debt and cash balances as of the end of the quarter and Consolidated EBITDA for the most recent twelve months. Failure to meet the financial covenant could result in the acceleration of any outstanding amounts due under the revolving credit facilities and term loan facilities.
Previous wording
Long-term debt payments due in the next twelve months include the Company's $875 million 4.75% senior notes and its €500 million ($541 million at March 31, 2025) 2.875% senior notes both due in February 2026. The Company expects to have sufficient liquidity to refinance the senior notes or repay them at maturity.
Current wording
Long-term debt payments due in the next twelve months include the Company's €500 million ($589 million at June 30, 2025) 2.875% senior notes due in February 2026. The Company expects to have sufficient liquidity to refinance the senior notes or repay them at maturity.
Previous wording
As of March 31, 2025, the Company had approximately $84 of capital commitments primarily related to Americas Beverage and European Beverage. The Company expects to fund these commitments primarily through cash flows from operations.
Current wording
As of June 30, 2025, the Company had approximately $127 of capital commitments primarily related to Americas Beverage and European Beverage. The Company expects to fund these commitments primarily through cash flows from operations.
Previous wording
(1) Includes $15 of expense related to intercompany interest with non-guarantor subsidiaries
Current wording
(1) Includes $31 of expense related to intercompany interest with non-guarantor subsidiaries
Previous wording
(1) Includes payables of $6,171 and $5,905 due to non-guarantor subsidiaries as of March 31, 2025 and December 31, 2024
Current wording
(1) Includes payables of $6,232 and $5,905 due to non-guarantor subsidiaries as of June 30, 2025 and December 31, 2024
Previous wording
(1) Includes $113 of sales to non-guarantor subsidiaries
Current wording
(1) Includes $222 of sales to non-guarantor subsidiaries
Previous wording
(2) Includes $11 of gross profit related to sales to non-guarantor subsidiaries
Current wording
(2) Includes $22 of gross profit related to sales to non-guarantor subsidiaries
Previous wording
(3) Includes $2 of expense related to intercompany interest and technology royalties with non-guarantor subsidiaries
Current wording
(3) Includes $4 of expense related to intercompany interest and technology royalties with non-guarantor subsidiaries
Previous wording
(1) Includes receivables of $34 and $32 due from non-guarantor subsidiaries as of March 31, 2025 and December 31, 2024
Current wording
(1) Includes receivables of $36 and $32 due from non-guarantor subsidiaries as of June 30, 2025 and December 31, 2024
Previous wording
(2) Includes receivables of $211 and $167 due from non-guarantor subsidiaries as of March 31, 2025 and December 31, 2024
Current wording
(2) Includes receivables of $248 and $167 due from non-guarantor subsidiaries as of June 30, 2025 and December 31, 2024
Previous wording
(4) Includes payables of $939 and $2,242 due to non-guarantor subsidiaries as of March 31, 2025 and December 31, 2024
Current wording
(4) Includes payables of $943 and $2,242 due to non-guarantor subsidiaries as of June 30, 2025 and December 31, 2024
Previous wording
Results of Operations” under the caption “Forward Looking Statements” and is incorporated herein by reference. Some of the factors are also discussed elsewhere in this Form 10-Q (including under Item 1A of Part II below) and in prior Company filings with the SEC. In addition, other factors have been or may be discussed from time to time in the Company's SEC filings.
Current wording
A discussion of important factors that could cause the actual results of operations or financial condition of the Company to differ from expectations has been set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 within Part II, Item 7: “Management's Discussion and Analysis of Financial Condition and Results of Operations” under the caption “Forward Looking Statements” and is incorporated herein by reference. Some of the factors are also discussed elsewhere in this Form 10-Q (including under Item 1A of Part II below) and in prior Company filings with the SEC. In addition, other factors have been or may be discussed from time to time in the Company's SEC filings.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
The foreign currency translation impacts referred to in the discussion below were primarily due to changes in the Mexican peso in the Company's Americas Beverage segment, the euro and the British pound in the Company's
Current report — wording carried from elsewhere
Three months ended June 30, 2025 compared to 2024
Current report — wording carried from elsewhere
The Company continues to review its costs structure and may record additional restructuring charges in the future.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
A discussion of important factors that could cause the actual results of operations or financial condition of the Company to differ from expectations has been set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 within Part II, Item 7: “Management's Discussion and Analysis of Financial Condition and