Ardagh Metal Packaging (NYSE:AMBP) reported third-quarter results that exceeded its guidance, supported by shipment growth in Europe, favorable category mix in North America and resilient demand for beverage cans across major markets.
Chief Executive Officer Oliver Graham said global beverage can shipments rose 2% in the quarter, while adjusted EBITDA reached $213 million. European shipments increased 6%, offsetting a decline of less than 1% in the Americas. The company raised its full-year 2026 adjusted EBITDA outlook to a range of $785 million to $795 million.
Europe Drives Volume Growth
European revenue rose 11% to $693 million, or 12% on a constant-currency basis, driven by higher input-cost pass-throughs and volume growth. Shipments increased 6%, with growth across categories including carbonated soft drinks, energy drinks and smaller emerging categories.
Reported beer volumes in Europe declined slightly because of contract resets implemented at the beginning of the year, although Graham said industry beer volumes filled in cans grew in the company’s main markets.
European adjusted EBITDA increased 11% to $91 million. The improvement was driven by input-cost recovery and shipment growth, partly offset by the impact of an IFRS 15 contract asset and somewhat higher operating and overhead costs.
The company said it expects to at least meet its prior expectation for approximately 3% European volume growth for the full year. Looking ahead to 2027, AMP expects European shipment growth of 3% to 4% as it utilizes its remaining capacity.
To address tight regional capacity and customer demand, AMP plans to accelerate and expand previously disclosed investments by adding two can lines at existing facilities in the United Kingdom and Spain. Chief Financial Officer Stefan Schellinger said total growth capital expenditures are expected to rise from $90 million in 2026 to approximately $250 million in 2027 before returning to a more normalized level in 2028. The company expects the projects to support adjusted EBITDA growth beginning in 2028.
Americas Results Reflect Contract Resets
Revenue in the Americas rose 25% to approximately $1 billion, primarily due to the pass-through of higher metal and freight costs. However, segment adjusted EBITDA declined 3% to $122 million, reflecting lower volumes, higher operating and overhead expenses, and lower input-cost recovery compared with the prior-year period.
North American shipments were down less than 1% year over year, an improvement from the first half as the company’s customer portfolio largely offset the impact of previously discussed contract resets. Favorable category mix, particularly strength in specialty-can volumes, provided partial support for profitability.
Graham said demand remains particularly strong in energy drinks, supported by wider distribution and product innovation. Carbonated soft drinks, sparkling water and newer wellness-oriented beverages also remain positive categories for cans, he said. AMP has low-single-digit exposure to beer in North America, where can demand has remained weak.
In Brazil, shipments fell 5% because of customer mix and a contract reset, despite improved industry growth in the quarter. Graham said the company expects moderate shipment growth in the fourth quarter as the summer selling season begins. For 2027, AMP expects moderate growth in Brazil, while maintaining its view that the country’s can market can grow at a mid-single-digit rate over the long term.
Inflation and Cash Flow Outlook
Management said inflationary pressures have increased somewhat since the second quarter, particularly in coatings linked to oil prices. Graham said coatings represent a single-digit percentage of cost of goods sold but can become meaningful when oil prices rise sharply. Freight and energy costs also remain considerations, though the company cited pass-through mechanisms and energy hedging.
AMP said it is more than 80% hedged for European energy needs in 2027 and more than 70% covered for 2028. The company expects inflation, foreign-exchange effects, timing-related metal and freight items, and comparison with strong prior-year shipment growth to weigh on fourth-quarter profitability.
- Total 2026 capital expenditures are expected to be about $240 million.
- Cash interest is forecast at approximately $220 million.
- Lease principal repayments are projected at about $120 million.
- Cash taxes are expected to total approximately $30 million.
- The company expects a small working-capital outflow for the year.
Schellinger said AMP ended the quarter with $736 million of liquidity. Net debt to last-12-month adjusted EBITDA was 5.1 times, compared with 5.2 times a year earlier. On a comparable basis that reflects the fourth-quarter 2025 refinancing of preferred shares, leverage declined from 5.6 times, which the company attributed to adjusted EBITDA growth.
AMP also declared an unchanged quarterly ordinary dividend of $0.10 per share. For 2027, management said it expects moderate year-over-year adjusted EBITDA growth at constant currency, supported by volume gains, operational improvements and cost pass-through mechanisms, despite a more inflationary environment.
About Ardagh Metal Packaging (NYSE:AMBP)
Ardagh Metal Packaging SA (NYSE: AMBP) is a global manufacturer of beverage cans and related metal packaging. The company produces aluminum and steel cans, ends and other components used for beer, soft drinks, energy drinks, sparkling water, juices and other beverages. Its products are supplied to major beverage companies, regional brands and contract manufacturers.
The company operates production and design facilities across Europe, North America and South America, including Brazil. Its packaging is designed to support brand presentation, product protection and efficient distribution, while metal cans can be recycled repeatedly without losing their basic properties.
Ardagh Metal Packaging became a separately listed public company in 2021 through a business combination involving Ardagh Group’s metal packaging business and Gores Holdings V.
