Despite a soft Q4, Crown Holdings marches on with a steady financial growth in FY25

Philadelphia-based sustainable aluminium beverage can manufacturer, Crown Holdings, Inc., has released its fourth quarter (Q4) and full FY25 financial results, demonstrating record achievements in 2025. These were guided by better efficiency, operational optimisation, cost discipline, and strong cash generation across packaging segments, despite lingering cost and regional volume pressures. 

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Regarding the annual financial performance, Kevin C. Clothier, Senior Vice President and Chief Financial Officer of Crown Holdings, commented, "We had an excellent year in 2025 with adjusted EPS up 22 per cent to USD 7.79 and we generated record adjusted free cash flow of approximately USD 1.15 billion."

Q3 vs Q4 2025 financial results

A softening in profitability was reported in Q4 after a stronger third quarter. Diluted EPS declined to USD 1.31 from USD 1.85, a drop of 29.2 per cent, while adjusted diluted EPS fell to USD 1.74 from USD 2.24, a 22.3 per cent decrease. Income from operations eased to USD 374 million from USD 423 million, marking an 11.6 per cent decline.

Segment income slipped to USD 420 million from USD 490 million, down 14.3 per cent, indicating margin pressure and normalisation after Q3 strength, which was supported by robust European beverage demand, favourable price/mix, and continued margin expansion. 

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Q4 ’25 vs Q4 ’24 financial results

Net sales in Q4 2025 rose to USD 3.13 billion, up from USD 2.9 billion in Q4 2024, marking a 7.7 per cent increase, driven by stronger shipments in the manufacturer’s European Beverage segment, the pass-through of USD 189 million in higher material costs, and a USD 58 million foreign exchange benefit. These gains were partly offset by weaker volumes in the Asia Pacific and Transit Packaging.

Income from operations climbed to USD 374 million, compared with USD 351 million a year earlier, marking a 6.6 per cent increase. However, segment income slipped to USD 420 million from USD 428 million, a 1.9 per cent decline. This is owing to the higher European Beverage volumes, offset by softer performance in Latin America and Transit Packaging.

Net income attributable to Crown Holdings saw a steep decline to USD 150 million, down from USD 358 million in Q4 2024, a 58.1 per cent decrease, largely due to the absence of the USD 275 million one-time gain from the Eviosys equity investment sale recorded last year.

Reported diluted EPS declined to USD 1.31 from USD 3.02, a 56.6 per cent drop, while adjusted diluted EPS improved to USD 1.74 from USD 1.59, reflecting a 9.4 per cent increase, indicating stronger underlying operating performance excluding exceptional items. 

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2025 annual financial performance and year-on-year study

On an annual basis, Crown reported net sales of USD 12.37 billion, compared to 11.8 billion in 2024, marking an increase of 4.78 per cent year-on-year (Y-o-Y). Income from operations rose to USD 1.55 billion, compared with USD 1.42 billion a year earlier, rising 9.44 per cent. Segment income improved as well, reaching USD 1.78 billion from USD 1.65 billion (up 8.45 per cent Y-o-Y), reflecting higher shipment volumes and better global manufacturing performance across its portfolio. Net income attributable to Crown Holdings recorded a steep increase to USD 738 million in 2025 from USD 424 million in 2024, indicating a staggering 74 per cent increase.

The main earnings driver was Americas Beverage that benefited from sustained demand for aluminium beverage cans and expanding capacity utilisation, fetching USD 1.03 billion. It was reinforced by shipments in European Beverage and North American tinplate, accompanied by the USD 507 million pass-through in higher material costs and a foreign exchange tailwind of USD 84 million. These gains were partly offset by softer volumes in the Asia Pacific and Transit Packaging, with earnings of USD 183 million and USD 258 million, respectively.

Reported diluted EPS increased to USD 6.38 from USD 3.55 (up 79.72 per cent Y-o-Y). Adjusted diluted EPS rose by 22 per cent, from USD 6.41 to USD 7.79. Total assets matched liabilities and equity, showing a hike from that of 2024, reaching USD 14.27 billion, up 3.06 per cent from USD 13.85 billion Y-o-Y. 

Crown’s cash generation improved as well, the adjusted EBITDA rising 8 per cent Y-o-Y to USD 2.09 billion in 2025 from 1.94 billion in 2024. Free cash flow of USD 1.15 billion enabled further debt reduction and better leverage, bringing about the long-term adjusted net leverage ratio of 2.5x (from 2.7x in 2024), the lowest in over 15 years.

Crown Holdings returned USD 625 million to shareholders via dividends and share repurchases. It reduced net debt to USD 5.2 billion, which was less than USD 5.29 billion in the previous FY by 1.63 per cent.  

Compared with the 2024 records, the aluminium beverage can manufacturer achieved higher earnings, stronger operating margins, improved pricing realisation, and more efficient cost management, underscoring a structurally stronger financial position.

2026 Outlook

Anticipating stronger financial resilience and improved margin stability heading into 2026, Clothier shared a 2026 outlook that the expected first quarter adjusted diluted earnings per share is within the range of USD 1.70 to USD 1.80.

"We expect another strong year in 2026 with adjusted earnings per share between USD 7.90 and USD 8.30 and adjusted free cash flow of approximately USD 900 million. Capital spending to support our growth objectives is currently estimated at USD 550 million and includes capacity expansions and facility upgrades in Brazil, Greece and Spain," he elaborated. 

Image source: Crown Holdings, Inc., official LinkedIn page

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