Ardagh Metal Packaging (NYSE:AMBP) reported what CEO Oliver Graham called “strong Q1 results” as adjusted EBITDA rose 15% year-over-year to $179 million, exceeding the company’s guidance range of $160 million to $170 million. Global beverage can shipments fell 1% versus the prior-year quarter, which management said was in line with expectations as the company cycled a strong comparison and faced contract resets in North America.
Europe drove EBITDA beat as input cost recovery and mix improved
Graham attributed the first-quarter outperformance primarily to Europe, where adjusted EBITDA increased 53% year-over-year to $75 million (up 36% on a constant currency basis). He said results benefited from “strong input cost recovery,” favorable volume mix, and a “favorable timing impact from the revaluation of freight cost-related hedging,” alongside the impact of an IFRS 15 contract asset.
On the call, Graham quantified the freight hedge revaluation benefit as “mid-single-digit millions” in the quarter, while cautioning that it could reverse depending on commodity costs and that management was not “overrating it” in forward guidance.
Americas performance mixed; Brazil strength offset by North America headwinds
In the Americas, revenue increased 19% to $879 million, which management said largely reflected the pass-through of higher input costs to customers, including the higher Midwest premium, as well as favorable mix. However, Americas adjusted EBITDA fell 2% year-over-year to $104 million as higher operating and overhead costs and lower input cost recovery outweighed mix benefits.
Brazil was a bright spot, with shipments up 14% in the quarter, which Graham said was driven by above-market performance and improved fixed cost absorption. Management noted that industry data suggested activity softened in March after a strong start in January and February, resulting in a “modest decline” in overall industry volumes for the quarter.
North America was more challenging. Shipments decreased 5%, reflecting expected contract resets, operational impacts from supply chain disruption and adverse weather, and the cycling of an 8% prior-year comparable. Graham said disruptions included both metal supply issues and weather-related operational challenges early in the year, and he expects “further impact into Q2,” although he later said the situation improved significantly in recent weeks.
Responding to a question about the operational impact, Graham estimated the company “lost one to two points of growth” in the quarter across can ends and cans due to weather and metal supply issues. CFO Stefan Schellinger added that the supply chain problems also pressured costs through unfavorable freight lanes and manufacturing inefficiencies, amounting to a “mid- to high single-digit” million impact on quarterly EBITDA.
Guidance reaffirmed; coating costs flagged for second half
Management reaffirmed full-year 2026 adjusted EBITDA guidance of $750 million to $775 million. Graham said expected growth would be supported by operational efficiencies and cost savings, volume growth, and improved category mix. For the second quarter, the company guided adjusted EBITDA to a range of $210 million to $220 million.
While emphasizing the company’s hedged energy position, Graham said Ardagh expects moderate input cost increases in the second half tied to certain direct materials. In Q&A, he told Raymond James analyst Matt Roberts that the potential cost increases were “mostly in our coatings area,” noting pass-through provisions that could flow through in the second half “if oil prices stay very elevated.” Graham added that these dynamics did not change the company’s guidance range.
On geopolitical risk, Graham said the conflict in the Middle East did not have a material impact on first-quarter performance and emphasized that the company has “no manufacturing operations in the Middle East and no significant direct supply chain exposure.” He also said exposure to recent energy price increases is “small” given hedges for 2026 and beyond. Graham provided specific coverage levels for Europe’s energy needs: “over 85%” covered for 2026, “over 75%” for 2027, and “more than 60%” for 2028.
North America seen as transition year; Boston Beer verdict disclosed
Graham reiterated that 2026 is expected to be a “transition year” in North America following contract resets, with a small volume decline and a more favorable second half versus the first half. He said the company expects to return to growth in 2027 “at least in line with the industry” as additional contracted filling locations come online and as the company leverages its portfolio, including exposure to the growing energy category.
Graham also highlighted a legal development in North America. He said that on April 6, 2026, a court entered a jury verdict (pending post-trial motions) related to a lawsuit filed against Boston Beer in 2022 concerning minimum volume purchase requirements. The jury awarded damages of approximately $175 million to Ardagh Metal Packaging, plus prejudgment interest if assessed. Asked about next steps and timing, Graham said the company would not discuss details given ongoing legal proceedings and the potential for an appeal, and he added the verdict does not change the company’s capital allocation priorities at this time.
Liquidity and capital structure; dividend maintained
Schellinger said the company ended the quarter with $488 million of liquidity, “in line with expectations,” and noted there are no near-term bond maturities. He added that the currency mix of debt broadly matches the currency mix of earnings.
During the quarter, the company refinanced its asset-based lending facility, upsizing it to $450 million and extending the maturity to January 2031. Net leverage was 5.7x net debt to last-12-months adjusted EBITDA, compared with 5.5x a year earlier, which Schellinger said reflected the impact of refinancing preferred shares in December; excluding that, leverage metrics “slightly declined” year-over-year.
For 2026 free cash flow components, Schellinger outlined expectations including total capex of $200 million (including growth investments), cash interest of $220 million, lease principal repayments of about $115 million, cash taxes of about $30 million, and a small working capital outflow. He also announced the quarterly ordinary dividend was unchanged at $0.10 per share.
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.
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