Financial Analysis

22. Contingencies Ball is subject to numerous lawsuits, claims or proceedings arising out of the ordinary course of business, including actions related to product liability; personal injury; the use and performance of company products; warranty matters; patent, trademark or other intellectual property infringement; contractual liability; the conduct of the companys business; tax reporting in domestic and non-U.S. jurisdictions; workplace safety and environmental and other matters. The company has also been identified as a potentially responsible party (PRP) at several waste disposal sites under U.S. federal and related state environmental statutes and regulations and may have joint and several liability for any investigation and remediation costs incurred with respect to such sites. In addition, the company has received claims alleging that employees in certain plants have suffered damages due to exposure to alleged workplace hazards. Some of these lawsuits, claims and proceedings involve substantial amounts, including as described below, and some of the environmental proceedings involve potential monetary costs or sanctions that may be material. Ball has denied liability with respect to many of these lawsuits, claims and proceedings and is vigorously defending such lawsuits, claims and proceedings. The company carries various forms of commercial, property and casualty, and other forms of insurance; however, such insurance may not be applicable or adequate to cover the costs …

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17. Employee Benefit Obligations December 31, ($ in millions) 2025 2024 Underfunded defined benefit pension liabilities $ 191 $ 263 Less: Current portion (19) (20) Long-term defined benefit pension liabilities 172 243 Long-term retiree medical liabilities 77 79 Deferred compensation plans 178 206 Other 72 49 $ 499 $ 577 The companys defined benefit plans for salaried and hourly employees in North America, Sweden, Switzerland, the U.K., Germany and Ireland, provide pension benefits based on employee compensation and years of service. Plans for North American hourly employees provide benefits based on fixed rates for each year of service. While the German, Swedish and certain U.S. plans are not funded, the company maintains liabilities, and annual additions to such liabilities are generally tax-deductible. With the exception of the unfunded German, Swedish and certain U.S. plans, the companys policy is to fund the defined benefit plans in amounts at least sufficient to satisfy statutory funding requirements, taking into consideration deductibility under existing tax laws and regulations. The company closed its pension plans to all non-unionized new entrants in the United States effective for anyone hired after December 31, 2021. Anyone employed by Ball prior to that date is unaffected by this change. Defined Benefit Pension Plans Amounts recognized on the consolidated balance sheets for the funded status of the companys defined benefit pension plans consisted of: Year Ended Dec …

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($ in millions) Point in Time Over Time Total 2025 $ 2,317 $ 10,844 $ 13,161 2024 2,454 9,341 11,795 2023 2,352 9,710 12,062 …

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19. Stock-Based Compensation Programs The company has shareholder-approved stock plans under which options and stock-settled appreciation rights (SSARs) have been granted to employees at the market value of the companys stock on the date of grant. In general, options and SSARs are exercisable in four equal installments commencing one year from the date of grant and terminating 10 years from the date of grant. All disclosures within this note, unless otherwise specified, include impacts from activities associated with grants to employees of the historical aerospace business through the date of the sale. A summary of outstanding stock option and SSAR activity for the year ended December 31, 2025, follows: Number of Weighted Average Shares Exercise Price Beginning of year 8,912,604 $ 56.87 Granted 549,131 51.38 Exercised (1,016,962) 35.73 Canceled/forfeited (805,580) 59.43 Expired (466,995) 69.02 End of period 7,172,198 58.37 Vested and exercisable, end of year 5,722,467 $ 58.24 Reserved for future grants 9,551,038 The weighted average remaining contractual term for all options and SSARs outstanding at December 31, 2025, was 4.4 years and the aggregate intrinsic value (difference in exercise price and closing price at that date) was $35 million. The weighted average remaining contractual term for options and SSARs vested and exercisable at December 31, 2025, was 3.5 years and the aggregate intrinsic value was $35 million. The company received $16 million, $23 million and $26 mil …

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21. Financial Instruments and Risk Management Policies and Procedures The company employs established risk management policies and procedures, which seek to reduce the companys commercial risk exposure to fluctuations in commodity prices, interest rates, currency exchange rates, net investments in foreign operations and prices of the companys common stock with regard to common share repurchases and the companys deferred compensation stock plan. However, there can be no assurance that these policies and procedures will be successful. Although the instruments utilized involve varying degrees of credit, market and interest risk, the counterparties to the agreements are expected to perform fully under the terms of the agreements. The company monitors counterparty credit risk, including lenders, on a regular basis, but Ball cannot be certain that all risks will be discerned or that its risk management policies and procedures will always be effective. Additionally, in the event of default under the companys master derivative agreements, the non-defaulting party has the option to set off any amounts owed with regard to open derivative positions. Commodity Price Risk - The company manages commodity price risk in connection with market price fluctuations of aluminum through two different methods. First, the company enters into container sales contracts that include aluminum-based pricing terms which generally reflect the same price fluctuations under commercial purchase contracts for …

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16. Taxes on Income The amount of earnings before income taxes is: Years Ended December 31, ($ in millions) 2025 2024 2023 U.S. $ 303 $ (8) $ 58 Non-U.S. 825 543 556 $ 1,128 $ 535 $ 614 The provision (benefit) for income tax expense is: Years Ended December 31, ($ in millions) 2025 2024 2023 Current U.S. $ 37 $ 5 $ (1) State and local 9 (6) 4 Non-U.S. 134 184 169 Total current 180 183 172 Deferred U.S. 29 6 (32) State and local 11 (11) 5 Non-U.S. 20 (45) 1 Total deferred 60 (50) (26) Tax provision (benefit) $ 240 $ 133 $ 146 The following table is a reconciliation of the U.S. federal statutory rate of 21 percent to the companys effective tax rate for the year ended December 31, 2025 in accordance with the guidance of the new income tax disclosures: Year Ended December 31, 2025 ($ in millions) Amount Percent U.S. federal statutory tax rate $ 237 21.0 % State and local income taxes, net of federal income tax effect (a) 14 1.3 Foreign tax effects: Brazil: Effect of currency exchange gains and losses 19 1.7 Tax holidays (37) (3.3) Other 19 1.7 Mexico: Effect of currency exchange gains and losses (14) (1.3) Other 20 1.8 Netherlands: Sale of the Saudi Arabian business (23) (2.0) Other 7 0.6 Other foreign jurisdictions 8 0.7 Tax credits (17) (1.5) Other adjustments 7 0.6 Total tax provision and effective tax rate $ 240 21.3 % (a) The states that contribute to the majority (greater than 50 percent of the tax effect in this category) include California, Pennsylvania, Maryland, Alabama …

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14. Lease s The components of lease expense were as follows: December 31, ($ in millions) 2025 2024 Operating lease expense $ (97) $ (98) Financing lease expense (2) (4) Variable lease expense (14) (11) Sublease income 1 2 Net lease expense $ (112) $ (111) Supplemental cash flow information related to leases was as follows: December 31, ($ in millions) 2025 2024 Cash paid for amounts included in the measurements of lease liabilities: Operating cash outflows for operating leases $ (101) $ (97) Financing cash outflows for finance leases (3) (3) ROU assets obtained in exchange for: Operating lease obligations 102 53 Finance lease obligations 2 24 Supplemental balance sheet information related to leases was as follows: December 31, ($ in millions) Balance Sheet Location 2025 2024 Operating leases: Operating lease ROU asset Other assets $ 355 $ 334 Current operating lease liabilities Other current liabilities 78 79 Noncurrent operating lease liabilities Other liabilities 283 265 Finance leases: Finance lease ROU assets, net Property, plant and equipment, net 7 31 Current finance lease liabilities Short-term debt and current portion of long-term debt 2 26 Noncurrent finance lease liabilities Long-term debt 6 5 Weighted average remaining lease term and weighted average discount rate for the companys leases were as follows: December 31, 2025 2024 Weighted average remaining lease term in years: Operating leases 7 7 Finance leases 5 1 Weighted average discount rate: Operating leases 4. …

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15. Debt and Interest Costs Long-term debt outstanding and interest rates in effect, along with short-term debt outstanding, consisted of the following: December 31, ($ in millions) 2025 2024 Senior Notes 5.25% due July 2025 $ $ 189 4.875% due March 2026 256 1.50%, euro denominated, due March 2027 646 569 6.875% due March 2028 750 6.00% due June 2029 1,000 1,000 2.875% due August 2030 1,300 1,300 3.125% due September 2031 850 850 4.25%, euro denominated, due July 2032 998 5.50% due September 2033 750 Senior Credit Facility (at variable rates) U.S. dollar revolver due June 2030 Multi-currency revolver due June 2030 Term A loan due June 2027 (5.51% - 2025) 625 Term A loan due November 2030 (4.97% - 2025) 1,500 Finance lease obligations 8 7 Other (including debt issuance costs) (59) (43) 6,993 5,503 Less: Current portion of long-term debt (2) (191) Long-term debt $ 6,991 $ 5,312 Short-term debt Current portion of long-term debt $ 2 $ 191 Short-term finance leases 24 Short-term committed loans 109 Short-term uncommitted credit facilities 19 37 Short-term debt and current portion of long-term debt $ 21 $ 361 On November 25, 2025, Ball refinanced its existing senior credit facilities that were previously amended in 2022, which included redeeming the outstanding obligation of $625 million on its term loan due June 2027. The companys senior credit facilities include a $1.50 billion term loan and long-term multi-currency revolving facilities that mature in November 2030, which provide …

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Recently Adopted Accounting Standards Income Tax Disclosures In 2023, new guidance was issued by the FASB with the goal of providing financial statement users with more information in the income tax rate reconciliation table and regarding income taxes paid. Ball adopted all required disclosures effective 2025, on a prospective basis, in Note 16 . New Accounting Guidance and Disclosure Requirements Improvements to Accounting for Internal-Use Software In 2025, new guidance was issued by the Financial Accounting Standards Board (FASB) with the goal to better align accounting with how internal-use software is developed. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to adopt the guidance on a prospective basis in 2028. Measurement of Credit Losses for Accounts Receivable and Contract Assets In 2025, amended guidance was issued by the FASB with the goal of improving efficiencies associated with the measurement of credit losses for accounts receivable and contract assets by allowing entities to elect a practical expedient for measurement. The company is assessing the impact that the adoption of this new guidance will have on its consolidated financial statements and expects to adopt the guidance on a prospective basis in 2026. Disaggregation of Income Statement Expenses In 2024, new guidance was issued by the FASB with the goal of providing financial statement users with more expense informat …

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6. Business Consolidation and Other Activities 2025 During 2025, the company recorded income of $41 million, primarily composed of the $81 million gain on the sale of the Saudi Arabia business, and insurance proceeds for replacement costs related to the 2023 fire at the companys Verona, Virginia, extruded aluminum slug manufacturing facility, partially offset by costs for previously announced facility closures and the loss related to the aluminum cups business transaction. See Note 4 for further details on the Saudia Arabia and aluminum cups transactions. 2024 During 2024, the company recorded charges of $420 million primarily related to a $233 million noncash charge to adjust the carrying value of the aluminum cups business to its estimated fair value less cost to sell, $161 million facility closure costs and $34 million of costs for employee severance, employee benefits and other related items resulting from the company restructuring its operating model. The charges were partially offset by income of $44 million from the insurance proceeds for replacement costs related to the 2023 fire at the companys Verona, Virginia extruded aluminum slug manufacturing facility. See Note 4 for further details on the aluminum cups impairment. 2023 During 2023, the company recorded charges of $133 million primarily related to facility closure costs of $94 million, a $22 million foreign exchange loss associated with the companys Argentina business and $21 million transaction costs related to …

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5. Revenue from Contracts with Customers The following table disaggregates the companys net sales based on the timing of transfer of control: ($ in millions) Point in Time Over Time Total 2025 $ 2,317 $ 10,844 $ 13,161 2024 2,454 9,341 11,795 2023 2,352 9,710 12,062 The company did not have any contract assets at December 31, 2025, 2024, or 2023. The opening and closing balances of the companys current and noncurrent contract liabilities are as follows: Contract Contract Liabilities Liabilities ($ in millions) (Current) (Noncurrent) Balance at December 31, 2023 $ 114 3 Increase (decrease) (64) (1) Balance at December 31, 2024 $ 50 $ 2 Increase (decrease) 24 Balance at December 31, 2025 $ 74 $ 2 During the year ended December 31, 2025, contract liabilities increased by $24 million, which is net of cash received of $91 million and amounts recognized as sales of $67 million, the majority of which related to current contract liabilities. The amount of sales recognized during the year ended December 31, 2025, that was included in the companys opening contract liabilities balance was $50 million, all of which related to current contract liabilities. The difference between the opening and closing balances of the companys contract liabilities primarily results from timing differences between the companys performance and the customers payments. Current contract liabilities are classified within other current liabilities on the consolidated balance sheets and noncurrent contract liabil …

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3. Business Segment Information Balls operations are organized and reviewed by management along its product lines and geographical areas and presented in the three reportable segments outlined below. Beverage packaging, North and Central America : Consists of operations in the U.S., Canada and Mexico that manufacture and sell aluminum beverage containers throughout those countries. Beverage packaging, EMEA : Consists of operations in numerous countries throughout Europe, as well as Egypt and Turkey, that manufacture and sell aluminum beverage containers throughout those countries. Beverage packaging, South America : Consists of operations in Brazil, Argentina, Paraguay and Chile that manufacture and sell aluminum beverage containers throughout most of South America. As presented in the tables below, Other consists of a non-reportable operating segment (beverage packaging, other) that manufactures and sells aluminum beverage containers in India and Myanmar; a non-reportable operating segment that manufactures and sells extruded aluminum aerosol containers and recloseable aluminum bottles across multiple consumer categories as well as aluminum slugs (personal & home care) throughout North America, South America, and Europe; undistributed corporate expenses; and intercompany eliminations and other business activities. On August 27, 2025, the company sold 41 percent of its 51 percent ownership interest in Ball United Arab Can Manufacturing Company, which resulted in Ball deco …

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18. Shareholders Equity At December 31, 2025, the company had 1.1 billion shares of common stock and 15 million shares of preferred stock authorized, both without par value. Preferred stock includes 550,000 authorized but unissued shares designated as Series A Junior Participating Preferred Stock. In the second quarter of 2025, in a privately negotiated transaction, Ball entered into an accelerated share repurchase agreement to buy $250 million of its common shares using cash on hand and available borrowings. In the third quarter of 2025, Ball settled the agreement and received a total of 4.44 million shares with the average price per share paid of $56.30. On January 29, 2025, the Board of Directors approved the repurchase by the company of up to a total of $4.00 billion in shares of its common stock through the end of 2027. This repurchase authorization replaced all previous authorizations. Under its ongoing share repurchase program, the company repurchased $1.32 billion, $1.71 billion and $3 million of its shares during the years ended December 31, 2025, 2024, and 2023, respectively. Accumulated Other Comprehensive Earnings (Loss) The activity related to accumulated other comprehensive earnings (loss) was as follows: ($ in millions) Currency Translation (Net of Tax) Pension and Other Postretirement Benefits (Net of Tax) (a) Derivatives Designated as Hedges (Net of Tax) Accumulated Other Comprehensive Earnings (Loss) Balance at December 31, 2023 $ (380) $ (537) $ 1 $ (916) O …

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