Please stand by, your conference is about to begin. Good day and welcome to the ARDA Metal Packaging FA Q2 2026 investor call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Stephen Lyons, please go ahead.

Thank you operator and welcome everybody. Thank you for joining today for ARDA Metal Packaging's second quarter 2026 earnings call, which follows the earlier publication of AMP's earnings release for the second quarter. I'm joined today by Oliver Graham, AMP's Chief Executive Officer, and Stefan Schellinger, AMP's Chief Financial Officer. Before moving to your questions, we will first provide some introductory remarks around AMP's performance and outlook. AMP's earnings release and related materials for the second quarter can be found on AMP's website at ir.rdadmetallpackaging.com. Remarks today will include certain forward-looking statements and include use of non-IFRS financial measures. Actual results can vary materially from such statements. Please review the details of ANP's forward-looking statements disclaimer and reconciliation of non-IFRS financial measures to IFRS financial measures in ANP's earnings release.

I will now turn the call over to Oliver Graham. thanks Stephen so before taking you through our quarterly results I want to recognize that at the beginning of this month we celebrated AMP's 10-year anniversary a significant milestone in the history of the company. AMP was formed from three separate regional businesses and over a 10-year journey we have developed them into one strong integrated global business. We've also transformed the company over this time we've invested well over two billion dollars of growth capital transforming our network our capacity is more than 30 percent higher supporting our customers growth with specialty cans now representing over 50 percent of our volumes our business mix has strongly diversified across both global and regional customers and across a variety of new and growing categories we've invested in our people and our processes enhancing the capabilities and resilience of our business and adjusted EBITDA this year is expected to have approximately doubled compared to our starting position. This has been a great achievement, and I'd like to extend my sincere thanks to our employees, our customers, suppliers, and to all stakeholders that have made this journey possible. AMP is in a strong position, and we look forward to continued success ahead. Our performance year-to-date is testament to the resilience of our business. In an uncertain macroeconomic environment, AMP has delivered strong second quarter adjusted EBITDA growth of 14% versus the prior year, significantly ahead of expectations. Beverage can sales declined by 1% versus the prior year quarter as we cycled strong prior year growth of 5%. Shipments were impacted by contract resets in North America and lower shipments in Brazil, following relative outperformance in the first quarter, partly offset by strong volume growth in Europe. Overall volumes are in line with our expectations and we expect a return to modest global volume growth in the second half, supported by the strength in global beverage can demand, our attractive customer portfolio, and our high exposure to fast-growing beverage categories. Our adjusted EBITDA outperformance in the quarter was primarily driven by Europe, which benefited from favorable input cost recovery and strong volume growth. America's performance was broadly in line with expectations, despite softness in Brazil and metal supply constraints impacting operations in North America at the beginning of the quarter. Metal supply availability in North America significantly improved over the course of the quarter, and we anticipate operating under normal supply conditions during the second half of the year. Now looking at our Q2 results by segment. In Europe, second quarter revenue increased by 13% to $698 million, or by 10% on a constant currency basis, compared with the same period in 2025. This was due to favorable volume mix effects in the pass-through of higher input costs, including higher aluminium prices. Shipments increased by 5% for the quarter, which reflected strong underlying demand as well as the ramp up of newly contracted volumes. We experienced good growth in carbonated soft drinks and in the energy category as well as across our diverse range of smaller growing categories. We also saw an improvement in underlying beer performance in the quarter with our reduction in reported year-over-year beer can shipments reflecting specific contract losses while underlying performance demonstrated greater stability. Second quarter, adjusted EBITDA in Europe increased by 36% versus the prior year to $105 million, strongly ahead of expectations. On a constant currency basis, adjusted EBITDA increased by 33%, primarily due to stronger input cost recovery, including a favourable metal pricing timing impact and volume growth, partly offset by higher operations and overhead costs. Regarding our direct energy exposure, AMP is well covered for its energy needs in 2026 and beyond through its energy hedging program. For 2026, we're over 85% covered for our energy requirements, for 2027, approximately 80%, and we are at nearly 70% coverage for 2028. For 2026, we reaffirm our expectation for volume growth of around 3% in Europe. We don't yet have full beverage packaging industry scanner data for the second quarter, but from the available data, we see very positive overall beverage can consumption trends. Capacity remains tight in the region, and our production volumes in the court have benefited from the network optimization actions that we undertook to allow us to better serve our customers with higher demand can sizes in faster growing categories. We also previously outlined our intention to invest in the growing markets of the UK and Spain. We are pleased to announce we are taking the decision to upsize these projects following constructive commercial engagement with our customers. This will lead to higher capex of $40 million in 2026 compared to our previous guidance and allow us to capitalise on strong industry demand. We're also reviewing the timing of these projects given the strength of demand and we will update on this topic in due course. In the Americas, revenue in the second quarter increased by 21% to just above $1 billion, principally reflecting the pass-through of higher input costs to customers, including the impact of higher metal costs and freight cost passers, partly offset by lower shipments. America's adjusted EBITDA for the quarter was broadly in line with expectations, with a 2% increase versus the prior year to $135 million, resulting from lower operations and overhead costs compared to the prior year quarter, partly offset by lower input cost recovery and lower shipments. In North America, shipments decreased by 5% for the quarter. This was in line with our expectations and reflected lower volumes after expected contract resets, the impact on operations for metal supply chain challenges at the beginning of the quarter, and the cycling of a strong prior year comparable of 8%. Underlying demand dynamics in the industry remain robust, with strong industry scanner data year-to-date apart from the beer category, to which AMP has only a low single-digit exposure. In particular, the energy category continues to show strong growth supported by broader distribution and successful innovation we also continue to experience ongoing strong demand for specialty can formats with further gains year to date in our overall specialty mix we retain our expectation for industry growth in north america in 2026 of a low single digit percentage as previously indicated we anticipate 2026 being a transition year for amp with a small full year volume decline following some contract resets but with a more favorable second half volume performance expected versus the first half we also expect to return to growth in 2027 at least in line with the industry on the back of having secured additional customer filling locations in relation to the lawsuit filed against boston beer in 2022 for breach of contract in respect to minimum volume purchase requirements on may 26 2026 a court had entered an amended final judgment to include 15.5 million dollars in pre-judgment interest taking the total expected award value to approximately $190 million on a pre-tax basis. Subsequently, Boston Beer has posted a bond with the court to cover the award value and has also filed notice of appeal. In Brazil, second quarter beverage can shipments decreased by 15%, reflecting customer mix effects following strong relative outperformance in the first quarter when AMP volumes grew by 14%. In the quarter, we observed increased World Cup-related activity in the market from the leading player which negatively impacted on our customers performance as did some downtime taken by one of our customers for some maintenance activity our overall performance the first half is broadly in line with industry performance industry data indicates that demand remains soft through the second quarter the industry outlook for the third quarter is also looking soft as we look to the remainder of 2026 we now expect an industry growth rate of low single digit percentage and for amp's volumes to broadly track the market I'll hand over now to Stefan to talk to you through our financial position for the quarter before finishing this and concluding remarks.

Thanks, Ollie, and good morning, good afternoon, everyone. We ended the quarter with a robust liquidity position of $647 million. Net leverage of 5.2 times net debt over the last 12 months adjusted EBITDA reflects AMP's strong adjusted EBITDA growth. This compares with 5.3 times at the end of June 2025 or 5.7 times on a like-for-like basis if you perform a for last year's Q4 refinancing of AMPs preferred shares with debt. In terms of guidance of the various free cash flow components for full year 2026 we approximately expect the following total capex of 240 million including gross investment an increase of 40 million compared to our prior guidance driven by the previously mentioned upsizing of our investments in new capacity in Spain and the UK. Cash interest of $220 million, lease principal repayments of approximately $150 million, cash tax of approximately $30 million, and a small outflow in working capital. Overall, our expectation in regards to our full year adjusted free cash flow generation remains unchanged. Finally, today we have announced our unchanged quarterly ordinary dividend of 10 cents per share. With that, I'll hand it back to Ollie.

Thanks, Stefan. And before moving to take questions, I'll just recap on AMP's performance and key messages. Adjusted EBITDA of $240 million in the second quarter exceeded our guidance range of $210 to $220 million, primarily driven by strong performance in Europe, with America's performance broadly in line with expectations. Global volumes decline by 1% in line with expectations and we expect a return to modest global volume growth in the second half. Reflecting on our strong first half performance and confidence in our outlook for the remainder of the year, we are upgrading our guidance for 2026 full year adjusted EBITDA to be between $775 and $790 million. Our guidance assumes some reversal of the favorable metal price timing effect and the Q1 revaluation gains related to freight cost hedging. In addition, the business faces some inflationary headwinds related to freight costs and other direct materials impacted by the oil price as a result of the conflict in the Middle East. In terms of guidance for the third quarter, adjusted EBITDA is expected to be in the range of $200 to $210 million versus the prior year quarter of $208 million on a constant currency basis.

So having made these opening remarks, we'll now proceed to take any question thank you if you'd like to ask a question please signal by pressing star one on your telephone keypad if you're using a speaker phone please make sure your mute function is turned off to allow your signal to reach our equipment once again that is star one to signal for a question and we'll go right to matt roberts with raymond james stephan ollie good morning uh thank you for the time um then north america was down five percent in 2q did you see any benefit for the world cup there if so how much or was it more of a non-event given tight metal supply earlier in

the quarter and maybe i'm getting ahead of myself but looking out to 27 you said reiterated at least market growth but given that that comp from the supplier straight constraint first half and contracts resetting. How much above market growth do you think would be possible in 27?

Yeah. Hi. Hi, Matt. So, look, on the first question, I think it's fair to say we didn't see a particular effect from the World Cup. Obviously, different beverage count manufacturers have different customers, different mix, different filling locations, different bottlers. So, we probably all experienced it differently, but we didn't see anything particular in our numbers and it may be fair also to call out it's true that we were still a little bit constrained at the start of the quarter on the medal though that normalized pretty rapidly through the quarter so so yeah we didn't see anything um particular we're obviously not in mass beer and there may be more promotional activity from what we can see you know in the beer category um and then on 27 you know we obviously had above industry growth rates for you know most of the last few years and this year a bit of a transition so we're not calling 27 yet but we do see that we have some some gains from the same contract resets that impacted us this year negatively we have some positive gains next year in terms of a couple of additional filling locations and then we still like the look of our portfolio with its weighting towards soft drinks and energy categories which you can see in the data you know are outperforming overall industry averages again, because of weakness in mass beer. So yeah, we're not calling it yet, but we certainly feel good about saying that we should grow at least in line with the industry next year.

Excellent. Thanks, Zoe. And you described continued inflation, compared to when we said it was early April or late March, it seems like certain indicators have come down since then, but then since July has certainly picked up again.

So how does the second half inflation compared to what you were previously anticipated uh and if any changes but specifically uh were the drivers of that thanks again for taking the questions no sure yeah i mean i guess we can think about inflation a couple of different ways so one is the inflation in our input costs um which is linked to the middle east which is mainly in the direct materials and freight as we call that in the remarks and i think that hasn't really changed very much from our guidance back in q1 so we're talking mid single digit sort of percent million dollars actually um in those areas so you know that's reasonably stable obviously the situation isn't stabilizing but i think you know we we look forward with some confidence in terms of the resilience of our supply chain um so we think that's a reasonably safe number for the for the second half and then in terms of inflationary pressures for the consumer or for So, you know, I think that's clearly worsening again. And so, you know, probably some reason for some appropriate caution in the second half on volumes. But again, we think that's, you know, embedded in our guidance. And we still think we should return to some volume growth in North America for the second half.

If you find that your question has been answered, you may remove yourself from the queue by pressing star two. We'll go next to Josh Spector with UBS.

Hey, good morning. So I just wanted to ask, it seemed like in your prepared remarks, you talked about some timing benefits within Europe and that helping margins. Are you able to size that at all?

So I think, you know, if you look at the beat, you know, overall for the company around $25 million versus the midpoint of consensus and, you know, a bit more than that in Europe. But, you know, we think a little bit over half of that is linked to metal timing. And then we think about a third of that reverses in the second half. So, you know, of the $25 million, as I say, a little over half being the positive. And then, yeah, about a third of that reversing on the metal side in the second half.

Reversing as if it's going to be a negative impact year over year or just lacking the benefit?

Yeah, negative. So it's a headwind in the second half. So I think I called out, you know, first of all, the ODM and freight inflation, the sort of mid-single-digit headwind in the second half. Then there's the metal timing, mid-single-digit headwind. We also have a little bit of an FX headwind, and, you know, that's underlying the guy being a little bit, you know, less positive for the second half after a strong first half.

That's helpful. I just wanted to follow up a bit on the America's volume side and just, I guess, thinking about the resets this year and you talked about some gains next year. I guess when you look at your circuit for next year in North America, is there any slack left when you look at it on a year over year basis? So do you regain everything? Is there something where you'd say you still have to grow into or is it a very tight circuit at this point later next year?

I think on the, you know, certain can sizes, there's definitely still capacity to grow into, you know, going back to the investments we made over the last five years. It's certainly getting pretty tight on specialty sizes, you know, sleek in the season, pretty tight. So we do, we do see that. But we also have some projects to do, you know, some incremental speed tops and things. So we see room to grow over the next, over the next few years in North America still.

Okay, thank you. Pleasure.

Our next question comes from Arun Viswanathan with RBC Capital Markets.

Thanks for taking my question. I hope you guys are well. I guess I just wanted to drill down into, you know, the European volume. So, obviously, you've seen some continued strength there. You are making some more investments there. So, I guess, do you expect this kind of mid-single-digit growth to persist? and then uh how would you kind of rate the profitability there uh versus maybe some of your other regions um do you think there's any any need for or there's any opportunities for include improved returns and margins in in europe as you move throughout um aside from uh you know not not not withstanding um the the metal pass through but just curious on the actual overall returns profile. Thanks.

Sure, yeah. No, I think we feel very good about the market overall. As I say, I think we've got some very positive data coming through on CAN volumes, you know, right across the geographies. We see some temporary effects when deposit schemes are introduced. So we see that a bit in Poland this year. We saw it in the Netherlands a couple of years ago. But Overall, there seems to be, again, strong momentum behind the can relative to other substrates that are grappling with either, you know, input cost, inflation ahead of hours or from sustainability concerns. So we see a lot more innovation going into the can. We see innovation going into the can much earlier. So customers talking to us about how, you know, they might have launched on the beer side in glass and then brought the can innovation later. But now it's all simultaneous. so I think a lot of positive momentum and you know our peers have talked about this but you look across the European markets we still have some very low penetration rates as you know we've got still two-way glass in some markets and other substrates in categories where we're typically very strong so I think the European growth story is fully intact and looks very positive for years to come which obviously underpins some of the investments we're making and our peers are making to meet that demand and make sure the industry can continue to grow. And that's why we were pleased to announce the upsizing on the UK and Spain investments. In terms of profitability, I mean, traditionally, a very strong profit region, Europe for us, suffered a bit, you know, coming through Russia, Ukraine, and the energy crisis. You know, we're on some recovery. So I think, you know, we do see better margin performance this year. And again, you should be very careful, obviously, as you know, on looking at any percentage margins, given the impact of the aluminium price on the revenue side. But certainly at EBITDA, up 1,000 level, we do see improved performance. And, yeah, we think we can drive improved performance in Europe through, you know, ongoing focus on cost. We always have had that, but there's some good programs that we are pursuing at the moment. And obviously the market's tight, so that also should be positive. So, yeah, we'd hope for some improvements there.

Thanks for that. And I guess just as a follow-up on the Americas, conversely there, it seems like, you know, obviously you may be able to maintain low single-digit volume growth in North America, but South America tends to be, you know, considerably more volatile. So, you know, with the World Cup now kind of in the rearview mirror, do you expect that region to kind of settle into kind of a low single-digit growth trajectory? Or could it be slightly lower than that with a slightly negative offset coming through South America? How should we think about normalized growth rates in your Americas business?

Yeah, there's no question Brazil has become more volatile post-COVID. So I think a number of effects going on there. I think the economy overall and the consumer suffered much more than in developed markets, and we see a longer recovery trajectory out of that. And then obviously in that backdrop, you know, you get more competitiveness at our customers to chase those, you know, lower spending dollars. And then we also see, you know, increased competitive activity anyway in our in the brewers, you know, with an additional brewer growing over the last five, 10 years and with the leading player playing much more in the off trade than they used to. So so what you see, I think, is a little bit more weakness on the consumer side. And then you see much more volatility quarter to quarter, depending on which brewer is chasing volume versus margin. And we certainly are finding it harder to call and project the market than we used to. I think it remains a market with a very positive backdrop in terms of the growth of the can relative to two-way glass. I think that will still continue to play out. Obviously, the leading player now also driving that, whereas they used to hold that back. So, yeah, I think those singles is a minimum I'd hope for in terms of the overall growth. But I do think the volatility will persist. and it certainly has become much more challenging to predict. And that's another factor, I think, behind our H2 guide, that Q4 is obviously the summer season in Brazil, and we could get quite a wide range of volumes there at the moment in our estimates. So we're also being cautious on Q4 as a result of that.

Thanks.

We go next to the line of George Staffos with Bank of America.

Hi. I have two questions. First, what are the key factors behind the drop in EBITDA from about 240 million in 2Q to the guided range? Can you quantify the major drivers of that decline? And second, what effect did MIX have on 2Q results and why were your results ahead of guidance? Thank you.

So, look, I think the first question was about why is Q3 below Q2? Q3 is always below Q2 because, you know, Q2 is our high season, and we generally are coming off a bit of that into Q3 in the remainder of the year. So I think if that was that question, I think probably that's the answer to that, largely. We also have called out, I think, there are some inflationary pressures in the second half that we don't have in the first half, and so the second half overall uh is down a little bit um and then i think your other question was about mix um so obviously if you look at the north american results uh you know we've lost quite a lot of volume there um but our overall volume mix line is is flat so you can see from that that there is positive mix in in north america and we called out the specialty can percentage increasing and then And there was also a good mix in Europe with, you know, the categories we're talking about. And, yeah, I think Brazil at this point was less, was a bit less relevant. So I think I caught your questions, but I'm turning to Stefan just to check on.

No, I think you did.

We'll go next to Michael Roxland with Truist Securities.

Hey, guys. It's Nico Pacini on from Mike Roxland. And I just wanted to check quickly on maybe an early read for July volumes by region or three Q volumes. And then more specifically, how you think of, I guess, Brazil in the second half going off a few questions ago.

Yeah, I think the July volumes look in sort of largely correlated with Q2. So strong Europe, I think, yeah, US, North America, a bit better, probably, as we talked about. I think the second half should be stronger than the first half. And we start to see that in the July volumes. And then Brazil definitely still soft, market soft, and our volumes a bit softer. So I think that underlines our caution on, you know, Brazil's second half. We do have in the plan some volume growth. We still expect that. And obviously what we've seen in the last few years is the summer season can really take off well, which will obviously be happening from sort of October onwards so we'd be hopeful for that but again you know I think we've called it out I think our peers are calling it out there's a lot of volatility in the Brazil market at the moment depending on which of the brewers is really pushing volume.

Got it and then just one follow-up on your corporate structure can you give any update to you know what's happening there with maybe what the parent company is looking to do separating potentially glass and metal?

Yeah no we don't have any update on that at this point got it thank you i'll turn it over once again if you'd like to signal for a question please press star one and we'll pause briefly to assemble any further questions this time we have no further questions i'd like to turn the floor back to oliver graham

for any closing remarks thanks and thanks to everyone on the call so just to summarize in In the second quarter, we reported strong adjusted EBITDA growth of 14% versus the prior year quarter, significantly ahead of guidance, primarily driven by Europe, which benefited from favorable input cost recovery and strong volume growth, in testament to, I think, the resilience of AMP's business. And reflecting on our strong first-off performance and confidence in our outlook, we're upgrading our guidance for full-year adjusted EBITDA to between $775 and $790 million. And with that, we look forward to talking to you again at our Q2 results. Thanks very much.

This concludes today's conference. We thank you for your participation. You may disconnect at this time.