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Date

Thursday, July 24, 2025, at 1 p.m. ET

Call participants

  • Chief Executive Officer — Oliver Graham
  • Chief Financial Officer — Stefan Schellinger

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Risks

  • Chief Financial Officer Stefan Schellinger stated that the European business is "facing some cost headwinds," explicitly referencing input costs and noting that these will continue to affect fourth quarter results.
  • Oliver Graham cited "adverse weather in certain geographies" in Europe as a driver behind weaker beer can sales and overall segment performance during the quarter.
  • Management "assumed some reversion to the mean in Brazil," with expectations that Brazil's beverage can growth will slow following the significant outperformance in the first half of 2025.
  • "The macroeconomic environment remains uncertain," and management framed the fourth quarter guide with added caution due to this and past strength in earlier quarters.

Takeaways

  • Global Shipments-- Global shipments grew 5% year-over-year, supported by strong volume in The Americas with growth reported across all regions.
  • Adjusted EBITDA-- Adjusted EBITDA increased by 18% compared to the prior year. This increase was ahead of guidance.
  • Europe Revenue-- Rose 9% to $615 million, or 4% on a constant currency basis compared with Q2 2024, primarily from volume growth and the pass-through of higher input costs.
  • Europe Shipments-- Up 1%, with soft drink can growth offsetting weaker beer volumes.
  • Europe Adjusted EBITDA-- Adjusted EBITDA in Europe decreased 3% to $77 million, or 6% lower on a constant currency basis, reflecting higher input costs and temporary negative effects from declining aluminum prices.
  • The Americas Revenue-- Revenue in The Americas increased 21% to $840 million, driven by higher shipment volumes, input cost pass-through, and a higher Midwest aluminum premium in The US.
  • The Americas Adjusted EBITDA-- Adjusted EBITDA in The Americas grew 34% to $133 million, driven by favorable category mix and reduced operating costs.
  • North America Shipments-- Up 8%, sustained by strong carbonated soft drink, sparkling water, and double-digit energy drink can growth in North America.
  • Brazil Shipments-- Up 12%, outperforming the overall market, which only began to recover post-carnival.
  • Liquidity Position-- Ended at $680 million, with no near-term bond maturities reported.
  • Net Leverage-- Stood at 5.3x net debt/adjusted EBITDA for the trailing twelve months, a reduction of half a turn of net leverage from Q2 2024.
  • Full Year Adjusted EBITDA Guidance-- Upgraded full-year adjusted EBITDA guidance to a range of $705 million to $725 million, reflecting improved performance and favorable currency movements.
  • Full Year Shipments Guidance-- Reiterated guidance for 3%-4% global shipments growth in 2025.
  • Q3 Adjusted EBITDA Guidance-- Projected adjusted EBITDA between $200 million and $210 million for Q3 2025.
  • Free Cash Flow Outlook-- 2025 adjusted free cash flow expected to be at least $150 million, with maintenance CapEx guided at roughly $135 million for 2025, and gross CapEx at approximately $70 million for 2025.
  • Quarterly Dividend-- Announced at $0.10 per share.
  • Capacity and Expansion-- Approximately 1 billion units of incremental European capacity added in 2025 from ramped projects and speed-ups, with future additions focused on brownfield (existing facility) investments through 2027.

Summary

Ardagh Metal Packaging(AMBP 1.37%) reported 5% growth in global shipments and 21% growth in The Americas revenue for the quarter, significantly enhancing adjusted EBITDA and exceeding initial targets according to management. The Americas delivered shipment and EBITDA outperformance, with North America’s can volume led by innovation and consumer demand in energy, sparkling water, and soft drinks, while Brazil’s 12% shipment gain sharply exceeded broader industry trends. European segment results were mixed, combining healthy soft drink can growth and tight capacity constraints in certain can formats, but were held back by weak beer demand and temporary cost headwinds tied to aluminum prices and negative producer price index trends. Management increased full-year adjusted EBITDA guidance (non-GAAP) to $705 million–$725 million and maintained global shipment growth expectations of 3%–4% for 2025, stating that recent capacity additions in Europe are sufficient for near-term growth and that any further expansion will favor upgrades to existing facilities. Management emphasized caution for Q4 2025 in light of macro uncertainties, input cost pressures in Europe, and a normalizing volume outlook for Brazil and North America after outsized gains in the first half.

  • Chief Executive Officer Oliver Graham stated that the beverage chain continues to outperform other substrates in the customer's packaging mix supporting continued share gains, especially in Europe.
  • Management expects most European expansion needs for the next two to three years can be met through existing facility optimization, avoiding the need for expensive new greenfield projects.
  • Stefan Schellinger reiterated expectations that maintenance and gross CapEx will remain broadly consistent for 2025 and likely next year.

Industry glossary

  • Midwest Premium: The regional surcharge applied to aluminum prices in the United States to reflect delivery costs to the Midwest, a key reference in beverage can input cost discussions.
  • Brownfield Expansion: Capacity increases achieved by upgrading or expanding within existing manufacturing facilities rather than constructing new plants.
  • PPI (Producer Price Index): An index measuring the average change over time in the selling prices received by producers, cited here in the context of cost headwinds impacting EBITDA in Europe.

Full Conference Call Transcript

Oliver Graham: Thanks, Stephen. We continued our strong year-to-date performance in the second quarter, with 5% global shipments growth and 18% adjusted EBITDA growth versus the prior year, again ahead of guidance. Our results were particularly driven by strong volume growth in The Americas, reflecting the strength of our customer portfolio with its exposure to several key attractive and growing categories. Our performance is a testament to the resilience of our business, despite macroeconomic uncertainties, with shipments growth reported across each of our markets. Global beverage can growth continues to benefit from innovation and share gains in our customers' packaging mix. And we still anticipate only a minimal impact to our business arriving from the tariff measures announced.

Now looking at AMP's Q2 results by segment. In Europe, second quarter revenue increased by 9% to $615 million or 4% on a constant currency basis compared with the same period in 2024, principally due to volume growth and the pass-through of higher input costs to customers. Shipments grew by 1% for the quarter driven by growth in soft drinks, offsetting some weakness in beer. Can sales in beer, despite outgrowing other packaging substrates, were weaker in the quarter, negatively impacted by adverse weather in certain geographies. Soft drinks saw good growth, especially in cans, not all of which we were able to follow, given constraints on certain can formats in the summer season.

Second quarter adjusted EBITDA in Europe decreased by 3% to $77 million or by 6% on a constant currency basis, in line with our expectations, reflecting headwinds related to input costs. This included a temporary impact related to metal timing given falling aluminum prices during the quarter alongside the expected headwinds this year related to negative PPI and higher aluminum conversion costs. This was partly offset by volume growth and lower operational and overhead costs. Beverage cans continue to take share in our customers' European packaging mix. And our expectation for shipments growth is around 3% for full year 2025. Capacity remains tight in the season in certain geographies and can sizes.

And we expect that the continued ramp-up of our more recently installed capacity and flexible investments will support near-term growth. In The Americas, revenue in the second quarter increased by 21% to $840 million, which reflected higher volumes and the pass-through of higher input costs to customers, including the impact of the higher Midwest premium in The US. Americas adjusted EBITDA for the quarter increased by 34% to $133 million due to favorable volume growth, category mix, and lower operating costs. In North America, shipments increased by 8% for the quarter, a continuation of strong growth from the first quarter and reflecting our portfolio's mix of attractive and growing customers and product categories.

Market demand for non-alcoholic beverages in cans was strong in the quarter, with growth in carbonated soft drinks and strong growth in both sparkling waters and in the energy drinks category, which continued its strong quarter one growth and grew by a double-digit percentage. We maintain our guidance for full year North America shipments of mid-single-digit growth. In Brazil, second quarter beverage can shipments increased by 12%, reflecting favorable customer mix as we outperformed the industry, which grew only post-carnival. We retain our guidance for full year shipment growth for Brazil of at least low single-digit percentage. This reflects the overall softer expected industry backdrop for the second half of the year.

In summary, for The Americas, we expect shipments growth of mid-single-digit percentage for 2025. I'll hand over now to Stefan to talk you through our financial position before finishing with some concluding remarks.

Stefan Schellinger: Thank you, Ollie, and good morning, good afternoon, everyone. We ended the quarter with a robust liquidity position of $680 million. We note that in addition to our strong liquidity position, we have no near-term bond maturities. Net leverage of 5.3x net debt over the last twelve months adjusted EBITDA represents a decline of half a turn of leverage versus Q2 2024, reflecting adjusted EBITDA growth. It remains our expectation that leverage ratio at year-end will be around five times. We reiterate our expectation for adjusted free cash flow for 2025 of at least $150 million. In terms of the various components of free cash flow, our expectations are mostly in line with what we said in April.

We still expect maintenance CapEx of around $135 million, gross CapEx of around $70 million, lease principal repayments of just over $100 million, cash interest of just over $200 million, as well as a small outflow in working capital. We now expect cash tax closer to approximately $40 million, and as well as small exceptional cash outflows of approximately low teens millions. We have today announced our quarterly ordinary dividend of $0.10 per share. And with that, I'll hand it back to Ollie.

Oliver Graham: Thanks, Stefan. So just before moving to take your questions, just to recap on our performance and key messages. So firstly, EBITDA growth in the second quarter of 18% was ahead of guidance underpinned by global shipments growth of 5% and in particular, strong performance in The Americas. And across our markets, the beverage chain continues to outperform other substrates in the customer's packaging mix supporting our growth. So reflecting our quarter two performance and favorable currency movements, and assuming no further adverse change to the current macro environment, we are upgrading our full year adjusted EBITDA guidance. Full year adjusted EBITDA is now expected to be in the range of $705 to $725 million based on current FX rate.

We continue to expect full year shipments growth for AMP to be between 3-4%. In terms of guidance for the third quarter, adjusted EBITDA is expected to be in the range of between $200 million and $210 million ahead of the prior year of $190 million. So having made these opening remarks, we'll now proceed to take any questions that you may have.

Operator: If you have dialed in via the telephone and would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star 1 to ask a question. We'll pause for just a moment to allow everyone the opportunity to signal for a question. And our first question comes from Stefan Diaz with Morgan Stanley.

Stefan Diaz: Hi, Ollie. Hi, Stefan. Thanks for taking my question. Maybe just to begin, another very strong quarter. As far as North American volumes, I know you called out some category mix, but maybe if you could just dig into what you're seeing so far in North America and what your expectations are for the region into the back half?

Oliver Graham: Sure. So, look, as you say, we called out, I think, the main categories that are performing well, which you can see in the public data. So soft drinks generally in cans have had a strong, you know, four weeks, twelve weeks, fifty-two weeks. I mean, the market as a whole is probably at a 2 to 3% level, which is very healthy given the size of the market. And then within that, you know, CSD strong, energy drink particularly strong. So I think last year, we were all debating when the energy category would come back, and I think we had strong hopes for 2025, and those have certainly played through with double-digit growth in cans.

And then the other one we picked out was sparkling waters. We also have strength in our portfolio on the cocktail side, which is doing very well with certain, you know, innovative new players. And I think we're on the right side of the market, beer and cans, obviously, under pressure with the beer market under pressure. So being in soft drinks, I think, has been good for us. And then we also, I think, are with some strongly growing innovative new customers as well as some well-established customers in those categories. So if we look to the second half, we're not predicting it to be quite that strong.

You know, it was particularly good, you know, in the first half, somewhat ahead of our expectations. So we expect some reduction in that. Still looks pretty healthy, which is why we're still, you know, with our guidance, just not quite as strong as we had it in the first half. And we think that the category trends broadly stay similar, so, you know, strength in those soft drinks categories. And overall, I've been saying it for a couple of years now. I think it reinforces the growth we've had since 2018, '19 in North America.

You know, we kept everything that we gained through the COVID period, and now we see growth again thanks to the innovation that's going into the can, thanks to the sustainability credentials of the can. So very hopeful, you know, that we can sustain this overall level of performance for the market in North America.

Stefan Diaz: Thanks. That's very helpful. And then I think you mentioned some capacity constraints in Europe, particularly with CSD. Could you just give a little more details around that? Maybe if you could size how much of the volume impact that had in the quarter and, you know, if you expect these headwinds to continue into the second half? Thanks.

Oliver Graham: Sure. Yes. So look, I think the story of Europe was definitely that beer was a bit weaker in general. You know, volumes weren't great in our markets, and can sales similarly suffered a bit for that. The can sales were ahead of other substrates. The strength was in soft drinks, there's a lot of strength in soft drinks. But that was also particularly in the energy category as well as CSD and in slim and sleek sizes that, you know, we were a little bit short in the season because we have a strong beer position, so, you know, in the bigger can formats, but we can't just immediately pivot into smaller formats for soft drinks.

So although we've got a good network, lots of options across the market, we couldn't follow all the growth in the season, and that's probably one to two points of growth that we couldn't follow on the soft drink side. I think looking into the second half, you know, I think that in Q1, customers clearly built some, you know, good amount of inventory. We had 5% growth Q1. We're sort of around the 3% year to date, and that's roughly our prediction for the full year. I think the market for cans remains very healthy in Europe. It's on a long-term trend of this sort of number.

You know, we've seen other reporting, you know, a little bit higher, though, with a different geographic mix. So, you know, it feels like the three or 4% market growth, you know, we're around 3%, our prediction for the year. That feels the right sort of place. You know, I'm very encouraged by just the ongoing growth for the European market overall.

Stefan Diaz: Thanks, Ollie.

Operator: And ladies and gentlemen, if you find that your question has been answered, you may remove yourself from the queue by pressing star two. And we'll take our next question from Arun Viswanathan, RBC Capital Markets.

Arun Viswanathan: Congrats on strong results. Just wanted to get some more color across maybe The Americas. It sounds like there was, you know, better than expected performance. What do you think that was driven by? Was it strong promotional activity in the quarter? And then I guess, when you think about that looking ahead, do you expect any drop-off in that sell-through? Do you think customers potentially or consumers potentially hoarded product on those promotions, or do you expect, you know, sell-through to continue, you know, over the summer and into the fall? Thanks.

Oliver Graham: Yeah. No. Look. Good question. I think it's obviously hard to look into the crystal ball. Clearly, soft drinks promotions were strong in the first half, among the strongest we've seen. Therefore, you know, you can expect that customers were buying up what they could see. But, again, it's a pretty fast-moving product. So wouldn't expect to see a huge amount of stockpiling. So I think it'll depend, you know, what customers do in the second half on the promotional front, whether we see this exactly the same momentum. But, you know, it's clear in our portfolio that not all of this is promotional.

Clearly, you know, we've got innovative drinks, new drinks coming to market in the gut health area, in the cocktails area. You know, sparkling water continues to be very strong. So we don't see that as particularly promotional. And, again, is more about, I think, innovation going into the can, which is, you know, a more sustainable way forward. So we are predicting that the second half isn't quite as strong as the first half because the first half was really strong. But we're not predicting it, you know, that it's terrible. We're still seeing good growth in the second half in North America.

Arun Viswanathan: Thanks for that. And then similarly, Europe, I guess, a little bit weaker than we expected, which is kind of surprising just given, you know, continued growth there. But, you know, maybe there's some specific factors going on. So maybe you can just elaborate on your outlook there as you look into the second half of the year and '26.

Oliver Graham: Sure. Yeah. No. No. I said, I think we've got some specific category geographic, you know, issues in the quarter. So had a couple of markets that were particularly weak on beer. We had poor weather, particularly in the South. You know? So for whatever reason, the beer market wasn't as strong as we anticipated, and probably everyone anticipated in our geographies. And although, as I say, the can was outperforming the other substrates, the can was also under some pressure as a result of that. And, again, I underestimate. I think customers did build inventory much more effectively this year than last year.

I think they learned a lesson last year when they were short inventory going into the season. And so, you know, probably the average of our 5% Q1 and our 1% Q2 is the right number to think about for the market, which is pretty much where we pick the market for the year and where we see our second half. And, you know, again, if I look into 2026, all the good trends are still there for Europe. So we've still got cans gaining share in the mix. We've got Germany still with very low can penetration relative to other developed markets for all the reasons we've talked about.

We've got, you know, gains in soft drinks that are pretty strong. I think the can's sustainability credentials are only improving in Europe with, you know, higher recycled content rates and lower carbon footprint. So, you know, we see a lot of good trends, I think, for Europe going forward, and we anticipate these sorts of growth rates on average, you know, and maybe you get some quarter-to-quarter volatility like this. But overall, the three to 4% feels like a good place to pick the market.

Arun Viswanathan: Great. Thanks. If I could just ask one more. Just overall on your footprint, any regions where you feel you would need to take action whether to increase or decrease capacity? Thanks.

Oliver Graham: Yeah. Certainly no decrease at this point if, you know, if we're talking about Europe, I think, you know, we're very tight. The market is clearly very tight in certain can sizes, particularly in the season. You know, our peers have announced some capacity growth. I think the market needs that. We think this is a 90 plus billion market now. Growing at 3%, 4%, then, you know, you need some capacity added every year, clearly. We're getting, you know, to the point where we have to think about capacity additions. We've got good growth this year in capacity as we ramp up existing investments. We'll put some more flexibility into the network.

But, you know, that'll take us through '26, but then we'll have to look at the situation and probably we'll need to look at the South before the North. But we're evaluating that situation as we see our customer mix develop. And then if we're talking the other regions, there's still capacity to grow into in North America, though less than we would have thought at the beginning of the year given the strength of the growth. And in Brazil, I think we signaled there is a decent amount of capacity for us to grow into, which has been hard curtailed. But mainly in the Northeast where, you know, growth is a bit less in the market.

But overall, I think we feel pretty comfortable with our position at the moment for the next, you know, twelve, eighteen months of growth.

Arun Viswanathan: Great. Thanks a lot.

Stefan Schellinger: Thanks.

Operator: And once again, if you'd like to ask a question, please press 1. We'll take our next question from Josh Spector with UBS.

Josh Spector: Hi. Good morning. First, I just want to ask on the European cost side, when you talked about some of the timing in aluminum, how much of an impact was that in the second quarter? And do you make that back up in 3Q and that there's maybe some outperformance on margins? Or is that something that would take longer than that?

Oliver Graham: Yeah. Look at I mean, the timing effects, they come and go. Sometimes they happen in the quarter. Sometimes they cross quarters. Don't think we see it particularly being made up in March, but I'll let Stefan comment. But, yeah, I'd say more just that, yeah, they happen. They go up and down. It just happens that it was particularly concentrated in this quarter because of the, you know, all the tariff announcements and then the weakening of the dollar, which particularly impacted the euro aluminum price and therefore the gap between when we buy it and when we sell it on to customers. But, Stefan, maybe you want to add something.

Stefan Schellinger: Yeah. Look. That's obviously right. It's sort of a timing between sort of the price we invoice the customer and the price of what we procure. I expect it to come back unless sort of the price moves again fundamentally. And depending on which direction. So I think probably we are through most of the effect in Q2, but I wouldn't just going sort of to be reversed sort of in the near term.

Josh Spector: Thanks. And then if I could ask about kind of your implied 4Q guidance, I don't think anybody is going to blame anybody for being conservative at this point, but I guess if we look at the implied EBITDA, it's potentially down significantly year on year in 4Q. And it's actually even below 2023 EBITDA. Is there anything specific that you're seeing that would drive your assumptions there, either pull into 3Q or something else that you call out?

Stefan Schellinger: No. I think, I mean, you mentioned that was the way, you know, it's an uncertain environment from a macro perspective. I think, you know, the European side of the business is facing some cost headwinds. We talked about, so that will also impact sort of the Q4. I think Q4 last year was also a relatively strong, you know, this summer from a growth perspective quarter. And then I think in South America, just, you know, relative to half one, you know, we said, we anticipate certainly a slowdown in terms of our own volume growth. We have significantly outperformed the market, and the overall market is relatively slow. I think we see that very low single-digit growth.

So these are probably a few things to call out here.

Operator: Okay. Thank you. And our next question comes from Richard Carlson with Wells Fargo.

Richard Carlson: Hey, good morning, guys. I'm standing in for Gabe Hajde today. So just to follow-up, I guess, on that about the good morning. Just to follow-up on the last question about the back half guide because I think that is something that's catching a lot of people's eyes today. Other than, you know, the slowdown and the growth that you guys have referenced, are there any other major cost pieces that are in there that we need to keep in mind when we're modeling this out? And then also just from that growth perspective, you've definitely had a lot of outperformance in North America so far year to date. Brazil looks quite good.

I guess Europe maybe is a little bit disappointing, but what are the really, like, the biggest moving pieces between the first half growth rates and the second half growth rates?

Oliver Graham: So I think, yeah, okay. It tells a bit about the different markets, but I think Europe, you know, we see roughly at the same rate in the second half, but we're being a little bit cautious after, you know, a difficult second quarter relative to expectations. And then for both Brazil and North America, we are predicting some slowdown on the rate. As Stefan just said, the Brazil market has grown 1% year to date, and we've grown, you know, more significantly more than that and 12% in Q2, you know, nearly 8% year to date. So again, that's a result that's been talked about on these calls and our peers' calls. You know?

We're all serving the big brewers. Some of them promote in some quarters, some promote in other quarters. So have to assume that your mix plays for you at some point, but doesn't always play for you through the year. So we've assumed some reversion to the mean in Brazil, and then, you know, again, in North America, we had such a strong first half that we haven't seen that replicate fully through the second half. So, you know, I think, applying some appropriate caution. And then as Stefan just said, I think Q4 is a way out. The macroeconomic environment remains uncertain.

And so, you know, we're just reflecting that, I think, in some appropriate caution relative to our Q3 guide, which is another growth. There's no extra cost pieces. We've talked about the input costs on Europe. We don't see any additional cost pieces as we go into the back half of the year. I think that's right, Stefan?

Stefan Schellinger: Yeah. That's correct.

Richard Carlson: Got it. Got you for that. And then, I guess, specific to the energy market, that's been, of course, really hot here in North America. Probably gonna see some tougher comps coming up soon. But what are you guys seeing there? And do you have a view on whether or not, you know, the incremental buyer of an energy beverage is leaving sodas? Are they getting away from CSDs? And maybe cannibalizing CSDs? And if that is happening, how does that impact you guys? It seems like maybe your exposure or your market share within energy is quite a bit higher than CSD.

So just want to be, I guess, a thought about how some of the dynamics and the buying between CSDs and energy is impacting you.

Oliver Graham: Yeah. We're not seeing that. I mean, I think, you know, I don't have any detailed data on exactly what the switching is, but we're certainly seeing CSD in cans, so with very good growth. We're seeing, you know, continued share gain. I think I saw data saying we're up to 56% and flat to down to forties. So that switch is going on. So, you know, we're seeing good growth, you know, from our perspective in both energy and CSD, and we're not seeing that's some sort of trade-off. So yeah, not concerned about this at this point. And then within the energy category, you've got, you know, new players that are performing seemingly strongly.

You've got existing players performing strongly. So I think it's what we said last year that this is a big strong category with very, you know, successful players who know all about innovation and, you know, they took a breather last year, but they've really brought it back to the market in a strong way this year. So very pleasing that they've done that.

Richard Carlson: Got it. And just last one for me. Same question you guys have gotten the last few quarters was just, you know, on this MAHA movement, especially here in North America with switch to potentially less artificial sweeteners and dyes or things. Are you hearing any increased conversation from your customers about the potential headwind in that could be to their business?

Oliver Graham: No. Really nothing specific, to be honest. And, you know, if I look at our position in those categories, you know, still seems to be growing at the expense of other substrates, and when I think about the impact of that, it could also fall more on other substrates. So yeah, nothing very specific on that to comment on.

Richard Carlson: Great. Thanks, guys, and good luck on Q3.

Oliver Graham: Thank you.

Operator: And once again, ladies and gentlemen, if you'd like to ask a question, please. Our next question comes from Michael Roxland with Truist Securities.

Michael Roxland: Yeah. Hi, guys. This is Niccolo Piccini on for Mike. Thanks for taking my questions. I guess, first off, you speak to any manufacturing efficiency that could have contributed to the performance this year so far? And, you know, how should we think about what you target there going forward?

Oliver Graham: Look. I think we referenced in the remarks that there have been improved operational costs on both sides of the Atlantic, obviously, North America helped by the fact that we're running so full. We're, you know, we're very low inventory levels in North America for another year. And, obviously, you know, when you run the plants for the unit cost drop and efficiencies grow. So that's definitely helped. But then I think our Europe performance has been very pleasing on the manufacturing side. So good production levels, you know, good cost performance. So overall, we're happy with the network. We have manufacturing efficiency targets built in every year. You know, it's the nature of can making.

So, yeah, we're not gonna talk about them specifically. They're part of our guidance, and, you know, we're looking obviously very ambitiously at, you know, cost savings and increased efficiency in our manufacturing network, and that's supported by a number of big programs within the business.

Michael Roxland: Got it. Thank you very much. And then just secondly, if you could speak to maybe contract negotiations. I imagine at this point in the year, 2026 volumes are, you know, maybe largely contracted. But can you speak to it is for '26 and how much you have under contract for 2027?

Oliver Graham: Yeah. Like you say, we're largely either contracted or well through any negotiation process for 2026, so we're increasingly got good visibility there. Then '27 actually goes reasonably, I mean, I don't have the exact percentage to hand, but it's reasonably fully contracted. We're getting through the wave of CSD tenders in North America now. Europe has been, you know, a decent amount of activity this year, which is closing and should take us through 2027. So yeah, I think, you know, the business is getting through that, if you like, the wave of post-COVID contract renewals, and we're starting to get pretty good visibility on '26 and beyond, you know, volume-wise.

Michael Roxland: Got it. Thank you very much. Good luck in the quarter.

Stefan Schellinger: Thank you.

Operator: Please press 1 now. And it appears there are no further questions. One moment. We do have Mr. Stefan Diaz that resignaled.

Stefan Diaz: They can Terry that the, you know, European market is rather tight. And, you know, just giving your cash flow profile and, you know, some cash commitments with the dividend. Do you think you're well-positioned to capture some of that future growth if we, you know, think on twelve to eighteen months, if you feel like you need to expand capacity in the region?

Oliver Graham: Yeah. I'll start, and then I'll let Stefan pick it up as well. But as I mentioned, we're ramping up probably in the order of a billion of capacity this year with the projects that we completed in '23 and '24 and with some improvements to those projects and some speed-ups. So that's already taking us, you know, healthily through this year and into next year. And then we have some other areas where we can still see capacity growth in the existing footprint next year. And then I think we signaled, you know, we might have to add something under the existing footprint, you know, going into '27.

We've talked about, you know, CapEx levels for this year being broadly similar, probably next year. So I think that when I look at our growth profile for Europe, I'm not concerned. I think we can, you know, manage that within our existing forecast. And, you know, stay relevant and competitive in the market. But I'll also pass that one to Stefan.

Stefan Schellinger: Yeah. Look. I fully agree. I mean, obviously, we gave indications for this year in terms of growth CapEx. I think all projects, I think, we have line of sight of and we feel, you know, good return opportunities in terms of extensions, speed-ups, I think we are going ahead with, and I think for the foreseeable future, I think we have, I think, good visibility sort of in our pipeline of projects, and I think we can address those within the existing sort of cash flow profile.

Stefan Diaz: Thanks. That's really helpful. So I guess maybe just, like, digging into that a little further, so potentially any capacity that needs to be added beyond the 1,000,000,000 that you mentioned that you're adding this year, would be more, you know, brownfield type projects if we sort of assume demand kind of stays on the same trajectory than needing greenfields. Is that a correct assumption?

Oliver Graham: Yeah. I think, I mean, that's definitely a good assumption. I think, I mean, Brownfield could imply to some listeners, you know, that you need to build some big new plant, but it's an existing building. Right? We're talking, you know, genuinely under the roof. So existing facilities, which obviously are the most efficient and lowest cost capital investment. So that's what we see for the next two, three years in Europe that we certainly don't need to be building major new facilities at this point.

Stefan Diaz: Great. Thank you both, and good luck in the back half of the year.

Stefan Schellinger: Thanks, Stefan. Thank you.

Operator: And ladies and gentlemen, if you'd like to join the queue, please press. And it appears there are no further questions at this time. I'll turn the conference back to Oliver Graham for any additional or closing remarks.

Oliver Graham: Thanks, Lisa. So thank you for joining our call. So just to summarize, another very strong quarter for AMP. Global shipments grew by 5% the quarter, adjusted EBITDA by 18% ahead of guidance, particularly driven by The Americas. And reflecting that quarter 2 outperformance and favorable currency movements, we're again raising our expectations for full year adjusted EBITDA. So with that, thanks for joining, and we look forward to talking to you again at the Q3 results.

Operator: Thank you, ladies and gentlemen. This concludes our call today. You may now disconnect from the call, and thank you for participating.