Analyst Note| Brian Bernard, CFA, CPA |
Narrow-moat-rated Ball reported strong revenue growth in the second quarter, driven by heightened demand for aluminum cans. Revenue increased 23% year over year, while up roughly 10% sequentially. Demand continues to outpace supply as beverage consumption has moved from taps to cans and bottles. Ball is still facing capacity constraints due to strong demand, but management reiterated its goal to invest $1.5 billion in the year to increase capacity. Ball opened multiple new lines in its manufacturing facilities, with a majority of those lines producing aluminum cans.