Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Ball (NYSE: BALL) and the best and worst performers in the industrial packaging industry.
Industrial packaging companies have built competitive advantages from economies of scale that lead to advantaged purchasing and capital investments that are difficult and expensive to replicate. Recently, eco-friendly packaging and conservation are driving customers preferences and innovation. For example, plastic is not as desirable a material as it once was. Despite being integral to consumer goods ranging from beer to toothpaste to laundry detergent, these companies are still at the whim of the macro, especially consumer health and consumer willingness to spend.
The 8 industrial packaging stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.6%.
While some industrial packaging stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results.
Best Q2: Ball (NYSE: BALL)
Started with a $200 loan in 1880, Ball (NYSE: BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Ball reported revenues of $3.34 billion, up 12.8% year on year. This print exceeded analysts’ expectations by 7%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ adjusted operating income estimates.
"We delivered strong second quarter results, returning $1.13 billion to shareholders in the first six months of 2025. Our robust financial position, leaner operating model, and focused growth strategy enabled us to achieve higher volume and increase our full-year guidance for comparable diluted earnings per share growth to 12-15%. While we remain mindful of potential geopolitical uncertainties and market volatility in the second half of the year, we are confident in our ability to achieve our 2025 objectives. Our ongoing commitment to operational excellence continues to drive manufacturing efficiencies, and our investments in innovation and sustainability are helping our customers better meet end-consumer needs, all while we tightly manage our cost structure. These actions position us well to navigate the near-term and consistently deliver long-term value to our shareholders," said Daniel W. Fisher, chairman and chief executive officer.
Ball achieved the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 4.8% since reporting and currently trades at $54.89.
Is now the time to buy Ball? Access our full analysis of the earnings results here, it’s free.
Sealed Air (NYSE: SEE)
Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.
Sealed Air reported revenues of $1.34 billion, flat year on year, outperforming analysts’ expectations by 1.9%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Sealed Air scored the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 4.8% since reporting. It currently trades at $30.39.
Is now the time to buy Sealed Air? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: International Paper (NYSE: IP)
Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
International Paper reported revenues of $6.77 billion, up 42.9% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 9.4% since the results and currently trades at $48.64.
Read our full analysis of International Paper’s results here.
Packaging Corporation of America (NYSE: PKG)
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.
Packaging Corporation of America reported revenues of $2.17 billion, up 4.6% year on year. This print lagged analysts' expectations by 0.8%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ sales volume estimates.
The stock is down 2.7% since reporting and currently trades at $200.79.
Read our full, actionable report on Packaging Corporation of America here, it’s free.
Crown Holdings (NYSE: CCK)
Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Crown Holdings reported revenues of $3.15 billion, up 3.6% year on year. This result topped analysts’ expectations by 0.9%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 1.9% since reporting and currently trades at $102.83.
Read our full, actionable report on Crown Holdings here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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