Ball BALL · USD

3. Business Segment Information​Ball’s 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 deconsolidating the business and retaining a 10 percent ownership interest. The financial results of the Saudi Arabian business, which were a part of the beverage packaging, other, non-reportable operating segment, are presented in Other in the tables below through the date of the transaction and as of December 31, 2024, the assets and liabilities of the Saudi Arabian business were presented as current assets held for sale and current liabilities held for sale on the consolidated balance sheet. ​On March 21, 2025, Ball closed on a transaction for its aluminum cups business, which resulted in Ball deconsolidating the business. The financial results of the aluminum cups business are presented in Other in the tables below through the date of the transaction and the assets and liabilities of the business were presented as current assets held for sale and current liabilities held for sale on the consolidated balance sheet as of December 31, 2024.

​5. Revenue from Contracts with Customers ​The following table disaggregates the company’s net sales based on the timing of transfer of control:​​​​​​​​​​​($ in millions)​Point in Time​Over Time​Total​​​​​​​​​​2025​$ 2,317​$ 10,844​$ 13,1612024​​ 2,454​​ 9,341​​ 11,7952023​​ 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 company’s current and noncurrent contract liabilities are as follows:​​​​​​​​​​Contract​Contract​​Liabilities​Liabilities($ in millions) ​ ​ ​(Current)​(Noncurrent)​​​​​​​Balance at December 31, 2023​$ 114​​ 3Increase (decrease)​​ (64)​​ (1)Balance at December 31, 2024​$ 50​$ 2Increase (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 company’s 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 company’s contract liabilities primarily results from timing differences between the company’s performance and the customer’s payments. Current contract liabilities are classified within other current liabilities on the consolidated balance sheets and noncurrent contract liabilities are classified within other liabilities.

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​$ —​$ 1894.875% due March 2026​​ —​​ 2561.50%, euro denominated, due March 2027​​ 646​​ 5696.875% due March 2028​​ —​​ 7506.00% due June 2029​​ 1,000​​ 1,0002.875% due August 2030​​ 1,300​​ 1,3003.125% due September 2031​​ 850​​ 8504.25%, 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)​​ —​​ 625Term A loan due November 2030 (4.97% - 2025)​​ 1,500​​ —Finance lease obligations​​ 8​​ 7Other (including debt issuance costs)​​ (59)​​ (43)​​​ 6,993​​ 5,503Less: 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​$ 191Short-term finance leases​​ —​​ 24Short-term committed loans​​ —​​ 109Short-term uncommitted credit facilities​​ 19​​ 37Short-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 company’s senior credit facilities include a $1.50 billion term loan and long-term multi-currency revolving facilities that mature in November 2030, which provide the company with up to U.S. dollar equivalent of $2.00 billion. At December 31, 2025, $1.95 billion was available under these revolving credit facilities. The company had approximately $943 million of short-term uncommitted credit facilities available at December 31, 2025. The weighted average interest rate of the outstanding short-term committed loans and uncommitted credit facilities, the majority of which are outstanding in the beverage packaging, South America, segment, was 25.51 percent at December 31, 2025, and 18.30 percent at December 31, 2024. ​On November 17, 2025, Ball redeemed all of the outstanding principal of its $750 million of 6.875% senior notes due in March 2028. On December 15, 2025, Ball redeemed all of the outstanding principal of its $256 million of 4.875% senior notes due in March 2026. ​In August 2025, Ball issued $750 million of 5.

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 company’s 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 PriceBeginning of year​ 8,912,604​$ 56.87Granted​ 549,131​​ 51.38Exercised​ (1,016,962)​​ 35.73Canceled/forfeited​ (805,580)​​ 59.43Expired​ (466,995)​​ 69.02End of period​ 7,172,198​​ 58.37​​​​​​Vested and exercisable, end of year​ 5,722,467​$ 58.24Reserved 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 million from options and SSARs exercised during 2025, 2024 and 2023, respectively, and the intrinsic value associated with these exercises was $18 million, $22 million and $35 million for the same periods, respectively. The excess tax benefit associated with the company’s stock compensation programs was $2 million for 2025, and was reported as a discrete item in the consolidated tax provision. The total fair value of options and SSARs vested during 2025, 2024 and 2023 was $18 million, $19 million and $19 million, respectively.​Based on the Black-Scholes option pricing model, options granted in 2025, 2024 and 2023 have estimated weighted average fair values at the date of grant of $16.27 per share, $17.97 per share and $16.95 per share, respectively. The fair values were estimated using the following weighted average assumptions:​​​​​​​​​​​2025 Grants​2024 Grants​2023 Grants​​​​​​​​​Expected dividend yield​ 1.56% 1.42% 1.

14. Leases​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​​ 2Net 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​​ 53Finance 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 assetOther assets​$ 355​$ 334Current operating lease liabilitiesOther current liabilities​​ 78​​ 79Noncurrent operating lease liabilitiesOther liabilities​​ 283​​ 265Finance leases:​​​​​​​Finance lease ROU assets, netProperty, plant and equipment, net​​ 7​​ 31Current finance lease liabilitiesShort-term debt and current portion of long-term debt​​ 2​​ 26Noncurrent finance lease liabilitiesLong-term debt​​ 6​​ 5​Weighted average remaining lease term and weighted average discount rate for the company’s 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​​ 4.8%​ 4.4%Finance leases​​ 3.6%​ 4.

​4. Acquisitions and Dispositions​Acquisition of Benepack European Production Facilities​In January 2026, the company acquired an 80 percent capital share of Benepack’s European beverage can manufacturing business from ORG Technology Co. Ltd. (ORG), for total consideration of $218 million (or €184 million), subject to customary closing adjustments. Ball paid $95 million (or €80 million) in cash for our 80 percent equity interest, with the remainder of the consideration primarily being assumed debt. ORG will retain a 20 percent ownership interest in the business. The business includes two manufacturing facilities, one in Belgium and one in Hungary, and will be consolidated into Ball’s beverage packaging, EMEA, segment. The investment further optimizes the company’s European manufacturing network as the facilities are well positioned to serve the growing demand of customers for sustainable packaging in the region.​Saudi Arabia ​On August 27, 2025, the company sold 41 percent of its 51 percent ownership in Ball United Arab Can Manufacturing Company for a total cash consideration of $71 million, of which $66 million was received upon closing. The remaining $5 million of cash was received in the fourth quarter. A gain of $81 million was recognized and is presented in business consolidation and other activities in the consolidated statement of earnings for the year ended December 31, 2025. As of December 31, 2024, the assets and liabilities of the business were presented as current assets and current liabilities held for sale. The transaction resulted in deconsolidation upon closing, with Ball retaining a 10 percent ownership interest, which is reported in other assets as an equity method investment on the consolidated balance sheet.​Aluminum Cups ​In the fourth quarter of 2024, Ball’s Board of Directors provided approval for the company to form a strategic partnership for the aluminum cups business in early 2025. As a result, Ball recorded a noncash impairment charge of $233 million to adjust the carrying value of the disposal group of our aluminum cups business to its estimated fair value less cost to sell. This charge is included in business consolidation and other activities in the consolidated statement of earnings for the year ended December 31, 2024.

Risk management and strategy​Ball Corporation is committed to maintaining a strong cybersecurity posture. We have a dedicated, globally distributed information security team that is responsible for leading information security strategy, standards and processes, which are integrated into our comprehensive enterprise risk management process, including processes related to cybersecurity risks.​The company employs a standards-based cybersecurity program aligned to the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF), including ongoing assessment and continuous improvement to address the rapidly evolving threat landscape. Ball partners closely with a strong network of third-party security partners, including conducting annual assessments of the cyber risk management program against the NIST CSF.​Our information security team has established and implemented formal processes and policies to assess, identify, and manage risks arising from cybersecurity threats, including those associated with our internal operations and the use of third-party service providers. We continually refine our approach to address evolving cybersecurity regulations, identify potential and emerging security risks (including AI-driven phishing and supply chain attacks), and implement strategies to manage these risks. Ball has developed an incident response plan that includes a cyber incident materiality assessment with appropriate leadership governance. In addition, we have aligned our incident response plan with our enterprise risk and global crisis management processes. ​In response to the ever-evolving cyber threat landscape, Ball utilizes external experts to support continuous improvement across our cyber program, processes and operations. Our collaboration with these third-parties includes regular audits, vulnerability scans, penetration tests, threat assessments, and consultation on cyber enhancements. In addition, we also augment and extend our cyber team using a select few trusted third-party partners that are integrated as members of our global operations. This provides us with expanded global security monitoring and cyber operations 24/7.​We are aware that there are potential cybersecurity risks associated with third-party service providers. Prior to engaging with third-party providers, Ball conducts thorough security assessments.

11.