Analyst Note| Brian Bernard, CFA, CPA |
Narrow-moat-rated Ball reported solid revenue growth in the third quarter as demand for aluminum packaging and Ball’s aerospace technology remains high. Revenue increased 15% year over year, while up roughly 3% sequentially. Demand for aluminum packaging is strong while capacity remains tight. Ball launched 6 new lines in the quarter, and management expects to end the year with 12 billion units of new capacity. While increased capacity is encouraging, there is a risk that demand could level off or decrease, leaving Ball with a significant amount of unused capacity.