Josh Spector's questions to CROWN HOLDINGS (CCK) leadership • Q3 2025
Question
Josh Spector asked for clarification on free cash flow deployment, specifically if Crown Holdings intends to reduce gross debt levels or if the plan is to refinance and prioritize buybacks. He also inquired about the impact of the Novelis fire on Crown's volumes and the broader industry.
Answer
SVP and CFO Kevin Clothier clarified that the cash on the balance sheet is intended to pay off debt coming due, maintaining the net leverage ratio around 2.5x without needing to 'lever up.' President and CEO Tim Donahue added that the company expects to remain around the 2.5x target even after dividends and buybacks. Regarding the Novelis fire, Donahue stated that the direct impact on Crown is not as large as on others, but they are monitoring indirect impacts, such as Novelis potentially shifting production to can sheet, and do not foresee a negative impact on Crown over the next several months.