CROWN HOLDINGS, INC.

Crown Holdings, Inc. is a leading global diversified packaging business that manufactures metal cans and ends (aluminum and steel) for the beverage, food, and aerosol industries and a wide range of transit packaging products and solutions from multiple substrates including steel, paper, and plastic. The transit packaging products include automation and equipment technologies, protective packaging solutions, and steel and plastic consumables sold into the metals, food and beverage, construction, agricultural, corrugated, and general industries. At December 31, 2025, the Company operated 179 plants along with sales and service facilities throughout 39 countries and had approximately 23,000 employees. Approximately 73% of the Company's consolidated net sales were derived from the Company's global beverage can business. The beverage can continues to disproportionately be the package of choice for new beverage product introductions.

Most of the Company's packaging products for consumer goods are sold in highly competitive markets, primarily based on price, quality, service, and performance. The Company competes with other packaging manufacturers as well as with fillers, food processors and packers, some of whom manufacture containers for their own use and for sale to others. Competitors include, but are not limited to, Ardagh Metal Packaging, Ball Corporation, Baosteel Packaging, Can-Pack S.A., Metal Container Corporation, Silgan Holdings Inc., Sonoco, and Trivium Packaging. Transit Packaging differentiates itself from the competition by leveraging its global scale, broad product portfolio and established brand reputation. The Company's top ten global customers represented in the aggregate approximately 48% of its 2025 consolidated net sales. For the years ended December 31, 2025, 2024 and 2023, one customer accounted for approximately 12%, 12%, and 11%, respectively, of the Company's consolidated net sales, and another customer accounted for approximately 11%, 12%, and 12%, respectively, of the Company's consolidated net sales.

The Company generates revenue primarily through the manufacture and sale of metal cans and ends (aluminum and steel) for the beverage, food, and aerosol industries, as well as transit packaging products including automation and equipment technologies, protective packaging solutions, and steel and plastic consumables. Global marketers qualify suppliers on the basis of their ability to provide quality service, innovation, and technologies in a cost-effective manner. With its global reach, the Company primarily markets and sells products to customers through its own sales and marketing staff. In some instances, contracts with customers are centrally negotiated, but products are ordered through and distributed directly by the Company's local facilities. Many customers provide the Company with quarterly or annual estimates of product requirements along with related quantities pursuant to which periodic commitments are given. Because the production time for the Company's rigid packaging products is short, any backlog of customer orders in relation to overall sales is not significant.

The Americas Beverage segment manufactures infinitely recyclable aluminum beverage cans and ends, glass bottles, steel crowns and aluminum caps, with manufacturing facilities located in the U.S., Brazil, Canada, Colombia, and Mexico. Americas Beverage had net sales in 2025 of $5.6 billion ¹ and segment income of $1,030 million ². The European Beverage segment manufactures infinitely recyclable aluminum beverage cans and ends in Europe, the Middle East, and North Africa, with net sales in 2025 of $2.3 billion ³ and segment income of $334 million ⁴. The Asia Pacific segment manufactures infinitely recyclable beverage cans and ends, food cans, and specialty packaging in Cambodia, China, Indonesia, Malaysia, Myanmar, Thailand, and Vietnam, with net sales in 2025 of $1.1 billion ⁵ and segment income of $183 million ⁶. In February 2026, the Company sold the Myanmar beverage can plant, a sale not expected to have a material impact on the Company's results of operations or cash flows.

The Transit Packaging segment includes the Company's worldwide automation and equipment technologies, protective packaging solutions, and steel and plastic consumables. Automation and equipment technologies include manual, semi-automatic, and automatic equipment and tools primarily used in end-of-line operations to apply and remove consumables such as strap and film. Protective solutions include standard and purpose designed products such as airbags, edge protectors, and honeycomb products that help prevent movement of or damage to industrial and consumer goods during transport. Steel and plastic consumables include steel strap, plastic strap, industrial film and other related products used across a wide range of industries. The Transit Packaging segment had net sales in 2025 of $2.0 billion ⁷ and segment income of $258 million ⁸. The Company's other segments include the North America tinplate businesses: food can, aerosol can, and closures, and beverage tooling and equipment operations in the U.S. and the United Kingdom.

The Company spent $33 million ⁹ in 2025, $32 million ¹⁰ in 2024, and $33 million ¹¹ in 2023 in its Research, Development & Engineering activities. The Company's Twenty by 30 program, a comprehensive sustainability strategy outlining twenty measurable goals to be achieved by 2030, has accelerated critical initiatives and progress around carbon footprint management and efficient use of resources. The Company's updated near-term and new net-zero targets have been officially validated by the Science Based Targets initiative, formalizing the ambition to reach net-zero greenhouse gas emissions across the value chain by 2050. The Company commissioned additional water replenishment projects to replenish water used in high water stress regions, including Brazil, Greece and Mexico. The Company continues to rank in line with or above average compared to peers in the industry with a low-risk rating from Sustainalytics, Prime status from ISS Corporate Rating, and another year ranked AA from MSCI.

In 2025, consolidated net sales for the Company were $12.4 billion ¹² with 61% ¹³ derived from operations outside the United States. Consumption of aluminum and steel represented 47% ¹⁴ and 8% ¹⁵, respectively, of consolidated cost of products sold, excluding depreciation and amortization. The Company's international operations generated approximately 61% ¹⁶ of its consolidated net sales in the year ended 2025 and 63% ¹⁷ of its consolidated net sales in the years ended 2024 and 2023.

The Company's business strategy includes continued expansion of international activities, including within developing markets and areas, such as the Middle East, South America, Eastern Europe, and Asia, that may pose political and economic volatility and instability. The Company has deployed capital to expand production capacity in its global beverage can operations to support growing customer demand in both the alcoholic and non-alcoholic drink categories serving local, regional and global customers. The Company continues to drive innovation by increasing its ability to offer multiple specialty can sizes, including slim and sleek cans, to help customers differentiate their products, and continues to deliver new printing and decorating capabilities, as well as services that aid customers throughout the entire production cycle, from consultation and development to line implementation and quality assurance.

The Company continues to leverage the inherent eco-friendly benefits of its primary product, metal packaging, to advance toward its targets under the Twenty by 30 program. Both aluminum and steel cans are infinitely recyclable, and aluminum beverage cans remain the world's most recycled beverage packaging. The Company is working in conjunction with industry partners to drive higher recycling rates and increase recycled content to ensure infinitely recycled metal packaging is available for generations of future use. Transit Packaging uses recycled materials in its paper, cardboard, and strapping products. Through the Twenty by 30 program, the Company has committed to sourcing standards that by 2030 or sooner require 100% of core raw materials and service suppliers, by spend, to be assessed and comply with Crown Responsible and Ethical Sourcing policies and requirements.

The Company continues to manage the challenges of supply chain disruptions and fluctuating costs for raw materials and energy. While certain, but not all, of the Company's contracts pass through raw material costs to customers, the Company may be unable to increase its prices to offset increases in raw material costs without suffering reductions in unit volume, revenue and operating income. The Company also uses commodity forward contracts to manage its exposure to these raw material costs. The ability to mitigate inflationary risks through these measures varies by region. The Company generally attempts to mitigate its aluminum and steel price risk by matching its purchase obligations with its sales agreements; however, there can be no assurance that the Company will be able to fully mitigate that risk.

The Company historically uses cash during the first nine months of the year to finance seasonal working capital needs. Beverage products are generally consumed in greater amounts during the warmer months and the food packaging business is somewhat seasonal with the first quarter tending to be the slowest period as the autumn packaging period in the Northern Hemisphere has ended and new crops are not yet planted. The Company's working capital requirements are funded by cash flows from operations, revolving credit facilities and receivables securitization and factoring programs.

The Company spent $33 million ¹⁸ in 2025, $32 million ¹⁹ in 2024, and $33 million ²⁰ in 2023 in its Research, Development & Engineering activities. The Company's raw material supply contracts vary as to terms and duration, with aluminum contracts typically multi-year in duration with fluctuating prices based on aluminum ingot and regional premium costs and steel contracts typically one year in duration with fixed prices or set repricing dates.

The Company's international operations generated approximately 61% ²¹ of its consolidated net sales in the year ended 2025 and 63% ²² of its consolidated net sales in the years ended 2024 and 2023. The Company's business strategy includes continued expansion of international activities, including within developing markets and areas, such as the Middle East, South America, Eastern Europe, and Asia, that may pose political and economic volatility and instability, greater vulnerability to infrastructure and labor disruptions and differing local customer product preferences and requirements than the Company's other markets.

The Company's principal markets may be subject to overcapacity and intense competition, which could reduce the Company's net sales and net income. Beverage and food cans are standardized products, allowing for relatively little differentiation among competitors, which could lead to overcapacity and price competition if capacity growth outpaced the growth in demand. The Company is subject to substantial competition from producers of alternative packaging made from glass, paper, flexible materials and plastic. Changes in preferences for products and packaging by consumers of beverage cans and prepackaged food cans significantly influence the Company's sales. Increases in the price of aluminum and steel and decreases in the price of plastic resin may increase substitution of plastic food and beverage containers for metal containers.

The Company's profits will decline if the price of raw materials or energy rises and it cannot increase the price of its products. In 2025, consumption of aluminum and steel represented 47% ²³ and 8% ²⁴ of consolidated cost of products sold, excluding depreciation and amortization. The Company's principal markets may be subject to overcapacity and intense competition, which could reduce net sales and net income, as beverage and food cans are standardized products allowing for relatively little differentiation. The Company is subject to competition from substitute products made from glass, paper, flexible materials and plastic, and changes in consumer preferences could result in lower profits. The Company's international operations generated approximately 61% ²⁵ of consolidated net sales in 2025, exposing the Company to risks including political and economic volatility in emerging markets such as the Middle East, South America, Eastern Europe, and Asia. The Company has a significant amount of goodwill, with a carrying value of $3.2 billion ²⁶ at December 31, 2025, which if impaired would result in lower reported net income and a reduction of net worth.

Management's message emphasizes the Company's commitment to its stakeholders and its own goals to foster a resilient business with longevity, which requires an emphasis on financial performance and sustainability. The Company is guided by the Twenty by 30 program, a comprehensive sustainability strategy that outlines twenty measurable goals to be achieved by 2030, which has accelerated critical initiatives and progress around carbon footprint management and efficient use of resources. The Company's updated near-term and new net-zero targets have been officially validated by the Science Based Targets initiative, formalizing the ambition to reach net-zero greenhouse gas emissions across the value chain by 2050. The Company continues to leverage the inherent eco-friendly benefits of its primary product, metal packaging, to advance toward its targets. The strategic priorities emphasized include expanding production capacity in global beverage can operations to support growing customer demand, driving innovation through multiple specialty can sizes and new printing and decorating capabilities, and advancing sustainability initiatives including recycling rates and responsible sourcing.