Amcor — Q1 2026 Earnings Summary

Financial Performance:

• Net sales reached $6,129 million, a 7% increase year-over-year (6% on a constant currency basis), including an unfavorable impact of approximately $112 million (2%) from divestitures.
• GAAP net income was $242 million, down 8% from $262 million in the prior year; diluted EPS was $0.52, down 9% from $0.57.
• Adjusted EBITDA was $883 million, flat to the prior year ($909 million); Adjusted EBIT was $689 million, flat to the prior year ($687 million).
• Adjusted net income was $440 million, down 2% from $448 million; Adjusted diluted EPS was $0.95, down 2% from $0.97.
• Free cash flow was an outflow of $820 million, compared to an outflow of $343 million in the prior year, driven by working capital impacts from resin price volatility related to the Middle East conflict.
• Net debt stood at $14,011 million at September 30, 2026.
• Adjusted EBIT margin was 11.2%, impacted by 90 basis points of dilution from raw material cost pass-throughs; excluding this impact, the margin was 12.1%, up 10 basis points year-over-year.

Guidance and Future Outlook:

• For the six-month Transition Period (July 1, 2026, through December 31, 2026), the company lowered Adjusted EPS guidance to $1.70–$1.80 from the previous $1.80–$1.90 range due to the timing of higher energy and distribution cost pass-throughs.
• The company now expects leverage on December 31, 2026, to be approximately 3.6x, up from a previous expectation of 3.5x–3.6x.
• Management does not expect higher energy and distribution costs to impact 2027 results, noting that actions to address inflationary pressures are underway.
• Outlook contemplates ongoing geopolitical developments and portfolio optimization actions not yet announced.

Business Segments and Product Lines:

• Global Flexible Packaging Solutions: Net sales were $3,359 million (up 10% reported and constant currency); Adjusted EBIT was $414 million (up 1%); Adjusted EBIT margin was 12.3% (excluding raw material pass-through impact, margin was 13.6%, up 20 basis points). Volumes were in line with the prior year; excluding unconverted film sales in North America, volumes were up 1%.
• Global Rigid Packaging Solutions: Net sales were $2,770 million (up 3% reported, 2% constant currency), including a $107 million (4%) unfavorable impact from divestitures; Adjusted EBIT was $303 million (down 3%); Adjusted EBIT margin was 10.9% (excluding raw material pass-through impact, margin was 11.4%, down 20 basis points). Excluding non-core business and divestitures, volumes were up 4%.
• Synergy realization from the Berry acquisition was in line with expectations, contributing approximately $50 million to the overall Adjusted EBIT variance.
• The company is on track to achieve its three-year $650 million synergy target.

Market and Competitive Landscape:

• Volume growth was broad-based across nearly all end markets, led by pet food, foodservice, and beauty and wellness.
• Emerging markets led volume increases across all geographies.
• Lower unconverted film volumes in North America partially offset growth.
• Price/mix did not have a material impact on net sales.

Risks and Challenges:

• Energy and distribution costs accelerated late in the quarter, creating a headwind during the transition period.
• Working capital impacts were driven by resin price volatility related to the Middle East conflict.
• Geopolitical developments create a higher degree of uncertainty and complexity for future financial estimates.
• The company faces risks related to raw material price fluctuations, energy costs, and the integration of the Berry acquisition.

Management Commentary and Tone:

• CEO Peter Konieczny stated the company delivered "solid operating results" with broad-based organic volume growth of 1%.
• Management expressed confidence in delivering on medium and long-term financial commitments and driving long-term sustainable volume growth.
• The tone was confident regarding the trajectory of synergy realization and the expectation that current cost headwinds will not persist into 2027.

Other Key Points:

• The Board declared a quarterly cash dividend of 66.0 cents per share, a one-cent increase from the prior year's 65.0 cents (adjusted for the 1-for-5 reverse stock split).
• The dividend payment date is December 16, 2026; ex-dividend dates are November 24, 2026 (ASX) and November 25, 2026 (NYSE).
• A 1-for-5 reverse stock split was effected on January 14, 2026, with all prior periods retroactively adjusted.
• Net interest expense was $153 million, $13 million higher than the prior year adjusted figure, primarily due to higher interest rates.
• The company is transitioning from a June 30 to a December 31 year-end, resulting in the six-month Transition Period.