Amcor Earnings Meet Estimates in Q1, Revenues Increase Y/Y

Amcor Plc (AMCR) reported first-quarter fiscal 2026 (ended Sept. 30, 2025) adjusted earnings per share (EPS) of 19 cents, which met the Zacks Consensus Estimate. The bottom line grew 19% from the year-ago quarter. This is the first complete quarter of operations following the merger between Amcor and Berry Global.

Including special items, the company reported net earnings per share of 11 cents compared with 13 cents in the prior-year quarter.

Amcor PLC Price, Consensus and EPS Surprise

 

Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote

Total revenues surged 71.3% year over year to $5.75 billion in the reported quarter.. The top line missed the Zacks Consensus Estimate of $5.83 billion.

Around 70% of the growth was attributed to the acquisition. The price/mix had 1% positive impact on sales. The volume was down 3% from the year-ago quarter. The top line had a 1% impact of pass-through of lower raw material costs.

Amcor’s Q1 Cost & Margins

The cost of sales surged 71.5% year over year to $4.62 billion. Gross profit soared 70.6% year over year to $1.12 billion. The gross margin was 19.6% compared with the year-ago quarter’s 19.7%.

SG&A expenses were $435 million, up 57.6% year over year. Adjusted operating income was $687 million in the quarter, up 88.2% from $365 million in the prior-year quarter. The adjusted operating margin was 12% compared with 10.9% in the prior-year quarter. Adjusted EBITDA in the quarter was $909 million compared with $466 million in the prior-year quarter.

AMCR’s Q1 Segmental Performance

Global Flexible Packaging Solutions: Net sales increased 27.6% year over year to $3.26 billion. Volume fell 2.8% year over year, while the price/mix was a favorable 2% and the acquisition contributed 25%. Our model projected net sales of $3.63 billion.

The segment’s adjusted operating income came in at $426 million compared with the prior-year quarter’s $329 million, reflecting favorable cost performance and synergy benefits from the Berry Global acquisition. This was somewhat negated by lower volumes.

Global Rigid Packaging Solutions: The segment reported net sales of $2.49 billion in the quarter, skyrocketing 211% from the year-ago quarter. The acqusition contributed 215% to the growth. However, volume was down 5% year over year, and the price/mix had a favorable impact of 1%. We had projected net sales at $2.17 billion.

The segment’s adjusted operating income came in at $295 million compared with the prior-year quarter’s $0.62 million, reflecting favorable cost performance and synergy benefits from the Berry Global acquisition.

Amcor’s Q1 Cash Flow & Balance Sheet Updates

As of Sept. 30, 2025, Amcor had $825 million of cash and cash equivalents compared with $827 million as of June 30, 2025. The company used $133 million in cash in operating activities in the first quarter of fiscal 2026 compared with $269 million in the year-ago quarter.

As of Sept. 30, 2025, Amcor’s net debt totaled $13.99 billion, up from $13.27 billion as of June 30, 2025.

AMCR’s FY26 Guidance

Adjusted EPS for fiscal 2026 is expected to be 80-83 cents. The company projects a free cash flow of $1.8-1.9 billion for fiscal 2026.

Amcor’s Price Performance

In the past year, AMCR shares have lost 16.5% compared with the industry’s 35.7% fall.

AMCR’s Zacks Rank

Amcor currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Packaging Stocks

Avery Dennison Corporation (AVY) reported third-quarter 2025 adjusted earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.32. The bottom line increased 1.7% year over year, driven by productivity gains.

Avery Dennison’s total revenues grew 1.5% year over year to $2.22 billion and beat the consensus estimate of $2.21 billion. Avery Dennison expects adjusted EPS between $2.35 and $2.45 for fourth-quarter 2025.

Packaging Corporation of America (PKG) posted adjusted earnings per share of $2.73 in the third quarter of 2025, missing the Zacks Consensus Estimate of $2.83 by 4%.

The bottom line, however, increased 3% year over year, supported by higher prices and mix in both segments, along with lower fiber costs and maintenance outage expenses. Packaging Corp’s revenues in the third quarter grew 6% year over year to $2.3 billion. The top line beat the Zacks Consensus Estimate of $2.26 billion.

Sealed Air Corporation (SEE) registered third-quarter 2025 adjusted earnings per share of 87 cents, which surpassed the Zacks Consensus Estimate of 68 cents. Sealed Air’s bottom line increased 10.1% year over year.

Sealed Air’s total revenues were $1.35 billion, which beat the Zacks Consensus Estimate of $1.31 billion. The figure rose 0.5% year over year.

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