Amcor Reports Solid Results for Quarter ended September 30, 2026
Amcor plc (AMCR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Amcor Reports Solid Results for Quarter ended September 30, 2026 Net sales of $6,129 million up 7% over prior-year Diluted EPS of $0.52; Adjusted Diluted EPS of $0.95 GAAP Net Income of $242 million Adjusted EBITDA $883 million, flat to prior year 1 Updates Outlook f
Facts are quoted from the filing text and checked against it. Details that could not be matched to the text are left out.
How this was made
The 30-second read
Why it matters
The lowered EPS outlook reflects inflationary pressure, which could prompt short‑term price weakness.
Market read
Earnings release with guidance downgrade provides a clear trading catalyst for AMCR.
What to watch
Dividend increase and progress on synergy targets may offset some of the negative sentiment.
Net sales of $6,129 million up 7% over prior-year; Diluted EPS of $0.52; Adjusted Diluted EPS of $0.95; GAAP Net Income of $242 million; Adjusted EBITDA $883 million, flat to prior year
Reported sales increased 7% and organic volume grew 1%, but GAAP and adjusted EPS declined, free cash flow was negative, and the company lowered Transition Period Adjusted EPS outlook because of higher energy and distribution costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $6.13B | – | 7% |
| Gross profitGAAP | $1.16B | – | – |
| Selling, general, and administrative expensesGAAP | $468M | – | – |
| Amortization of acquired intangible assetsGAAP | $140M | – | – |
| Research and development expensesGAAP | $41M | – | – |
| Restructuring, transaction and integration expenses, netGAAP | $62M | – | – |
| Other income, netGAAP | $6M | – | – |
| Operating incomeGAAP | $454M | – | – |
| Interest expense, netGAAP | $153M | – | – |
| Income before income taxes and equity in income of affiliated companiesGAAP | $299M | – | – |
| Income tax expenseGAAP | $58M | – | – |
| Net income attributable to Amcor plcGAAP | $242M | – | (8)% |
| Diluted earnings per share attributable to AmcorGAAP | $0.52 | – | (9)% |
| Basic earnings per share attributable to AmcorGAAP | $0.52 | – | – |
| Weighted average number of shares outstanding – BasicGAAP | 461.9M | – | – |
| Weighted average number of shares outstanding – DilutedGAAP | 464.6M | – | – |
| Adjusted EBITDAnon-GAAP | $883M | – | (3)% |
| Adjusted EBITnon-GAAP | $689M | – | – |
| Adjusted EBIT marginnon-GAAP | 11.2% | – | – |
| Adjusted net incomenon-GAAP | $440M | – | (2)% |
| Adjusted diluted EPSnon-GAAP | $0.95 | – | (2)% |
| Net cash used in operating activitiesGAAP | $527M | – | – |
| Purchase of property, plant and equipment and other intangible assetsGAAP | $301M | – | – |
| Free Cash Flownon-GAAP | −$820M | – | – |
| Adjusted Free Cash Flownon-GAAP | −$789M | – | – |
| Cash and cash equivalentsGAAP | $832M | – | – |
| Short-term debt and current portion of long-term debtGAAP | $253M | – | – |
| Long-term debt, less current portionGAAP | $14.59B | – | – |
| Net debtnon-GAAP | $14.01B | – | – |
| Trade receivables, netGAAP | $3.75B | – | – |
| Inventories, netGAAP | $3.77B | – | – |
| Property, plant, and equipment, netGAAP | $7.44B | – | – |
| Goodwill and other intangible assets, netGAAP | $18.51B | – | – |
| Total assetsGAAP | $36.85B | – | – |
| Trade payablesGAAP | $3.23B | – | – |
| Shareholders' equityGAAP | $11.74B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Global Flexible Packaging SolutionsThe pass through of movements in raw material costs had a favorable impact of approximately $316 million, or 10% on net sales. Volumes were in line with the September quarter last year, or up approximately 1% excluding volume from the sale of unconverted films in North America. | $3.36B | – | 10% |
| Global Rigid Packaging SolutionsThe pass through of movements in raw material costs had a favorable impact of approximately $119 million, or 4% on net sales. Excluding non-core business and divestitures, volumes were approximately 4% higher compared to the September quarter last year. | $2.77B | – | 3% |
Transition Period from July 1, 2026, through December 31, 2026 outlook
- NoteAdjusted EPS of $1.70 to $1.80
- NoteLeverage on December 31, 2026 of approximately 3.6x
- NoteOutlook does not take into account the impact of potential portfolio optimization actions not announced to date.
Capital returns
- The Board declared a quarterly cash dividend of 66.0 cents per share.
- The quarterly cash dividend was 65.0 cents per share in the same quarter last year, declared as 13.0 cents per share before adjusting for the 1-for-5 reverse stock split.
- Holders of CDIs trading on the ASX will receive an unfranked dividend of 94.0 Australian cents per share.
- The record date will be November 25, 2026 and the payment date will be December 16, 2026.
- Dividends paid were $300 million, compared with $294 million in the prior-year period.
- Purchase of treasury shares and tax withholdings for share-based incentive plans was $36 million, compared with $36 million in the prior-year period.
What drove it
- Organic growth was 1%, with volume growth of approximately 1% and no material price/mix impact on net sales.
- Focus categories delivered 3% volume growth.
- Volume growth was broad-based across nearly all end markets, led by pet food, foodservice and beauty and wellness, and was strongest in emerging markets.
- Raw-material-cost pass-through had a favorable impact of approximately $435 million, or 8% on net sales.
- Synergy benefits from the Berry acquisition were approximately $50 million.
- Adjusted EBIT margin was diluted by 90 basis points from increased sales dollars associated with passing through higher raw material costs.
Concerns
- Energy and distribution costs accelerated late in the quarter, creating a headwind in the Transition Period.
- Lower unconverted film volumes in North America partly offset broad-based volume growth.
- Global Rigid Packaging Solutions adjusted EBIT declined 3%, and adjusted EBIT margin was down 20 basis points to prior year on a comparable basis excluding raw-material pass-through dilution.
- Working capital impacts driven by resin price volatility related to the Middle East conflict contributed to free cash outflow of $820 million.
- The company lowered Transition Period Adjusted EPS outlook to $1.70 to $1.80 from $1.80 to $1.90.
What to watch
- The timing and effectiveness of actions to address higher energy and distribution costs.
- Progress toward the three-year $650 million synergy target.
- Transition Period Adjusted EPS performance against the $1.70 to $1.80 outlook.
- Leverage at December 31, 2026 relative to the approximately 3.6x expectation.
- Working-capital effects from resin-price volatility and the pace of free-cash-flow recovery.
- Global Rigid Packaging Solutions volume and adjusted EBIT-margin performance.
Balance sheet and cash flow
- Net cash used in operating activities was $527 million, compared with $133 million in the prior-year period.
- Changes in operating assets and liabilities, excluding effect of acquisitions, divestitures, and currency were $(1,175) million, compared with $(718) million in the prior-year period.
- Purchase of property, plant and equipment and other intangible assets was $301 million, compared with $238 million in the prior-year period.
- Net debt proceeds were $877 million, compared with $696 million in the prior-year period.
- Net decrease in cash and cash equivalents was $283 million, compared with $2 million in the prior-year period.
- Cash and cash equivalents were $832 million at September 30, 2026, compared with $1,115 million at June 30, 2026.
- Net debt was $14,011 million at September 30, 2026, compared with $12,897 million at June 30, 2026.
- Free cash outflow of $820 million included approximately $31 million of Berry related net restructuring and integration costs.
Analysis
Amcor reported $6,129 million of net sales, up 7% from $5,745 million. Constant-currency sales growth was 6%, while organic growth was 1%. Volumes increased approximately 1%, or approximately 1.5% excluding non-core and divested businesses. Raw-material-cost pass-through contributed approximately $435 million, or 8% of net sales, while divestitures reduced sales by approximately $112 million, or 2%. Price/mix did not have a material impact on net sales.
Profitability was mixed. GAAP operating income declined to $454 million from $461 million, GAAP net income attributable to Amcor declined to $242 million from $262 million, and diluted EPS declined to $0.52 from $0.57. Adjusted EBITDA was $883 million versus $909 million, while adjusted EBIT was $689 million versus $687 million. Adjusted EBIT margin was 11.2%, with 90 basis points of dilution from higher sales dollars associated with raw-material pass-through. Excluding that effect, adjusted EBIT margin was 12.1%, up 10 basis points on a comparable basis.
Global Flexible Packaging Solutions generated $3,359 million of sales, up 10%, and adjusted EBIT of $414 million, up 1%. Global Rigid Packaging Solutions generated $2,770 million of sales, up 3%, but adjusted EBIT declined 3% to $303 million. Berry acquisition synergies, stated at approximately $50 million for the company, and higher volumes supported earnings, but incentive rebuild and the delayed pass-through of higher energy and distribution costs limited the result.
Cash flow was the principal weak point. Net cash used in operating activities was $527 million and free cash flow was $(820) million, compared with $(343) million in the prior-year period. The company cited working-capital impacts driven by resin-price volatility related to the Middle East conflict. Net debt rose to $14,011 million at September 30, 2026 from $12,897 million at June 30, 2026. Amcor nevertheless declared a quarterly cash dividend of 66.0 cents per share.
The company lowered its Transition Period Adjusted EPS outlook to $1.70 to $1.80 from $1.80 to $1.90 because of the timing of pass-through of higher energy and distribution costs. It now expects leverage at December 31, 2026 of approximately 3.6x, compared with its previous expectation of 3.5 - 3.6x. Management said actions to address inflationary pressures are underway and stated that it does not expect these higher costs to impact 2027 results.
Management, verbatim
We delivered solid operating results this quarter, with broad-based organic volume growth of 1%, led by 3% volume growth in the focus categories. Synergy realization was in line with expectations, and we are on track to achieve our three-year $650 million target. Energy and distribution costs accelerated late in the quarter, which is creating a headwind in the transition period. Actions to address these inflationary pressures are underway, and we do not expect these higher costs to impact 2027 results.
Peter Konieczny, Amcor CEO
Not in the filing
stated, not guessed- GAAP gross margin was not reported.
- A prior earnings release or prior outlook section was not provided for a formal actual-versus-prior-guidance comparison.
- Transition Period revenue guidance was not reported.
- Transition Period gross-margin guidance was not reported.
- Transition Period operating-expense guidance was not reported.
- Transition Period tax-rate guidance was not reported.
- Share repurchase authorization or program guidance was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Amcor reported a 7% YoY increase in net sales, modest volume growth, and a quarterly dividend raise, but highlighted higher energy and distribution costs.
Ticker impact
Amcor disclosed Q3 2026 results and lowered its Adjusted EPS outlook to $1.70‑$1.80 for the transition period.
likely pressure as the market prices in the reduced EPS outlook
Guidance reduction signals higher cost headwinds and may trigger sell‑offs despite solid top‑line growth.
Market effects
Packaging sector may see modest downside as cost inflation concerns spread.
Limited to markets where Amcor trades (US and Australia).
Low; impact confined to Amcor and peers.
Counterpoint
If volume growth sustains and cost pass‑through remains limited, the stock could rebound despite the guidance cut.
Key entities
- companyAmcor plc
Global packaging solutions provider.
