Amcor Q4 fiscal 2026 earnings: Berry synergies lifted profit despite soft organic sales

Amcor (NYSE: AMCR) reported fiscal 2026 fourth-quarter net sales of $6.398 billion, up 26% year over year, while GAAP diluted EPS improved to $0.83 from a loss of $0.10 for the quarter ended June 30, 2026. The Berry acquisition and raw-material cost pass-throughs accounted for most of the revenue increase, while approximately $100 million of acquisition synergies and productivity initiatives helped adjusted EBIT grow faster than sales. Free cash flow increased to $1.396 billion.

Core earnings data

Acquired sales net of divestitures added approximately $962 million, or 19 percentage points, to reported revenue growth. Raw-material cost pass-throughs contributed another $280 million, or six points, and currency added approximately two points, while the combined impact of volume and price/mix reduced growth by one point.

Profit growth was faster than revenue growth. Adjusted EBIT rose 37% to $836 million, including $96 million from acquisitions net of divestitures, a favorable currency effect and benefits from Berry synergies and cost-productivity programs.

All figures are GAAP unless identified as adjusted. Prior-period share and per-share figures were retroactively adjusted for Amcor’s 1-for-5 reverse stock split effective January 14, 2026.

Business and segment performance

Rigid Packaging produced the larger sales increase and margin expansion, supported by acquired operations, synergies and cost reductions. Flexible Packaging delivered more modest volume and margin gains.

Flexible Packaging sales grew 16% in constant currency. Acquired sales net of divestitures contributed about 10 percentage points, while raw-material pass-throughs added six points. Estimated combined volumes increased approximately 1%, led by pet food and protein products, North America and emerging-market growth in Asia; healthcare volumes declined, and price/mix was unfavorable by approximately 1%.

Rigid Packaging sales increased 35% in constant currency, with acquired sales contributing approximately 32 points and raw-material pass-throughs adding four points. Excluding non-core businesses, estimated combined volumes increased about 0.5% as foodservice and beauty and wellness gains were partly offset by lower liquids volumes. Adjusted EBIT grew 57% in constant currency as acquired earnings, synergies and productivity measures outweighed the modestly negative combined effect of volume and price/mix.

Synergies, not organic sales, drove the earnings acceleration

The 26% reported revenue increase did not reflect comparable demand growth of the same magnitude. Organic sales declined 1%, and estimated combined core volumes increased only about 0.5%, with unfavorable price/mix offsetting the volume gain. Acquisitions, raw-material pass-throughs and currency therefore generated essentially all reported sales growth.

Profitability nevertheless improved beyond the acquisition contribution. Adjusted EBIT increased 37%, and its margin rose to 13.1% from 12.0%, reflecting approximately $100 million of Berry synergies and cost-productivity benefits. Adjusted net income rose 40% to $570 million, but adjusted EPS increased 23% because diluted weighted-average shares grew approximately 14% to 464.6 million following the combination.

Profitability, cash flow and balance sheet

The GAAP operating-income comparison was amplified by lower restructuring, transaction and integration expenses, which declined to $36 million from $236 million. This reduction, together with higher adjusted operating earnings, helped operating income rise to $646 million from $87 million.

Quarterly adjusted free cash flow was $1.424 billion before $28 million of Berry transaction and integration costs, resulting in reported free cash flow of $1.396 billion. Amcor’s reconciliation included an $849 million working-capital contribution, compared with $744 million a year earlier.

At June 30, 2026, net debt was $12.897 billion, down from $13.271 billion a year earlier, while cash increased to $1.115 billion from $827 million. Quarterly GAAP net interest expense rose to $150 million from $125 million, with management attributing the increase in adjusted interest expense mainly to acquisition-related debt. For the full fiscal year, operating cash flow was $2.151 billion and free cash flow was $1.303 billion after approximately $290 million of net transaction, restructuring and integration costs.

Earnings guidance

Amcor is moving from a June 30 fiscal year-end to a December 31 year-end. It therefore provided guidance for a six-month transition period running from July 1 through December 31, 2026 rather than a conventional 12-month fiscal year.

The outlook excludes potential portfolio-optimization actions that had not been announced and incorporates elevated uncertainty from ongoing geopolitical developments.

Management’s view

CEO Peter Konieczny said Amcor generated broad-based volume growth despite a difficult macroeconomic environment and unusually high input-cost inflation. Management also said Berry synergies were realized ahead of plan and that non-core businesses improved substantially. The company expects further integration and synergy capture as it completes the Berry combination.

Risks investors should monitor

• Limited organic sales growth: Organic revenue declined 1%, with unfavorable price/mix and weakness in categories including healthcare and liquids. Continued softness would make future growth more dependent on synergies and underlying volume improvement.
• Berry integration execution: Approximately $100 million of quarterly synergies supported earnings, but Amcor still incurred transaction and integration costs. Delivering additional benefits remains important to maintaining margin momentum.
• Debt and interest expense: Net debt remained $12.897 billion, and quarterly interest expense increased. Progress toward the December leverage target will affect financial flexibility and cash available after debt service.
• Input-cost and geopolitical uncertainty: Raw-material pass-throughs added $280 million to quarterly sales, showing the scale of input-cost movements. Amcor also identified geopolitical developments as a source of added uncertainty in its transition-period outlook.

Summary

Amcor’s fiscal 2026 fourth quarter was shaped primarily by the Berry acquisition rather than a major acceleration in organic demand. Acquired revenue, raw-material pass-throughs and synergies lifted sales, margins, earnings and cash flow, while a larger share count limited per-share growth relative to adjusted net income. The next key measures are continued synergy capture, underlying volume and price/mix trends, and progress toward the company’s year-end leverage target.