01—Abstract
Summary
Summary of the 10-Q filed February 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Amcor plc (AMCR) reported a significant increase in net sales for the three and six months ended December 31, 2025, primarily driven by the acquisition of Berry Global Group, Inc. (the "Merger").
While revenue saw substantial growth due to the consolidation of Berry's operations, net income attributable to Amcor plc experienced a more modest increase, with diluted EPS showing a decline for the quarter. This is largely attributable to increased operating expenses, including higher amortization of acquired intangible assets, increased restructuring, transaction, and integration costs, and higher interest expenses resulting from the Merger. The company is actively managing integration costs and pursuing synergies from the Berry acquisition, with a target of realizing approximately $530 milliona in pre-tax synergies by the end of fiscal year 2028.
Amcor also announced a strategic review of its portfolio, identifying businesses with $2.5 billionb in sales for further evaluation, which could lead to divestitures or restructuring. Despite the increased debt load from the acquisition, the company maintains investment-grade credit ratings and believes it has sufficient liquidity for its operations.
02—Key points
Key Highlights
- Net sales increased by 68% for the three months and 70% for the six months ended December 31, 2025, largely due to the acquisition of Berry Global Group, Inc.
- Net income attributable to Amcor plc increased by 9% for the quarter and 24% for the six months, but diluted EPS decreased by 32% for the quarter, primarily due to increased expenses related to the Berry acquisition.
- Restructuring, transaction, and integration expenses increased significantly to $118 million for the quarter and $193 million for the six months, driven by the Berry Plan and associated integration activities.
- Amcor is undertaking a strategic review of its portfolio, identifying $2.5 billion in sales for potential restructuring or divestiture to enhance value.
- The company incurred higher interest expenses of $169 million for the quarter and $337 million for the six months, mainly due to additional debt issued and assumed in connection with the Berry acquisition.
- Goodwill increased by $613 million to $11,889 million as of December 31, 2025, reflecting the allocation of purchase price from the Berry acquisition.
- Amcor maintains investment-grade credit ratings and has sufficient liquidity to fund operations, capital expenditures, and other commitments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Amcor plc kept $0.03.
- Revenue$5.45B100.0%
- Cost of revenue−$4.41B80.9%
- Gross profit$1.04B19.1%
- Operating costs−$708.0M13.0%
- Operating income$331.0M6.1%
- Interest, other & tax−$154.0M2.8%
- Net income$177.0M3.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed February 4, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $5.45B$3.24B | +68.1% |
| Cost of Revenue | $4.41B$2.62B | +68.6% |
| Gross Profit | $1.04B$626.00M | +66.0% |
| R&D Expenses | $38.00M$27.00M | +40.7% |
| SG&A Expenses | $440.00M$255.00M | +72.5% |
| Operating Income | $331.00M$297.00M | +11.4% |
| Net Income | $177.00M$163.00M | +8.6% |
| EPS (Basic) | $0.38$0.57 | −33.3% |
| EPS (Diluted) | $0.38$0.56 | −32.1% |
| Shares Outstanding (Basic) | 1.60M— | — |
| Shares Outstanding (Diluted) | 463.80M289.10M | +60.4% |
05—Questions
Frequently Asked Questions
What was the primary driver of the significant increase in Amcor's net sales?
The primary driver of the substantial increase in Amcor's net sales for the three and six months ended December 31, 2025, was the acquisition of Berry Global Group, Inc. (the "Merger"), which consolidated Berry's revenue into Amcor's financial statements.
Why did Amcor's diluted Earnings Per Share (EPS) decrease despite the revenue growth?
Despite increased revenue, diluted EPS decreased by 32% for the quarter due to a combination of factors stemming from the Berry acquisition. These include higher operating expenses such as amortization of acquired intangible assets, increased restructuring, transaction, and integration costs, and a significant rise in interest expense due to additional debt financing.
What is the "Berry Plan" and what are its financial implications?
The "Berry Plan" refers to the restructuring and integration activities initiated by Amcor to integrate the combined organization following the acquisition of Berry Global Group, Inc. The company has incurred significant restructuring, transaction, and integration expenses related to this plan, totaling $118 million for the quarter and $193 million for the six months ended December 31, 2025. Amcor expects to realize substantial pre-tax synergies from these activities by fiscal year 2028.
What is Amcor's strategy regarding its business portfolio?
Amcor announced a strategic review of its portfolio, identifying businesses with approximately $2.5 billion in sales for further evaluation. The company is considering various options, including restructuring, partnerships, joint ventures, or divestitures, with the goal of maximizing portfolio value. Amcor has already completed the sale of its investment in ePac Holdings, LLC subsequent to the reporting period.
06—Continue