01—Abstract
Summary
Summary of the 8-K filed February 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Amcor reported fiscal Q2 2026 (quarter ended December 31, 2025) results that were largely shaped by the April 2025 Berry Global acquisition.
Net sales rose 68% to $5,449 milliona, and adjusted EBITDA rose 83% to $826 million, with margin expanding to 15.2%. Underlying performance was weaker than the headline growth suggests: organic net sales fell 3% on volumes that were about 1.5% lower than the combined legacy Amcor and Berry base. The Rigid Packaging segment's organic sales declined 11%, offset by acquisition-driven growth.
GAAP diluted EPS was $0.38b, versus $0.56 a year earlier, reflecting $112 million of restructuring and integration costs and higher amortization of acquired intangibles. Adjusted EPS was $0.86, up 7%, and reflects $55 million of Berry synergies at the upper end of expectations. Cash generation was softer.
Free cash flow was $289 millionc after about $69 million of acquisition-related cash costs, and the six-month figure was a free cash outflow of $53 million. Net debt rose to $14,081 million from $13,271 million at June 30, 2025. Management reaffirmed fiscal 2026 guidance of adjusted EPS of $4.00 to $4.15 (on a post-reverse-split basis) and free cash flow of $1.8 to $1.9 billion.
The guidance excludes potential portfolio optimization actions. The quarterly dividend was set at $0.65d per share, up from $0.6375 a year earlier on a split-adjusted basis.
For investors, the key questions are whether synergies can keep offsetting volume weakness and whether the company can convert adjusted earnings into free cash flow given high leverage, elevated integration costs, and the planned closure of three Asian facilities. The 1-for-5 reverse stock split effective January 14, 2026 means all per-share figures in this release are restated, so comparisons with older filings require adjustment.
02—Key points
Key Highlights
- Net sales of $5,449 million, up 68% reported, driven by the Berry acquisition; organic sales declined about 3%, with volumes down about 3% on a reported basis (about 1.5% lower versus combined legacy base).
- Adjusted EBITDA of $826 million, up 83%, with margin of 15.2% versus 14.0% a year earlier; adjusted EBIT of $603 million, up 66%, with margin flat at 11.1%.
- GAAP diluted EPS of $0.38 versus $0.56 prior year; adjusted EPS of $0.86, up 7%, with constant-currency growth of 4%.
- Berry synergies of $55 million in the quarter, at the upper end of expectations; fiscal 2026 synergy target of at least $260 million pre-tax reaffirmed.
- Free cash flow of $289 million in the quarter after about $69 million of acquisition-related cash costs; six-month free cash outflow of $53 million. Net debt rose to $14,081 million.
- Fiscal 2026 guidance reaffirmed: adjusted EPS of $4.00 to $4.15 (12% to 17% constant-currency growth) and free cash flow of $1.8 to $1.9 billion; quarterly dividend declared at $0.65 per share.
- Global Rigid Packaging adjusted EBIT margin improved to 10.1%, but segment organic sales fell 11% on price/mix and non-core volume declines; the company is closing three facilities in Asia.
03—Questions
Frequently Asked Questions
How much of the headline sales growth reflects the Berry acquisition rather than underlying business performance?
Nearly all of it. Net sales grew 68% reported, but acquired sales net of divestments contributed about $2.2 billion, or roughly 66 percentage points. Organic sales declined about 3%, reflecting lower volumes and, in Rigid Packaging, weaker price/mix and non-core business volumes.
Why did GAAP EPS fall while adjusted EPS rose?
GAAP diluted EPS was $0.38, down from $0.56, because of $112 million of restructuring, integration and related expenses, $144 million of amortization of acquired intangibles, and higher interest expense from acquisition-related debt. Adjusted EPS excludes these items and rose 7% to $0.86, supported by Berry synergies and acquired earnings.
Is the company on track to meet its fiscal 2026 targets?
Management reaffirmed adjusted EPS guidance of $4.00 to $4.15 and free cash flow of $1.8 to $1.9 billion. Achieving free cash flow will require a substantial second half, since the first six months produced a $53 million outflow. Guidance assumes a full 12 months of Berry ownership and excludes potential portfolio divestitures.
What are the main concerns about the balance sheet and cash flow?
Net debt increased to $14,081 million from $13,271 million at June 30, 2025, and interest expense rose $73 million year over year. Working capital and integration costs weighed on cash flow, with six-month free cash flow negative. Investors will watch whether synergies and portfolio actions can reduce leverage over time.
How does the 1-for-5 reverse stock split affect comparisons?
All share and per-share figures in this release have been retroactively adjusted for the reverse split effective January 14, 2026. For example, the fiscal 2025 adjusted EPS base is now $3.56 (previously $0.712), and the quarterly dividend of $0.65 compares with $0.1275 before adjustment. Investors comparing with earlier filings should apply the 5x factor to per-share amounts.
04—Continue