01—Abstract
Summary
Summary of the 8-K filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Amcor reported third-quarter fiscal 2026 results (three months ended March 31, 2026) that reflect the first full year of integration with Berry Global, which closed April 30, 2025.
Net sales rose 77% reported to $5,914 milliona, with approximately $2.4 billion of acquired sales; underlying organic growth was roughly -1%, with volumes about 1.5% lower on a combined basis. Adjusted EBITDA reached $892 million (15.1% margin, up from 14.3%), adjusted EBIT was $687 million, and adjusted EPS was $0.96, up 6%. GAAP diluted EPS was $0.60 versus $0.68 a year earlier, reflecting higher amortization of acquired intangibles and restructuring/integration costs.
Synergies of $77 millionb in the quarter were at the upper end of expectations, and six divestitures have been agreed under the portfolio optimization program. Cash generation was the soft spot. Free cash flow was negative $39 million in the quarter after roughly $78 million of transaction, restructuring and integration costs, and net debt rose to $14,266 million.
Management revised fiscal 2026 free cash flow guidance down to $1.5c-1.6 billion from $1.8-1.9 billion, citing higher inventory held to protect customer service amid the Middle East conflict, which the company says is also a headwind to the business environment. Adjusted EPS guidance was set at $3.98-$4.03 (about 12% growth at the midpoint), which the company describes as mitigating the Middle East impact and including $270 million of pre-tax Berry synergies for the year.
The Board declared a quarterly dividend of 65.0 cents per share, up from 63.75 cents a year earlier on a post-reverse-split basis (1-for-5 reverse split effective January 14, 2026). Investors should weigh the strong earnings-line growth and synergy delivery against weak free cash flow, rising leverage, and a lowered cash outlook, with the share count now much higher following the Berry transaction's dilution effects on per-share comparisons.
02—Key points
Key Highlights
- Net sales of $5,914 million, up 77% reported (about 71% from acquisitions), with organic growth of roughly -1% and volumes down about 1.5% on a combined basis.
- Adjusted EBITDA of $892 million, up 87%, with margin expanding to 15.1% from 14.3%; adjusted EBIT of $687 million, up 79%.
- Adjusted EPS of $0.96, up 6%; GAAP diluted EPS of $0.60 versus $0.68 a year earlier.
- Berry synergies of $77 million in the quarter, at the upper end of expectations; full-year pre-tax synergy target of $270 million.
- Free cash flow of negative $39 million in the quarter; fiscal 2026 FCF guidance cut to $1.5-1.6 billion from $1.8-1.9 billion due to higher inventory amid the Middle East conflict.
- Net debt rose to $14,266 million at March 31, 2026; six divestiture agreements reached under the portfolio optimization program.
- Fiscal 2026 adjusted EPS guidance of $3.98-$4.03 (about 12% growth at midpoint); quarterly dividend declared at 65.0 cents per share.
03—Questions
Frequently Asked Questions
Why did Amcor cut its free cash flow guidance?
The company lowered fiscal 2026 free cash flow guidance to $1.5-1.6 billion from $1.8-1.9 billion. The prior outlook assumed about $200 million of inventory reduction by year-end, but management now expects higher inventory at higher cost to maintain customer service levels given the Middle East conflict.
How much of the revenue growth came from the Berry acquisition?
Most of it. Reported net sales grew 77%, and acquired sales of about $2.4 billion net of divestments account for roughly 71 percentage points of growth. Organic growth was about -1%, with volumes down about 1.5% on a combined basis and price/mix roughly flat to slightly positive.
Why did GAAP EPS fall while adjusted EPS rose?
GAAP diluted EPS was $0.60 versus $0.68 last year because GAAP results include higher amortization of acquired intangibles ($134 million in the quarter versus $37 million), restructuring and integration costs ($65 million), and other transaction-related items. Adjusted EPS excludes these items, rising 6% to $0.96. The larger share count after the Berry transaction also weighs on per-share comparisons.
Is the dividend changing?
The Board declared a quarterly dividend of 65.0 cents per share, payable June 17, 2026 to holders of record on May 28, 2026, compared with 63.75 cents a year earlier on a split-adjusted basis (12.75 cents before the 1-for-5 reverse split). This signals the Board's confidence in long-term free cash flow generation, though free cash flow guidance was lowered.
What are the main risks flagged for investors?
Key risks include the Middle East conflict's effect on inventory, costs and customer demand; volume softness in North America and Europe, particularly in rigid packaging and healthcare; rising net debt (now $14.3 billion) and higher interest expense; and execution risk on synergy delivery and the portfolio divestiture program.
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