Amcor plc
AMCR10-Q,quarter ended Mar 31, 2026,filed May 7, 2026,Original on SEC.gov (opens in a new tab)
3 of 3 checkable figures match the filing, 4 of 4 risk excerpts located in the filing text
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The Print
Amcor reported Q3 FY2026 net sales of $5,914M and net income attributable to Amcor plc of $278M, with diluted EPS of $0.60 versus $0.68 a year earlier as the diluted share count rose 60% following the Berry Merger.
The quarter reflects the first full comparative period including Berry, which Amcor acquired on April 30, 2025. Management attributes the $2,581M net sales increase to approximately $2,383M of Merger sales net of divestments and approximately $252M of positive currency impacts, with the remaining variation a decrease of approximately $47M, or 1%, on lower sales volumes of approximately 2% partly offset by favorable price/mix of approximately 1%. The 42% increase in net income attributable to Amcor plc is attributed by management mainly to increased gross profit of $536M and lower income tax expense of $8M, partly offset by higher SG&A of $222M, increased amortization of acquired intangible assets of $97M, higher interest expense, net of $78M, increased restructuring, transaction and integration expenses, net of $37M, increased research and development expenses of $17M, and lower other income, net of $15M, all primarily due to the Merger. The 12% decline in diluted EPS despite higher net income is attributed to the diluted weighted-average number of shares increasing 60%, largely due to the Merger and related share issuances.
- Net sales rose 77% to $5,914M from $3,333M, which management attributes to approximately $2,383M of Merger sales net of divestments and approximately $252M of positive currency impacts, partly offset by a 1% decline in the remaining business on lower volumes.
- Net income attributable to Amcor plc rose 42% to $278M from $196M, while diluted EPS fell 12% to $0.60 from $0.68 because the diluted weighted-average share count increased 60%.
- Operating income rose to $461M from $313M, but operating margin narrowed to 7.8% from 9.4% as amortization of acquired intangible assets rose to $134M from $37M and restructuring, transaction and integration expenses, net rose to $69M from $32M.
- Net debt rose to $14,266M at March 31, 2026 from $13,271M at June 30, 2025, and cash and cash equivalents increased to $1,587M from $827M.
Results That Matter
- Net sales
- Current period
- $5.9B
- Prior period
- $3.3B
- Change
- +77.4%
Management attributes the increase to approximately $2,383M of Merger sales net of divestments and approximately $252M of positive currency impacts, with the remaining variation a decrease of approximately $47M, or 1%, reflecting lower sales volumes of approximately 2% partly offset by favorable price/mix of approximately 1%. - Gross profit
- Current period
- $1.2B
- Prior period
- $654.0M
- Change
- +82.0%
Management states the increase was primarily driven by the Merger and synergies, with gross margin of 20.1% versus 19.6% driven by synergies and continued disciplined execution against cost and productivity initiatives. - Operating income
- Current period
- $461.0M
- Prior period
- $313.0M
- Change
- +47.3%
Operating margin narrowed to 7.8% from 9.4% as amortization of acquired intangible assets rose to $134M from $37M and restructuring, transaction and integration expenses, net rose to $69M from $32M. - Net income attributable to Amcor plc
- Current period
- $278.0M
- Prior period
- $196.0M
- Change
- unavailable
Management attributes the increase mainly to increased gross profit of $536M and lower income tax expense of $8M, partly offset by higher SG&A of $222M, increased amortization of acquired intangible assets of $97M, higher interest expense, net of $78M, increased restructuring, transaction and integration expenses, net of $37M, increased research and development expenses of $17M, and lower other income, net of $15M, all primarily due to the Merger. - Diluted earnings per share
- Current period
- $0.60
- Prior period
- $0.68
- Change
- −11.8%
Management attributes the decline to the diluted weighted-average number of shares increasing 60%, largely due to the completion of the Merger with Berry and the related share issuances, while net income available to ordinary shareholders increased 42%.Quote not found - Adjusted EBIT
- Current period
- $687.0M
- Prior period
- $384.0M
- Change
- +78.9%
The non-GAAP measure excludes amortization of acquired intangible assets from business combinations, transaction costs, restructuring, integration and related expenses, net, portfolio review expenses and other items; the filing defines and reports the total. - Adjusted net income
- Current period
- $446.0M
- Prior period
- $261.0M
- Change
- unavailable
The non-GAAP measure is reconciled from reported net income attributable to Amcor plc; the filing defines and reports the total.
| Metric | Current Period | Prior Period | Change | Investor Takeaway |
|---|---|---|---|---|
| $5.9B | $3.3B | +77.4% | Management attributes the increase to approximately $2,383M of Merger sales net of divestments and approximately $252M of positive currency impacts, with the remaining variation a decrease of approximately $47M, or 1%, reflecting lower sales volumes of approximately 2% partly offset by favorable price/mix of approximately 1%. | |
| $1.2B | $654.0M | +82.0% | Management states the increase was primarily driven by the Merger and synergies, with gross margin of 20.1% versus 19.6% driven by synergies and continued disciplined execution against cost and productivity initiatives. | |
| $461.0M | $313.0M | +47.3% | Operating margin narrowed to 7.8% from 9.4% as amortization of acquired intangible assets rose to $134M from $37M and restructuring, transaction and integration expenses, net rose to $69M from $32M. | |
| $278.0M | $196.0M | unavailable | Management attributes the increase mainly to increased gross profit of $536M and lower income tax expense of $8M, partly offset by higher SG&A of $222M, increased amortization of acquired intangible assets of $97M, higher interest expense, net of $78M, increased restructuring, transaction and integration expenses, net of $37M, increased research and development expenses of $17M, and lower other income, net of $15M, all primarily due to the Merger. | |
| $0.60 | $0.68 | −11.8% | Management attributes the decline to the diluted weighted-average number of shares increasing 60%, largely due to the completion of the Merger with Berry and the related share issuances, while net income available to ordinary shareholders increased 42%.Quote not found | |
| $687.0M | $384.0M | +78.9% | The non-GAAP measure excludes amortization of acquired intangible assets from business combinations, transaction costs, restructuring, integration and related expenses, net, portfolio review expenses and other items; the filing defines and reports the total. | |
| $446.0M | $261.0M | unavailable | The non-GAAP measure is reconciled from reported net income attributable to Amcor plc; the filing defines and reports the total. |
Earnings Quality & Cash Conversion
Reported operating income of $461M includes amortization of acquired intangible assets of $134M, restructuring, transaction and integration expenses, net of $69M, and research and development expenses of $44M. The filing defines Adjusted EBIT of $687M as EBIT of $463M adjusted for amortization of acquired intangible assets from business combinations of $134M, impact of hyperinflation of $(2)M, transaction costs of $4M, restructuring, integration and related expenses, net of $65M, portfolio review expenses of $17M, and other of $5M. The filing also reports adjusted net income of $446M. The effective income tax rate decreased to 10.3% from 16.9%, which management attributes primarily to differences in non-deductible expenditures and discrete events between the periods, including a $30M discrete benefit from the release of a previously recorded uncertain tax position in the current period.
Red flag
Red flag
Value Drivers & Capital Allocation
“In connection with the closing of the Merger, we issued approximately 846 million ordinary shares to Berry shareholders, excluding shares for Berry vested share-based payment and cash settled awards at closing, and paid $2.2 billion in connection with the required extinguishment of certain Berry indebtedness using the proceeds from the cumulative issuance of $2.2 billion in long-term debt in March 2025.”
Filing statement
“The Company continues to target realizing approximately $530 million of pre-tax synergies driven by procurement, supply chain, and general and administrative savings, $60 million in annual financial synergies and $60 million in pre-tax earnings benefits from growth synergies by the end of fiscal year 2028.”
Filing statement
“In August 2025, we announced that we are reviewing strategic alternatives to maximize the value of our portfolio and have identified businesses with combined sales of $2.5 billion, which includes our North American Beverage business, for further review given they are less aligned with one or more core portfolio attributes including attractive growth and margin profile, industry structure, and scale and leadership position.”
Filing statement
“On January 14, 2026, the Company completed the sale of its investment in ePac and its operating subsidiaries for estimated proceeds of approximately $79 million, including contingent and deferred consideration.”
Filing statement
Return on equity was 2.4% (period net income / period-end equity, not annualized); return on assets 0.7% (period net income / period-end assets, not annualized).
Forward Signals
The filing does not provide company-wide revenue or EPS guidance. It states that net cash expenditures of approximately $45 million to $55 million are expected for the balance of fiscal year 2026 for restructuring and general integration activities, with $40 million to $50 million representing payments for restructuring and related expenses, and that the Berry Plan is expected to be completed by the end of fiscal year 2028.
Known trends
- Market dynamics have remained challenging in fiscal year 2026, reflecting softer consumer demand and customer order volatility in certain markets, and cost pressures in certain areas, including labor costs.
- During the third quarter of fiscal year 2026, the escalation of conflict in the Middle East disrupted global energy markets, resulting in higher energy prices, which have had an unprecedented impact on the cost of certain raw materials used in the manufacturing and transportation of our products.
- The evolving geopolitical situation has also contributed to disruptions in global logistic networks and heightened supply-chain risks, particularly in Asia.
Subsequent events
- Subsequent to the end of the third quarter of fiscal year 2026, the Company completed the sale of two of the five businesses classified as held for sale and executed agreements to sell the remaining three.
“In response to these conditions, we have remained focused on executing price and cost actions to mitigate the impact of cost inflation and on aligning our cost base with prevailing market conditions, and we expect to continue these efforts.”
Amcor plc management
“While we continue to progress in our strategic alternatives review, we have not identified a set deadline or definitive timetable for completion of the strategic alternatives review process and related actions and there is no assurance that this review will result in any transaction or that any such outcome will be successful.”
Amcor plc management
Risks
Excerpts are the filing’s own words; each heading is the start of its excerpt. Selected excerpts are not a complete risk inventory.
There is no assurance as to the timeline or outcome of the strategic review process…
There is no assurance as to the timeline or outcome of the strategic review process, including that actions taken will increase shareholder value.
Such conditions may also result in higher operating costs and increased working capital requirements
Such conditions may also result in higher operating costs and increased working capital requirements.
The purchase price allocation is preliminary in nature and subject to adjustments…
The purchase price allocation is preliminary in nature and subject to adjustments, which could be material.
However, these actions may not be sufficient to fully offset the effects of these macroeconomic…
However, these actions may not be sufficient to fully offset the effects of these macroeconomic and geopolitical factors.
4 of 4 excerpts located in the filing text
Balance Sheet & Liquidity
Leverage: This filing's standardized financial data reports no debt balance under a concept whose scope can be verified. That is an unestablished scope, not zero debt and not a net cash position; no total debt, net debt or debt-to-equity figure is stated.
Liquidity: Cash and cash equivalents of $1,587M at March 31, 2026 versus $827M at June 30, 2025; net cash provided by operating activities of $556M for the nine months ended March 31, 2026 versus $276M a year earlier.
Working capital: Current assets $9.8B vs. current liabilities $6.8B (current ratio 1.44x). Prior reported balance sheet as of 2025-06-30: $8.4B vs. $7.0B (1.21x).
Maturities & covenants
- The $1,525 million, 1.570% First Priority Senior Secured Notes due January 2026 of Berry Global, Inc. has matured during the three months ended March 31, 2026.
- Current portion of long-term debt rose to $561M at March 31, 2026 from $141M at June 30, 2025.
Notable Footnotes
| Item | Impact |
|---|---|
| Berry Merger purchase price allocation | The preliminary allocation resulted in goodwill of $6,739M after measurement period adjustments, with $1,786M for the Global Flexible Packaging Solutions Segment and $4,953M for the Global Rigid Packaging Solutions Segment, and remains subject to adjustment. |
| Held for sale | Five individually immaterial businesses were classified as held for sale with total assets held for sale, net of $503M and liabilities held for sale of $177M, and impairment losses of $6M were recognized. |
| Supply chain financing arrangements | Amounts due to suppliers participating in SCF programs were $0.7 billion at March 31, 2026 versus $0.9 billion at June 30, 2025, reflected in trade payables. |
| Restructuring liability | The restructuring plan liability was $112M at March 31, 2026 versus $105M at June 30, 2025, with net charges to earnings of $154M and cash paid of $115M during the nine months. |
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