Amcor (AMCR) Q1 2025 earnings summary

Executive summary

• Fiscal Q1 2025 delivered solid financial performance, with net sales of $3.35 billion, sequential volume growth, and net income up 26% to $191 million; guidance reaffirmed for the full year.

• Strategic focus includes safety, customer-centric growth, sustainability, and portfolio optimization, with new leadership roles and organizational changes to drive efficiency and growth.

• Sustainability remains a core priority, with new initiatives and leadership to accelerate the transition to sustainable packaging solutions.

• Portfolio focus expanded to include dairy and liquid applications, leveraging strong North American positions and aiming for global product leverage.

• Ongoing restructuring plan targets $50 million annualized pre-tax benefits by FY2025, with $86 million in cumulative net cash outflows to date.

Financial highlights

• Net sales for Q1 FY2025 were $3.35 billion, down 2–3% year-over-year, mainly due to unfavorable price/mix and currency, but volumes increased 2%.

• Adjusted EBIT rose 3% year-over-year to $365 million; EBIT margin improved by 50 bps to 10.9%.

• Adjusted EPS grew 5% year-over-year on a constant currency basis to $0.162.

• Adjusted free cash flow was negative $395 million, impacted by higher inventories and capex.

• Quarterly dividend increased by 2% to $0.1275 per share; $180 million returned to shareholders in Q1.

Outlook and guidance

• Full-year fiscal 2025 adjusted EPS guidance reaffirmed at $0.72–$0.76, representing 3–8% constant currency growth.

• Adjusted free cash flow guidance reaffirmed at $900–1,000 million; leverage targeted at or below 3x by year-end.

• Volume growth expected in the low- to mid-single-digit range for the year; Q2 EPS expected to be in line with Q1.

• Net interest expense forecasted at $290–305 million; effective tax rate between 18.2% and 20%.

• Currency movements not expected to materially impact reported EPS if current rates persist.