Amcor (AMCR) Q2 2026 earnings summary

Executive summary

• Completed the transformative merger with Berry Global on April 30, 2025, creating a global leader in consumer packaging and dispensing solutions with over 77,000 employees and 400+ manufacturing facilities in 40+ countries.

• Q2 FY2026 net sales reached $5,449 million, up 68% year-over-year, primarily due to the Berry acquisition; adjusted EBITDA rose 83% to $826 million, and adjusted EBIT increased 66% to $603 million.

• Adjusted EPS for Q2 was $0.86, up 7% year-over-year; free cash flow was $289 million after $69–$70 million in acquisition, restructuring, and integration costs.

• Synergy realization is progressing, with $55 million achieved in Q2, $93 million in H1, and a fiscal 2026 target of $260 million; total synergy target is $530 million by 2028.

• Portfolio optimization and strategic review of $2.5 billion in non-core businesses are underway, with agreements to divest two businesses for ~$100 million.

Financial highlights

• Q2 net sales were $5,449 million, adjusted EBITDA $826 million (15.2% margin), adjusted EBIT $603 million (11.1% margin), and free cash flow $289 million.

• H1 FY2026 net sales reached $11,194 million, adjusted EBITDA $1,736 million (15.5% margin), adjusted EBIT $1,290 million (11.5% margin), and free cash flow was a use of $53 million.

• Q2 GAAP net income was $177 million, with diluted EPS of $0.38, impacted by a 60% increase in share count post-merger.

• Quarterly dividend increased to $0.65 per share, up 2% year-over-year.

• Net debt at December 31, 2025, was $14,081 million.

Outlook and guidance

• Fiscal 2026 adjusted EPS guidance reaffirmed at $4.00–$4.15 per share, representing 12–17% constant currency growth, and free cash flow guidance of $1.8–$1.9 billion.

• Q3 adjusted EPS expected at $0.90–$1.00 per share, with $70–$80 million in synergy benefits.

• Management expects to realize $530 million in pre-tax synergies from the Berry merger by fiscal 2028.

• Year-end leverage expected at 3.1–3.2x; adjusted depreciation & amortization expected at $875–$925 million, net interest expense at $570–$600 million, and effective tax rate at 17–20%.

• Restructuring and integration activities under the Berry Plan are expected to be completed by the end of fiscal 2028, with $150–$160 million in net cash expenditures anticipated for the remainder of fiscal 2026.