Amcor (AMCR) Q4 2026 earnings summary

Executive summary

• Q4 adjusted EPS rose 23% year-over-year to $1.23, and full-year adjusted EPS increased 13% to $4.02, with strong operating performance and synergy capture exceeding targets.

• Net sales for Q4 2026 reached $6.4 billion, up 26% year-over-year, and full-year net sales were $23.5 billion, up 57%, driven by the Berry acquisition and higher raw material cost pass-through.

• Synergies delivered in FY26 totaled $285 million, 10% ahead of initial expectations, reaffirming a $650 million three-year target.

• Five divestitures closed in H2 FY26, sharpening focus on higher-growth, higher-return core businesses, with improved non-core performance.

• Free cash flow for the year was $1.3 billion, impacted by Middle East conflict and integration costs, but expected to recover in the next 12 months.

Financial highlights

• Q4 revenue: $6.4 billion; adjusted EBITDA: $1,045 million (16.3% margin); adjusted EBIT: $836 million (13.1% margin), all up year-over-year.

• Full-year net sales: $23.5 billion; adjusted EBITDA: $3,673 million (15.6% margin); adjusted EBIT: $2,813 million (12.0% margin); adjusted EPS: $4.02 (up 13%); free cash flow: $1.3 billion.

• Q4 adjusted EBIT was $836 million, up 37%, with $96 million from acquired EBIT and $100 million in synergy benefits.

• Quarterly dividend increased to $0.65 per share, a 2% increase versus prior year.

• Net debt at June 30, 2026 was $12,897 million.

Outlook and guidance

• For the six months ending Dec 31, 2026, adjusted EPS expected in the range of $1.80–$1.90, reflecting improved operations but higher interest and tax expense.

• Double-digit adjusted EPS growth targeted for calendar 2027, with leverage expected to be ~3x by year-end.

• Free cash flow of ~$2.5 billion targeted for the next 12 months, including $500 million working capital recovery.

• Leverage at December 31, 2026 projected at 3.5x–3.6x net debt to LTM adjusted EBITDA.

• Transitioning to a December 31 year-end, with a six-month reporting period (July–December 2026).