As of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies ...

Summary of Key Points from the Conference Call Industry or Company Involved - **Xiaomi Corporation** [5] - **Cochlear Limited** [7] - **Amcor Limited** [8] - **JD Health** [13] - **Bharti Airtel** [14] - **GDS Holdings Ltd** [15] - **Seek Limited** [11] - **oOh!media Ltd** [12] - **DigiCo Infrastructure REIT** [10] Core Insights and Arguments - **Xiaomi Corporation** reported a 2Q revenue growth of 30% YoY, with EBIT and adjusted net profit growing by 54% and 75% respectively. Revenue exceeded expectations by 2% and 1%, while EBIT fell short by 14% due to higher operating expenses. Smartphone gross margin was at 11.5%, below expectations, while EV gross margin was at 26%, exceeding expectations due to higher average selling prices. AIoT segment grew by 45% YoY, indicating strong ecosystem progress [5][5][5] - **Cochlear Limited** is projected to see a 16% compound annual growth in CI volume for FY26E, driven by new implants and updated processors. The company is ahead of conservative guidance, indicating strong long-term profitability potential [7][7][7] - **Amcor Limited** faced a challenging 4Q25 with a 1.7% decline in volumes, particularly in the US market. The company noted that consumer behavior is shifting towards value-seeking, which may delay volume recovery. Guidance appears conservative, reflecting only minor synergies [8][8][8] - **JD Health** exceeded expectations due to a stronger performance in its branded drug business and disciplined investments in O2O and AI. The company experienced notable gross margin expansion and raised its price target to HK$88, maintaining its position as a top pick [13][13][13] - **Bharti Airtel** implemented tariff adjustments aimed at increasing data usage, which could lead to a 4-8% improvement in average revenue per user (ARPU). The company is viewed positively for its focus on subscriber monetization [14][14][14] - **GDS Holdings Ltd** reported a 12.4% revenue growth and an 11.2% EBITDA growth in 2Q25, with strong demand in China. The company is on track to meet its international power commitments ahead of schedule [15][15][15] - **Seek Limited** upgraded to a Buy rating due to expected margin expansion in 2H25 and strong yield growth despite volume declines. The macro environment is stabilizing, and the valuation is considered reasonable [11][11][11] - **oOh!media Ltd** delivered an in-line 1H25 result but had disappointing 3Q pacings. However, expectations for 4Q revenue growth are optimistic, and new contracts are expected to offset losses [12][12][12] - **DigiCo Infrastructure REIT** expressed concerns about the outlook for Australian data centers, highlighting risks of customer churn and sustainability of high interconnection revenue [10][10][10] Other Important but Possibly Overlooked Content - The **India Strategy** indicates a potential GST rate rationalization expected in 4QCY25, with significant savings on GST compensation providing fiscal space for rate adjustments [3][3][3] - **China Economics** suggests that liquidity factors will be crucial for market performance in 3Q25, with a potential shift back to high-dividend stocks if liquidity tightens [4][4][4] - The **US Insights** report indicates resilience in the US economy, with a significant percentage of companies beating earnings expectations, particularly in AI and financial sectors [18][18][18] - The **Indonesia Strategy** outlines a proposed reduction in fiscal deficit and optimistic revenue targets to support government spending, with GDP growth expectations set higher for 2026 [17][17][17]

Shares of Amcor plc AMCR are little changed on Tuesday. This follows a significant decline that was triggered by a weak earnings report. Some traders are anticipating a reversal and move higher. Amcor, currently oversold, is approaching a possible support level. These can each be bullish dynamics. This is why it is our Stock of the Day. When traders and investors who are selling become emotional and anxious, they can push a stock below its typical or usual trading range. When this happens, the stock is said ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Amcor, a global leader in consumer packaging, operates through flexible and rigid packaging segments post-merger with Berry Global Group, Inc., focusing on customer-centricity, sustainability, and portfolio optimization - On April 30, 2025, Amcor completed its merger with Berry Global Group, Inc. Under the agreement, Berry shareholders received **7.25 Amcor ordinary shares** for each share of Berry common stock[17](index=17&type=chunk) - The company's business strategy is centered on three core elements: a customer-first mindset, leadership in sustainability and innovation, and optimizing its portfolio towards high-growth, high-margin categories[18](index=18&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk) Segment Contribution to Net Sales (Fiscal Year 2025) | Segment | Percentage of Consolidated Net Sales | Employees | Manufacturing Facilities | Countries | | :--- | :--- | :--- | :--- | :--- | | **Global Flexible Packaging Solutions** | ~72% | ~42,000 | 210 | 36 | | **Global Rigid Packaging Solutions** | ~28% | ~34,000 | 213 | 34 | - Amcor has made significant sustainability commitments, including designing all packaging to be recyclable, compostable, or reusable **by 2025**, using **30% recycled materials by 2030**, and achieving **net zero emissions by 2050**[32](index=32&type=chunk)[35](index=35&type=chunk) - Post-merger, the company expects to spend approximately **$180 million annually** on research and development (R&D) and holds over **7,000 patents**, registered designs, and trademarks[33](index=33&type=chunk) Human Capital Overview (as of June 30, 2025) | Metric | Value | | :--- | :--- | | **Total Employees** | ~77,000 | | **Regional Breakdown** | North America (38%), EMEA (35%), Latin America (12%), Asia Pacific (15%) | | **Collective Bargaining Coverage** | ~37% | [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the Berry merger integration, increased indebtedness, shifts in consumer demand, raw material price volatility, cybersecurity threats, potential goodwill impairment, and evolving ESG regulations - Risks related to the Berry merger include difficulties in integrating the two complex businesses, retaining key personnel, harmonizing corporate cultures, and realizing expected synergies[67](index=67&type=chunk)[73](index=73&type=chunk) - The combined company had **$14.1 billion of debt** outstanding as of June 30, 2025, which may limit operational flexibility and increase borrowing costs[74](index=74&type=chunk) - The company faces strategic risks from shifts in consumer preferences towards more sustainable packaging, potential loss of key customers, and intense competition on price, innovation, and quality[78](index=78&type=chunk)[80](index=80&type=chunk)[83](index=83&type=chunk) - Operational risks include challenging global economic conditions, complexities of international operations with **25% of sales from emerging markets**, and price fluctuations or shortages of key raw materials like polymer resins and aluminum[88](index=88&type=chunk)[91](index=91&type=chunk)[98](index=98&type=chunk) - The company is exposed to cybersecurity risks, including cyber-attacks and IT system disruptions, heightened by geopolitical instability and the integration of Berry's systems[112](index=112&type=chunk)[115](index=115&type=chunk) - As of June 30, 2025, the company had **$18.7 billion of goodwill** and other intangible assets, primarily from the merger, where a significant impairment would materially affect financial results[123](index=123&type=chunk) - The company faces increasing legal and compliance risks from evolving ESG regulations, including climate-related rules, extended producer responsibility (EPR) programs, and restrictions on substances like PFAS[133](index=133&type=chunk)[135](index=135&type=chunk) [Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None [Cybersecurity](index=27&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity governance involves Board and Audit Committee oversight, with a CISO leading a NIST-based program that includes assessments, training, and vendor risk management, actively integrating Berry's systems post-merger - Cybersecurity oversight is shared by the Board of Directors, the Audit Committee, and management, with the CISO having over **20 years of experience** leading the enterprise-wide information security strategy[151](index=151&type=chunk)[152](index=152&type=chunk) - The company has implemented a cybersecurity program based on the National Institute of Standards and Technology (NIST) Cybersecurity Framework to manage risks[153](index=153&type=chunk) - Integration efforts are underway to unify the cybersecurity risk programs of Amcor and the recently acquired Berry, focusing on harmonizing policies, processes, and operations[150](index=150&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) As of June 30, 2025, the company operates 423 manufacturing and support facilities across its two segments, with the majority being owned Manufacturing and Support Facilities (as of June 30, 2025) | Segment | Number of Facilities | Ownership Status | | :--- | :--- | :--- | | **Global Flexible Packaging Solutions** | 210 | ~75% owned, ~25% leased | | **Global Rigid Packaging Solutions** | 213 | ~55% owned, ~45% leased | [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is provided in Note 20 of the notes to the consolidated financial statements - Refer to Note 20, "Contingencies and Legal Proceedings," of the notes to consolidated financial statements for information about legal proceedings[159](index=159&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Amcor's ordinary shares trade on the NYSE and its CDIs on the ASX, with **92,040 registered holders** as of June 30, 2025, and no share repurchases during the quarter, with a performance graph showing cumulative total shareholder return - The company's ordinary shares are traded on the New York Stock Exchange (NYSE) under the symbol **AMCR**, and its CHESS Depositary Instruments (CDIs) are traded on the Australian Securities Exchange (ASX) under the symbol **AMC**[161](index=161&type=chunk) - No shares were repurchased during the three months ended June 30, 2025, and there were no outstanding approved share repurchase programs during that period[162](index=162&type=chunk) Cumulative Total Shareholder Return (Assuming $100 Invested on June 30, 2020) | Date | Amcor plc | S&P 500 | S&P 500 Materials | S&P/ASX 200 | Peer Group | | :--- | :--- | :--- | :--- | :--- | :--- | | **June 30, 2020** | $100.00 | $100.00 | $100.00 | $100.00 | $100.00 | | **June 30, 2025** | $112.74 | $215.89 | $172.77 | $177.69 | $126.58 | [Reserved](index=31&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2025, Amcor's financial performance was significantly shaped by the merger with Berry Global Group, Inc., resulting in increased net sales to **$15.0 billion** but decreased net income to **$511 million**, with strong liquidity despite increased net debt to **$13.3 billion** - The merger with Berry Global Group, Inc. was completed on April 30, 2025, for a purchase consideration of **$10.4 billion**, with Amcor assuming approximately **$5.2 billion of Berry's debt**[171](index=171&type=chunk) - The company targets realizing approximately **$530 million of pre-tax synergies** from the Berry merger by the end of fiscal year 2028, with an estimated total pre-tax cash cost of **$280 million** for restructuring and integration[172](index=172&type=chunk) Consolidated Results of Operations (FY2025 vs. FY2024) | Metric | FY2025 ($ in millions) | FY2024 ($ in millions) | Change (%) | | :--- | :--- | :--- | :--- | | **Net Sales** | 15,009 | 13,640 | +10% | | **Operating Income** | 1,009 | 1,214 | -17% | | **Net Income attributable to Amcor plc** | 511 | 730 | -30% | | **Diluted EPS** | $0.320 | $0.505 | -37% | Segment Performance (FY2025 vs. FY2024) | Segment | Net Sales (FY25, $ in millions) | Sales Change (%) | Adjusted EBIT (FY25, $ in millions) | EBIT Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Global Flexible Packaging Solutions** | 10,872 | +5% | 1,458 | +5% | | **Global Rigid Packaging Solutions** | 4,137 | +25% | 375 | +45% | Cash Flow Summary (FY2025 vs. FY2024) | Cash Flow Activity | FY2025 ($ in millions) | FY2024 ($ in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 1,390 | 1,321 | | **Net cash used in investing activities** | (2,102) | (476) | | **Net cash provided by/(used in) financing activities** | 910 | (857) | - Net debt increased significantly to **$13.3 billion** as of June 30, 2025, from **$6.1 billion** at June 30, 2024, primarily due to the Berry merger[219](index=219&type=chunk)[199](index=199&type=chunk) - Critical accounting estimates include business combinations (especially valuing intangible assets from the Berry merger), pension obligations, impairment testing of goodwill and other intangible assets, and deferred taxes[236](index=236&type=chunk)[242](index=242&type=chunk)[249](index=249&type=chunk)[254](index=254&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks including interest rate, foreign exchange, commodity price, and credit risk, using derivatives to manage these exposures, with a **1% increase in floating interest rates** impacting pre-tax income by **$24 million** and a **1% increase in raw material prices** reducing pre-tax income by **$97 million** - A hypothetical **1% increase** in the floating interest rate would result in an adverse impact on income before income taxes of **$24 million** for fiscal year 2025[259](index=259&type=chunk) - The company is exposed to foreign exchange risk, where a hypothetical **1% adverse change** in the Euro exchange rate would have impacted FY2025 net sales by **$26 million**, with operations in Argentina also posing currency risk[260](index=260&type=chunk)[261](index=261&type=chunk) - A hypothetical **1% increase** in the average prices of primary raw materials (e.g., polymer resins, aluminum) not passed on to customers would have resulted in an adverse impact on pre-tax income of approximately **$97 million** for fiscal year 2025[265](index=265&type=chunk) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for fiscal years 2023-2025 and accompanying notes, with an unqualified auditor opinion on financial statements and internal controls, excluding the recently acquired Berry Global Group, Inc. from the internal control audit - The independent auditor, PricewaterhouseCoopers AG, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of June 30, 2025[271](index=271&type=chunk) - The audit of internal control over financial reporting excluded the recently acquired Berry Global Group, Inc., which represented **36.0% of total assets** and **10.6% of total revenues** for the year ended June 30, 2025[275](index=275&type=chunk) - The auditor identified the "Acquisition of Berry Global Group, Inc. – Valuation of Customer Relationships" as a Critical Audit Matter due to the significant management judgment and high degree of auditor subjectivity involved in estimating the fair value of the **$5.5 billion** in acquired customer relationships[280](index=280&type=chunk)[281](index=281&type=chunk) Key Financial Statement Data (in millions) | Account | June 30, 2025 ($) | June 30, 2024 ($) | | :--- | :--- | :--- | | **Total Assets** | $37,066 | $16,524 | | **Total Liabilities** | $25,326 | $12,571 | | **Total Shareholders' Equity** | $11,740 | $3,953 | | **Net Cash from Operations (FY25)** | $1,390 | $1,321 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=124&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None [Controls and Procedures](index=124&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of June 30, 2025, with the latter assessment excluding the recently acquired Berry business - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[557](index=557&type=chunk) - Management concluded that the company maintained effective internal control over financial reporting as of June 30, 2025, with the independent auditor's report concurring with this assessment[560](index=560&type=chunk)[561](index=561&type=chunk) - The assessment of internal control over financial reporting for the fiscal year ended June 30, 2025, excluded the recently acquired Berry business, which was acquired on April 30, 2025[559](index=559&type=chunk) [Other Information](index=126&type=section&id=Item%209B.%20Other%20Information) During the fourth quarter of fiscal 2025, no director or Section 16 officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - No director or Section 16 officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[563](index=563&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=126&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable Part III [Directors, Executive Officers and Corporate Governance](index=126&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors and corporate governance is incorporated by reference from the company's definitive proxy statement, which will be filed within 120 days of the fiscal year-end - Required information is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Shareholder Meeting[565](index=565&type=chunk) [Executive Compensation](index=127&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive proxy statement, which will be filed within 120 days of the fiscal year-end - Required information is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Shareholder Meeting[569](index=569&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=127&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) This section provides details on equity compensation plans as of June 30, 2025, with further information regarding security ownership incorporated by reference from the company's definitive proxy statement Equity Compensation Plans (as of June 30, 2025) | Plan Category | Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price (b) | Securities Remaining for Future Issuance (c) | | :--- | :--- | :--- | :--- | | **Approved by security holders** | 62,379,640 | $10.17 | 35,901,203 | | **Not approved by security holders** | 0 | N/A | 0 | | **Total** | 62,379,640 | $10.17 | 35,901,203 | - Additional required information is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Shareholder Meeting[572](index=572&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=127&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive proxy statement, which will be filed within 120 days of the fiscal year-end - Required information is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Shareholder Meeting[573](index=573&type=chunk) [Principal Accountant Fees and Services](index=127&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive proxy statement, which will be filed within 120 days of the fiscal year-end - Required information is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Shareholder Meeting[574](index=574&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=128&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K, including the Report of the Independent Registered Public Accounting Firm, consolidated financial statements, and a comprehensive list of exhibits - This section contains the list of all financial statements, schedules, and exhibits filed with the Form 10-K[575](index=575&type=chunk) - Financial Statement Schedule II - Valuation and Qualifying Accounts and Reserves is included in the filing[575](index=575&type=chunk) [Form 10-K Summary](index=135&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None

AMCR's Margins Contract Y/Y in Q4 Amcor Plc (AMCR) reported fourth-quarter fiscal 2025 (ended June 30, 2025) adjusted earnings per share (EPS) of 20 cents, missing the Zacks Consensus Estimate of 21 cents. AMCR's adjusted EPS in the fourth quarter of 2024 was 21 cents. Including special items, the company reported a loss of 2 cents against the prior-year quarter's EPS of 18 cents. Amcor Witnesses Increased Revenues in Q4 Total revenues for the quarter were $5.08 billion, which missed the Zacks Consensus Est ...

Core Insights - Amcor reported $5.08 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 43.8% [1] - The EPS for the same period was $0.20, slightly down from $0.21 a year ago [1] - Revenue fell short of the Zacks Consensus Estimate of $5.17 billion, resulting in a surprise of -1.76% [1] - The company experienced an EPS surprise of -4.76%, with the consensus EPS estimate being $0.21 [1] Financial Performance Metrics - Net Sales for Flexible Packaging reached $3.21 billion, exceeding the two-analyst average estimate of $2.71 billion, representing a year-over-year change of +19.3% [4] - Net Sales for Rigid Packaging amounted to $1.88 billion, significantly surpassing the $765.86 million average estimate, with a year-over-year change of +121.1% [4] - Adjusted EBIT for Flexibles was reported at $450 million, compared to the average estimate of $410.01 million [4] - Adjusted EBIT for Rigid Packaging was $204 million, exceeding the average estimate of $68.86 million [4] - Corporate expenses showed an adjusted EBIT of -$43 million, compared to the average estimate of -$29.78 million [4] Stock Performance - Amcor's shares have returned +5.1% over the past month, outperforming the Zacks S&P 500 composite's +3.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company expects adjusted EPS growth of 12% to 17% in fiscal 2026, with free cash flow anticipated to double to €1.8 to €1.9 billion [6][30] - Annual adjusted free cash flow for fiscal 2025 was $926 million, with capital expenditures of $580 million, up from the previous year [26][27] - Leverage was 3.5 times at the end of the quarter, expected to decrease to approximately 3.1 to 3.2 times over the next twelve months [27][28] Business Line Data and Key Metrics Changes - In the Global Flexible Packaging Solutions segment, combined volumes were down approximately 1.5%, with North America experiencing low single-digit declines [22] - The Global Rigid Packaging Solutions segment saw net sales increase by 121% on a constant currency basis, with overall volumes down approximately 2% [24] - Adjusted EBIT for Global Flexible Packaging was £450 million, up 11% on a constant currency basis, while adjusted EBIT for Global Rigid Packaging was £400 million, up 173% [23][25] Market Data and Key Metrics Changes - North American beverage business volumes were below expectations, with operating challenges leading to elevated costs [25][72] - Volume performance outside North America was broadly flat, with growth in Latin America and Asia offsetting modest declines in Europe [22][43] - The company identified several businesses with combined annual sales of approximately $2.5 billion that are less aligned with the core portfolio and will explore alternatives to maximize value [18][19] Company Strategy and Development Direction - The company is focused on integrating the Berry acquisition and capturing synergies, with a target of $650 million in total synergies through fiscal 2028 [10][31] - A strategic portfolio review has been conducted to define the core portfolio, with plans to explore alternatives for businesses less aligned with core operations [10][18] - The company aims to enhance focus on attractive nutrition and health markets, contributing to long-term shareholder value [31][19] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment is challenging, with no meaningful rebound in consumer demand anticipated [28][30] - The company is confident in delivering significant synergies from the Berry acquisition and expects to stabilize the North American beverage business before considering divestment [31][85] - Management emphasized the importance of customer support in any strategic decisions regarding non-core businesses [86] Other Important Information - The company has already taken steps to reduce headcount by more than 200 and has identified sites for closure to improve efficiency [15][66] - The integration of the Berry and Amcor businesses is progressing well, with positive feedback from customers and early business wins [14][16] Q&A Session All Questions and Answers Question: Impact of potential beverage strategic considerations on procurement synergies - Management believes that the potential divestment of the North American Beverage business will not materially impact procurement savings, which are expected to remain at $650 million [38] Question: Top line trends and volume performance - Management indicated that weakness in North America drove softer volume performance, with overall consumer sentiment affecting buying behaviors [44][45] Question: Details on the $1 billion under review - The review includes 10 businesses distributed between the legacy Amcor and Berry portfolios, assessed based on growth, margin profiles, and market structure [49][50] Question: Market share shifts and destocking - Management clarified that market share shifts are not the primary issue, and destocking has not been a significant factor in recent performance [56][57] Question: Context for the $260 million in synergies - Management reaffirmed the $260 million in synergies for fiscal 2026, with expectations for 40% of total synergies to be realized in the first year [64][66] Question: Operational issues within the North American beverage business - Management acknowledged dissatisfaction with the North American beverage business performance, attributing challenges to service issues and elevated costs [71][72] Question: Volume growth embedded in EPS forecast - Management anticipates flat volumes for fiscal 2026, with EPS guidance reflecting subdued demand conditions [78][80] Question: Process for divesting the North American beverage business - Management plans to stabilize the North American beverage business before assessing divestment options, emphasizing customer support in the process [85][86] Question: Timing of growth investments or share buybacks - Management is focused on reducing leverage to the target range of 2.5 to 3 times before considering share buybacks or growth investments [90][93] Question: Accretion from the Berry deal - Management indicated that the Berry combination contributed approximately half to 1 cent to EPS, with expectations for continued accretion from synergy delivery [95][97]

Financial Data and Key Metrics Changes - The acquisition of Berry Global has significantly impacted financial metrics, with adjusted EPS growth expected to be between 12% to 17% in fiscal 2026 and free cash flow anticipated to double to €1.8 to €1.9 billion [5][28] - Annual adjusted free cash flow for fiscal 2025 was reported at $926 million, with capital expenditures for the year at $580 million, expected to rise to $850 million to $900 million in fiscal 2026 [26][27] - Leverage was reported at 3.5 times at the end of the quarter, with expectations to decrease to approximately 3.1 to 3.2 times over the next twelve months [27][28] Business Line Data and Key Metrics Changes - In the Global Flexible Packaging Solutions segment, combined volumes were down approximately 1.5%, with North America experiencing low single-digit declines due to softer demand [21][22] - The Global Rigid Packaging Solutions segment saw net sales increase by 121% on a constant currency basis, but volumes were down approximately 2% overall, reflecting ongoing soft consumer demand [23][24] - The North American Beverage business faced operational challenges leading to elevated costs, with a decline in performance contributing to a $20 million drop compared to the previous year [25][70] Market Data and Key Metrics Changes - Volume performance in North America was a major source of weakness, with overall consumer sentiment affecting buying behaviors [42][43] - Emerging markets, particularly in Latin America and Asia, showed growth that offset modest declines in Europe [21][22] - The company noted that while they are gaining market share in certain categories, overall volume trends remain subdued due to macroeconomic factors [44][55] Company Strategy and Development Direction - The company is focused on integrating the Berry acquisition and optimizing its portfolio, with a strategic review identifying businesses less aligned with core operations [8][17] - A commitment to delivering $650 million in total synergies through fiscal 2028, with $260 million expected in fiscal 2026, reflects the company's integration strategy [15][31] - The company aims to enhance focus on attractive nutrition and health markets while exploring alternatives for non-core businesses [18][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong earnings and cash flow growth in fiscal 2026, despite not anticipating a meaningful rebound in consumer demand [28][29] - The operational performance of the North American Beverage business is being closely monitored, with plans to stabilize the business before considering divestment [80][82] - Management acknowledged challenges in the North American Beverage segment but remains optimistic about the overall integration and synergy realization [68][102] Other Important Information - The company reported a total recordable incident rate (TRIR) of 0.27 for fiscal 2025, with 68% of sites injury-free [6] - The integration efforts have already led to the closure of one site and the approval of four additional closures to improve operational efficiency [14][15] Q&A Session Summary Question: Impact of potential beverage strategic considerations on procurement synergies - Management indicated that the potential divestment of the North American Beverage business would not materially impact procurement savings, expecting to maintain the estimated $650 million in synergies [38] Question: Top line trends and volume performance - Management noted that the volume performance was weaker than expected, primarily due to North America, while emerging markets showed growth [42][43] Question: Details on the $1 billion under review - Management clarified that the $1 billion comprises ten businesses across both legacy companies, with criteria based on growth potential, industry structure, and market leadership [47][48] Question: Operational issues within the Rigid Beverages business - Management acknowledged dissatisfaction with the North American beverage business performance, attributing challenges to service issues and elevated costs [68][70] Question: EPS forecast and volume growth expectations - Management expects flat volumes for fiscal 2026, with EPS guidance of $0.80 to $0.83, reflecting subdued demand [76][77] Question: Timing of potential growth investments or share buybacks - Management emphasized the focus on reducing leverage to the target range of 2.5 to 3 times before considering share buybacks or growth investments [88][90]

Group 1: Earnings Performance - Amcor reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.21 per share a year ago, representing an earnings surprise of -4.76% [1] - The company posted revenues of $5.08 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.76%, and up from $3.54 billion year-over-year [2] - Over the last four quarters, Amcor has not surpassed consensus EPS or revenue estimates [2] Group 2: Stock Performance and Outlook - Amcor shares have increased by approximately 5.6% since the beginning of the year, compared to a 10% gain in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.20 on revenues of $5.86 billion, and for the current fiscal year, it is $0.82 on revenues of $23.6 billion [7] Group 3: Industry Context - The Containers - Paper and Packaging industry, to which Amcor belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Amcor's stock performance [5][6]

Financial Performance - For the fourth quarter of fiscal year 2025, net sales reached $5082 million, a 43% increase, while adjusted EBIT was $611 million, up by 34%[12] - Fiscal year 2025 net sales amounted to $15009 million, an 11% increase, and adjusted EBIT reached $1723 million, a 12% increase[12] - Adjusted EPS for the fourth quarter decreased by 5% to 200 cents per share, while for the full fiscal year 2025, it increased by 3% to 712 cents per share[12] - The company anticipates adjusted EPS for fiscal year 2026 to be approximately 80 to 83 cents per share, representing a constant currency growth of 12% to 17% compared to fiscal year 2025[47] - The company expects free cash flow of approximately $18 to $19 billion for fiscal year 2026[47] Acquisition and Integration - The transformational acquisition of Berry Global was completed on April 30, 2025, strengthening the business and offering more complete solutions for customers[10, 5] - Integration and synergy realization are tracking in line with expectations[10] - Synergy expectations are reaffirmed, with $650 million expected by year 3 and $260 million in fiscal year 2026[19, 51] Portfolio Optimization - The company has identified a core portfolio of approximately $20 billion, focusing on consumer packaging and dispensing solutions for nutrition and health[20, 21] - Portfolio optimization actions are being explored for businesses with combined sales of approximately $25 billion, including the North America Beverage business with approximately $15 billion in sales[29, 30] Segment Performance - Global Flexible Packaging Solutions saw an 18% increase in net sales, including 16% growth from approximately $420 million in acquired sales, and an 11% increase in adjusted EBIT, including 12% growth from approximately $50 million in acquired EBIT for the fourth quarter of fiscal year 2025[35] - Global Rigid Packaging Solutions experienced a 121% increase in net sales, including 129% growth from approximately $11 billion in acquired sales, and a 173% increase in adjusted EBIT, driven by 203% growth from approximately $150 million in acquired EBIT for the fourth quarter of fiscal year 2025[40]