Amcor Earnings Miss Estimates in Q4, Revenues Increase Y/Y

Core Insights - Amcor Plc reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of 20 cents, missing the Zacks Consensus Estimate of 21 cents, and down from 21 cents in the same quarter of the previous year [1] - Total revenues for the quarter were $5.08 billion, below the Zacks Consensus Estimate of $5.17 billion, but up 43.8% year over year [2] - The company experienced a gross margin contraction to 17.6% from 21.3% in the prior-year quarter due to a significant increase in the cost of sales [3] Financial Performance - Adjusted operating income for the quarter was $611 million, reflecting a 34.6% increase from $454 million in the prior-year quarter, with an adjusted operating margin of 12% compared to 12.8% previously [4] - Adjusted EBITDA for the quarter was $789 million, up from $550 million in the fourth quarter of fiscal 2024, with an adjusted EBITDA margin of 15.5% [5] - The cost of sales rose 50.6% year over year to $4.19 billion, while gross profit increased 18.7% to $895 million [3] Segment Performance - The Global Flexible Packaging Solutions segment reported net sales of $3.21 billion, a 19.3% increase year over year, with adjusted operating income rising 11.7% to $450 million [7] - The Global Rigid Packaging Solutions segment saw net sales skyrocket 121.1% to $1.88 billion, with adjusted operating income up 172% to $204 million, driven by acquired sales [8] Cash Flow and Balance Sheet - As of the end of fiscal 2025, Amcor had $827 million in cash and cash equivalents, an increase from $588 million at the end of fiscal 2024, and generated $1.39 billion in cash from operating activities [9] - The company reported an adjusted free cash outflow of $926 million for fiscal 2025, slightly improved from $952 million in the previous fiscal year [9] Fiscal Year Overview - For fiscal 2025, Amcor reported an adjusted EPS of 71 cents, missing the Zacks Consensus Estimate of 73 cents, but improved 1% year over year [11] - Total revenues for fiscal 2025 increased 9% year over year to $15.01 billion, exceeding the consensus estimate of $14.88 billion [12] Future Guidance - Amcor expects adjusted EPS for fiscal 2026 to be in the range of 80-83 cents and projects free cash flow of $1.8-1.9 billion [13] Stock Performance - Over the past year, Amcor shares have declined by 2%, compared to a 3.7% drop in the industry [14]