Amcor reports solid first quarter result and reaffirms fiscal 2026 outlook

Core Insights - Amcor's Q1 performance indicates strong earnings and free cash flow growth for fiscal year 2026, with adjusted EPS projected between 80 to 83 cents, reflecting a 12-17% growth in constant currency [2][21] - The integration of Amcor and Berry Global is progressing well, with significant synergies expected to enhance operational efficiency and profitability [3][11] Financial Performance - For the three months ended September 30, 2025, Amcor reported net sales of $5,745 million, a 68% increase compared to the previous year, driven by the acquisition of Berry Global [8][13] - Adjusted EPS for the same period was 19.3 cents, an 18% increase year-over-year, supported by disciplined cost management and synergy realization [3][8] - Free cash flow for the quarter was a cash outflow of $343 million, aligning with expectations after accounting for acquisition-related costs [21] Segment Analysis - The Global Flexible Packaging Solutions segment achieved net sales of $3,257 million, a 25% increase on a constant currency basis, with adjusted EBIT of $426 million, reflecting a 28% increase [17][18] - The Global Rigid Packaging Solutions segment saw net sales of $2,488 million, a 205% increase year-over-year, with adjusted EBIT of $295 million, up 365% [19][20] Synergy and Integration - Amcor anticipates realizing at least $260 million in pre-tax synergy benefits in fiscal 2026, contributing to an expected EPS accretion of 12% [11][21] - The company is on track to achieve total identified synergies of $650 million by the end of fiscal 2028, which is expected to drive over 30% EPS growth over three years [4][9] Shareholder Returns - The Board has declared an increased quarterly cash dividend of 13.0 cents per share, reflecting confidence in Amcor's growth prospects and cash flow generation capabilities [12][21]