Amcor Earnings Meet Estimates in Q1, Revenues Increase Y/Y

Core Insights - Amcor Plc reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of 19 cents, meeting the Zacks Consensus Estimate, with a 19% increase from the previous year [1][10] - Total revenues surged 71.3% year over year to $5.75 billion, although it missed the Zacks Consensus Estimate of $5.83 billion [2][10] - The growth was primarily driven by the acquisition of Berry Global, contributing approximately 70% to the revenue increase [2] Financial Performance - The cost of sales increased by 71.5% year over year to $4.62 billion, while gross profit rose 70.6% to $1.12 billion, resulting in a gross margin of 19.6% [3] - Selling, General and Administrative (SG&A) expenses were $435 million, up 57.6% year over year, with adjusted operating income reaching $687 million, an 88.2% increase from the prior year [4] - Adjusted EBITDA for the quarter was $909 million compared to $466 million in the previous year [4] Segment Performance - Global Flexible Packaging Solutions saw net sales increase by 27.6% year over year to $3.26 billion, with a volume decline of 2.8% [5] - Global Rigid Packaging Solutions reported net sales of $2.49 billion, a 211% increase year over year, driven by the acquisition [7] - Adjusted operating income for the Global Rigid Packaging Solutions segment was $295 million, significantly up from $0.62 million in the prior year [8] Cash Flow and Balance Sheet - As of September 30, 2025, Amcor had $825 million in cash and cash equivalents, slightly down from $827 million as of June 30, 2025 [9] - The company reported a net debt of $13.99 billion, an increase from $13.27 billion as of June 30, 2025 [9] Guidance - For fiscal 2026, Amcor expects adjusted EPS to be in the range of 80-83 cents and projects free cash flow of $1.8-1.9 billion [11] Stock Performance - Over the past year, Amcor's shares have decreased by 16.5%, compared to a 35.7% decline in the industry [12]