Amcor reports profit growth in Q1 and maintains fiscal 2026 guidance

Core Insights - Amcor reported a net income of $262 million for Q1, a significant increase from $191 million in the same quarter last year, and reaffirmed its earnings guidance for fiscal 2026 [1][3] - The company experienced a 68% year-on-year surge in net sales, reaching $5.74 billion [1] Financial Performance - The Global Flexible Packaging Solutions division achieved net sales of $3.26 billion, a 25% increase at constant currency, with adjusted EBIT rising 28% to $426 million [2] - The Global Rigid Packaging Solutions division saw net sales increase by 205% to $2.49 billion, with adjusted EBIT growing 365% to $295 million [2] - Amcor's adjusted EBIT rose 85% to $687 million at constant currency, while adjusted EBITDA jumped 92% to $909 million [3] - Adjusted earnings increased to $448 million from $234 million, and adjusted EPS climbed 18% to 19.3 cents, exceeding the company's projected range [3] Synergy and Integration - The company recorded synergy benefits of $38 million during the quarter, with $33 million contributing to adjusted EBIT [4] - Integration of the Berry business is on track, with at least $260 million in pre-tax synergy benefits anticipated for fiscal 2026, equating to approximately 12% EPS accretion [4] - Total projected synergy benefits before tax are expected to reach $650 million by the end of fiscal 2028 [4] Cash Flow and Dividends - Free cash outflow for the quarter was $343 million, aligning with expectations, following approximately $115 million in acquisition-related cash costs [5] - Net debt stood at $13.99 billion as of 30 September 2025 [5] - The board declared a quarterly dividend of 13.0 cents per share, up from 12.75 cents in the same period last year, scheduled for payment on 17 December 2025 [5] Guidance for Fiscal 2026 - Amcor reaffirmed its fiscal 2026 guidance, projecting adjusted EPS in the range of 80 to 83 cents, representing 12–17% constant currency growth [6] - Expected free cash flow is projected to remain between $1.8 billion and $1.9 billion [6] - Anticipated capital expenditure for fiscal 2026 is between $850 million and $900 million, with net interest expense expected to be between $570 million and $600 million [6]