Core Viewpoint - The article discusses the appeal of five Dividend Aristocrats as preferred retirement income stocks for Baby Boomers, emphasizing their reliability in providing consistent dividend increases over 25 years, which is crucial for investors seeking stable income during market volatility [1]. Group 1: Dividend Aristocrats Overview - Dividend Aristocrats are S&P 500 companies that have raised their dividends for 25 consecutive years, making them attractive for growth and income investors [1]. - The 69 companies on the 2026 S&P 500 Dividend Aristocrats list must meet specific criteria, including being a member of the S&P 500, having an average daily trading volume of at least $5 million, and a market capitalization of at least $3 billion [1]. Group 2: Featured Dividend Aristocrats - **Amcor PLC**: Offers a 5.18% dividend and is involved in sustainable packaging solutions across various industries, including food and healthcare. It has a Buy rating with a target price of $60 [1]. - **Eversource Energy**: Provides a 4.09% dividend and operates in energy delivery across Connecticut, Massachusetts, and New Hampshire. It has a Buy rating with a target price of $79 [1]. - **Hormel Foods Corp.**: Known for its diverse food products, it offers a 4.95% dividend and is restructuring to improve performance. It has a Buy rating with a target price of $31 [2]. - **Kimberly-Clark Corp.**: A personal care company with a 4.66% dividend, it has raised dividends for 53 consecutive years and is acquiring Kenvue Inc. in a $48.7 billion deal. It has a Buy rating with a target price of $120 [2]. - **Realty Income Corp.**: A real estate investment trust with a 4.89% monthly dividend, it invests in commercial properties and has a Buy rating with a target price of $69 [2].

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Core Insights - Amcor has released a consumer insight report titled "Recycled Content, Real Impact," focusing on consumer perceptions of post-consumer recycled (PCR) content in packaging for supermarket products [1] Consumer Awareness and Behavior - 91% of European consumers are aware that some supermarket products, including food and beverages, contain recycled plastic in their packaging [2] - 76% of European grocery shoppers actively purchase products that utilize recycled materials in their packaging [3] Trust and Quality Perception - 63% of European consumers believe that the use of recycled content in packaging enhances their trust in a brand [4] - Over half (53%) of consumers feel that recycled plastic in packaging does not affect their perception of product quality, while 22% believe it improves quality, particularly among younger consumers aged 18 to 34, where 34% perceive higher quality [5] Sustainability Benefits and Consumer Expectations - Positive consumer attitudes towards PCR plastics are linked to sustainability benefits, with 67% citing reduced environmental impact, 53% for resource conservation, 43% for lower carbon footprint, and 40% for supporting a circular economy [6] - 79% of consumers desire independent certification of recycled materials on packaging, and 58% want clear indications of the percentage of recycled content used [7] Industry Recommendations - Amcor's lead researcher emphasizes the importance of third-party certification for consumer reassurance and credibility [8] - The European Union's mandatory recycled plastic targets set for 2030 encourage brand owners to start integrating PCR into their packaging now to establish traceability and technical validation [8] - Financial incentives for using PCR, such as reduced plastic taxes or bonuses in Extended Producer Responsibility (EPR) schemes, are available in some countries [9]

Core Insights - Amcor is identified as a "Reliable High-Yield Dividend Aristocrat" with a strong dividend yield of approximately 6.4% and is considered undervalued [1] Group 1: Company Overview - Amcor is expected to benefit from strong synergies following the merger with Berry Global, enhancing its market position [1] Group 2: Analyst Background - The analyst has over a decade of experience in researching various industries, including commodities and technology, and has transitioned to a value investing-focused platform [1]

Core Insights - Amcor Plc (AMCR) reported adjusted earnings per share (EPS) of 86 cents for Q2 fiscal 2026, surpassing the Zacks Consensus Estimate of 83 cents, with a year-over-year growth of 7.5% [2][9] - Total revenues increased by 68% year over year to $5.45 billion, although this fell short of the Zacks Consensus Estimate of $5.55 billion [4][9] - The growth was primarily driven by the Berry acquisition, which accounted for approximately 66% of the revenue increase, while volume declined by 3% [4][9] Financial Performance - Including special items, net earnings per share were reported at 38 cents, down from 56 cents in the prior-year quarter [3] - The cost of sales rose by 68.6% year over year to $4.41 billion, while gross profit increased by 66% to $1.04 billion, resulting in a gross margin of 19.1% compared to 19.3% in the previous year [5] - Adjusted EBITDA for the quarter was $826 million, reflecting an 83% increase from $453 million in the prior-year quarter, with an adjusted EBITDA margin of 15.2% [6] Segment Performance - In the Global Flexible Packaging Solutions segment, net sales rose by 27% year over year to $3.19 billion, despite a 2% decline in volume [7][9] - The Global Rigid Packaging Solutions segment saw net sales surge by 210% to $2.26 billion, driven by a 212% contribution from the acquisition, although volumes declined by 6% [10][13] Cash Flow and Balance Sheet - As of December 31, 2025, Amcor had cash and cash equivalents of $1,057 million, up from $827 million as of June 30, 2025, and generated $370 million in cash from operating activities in the first half of fiscal 2026 [14] - Net debt increased to $14.08 billion from $13.27 billion as of June 30, 2025 [14] Guidance - The company maintains its adjusted EPS guidance for fiscal 2026 in the range of $4.00 to $4.15 and projects free cash flow of $1.8 to $1.9 billion [15] Stock Performance - Over the past year, AMCR shares have decreased by 3.1%, compared to an 8.2% decline in the industry [16]

Group 1: Investment Recommendations - Odyssey Capital Advisors recommends staying long on the iShares Biotechnology ETF (NYSE:IBB) [1] - Gilman Hill Asset Management highlights Amcor plc (NYSE:AMCR) for its strong quarterly earnings and a 5.5% yield [1] - Virtus Investment Partners suggests Emerson Electric Co. (NYSE:EMR) as a solid industrial investment [3] Group 2: Company Earnings Reports - Amcor reported second-quarter earnings of 86 cents per share, exceeding the analyst consensus estimate of 85 cents per share, but quarterly sales of $5.449 billion fell short of the consensus estimate of $5.576 billion [2] - Emerson Electric reported first-quarter adjusted EPS of $1.46, beating the analyst consensus estimate of $1.41, while quarterly sales of $4.346 billion were slightly below the consensus estimate of $4.347 billion [4] Group 3: Stock Performance - iShares Biotechnology ETF gained 0.1% on Wednesday [5] - Amcor shares increased by 8.1% to close at $48.56 during the session [5] - Vanguard Emerging Markets Stock Index Fund fell by 0.6% on Wednesday [5] - Emerson Electric shares rose by 3.4% to settle at $157.32 during the session [5]

Financial Performance - Net sales for the three months ended December 31, 2025, increased by $2,208 million, or 68%, compared to the same period in 2024, reaching $5,449 million[157]. - Net income attributable to Amcor plc for the three months ended December 31, 2025, increased by $14 million, or 9%, to $177 million[158]. - Operating income for the three months ended December 31, 2025, was $331 million, representing 6.1% of net sales, down from 9.2% in the prior year[157]. - Net sales increased by $4,600 million, or 70%, for the six months ended December 31, 2025, compared to the same period in 2024[174]. - Net income attributable to Amcor plc increased by $85 million, or 24%, for the six months ended December 31, 2025, mainly due to an increase in gross profit and lower income tax expense[175]. - Gross profit increased by $878 million, or 68%, for the six months ended December 31, 2025, with gross profit as a percentage of net sales at 19.3%, remaining stable compared to 19.5% in 2024[181]. Merger and Integration - The merger with Berry Global Group, Inc. was completed on April 30, 2025, for a purchase consideration of $10.4 billion, excluding approximately $5.2 billion in assumed debt[149]. - The company targets approximately $530 million in 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 activities[150]. - The company incurred $96 million in employee-related expenses and $30 million in integration activities in the first half of fiscal year 2026 as part of the Berry Plan[151]. - SG&A expenses increased by $185 million, or 73%, for the three months ended December 31, 2025, primarily due to the Merger[165]. - Amortization of acquired intangible assets increased by $104 million, or 260%, for the three months ended December 31, 2025, driven by additional intangible assets acquired in the Merger[166]. - Restructuring, transaction, and integration expenses increased by $154 million for the six months ended December 31, 2025, resulting from increased restructuring and transaction costs related to the Merger[185]. Segment Performance - Net sales for the Global Flexible Packaging Solutions Segment increased by $677 million, or 27%, for the three months ended December 31, 2025, compared to the same period in 2024[160]. - Adjusted EBIT for the Global Rigid Packaging Solutions Segment increased by $175 million, or 327%, for the three months ended December 31, 2025, compared to the same period in 2024[163]. - Adjusted EBIT for the Global Flexible Packaging Solutions Segment increased by $177 million, or 27%, for the six months ended December 31, 2025, compared to the same period in 2024[178]. - Net sales for the Global Rigid Packaging Solutions Segment increased by $3,220 million, or 210%, for the six months ended December 31, 2025, compared to the same period in 2024[179]. Economic Conditions - Economic conditions remain challenging, with softer consumer demand and higher costs impacting financial results, attributed to geopolitical tensions and inflation[154]. - The impact of highly inflationary accounting in Argentina resulted in foreign currency transaction losses of $15 million for the six months ended December 31, 2025[156]. Cash Flow and Debt - Net cash provided by operating activities increased by $211 million to $370 million for the six months ended December 31, 2025, compared to $159 million in the prior year[213][214]. - Net cash used in investing activities rose by $307 million to $441 million, driven by higher net purchases of property, plant, and equipment[215]. - Net cash provided by financing activities increased by $434 million to $291 million, primarily due to higher proceeds from long-term debt[216]. - As of December 31, 2025, the company's net debt was $14.1 billion, an increase from $13.3 billion as of June 30, 2025[222]. - The revolving senior bank debt facility had an aggregate limit of $3.75 billion, with $0.99 billion drawn as of December 31, 2025[223]. Shareholder Returns - The company declared a cash dividend of $0.6375 per ordinary share for the three months ended September 30, 2025, and $0.65 per ordinary share for the three months ended December 31, 2025[224]. - There were cash outflows of $22 million for share purchases in the open market during the six months ended December 31, 2025[227]. - The company did not maintain a share repurchase program in the six months ended December 31, 2025, as the prior program had expired[226]. Tax and Interest - The effective income tax rate decreased by 11.3 percentage points to 10.7% for the six months ended December 31, 2025, compared to 22.0% in 2024, mainly due to differences in non-deductible expenditures[189]. - Interest expense increased by $170 million for the six months ended December 31, 2025, primarily due to additional debt issued in the Merger[188]. Market Risk - There were no material changes in market risk during the three months ended December 31, 2025[229].

Core Viewpoint - Amcor Plc reported strong financial results for the half-year ending December 2025, leading to a 3% increase in share price, driven by the acquisition of Berry and positive growth in earnings metrics [1][2]. Financial Performance - For the six months ending December 2025, net sales rose by 70% to $11.2 billion [8] - Adjusted EBITDA grew by 89% to $1.7 billion [8] - Adjusted EBIT increased by 77% to $1.3 billion [8] - Adjusted earnings per share (EPS) climbed by 14% to $1.83 [8] - For the three months ending December 2025, net sales grew by 68% to $5.45 billion [8] - Adjusted EBITDA for the quarter rose by 83% to $826 million [8] - Adjusted EBIT for the quarter increased by 66% to $603 million [8] - Adjusted EPS for the quarter grew by 7% to $0.86 [8] - Free cash flow for the quarter was reported at $289 million [8] - A quarterly dividend of $0.65 per share was declared [8] Management Commentary - CEO Peter Konieczny stated that Q2 financial performance met expectations despite a challenging volume environment, with strong adjusted EPS growth attributed to disciplined execution and synergy benefits from the Berry acquisition [4] - The company is progressing well with portfolio optimization actions, aiming to become a global leader in consumer packaging and dispensing solutions [5] Future Outlook - Amcor reaffirmed its FY26 guidance, projecting adjusted EPS in the range of $4 to $4.15, indicating year-on-year growth of 12% to 17% in constant foreign exchange terms [6] - Free cash flow is expected to be between $1.8 billion to $1.9 billion [6]

Core Insights - Amcor reported $5.45 billion in revenue for the quarter ended December 2025, marking a year-over-year increase of 68.1% [1] - The EPS for the same period was $0.86, compared to $0.80 a year ago, indicating a positive growth trend [1] - The revenue reported was a slight miss of -1.75% compared to the Zacks Consensus Estimate of $5.55 billion, while the EPS exceeded the consensus estimate of $0.83 by +3.61% [1] Revenue Performance - Net Sales for Flexible Packaging reached $3.19 billion, slightly above the three-analyst average estimate of $3.18 billion, reflecting a year-over-year change of +27% [4] - Net Sales for Rigid Packaging was reported at $2.26 billion, which was below the estimated $2.32 billion, but showed a significant year-over-year increase of +210.1% [4] Profitability Metrics - Adjusted EBIT for Rigid Packaging was $228 million, compared to the average estimate of $241.92 million from three analysts [4] - Adjusted EBIT for Flexible Packaging was reported at $402 million, slightly below the average estimate of $409.65 million [4] Stock Performance - Amcor's shares have returned +3.4% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Adjusted EPS increased by 7% for the quarter and 14% for the first half, reflecting strong execution against market opportunities [8][10] - Revenue for the quarter was $5.4 billion, with EBITDA of $826 million and EBIT of $603 million, significantly higher than the prior year due to the Berry acquisition and improved productivity [10][11] - Free cash flow was $289 million for the quarter, with a quarterly dividend declared at $0.65 per share, up from the prior year [11][24] Business Line Data and Key Metrics Changes - Global Flexible Packaging Solutions segment sales increased by 23% on a constant currency basis, while volumes were down approximately 2% [19][20] - Global Rigid Packaging Solutions segment sales also increased significantly, with volumes flat compared to the prior year, excluding non-core businesses [22][23] - Adjusted EBIT for the Flexible segment rose 22% on a constant currency basis to $402 million, while the Rigid segment's adjusted EBIT was $228 million, up over last year [21][23] Market Data and Key Metrics Changes - In developed regions, volume trends were down low- to mid-single digits, with Europe being more challenged than North America [20][22] - Emerging markets showed low single-digit growth in Asia Pacific, offset by lower volumes in Latin America [20] - Focus categories such as pet food and meat proteins performed better than the broader portfolio, while other categories like liquids and unconverted film and foil saw lower volumes [20][21] Company Strategy and Development Direction - The company is focused on delivering core business performance, accelerating synergy realization, and optimizing its portfolio, particularly the $2.5 billion of non-core businesses [9][10] - The acquisition of Berry is seen as a transformative step, positioning the company for long-term growth and value creation [5][9] - The company aims to deliver at least $260 million of synergies in fiscal 2026 and a total of $650 million by fiscal 2028 [16][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half, expecting volume performance to remain consistent with the first half, while focusing on cost control and productivity improvements [33][34] - The company reaffirmed its financial guidance for the fiscal year, with adjusted EPS expectations updated to $4.00-$4.15 per share [9][25] - Management noted that while the market environment remains challenging, they are well-positioned to capture revenue synergies and improve performance in non-core businesses [40][52] Other Important Information - The company has made significant progress in safety performance, with a total recordable incident rate of 0.52, and 79% of all sites remained injury-free [6][7] - The new CFO, Steve Scherger, has been actively engaged in understanding the business and is expected to contribute to value creation [16][18] Q&A Session Summary Question: Volume expectations for the next two quarters - Management indicated that they expect volume performance to be consistent with the first half, with some potential for upside from revenue synergies [33][34] Question: Fourth quarter initiatives for guidance confidence - Management highlighted seasonality, synergy growth, and expected improvements in non-core businesses as key drivers for EBIT improvement in the second half [39][40] Question: Volume performance in major categories - Management noted that overall company volumes were down 2.5%, with core portfolio volumes down 1.5%, indicating performance in line with broader industry trends [43][45] Question: Non-core business EBIT expectations - Management expects non-core EBIT margins to return to more traditional levels of 7%-9% in the second half, driven by improved contractual terms and operational performance [55][72] Question: Synergy capture details - Management confirmed that synergy capture was evenly split between G&A and procurement, with expectations for continued ramp-up in the second half [65][66]