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]

Financial Performance - The company reported adjusted EPS growth of 7% for Q2 and 14% for the first half, indicating 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, reflecting a commitment to annualized dividend growth [11][24] Business Segment Performance - In the Global Flexible Packaging Solutions segment, sales increased by 23% on a constant currency basis, driven primarily by the Berry acquisition, although volumes were down approximately 2% [19][20] - The Global Rigid Packaging Solutions segment also saw significant sales growth due to the acquisition, with volumes flat compared to the prior year, indicating a sequential improvement [22][23] - Focus categories such as pet food and meat proteins performed better than the broader portfolio, while other categories like liquids and unconverted film saw lower volumes [20][23] Market Dynamics - Volume trends in developed markets showed low- to mid-single-digit declines, with Europe facing more challenges than North America [20][22] - Emerging markets experienced low single-digit growth in Asia Pacific, offset by declines in Latin America, indicating mixed performance across regions [20][22] - The core portfolio's volume performance was approximately 1.5% lower than the prior year, reflecting market dynamics that remain largely unchanged [12][42] Company Strategy and Competitive Position - The company is focused on delivering core business performance, accelerating synergy realization, and optimizing its portfolio, which includes evaluating alternatives for $2.5 billion of non-core businesses [7][10] - The company aims to deliver at least $260 million in synergies for fiscal 2026, with a total of $650 million expected by fiscal 2028 [16][26] - The core portfolio, which includes health, beauty, wellness, protein, liquids, food service, and pet care, is positioned for sustainable long-term growth [11][12] Management Commentary 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 also focusing on cost management [31][32] - The company reaffirmed its financial guidance for fiscal 2026, with adjusted EPS expectations updated to $4.00-$4.15 per share, reflecting a commitment to double-digit EPS growth [9][25] - Management highlighted the importance of customer relationships and the need for a balance between price and volume in the current market environment [76] Other Important Information - The company has made significant progress in integrating the Berry acquisition, with a focus on operational synergies and cost management [15][16] - The new CFO, Steve Scherger, has been actively engaged in understanding the company's strategic priorities and operational capabilities [18][19] Q&A Session Summary Question: Expectations for volume performance in 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 [31][32] Question: Initiatives for fourth quarter guidance - Management highlighted seasonality, synergy growth, and improvements in non-core businesses as key drivers for expected EBIT improvement in the second half [36][37] Question: Volume performance relative to the broader industry - Management noted that overall company volume performance was down 2.5%, which is in line with broader industry trends, with core portfolio volumes down 1.5% [40][42] Question: Improvement expectations for non-core EBIT contribution - Management expects non-core EBIT margins to return to more traditional levels in the second half, with improvements driven by better contractual terms and pricing [50][51] Question: Exit rates on volume performance - Management stated that focus categories collectively outperformed the core business, with pet care showing strong growth and healthcare experiencing some weakness due to a weaker flu season [55][56]

Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2026 was $0.193, an 18% increase compared to the previous year, exceeding the midpoint of guidance [6][10] - EBIT for the quarter was $687 million, up approximately 4% on a comparable basis, with an EBIT margin of 12%, which is 110 basis points higher than last year [11][10] - Free cash outflow for Q1 was $343 million, representing a year-over-year improvement of over $160 million prior to acquisition-related costs [20] Business Line Data and Key Metrics Changes - In the global flexible packaging solutions segment, net sales increased by 25% on a constant currency basis, primarily due to the Berry acquisition, but were down 2% on a comparable basis [16] - Adjusted EBIT for the flexible packaging segment rose 28% on a constant currency basis to $426 million, driven by acquired earnings [17] - In the global rigid packaging solutions segment, net sales increased by 205% on a constant currency basis, with adjusted EBIT of $295 million, a 365% increase [19] Market Data and Key Metrics Changes - Emerging markets performed better than developed markets, with solid growth in Asia, while volumes in developed markets were down low single digits [10][16] - Demand in North America and Europe was down low single digits, with specific weakness noted in the unconverted film category in Europe [16][35] Company Strategy and Development Direction - The company is focused on delivering core business execution, integrating Berry, realizing synergies, and optimizing its portfolio [7][9] - The board approved an increase in the quarterly dividend to $0.13 per share, reflecting a commitment to shareholder returns [9][30] - Strategic initiatives include defining the core portfolio, exploring alternatives for non-core assets, and leveraging combined capabilities for growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering at least $260 million in synergies in Fiscal 2026, independent of macroeconomic improvements [9][30] - The company anticipates strong earnings and cash flow growth, with EPS growth guidance reaffirmed at 12%-17% for the fiscal year [22][30] - Management acknowledged challenges in consumer affordability impacting certain categories, particularly in Europe [35][42] Other Important Information - The company has identified opportunities for improvement in safety metrics, with 89% of combined sites injury-free in Q1 [7] - The transition of CFO Michael Casamento to an advisory role was noted, with Steve Sugar set to join as the new CFO [13][14] Q&A Session Summary Question: Concerns about volume decline in flexible business - Management noted that volumes were expected to be similar to Q4, with specific weakness in the unconverted film category in Europe due to general market softness [35][36] Question: Update on North American beverage business - Management reported good operational progress, with profitability increased sequentially despite volume softness, and ongoing exploration of strategic alternatives for the non-core business [38][39] Question: Volume performance in high-growth categories - Focus categories generally performed better than the overall business, with strong growth in pet care and dairy, while some categories like meat faced challenges [41][42] Question: Synergy benefits from combining businesses - Management highlighted strong synergy delivery and confidence in achieving at least $260 million in synergies, with ongoing momentum in the pipeline [51][52] Question: Update on private label exposure - Management acknowledged underrepresentation in private label markets and identified it as a focus area for future growth [75][76] Question: Prospects for healthcare business - Management expressed optimism for continued improvement in the healthcare segment, particularly in North America, while noting flat performance in Europe [80]

Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2026 was $0.193, an 18% increase compared to the previous year, exceeding the midpoint of guidance [5][10] - EBIT for the quarter was $687 million, up approximately 4% on a comparable basis, with an EBIT margin of 12%, which is 110 basis points higher than last year [11][10] - Free cash outflow for Q1 was $343 million, representing a year-over-year improvement of over $160 million before acquisition-related costs [19] Business Line Data and Key Metrics Changes - In the global flexible packaging solutions segment, net sales increased by 25% on a constant currency basis, primarily due to the Berry acquisition, but were down 2% on a comparable basis [16] - Adjusted EBIT for the flexible packaging segment rose 28% on a constant currency basis to $426 million, driven by acquired earnings [17] - In the global rigid packaging solutions segment, net sales increased by 205% on a constant currency basis, but were lower than the prior year on a comparable basis, reflecting a 1% volume decline [18][19] Market Data and Key Metrics Changes - Emerging markets performed better than developed markets, with solid growth in Asia, while developed markets in North America and Europe saw low single-digit declines in demand [10][16] - Volumes in focus categories such as pet care and dairy showed good growth, while broader nutrition categories experienced weakness [17][42] Company Strategy and Development Direction - The company is focused on delivering core business execution, integrating Berry, realizing synergies, and optimizing its portfolio [6][9] - The board approved an increase in the quarterly dividend to $0.13 per share, reflecting a commitment to returning value to shareholders [9][29] - The company aims to achieve at least $260 million in synergies in Fiscal 2026, with a total of $650 million expected through Fiscal 2028 [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong earnings and free cash flow growth, with EPS growth guidance of 12%-17% for Fiscal 2026 [5][21] - The company is well-positioned to achieve its financial objectives without relying on improvements in the macroeconomic environment [9][30] - Management acknowledged challenges in consumer affordability and market softness, particularly in Europe, affecting flexible packaging demand [34][35] Other Important Information - The company has identified opportunities for improvement in safety metrics, with 89% of combined sites remaining injury-free in Q1 [6] - The company is exploring strategic alternatives for non-core assets and has entered agreements to sell two businesses for approximately $100 million [8][9] Q&A Session Summary Question: What is driving the recent decline in flexible business volumes? - Management noted that the decline is primarily due to weakness in the unconverted film category in Europe, reflecting general market softness [34][35] Question: Any updates on the North American beverage business? - Management reported good operational progress and increased profitability, while exploring strategic alternatives for the non-core beverage business [37][39] Question: How are the focus categories performing? - Focus categories generally performed better than the overall business, with strong growth in pet care and dairy, while healthcare showed mixed results [41][42] Question: Can you elaborate on synergy benefits from the Berry acquisition? - Management highlighted that synergies are coming through and are expected to build, with a strong pipeline for revenue synergies [50][51] Question: What is the outlook for healthcare in 2026? - Management expects continued improvement in healthcare performance, particularly in North America, while European performance remains flat [74][75]

Core Insights - Amcor's acquisition of Berry Global is expected to significantly enhance its value creation capabilities for customers and shareholders, with projected adjusted EPS growth of 12-17% and free cash flow of $1.8 to $1.9 billion for fiscal 2026 [1][8][44] Financial Performance - For the three months ended June 30, 2025, Amcor reported net sales of $5,082 million, a 43% increase compared to the previous year, while net income was a loss of $39 million due to acquisition-related costs [3][5] - Adjusted EBITDA for the same period was $789 million, up 43%, and adjusted EBIT was $611 million, up 34% [5][20] - For the twelve months ended June 30, 2025, net sales reached $15,009 million, an 11% increase, with adjusted net income of $1,136 million, reflecting a 13% growth [5][24] Segment Performance - The Global Flexible Packaging Solutions segment saw net sales of $3,205 million, a 19% increase, while the Global Rigid Packaging Solutions segment reported net sales of $1,877 million, a 121% increase [25][33] - Adjusted EBIT for the Flexible Packaging segment was $450 million, up 12%, and for the Rigid Packaging segment, it was $204 million, up 173% [29][35] Synergy and Integration - Amcor anticipates achieving $650 million in total pre-tax synergy benefits from the Berry Global acquisition by the end of fiscal 2028, with $260 million expected in fiscal 2026 [10][44] - Integration efforts have been progressing well, with positive customer feedback leading to business wins linked to the acquisition [2][10] Portfolio Optimization - Amcor has identified a $20 billion core portfolio focused on consumer packaging and dispensing solutions for nutrition and health, aiming to enhance growth in attractive categories [11][12] - The company is exploring alternatives for approximately $2.5 billion in annual sales from businesses less aligned with the core portfolio [12][13] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of 12.75 cents per share, increasing the annual dividend for fiscal 2025 to 51.0 cents per share [14][15]