Amcor plc

Amcor reported Q4 fiscal 2026 revenue of $6.4 billion, adjusted EBITDA of $1.045 billion, adjusted EBIT of $836 million, and adjusted EPS of $1.23, up 23% year over year. For the full year, adjusted EPS was $4.02, up 13%, and free cash flow was $1.3 billion; management said free cash flow was $200 million below outlook because of working capital impacts tied to the Middle East conflict and accelerated integration spending. The core portfolio generated $21 billion in sales for the year, with EBIT margins of approximately 12.7% and EBIT dollar growth of 8%. For the transition period ending December 31, 2026, Amcor expects adjusted EPS of $1.80 to $1.90, with higher interest and tax expense partly offsetting improved operating performance; leverage is expected to be 3.5x to 3.6x at December 31, 2026.

Peter Konieczny framed the quarter as evidence that the combined Amcor-Berry business is now starting to show its potential, with integration largely behind the company and growth becoming more visible. He emphasized that Q4 volume improvement was broad-based and not driven by major one-offs, and he pointed to foodservice, pet care, protein and health-care subcategories as areas with momentum. His tone was constructive and confident, especially on 2027, when he said the company has line of sight to double-digit adjusted EPS growth and expects most of the $650 million synergy target to be achieved by year-end 2027.

Stephen Scherger focused on the mechanics behind the results: strong price realization, synergy capture, and cash-flow headwinds from working capital. He said the quarter included about $280 million of price realization, full-year synergies of $285 million, and year-end leverage of 3.5x; he also noted $290 million of Berry transaction restructuring and integration-related cash costs, with more of that expected to fall to about $50 million next period. He said the company expects to recover more than $500 million of working capital cash over the next 12 months and that cash generation, along with mid-single-digit EBITDA growth, supports the path toward about 3x leverage by year-end 2027.

Analysts pressed management on the $500 million working-capital reversal, the outlook for volume growth, pricing versus cost dynamics, and how much of 2027’s improvement is already embedded. Scherger said $100 million to $300 million of the working-capital recovery should come back in the first 6 months, and that the transition-period EPS guide assumes flat to very modestly up volume. Management also said price realization of about $280 million in Q4 largely offset inflation, and that July volumes were consistent with Q4. Questions about health-care softness were met with a mix-shift explanation: lower-margin medical volumes are down, but higher-margin pharma and other products are improving, with several new wins ramping over time.