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. Segmentally, Global Flexible Packaging Solutions sales rose 16% on a constant-currency basis with adjusted EBIT of $533 million and a 15.1% margin, while Global Rigid Packaging Solutions sales rose 35% on a constant-currency basis with adjusted EBIT of $352 million and a 12.3% margin. Management said Q4 synergies were $115 million, bringing FY26 synergies to $285 million. For the transition period ending December 31, 2026, Amcor expects adjusted EPS of $1.80 to $1.90 per share and leverage of 3.5x to 3.6x at December 31, 2026. Looking to calendar 2027, management said it has line of sight to double-digit adjusted EPS growth, expects leverage to be approximately 3x by year-end 2027, and plans to modestly grow the dividend.

Peter Konieczny framed FY26 as a year of successful integration and growth enablement, saying the company delivered on its prior commitment to double-digit EPS growth despite a demanding environment. He emphasized that the Berry combination is already creating a broader global platform, stronger customer solutions and more opportunities in higher-growth, higher-margin categories. His tone was upbeat and confident, especially on calendar 2027, which he described as a “clean year” where more of the transformation benefits should come through.

Stephen Scherger focused on the financial bridge from the strong FY26 finish into the transition period. He cited $280 million of price realization in Q4, said price/cost remained stable, and noted that the quarter’s results reflected 1 additional month of Berry earnings plus synergy capture and disciplined cost management. On cash, he said FY26 free cash flow of $1.3 billion was $200 million below outlook because of working capital tied to the Middle East conflict and accelerated integration spending, but the company expects to recover more than $500 million of cash over the next 12 months. He also said leverage ended at 3.5x and should move to roughly 3x by end-2027, with transition-period EPS supported by $0.13 to $0.21 of synergy and operating improvement at the midpoint, partly offset by $0.10 to $0.12 of higher interest and taxes.

Analysts pressed on working capital recovery, price/cost, volume sustainability, health care softness, and the path to 2027 EPS and free cash flow. Management said the roughly $500 million Middle East-related working capital impact should come back over 12 months, with a fair assumption of $100 million to $300 million returning in the first six months, and stressed that July volumes were consistent with Q4. On growth, PK said the Q4 volume improvement was broad-based rather than driven by one-offs, and explained that health care volume softness reflected mix shift away from lower-margin medical categories toward higher-margin pharma products, with several new wins still ramping.