Amcor’s Q1 Sales Soar 68%, Adjusted EPS Up 18% Post-Berry Deal

Strong Start to FY26 Post-Berry Acquisition

Amcor plc has delivered a robust first quarter for fiscal year 2026, marking its first full quarter operating as a combined entity with Berry Global. The packaging giant reported net sales of $5.745 billion, a 68% increase on a constant currency basis compared to the prior year. This surge reflects the transformational acquisition of Berry Global completed in April 2025, which has significantly expanded Amcor’s footprint and product offerings.

Adjusted EBITDA climbed 92% to $909 million, while adjusted EBIT rose 85% to $687 million, underscoring strong operational performance. The company’s EBIT margin improved by 110 basis points to 12.0%, signaling enhanced profitability from integration and cost discipline.

Synergies and Integration Progress

Amcor realized approximately $38 million in synergies during the quarter, hitting the upper end of its expected range. These synergies include $5 million favorably impacting interest expense and $33 million boosting adjusted EBIT. Management is confident in delivering at least $260 million in pre-tax synergy benefits for fiscal 2026, contributing to an anticipated 12% accretion in earnings per share (EPS).

Looking further ahead, Amcor targets $650 million in total pre-tax synergies by the end of fiscal 2028, which it expects will drive more than 30% EPS growth over the three-year period. CEO Peter Konieczny highlighted the strong collaboration between legacy Amcor and Berry teams, noting positive customer reception to the expanded product portfolio and innovation capabilities.

Segment Performance and Market Dynamics

The Global Flexible Packaging Solutions segment saw net sales rise 25% on a constant currency basis to $3.257 billion, with adjusted EBIT up 28% to $426 million. Volume declines in some categories were offset by favorable price/mix and synergy gains. The Global Rigid Packaging Solutions segment experienced even more dramatic growth, with net sales increasing 205% to $2.488 billion and adjusted EBIT surging 365% to $295 million, reflecting the integration of Berry’s consumer packaging businesses.

Volume trends were mixed across regions and categories, with some softness in North America beverage and beauty & wellness sectors, balanced by growth in healthcare, petcare, and specialty containers. The company continues to manage raw material cost pass-throughs carefully, which had a modest negative impact on sales in rigid packaging.

Financial Position and Shareholder Returns

Amcor reported GAAP net income of $262 million and adjusted EPS of 19.3 cents, an 18% increase excluding currency effects. The company’s net debt stood at $14 billion at quarter-end, reflecting acquisition-related financing. Free cash flow was negative $343 million, in line with expectations after funding acquisition-related costs.

Reflecting confidence in its growth trajectory and cash flow generation, Amcor increased its quarterly dividend to 13.0 US cents per share, up from 12.75 cents a year earlier. The dividend will be paid in US dollars on the NYSE and converted to Australian dollars for ASX-listed CDIs.

Outlook Reaffirmed Amid Integration and Growth Focus

Amcor reaffirmed its fiscal 2026 guidance, expecting adjusted EPS growth of 12-17% on a constant currency basis to 80-83 cents per share and free cash flow between $1.8 billion and $1.9 billion. The outlook assumes full-year ownership of Berry Global and excludes potential impacts from portfolio optimization actions.

Management emphasized a dual focus on capturing organic growth opportunities and delivering on synergy targets to build a stronger, more sustainable packaging business. The company’s commitment to innovation and sustainability positions it well to meet evolving customer and consumer demands in nutrition, health, beauty, and wellness sectors.