AMCR earnings analysis
What we found in AMCR's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Amcor delivered strong reported fiscal 2026 growth and profitability, but the improvement was principally merger-driven: revenue rose 57% to $23.506 billion while underlying sales excluding the merger, currency and raw-material pass-through declined approximately 2%. Rigid Packaging was the primary segment growth driver, and operating cash flow increased to $2.151 billion as synergy benefits began to emerge. The outlook remains balanced because substantial debt, ongoing Berry integration, geopolitical cost inflation, portfolio-review uncertainty and the fiscal-year transition offset the improved earnings trajectory.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Merger drove scale and margin expansion
- Fiscal 2026 net sales increased 57% to $23.506 billion, primarily reflecting $7.864 billion of incremental sales from the Berry merger, while reported gross margin improved to 20.0% from 18.9% and operating margin to 8.1% from 6.7%.
- Reported earnings rebounded sharply
- Diluted EPS increased to $2.38 from $1.60 in fiscal 2025 and $2.52 in fiscal 2024. Net income attributable to Amcor rose 116% year over year to $1.106 billion, although higher merger-related debt increased interest expense by $280 million to $676 million.
- Rigid Packaging led segment growth
- Flexible Packaging revenue rose 27% to $12.829 billion, with Adjusted EBIT up 28% to $1.789 billion; its 13.9% margin was unchanged. Rigid Packaging revenue increased 116% to $10.677 billion and Adjusted EBIT rose 170% to $1.176 billion, with margin improving to 11.0% from 8.8%.
- Cash generation strengthened
- Operating cash flow improved to $2.151 billion from $1.390 billion in fiscal 2025 and $1.321 billion in fiscal 2024. Capital expenditures increased to $922 million from $580 million, including $458 million in Rigid Packaging and $451 million in Flexible Packaging.
- Synergy roadmap supports profitability
- Management targets approximately $650 million of annual pre-tax net cost synergies from the Berry merger by the end of the third year post-merger, while fiscal 2026 synergy benefits contributed to Adjusted EBIT growth in both segments.
- Scale and innovation underpin the moat
- Amcor invested approximately $170 million in R&D during fiscal 2026 and has more than 7,000 patents, registered designs and trademarks, supporting its positioning in sustainable packaging, material science and product innovation.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Fiscal-year transition reduces comparability
- The company changed its fiscal year-end from June 30 to December 31, creating a six-month transition period from July 1 through December 31, 2026. Amcor will file a Transition Report on Form 10-K/T and does not provide a comparable annual outlook in this filing, increasing near-term comparability and forecasting uncertainty.
- Geopolitical inflation pressures margins
- The filing states that the Middle East conflict disrupted global energy markets and caused higher raw-material and transportation costs. A hypothetical 1% increase in key raw-material prices not passed through to customers would have reduced pre-tax income by approximately $85 million; the company also reported $611 million of interest paid in fiscal 2026.
- Portfolio review remains unresolved
- The portfolio review covers businesses with approximately $2.5 billion of combined sales, but Amcor has not established a deadline or definitive timetable for completing the review. Only approximately $500 million of the identified non-core portfolio had been divested or was in process, creating execution and valuation uncertainty.
- Leverage constrains capital flexibility
- Amcor had $14.012 billion of total debt and $12.897 billion of net debt at June 30, 2026, while interest expense increased 71% to $676 million. Approximately 15% of indebtedness was variable rate, and a hypothetical 1% increase in relevant floating rates would have increased annual pre-tax expense by $20 million.
- Post-merger goodwill is impairment-sensitive
- The Global Rigid Packaging Solutions reporting unit carried $6.056 billion of goodwill at June 30, 2026, within total goodwill of $12.075 billion. The filing identifies revenue growth, operating income growth, market multiples and discount rates as key impairment assumptions, making the enlarged post-merger asset base sensitive to weaker performance or higher rates.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.38
- Gross margin
- 20.0%
- Operating margin
- 8.1%
- Segment
- Global Flexible Packaging Solutions: $12.829 billion revenue, 55% of consolidated sales; $1.789 billion Adjusted EBIT at a 13.9% margin.
- Segment
- Global Rigid Packaging Solutions: $10.677 billion revenue, 45% of consolidated sales; $1.176 billion Adjusted EBIT at an 11.0% margin.
What they said about what is next.
The 10-K does not provide quantitative annual EPS or revenue guidance. It discusses the six-month transition period beginning July 1, 2026 and provides no comparable numeric outlook; the transition-period outlook was provided separately in the August 12, 2026 earnings release.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 7, 2026
- Amcor achieved robust Q3 results with net sales of $5.914 billion, up 77% year-over-year, driven primarily by the acquisition of Berry Global. Despite the rise in gross profit to $1.19 billion, the operating margin…
- 10-Q · November 6, 2025
- Amcor reported quarterly net sales of $5,745 million (Q vs. prior-year $3,353 million), driven by the completed Berry merger, with gross profit of $1,124 million. Operating income rose to $461 million but operating…
- 10-K · August 15, 2025
- Amcor completed the merger with Berry Global on April 30, 2025 (Berry shareholders received 7.25 Amcor ordinary shares per Berry share) and positions itself as a global leader in consumer packaging focused on customers,…
- 10-Q · May 1, 2024
- Amcor reported quarterly net sales of $3,411 million (Q3) with gross profit of $692 million and operating income of $307 million, producing diluted EPS of $0.129 for the three months ended March 31, 2024. Revenue…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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