Company Reports

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 16% over the five years to fiscal 2025, comparing favorably against a weighted average cost of capital of 8%.

Amcor's fiscal 2026 adjusted EPS of USD 4.02 was at the top end of recently lowered guidance. The period was marred by macroeconomic weakness, particularly in the US, and cost inflation since the beginning of the Iran war.

Amcor's adjusted EPS of USD 2.79 for the first nine months of fiscal 2026 is 11% higher than the prior corresponding period, including contributions from Berry. However, management downgraded guidance, now expecting fiscal 2026 EPS about 2% lower at the midpoint and less free cash flow.

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 16% over the five years to fiscal 2025, comparing favorably against a weighted average cost of capital of 8%.

It's been a year since Amcor acquired Berry, increasing its debt. Net debt of USD 14 billion as of Dec, 31. 2025 is equivalent to net debt/EBITDA of 3.6 times, against a current covenant of 3.9 times (then 4.25). In the months since, the Iran war has begun weakening the US economy.

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 16% over the five years to fiscal 2025, comparing favorably against a weighted average cost of capital of 8%.

Amcor's first-half fiscal 2026 adjusted EBIT of USD 1.3 billion was 73% higher than last year on a constant-currency basis. This included Berry and a 4% uplift from merger benefits. Sales of USD 11.1 billion were 66% higher, including a negative 3% impact from lower prices and volumes.

Amcor has undertaken a share consolidation or reverse stock split. Every five CDIs listed on the ASX and ordinary shares listed on the NYSE have been consolidated into one, reducing ordinary shares outstanding from approximately 2.3 billion to 461 million.

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 16% over the five years to fiscal 2025, comparing favorably against a weighted average cost of capital of 8%.

Amcor's first-quarter fiscal 2026 underlying EBIT grew 85% year on year to USD 687 million, including first quarterly contributions from Berry. Cost savings of USD 38 million were achieved, with the company targeting full-year savings from the combination of at least USD 260 million.

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 16% over the five years to fiscal 2025, comparing favorably against a weighted average cost of capital of 8%.

Amcor's fiscal 2025 adjusted earnings per share of USD 0.71 increased 3%, excluding currency impact. Growth reflected two months of contributions from Berry, approximately USD 200 million EBIT, without which adjusted EBIT would be flat on fiscal 2024.

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 17% over the five years to fiscal 2024, comparing favorably against a weighted average cost of capital of 8%.

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 17% over the five years to fiscal 2024, comparing favorably against a weighted average cost of capital of 8%.

Amcor's fiscal 2025 third-quarter net sales were flat on the previous corresponding period on a constant-currency basis. Flexibles volumes improved by 1% year on year as healthcare gained traction, but the smaller rigids segment dragged due to softness in the North America beverages business.

US President Trump temporarily lowered tariffs to 10% on most ex-China US imports for a three-month period while countries seek to negotiate. But China is facing an even higher 145% tariff. Most ANZ industrial shares rallied, returning to, or nearing, pre-"liberation day" prices.

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 17% over the five years to fiscal 2024, comparing favorably against a weighted average cost of capital of 8%.

Narrow-moat Amcor’s first-half fiscal 2025 adjusted earnings per share of USD 0.32 million was 5% higher than the previous corresponding period on a constant-currency basis. Although revenue was flat with the PCP, this was more than offset by cost savings from restructuring, with adjusted EBIT margin improving by 40 basis points to 11%

Amcor’s strategy revolves around strategic acquisitions and divestments, market share growth, and investment in capacity and capabilities. We see several merits to its strategy, which has led to organic and acquisitive growth and average annual returns on invested capital of 17% over the five years to fiscal 2024, comparing favorably against a weighted average cost of capital of 8%.

We recommend narrow-moat Amcor shareholders vote in favor of its proposed merger with Berry at the extraordinary general meeting, now scheduled for Feb. 26, 2025, or Feb. 25, 2025 for those outside Australia. We expect the merger will proceed as planned given the mutual unanimous board recommendations and potential synergies.