AMCR Q2 2026 Earnings Call Summary

Revenue: $5.4 billion for Q2, driven by the Berry acquisition.
EBITDA: $826 million.
EBIT: $603 million.
Adjusted EPS: $0.86 for the quarter, up 7% year-over-year; 14% increase for the first half.
Free Cash Flow: $289 million for Q2, with a first-half cash outflow of $53 million.
Dividend: Quarterly dividend declared at $0.65 per share, an increase from the previous year.
Adjusted Leverage: 3.6 times exiting the quarter, with expectations to improve to 3.1-3.2 times by fiscal year-end.

The acquisition of Berry is seen as transformative, positioning Amcor as a leader in consumer packaging.
Safety performance remains strong, with a total recordable incident rate of 0.52.
Synergy realization is progressing well, with $55 million in Q2 and a total of $93 million for the first half. The company is on track to achieve at least $260 million in synergies for fiscal 2026 and $650 million by fiscal 2028.
Portfolio optimization is underway, with evaluations of $2.5 billion in non-core businesses, including the North American beverage segment.
Focus categories (health, beauty, wellness, protein, liquids, food service, pet care) are performing better than the overall portfolio, with pet care showing strong growth.

Amcor reaffirmed its adjusted EPS guidance for fiscal 2026 at $4.2 to $4.5 per share, reflecting a one-for-five reverse stock split.
Free cash flow guidance remains at $1.8 billion to $1.9 billion for the fiscal year, with expectations for stronger cash flow in the second half.
Q3 adjusted EPS is expected to be between $0.90 and $1.00 per share, with anticipated synergy benefits of $70 to $80 million.

Volume performance remains a concern, with overall company volumes down 2.5% in Q2, consistent with Q1 trends.
Non-core business performance was weak, particularly in the North American beverage segment, which experienced declining volumes and lower EBIT margins (3%).
The market environment is described as challenging, with low single-digit declines in volumes expected to persist.
There are concerns about the impact of consumer behavior shifts towards healthier options, which may affect demand in certain categories.

Management indicated that while they are optimistic about synergy capture and potential revenue growth, they are planning for a market environment similar to the first half of the year.
Discussions with customers have led to renegotiated contracts that provide better pricing and volume commitments, which is expected to stabilize future performance.
The focus categories are outperforming the overall portfolio, but the company remains cautious about reading too much into short-term volume fluctuations.
There is a recognition of the need to adapt to changing consumer preferences, particularly with the rise of health-conscious trends, but management believes Amcor's broad portfolio will allow it to navigate these shifts effectively.

AMCR — Amcor plc