Amcor (AMCR) Q3 2026 earnings summary

Executive summary

• Achieved first anniversary of the Amcor-Berry combination, with smooth integration and robust synergy delivery, exceeding initial targets and creating a unified organization.

• Net sales for Q3 2026 reached $5,914 million, up 77% year-over-year, primarily due to the Berry acquisition, with net income up 42% to $278 million.

• Six non-core business divestitures totaling $500 million advanced portfolio optimization, sharpening focus on higher-growth core segments.

• Q3 results were resilient and in line with expectations, despite challenging market dynamics, inflationary pressures, and geopolitical risks.

• No material operational or financial impact from the Middle East conflict expected for Q4, but ongoing uncertainty remains.

Financial highlights

• Q3 adjusted EPS rose 6% year-over-year to $0.96; nine-month adjusted EPS up 11% to $2.79.

• Quarterly revenue reached $5.9 billion, adjusted EBITDA $892 million (up 87%), and adjusted EBIT $687 million (up 79%), all significantly higher year-over-year due to the Berry acquisition and synergy realization.

• Free cash outflow was $39 million for Q3 after $78 million in restructuring and integration costs; YTD adjusted free cash flow was $169 million.

• Quarterly dividend increased to $0.65 per share, up 2% year-over-year.

• Net debt as of March 31, 2026 was $14,266 million, with leverage at 3.8x LTM EBITDA.

Outlook and guidance

• Fiscal 2026 adjusted EPS expected in the range of $3.98–$4.03, implying ~12% growth year-over-year.

• Q4 adjusted EPS midpoint implies over 20% year-over-year growth.

• Fiscal 2026 free cash flow guidance revised to $1.5–$1.6 billion due to higher inventory, down from $1.8–$1.9 billion.

• Year-end leverage expected at 3.4x–3.5x, with a clear path to 2.5x–3x as supply chains normalize and divestitures close.

• Board approved change of financial year end to December 31, effective after a transition period ending December 2026.