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Amcor September 2026-End Earnings Miss on Higher Costs, View Cut
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Key Takeaways
Amcor's adjusted EPS fell 2.1% y/y to 95 cents, missing estimates as higher costs weighed on earnings.
Revenues rose 6.7% to $6.13B, driven by raw-material cost pass-through and broad-based volume growth.
AMCR cut transition-period EPS guidance to $1.70-$1.80 but reaffirmed double-digit EPS growth for 2027.
Amcor Plc (AMCR - Free Report) reported adjusted earnings per share (EPS) of 95 cents for the quarter ended Sept. 30, 2026, missing the Zacks Consensus Estimate of 96 cents by 1.04%. The bottom line declined 2.1% from 97 cents in the year-ago quarter. Higher energy and distribution costs, increased interest expenses and divestitures weighed on earnings despite synergy benefits and organic volume growth.
Including special items, EPS was 52 cents compared with 57 cents a year ago.
As part of transitioning its reporting cycle to a December-end, the company will have a six-month reporting period from July 1, 2026, through Dec. 31, 2026, bridging the gap from its previous year-end on June 30 (Transition Period).
Total revenues increased 6.7% year over year to $6.13 billion in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $5.83 billion by 5.22%.
The sales increase primarily reflected the pass-through of higher raw-material costs, which contributed approximately $435 million, or 8%, to revenues. Divestitures had an unfavorable impact of approximately $112 million, or 2%. On a constant-currency basis, revenues increased 6%.
Volume growth was broad-based across nearly all end markets, particularly pet food, foodservice, and beauty and wellness. Excluding non-core and divested businesses, volumes increased 1.5%. Emerging markets recorded 2% volume growth, led by China. Price/mix had no material impact on revenues.
Amcor's September-End Margins
The cost of sales rose 7.6% year over year to $4.97 billion. Gross profit increased 3.1% to $1.16 billion. The gross margin contracted to 18.9% from 19.6% in the year-ago quarter.
Selling, general and administrative expenses increased 7.6% to $468 million. Adjusted EBITDA declined 2.9% to $883 million from $909 million in the prior-year quarter.
Adjusted EBIT was $689 million compared with $687 million a year ago. The adjusted EBIT margin contracted to 11.2% from 12%. Higher raw-material cost pass-through diluted the margin by 90 basis points. Excluding this impact, the adjusted EBIT margin was 12.1%, up 10 basis points on a comparable basis.
AMCR's Segmental Performances
Global Flexible Packaging Solutions: Net revenues increased 10% year over year to $3.36 billion. Our projection for the Global Flexible Packaging Solutions segment was $3.05 billion. The pass-through of higher raw-material costs contributed approximately $316 million to sales. Volumes remained flat, although they increased around 1%, excluding unconverted films in North America.
The segment's adjusted EBIT increased 1% to $414 million from $409 million. Berry acquisition synergies were partly offset by higher energy and distribution costs. The adjusted EBIT margin declined to 12.3% from 13.4%.
Global Rigid Packaging Solutions: Revenues increased 3% year over year to $2.77 billion. We projected sales of $2.71 billion for this quarter. Divestitures reduced revenues by approximately $107 million, while raw-material cost pass-through contributed $119 million. Excluding non-core businesses and divestitures, volumes increased approximately 4%.
Adjusted EBIT declined 3% to $303 million from $312 million. The segment's adjusted EBIT margin contracted to 10.9% from 11.6%. Divestitures and inflationary pressures weighed on profitability despite synergy benefits and higher volumes.
Amcor's Cash Flow & Balance Sheet Updates
AMCR reported a free cash outflow of $820 million compared with an outflow of $343 million in the year-ago quarter. The deterioration primarily reflected working-capital impacts stemming from resin price volatility associated with the Middle East conflict.
Net cash used in operating activities totaled $527 million compared with $133 million a year ago. Capital expenditure increased to $301 million from $238 million.
As of Sept. 30, 2026, cash and cash equivalents totaled $832 million compared with $1.12 billion at June-end. Net debt increased to $14.01 billion from $12.90 billion, while leverage stood at 3.76 times. The company expects to recover more than $500 million in cash-flow impacts by the end of calendar 2027.
AMCR Lowers Transition-Period Earnings Outlook
Amcor lowered its adjusted EPS guidance for the six-month transition period ending Dec. 31, 2026, to $1.70-$1.80 from the previously expected $1.80-$1.90. The downward revision primarily reflects the timing of passing through higher energy and distribution costs. The company expects leverage of 3.6X at December-end compared with its previous projection of 3.5-3.6X.
For calendar 2027, AMCR reaffirmed expectations for double-digit adjusted EPS growth and a leverage target of 3.0X by year-end. The company expects actions addressing inflationary pressures to prevent these higher costs from affecting 2027 results.
AMCR’s Price Performance
In the past year, the company’s shares have gained 20.2% compared with the industry’s 15% growth.
Performances of Other Packaging Stocks This Earnings Season
Packaging Corporation of America (PKG - Free Report) reported third-quarter 2026 adjusted earnings of $3.04 per share, rising 11.4% year over year and beating the Zacks Consensus Estimate of $2.95 by 3.05%. Packaging Corp’s net sales increased 12.5% to $2.60 billion and beat the consensus estimate of $2.56 billion.
Sonoco Products Company (SON - Free Report) posted adjusted earnings of $1.67 per share in the third quarter of 2026, missing the Zacks Consensus Estimate of $1.76. The figure dipped 13% from $1.92 in the year-ago quarter. Sonoco’s net sales of $2.04 billion declined 4.2% year over year and missed the consensus mark of $2.09 billion.
Avery Dennison Corporation (AVY - Free Report) registered adjusted earnings of $2.42 per share for the third quarter of 2026, up 2.1% from $2.37 in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $2.30. Avery Dennison’s sales increased 5.2% year over year to $2.33 billion, beating the consensus estimate of $2.30 billion.
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Amcor September 2026-End Earnings Miss on Higher Costs, View Cut
Key Takeaways
Amcor Plc (AMCR - Free Report) reported adjusted earnings per share (EPS) of 95 cents for the quarter ended Sept. 30, 2026, missing the Zacks Consensus Estimate of 96 cents by 1.04%. The bottom line declined 2.1% from 97 cents in the year-ago quarter. Higher energy and distribution costs, increased interest expenses and divestitures weighed on earnings despite synergy benefits and organic volume growth.
Including special items, EPS was 52 cents compared with 57 cents a year ago.
As part of transitioning its reporting cycle to a December-end, the company will have a six-month reporting period from July 1, 2026, through Dec. 31, 2026, bridging the gap from its previous year-end on June 30 (Transition Period).
Amcor PLC Price, Consensus and EPS Surprise
Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote
AMCR's Revenues Rise on Higher Raw Material Costs
Total revenues increased 6.7% year over year to $6.13 billion in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $5.83 billion by 5.22%.
The sales increase primarily reflected the pass-through of higher raw-material costs, which contributed approximately $435 million, or 8%, to revenues. Divestitures had an unfavorable impact of approximately $112 million, or 2%. On a constant-currency basis, revenues increased 6%.
Volume growth was broad-based across nearly all end markets, particularly pet food, foodservice, and beauty and wellness. Excluding non-core and divested businesses, volumes increased 1.5%. Emerging markets recorded 2% volume growth, led by China. Price/mix had no material impact on revenues.
Amcor's September-End Margins
The cost of sales rose 7.6% year over year to $4.97 billion. Gross profit increased 3.1% to $1.16 billion. The gross margin contracted to 18.9% from 19.6% in the year-ago quarter.
Selling, general and administrative expenses increased 7.6% to $468 million. Adjusted EBITDA declined 2.9% to $883 million from $909 million in the prior-year quarter.
Adjusted EBIT was $689 million compared with $687 million a year ago. The adjusted EBIT margin contracted to 11.2% from 12%. Higher raw-material cost pass-through diluted the margin by 90 basis points. Excluding this impact, the adjusted EBIT margin was 12.1%, up 10 basis points on a comparable basis.
AMCR's Segmental Performances
Global Flexible Packaging Solutions: Net revenues increased 10% year over year to $3.36 billion. Our projection for the Global Flexible Packaging Solutions segment was $3.05 billion. The pass-through of higher raw-material costs contributed approximately $316 million to sales. Volumes remained flat, although they increased around 1%, excluding unconverted films in North America.
The segment's adjusted EBIT increased 1% to $414 million from $409 million. Berry acquisition synergies were partly offset by higher energy and distribution costs. The adjusted EBIT margin declined to 12.3% from 13.4%.
Global Rigid Packaging Solutions: Revenues increased 3% year over year to $2.77 billion. We projected sales of $2.71 billion for this quarter. Divestitures reduced revenues by approximately $107 million, while raw-material cost pass-through contributed $119 million. Excluding non-core businesses and divestitures, volumes increased approximately 4%.
Adjusted EBIT declined 3% to $303 million from $312 million. The segment's adjusted EBIT margin contracted to 10.9% from 11.6%. Divestitures and inflationary pressures weighed on profitability despite synergy benefits and higher volumes.
Amcor's Cash Flow & Balance Sheet Updates
AMCR reported a free cash outflow of $820 million compared with an outflow of $343 million in the year-ago quarter. The deterioration primarily reflected working-capital impacts stemming from resin price volatility associated with the Middle East conflict.
Net cash used in operating activities totaled $527 million compared with $133 million a year ago. Capital expenditure increased to $301 million from $238 million.
As of Sept. 30, 2026, cash and cash equivalents totaled $832 million compared with $1.12 billion at June-end. Net debt increased to $14.01 billion from $12.90 billion, while leverage stood at 3.76 times. The company expects to recover more than $500 million in cash-flow impacts by the end of calendar 2027.
AMCR Lowers Transition-Period Earnings Outlook
Amcor lowered its adjusted EPS guidance for the six-month transition period ending Dec. 31, 2026, to $1.70-$1.80 from the previously expected $1.80-$1.90. The downward revision primarily reflects the timing of passing through higher energy and distribution costs. The company expects leverage of 3.6X at December-end compared with its previous projection of 3.5-3.6X.
For calendar 2027, AMCR reaffirmed expectations for double-digit adjusted EPS growth and a leverage target of 3.0X by year-end. The company expects actions addressing inflationary pressures to prevent these higher costs from affecting 2027 results.
AMCR’s Price Performance
In the past year, the company’s shares have gained 20.2% compared with the industry’s 15% growth.
Image Source: Zacks Investment Research
Amcor’s Zacks Rank
AMCR currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Packaging Stocks This Earnings Season
Packaging Corporation of America (PKG - Free Report) reported third-quarter 2026 adjusted earnings of $3.04 per share, rising 11.4% year over year and beating the Zacks Consensus Estimate of $2.95 by 3.05%. Packaging Corp’s net sales increased 12.5% to $2.60 billion and beat the consensus estimate of $2.56 billion.
Sonoco Products Company (SON - Free Report) posted adjusted earnings of $1.67 per share in the third quarter of 2026, missing the Zacks Consensus Estimate of $1.76. The figure dipped 13% from $1.92 in the year-ago quarter. Sonoco’s net sales of $2.04 billion declined 4.2% year over year and missed the consensus mark of $2.09 billion.
Avery Dennison Corporation (AVY - Free Report) registered adjusted earnings of $2.42 per share for the third quarter of 2026, up 2.1% from $2.37 in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $2.30. Avery Dennison’s sales increased 5.2% year over year to $2.33 billion, beating the consensus estimate of $2.30 billion.