Amcor shares lift after delivering 92% gain in adjusted EBITDA in Q1

Adjusted EBIT meanwhile lifted 85% to USD687 million in constant currency terms. EBIT margins were 12%, up 110 basis points.

Earnings per share fell to 11.3 US cents from 13.2 US cents in the September quarter. However, adjusted earnings per share lifted 18% from 16.2 US cents to 19.3 cents which was at the mid-point of Amcor’s guidance range and market consensus by 4% according to Visible Alpha.

Amcor also declared a dividend of 13 US cents, higher than the 12.75 cents declared in the previous corresponding period. It was in line with expectations.

The company’s adjusted earnings guidance for FY26 of 80 to 83 cents per share, representing 12-17% constant currency growth.

The context: On 30 April, Amcor completed an all-stock acquisition of Berry Global. Amcor CEO Peter Konieczny said he is “pleased with how the legacy Amcor and Berry teams have come together as one to integrate and execute against our priorities”.

What they said: RBC Capital Markets analyst Mark Wilson said the market “will initially focus on the EPS beat and the affirmation of full year guidance”. However, Wilson said that cashflow was “poor” and leverage had increased.

“Net debt was higher than expected at USD14 billion and net leverage increased to 3.6x. Free cashflow was an outflow of USD522 million”.

Konieczny said: “As we look ahead, we are confident in delivering $650 million of identified synergies, and over the three year period ending [FY28] we expect synergies alone to drive more than 30% EPS growth.

“At the same time, we are focused on capturing organic growth opportunities to create an even stronger business that delivers significant long term value for shareholders and is the global packaging partner of choice for customers.”