Amcor Cuts Transition-Period Outlook After Energy Costs

The Tip Desk · November 5, 2026 · 3 min read

The packaging maker lowered six-month adjusted EPS to $1.70–$1.80 after energy and distribution costs accelerated late in the September quarter.

Amcor (AMCR) lowered its outlook for the six-month transition period ending December 31, 2026, citing the timing of pass-through of higher energy and distribution costs that accelerated late in the September quarter. The company now expects adjusted EPS of $1.70 to $1.80, down from a prior range of $1.80 to $1.90, and now expects leverage of approximately 3.6 times at year-end versus a previous 3.5 to 3.6 times range.

Chief executive Peter Konieczny said the company does not expect those higher costs to impact 2027 results and that actions to address the inflationary pressures are underway. He said synergy realization was in line with expectations and that the company remains on track to achieve its three-year $650 million target.

For the three months ended September 30, 2026, net sales were $6,129 million, up 7% from $5,745 million a year earlier, or 6% in constant currency. The company said an unfavorable impact from divestitures of about $112 million, or 2%, was more than offset by a $435 million, or 8%, favorable pass-through of raw-material cost movements. Volumes were about 1% higher; price/mix had no material impact.

Adjusted EBITDA was $883 million, down 3% from $909 million a year earlier. Adjusted EBIT of $689 million was in line with $687 million a year earlier on a constant-currency basis, including about $17 million, or 3%, of divestiture drag and about $50 million of Berry acquisition synergies. GAAP net income attributable to Amcor was $242 million, or $0.52 a share, versus $262 million and $0.57 a year earlier. Adjusted diluted EPS was $0.95 versus $0.97.

Adjusted EBIT margin was 11.2%, after 90 basis points of dilution from higher sales dollars tied to raw-material pass-through. Excluding that impact, the margin was 12.1%, up 10 basis points on a comparable basis.

Global Flexible Packaging Solutions net sales were $3,359 million, up 10% from $3,056 million, entirely from about $316 million, or 10%, of raw-material pass-through. Volumes were in line with the year-ago quarter, up about 1% excluding North America unconverted films. Adjusted EBIT was $414 million, up 1% from $409 million. Adjusted EBIT margin was 12.3% versus 13.4% a year earlier; excluding pass-through, the margin was 13.6%, up 20 basis points on a comparable basis.

Global Rigid Packaging Solutions net sales were $2,770 million, up 3% from $2,689 million, or 2% in constant currency, including about $107 million, or 4%, of divestiture drag and about $119 million, or 4%, of raw-material pass-through. Volumes excluding non-core and divested businesses were about 4% higher. Adjusted EBIT was $303 million, down 3% from $312 million. Adjusted EBIT margin was 10.9% versus 11.6%; excluding pass-through, the margin was 11.4%, down 20 basis points on a comparable basis.

Free cash flow was an outflow of $820 million versus an outflow of $343 million a year earlier, after about $31 million of Berry-related restructuring and integration costs. The company attributed the larger outflow to working-capital impacts from resin-price volatility related to the Middle East conflict. Net debt was $14,011 million at September 30, 2026.

The Board declared a quarterly cash dividend of 66.0 cents a share, up from 65.0 cents a share in the same quarter last year.

Konieczny said the company is focused on driving long-term sustainable volume growth and remains confident in delivering on its medium- and long-term financial commitments. The transition-period outlook does not take into account potential portfolio-optimization actions not yet announced.