Overview

• Global packaging producer's Q3 net sales rose 77% yr/yr, driven by Berry acquisition

• Adjusted EPS for Q3 rose 6% to $0.96

• Fiscal 2026 guidance sees adjusted EPS growth of ~12%, free cash flow cut to $1.5-1.6 bln

Outlook

• Amcor expects fiscal 2026 adjusted EPS of $3.98 to $4.03, up ~12% at midpoint

• Company revises fiscal 2026 free cash flow to $1.5-1.6 bln from previous $1.8-1.9 bln

• Amcor says Middle East conflict creates higher uncertainty and complexity for fiscal 2026 outlook

Result Drivers

• BERRY ACQUISITION - Q3 sales and EBIT growth mainly driven by Berry acquisition, contributing ~$2.4 bln in sales and $239 mln in EBIT net of divestments

• SYNERGY BENEFITS - Synergy benefits from Berry acquisition added $57 mln to EBIT in Q3

• LOWER VOLUMES - Underlying organic volumes declined about 1.5% yr/yr, partly offsetting acquisition and synergy gains

Company press release: ID:nPn83l4Pga

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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