Amcor’s Q2 FY26: $5.45B Sales, $826M EBITDA, and Synergies at $55M
Amcor has reported robust second quarter and half-year results for fiscal 2026, driven by the Berry acquisition and operational synergies. The company reaffirmed its full-year guidance and declared a higher quarterly dividend.
- Net sales surged 68% in Q2, 70% in H1, boosted by Berry acquisition
- Adjusted EBITDA rose 83% in Q2, adjusted EBIT up 66%
- Acquisition synergies hit $55 million, at upper end of targets
- Fiscal 2026 guidance reaffirmed with 12-17% adjusted EPS growth
- Quarterly dividend increased to US 65 cents per share
Strong Acquisition Impact
Amcor plc has unveiled a solid set of financial results for the second quarter and first half of fiscal 2026, underpinned by the transformative acquisition of Berry Global completed in April 2025. Net sales for the quarter soared to US$5.45 billion, a 68% increase over the prior year, while the half-year figure reached US$11.19 billion, up 70%. These gains largely reflect the addition of Berry’s business, which contributed approximately US$2.2 billion in sales for the quarter and US$4.5 billion for the half-year after divestments.
Operational Performance and Synergies
Adjusted EBITDA climbed 83% to US$826 million in the quarter, with adjusted EBIT rising 66% to US$603 million. The company reported acquisition synergies of US$55 million, hitting the upper end of its expectations. These synergies, combined with disciplined cost management and productivity initiatives, helped offset a modest volume decline estimated at around 1.5% compared to the combined legacy businesses. Adjusted EPS increased by 7% to US$0.86 for the quarter, reflecting strong earnings growth despite integration costs.
Segment Highlights and Volume Trends
Amcor’s Global Flexible Packaging Solutions segment saw net sales rise 23% on a constant currency basis, with adjusted EBIT up 22%. Volume declines were noted in some categories and regions, including North America and Europe, but growth in pet food and meat proteins partially offset these. The Global Rigid Packaging Solutions segment experienced a dramatic 200% increase in net sales, driven by the Berry acquisition, with adjusted EBIT surging 308%. Volumes in this segment were broadly flat year-on-year excluding non-core businesses, with growth in pet food, beauty, and specialty containers balancing softer healthcare and foodservice volumes.
Financial Position and Dividend
Free cash flow for the quarter was US$289 million, in line with expectations after funding US$69 million in acquisition-related costs. Net debt stood at US$14.08 billion as of December 31, 2025, reflecting the acquisition financing. The board declared a quarterly dividend of US 65 cents per share, up from US 63.75 cents in the prior year, signalling confidence in the company’s cash flow generation and growth prospects.
Guidance and Outlook
Amcor reaffirmed its fiscal 2026 guidance, expecting adjusted EPS in the range of US$4.00 to US$4.15, representing 12-17% constant currency growth. Free cash flow is forecast between US$1.8 billion and US$1.9 billion. The guidance assumes full-year ownership of Berry and excludes potential impacts from ongoing portfolio optimisation actions. CEO Peter Konieczny emphasised the company’s focus on integrating the acquisition, realising synergies, and positioning Amcor as a global leader in sustainable consumer packaging solutions.
Bottom Line?
Amcor’s solid integration progress and reaffirmed guidance set the stage for a pivotal year as it leverages Berry’s scale amid evolving market dynamics.
Questions in the middle?
- How will Amcor’s volume trends evolve in key regions amid ongoing market challenges?
- What specific portfolio optimisation actions might impact future financial performance?
- How sustainable are the acquisition synergies beyond fiscal 2026?
