What was the price-cost dynamic in Q4, and how is it expected to evolve into the back half of the year?

In Q4, Amcor achieved $280 million in price realization, which was in line with the inflation experienced, maintaining a stable price-cost relationship. This is expected to continue through the transition period, with the company able to adjust pricing whether inflation rises or falls. “In our fourth quarter, the quarter that we just completed here with our fiscal year, we had about $280 million of price realization, which was the pass-through of the vast majority of our inflation. So as we anticipated, the price pass-through was in line with the overall inflation that we experienced and we would expect that to continue to be the case as we manage through the transition period.”

What assumptions are embedded in the FY27 double-digit EPS growth outlook regarding broader market volume growth and Amcor's ability to grow above market?

Management is excited for CY27 as the first 'clean' year post-Berry acquisition. Growth will be driven by focus on core categories (nutrition, health, beauty, wellness), leveraging combined Amcor-Berry product range and global reach, and enhanced capabilities in innovation and sustainability. The company expects to outperform the market, which is showing green shoots, and July volumes continued the positive Q4 trend. “I think at this point in time, you'll probably see us more move with the market, and the market is more positive than what we've seen in the last couple of quarters taking advantage of that. We're seeing green shoots. There's no question. When I just think about protein and pet care. We're doing really well. That's collectively somewhere between 15% and 20% of the company. But going forward, we'll see more outperformance I hope that answers the questions.”

Were there any one-off benefits to Q4 volume performance, and what specific end markets are showing green shoots?

Management investigated potential one-offs like buy-ahead behavior or World Cup impact but concluded they were not material. Q4 volume performance was broad-based across core/noncore, segments, and regions. Green shoots are seen in emerging markets, North America returning to growth, and strong performance in foodservice, pet care, and protein categories. “In fact, when I talk to the volume performance, it's been pretty broad. And across the business abroad across core versus noncore, it's been broad between the 2 segments. It's also been broad when you look at the focus categories or also the regional performance, actually. So it's been a pretty strong broad-based volume performance in the quarter, which we like.”

AMCR

Amcor (AMCR) Q4 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q4 FY26)· Consumer Discretionary· Aug 12, 2026

Source: earnings call transcript

Executive summary

Amcor Q4 FY26 — Strong Operating Performance and Ahead of Synergy Targets

Amcor delivered strong operating performance in Q4 FY26, exceeding synergy targets and achieving positive volume growth despite a challenging macroeconomic environment. The company is now focused on leveraging the Berry acquisition for accelerated earnings growth and cash flow generation, with a clear path to double-digit adjusted EPS growth in calendar year 2027 and a commitment to deleveraging to approximately 3x by year-end CY27.

Highlights

Q4 adjusted EPS increased 23% year-over-year to $1.23 per share, with full-year FY26 adjusted EPS reaching $4.02, up 13%.
Synergy capture exceeded expectations, realizing $115 million in Q4 and $285 million for FY26, approximately 10% ahead of initial year 1 targets.
Achieved modestly positive volume growth in Q4, inflecting sequentially by approximately 200 basis points, with broad-based improvement across categories and regions.
Successfully mitigated inflationary pressures through coordinated efforts and responsible pricing actions, with $280 million of price realization in Q4.
Declared a quarterly dividend of $0.65 per share, representing a modest increase and reflecting commitment to annual dividend growth.

Concerns

Free cash flow for FY26 was $1.3 billion, $200 million below outlook, primarily due to working capital impacts from the Middle East conflict and accelerated integration spending.
Higher interest and tax expenses are expected to unfavorably impact adjusted EPS by $0.10 to $0.12 during the 6-month transition period.
Overall volumes in the healthcare segment were down due to softness in lower-margin subcategories, despite underlying growth trends in higher-margin areas.

Guidance & targets

Category	Target	Timeline	Confidence
Adjusted EPS	$1.80 to $1.90 per share high materiality	6 months ending December 31, 2026 · FY27	High
Adjusted EPS growth	double-digit growth high materiality	Calendar Year 2027 · CY27	High
Leverage (Net Debt to EBITDA)	approximately 3x high materiality	year-end Calendar Year 2027 · CY27	High
Dividend growth	modestly growing medium materiality	Calendar Year 2027 · CY27	High
Leverage (Net Debt to EBITDA)	3.5x to 3.6x medium materiality	December 31, 2026 · FY27	High
Free Cash Flow	$2.5 billion high materiality	next 12 months	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Global Flexible Packaging Solutions Sales growth driven by Berry acquisition and raw material cost pass-through. Volumes improved sequentially, with modest growth in North America and Europe, and low single-digit growth in emerging markets (mainly Asia). Adjusted EBIT growth driven by acquired earnings, divestitures, and synergy benefits. Comparable volumes: up 1% year-over-yearSequential volume improvement: nearly 200 basis points compared with Q3Adjusted EBIT margin: 15.1%	—	16% constant currency	—	$533 million adjusted EBIT
Global Rigid Packaging Solutions Sales growth primarily due to Berry acquisition and raw material cost pass-through. Volumes strengthened sequentially, driven by improved consumer demand and noncore business performance, particularly in developed markets (Europe and North America). Adjusted EBIT growth driven by acquired earnings, divestitures, synergy benefits, and volume improvement. Comparable volumes: up 0.5% in core and noncore businessesSequential volume improvement: approximately 200 basis pointsAdjusted EBIT growth: 57% over last year on a constant currency basisAdjusted EBIT margin: 12.3%Adjusted EBIT margin (excluding noncore businesses): 13.3%	—	35% constant currency	—	$352 million adjusted EBIT

AMCR operating KPIs by quarter

AMCR operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q3 FY26	This call Jun 2026 Q4 FY26	Change vs prior quarter
Total recordable incident rate	0.49 ratio Our total recordable incident rate at 0.49 is a modest increase compared with last year's performance. Source: earnings call transcript	0.47 ratio The total recordable incident rate improved this quarter to 0.47, marking the fourth consecutive quarter of improvement as we leverage our world-class safety program across the combined organization. Source: earnings call transcript	-4.1%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Berry Transformative acquisition of Berry, strengthening diversified global portfolio.

The acquisition created a stronger, more diversified portfolio with expanded product offerings, broader geographic reach, and enhanced capabilities in innovation and sustainability.

Multiple unnamed parties Divestiture of noncore businesses to sharpen focus on higher-return, higher-growth opportunities.

A total of 5 divestitures were closed in the second half of fiscal 2026.

Risks & headwinds

Working capital impact from Middle East conflict FY26

$500 million cumulative impact on free cash flow

Mitigation:Targeting recovery of $500 million over the next 12 months, with $100 million to $300 million in the next 6 months, through structural improvements in inventory, receivables, and payables.

Higher interest and tax expense 6 months ending December 31, 2026

$0.10 to $0.12 per share unfavorable impact on adjusted EPS

Mitigation:Offset by synergy capture and net operating performance, which is expected to provide a $0.13 to $0.21 positive impact to adjusted EPS.

Macroeconomic backdrop and inflation Q4 FY26 and ongoing

Rapid inflation experienced in Q4 FY26

Mitigation:Highly coordinated efforts to secure supply, execute productivity initiatives, and take responsible pricing actions to fully mitigate inflationary pressures. Price realization of $280 million in Q4.

What to watch in Q1 FY27

Working capital recovery from Middle East conflict

next 6 months

Current $500 million cumulative impact

Target $100 million to $300 million recovered

Why it matters

Recovery of working capital is crucial for improving free cash flow and achieving deleveraging targets.

As we mentioned, we expect to get the $500 million back over the next 12 months. The exact timing over the next 6 months, we certainly expect to make progress. So if you put that into the $100 million, $200 million, $300 million range. I think that's a fair assumption for this first 6 months, if you will.

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Q&A highlights

How much of the $500 million working capital impact from the Middle East conflict is expected to be recovered in the next 6 months, and what are the structural improvements planned?

Management expects to recover $100 million to $300 million of the $500 million working capital impact in the next 6 months, with the full amount over 12 months. Structural improvements include specific goals for days of inventory, days sales outstanding, and increases in days payables.

“As we mentioned, we expect to get the $500 million back over the next 12 months. The exact timing over the next 6 months, we certainly expect to make progress. So if you put that into the $100 million, $200 million, $300 million range. I think that's a fair assumption for this first 6 months, if you will.”

asked by John Purtell · answered by Stephen Scherger

2 min read 5 chapters

Detailed narrative

Strategic Portfolio Optimization

Amcor continues to optimize its portfolio, having closed 5 divestitures in the second half of fiscal 2026. This strategy aims to sharpen focus on higher-return, higher-growth opportunities within core businesses, driving sustainable growth in attractive categories and markets. The noncore businesses also showed improved year-over-year performance, reflecting strong operational execution.

Synergy Realization and Growth Opportunities

The company exceeded its initial synergy expectations, realizing $285 million in FY26, 10% ahead of target. This was primarily driven by accelerated execution in G&A and procurement. Amcor has also achieved half of its 3-year growth synergy target with $140 million in new business awards, leveraging complementary product portfolios and expanded capabilities to unlock new opportunities, such as cross-selling closures to existing beauty and wellness customers.

Outlook for Calendar Year 2027

Management expressed excitement for calendar year 2027, viewing it as the first 'clean' year post-Berry acquisition. The focus will be on core categories like nutrition, health, beauty, and wellness, which already constitute over 50% of sales. The combination of Amcor and Berry's broader product range, global reach, and innovation in sustainability is expected to drive outperformance versus market growth, building on current green shoots in protein and pet care.

Working Capital and Cash Flow Recovery

Free cash flow for FY26 was impacted by $500 million due to the Middle East conflict, primarily affecting accounts receivable. Management targets recovering this amount over the next 12 months, with $100 million to $300 million expected in the next 6 months.

Structural improvements in working capital are planned across inventory days, days sales outstanding, and days payables to support this recovery and achieve the leverage target.

Price-Cost Dynamics and Inflation Management

Amcor successfully managed price-cost dynamics in Q4 FY26, achieving $280 million in price realization that largely offset inflation. This stability is expected to continue through the transition period. The company's ability to adapt to rapid inflationary pressures, particularly following the Middle East conflict, was highlighted as a testament to the organization's strong performance during the integration phase.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.