Amcor Plc 10-Q Summary: Quarter Ended March 31, 2026
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026, and the nine months ended on that date. Amcor Plc is the global leader in consumer packaging and dispensing solutions. The reporting period reflects the full impact of the Merger with Berry Global Group, Inc., completed on April 30, 2025. The Company operates through two reportable segments: Global Flexible Packaging Solutions and Global Rigid Packaging Solutions. All prior period share and per-share data have been retroactively adjusted for a 1-for-5 reverse stock split effective January 14, 2026.
Key Financial Metrics
| Metric ($ millions) | Q3 2026 | Q3 2025 | 9M 2026 | 9M 2025 |
|---|---|---|---|---|
| Net Sales | 5,914 | 3,333 | 17,108 | 9,927 |
| Gross Profit | 1,190 | 654 | 3,353 | 1,939 |
| Gross Margin | 20.1% | 19.6% | 19.6% | 19.5% |
| Operating Income | 461 | 313 | 1,253 | 922 |
| Operating Margin | 7.8% | 9.4% | 7.3% | 9.3% |
| Net Income (Attributable to Amcor) | 278 | 196 | 717 | 550 |
| Diluted EPS | $0.60 | $0.68 | $1.55 | $1.90 |
| Operating Cash Flow (9M) | $556 (2026) vs $276 (2025) | |||
| Net Debt | $14,266 (as of Mar 31, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 77% in Q3 and 72% over nine months, primarily driven by the Berry Merger ($2.4B and $6.9B impact, respectively). Organic volume declined approximately 2% in Q3 and 3% over nine months, partially offset by favorable price/mix.
- Profitability: Net income increased 42% in Q3 and 30% over nine months. However, operating margins compressed (7.8% vs 9.4% in Q3) due to higher amortization of acquired intangibles ($134M vs $37M in Q3) and increased restructuring costs.
- Restructuring & Integration: Expenses totaled $69M in Q3 and $262M for nine months, significantly higher than the prior year. This includes the "Berry Plan" aimed at realizing $530M in pre-tax synergies by FY2028.
- Interest Expense: Increased to $170M in Q3 (from $85M) and $507M for nine months (from $252M) due to debt assumed and issued to fund the Merger.
- Tax Rate: The effective tax rate decreased to 10.3% in Q3 (from 16.9%) and 10.5% for nine months (from 20.2%), aided by discrete benefits including the release of uncertain tax positions.
Outlook, Risks, and Unusual Items
- Portfolio Review: The Company is reviewing strategic alternatives for businesses with combined sales of $2.5B. Five businesses (approx. $500M revenue) were classified as "held for sale" in Q3, resulting in a $6M impairment. Two were sold subsequent to quarter-end.
- Divestitures: Sold ePac Holdings for ~$79M (Jan 2026) and a non-core French business in FY2025.
- Debt Activity: Issued €1.5B in Euro notes (Nov 2025) and $1.5B in Senior Notes (Mar 2026). Subsequent to quarter-end, redeemed $750M and $600M of secured notes.
- Risks: Key risks include integration execution of the Berry Merger, geopolitical tensions (Middle East conflict impacting energy/logistics), raw material price volatility, and the outcome of the portfolio strategic review.
- Fiscal Year Change: The Board approved changing the fiscal year-end from June 30 to December 31, effective July 1, 2026.
Investor Verification Checklist
- Merger Synergies: Verify progress on the $530M pre-tax synergy target and the $280M net cash cost of the Berry Plan.
- Organic Volume Trends: Monitor the reported 2-3% decline in organic sales volumes against the backdrop of global economic conditions.
- Portfolio Divestitures: Track the timeline and valuation of the remaining businesses identified for sale in the strategic review.
- Debt Maturity & Covenants: Review the impact of new debt issuances on leverage ratios and compliance with the 3.9x leverage covenant.
- Argentina Exposure: Assess the impact of highly inflationary accounting on Argentine subsidiaries, which resulted in a $13M loss over nine months.