Q4 2026 Amcor PLC Earnings Call Transcript
Key Points
- Amcor PLC (AMCCF) delivered strong Q4 fiscal 2026 results with adjusted EPS of $1.23, up 23% year-over-year, and full-year adjusted EPS of $4.02, up 13%, exceeding expectations.
- The company achieved $285 million in synergies for fiscal 2026, approximately 10% ahead of its initial year-one target, and remains confident in reaching the $650 million three-year goal.
- Volume growth inflected to modestly positive in Q4, with sequential improvement of about 200 basis points, driven by broad-based gains across segments, regions, and focus categories like foodservice, pet care, and protein.
- Amcor PLC (AMCCF) successfully mitigated unprecedented input cost inflation through responsible pricing actions and productivity initiatives, maintaining stable price-cost relationships.
- The company is providing a positive outlook for calendar year 2027, expecting double-digit adjusted EPS growth, leverage of approximately 3x, and modest dividend growth, supported by a strong pipeline of growth synergies and portfolio optimization.
- Free cash flow for fiscal 2026 was $1.3 billion, $200 million below the outlook range, primarily due to higher-than-expected working capital impacts from the Middle East conflict and accelerated integration spending.
- The company faces ongoing headwinds from higher interest and tax expenses, which are expected to partially offset operating improvements in the transition period.
- Health care volumes declined in Q4 due to softness in lower-margin categories, although the mix shift toward higher-margin pharma products is a positive offset.
- The divestiture of noncore businesses is expected to have an unfavorable impact of $0.04 per share on adjusted EPS in the transition period.
- Leverage remains elevated at 3.5x, and the company expects it to stay in the 3.5x-3.6x range through December 2026, with a path to 3x only by end of calendar year 2027.
Thank you for joining us, and welcome to Amcor's Fiscal 2026 fourth-quarter earnings call. (Operator Instructions)
I will now hand the conference over to Kate Pearlman, Senior Vice President, Investor Relations and Treasury. Kate, please go ahead.
Thank you for joining Amcor's Fiscal 2026 fourth-quarter earnings call. Here with me today are Peter Konieczny, Chief Executive Officer; and Steve Scherger, Chief Financial Officer. In the Investors section of our website, amcor.com, you'll find today's press release and presentation, which we will discuss on today's call.
Please be aware that we will also discuss certain non-GAAP financial measures and related reconciliations can be found in the press release and the presentation. Remarks will also include forward-looking statements that are based on management's current views and assumptions. The second slide in today's presentation lists several factors that could cause future results to be different than the current estimates, and reference can be made to Amcor's SEC filings, including
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