Amcor 2025 Q3 Earnings Resilient Performance with 4.2% Net Income Growth

Amcor (AMCR) reported its fiscal 2025 Q3 earnings on Apr 30th, 2025. Amcor's earnings results for Q3 2025 met market expectations, with the company maintaining its growth trajectory. The guidance for adjusted EPS remains in line, projecting 72 to 74 cents per share for fiscal 2025. This consistent outlook reflects Amcor's focus on executing its strategic initiatives effectively. The company’s merger with Berry Global is expected to further bolster its financial performance.

Revenue

Amcor's total revenue for Q3 2025 fell by 2.3% to $3.33 billion, compared to $3.41 billion in Q3 2024. The Flexibles segment generated $2.60 billion, while Rigid Packaging contributed $728 million, leading to a combined total of $3.33 billion in revenue.

Earnings/Net Income

Amcor's EPS increased by 5.4% to $0.14 in Q3 2025 from $0.13 in Q3 2024, indicating ongoing earnings growth. The company's net income also rose by 4.2% to $197 million compared to $189 million in the same period last year, marking a positive earnings trajectory.

Price Action

The stock price of Amcor decreased by 0.76% during the latest trading day, dropped 3.36% over the past week, and declined 4.56% month-to-date.

Post-Earnings Price Action Review

The analysis of Amcor's stock price movements following earnings reports reveals mixed results. The 3-day win rate post-report stands at 49.90%, with a 10-day rate of 47.63%, and a 30-day rate of 43.58%. Despite these figures, the maximum return observed over a 30-day period was 0.00%, indicating that the earnings metrics such as revenue, net income, and EPS do not consistently result in positive stock performance. This suggests a complex reaction of the market to the company’s reported financial outcomes, highlighting the need for investors to consider broader market conditions and company strategies.

CEO Commentary

Peter Konieczny, CEO of Amcor, emphasized the significance of the company's merger with Berry Global, which he described as "transformational." He highlighted that this merger enhances Amcor's positions in attractive categories and expands its innovation capabilities. Despite challenges, he noted that the company delivered another quarter of earnings growth, demonstrating resilience. Konieczny expressed gratitude to his teams for their hard work, indicating that Amcor has "significant control over delivery of synergies" and is executing plans to capture $650 million in identified synergies over three years, positioning the company for a strong future.

Guidance

Amcor projects adjusted EPS for fiscal 2025 to be in the range of 72 to 74 cents per share, anticipating adjusted free cash flow of $900 to $1,000 million. The company expects to deliver $260 million of pre-tax synergies in fiscal 2026, which will drive adjusted EPS accretion of approximately 12%, excluding growth in the underlying business. The early closure of the Berry Global merger positions Amcor for a faster start on synergy delivery and growth.

Additional News

Amcor has successfully completed its merger with Berry Global ahead of schedule, marking a pivotal moment in its strategic growth plan. The merger, valued at $8.3 billion, received final regulatory approvals from the European Commission, clearing the way for integration. This merger is set to generate $650 million in synergies over three years, enhancing Amcor's market position and innovation capabilities. Additionally, Amcor's board approved a quarterly dividend increase to 12.75 cents per share, from 12.5 cents previously, reflecting confidence in sustained growth and financial stability. These developments underscore Amcor's commitment to delivering shareholder value through strategic acquisitions and operational excellence.