Amcor 2025 Q4 Earnings Significant Earnings Decline Amid Strong Revenue Growth

Amcor (AMCR) reported its fiscal 2025 Q4 earnings on Aug 14th, 2025, with a notable contrast between robust revenue and a sharp drop in profitability. Despite a 43.8% revenue increase to $5.08 billion, the company swung to a loss of $0.02 per share, a dramatic shift from a $0.18 per share profit in the prior year. The results fell below expectations, with net income plummeting by 114.9%. The company did not adjust its guidance, maintaining its adjusted EPS outlook for fiscal 2026.

Revenue
Amcor's total revenue surged to $5.08 billion in the fourth quarter of 2025, reflecting a strong performance across its packaging segments. Flexibles led the growth with $3.21 billion in revenue, demonstrating the company's strength in this key area. The Rigid Packaging segment also contributed significantly, posting revenue of $1.88 billion. Together, these segments powered the overall revenue increase, underscoring Amcor’s broad-based demand and its ability to capitalize on market dynamics.

Earnings/Net Income
The earnings picture, however, was far less encouraging. Amcor reported a net loss of $39 million for the quarter, a 114.9% deterioration from the $261 million net income in the same period of 2024. On a per-share basis, the company swung to a loss of $0.02, compared to a profit of $0.18, representing an 110.7% negative change. Despite the loss, Amcor has remained profitable for the past eight years during this fiscal quarter, which highlights the company’s historical resilience and stable business performance.

Price Action
Amcor’s stock price has faced downward pressure in the recent period. Over the latest trading day, the stock declined 7.50%, and it fell further to a 9.13% drop during the most recent full trading week. Month-to-date, the stock has lost 7.20%, signaling investor concern following the earnings report.

Post Earnings Price Action Review
The historical strategy of buying Amcor shares after a revenue growth quarter on the earnings release date has yielded poor returns. Over the past three years, this approach resulted in a -23.33% return, significantly underperforming the 46.48% benchmark. The strategy posted an excess return of -69.81% and a CAGR of -8.75%, highlighting its lack of effectiveness. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.40, the strategy appears to carry a high-risk profile with minimal return potential.

CEO Commentary
Peter Konieczny, CEO and Director of Amcor, emphasized that the fourth quarter marked a milestone in the company’s transformation, particularly with the 100-day integration of the Berry Global acquisition now underway. He expressed confidence in delivering 12% to 17% adjusted EPS growth in fiscal 2026, with free cash flow expected to double to between $1.8 billion and $1.9 billion. Konieczny noted $260 million in fiscal 2026 synergies and $650 million by fiscal 2028, while addressing challenges in the North American beverage segment. Strategic priorities include portfolio optimization, safety, and a greater focus on core nutrition and health markets. He remains optimistic about long-term value creation through disciplined execution and integration.

Guidance
Amcor expects flat volume growth in fiscal 2026, with adjusted EPS guidance of $0.80 to $0.83, representing 12% to 17% year-over-year growth. Free cash flow is projected to reach $1.8 billion to $1.9 billion, with $260 million in synergy contributions. Capital expenditures are anticipated between $850 million and $900 million. The company also expects leverage to decrease to 3.1x to 3.2x within the next 12 months, excluding potential asset sale proceeds. First-quarter EPS guidance is $0.18 to $0.20, with 42% to 45% of fiscal 2026 earnings expected in the first half and stronger performance in the second half.

Additional News
On Aug 15, 2025, Nigeria’s Punch newspaper reported on several key developments. In a significant political move, the People’s Democratic Party (PDP) inaugurated a 44-member zoning committee and demanded unwavering loyalty from Governor Wike. Meanwhile, the Economic and Financial Crimes Commission (EFCC) denied targeting former President Olusegun Obasanjo and arraigned suspects in an ongoing sting operation. In the business sector, Lagos State police successfully dismantled an armed robbery operation operating from a refuse dump, underscoring heightened security efforts. Additionally, the Federal Capital Territory Police Command praised a task force for clearing criminal hideouts in the Apo District, signaling a growing focus on law enforcement and public safety.