Amcor 2025 Q4 Earnings Significant Earnings Drop Amid Strong Revenue Growth

Amcor (AMCR) reported its fiscal 2025 Q4 earnings on August 15, 2025, delivering a strong revenue performance that fell short of expected profitability. The company’s Q4 revenue surged 43.8% year-over-year to $5.08 billion, driven by robust demand across its packaging segments. However, it swung to a net loss of $39 million, or $0.02 per share, compared to a $261 million profit, or $0.18 per share, in the prior year, marking a 114.9% drop in net income and 110.7% deterioration in EPS.

Revenue for the quarter was led by the Flexibles segment, which generated $3.21 billion in sales, while the Rigid Packaging segment contributed $1.88 billion. Together, these segments reflect a clear strength in product diversification and global demand. Despite this, earnings pressures emerged, primarily due to integration costs from the completed acquisition of Berry Global.

Amcor reported a net loss of $39 million in Q4 2025, reflecting a 114.9% deterioration from the net income of $261 million in Q4 2024, and a per-share loss of $0.02, down from $0.18 per share, a 110.7% drop. This marked a significant earnings decline, despite the company having posted consistent profitability for the past eight years.

The stock price of Amcor has faced downward pressure in the post-earnings period, declining 7.50% on the latest trading day, 9.13% over the most recent full week, and 7.20% month-to-date, reflecting investor concern over the earnings miss. A post-earnings investment strategy of buying shares 30 days after the earnings report showed moderate returns with a CAGR of 3.11%, underperforming the market by 38.66%. Despite a Sharpe ratio of 0.46 and a maximum drawdown of 0.00%, the strategy offers conservative returns, ideal for stability-focused investors.

The CEO, Peter Konieczny, highlighted the completion of the Berry Global acquisition as a “significant milestone” and emphasized the company’s strategic focus on integration and synergy capture, aiming for $650 million in total synergies through fiscal 2028. He noted current volume challenges but expressed confidence in achieving $260 million in fiscal 2026 synergies and maintaining strong earnings and cash flow growth.

Looking ahead, Amcor expects adjusted EPS of $0.80 to $0.83 for fiscal 2026, representing 12% to 17% growth. Free cash flow is projected to double to $1.8 billion to $1.9 billion, while leverage is expected to decrease to 3.1x to 3.2x. Synergy realization will be phased, with 42% to 45% in the first half and 55% to 58% in the second half. Q1 EPS guidance is $0.18 to $0.20, including $35 million to $40 million of pre-tax synergies. CapEx is forecast at $850 million to $900 million, with net interest expense between $570 million and $600 million and an effective tax rate of 19% to 21%.

Amcor has launched a digital subscription package for its Shanghai Daily online edition, offering access to downloadable PDFs, unlimited website content, and breaking news alerts. The subscription options include digital-only plans for one, six, or twelve months, and a print + digital bundle for a 12-month period. Digital subscribers will not receive a physical newspaper, and subscriptions are non-refundable. Pricing ranges from RMB 100 for a one-month digital package to RMB 1,399 for the combined 12-month print and digital offering.