Amcor (AMCR) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 results met expectations, with sequential volume improvement and net sales of $3,241M; net income rose 22% to $163M, and diluted EPS increased 23% to $0.113.

• Adjusted EBIT and EPS both increased by 5% year-over-year, with margin expansion and strong cash generation.

• The merger with Berry Global is progressing, with regulatory filings submitted, board composition finalized, and $650M in synergies targeted; integration planning and financing are underway.

• Full-year guidance is reaffirmed, reflecting confidence in continued operational execution and synergy realization.

• Restructuring plan largely completed, with $220M in expected costs and $50M annualized pre-tax benefit anticipated by FY2025 end.

Financial highlights

• Q2 net sales: $3,241M (up 0.4% year-over-year); H1 net sales: $6,594M; Q2 net income: $163M (up $29M year-over-year); Q2 adjusted EBIT: $363M (up 5%).

• Q2 adjusted EPS: $0.161 (up 5%); Q2 diluted EPS: $0.113 (up 23%); H1 adjusted EPS: $0.322 (up 3%); H1 diluted EPS: $0.244 (up 23%).

• Q2 gross profit: $626M (up $5M year-over-year); gross margin increased to 19.3%.

• Cash generation exceeded prior year, with Q2 adjusted free cash flow at $358M and net debt reduced by $375M sequentially to $6,496M.

• Leverage at 3.3x, with expectations to reach 3x or lower by year-end.

Outlook and guidance

• Fiscal 2025 adjusted EPS expected at $0.72–$0.76, representing 3%–8% constant-currency growth.

• Adjusted free cash flow guidance of $900M–$1B, supporting leverage reduction.

• Underlying business growth projected in the mid-single to low double-digit range, excluding incentive normalization.

• Guidance does not include potential impact from Berry Global merger if closed before fiscal year-end.

• Second half expected to generate 55%–58% of EPS, with Q4 typically above 30% of full-year EPS.