Amcor is poised for improved financial performance and shareholder value following its acquisition of Berry Global, with strategic integration efforts expected to boost earnings per share and free cash flow despite a recent net loss.

Amcor plc (NYSE: AMCR), a global leader in consumer packaging and dispensing solutions, is positioned for enhanced financial performance and shareholder value following its strategic acquisition of Berry Global. While the company reported a net loss in its fourth quarter of fiscal 2025, the integration of Berry Global is expected to significantly bolster Amcor's earnings per share (EPS), free cash flow (FCF), and overall valuation, solidifying its market position and reinforcing its commitment to sustainable dividend growth. \n\n## Financial Performance and Strategic Integration\nAmcor announced its Q4 and fiscal 2025 results on August 14, 2025, reporting a significant year-over-year revenue increase but also a net loss. Revenue reached $5.08 billion, marking a 43% rise on a constant currency basis compared to $3.535 billion in the prior year. However, the company recorded a net loss of $39 million, a notable shift from the net income of $257 million in the previous year. \n\nDespite the net loss, adjusted earnings per share (EPS) surged to $0.71, considerably exceeding the non-GAAP forecast of $0.21. This substantial increase in adjusted earnings was primarily attributable to the acquisition of Berry Global, which dramatically expanded Amcor's global footprint and elevated total annualized sales to $23 billion. The transaction contributed approximately $1.5 billion in acquired net sales and around $200 million in acquired adjusted EBIT. Conversely, excluding these acquired results, the combined company's volumes experienced a 1.7% decline, highlighting a weakness in organic growth, particularly in North America. \n\nAmcor has made considerable progress in integrating Berry Global's operations, targeting significant synergy realization. The company has already closed one site, approved four additional closures, and reduced headcount by over 200 in general and administrative roles. These actions are projected to unlock $240 million in cost-related synergies for fiscal 2026 through procurement consolidation and production reallocation. \n\n## Market Reception and Valuation Outlook\nWhile Amcor's stock has seen a 20% decline over the past year, market sentiment is currently bullish regarding its future prospects. The completion of the Berry Global merger is widely viewed as a catalyst for operational improvements and cost savings. Analysts indicate that Amcor is presently undervalued, projecting significant upside potential over the coming years as the benefits of the merger fully materialize. The company aims to deliver 12-17% EPS growth in 2026. \n\n## Leverage Reduction and Shareholder Returns\nAmcor's post-acquisition strategy prioritizes financial discipline and deleveraging while maintaining investments in high-growth areas. As of Q4 2025, the company's net leverage ratio stood at 3.5x, with a clear objective to reduce it to 3.1x–3.2x within 12 months. This reduction is expected to be driven by robust free cash flow generation, which is projected to double to $1.8–$1.9 billion in fiscal 2026 (excluding integration costs). \n\nIn line with its commitment to shareholder returns, Amcor increased its quarterly dividend by 2% to $0.1275 per share, and the fiscal 2025 dividend rose to 51 cents per share, underscoring confidence in the company's cash flow resilience. Capital expenditures are anticipated to remain disciplined, ranging from $850 million to $900 million. \n\n## Outlook\nLooking ahead, Amcor's fiscal 2026 guidance reinforces confidence in its strategic roadmap, anticipating adjusted EPS of $0.80–$0.83 and free cash flow of $1.8–$1.9 billion. The company's ongoing portfolio reviews and potential asset sales are additional factors that could influence future profitability. The focus remains on optimizing its core portfolio in high-growth sectors, balancing growth ambitions with prudent financial management to build a foundation for sustained margin expansion and long-term shareholder value creation.