AMC +5.01%: Shares rallied after delivering its first full quarter result, post merger with Berry Global – the result comfortably ahead of expectations. The company reported a 4% EPS beat, underpinned by strong packaging demand and initial cost synergies beginning to flow through.
- Revenue of $US5.745bn +68% y/y
- Adjusted earnings of $909mn, +92% y/y
- Synergies of US$38mn realised to dat
- Dividend increased from 12c to 13c
- FY26 EPS guidance reaffirmed US 80–83c
This was a clean, encouraging update from Amcor – what we hoped for when we added it to the Active Income Portfolio last week. The integration with Berry appears well on track and synergy capture is running ahead of schedule, with management outlining total synergy benefits of US$650mn by FY28 – expected to drive ~30% EPS growth over three years.
While the packaging sector isn’t glamorous, it offers dependable earnings and strong cash generation. With merger execution continuing to de-risk, Amcor continues to prove itself as a high-quality income stock that screens cheap on valuation, in a market looking for stability.
MM is long and bullish AMC
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