Amcor Q1 2027: Revenue Beats but EPS Misses as Energy Costs Force Guidance Cut
As seen on the 24/7 Wall St. homepage on November 4, 2026.
Energy and distribution costs hit late enough in the quarter to force a guidance cut: transition-period adjusted EPS now $1.70 to $1.80, down from $1.80 to $1.90. Management insists the pressure does not carry into 2027.
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Amcor posted net sales of $6.13 billion in its first quarter of fiscal 2027, a 6.7% year-over-year increase that cleared the $5.90 billion consensus by roughly 4%. Volume gains in pet food, foodservice, and beauty and wellness drove growth across all regions, with emerging markets leading the way. Raw material cost pass-through added approximately $435 million, or about 8%, to net sales.
On the earnings side, adjusted diluted EPS of $0.95 missed the $0.98 consensus by about 3%. Energy and distribution costs accelerated late in the quarter, arriving too quickly for the company to pass them through to customers in time. That timing mismatch weighed directly on the bottom line and was the primary reason earnings came up short even as revenue outperformed.
The cost pressure was significant enough to force a guidance reduction. Amcor lowered its Transition Period adjusted EPS outlook to $1.70 to $1.80 from $1.80 to $1.90, covering the six-month period ending December 31, 2026. CEO Peter Konieczny said directly that actions to address the inflationary pressure are underway and that the company does not expect higher energy and distribution costs to impact 2027 results.
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Cash flow was notably strained in the quarter. A working capital outflow of $1.13 billion, driven by resin price volatility tied to the Middle East conflict, pushed free cash flow to negative $820 million. Net debt rose to $14.01 billion, and leverage is now expected to be approximately 3.6x at December 31, 2026, slightly above the prior expectation of 3.5 to 3.6x.
The Berry Global integration remains a bright spot. Approximately $50 million in synergy benefits flowed through adjusted EBIT in the quarter, keeping management on track toward a three-year $650 million synergy target. Adjusted EBIT came in at $689 million, roughly flat in constant currency, with integration gains partially offsetting the cost timing headwinds. Amcor also declared a quarterly cash dividend of $0.66 per share, payable December 16, 2026, to shareholders of record November 25.