Amcor Plc

Solid operating momentum despite broader inflation (quarter ended Sept 30, 2026): - Organic volume growth: +1% overall; +3% in “focus categories” (key growth areas). - Adjusted EPS: $0.95, flat YoY on a constant-currency basis (as expected after divestiture adjustments). - Revenue: $6.1bn, +7% YoY driven by +1% volume and pass-through of raw material costs. - Synergies: $60m delivered in the quarter, in line with plan.

Updated transition outlook (near-term headwind from timing of cost pass-through): - Adjusted EPS outlook (transition period): lowered to $1.70–$1.80 per share from $1.80–$1.90 prior. - Reason: non-raw material inflation (notably energy and distribution) accelerated starting late in the Sept quarter, creating a timing mismatch on when incremental costs can be passed through. - No expected negative impact into 2027: management expects the incremental inflation to be absorbed via price + cost actions and to catch up by end of Dec quarter, so 2027 should not see residual impact from this inflation cycle.

Segment and margin effects: strong top-line pass-through, but dilution in EBIT margins: - Core business: EBIT +3% constant currency; EBIT margin 11.9% (and 12.8% excluding ~90 bps dilution from higher pass-through sales dollars). - Flexible Packaging (Global Flexible Packaging Solutions): sales +10% constant currency, aided by pass-through of $316m higher raw materials; volumes ~flat. - Rigid Packaging (Global Rigid Packaging Solutions): volumes +2%, sequentially +150 bps; EBIT -3% constant currency, with margin dilution from pass-through. - Surprising/important investor nuance: margins are pressured by pass-through mechanics (sales dollars rise faster than margin dollars) even when underlying demand is improving.