Amcor PLC (NYSE:AMCR) stock fell 0.74% (As on August 15, 11:23:25 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY25, while providing an optimistic outlook for fiscal 2026 following its acquisition of Berry Global. Fourth-quarter adjusted EBITDA rose 43% to $789 million, while adjusted EBIT increased 34% to $611 million on a constant currency basis. On a combined basis, volumes declined approximately 1.7% compared to the prior year, with the North America beverage business experiencing particular weakness. The company also announced it has identified its $20 billion core portfolio of consumer packaging and dispensing solutions for nutrition and health, while exploring alternatives for businesses with combined annual sales of approximately $2.5 billion that are less aligned with this core focus. Amcor is exploring alternatives to maximize value for each business, which may include restructuring, partnership and joint venture ownership models, cash sale or a combination thereof.

Meanwhile, Global Flexible Packaging Solutions segment net sales of $3,205 million were 19% higher than last year on a reported basis, including a favorable impact of approximately 1% related to movements in foreign exchange rates. Global Rigid Packaging Solutions segment net sales of $1,877 million were 121% higher than last year on a reported and constant currency basis, including approximately $1.1 billion of acquired sales net of divestments which represents growth of approximately 129%

AMCR in the fourth quarter of FY25 has reported the adjusted earnings per share of $0.20, missing the analysts’ estimates for the adjusted earnings per share of $0.21. The company had reported the adjusted revenue growth of 43 percent to $5.08 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $5.18 billion. The quarter’s results included two months of contribution from Berry Global following the April 30 completion of the all-stock acquisition. Price/mix had a favorable impact of approximately 1% driven by higher relative volume growth in high value categories, which partly offset an unfavorable volume impact of 1.7%. Adjusted EBIT of $611 million was 34% higher than last year on a constant currency basis, including approximately $200 million of acquired EBIT net of divestments which represents growth of approximately 44%.

Additionally, Amcor’s board declared a quarterly dividend of 12.75 cents per share, bringing the annual dividend for fiscal 2025 to 51.0 cents per share.

For fiscal 2026, Amcor forecasts adjusted EPS of $0.80-$0.83, well above the analyst consensus of $0.72, representing 12-17% growth in constant currency compared to fiscal 2025. The company expects to generate free cash flow of $1.8-$1.9 billion.