NYSE:AMCR
Amcor plc
A global provider of sustainable flexible packaging solutions with a focus on circularity and innovation across food, beverage, and healthcare sectors.
Key Metrics
Investment Thesis
Bull Case
Amcor offers exposure to the growing demand for sustainable packaging solutions as global regulations tighten and consumer preferences shift toward eco-friendly materials. The company's strong operating cash flow of $1.39B provides flexibility for debt repayment and potential share buybacks, enhancing shareholder value over time. Strategic acquisitions totaling $1.65B suggest management is actively pursuing growth opportunities to offset macroeconomic headwinds.
Bear Case
Declining net income from $740M in 2024 to $518M in 2025 raises concerns about profitability sustainability amid rising input costs and competition. Significant non-operating losses of -$359M and other non-operating losses of -$807M indicate volatility that could impact future earnings stability. High levels of accumulated other comprehensive income loss (-$1.06B) and retained earnings deficit suggest underlying equity quality issues that warrant caution.
About Amcor plc
Amcor plc is a global leader in sustainable flexible packaging solutions, serving diverse markets including food, beverage, personal care, and pharmaceuticals. The company leverages its extensive manufacturing footprint to deliver high-quality barrier films and containers while driving innovation in circular economy initiatives. With revenue reaching $15.01B in 2025, Amcor balances organic growth with strategic acquisitions to expand its product portfolio.
Analysis
Management Discussion
While revenue grew to $15.01B in 2025, net income declined to $518M compared to $740M the prior year, indicating margin pressure or one-time costs affecting profitability. Cash flow from operations of $1.39B remains robust, supporting a strong balance sheet with $827M in cash and equivalents despite significant investing outflows of -$2.10B likely related to acquisitions. The company generated $518M in net profit before tax of $650M, reflecting ongoing operational efficiency efforts amidst a challenging macroeconomic environment.
Industry Overview
The flexible packaging industry is undergoing a rapid transformation driven by the global push for sustainability and reduction of single-use plastics. Companies in this sector are investing heavily in recyclable and compostable materials to meet stringent regulatory requirements set by governments worldwide. Market consolidation is common, with established players like Amcor acquiring smaller firms to capture market share and achieve economies of scale.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $14.69B | $13.64B | $15.01B |
| Cost of Revenue | $11.97B | $10.93B | $12.18B |
| Gross Profit | $2.73B | $2.71B | $2.83B |
| Operating Expenses | $1.22B | $1.50B | $1.82B |
| Operating Income | $1.51B | $1.21B | $1.01B |
| R&D | $101.0M | $106.0M | $120.0M |
| G&A | $1.25B | $1.26B | $1.21B |
| Stock-Based Comp | $54.0M | $32.0M | $74.0M |
| D&A | $586.0M | $595.0M | $722.0M |
| Amortization | $174.0M | $181.0M | $263.0M |
| Other OpEx | $-130.0M | $132.0M | $500.0M |
| Non-Operating Income | $-257.0M | $-307.0M | $-359.0M |
| Interest Expense | $290.0M | $348.0M | $396.0M |
| Interest Income | $31.0M | $38.0M | $49.0M |
| Pre-Tax Income | $1.25B | $907.0M | $650.0M |
| Income Tax | $193.0M | $163.0M | $135.0M |
| Continuing Ops | $1.06B | $744.0M | $515.0M |
| Discontinued Ops | $0 | $-4.0M | $3.0M |
| Net Income | $1.06B | $740.0M | $518.0M |
| Minority Interest | $10.0M | $10.0M | $7.0M |
| Net to Common | $1.05B | $730.0M | $511.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $5.31B | $4.96B | $8.43B |
| Cash & Equivalents | $689.0M | $588.0M | $827.0M |
| Accounts Receivable | $1.88B | $1.85B | $3.43B |
| Prepaid Expenses | $531.0M | $500.0M | $710.0M |
| Other Current Assets | $2.21B | $2.03B | $3.47B |
| Long-Term Assets | $11.70B | $11.56B | $28.63B |
| Intangibles | $1.52B | $1.39B | $7.40B |
| Goodwill | $5.37B | $5.34B | $11.28B |
| Operating Leases | $533.0M | $567.0M | $1.12B |
| Other LT Assets | $4.27B | $4.26B | $8.84B |
| Total Assets | $17.00B | $16.52B | $37.07B |
| Current Liabilities | $4.48B | $4.26B | $6.99B |
| Accounts Payable | $2.69B | $2.58B | $3.49B |
| Current Leases | $101.0M | $114.0M | $240.0M |
| Other Current Liab | $1.69B | $1.57B | $3.26B |
| Long-Term Liabilities | $8.44B | $8.31B | $18.34B |
| LT Operating Leases | $463.0M | $488.0M | $910.0M |
| Other LT Liab | $7.97B | $7.82B | $17.43B |
| Total Liabilities | $12.91B | $12.57B | $25.33B |
| Shareholders' Equity | $4.09B | $3.95B | $11.74B |
| Retained Earnings | $865.0M | $879.0M | $548.0M |
| AOCI | $-862.0M | $-1.02B | $-1.06B |
| Treasury Stock | $12.0M | $11.0M | $6.0M |
| Total L&E | $17.00B | $16.52B | $37.07B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $1.06B | $740.0M | $518.0M |
| Non-Cash Adjustments | $972.0M | $757.0M | $324.0M |
| Working Capital Changes | $-769.0M | $-176.0M | $548.0M |
| Cash from Operations | $1.26B | $1.32B | $1.39B |
| Cash from Investing | $-309.0M | $-476.0M | $-2.10B |
| Debt Issuances | $522.0M | $1.02B | $2.18B |
| Debt Repayments | $330.0M | $16.0M | $506.0M |
| Share Buybacks | $432.0M | $30.0M | $0 |
| Dividends Paid | $723.0M | $722.0M | $845.0M |
| Cash from Financing | $-1.02B | $-857.0M | $910.0M |
| FX Effect | $-88.0M | $-89.0M | $41.0M |
| Net Change in Cash | $-161.0M | $-101.0M | $239.0M |
| Beginning Cash | $775.0M | $689.0M | $588.0M |
| Ending Cash | $689.0M | $588.0M | $827.0M |
Frequently Asked Questions
How does Amcor plc make money?
Amcor's revenue is primarily driven by its core flexible packaging businesses, which include films, laminates, and containers for the food and beverage industries. A significant portion of operations focuses on pharmaceutical packaging, providing essential barrier protection for sensitive medicines. The company also reports substantial goodwill ($11.28B) indicating a history of strategic acquisitions that bolster its market presence in specific verticals.
What are the main risks for AMCR?
The company faces exposure to volatile commodity prices for key raw materials like resins and aluminum, which can compress gross margins. Currency fluctuations impact global cash flows, as evidenced by the fx effect on cash of $41M in the latest period. Intense competition from alternative packaging formats and new entrants could erode market share if innovation lags behind industry standards.
What is AMCR's competitive advantage?
Amcor possesses a distinct advantage through its vertically integrated manufacturing capabilities and proprietary sustainable material technologies that reduce waste. Its global supply chain network allows for rapid response to regional demand shifts, providing resilience against raw material volatility. Strong relationships with major multinational brands ensure high customer retention and recurring revenue streams.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.