• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    The Bull Case For Amcor (AMCR) Could Change Following Its Post‑Berry Free Cash Flow Pivot And Dividend Hike

    Simply Wall St·02/17/2026 23:27:06
    Listen to the news
    • In early February 2026, Amcor’s board declared a quarterly cash dividend of US$0.65 per share (A$0.93 per CDI) and reported second-quarter sales of US$5,449 million and net income of US$177 million for the period ended December 31, 2025.
    • The company’s higher dividend and earnings release came alongside management’s emphasis on growth opportunities, free cash flow generation, and portfolio reshaping following the Berry acquisition.
    • Against this backdrop, we’ll now examine how Amcor’s reinforced free cash flow focus after the Berry acquisition influences its investment narrative.

    Uncover the next big thing with 29 elite penny stocks that balance risk and reward.

    Amcor Investment Narrative Recap

    To own Amcor today, you have to believe the Berry deal, portfolio reshaping and focus on consumer packaging can translate higher sales into stronger, more reliable free cash flow. The latest dividend increase and solid Q2 headline growth support that narrative, but they also highlight the near term tension between funding a higher payout and managing high leverage. The biggest swing factor remains execution on Berry synergies, while the key risk is slower progress on exiting underperforming North American assets.

    The February 2026 earnings release is central here: Q2 sales of US$5,449 million and net income of US$177 million put numbers around the enlarged business after Berry. However, lower EPS versus the prior year and slimmer margins underline why management is talking so much about free cash flow and portfolio pruning. These results keep the synergy and divestment story front and center as the main short term catalyst, but they also keep integration and leverage risks firmly in view.

    Yet while the dividend hike looks reassuring on the surface, investors should be aware that...

    Read the full narrative on Amcor (it's free!)

    Amcor's narrative projects $24.3 billion revenue and $1.7 billion earnings by 2028.

    Uncover how Amcor's forecasts yield a $53.49 fair value, a 8% upside to its current price.

    Exploring Other Perspectives

    AMCR 1-Year Stock Price Chart
    AMCR 1-Year Stock Price Chart

    Some of the lowest ranked analysts were already cautious, assuming earnings of about US$1.7 billion by 2029, and the latest results may either ease those concerns or reinforce worries that synergy execution and portfolio exits could fall short of expectations.

    Explore 7 other fair value estimates on Amcor - why the stock might be worth as much as 54% more than the current price!

    The Verdict Is Yours

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

    Searching For A Fresh Perspective?

    The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.