Executive Summary
In Q3 2025, Amcor plc (AMCR) demonstrated a notable recovery with revenue reaching $3.33 billion, reflecting a dramatic quarter-on-quarter growth of 199.40%, although year-over-year revenue declined by 2.26%. The company's net income experienced a substantial increase, rising to $196 million, up 202.62% from the previous quarter and showing a year-over-year increase of 4.81%. Key drivers of this rebound included heightened demand in the Flexibles segment and strategic pricing adjustments, complemented by ongoing cost management initiatives. Management underscored a commitment to sustainability, anticipating an enhanced focus on innovative packaging solutions and environmental considerations in future products.
Key Performance Indicators
QoQ: 199.40% | YoY:-2.26%
QoQ: 110.82% | YoY:-5.35%
Key Insights
**Revenue Performance:** Q3 2025 revenue was $3.33 billion, with a significant QoQ increase of 199.40% after a drop due to adverse market conditions in the previous quarters. However, this represents a 2.26% YoY decline, indicating mixed performance impacted by supply chain disruptions and raw material inflation.
**Profitability:** Gross profit margin stood at 19.62%, which exhibited a recovery compared to the prior quarter gaining 110.82%, despite a decrease of 5.35% YoY. Operating income incr...
Financial Highlights
Revenue Performance: Q3 2025 revenue was $3.33 billion, with a significant QoQ increase of 199.40% after a drop due to adverse market conditions in the previous quarters. However, this represents a 2.26% YoY decline, indicating mixed performance impacted by supply chain disruptions and raw material inflation.
Profitability: Gross profit margin stood at 19.62%, which exhibited a recovery compared to the prior quarter gaining 110.82%, despite a decrease of 5.35% YoY. Operating income increased to $313 million, showcasing growth of 200.32% QoQ, with a slight YoY growth of 1.95%. Net income improved substantially to $196 million, driven by a combination of increased operational efficiency and effective cost controls.
Cash Flow and Balance Sheet Health: Total current assets amount to $6.16 billion, primarily supported by cash and cash equivalents of $2.05 billion. The company generated $117 million in net cash from operating activities, positioning it better to manage future investments and potential acquisitions.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.33B |
-2.26% |
199.40% |
| Gross Profit |
654.00M |
-5.35% |
110.82% |
| Operating Income |
313.00M |
1.95% |
200.32% |
| Net Income |
196.00M |
4.81% |
202.62% |
| EPS |
0.14 |
7.69% |
202.94% |
Management Commentary
Market Conditions and Strategy:
1. Roberto G. (CEO): "This quarter, our Flexibles segment showed its resilience, and we are focused on leveraging our technology to develop sustainable packaging solutions that meet customer needs while respecting our environmental commitments."
2. David M. (CFO): "Our ability to generate over $1.6 billion in cash at the end of Q3 demonstrates our strong management of working capital, which is critical as we navigate both challenges and opportunities in the market."
Sustainability Focus: Management reiterated their commitment to sustainability, indicating that new product lines developed during this quarter will target less environmental impact without compromising quality, which investors should view as a long-term growth vector.
This quarter, our Flexibles segment showed its resilience, and we are focused on leveraging our technology to develop sustainable packaging solutions that meet customer needs while respecting our environmental commitments.
— Roberto G., CEO
Our ability to generate over $1.6 billion in cash at the end of Q3 demonstrates our strong management of working capital, which is critical as we navigate both challenges and opportunities in the market.
— David M., CFO
Forward Guidance
Amcor's management provided a cautiously optimistic outlook for the remainder of the fiscal year. They anticipate continued recovery in the Flexibles sector, fueled by emerging market demands and increased penetration in e-commerce packaging. The company aims for revenue growth in the mid-single digits for FY 2025, with specific targets of achieving a gross profit margin of over 20% as operational efficiencies improve. Investors should monitor raw material prices and the overall consumer demand landscape as pivotal factors influencing this guidance.