Amcor's 2025 10-K: The Financial Impact of the Berry Global Merger

Amcor plc, a global titan in the packaging industry, has just released its annual 10-K report, and it details a year of monumental change. We're diving into the numbers from this latest filing to understand the impact of its biggest move yet: the massive merger with Berry Global Group, Inc. While the deal promises long-term strategic advantages, its short-term financial effects are starkly visible in the income statement.

A Merger of Giants

The headline event for Amcor in fiscal year 2025 was undoubtedly the completion of its merger with Berry Global on April 30, 2025. This $10.4 billion transaction has reshaped Amcor's financial landscape. Because the deal closed late in the fiscal year, the 2025 results only include two months of Berry's operations, giving us just a glimpse of the combined entity's potential.

The merger immediately expanded Amcor's scale. Total assets swelled from $16.5 billion in 2024 to $37.1 billion in 2025, and net debt more than doubled from $6.1 billion to $13.3 billion. This increased leverage is a critical factor for investors to monitor.

Dissecting the Income Statement

Despite the expanded operations, the bottom line tells a more complex story. Net sales rose 10% to $15.0 billion from $13.6 billion in 2024, largely thanks to the inclusion of Berry's revenue. However, profitability took a significant hit.

Net income attributable to Amcor plc fell by 30% to $511 million, down from $730 million in the prior year. Consequently, diluted earnings per share (EPS) dropped from $0.505 to $0.320.

What drove this decline? The primary culprits were the substantial costs associated with the merger. "Restructuring, transaction and integration expenses" skyrocketed from $97 million in 2024 to $307 million in 2025. This figure includes $202 million in direct transaction and integration costs and $41 million in accelerated merger-related compensation. Additionally, amortization of newly acquired intangible assets added another $79 million in expenses compared to the previous year.

To visualize how Amcor's revenue flows through its costs and expenses to its final profit, the following flow diagram breaks down the 2025 income statement.

Segment Performance

A look at Amcor's business segments reveals where the changes are most pronounced.

• Global Flexible Packaging Solutions: This segment, which provides films and specialty cartons, remained a stable performer. Sales grew modestly to $10.9 billion, and its adjusted profit margin held steady at 13.4%.
• Global Rigid Packaging Solutions: This is where the Berry acquisition made its mark. The segment, which makes containers and closures, saw sales jump 25% to $4.1 billion. More impressively, its adjusted profit margin improved from 7.8% to 9.1%, suggesting a positive impact from the newly integrated operations.

Looking Ahead: Integration is Key

Amcor's fiscal year 2025 was a story of transformation. The company has taken a bold strategic step to consolidate its market leadership, but this has come with significant short-term financial pain. As highlighted in the filing's risk factors, the primary challenge now is the "successful integration" of the two massive organizations. Realizing the anticipated synergies, managing the hefty debt load, and harmonizing two distinct corporate cultures will be the defining tasks for management in the coming year. Investors will be watching closely to see if this strategic gamble pays off and if the promised benefits begin to flow to the bottom line.