Amcor Misses Q2 Sales Estimates Amid Weak Demand

Amcor Reports Q2 Revenue Shortfall

Packaging firm Amcor missed Wall Street's second-quarter sales estimates, citing the impact of rising tariffs and weakened consumer spending. The company reported revenue of $5.45 billion for the quarter ending December 31, falling short of the $5.58 billion average analyst expectation compiled by LSEG.

However, adjusted profit for the quarter was 86 cents per share, narrowly beating estimates of 85 cents.

Tariffs and Consumer Spending Impact Demand

Sales volumes declined across key markets in North America and Europe. Persistent inflation and U.S. tariffs have curtailed non-essential consumer spending, causing major clients like Procter & Gamble and McDonald's to scale back their orders.

The North American beverage packaging sector, in particular, has experienced sustained pressure, constraining volume growth for several quarters.

Industry Headwinds and Market Response

Amcor is not alone in facing these challenges; peers such as International Paper and Packaging Corp of America have also reported soft demand. In response, Amcor is undergoing operational changes, including site closures and management adjustments.

Despite the sales miss, the company's U.S.-listed shares reacted positively, climbing approximately 3% in after-market trading.

Company Maintains Forward Guidance

Despite the current pressures and ongoing portfolio review, Amcor maintained its fiscal 2026 outlook, signaling confidence in its long-term strategy to stabilize performance.

FAQ

Q: Why did Amcor's Q2 sales miss expectations?
A: Sales were primarily impacted by rising tariffs and weak consumer spending, which led to lower demand and reduced orders from key customers in North America and Europe.

Q: How did Amcor's stock react to the earnings report?
A: The company's U.S.-listed shares rose approximately 3% in after-market trading following the announcement.

Source: Investing.com