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BERRY GLOBAL GROUP, INC. (BERY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered in-line results: Net sales $2.520B, GAAP diluted EPS $1.64, Operating EBITDA $436M (+2% YoY), and adjusted EPS $1.55 (+4% YoY); organic volumes grew +2% across all segments .
  • Reported operating income rose to $391M, largely aided by a $175M gain on the divestiture of the Tapes business; adjusted operating income was $266M vs $272M in Q2 2024, reflecting stable underlying performance .
  • Segment mix: Consumer Packaging North America net sales +5% (broad-based volume growth), Consumer Packaging International flat, Flexibles -5% driven by the Tapes divestiture; all segments posted positive volumes .
  • Guidance: No update in Q2; FY25 guidance reaffirmed in Q1—Adjusted EPS $6.10–$6.60, CFO $1.125–$1.225B, FCF $600–$700M; quarterly dividend $0.31 announced in Q1 .
  • Stock-relevant catalysts: Ongoing portfolio reshaping and deleveraging (debt down to $6.979B from $8.129B in Q1), sale of Tapes business gain, and pending all-stock merger with Amcor; company did not host an earnings call due to the pending transaction .

What Went Well and What Went Wrong

What Went Well

  • Broad-based volume growth: “All three of our segments…delivered positive volumes, driving 2% overall organic volume growth in the quarter.” — CEO Kevin Kwilinski .
  • Underlying profitability: Operating EBITDA $436M (+2% YoY) and adjusted EPS $1.55 (+4% YoY), demonstrating resilient core earnings despite portfolio changes .
  • Balance sheet progress: Total debt fell to $6.979B (from $8.129B in Q1), reflecting deleveraging momentum post spin/merger and divestiture actions .

What Went Wrong

  • Flexibles revenue decline: Net sales -5% YoY to $761M, primarily from the divested Tapes business; underlying volumes +2% only partially offset the headwind .
  • Price-cost pressure in North America: Consumer Packaging North America operating income decreased due to negative price-cost spread, despite +2% organic volume and +5% net sales .
  • Cash flow softness YTD: Continuing operations operating cash flow was -$212M for the first two quarters, driven by -$464M working capital outflows; despite Q2 non-GAAP FCF of $37M, cumulative YTD free cash flow remained negative .

Financial Results

Quarterly Progression (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Net Sales ($USD Billions)$3.168 $2.385 $2.520
GAAP Diluted EPS ($)$1.26 $0.69 $1.64
Adjusted Diluted EPS ($)$2.27 $1.09 $1.55
Operating Income ($USD Millions)269 152 391
Operating EBITDA ($USD Millions)546 378 436

Year-over-Year (Q2 2024 vs Q2 2025)

MetricQ2 2024Q2 2025
Net Sales ($USD Billions)$2.519 $2.520
GAAP Diluted EPS ($)$0.80 $1.64
Adjusted Diluted EPS ($)$1.49 $1.55
Operating Income ($USD Millions)182 391
Operating EBITDA ($USD Millions)427 436

Segment Breakdown (Q2 2025)

SegmentNet Sales ($USD Millions)Operating Income ($USD Millions)Operating EBITDA ($USD Millions)
Consumer Packaging – International$970 $69 $168
Consumer Packaging – North America$789 $69 $142
Flexibles$761 $253 $126
Total$2,520 $391 $436

KPIs

KPIQ4 2024Q1 2025Q2 2025
Organic Volume Growth (%)+1% (excluding HHNF) +2% +2%
Total Debt ($USD Billions)$8.315 $8.129 $6.979
KPIQ1 2025Q2 2025
Non-U.S. GAAP Free Cash Flow (Continuing Ops) ($USD Millions)(488) 37

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPSFY 2025$6.10–$6.60 (Reaffirmed in Q1) No update provided in Q2; prior guidance stands Maintained
Cash Flow from OperationsFY 2025$1.125–$1.225B (Reaffirmed in Q1) No update provided in Q2; prior guidance stands Maintained
Free Cash FlowFY 2025$600–$700M (Reaffirmed in Q1) No update provided in Q2; prior guidance stands Maintained
Dividend per ShareQuarterly$0.31 declared for March 17, 2025 payment No new dividend announcement in Q2 release Maintained (no update)

Earnings Call Themes & Trends

Note: Berry did not host a Q2 2025 earnings call due to the pending Amcor transaction; themes are drawn from company communications (press releases/8-Ks) .

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Portfolio actions (HHNF spin, Tapes sale, Amcor merger)HHNF spin completed (Nov’24); Amcor merger announced; Tapes sale announced; strategic focus on consumer packaging Tapes sale gain $175M; continued messaging on pending Amcor merger and global leadership ambitions Continuing; integration planning
Volumes and demandLow-single-digit growth trajectory; broad-based NA volume gains; emerging markets strength +2% organic volume growth across all segments Improving/stable
Price-cost spread / polymer costsPrior-year timing tailwinds impacted margins; mixed price-cost spread Higher polymer costs passed through (+$50M price); negative price-cost spread in NA impacted OI Mixed; managing pass-through
Europe/industrial demandRecovery signs in European industrial markets (Flexibles) Continued recovery underpinning volumes; CPI impacted by weaker Europe demand offset by EM growth Gradual recovery
Deleveraging and cash returnsLeverage at 3.5x; plan to reduce leverage; dividend raised to $0.31 Debt reduced Q/Q; dividend framework unchanged; Q2 non-GAAP FCF positive Positive deleveraging
Communications cadenceJoint calls with Amcor (Q4); no standalone calls in Q1/Q2 No call in Q2 due to transaction Temporary pause

Management Commentary

  • “Berry delivered a solid second quarter result aligned with the expectations we set. All three of our segments, once again, delivered positive volumes, driving 2% overall organic volume growth in the quarter. I am extremely proud of our teams… including the sale of our Tapes business and the pending merger with Amcor.” — Kevin Kwilinski, CEO .
  • “Our intentional focus on fast-moving consumer goods will lead to more predictable earnings growth and cash generation… we are reaffirming our guidance… continued low-single-digit volume growth… along with strong adjusted free cash flow.” — Kevin Kwilinski (Q1 2025) .

Q&A Highlights

  • Berry did not host a Q2 2025 earnings call due to the pending Amcor transaction; therefore, no Q&A session or clarifications were provided this quarter .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for Q2 2025 were not retrievable due to a CIQ mapping issue in the tool; accordingly, an estimate comparison could not be provided at this time (attempted; unavailable). The company characterized Q2 results as “in-line with expectations,” but this refers to internal expectations rather than Wall Street consensus .
  • If consensus becomes available, we would compare GAAP EPS ($1.64), adjusted EPS ($1.55), and net sales ($2.520B) against S&P Global estimates to assess beats/misses .

Key Takeaways for Investors

  • Core performance is stable: Adjusted EBITDA (+2% YoY) and adjusted EPS (+4% YoY) indicate resilient underlying earnings despite portfolio changes .
  • Reported EPS/operating income were boosted by the $175M Tapes sale gain; focus on adjusted metrics to gauge recurring profitability .
  • Volumes are a bright spot (+2% overall), with NA net sales +5% and broad-based growth; watch price-cost spread dynamics, particularly in North America .
  • Deleveraging is underway: Debt fell to $6.979B from $8.129B; continued balance sheet improvement supports the medium-term thesis post-merger .
  • Cash flow seasonality persists: Q1 showed large working capital outflows; Q2 non-GAAP FCF turned positive; monitor 2H cash generation versus FY25 FCF guidance .
  • Transaction overhang: Pending Amcor merger shapes investor narrative and near-term communications cadence (no call); integration and synergy visibility will be key to multiple expansion .
  • Near-term trading setup: With results in-line and portfolio actions progressing, stock catalysts are likely tied to deal milestones, deleveraging updates, and any resumed guidance commentary or call cadence .