Breaking Down Berry Global Group, Inc. (BERY) Financial Health: Key Insights for Investors

You're looking at Berry Global Group, Inc. (BERY) right now, trying to map its value, but you have to understand the company you knew is fundamentally changing; the biggest near-term driver isn't just packaging volume, it's the massive strategic pivot underway, including the pending combination with Amcor expected in mid-calendar 2025. The good news is that even with all that complexity, management has reaffirmed solid fiscal year 2025 guidance, projecting adjusted earnings per share (EPS) to land between $6.10 and $6.60, which is defintely a tight range for a company in transition. That confidence is grounded in a strong start, with Q1 fiscal 2025 delivering a +2% organic volume growth and a +5% increase in adjusted EPS, so the focus on fast-moving consumer goods is working. But here's the quick math: while the company anticipates generating strong free cash flow of $600-$700 million, you must factor in the temporary drag from increased business integration costs associated with the merger. Your decision isn't about their core business; it's about the merger calculus.

Revenue Analysis

You need to know where the money is coming from to gauge the stability of Berry Global Group, Inc. (BERY). The direct takeaway is that while overall net sales for the first half of fiscal year 2025 were stable, the company's revenue profile is undergoing a significant, deliberate shift due to major divestitures, moving toward a more focused consumer packaging model.

For the first half of fiscal year 2025 (ending March 2025), Berry Global Group's total net sales stood at approximately $4.905 billion, a modest increase from the $4.852 billion reported in the comparable period of 2024. For a full-year context, the trailing twelve months (TTM) revenue as of November 2025 is approximately $11.23 billion. This stability in top-line revenue, despite major portfolio changes, is a testament to the organic volume growth (which was +2% in Q2 2025) offsetting the impact of divested businesses.

Here's the quick math on where the revenue originates, based on the second quarter of 2025 results. This is how you see the core business segments perform post-restructuring:

The Consumer Packaging International segment remains the largest revenue contributor, generating $970 million in Q2 2025. The Consumer Packaging North America segment is showing the strongest near-term growth, with its net sales increasing by 5% to $789 million in Q2 2025, driven by organic volume growth. The Flexibles segment, however, saw a 5% decline in Q2 net sales, which is a direct result of the strategic divestiture of the Tapes business.

The most significant change in Berry Global Group's revenue streams is the strategic portfolio optimization (selling non-core assets to focus on consumer packaging). The company completed the spin-off of its Health, Hygiene & Specialties Global Nonwovens and Films (HHNF) business and sold its Specialty Tapes business in February 2025 for $443 million. This is defintely a big move. The company is intentionally shedding lower-margin or non-core product lines to concentrate on fast-moving consumer goods (FMCG) packaging, aiming for more predictable earnings growth and cash generation.

The year-over-year revenue growth rate is complex because of these divestitures; while the reported Q1 2025 net sales increased 2%, the more telling number is the 2% organic volume growth across all three remaining segments in Q2 2025. That organic growth is the engine you should be watching, as it shows the underlying demand for the core products is still healthy. For a deeper dive into the valuation implications of this shift, check out our full report: Breaking Down Berry Global Group, Inc. (BERY) Financial Health: Key Insights for Investors.

Profitability Metrics

You want to know if Berry Global Group, Inc. (BERY) is making money efficiently, and the short answer is yes, particularly when you look at operating performance. The company's focus on streamlining its portfolio is showing up in its margins, which are generally strong against the industry, but the net profit figure is where the rubber meets the road for investors.

For the trailing twelve months (TTM) ending March 2025, Berry Global Group, Inc. posted total Revenue of $9.567 billion. This is the foundation for understanding their profitability. Here's the quick math on their core margins, which tell a clear story about their cost management and bottom line:

• Gross Margin: 20.19% (Gross Profit of $1.977 billion). This is the first line of defense in profitability.
• Operating Margin: 10.36% (Operating Income of $1.019 billion). This shows how well they manage day-to-day operations.
• Net Profit Margin: 5.41% (Net Income of $548 million). This is the final takeaway after all expenses and taxes.

Honestly, the gross margin is a bit of a mixed bag. At 20.19% TTM, it's actually lagging the packaging industry average of 24.97%. This suggests Berry Global Group, Inc. is paying more for its raw materials, like resins, relative to its peers, or maybe it's not passing on those costs as aggressively. But still, the operating margin is the real standout. At 10.36%, it beats the industry average of 9.37%. That tells me their selling, general, and administrative (SG&A) expenses are tightly controlled, which is a huge win for operational efficiency.

When we look at the trend, you can see the volatility that comes with being in the packaging space, especially with raw material price swings. The Net Profit Margin has moved from 6.44% in fiscal year 2022 and 5.86% in 2023 to the current TTM of 5.41%. The dip from 2023 to 2025 suggests that while the company is maintaining operational discipline (strong Operating Margin), the higher interest expense on their debt load and other non-operating factors are eating into the final net income number. The company's strategic moves, like the sale of the Tapes business in early 2025, are defintely aimed at improving this picture long-term.

Operational efficiency is where Berry Global Group, Inc. is executing well in 2025. They reported 2% organic volume growth in the second quarter of 2025, which is a key indicator of demand holding up. They are actively managing their portfolio, which includes the pending merger with Amcor, to focus on higher-growth, more stable consumer and healthcare packaging solutions. This strategic shift is designed to deliver more predictable earnings growth and cash generation, which should stabilize those margins over time. For more on the strategic implications of these moves, you should check out Exploring Berry Global Group, Inc. (BERY) Investor Profile: Who's Buying and Why?

Here is a snapshot of the key profitability metrics for the TTM ending March 2025, compared to the industry average:

The clear action here is to monitor the integration costs associated with the strategic actions, as these can temporarily depress the Net Profit Margin even when the core business (Operating Margin) is performing well.

Debt vs. Equity Structure

You need to know how Berry Global Group, Inc. (BERY) funds its operations, because a company's debt-to-equity mix (D/E) tells you everything about its financial risk profile. The direct takeaway is that Berry Global Group, Inc. historically ran a highly leveraged model, but the recent acquisition by Amcor PLC has fundamentally changed the credit landscape, offering a path to a stronger rating and lower leverage over the near term.

Berry Global Group, Inc.'s Leverage Overview

Before its acquisition by Amcor PLC in April 2025, Berry Global Group, Inc. carried a significant debt load, which is typical for a capital-intensive packaging manufacturer that grows through large acquisitions. As of March 2025, the company's total debt was approximately $7.44 Billion USD. This debt was primarily long-term, used to fund its global expansion and operational footprint. The company's strategy has always been to use debt financing to generate higher returns on equity (ROE), a common private equity-style approach that works well when cash flow is strong, but it also increases vulnerability during economic downturns.

Here's the quick math on the leverage: Berry Global Group, Inc.'s Debt-to-Equity (D/E) ratio stood at approximately 3.01 as of April 2025. To be fair, this is a high number. When you look at the broader Paper & Plastic Packaging Products & Materials industry, the average D/E ratio is closer to 1.083. So, Berry Global Group, Inc. was using nearly three times as much debt as shareholder equity to finance its assets compared to the industry average. That's a high-wire act, but one they managed through robust cash flow generation.

• D/E Ratio (April 2025): 3.01
• Industry Average D/E: 1.083
• Total Debt (March 2025): $7.44 Billion USD

The Impact of the Amcor Acquisition and Credit Rating Upgrade

The biggest change to Berry Global Group, Inc.'s financing structure in 2025 wasn't a new bond issuance; it was the all-stock acquisition by Amcor PLC, which closed around April 2025. This merger immediately altered the credit profile. S&P Global Ratings, for instance, raised Berry Global Group Inc.'s issuer credit rating to 'BBB' from 'BB+' in May 2025. That's a huge shift, moving the debt from non-investment grade to investment grade, which means lower borrowing costs and better access to capital markets.

The combined entity, Amcor, is now prioritizing deleveraging (reducing debt relative to earnings). While the pro forma (combined) net debt-to-EBITDA ratio is expected to temporarily rise to about 3.9x for Amcor's fiscal 2025 (ending June 30, 2025), management has stated they will prioritize bringing that down. This is the clear action plan: use the combined business's solid cash flow-which S&P projects will generate roughly $2.4 billion in free cash flow before dividends for the combined entity in FY 2025-to pay down debt. The debt-heavy growth model of the past is now being subsumed into a more financially conservative framework. You can read more about the players in this new combined structure by Exploring Berry Global Group, Inc. (BERY) Investor Profile: Who's Buying and Why?

The old Berry Global Group, Inc. balanced debt and equity with a strong bias toward debt to fuel aggressive M&A. The new structure, under Amcor PLC, is defintely shifting that balance toward a more stable, investment-grade profile, prioritizing debt reduction to solidify the rating. The key is watching how fast they can bring that 3.9x leverage multiple down.

Liquidity and Solvency

Berry Global Group, Inc. (BERY), prior to its combination with Amcor in April 2025, exhibited a tight but managed liquidity position, relying heavily on its strong cash flow generation rather than a deep pool of readily available current assets. The near-term liquidity ratios suggest a focus on efficiency and debt management, a common profile for a large, capital-intensive packaging company.

You need to look past the headline numbers to understand the true liquidity risk. A standard current ratio (Current Assets / Current Liabilities) of 0.91 and a quick ratio (excluding inventory) of just 0.49 for the most recent trailing twelve months (TTM) ending in early 2025 are both below the preferred 1.0 and 0.5 benchmarks, respectively. This means Berry Global Group, Inc. did not have enough current assets to cover its current liabilities, and removing inventory makes the picture even tighter. It's a sign of negative working capital, but it's not an immediate crisis, so long as inventory turns over quickly and accounts receivable are collected on time.

Here's the quick math on the short-term position:

• Current Ratio: 0.91 (Below 1.0, suggesting a reliance on inventory to meet short-term debt).
• Quick Ratio: 0.49 (A very tight position, confirming low cash and receivables relative to payables).
• Working Capital: Negative $311.00 million.

The negative working capital of $311.00 million is a direct consequence of those low ratios. To be fair, this is often a strategic choice for companies with high inventory turnover and strong supplier relationships, where they efficiently manage their working capital (the operating cycle) to minimize cash tied up in the business. Still, it leaves little room for error if sales slow down unexpectedly or if there's a sudden need for cash, like a major operational disruption.

Cash Flow: The Real Liquidity Engine

The true strength of Berry Global Group, Inc.'s liquidity lies in its ability to generate significant cash from operations, which is the real engine of the business. For the last twelve months leading into 2025, the company generated $1.08 billion in net cash from operating activities. This robust operational cash flow is what services the debt and funds growth, effectively mitigating the risk posed by the low current and quick ratios.

The cash flow statement trends are clear and actionable:

• Operating Cash Flow (OCF): Strong, at $1.08 billion (TTM). This is the primary liquidity strength.
• Investing Cash Flow (ICF): Capital expenditures (CapEx) were $423.00 million (TTM), which is a manageable outflow relative to OCF.
• Free Cash Flow (FCF): Calculated as OCF minus CapEx, this came in at a healthy $609.00 million (TTM), and the company was guiding for $600 million to $700 million for the full fiscal year 2025.
• Financing Cash Flow (FCF): The trend here is a commitment to debt reduction and shareholder returns. The company was actively paying down debt and returning capital through dividends (like the increased quarterly cash dividend of $0.31 per share) and share repurchases, which is a positive sign for long-term solvency.

What this estimate hides is the potential impact of the business spin-off and merger activities that occurred in early 2025, which can temporarily skew cash flow figures. The key takeaway is that the core business is a cash machine, which is why the company could afford to maintain a tight working capital position and still affirm strong free cash flow guidance for fiscal year 2025. The focus on strong adjusted free cash flow is defintely the central pillar of its financial strategy, as you can read more about its goals here: Mission Statement, Vision, & Core Values of Berry Global Group, Inc. (BERY).

Valuation Analysis

You're looking for a clear signal on Berry Global Group, Inc. (BERY): is it a buy, a hold, or a sell? Based on a review of its core valuation multiples and analyst sentiment as of late 2025, the stock appears to be fairly valued, leaning toward a Hold, but with some near-term upside potential. The market is pricing in expectations of moderating growth and managing its debt load, which is why the multiples look compellingly low compared to the broader market, but not outright cheap for its sector.

The stock has shown solid momentum, rising by over 32.43% over the past 365 days, with a 52-week range between $52.30 and $74.24. That's a strong run, so we need to check if the underlying financials support the current price of around $68.75. Honestly, the market is giving Berry Global Group a nod for its operational efficiency, but it's not defintely a screaming bargain.

Key Valuation Multiples (FY 2025 Data)

Valuation ratios help us translate the current stock price into context. Here's the quick math on Berry Global Group's key multiples, using Trailing Twelve Months (TTM) data as of April 2025, which provides the most current picture of the 2025 fiscal year performance:

• Price-to-Earnings (P/E) Ratio: The TTM P/E stands at 14.56. This is attractive when you compare it to the S&P 500's P/E, which is often in the low-to-mid twenties.
• Forward P/E Ratio: More importantly, the forward P/E is even lower at 10.23, suggesting analysts expect earnings per share (EPS) to grow or remain stable relative to the stock price.
• Price-to-Book (P/B) Ratio: At 3.54, the P/B ratio is on the higher side for a manufacturing company, indicating the stock price is trading at a significant premium to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This is a crucial metric for a capital-intensive company like Berry Global Group, as it accounts for debt. The EV/EBITDA is 9.32. Anything under 10.0x is generally considered reasonable, but it's not as low as you might hope for a company with a high debt-to-equity ratio.

What this estimate hides is the company's debt, which is a constant factor in its valuation. You need to consider that high P/B alongside the debt profile.

Dividend Profile and Analyst Consensus

Berry Global Group does pay a dividend, which adds a layer of stability for income-focused investors. The trailing 12-month dividend was $1.15 per share, giving the stock a current dividend yield of approximately 1.70%. The payout ratio-the percentage of earnings paid out as dividends-is roughly 24.78% (calculated as $1.15 DPS / $4.64 TTM EPS), which is very sustainable and leaves plenty of cash flow for debt reduction or share buybacks. This is a healthy ratio.

The professional consensus on the stock is a clear Hold.

Here is a snapshot of the analyst outlook:

The average price target of $75.13 suggests a modest upside, but it's not a conviction 'Buy' for the analyst community. The company's focus on its Mission Statement, Vision, & Core Values of Berry Global Group, Inc. (BERY) is key to its long-term strategy, but near-term, it's about navigating commodity costs and global demand. So, the action here is to monitor the next earnings report closely.

Risk Factors

You need to understand that investing in Berry Global Group, Inc. (BERY) in 2025 means you are buying into a company navigating a major strategic shift-the merger with Amcor-while simultaneously managing significant financial and operational pressures. The clear takeaway is that while the strategic moves are designed to create a global leader, the near-term risks center on high debt, integration costs, and raw material inflation.

Financial Leverage and Cost Headwinds

The most immediate and material risk for Berry Global Group, Inc. is its substantial debt load. At the end of the first quarter of fiscal year 2025 (December 2024), the company's current and long-term debt stood at a high of approximately $7.4 billion. This level of leverage means a larger portion of operating cash flow must go toward debt service, limiting capital for new growth or share repurchases. For perspective, the company's Debt-to-EBITDA ratio was around 4.01 as of April 30, 2025, which is high for a mature industrial company.

Operational costs are also a persistent headwind. In Q1 FY2025, the cost of sales increased by 1.4% year-over-year, driven primarily by rising raw material costs, which the company must try to pass through to customers. Plus, selling and administrative expenses jumped by 8.3% year-over-year in the same quarter, pushing these expenses to 9.4% of total revenues. That's a 60 basis-point climb, and it directly pressures the bottom line.

• High debt level requires intense focus on cash flow.
• Raw material inflation squeezes operating margins.
• Foreign currency swings impact international earnings.

Strategic and Integration Risks from Merger

The planned combination with Amcor, which closed in April 2025, is a transformative strategic action, but it brings its own set of substantial integration risks. The merger is expected to generate significant synergies, but the process of combining two massive global operations is complex and costly. In Q1 FY2025, operating income decreased, largely due to increased business integration costs related to the proposed merger. What this estimate hides is the human element: if onboarding takes 14+ days, churn risk rises.

The risk isn't just financial; it's operational. Combining IT systems, supply chains, and sales forces can lead to temporary disruptions, customer service issues, and the loss of key talent. The company needs to execute the integration flawlessly to realize the projected benefits. You can read more about the market's reaction to this deal here: Exploring Berry Global Group, Inc. (BERY) Investor Profile: Who's Buying and Why?

Mitigation Strategies and Portfolio Optimization

Berry Global Group, Inc. is defintely not standing still. The company's management is actively mitigating risks through strategic portfolio optimization and a clear focus on sustainability, which is a key competitive differentiator in the packaging industry.

Here's the quick math on their deleveraging and focus: they completed the sale of their Specialty Tapes business in February 2025, generating a pre-tax gain of $175 million. This cash is earmarked for debt reduction. For the full FY2025, the company reaffirmed its guidance, anticipating strong adjusted free cash flow between $600 million and $700 million, which will also be directed toward paying down debt.

On the external regulatory and environmental front, their 'Impact 2025' strategy is a strong mitigation plan against the global anti-plastic sentiment. They surpassed their science-based target of a 25% reduction in Scope 1 and 2 absolute emissions by 2025, achieving a 28.3% reduction by March 2025. This focus helps them meet customer demands for circular packaging solutions, which is critical for long-term revenue stability.

Growth Opportunities

You're looking for a clear map of where Berry Global Group, Inc. (BERY) is headed, especially with all the strategic portfolio changes happening. The direct takeaway is that the company is aggressively streamlining its business to become a pure-play, consumer-focused packaging leader, which should drive more predictable earnings growth and strong free cash flow in the near term.

The core of Berry Global Group, Inc.'s future growth is a focused portfolio and a commitment to sustainable packaging solutions. They are shifting away from lower-growth segments to concentrate on fast-moving consumer goods, which tends to be more resilient. This strategic pivot is expected to deliver continued low-single-digit volume growth for fiscal year 2025, a trend already seen with 2% organic volume growth in both the first and second quarters of 2025.

Future Revenue and Earnings Estimates

While the company's trailing twelve-month revenue as of November 2025 sits around $11.23 billion, the real story for investors is in the earnings and cash flow guidance, which reflects the new, leaner operating model. Management has reaffirmed its fiscal year 2025 guidance, projecting adjusted earnings per share (EPS) to be in the range of $6.10 to $6.60. Here's the quick math: this is a solid step up from the comparable fiscal year 2024 adjusted EPS of approximately $6.00.

More importantly for financial stability and shareholder returns, Berry Global Group, Inc. anticipates generating robust cash flow. They project cash flow from operations between $1.125 billion and $1.225 billion, translating to adjusted free cash flow of $600 million to $700 million for fiscal 2025. Strong cash flow is defintely the engine for debt reduction and potential capital returns.

Key Growth Drivers and Strategic Shifts

The company is not relying on massive organic growth alone; its near-term trajectory is defined by major portfolio adjustments. These actions are designed to create a more stable, higher-margin business. The combination with Amcor, expected to close in mid-calendar year 2025, is a key expansion initiative that will create a global packaging leader.

Other key strategic moves include:

• Spin-off and merger of the Health, Hygiene, and Specialties Global Nonwovens and Films Business (HHNF) with Glatfelter Corporation, completed in November 2024.
• Sale of the Tapes business, which closed in early February 2025 and contributed a $175 million gain in Q2 2025.
• Focus on accelerating organic growth and increasing margins through improved operational efficiency.

These are big moves. The goal is to focus all resources on the most profitable, consumer-facing segments. If you want to dive deeper into the full financial picture, you can find more analysis here: Breaking Down Berry Global Group, Inc. (BERY) Financial Health: Key Insights for Investors.

Competitive Advantages

Berry Global Group, Inc.'s competitive edge is built on two pillars: scale and sustainability. They leverage their unmatched global capabilities and deep innovation expertise to serve customers worldwide. But the most critical differentiator today is their focus on the circular economy.

The company's Impact 2025 strategy is driving product innovation that meets the surging demand for environmentally friendly packaging. They are aiming for 100% of their fast-moving consumer goods to be recyclable, reusable, or compostable by the end of 2025. This investment in post-consumer resin (PCR) use-which saw a 43% rise in 2024-and recycling infrastructure directly aligns with major consumer and corporate trends, positioning them as a preferred partner for brands seeking to meet their own sustainability goals. That's a serious long-term moat.