Revenue increased 26% year-on-year, producing a record first half. Gross margin expanded 360 basis points. Operating income more than doubled. And earnings per share more than tripled compared to the first half of 2025. The magnitude of these improvements demonstrates the leverage in our financial model as revenue scales and factory utilization improves. In early May, we issued $1.15 billion of 0% convertible debt, resulting in an increase in cash, liquidity, and total debt. This financing provides additional flexibility to support our strategic growth initiatives as we progress through our current investment phase. As of June 30th, we held $2.5 billion in cash and short-term investments, and total liquidity was $3.6 billion. Total debt was $2.5 billion, and our debt-to-EBITDA ratio was 1.8 times, Now, turning to our third quarter outlook. Accelerated growth in computing and continued momentum in automotive and industrial are expected to drive another solid quarter of revenue and improved profitability. Q3 revenue is expected to be between $1.95 and $2.05 billion. Gross margin is projected to be between 18.5% and 19.5%, driven by a richer mix of advanced technologies and continued operating leverage across the business. We expect operating expenses of approximately $140 million. Our full year 2026 effective tax rate is expected to be around 20%. Net income is forecasted to be between $180 and $205 million, resulting in EPS between $0.72 and $0.82. Our estimated 2026 CapEx spend remains between $2.5 and $3 billion. Approximately 65 to 70 percent is projected for facilities expansion, including phase one of our Arizona campus. About 30 to 35 percent is projected for HDFO, test, and other advanced packaging capacity. The remaining spend is projected for R&D and quality programs. In closing, as the business scales, we expect that disciplined execution will continue to strengthen our financial performance. We delivered record second quarter results, and our strong third quarter outlook reflects our continued focus on our strategic initiatives. This concludes our prepared remarks. We will now open the call up for your questions. Operator?

Thank you. And at this time, we will conduct the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. And our first question comes from Randy Abrams with UBS. Please state your question.

Okay, yeah, thank you. Hey, I want to test the first question on the smartphone outlook, where I believe you're guiding down versus normal. You get the peak season iOS builds. Could you go through between Android and iOS, your expectation? And also, you mentioned one factor was the SIP moving to Vietnam. If you could discuss, is that a timing that as you do the transition, it's a delay and you ramp up later. So maybe as part of that, you can discuss implication with the lower third quarter base if it swings the buildup in fourth quarter.

Okay. Thanks, Randy. It's good to hear you. So as Megan kind of went through, you can think of a few different dynamics going on, and I'll kind of touch on both of them or all three of them. Two of those, I would say, are or more market-driven type dynamics, and then one that AMCOR has a little bit more control of. So if you think of the market-driven dynamics, you know, I think there's two buckets there. There's obviously material constraints. You can think of that related to memory and then, you know, memory pricing and potentially how that affects the end market, you know, the selling of the phones per unit volume. And then the other is just, you know, typical build patterns that we're seeing. So I'd say that's probably about 50% of what we're seeing from a typical type of seasonal Q3 lift. The other 50% would be driven by, again, this SIP move. And you can think of that a lot about, you know, we've been very focused on our operational efficiencies. And one component of that is working on getting the right products, you know, that are in the right locations so that we can scale and really be efficient with those products over time. This helps us obviously stay competitive longer term, and it helps us also to optimize our cost structure at the same time. So you're right. This move, there's a little bit of timing. We've been, over the past, you know, year plus, we've been working with all of our SIP customers to migrate the products into Vietnam to really build the efficiency and scale in that Vietnam facility. And then on the flip side of that, as we move those products out of Korea, that's freeing up space for us to continue to scale our high-value advanced products. Then the last part of the question, thinking about Android versus iOS, you know, we're definitely seeing demand components in both of them. You know, Megan highlighted for Android, you know, even in Q2, we started seeing some weaknesses. I'd say we continue to see that, you know, moving forward, mostly driven, again, by materials and overall demand. And then iOS, you know, a little bit different dynamics there. But, again, overall, if you look at, you know, GFK and Gardner, they would expect unit volumes to be down this year. So we're definitely seeing some of that.

Okay. No, thank you. I appreciate the color. And I'll just have one quick follow-up on that one. But just to the SIPP, if that's an issue that is a one-quarter timing and you pick back up some of that half, or that's something that may extend through this cycle, and then you kind of pick up more later. And then the second question I wanted to ask on inflection of computing. It looks like a very strong ramp of this initial big CPU project. Could you talk about pipeline? We're at the NLSA. You talked about other projects like the fan-out bridge, your expectation and where you see that coming in over the next year and how the pipeline is expanding into 2027.

Yeah, so I think everything that we've announced related to all the individual products or projects, you know, for 2.5D, we talked about 11 customers, you know, a lot of different programs. For HDFO, we talked about five customers, 10 active engagements. You know, across all of those, we still see, you know, traction to have four of these, four in each, four 2.5D, four HDFO products launching this year. The CPU program that we've been talking about most recently ramping today is definitely the largest from a scale perspective. And then, you know, the other ones will continue to ramp up throughout the course of the year. If I think forward, you know, you mentioned bridge-type technologies. Again, that would be more of a 2028, you know, type timeline. So still a little bit of time to go there. And then coming back to the SIP, you know, dynamics with the move and, you know, this one quarter, you know, if we look across all the customers that are migrating, there's a lot of different phases that the customers are in. Some of them are already in volume production today. Others are, you know, ramping today. Others are in qualification. You know, there is one application space where we see that this headwind will last longer. so it's not a one-quarter dynamic. It's probably going to extend into Q4 and even into the first half of next year.

Thank you. And a reminder to the audience to ask a question, press star 1 on your telephone keypad. And in order to get through as many questions as we can in the time remaining, please limit yourselves to one question and one follow-up question. Your next question comes from Craig Ellis with B. Riley Securities. Please state your question.

Yeah, thanks for taking the question. I wanted to start just by making sure I understood the SIP issue that Randy dug into as it relates to impact around the third quarter where your guidance is clear. As you get ready for that transition, was there any communications benefit in 2Q? And as we look at the fourth quarter, Kevin, can you speak more specifically to what we should expect coming off of this initial impact with SIP move?

Okay. So, first, I would say I wouldn't say there was any benefit for Q2, you know, especially related to this transfer. I think we potentially saw a little bit of pulling in the Q2 in general, but I wouldn't say that was related to this transfer. If we look forward to Q4, we would expect that communications in general will continue to have some good terminology, maybe a little bit of softness, so we wouldn't expect to see a significant lift like we typically would in the second half even going into Q4.

Okay, that's really helpful. Thank you. And then the second question is related to the NVIDIA agreement. So congratulations on signing an agreement that seems very significant. The question is this. As you do R&D work to develop technology with that partner, what should we think of as the impact to R&D and operating expense, and when would that happen for the technology development work? And then what's the timing on the $1.5 billion in receipt for that partnership, and when does it come onto the balance sheet? Thank you.

Okay. Thanks, Greg. I'll take some of that, and then Megan can add in. So first, you know, around R&D. So I would say there's no step function change in our standard engagements, you know, for high-value advanced packaging versus this agreement with NVIDIA related to our R&D activities. So it's not like I would expect some huge step up. You know, we continue to work with, you know, all of our customers related to, you know, advancing the next generation technologies. You know, typically we spend between 3% and 5% of our capital on R&D activities. I would expect that level to continue. Related to timing, so the structure here is that this is a prepayment that would basically be received in 2027 and returned back to the customer as we provide the services in the U.S. So with that, the longevity of the agreement can fluctuate a bit. but we would expect it to be between 5 to 10 years.

Thank you. And your next question comes from Ben Reitzes with Melius Research. Please state your question.

Hey, guys. Thanks a lot. Can we bridge the gross margin going up at the midpoint 220 basis points sequentially? What's the impact of the SIP in that, And what is the utilization expectation as we go from 2Q to 3Q to get that much improvement?

So, you know, Megan will provide a lot more detail on the numbers, but I just wanted to add a little bit of maybe background or color. When we think about utilization, so, again, in Q1, we were in the 70s. You know, in Q2, we were in the higher set, the high 70s. Yeah, I think when we're working on moving the assets from Korea over to Vietnam and in some cases incrementally adding additional assets, you know, you can imagine there's assets in flight, you know, between crating them up in one location, shipping them to the other location, uncrating, qualifying. You know, so to me that's kind of, you know, stalled capacity that we're not really thinking about. So if we take that piece off the table, then I'd say utilization across the board is pretty high, especially for the advanced application spaces, very high utilization. We still have some buckets of open capacity in some of our mainstream, even though we've seen improvements there, especially in the Philippines. So utilization overall is definitely helpful on the profitability side. And then I'll let Megan comment on an additional color.

Hi, Ben. And specific to SIP, we actually had an increase in our overall SIP portfolio between Q1 and Q2. So when you look at that over 250 basis point expansion, I would characterize two-thirds of that expansion was volume or utilization related, and one-third was favorable product mix. And so with that, we're getting great profit expansion at the gross profit line. Operating income is also increasing 100%, and EPS increased 100% as well with the fall-through.

Yes, sorry. So then going into the third quarter, bridging to the guidance, what is the impact of those issues, both utilization and the SIP issue, to get the big increase for the third quarter?

Yeah, so third quarter, predominantly the impact on that gross margin expansion is related to product mix. We are having a very steep, accelerated ramp in our compute portfolio. And then with the decrease in communications, that is the dynamics around the product mix shift driving that profit expansion.

Okay. All right. Got it. Thanks a lot.

Your next question comes from Dennis Piatanen with Needham & Company. Please see your question.

Great. Thank you very much. So I also had a question about gross margins, but it seems like it may have been partially answered already, so maybe you could just clarify a little bit about the mix and utilization impact. So going from Q1 into Q2, did I correctly understand that it was about a one-third mix and two-thirds utilization? And then going from Q2 to Q3, the mix would be the bigger driver of the upside?

That's correct, Dennis.

And then let's see, for my follow-up, just about the kind of revenue dynamics between Q2 and Q3, would you be able to say if there were any pull-ins from Q3 into Q2 and which technology? Because it seems like the revenue did come in a little bit higher than some expectations perhaps, but I wasn't sure if there was things shifting around or if there was kind of no activity like that.

Yeah, I'll take that. So nothing obvious, no obvious pull-ins. Like I mentioned earlier, there could have been some comms pull-ins, but across the other markets, we did not see any pull-in dynamics there.

Understood. I think that's it for me. Thank you very much. Thank you, Dennis.

Your next question comes from Steve Barger with KeyBank Capital Markets. Please state your question.

Hey, thanks. Over the past few years, in 4Q, the gross margin steps up sequentially from 3Q and from where you're guiding this 3Q at 19%. So as the volume ramps in compute and auto, and that's offset by some comms weakness, is there any reason that we should think the seasonal pattern would be different this year? Do you expect that step up or how would you expect that to play out?

You know, I would just say that it will be dependent on the mix. You know, mix and utilization are going to be the two primary drivers. If the utilization continues to remain high and the mix stays about the same, we wouldn't expect any significant deltas, you know, from Q3.

Okay. Okay. The reason I ask is, if you do get that same gross margin or a little bit better, if my math's right, you're going to end up this year around 17.5% gross margin, and EPS would be plus or minus 250, which is where the 2028 targets were from the analyst day. So can you just frame up how you expect this year to play out versus 2027 and into that 2028 target just to help us think about that cadence?

I think your math is right. So then it just comes down to next year we need to be thinking about the U.S. manufacturing burden. So that's going to be a headwind. So we need to continue to – when we looked at our longer-term targets, we tried to contemplate the headwinds from the U.S. that will be a drag for a little while.

The operating margin dilution from the depreciation?

Yeah, Megan can take that.

Yes, and in 28, we will also have some of that in gross margin. So that's part of the bridge that you're trying to understand is why would 28 match 26? Because there will be ramping, underutilized Arizona manufacturing in both gross margin and operating margin in 2028.

Understood. Thanks. Thanks, Steve.

Thank you. And at this time, I'm showing no further questions. I would like to turn the call back over to Kevin for closing remarks.

Thank you for your questions. Now for a recap of our key messages. Amcor delivered record second quarter revenue of $1.9 billion with record computing as well as automotive and industrial revenue. We saw year-and-year growth across all end markets. The first half of 2026 performance demonstrates the strength in our customer partnerships, technology leadership, and a global footprint strategy. Demand for advanced packaging continues to expand, and our advanced packaging programs remain on track to support growth in the second half of 2026. Recent strategic partnerships with TSMC and NVIDIA reinforce the increasingly critical role advanced packaging plays and strength of our long-term growth opportunities. We are executing with discipline against our strategic priorities and remain confident in our ability to create long-term value for customers and shareholders. Thank you for joining the call today.

Thank you. Ladies and gentlemen, this concludes today's conference call. You may now disconnect.