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Avery Dennison announces first quarter 2026 results

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Avery Dennison Announces First Quarter 2025 Results

Delivered strong earnings growth and free cash flow in dynamic quarter

  • 1Q26 Reported EPS of $2.18

    • Adjusted EPS (non-GAAP) of $2.47, up 7.4%

  • 1Q26 Net sales of $2.3 billion, up 7.0%

    • Sales change ex. currency (non-GAAP) up 2.3%

    • Sales on an organic basis (non-GAAP) up 1.1%

  • 2Q26 Reported EPS guidance of $2.21 to $2.31

    • 2Q26 Adjusted EPS guidance of $2.43 to $2.53

MENTOR, Ohio, April 28, 2026 – Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced preliminary, unaudited results for its first quarter ended March 31, 2026. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year.

 

“We delivered strong first quarter results, with adjusted EPS of $2.47, once again reflecting the strength and resilience of our overall portfolio to deliver growth in a dynamic environment,” said Deon Stander, president and CEO.

 

“We are executing a clear strategy to drive earnings growth. This is underpinned by our proven playbook focused on innovation, commercial excellence, and service-led differentiation to gain share with rigorous productivity, procurement, and cost management. This playbook allows us to deliver value for our customers, while offsetting inflationary pressures and maintaining supply continuity. 

 

“I want to again extend my gratitude to our entire team. Our success reflects our team's agility and their dedication ensures that we continue to execute our strategic priorities and deliver results in 2026 and beyond.”

 

First Quarter 2026 Results by Segment

 

Materials Group

  • Reported sales increased 11.4% to $1.6 billion. Sales were up 3.6% ex. currency.

  • Sales up 1.9% on an organic basis

    • Mid-single digit volume/mix growth partially offset by deflation-related price reductions

    • Base categories up mid-single digits; high-value categories down low-single digits

    • Graphics and Reflectives down mid-single digits; Performance Materials down low-single digits

  • Reported operating margin of 14.9%

    • Adjusted operating margin (non-GAAP) of 15.4%, down 20 basis points

    • Adjusted EBITDA margin (non-GAAP) of 17.8%, up 10 basis points, as productivity and the net benefit of pricing and raw material costs, including raw material re-engineering, were partially offset by mix and higher employee-related costs

Solutions Group

  • Reported sales decreased 2.8% to $649 million. Sales were down 0.9% ex. currency.

  • Sales down 0.9% on an organic basis

    • Sales in high-value categories up low-single digits

      • Embelex and Vestcom up mid-single digits

      • Intelligent Labels down low-single digits

    • Sales in base categories down mid-single digits

    • Overall apparel categories comparable to prior year

  • Reported operating margin of 7.5%

    • Adjusted operating margin of 9.0%, down 120 basis points

    • Adjusted EBITDA margin of 16.4%, down 80 basis points, as productivity and the net benefit of pricing and raw material costs were more than offset by higher employee-related costs and investments

Other

 

Capital Deployment and Balance Sheet

 

The company continues to deploy capital in a disciplined manner, executing its long-term capital allocation strategy.  

 

During the first quarter of 2026, the company returned $133 million in cash to shareholders through a combination of dividends and share repurchases. The company repurchased 0.3 million shares, with payments for share purchases totaling $61 million. Net of dilution from long-term incentive awards, the company’s share count at the end of the quarter was down 1.9 million compared to the same time last year.

 

The company’s balance sheet remains strong. Net debt to adjusted EBITDA (non-GAAP) was 2.4x at the end of the first quarter.

 

Income Taxes

 

The company’s reported effective tax rate was 30.1% in the first quarter. The adjusted tax rate (non-GAAP) for the quarter was 26.2%.

 

Cost Reduction Actions

 

In the first quarter, the company realized approximately $17 million in pre-tax savings from restructuring actions and incurred approximately $16 million in pre-tax restructuring charges.

 

Guidance

 

In its supplemental presentation materials, “First Quarter 2026 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its financial results. Based on the factors listed and other assumptions, the company expects second quarter 2026 reported earnings per share of $2.21 to $2.31.

 

Excluding an estimated ~$0.22 per share impact of other items and restructuring charges, the company expects second quarter 2026 adjusted earnings per share of $2.43 to $2.53.

 

For more details on the company’s results, see the summary tables accompanying this news release, as well as the supplemental presentation materials, “First Quarter 2026 Financial Review and Analysis,” posted on the company’s website at www.investors.averydennison.com, and furnished to the SEC on Form 8-K.

 

Throughout this release and the supplemental presentation materials, amounts on a per share basis reflect fully diluted shares outstanding.


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About Avery Dennison

Avery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company. We are Making Possible™ products and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor and supply chain efficiency, reduce waste and mitigate loss, advance sustainability, circularity and transparency and better connect brands and consumers. We design and develop labeling and functional materials, radio-frequency identification (RFID) inlays and tags, software applications that connect the physical and digital and offerings that enhance branded packaging and carry or display information that improves the customer experience. Serving industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2025 were $8.9 billion. Learn more at www.averydennison.com.

 

 “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

 

Certain statements contained in this document are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, and financial or other business targets, are subject to certain risks and uncertainties.

 

We believe that the most significant risk factors that could affect our financial performance in the near term include:  (i) the impact on underlying demand for our products from global economic conditions, tariffs, geopolitical uncertainty, and changes in environmental standards, regulations and preferences; (ii) competitors’ actions, including pricing, expansion in key markets, and product offerings; (iii) the cost and availability of raw materials; (iv) the degree to which higher costs can be offset with productivity measures and/or passed on to customers through price increases, without a significant loss of volume; (v) foreign currency fluctuations; and (vi) the execution and integration of acquisitions.

 

Actual results and trends may differ materially from historical or anticipated results depending on a variety of factors, including but not limited to, risks and uncertainties related to the following:

  • International Operations – worldwide economic, social, geopolitical and market conditions; changes in geopolitical conditions, including those related to trade relations and tariffs, China, the Russia-Ukraine war, the Israel-Hamas war and related hostilities in the Middle East; fluctuations in foreign currency exchange rates; and other risks associated with international operations, including in emerging markets

  • Our Business – fluctuations in demand affecting sales to customers; fluctuations in the cost and availability of raw materials and energy; changes in our markets due to competitive conditions, technological developments, laws and regulations, and customer preferences; environmental regulations and sustainability trends; the impact of competitive products and pricing; the execution and integration of acquisitions; selling prices; customer and supplier concentrations or consolidations; the financial condition of distributors; outsourced manufacturers; product and service quality claims; restructuring and other cost reduction actions; our ability to generate sustained productivity improvement and our ability to achieve and sustain targeted cost reductions; the timely development and market acceptance of new products, including sustainable or sustainably-sourced products; our investment in development activities and new production facilities; the collection of receivables from customers; and our sustainability and governance practices

  • Information Technology – disruptions in information technology systems; cybersecurity events or other security breaches; and successful installation of new or upgraded information technology systems

  • Income Taxes – fluctuations in tax rates; changes in tax laws and regulations, and uncertainties associated with interpretations of such laws and regulations; outcome of tax audits; and the realization of deferred tax assets

  • Human Capital – recruitment and retention of employees and collective labor arrangements

  • Our Indebtedness – our ability to obtain adequate financing arrangements and maintain access to capital; credit rating risks; fluctuations in interest rates; and compliance with our debt covenants

  • Ownership of Our Stock – potential significant variability of our stock price and amounts of future dividends and share repurchases

  • Legal and Regulatory Matters – protection and infringement of our intellectual property; the impact of legal and regulatory proceedings, including with respect to compliance and anti-corruption, environmental, health and safety, and trade compliance

  • Other Financial Matters – fluctuations in pension costs and goodwill impairment

For a more detailed discussion of these factors, see “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Form 10-K, filed with the Securities and Exchange Commission on February 25, 2026.

 

The forward-looking statements included in this document are made only as of the date of this document, and we undertake no obligation to update these statements to reflect subsequent events or circumstances, other than as may be required by law.

 

For more information and to listen to a live broadcast or an audio replay of the quarterly conference call with analysts, visit the Avery Dennison website at www.investors.averydennison.com.

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Media contacts

MEDIA RELATIONS

Kristin Robinson
Vice President, Global Communications
kristin.robinson@averydennison.com

 

INVESTOR RELATIONS

William Gilchrist
Vice President, Investor Relations
investorcom@averydennison.com

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