Delivered a solid year in a dynamic environment, reflecting the durability of our franchise

• FY25 Reported EPS of $8.79

  • Adjusted EPS (non-GAAP) of $9.53, up 1%

• FY25 Net sales of $8.9 billion, up 1%

  • Sales change ex. currency (non-GAAP) comparable to prior year

  • Sales on an organic basis (non-GAAP) comparable to prior year

• 4Q25 Reported EPS of $2.15

  • 4Q25 Adjusted EPS of $2.45, up 3%

• 4Q25 Net sales of $2.3 billion, up 4%

  • Sales change ex. currency up 1%

  • Sales on an organic basis comparable to prior year

• 1Q26 Reported EPS guidance of $2.27 to $2.33

  • Adjusted EPS guidance of $2.40 to $2.46

MENTOR, Ohio, February 4, 2026 – Avery Dennison Corporation (NYSE:AVY) today announced preliminary, unaudited results for its fourth quarter and full year ended December 31, 2025. 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 solid full-year results in 2025, with adjusted EPS of $9.53, reflecting the durability of our business model in a dynamic environment. Despite tariff-related impacts and softer consumer volumes, our team successfully leveraged our proven productivity playbook to maintain an adjusted EBITDA margin of 16.4% and generate over $700 million in adjusted free cash flow,” said Deon Stander, president and CEO.

“Throughout the year, we made consistent progress advancing our key strategies, notably driving outsized growth in high-value categories, which now represent approximately 45% of our total revenue, as well as continuing to advance our differentiation by accelerating innovation outcomes across the enterprise. We continued to demonstrate disciplined capital allocation, balancing organic investments and the strategic acquisition of Taylor Adhesives with the return of roughly $860 million to our shareholders. 

“Once again, I extend my gratitude to our agile and talented team. Their unwavering commitment to excellence and focus on our strategic priorities have positioned us well to deliver GDP-plus growth and top-quartile returns through the cycle.”

Fourth Quarter 2025 Results by Segment

Materials Group

• Reported sales increased 5.1% to $1.5 billion. Sales were up 0.3% ex. currency and down 0.9% on an organic basis.

  • Low single digit volume/mix growth was more than offset by deflation-related price reductions.

  • High-value categories up low single digits, which includes Intelligent Labels up high single digits, and base categories down low single digits

  • Graphics and Reflectives up low single digits; Performance Materials comparable to prior year

• Reported operating margin was 12.8%.

  • Adjusted operating margin (non-GAAP) of 14.2%, down 60 basis points

  • Adjusted EBITDA margin (non-GAAP) was 16.6%, down 40 basis points, as higher employee-related costs were partially offset by benefits from productivity.

Solutions Group

• Reported sales increased 1.5% to $724 million. Sales were up 1.3% ex. currency and on an organic basis.

  • Sales in high-value categories were up high single digits.

    • Intelligent labels up low single digits

    • Embelex up high single digits

    • Vestcom up more than 10%

  • Sales down mid-single digits in base solutions

• Reported operating margin was 8.5%. 

  • Adjusted operating margin of 11.2%, down 20 basis points

  • Adjusted EBITDA margin was 17.8%, comparable to prior year as benefits from productivity were offset by higher employee-related costs and growth investments.

Other

Balance Sheet and Capital Deployment

During the fourth quarter, the company returned $191 million in cash to shareholders through a combination of dividends and share repurchases. The company repurchased 0.7 million shares, with payments for share repurchases totaling $119 million.

During 2025, the company returned $861 million in cash to shareholders through a combination of dividends and share repurchases. The company repurchased 3.2 million shares, with payments for share repurchases totaling $572 million. Net of dilution from long-term incentive awards, the company’s share count was down 2.9 million compared to the same time last year.

The company continues to deploy capital in a disciplined manner, executing its long-term capital allocation strategy. The company’s balance sheet remains strong and its net debt to adjusted EBITDA ratio (non-GAAP) was 2.4x at the end of the fourth quarter.

Income Taxes

The company’s reported effective tax rate was 19.9% in the fourth quarter and 25.6% for the full year. The adjusted tax rate (non-GAAP) was 23.6% in the fourth quarter and 25.5% for the full year.

Cost Reduction Actions

During 2025, the company realized more than $60 million in pre-tax savings from restructuring actions and incurred approximately $47 million in pre-tax restructuring charges.

Guidance

In its supplemental presentation materials, “Fourth Quarter and Full Year 2025 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 first quarter 2026 reported earnings per share of $2.27 to $2.33.

Excluding the estimated $0.13 per share impact of restructuring charges and other items, the company expects first quarter 2026 adjusted earnings per share of $2.40 to $2.46.

For more details on the company’s results, see the summary tables accompanying this news release, as well as the supplemental presentation materials, “Fourth Quarter and Full Year 2025 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.