ACCO Brands (ACCO) investor relations material

Executive summary

• Q3 2025 net sales declined 8.8% year-over-year to $383.7 million, reflecting softer global demand and tariff impacts, but gross margin improved by 50 basis points and SG&A expenses declined due to cost reductions.

• Adjusted EPS for Q3 was $0.21, in line with outlook; reported EPS was $0.04, and full-year guidance was reaffirmed.

• Over $50 million in cost savings have been realized from a $100 million multi-year program, supporting profitability and cash flow.

• Americas and International segments both faced lower demand, but brands gained market share in North America back-to-school season.

• Technology Accessories and Gaming Accessories, including licensed wireless controllers for Switch 2, are expected to drive Q4 growth.

Financial highlights

• Q3 2025 net sales were $383.7 million, down 8.8% year-over-year; comparable sales fell 10.3%, with a nearly 2% FX benefit.

• Q3 gross margin was 33.0%, up 50 basis points; Q3 adjusted operating income was $39.2 million (10.2% margin), and adjusted EBITDA was $45.8 million (11.9% of sales).

• Q3 net income was $4.0 million ($0.04/share), down from $9.3 million last year; adjusted net income was $19.5 million ($0.21/share).

• Year-to-date adjusted free cash flow was $42 million, including $17 million from asset sales.

• Cash and cash equivalents at September 30, 2025, were $82.5 million.

Outlook and guidance

• Full-year 2025 net sales expected to decline 7.0–8.5%, with adjusted EPS forecasted at $0.83–$0.90.

• Adjusted free cash flow expected at $90–$100 million, including $17 million from asset sales.

• Q4 sales trends are expected to improve, led by positive FX and growth in Technology Accessories.

• Ongoing cost reduction and restructuring programs are anticipated to deliver $100 million in annualized pre-tax savings by end of 2026.

• Liquidity remains strong, with $271 million available under the revolver and no debt maturities until 2029.