Avery Dennison
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Avery Dennison (AVY) investor relations material

Avery Dennison Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary4 Feb, 2026

Executive summary

  • FY25 adjusted EPS was $9.53, up 1% year-over-year, with adjusted free cash flow of $707M, reflecting resilience amid trade policy changes and softer consumer sentiment.

  • High-value categories now represent 45% of sales, growing at a mid-single-digit CAGR since 2019, with significant innovation in Intelligent Labels and software platforms.

  • Q4 adjusted EPS was $2.45, up 3% year-over-year, driven by higher volume and productivity, partially offset by higher employee-related costs and growth investments.

  • Balanced capital allocation, returning $861M to shareholders and expanding high-value category exposure through the $390M Taylor Adhesives acquisition.

  • Achieved 2025 sustainability objectives and made progress toward 2030 goals.

Financial highlights

  • Full-year net sales reached $8.9B, up 0.2% organically; Q4 net sales were $2.3B, up 4% reported, down 0.2% organically.

  • Adjusted EBITDA margin for FY25 was 16.4%; Q4 margin was 16.2%.

  • Adjusted free cash flow for the year was $707M, with conversion above 100%.

  • Returned $861M to shareholders in 2025 via buybacks and dividends.

  • Net debt to adjusted EBITDA ratio at 2.4x at year-end.

Outlook and guidance

  • Q1 2026 adjusted EPS guidance is $2.40–$2.46, with organic sales growth of 0%-2% and reported sales growth of 5%-7%.

  • Full-year 2026 guidance includes 5%-7% reported sales growth, with ~4% currency tailwind and ~1% from Taylor Adhesives.

  • Sequential earnings increase expected throughout 2026, with Walmart food rollout ramping in H2.

  • Targeting ~100% adjusted free cash flow conversion and CapEx of ~$260M.

  • No macroeconomic tailwinds assumed; growth to be driven by internal levers and high-value categories.

High-value categories: growth drivers and future mix
Capital allocation: shareholder returns vs. growth?
Outlook for productivity vs. cost pressures?
Quantify 2026 temporary savings headwind
HVC margin differential vs. base categories
Apparel market trajectory given tariff uncertainty
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Frequently asked questions

Adhesives, Adhesives, Adhesives

Avery Dennison is an American company headquartered in Mentor, Ohio, and operating globally. The company produces a wide range of products with adhesive materials such as labels, brandings, RFID inlays, tags, and similar items. Its products are used in everything from retail sales to medical products, and Avery Dennison is one of the leaders in the materials science field. The company had its IPO in 1961, and today its shares trade on the NYSE.

R. Stanton Avery

Avery Dennison Corporation traces its roots back to 1935 when R. Stanton Avery invented the first self-adhesive label. The company quickly expanded from this point onward, creating a wide array of products utilizing Stanton Avery’s invention. An important milestone came in 1990 when the company merged with Dennison Manufacturing, a firm established in the 19th century that specialized in ticketing, tagging, and labeling systems. The combined entity, Avery Dennison, expanded its product range to include diverse offerings such as RFID-based solutions and packaging materials.

The Products

Over the years, the company's product portfolio has been used in various diverse sectors, from fashion and food to electronics and automotive. Avery Dennison Corporation produces a wide range of products primarily centered on adhesive materials, labels, and branding solutions. One of its core product lines is pressure-sensitive materials, which include self-adhesive labels used for product branding, barcoding, and tracking across various industries. The company also produces functional and decorative graphics solutions, suitable for vehicles, architectural design, and digital signages. Additionally, they provide tapes, fasteners, and adhesives designed for industrial, medical, and consumer applications. In the pursuit of greener business practices and sustainability, Avery Dennison has introduced environmentally friendly products, which focus on reducing waste and promoting recyclability.

Avery Dennison is one of the leaders in its field, but it’s not alone in producing these types of products. When looking at the company’s peers, one finds names like 3M and CCL among the competition.

RFID

Avery Dennison's RFID (Radio Frequency Identification) solutions represent a significant facet of its product portfolio, primarily designed to enhance supply chain visibility, inventory management, and loss prevention for retailers and other industries. These RFID tags and labels are embedded with tiny electronic devices that store and transmit information when activated by a radio frequency scanner.

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