Results
THIRD QUARTER 2026 RESULTS
Delivered strong sales, earnings and cash flow
3Q26 Reported EPS of $2.24
7○ Adjusted EPS (non-GAAP) of $2.42, up 2.1%
83Q26 Net sales of $2.3 billion, up 5.2%
○ Sales change ex. currency (non-GAAP) up 4.9%
○ Organic sales change (non-GAAP) up 3.7%
FY26 Reported EPS guidance of $9.45 to $9.59
○ FY26 Adjusted EPS guidance of $10.10 to $10.24
MENTOR, Ohio, October 29, 2026 – Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced preliminary, unaudited results for its third quarter ended September 30, 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 another quarter of strong results, highlighted by continued improvement in our underlying organic sales and earnings growth,” said Deon Stander, Avery Dennison’s president and CEO.
“Our focus on innovation and service-led differentiation drove mid-single digit organic growth in both our high-value categories and base businesses.
In the face of higher inflation and customer destocking impacts, our teams demonstrated strong operational agility, delivering robust productivity and generating impressive free cash flow.
“I want to thank our global teams for their agility and performance.
Their commitment strengthens our competitive moat as we execute through the balance of the year and beyond.”
Third Quarter 2026 Results by Segment
Materials Group
Reported sales increased 8.5% to $1.6 billion.
1Sales up 6.7% ex. currency
Sales up 4.9% on an organic basis
○ High-value categories up mid-single digits
○ Base categories up mid-single digits
○ Volume/mix growth of low single digits and price benefit of mid-single digits
Reported operating margin of 13.7%
4○ Adjusted operating margin (non-GAAP) of 14.1%, down 110 basis points
3○ Adjusted EBITDA margin (non-GAAP) of 16.4%, down 110 basis points, as productivity was more than offset by negative volume/mix and higher employee-related costs.
Solutions Group
Reported sales decreased 1.8% to $687 million.
2Sales up 0.8% ex. currency
Sales up 0.8% on an organic basis
○ High-value categories comparable to prior year
○ Base categories up low single digits
○ Overall apparel categories up mid-single digits
Reported operating margin of 10.5%
○ Adjusted operating margin of 10.8%, up 80 basis points
○ Adjusted EBITDA margin of 17.8%, up 80 basis points, as productivity was partially offset by higher employee-related costs.
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 three quarters of 2026, the company returned $481 million in cash to shareholders through a combination of share repurchases and dividends.
The company repurchased 1.5 million shares, with payments for share purchases totaling $257 million.
5Net of dilution, the company’s share count at the end of the third 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 2.2x at the end of the third quarter.
Income Taxes
The company’s reported effective tax rate was 29.6% and 29.1% for the three and nine months ended September 30, 2026, respectively.
The adjusted tax rate (non-GAAP) was 26.9% for both the three and nine months ended September 30, 2026.
Cost Reduction Actions
6Through the first three quarters of the year, the company realized approximately $54 million in pre-tax savings from restructuring actions and incurred approximately $43 million in pre-tax restructuring charges.
Guidance
In its supplemental presentation materials, “Third 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 full year 2026 reported EPS of $9.45 to $9.59.
Excluding an estimated $0.65 impact of restructuring charges and other items, the company expects full year 2026 adjusted EPS of $10.10 to $10.24.
For more details on the company’s results, see the financial schedules accompanying this news release, as well as the supplemental presentation materials, “Third 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.
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.
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, recent conflicts involving the U.S., Israel and Iran and related hostilities in the Middle East, the Russia-Ukraine war, and the Israel-Hamas war; 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 and the impact of legal and regulatory proceedings, including with respect to 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, and subsequent quarterly reports on Form 10-Q.
Vice President, Investor Relations
Vice President, Global Communications
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