THIRD QUARTER 2026 RESULTS
– 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.”
○ 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.
○ Adjusted EBITDA margin of 17.8%, up 80 basis points, as productivity was partially offset by higher employee-related costs.
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. Net 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.
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.
Through 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.
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. # # #
“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, 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.
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.
Sep. 30, Sep. 27, ASSETS (UNAUDITED) 2026 2025 ────────────────────────────────────────────────────────────────────────────── Current assets: Cash and cash $ 271.4 $ 536.3 equivalen… Trade accounts 1,709.6 1,627.8 receivabl… net Inventori… 1,048.2 1,037.4 Other current 354.5 322.2 assets Total current 3,383.7 3,523.7 assets Property, plant and 1,558.7 1,579.9 equipment, net Goodwill and other intangibl… resulting 3,012.9 2,723.9 from business acquisiti… net Deferred 140.1 132.3 tax assets Other 1,073.0 907.1 assets Total $ 9,168.4 $ 8,866.9 assets LIABILITI… AND SHAREHOLD… EQUITY Current liabiliti… Short-term borrowings and current portion of $ 440.8 $ 578.8 long-term debt and finance leases Accounts 1,465.9 1,303.2 payable Other current 1,008.3 905.1 liabiliti… Total current 2,915.0 2,787.1 liabiliti… Long-term debt and 3,174.2 3,202.3 finance leases Other long-term 690.6 666.5 liabiliti… Sharehold… equity: Common 124.1 124.1 stock Capital in excess of 831.5 829.6 par value Retained 5,944.1 5,498.3 earnings Treasury stock at -4,144.4 -3,784.7 cost Accumulat… other -366.7 -456.3 comprehen… loss Total sharehold… 2,388.6 2,211.0 equity Total liabiliti… and $ 9,168.4 $ 8,866.9 sharehold… equity
(UNAUDITED) Nine Months Sep. 30, Sep. 27, Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── Operating Activities Net income $ 541.9 $ 521.6 Adjustments to reconcile net income to net cash provided by operating activities: Depreciati… 158.5 154.6 Amortizati… 100.3 88.1 Provision for credit losses and 35.5 39.2 sales returns Stock-based 22.3 22.7 compensati… Deferred taxes and other -27.1 -14.7 non-cash taxes Other non-cash expense and loss 39.1 31.7 (income and gain), net Changes in assets and liabilities -27.0 -338.6 and other adjustments Net cash provided by 843.5 504.6 operating activities Investing Activities Purchases of property, -115.1 -101.9 plant and equipment Purchases of software and other -20.5 -22.9 deferred charges Proceeds from sales of property, 1.9 20.2 plant and equipment Proceeds from insurance and sales 6.0 4.5 (purchases) of investment… net Proceeds from settlement 14.4 6.2 of net investment hedges Payments for acquisitio… net of cash -81.5 -10.7 acquired, and venture investments Net cash used in -194.8 -104.6 investing activities Financing Activities Net increase (decrease) in borrowings -69.1 482.0 with maturities of three months or less Additional long-term --- 576.8 borrowings Repayments of long-term -5.6 -558.3 debt and finance leases Dividends -223.9 -216.0 paid Share -257.2 -453.6 repurchases Net (tax withholdin… proceeds related -9.6 -12.7 to stock-based compensati… Payments for settlement -14.4 -13.5 of fair value hedges Other -0.5 -0.3 Net cash used in -580.3 -195.6 financing activities Effect of foreign currency 0.2 2.8 translation on cash balances Increase (decrease) in cash and 68.6 207.2 cash equivalents Cash and cash equivalent… 202.8 329.1 beginning of year Cash and cash equivalent… $ 271.4 $ 536.3 end of period
We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using certain non-GAAP financial measures. These non- GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. These non-GAAP financial measures are intended to supplement the presentation of our financial results prepared in accordance with GAAP. We use these non-GAAP financial measures internally to evaluate trends in our underlying performance, as well as to facilitate comparisons with the results of competitors for quarters and year- to-date periods, as applicable. Based on feedback from investors and financial analysts, we believe that the supplemental non-GAAP financial measures we provide are also useful to their assessments of our performance and operating trends, as well as liquidity. Reconciliations of our non-GAAP financial measures from the most directly comparable GAAP financial measures are provided in accordance with Regulations G and S-K.
Our non-GAAP financial measures exclude the impact of certain events, activities or strategic decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make it more difficult to assess our underlying performance in a single period. By excluding the accounting effects, positive or negative, of certain items (e.g., restructuring charges, outcomes of certain legal matters and settlements, certain effects of strategic transactions and related costs, losses from debt extinguishments, gains or losses from curtailment or settlement of pension obligations, gains or losses on sales of certain assets, gains or losses on venture and other investments, currency adjustments due to highly inflationary economies, and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency or timing.
We use the non-GAAP financial measures described below in the accompanying news release.
Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and, where applicable, currency adjustments for transitional reporting of highly inflationary economies and the reclassification of sales between segments. Additionally, where applicable, sales change ex. currency is also adjusted for the estimated impact of extra days in our fiscal year and the calendar shift resulting from extra days in the prior fiscal year. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior-period results translated at current-period average exchange rates to exclude the effect of foreign currency fluctuations. Our 2025 fiscal year began on December 29, 2024 and ended on December 31, 2025; fiscal years 2026 and beyond are coincident with the calendar year, beginning on January 1 and ending on December 31.
Organic sales change refers to sales change ex. currency, excluding the estimated impact of acquisitions and product line divestitures.
We believe that sales change ex. currency and organic sales change assist investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period.
Adjusted operating income refers to net income adjusted for taxes; other expense (income), net; interest expense; and other non-operating expense (income), net.
Adjusted EBITDA refers to adjusted operating income before depreciation and amortization.
Adjusted operating margin refers to adjusted operating income as a percentage of net sales.
Adjusted tax rate refers to the projected full-year GAAP tax rate, adjusted to exclude certain unusual or infrequent events that are expected to significantly impact that rate, such as effects of certain discrete tax planning actions, impacts related to enactments of tax law changes, and other items.
Adjusted net income refers to income before taxes, tax-effected at the adjusted tax rate, and adjusted for tax-effected restructuring charges and other items.
Adjusted net income per common share, assuming dilution (adjusted EPS) refers to adjusted net income divided by the weighted average number of common shares outstanding, assuming dilution.
We believe that adjusted operating margin, adjusted EBITDA margin, adjusted net income, and adjusted EPS assist investors in understanding our core operating trends and comparing our results with those of our competitors.
Net debt to adjusted EBITDA ratio refers to total debt (including finance leases) less cash and cash equivalents, divided by adjusted EBITDA for the last twelve months. We believe that the net debt to adjusted EBITDA ratio assists investors in assessing our leverage position.
Adjusted free cash flow refers to cash flow provided by (used in) operating activities, less payments for property, plant and equipment, less payments for software and other deferred charges, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds from insurance and sales (purchases) of investments. Where applicable, adjusted free cash flow is also adjusted for certain acquisition-related transaction costs, proceeds from company-owned life insurance policies and net cash used for Argentine Blue Chip Swap securities. We believe that adjusted free cash flow assists investors by showing the amount of cash we have available for debt reductions, dividends, share repurchases and acquisitions. -more-
Three Months Ended Sep. 30, 2026 ────────────────────────────────────────────────────────────────────────────── Total Materials Solutions Company Group Group Reconcilia… of organic sales change from GAAP: Net sales 5.2% 8.5% (1.8)% change Reclassifi… of sales --- (1.4)% 2.8% between segments Foreign currency (0.3)% (0.3)% (0.2)% translation Sales change ex. 4.9% 6.7% 0.8% currency (non-GAAP)… Acquisitio… (1.3)% (1.8)% --- Organic sales 3.7% 4.9% 0.8% change (non-GAAP)… (1)Totals may not sum due to rounding. Nine Months Ended Sep. 30, 2026 Total Materials Solutions Company Group Group Reconcilia… of organic sales change from GAAP: Net sales 7.7% 12.0% (1.7)% change Reclassifi… of sales --- (1.5)% 3.2% between segments Foreign currency (2.3)% (3.2)% (0.7)% translation Sales change ex. 5.4% 7.3% 0.8% currency (non-GAAP)… Acquisitio… (1.2)% (1.8)% --- Organic sales 4.1% 5.5% 0.8% change (non-GAAP)… (1)Totals may not sum due to rounding.
Full text with the tables
Exhibit 99.1
For Immediate Release
AVERY DENNISON ANNOUNCES
THIRD QUARTER 2026 RESULTS
Delivered strong sales, earnings and cash flow
● 3Q26 Reported EPS of $2.24
○ Adjusted EPS (non-GAAP) of $2.42, up 2.1%
● 3Q26 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.
● Sales 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%
○ Adjusted operating margin (non-GAAP) of 14.1%, down 110 basis points
○ 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.
● Sales 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. Net 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
Through 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.
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, 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.
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.
Contacts
:
William Gilchrist
Vice President, Investor Relations
investorcom@averydennison.com
Kristin Robinson
Vice President, Global Communications
kristin.robinson@averydennison.com
Third
Quart…
Finan…
Summa…
-
Preli…
unaud…
(in
milli…
except
% and
per
share
amoun… % Net
Net Sales
sales, Change Ex.
by 3Q 3Q vs. PY Curren… Organ…
segme… 2026 2025 GAAP (non-G… (non-…
──────────────────────────────────────────────────────────────────────────────
Mater… $ 1,644.5 $ 1,516.0 8.5% 6.7% 4.9%
Group
Solut… 687.0 699.5 (1.8)% 0.8% 0.8%
Group
Total
net $ 2,331.5 $ 2,215.5 5.2% 4.9% 3.7%
sales
% of
Net
Sales
3Q 3Q % 3Q 3Q
2026 2025 Change 2026 2025
Segme…
adjus…
opera…
income
and
margi…
Mater… $ 231.1 $ 230.1 14.1% 15.2%
Group
Solut… 74.4 69.7 10.8% 10.0%
Group
Corpo… -23.4 -18.7
expen…
Adjus…
opera…
income $ 282.1 $ 281.1 0.4% 12.1% 12.7%
and
margi…
(non-…
Segme…
adjus…
EBITDA
and
margi…
Mater… $ 268.9 $ 264.9 16.4% 17.5%
Group
Solut… 122.2 118.9 17.8% 17.0%
Group
Corpo… -23.4 -18.7
expen…
Adjus…
EBITDA
and $ 367.7 $ 365.1 0.7% 15.8% 16.5%
margi…
(non-…
Net $ 169.7 $ 166.3 2.0% 7.3% 7.5%
income
Adjus…
net $ 183.3 $ 184.8 (0.8)% 7.9% 8.3%
income
(non-…
Net
income
per
common $ 2.24 $ 2.13 5.2%
share,
assum…
dilut…
Adjus…
net
income
per
common $ 2.42 $ 2.37 2.1%
share,
assum…
dilut…
(non-…
Adjus…
free
cash $ 246.0 $ 268.7
flow
(non-…
YTD
Adjus…
free $ 715.8 $ 404.5
cash
flow
See
sched…
A-4 to
A-8
for
recon…
of
non-G…
finan…
measu…
from
GAAP.
A-1
AVERY DENNISON CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(UN…
Thr… Sep. Sep. Nine Sep. Sep.
Mon… 30, 27, Mon… 30, 27,
End… 2026 2025 End… 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 2,3… $ 2,2… $ 7,0… $ 6,…
sa…
Co…
of 1,6… 1,5… 5,0… 4,…
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(i…
net
In… 35.7 33.3 107… 98…
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(i…
net
In…
be… 241… 234… 764… 71…
ta…
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in…
ta…
Net $ 169… $ 166… $ 541… $ 52…
in…
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in…
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sh…
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-more-
A-2
AVERY DENNISON CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
Sep. 30, Sep. 27,
ASSETS (UNAUDITED) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Current
assets:
Cash and
cash $ 271.4 $ 536.3
equivalen…
Trade
accounts 1,709.6 1,627.8
receivabl…
net
Inventori… 1,048.2 1,037.4
Other
current 354.5 322.2
assets
Total
current 3,383.7 3,523.7
assets
Property,
plant and 1,558.7 1,579.9
equipment,
net
Goodwill
and other
intangibl…
resulting 3,012.9 2,723.9
from
business
acquisiti…
net
Deferred 140.1 132.3
tax assets
Other 1,073.0 907.1
assets
Total $ 9,168.4 $ 8,866.9
assets
LIABILITI…
AND
SHAREHOLD…
EQUITY
Current
liabiliti…
Short-term
borrowings
and
current
portion of $ 440.8 $ 578.8
long-term
debt and
finance
leases
Accounts 1,465.9 1,303.2
payable
Other
current 1,008.3 905.1
liabiliti…
Total
current 2,915.0 2,787.1
liabiliti…
Long-term
debt and 3,174.2 3,202.3
finance
leases
Other
long-term 690.6 666.5
liabiliti…
Sharehold…
equity:
Common 124.1 124.1
stock
Capital in
excess of 831.5 829.6
par value
Retained 5,944.1 5,498.3
earnings
Treasury
stock at -4,144.4 -3,784.7
cost
Accumulat…
other -366.7 -456.3
comprehen…
loss
Total
sharehold… 2,388.6 2,211.0
equity
Total
liabiliti…
and $ 9,168.4 $ 8,866.9
sharehold…
equity
-more-
A-3
AVERY DENNISON CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(UNAUDITED)
Nine Months Sep. 30, Sep. 27,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operating
Activities
Net income $ 541.9 $ 521.6
Adjustments
to
reconcile
net income
to
net cash
provided by
operating
activities:
Depreciati… 158.5 154.6
Amortizati… 100.3 88.1
Provision
for credit
losses and 35.5 39.2
sales
returns
Stock-based 22.3 22.7
compensati…
Deferred
taxes and
other -27.1 -14.7
non-cash
taxes
Other
non-cash
expense and
loss 39.1 31.7
(income
and gain),
net
Changes in
assets and
liabilities -27.0 -338.6
and
other
adjustments
Net cash
provided by 843.5 504.6
operating
activities
Investing
Activities
Purchases
of
property, -115.1 -101.9
plant and
equipment
Purchases
of software
and other -20.5 -22.9
deferred
charges
Proceeds
from sales
of
property, 1.9 20.2
plant
and
equipment
Proceeds
from
insurance
and sales 6.0 4.5
(purchases)
of
investment…
net
Proceeds
from
settlement 14.4 6.2
of net
investment
hedges
Payments
for
acquisitio…
net of cash -81.5 -10.7
acquired,
and venture
investments
Net cash
used in -194.8 -104.6
investing
activities
Financing
Activities
Net
increase
(decrease)
in
borrowings -69.1 482.0
with
maturities
of three
months or
less
Additional
long-term --- 576.8
borrowings
Repayments
of
long-term -5.6 -558.3
debt and
finance
leases
Dividends -223.9 -216.0
paid
Share -257.2 -453.6
repurchases
Net (tax
withholdin…
proceeds
related -9.6 -12.7
to
stock-based
compensati…
Payments
for
settlement -14.4 -13.5
of fair
value
hedges
Other -0.5 -0.3
Net cash
used in -580.3 -195.6
financing
activities
Effect of
foreign
currency 0.2 2.8
translation
on cash
balances
Increase
(decrease)
in cash and 68.6 207.2
cash
equivalents
Cash and
cash
equivalent… 202.8 329.1
beginning
of
year
Cash and
cash
equivalent… $ 271.4 $ 536.3
end of
period
-more-
A-4
Reconciliation of Non-GAAP Financial Measures from GAAP
We report our financial results in conformity with accounting principles
generally accepted in the United States of America, or GAAP, and also
communicate with investors using certain non-GAAP financial measures. These non-
GAAP financial measures are not in accordance with, nor are they a substitute
for or superior to, the comparable GAAP financial measures. These non-GAAP
financial measures are intended to supplement the presentation of our financial
results prepared in accordance with GAAP. We use these non-GAAP financial
measures internally to evaluate trends in our underlying performance, as well as
to facilitate comparisons with the results of competitors for quarters and year-
to-date periods, as applicable. Based on feedback from investors and financial
analysts, we believe that the supplemental non-GAAP financial measures we
provide are also useful to their assessments of our performance and operating
trends, as well as liquidity. Reconciliations of our non-GAAP financial measures
from the most directly comparable GAAP financial measures are provided in
accordance with Regulations G and S-K.
Our non-GAAP financial measures exclude the impact of certain events, activities
or strategic decisions. The accounting effects of these events, activities or
decisions, which are included in the GAAP financial measures, may make it more
difficult to assess our underlying performance in a single period. By excluding
the accounting effects, positive or negative, of certain items (e.g.,
restructuring charges, outcomes of certain legal matters and settlements,
certain effects of strategic transactions and related costs, losses from debt
extinguishments, gains or losses from curtailment or settlement of pension
obligations, gains or losses on sales of certain assets, gains or losses on
venture and other investments, currency adjustments due to highly inflationary
economies, and other items), we believe that we are providing meaningful
supplemental information that facilitates an understanding of our core operating
results and liquidity measures. While some of the items we exclude from GAAP
financial measures recur, they tend to be disparate in amount, frequency or
timing.
We use the non-GAAP financial measures described below in the accompanying news
release.
Sales change ex. currency refers to the increase or decrease in net sales,
excluding the estimated impact of foreign currency translation, and, where
applicable, currency adjustments for transitional reporting of highly
inflationary economies and the reclassification of sales between segments.
Additionally, where applicable, sales change ex. currency is also adjusted for
the estimated impact of extra days in our fiscal year and the calendar shift
resulting from extra days in the prior fiscal year. The estimated impact of
foreign currency translation is calculated on a constant currency basis, with
prior-period results translated at current-period average exchange rates to
exclude the effect of foreign currency fluctuations. Our 2025 fiscal year began
on December 29, 2024 and ended on December 31, 2025; fiscal years 2026 and
beyond are coincident with the calendar year, beginning on January 1 and ending
on December 31.
Organic sales change refers to sales change ex. currency, excluding the
estimated impact of acquisitions and product line divestitures.
We believe that sales change ex. currency and organic sales change assist
investors in evaluating the sales change from the ongoing activities of our
businesses and enhance their ability to evaluate our results from period to
period.
Adjusted operating income refers to net income adjusted for taxes; other expense
(income), net; interest expense; and other non-operating expense (income), net.
Adjusted EBITDA refers to adjusted operating income before depreciation and
amortization.
Adjusted operating margin refers to adjusted operating income as a percentage of
net sales.
Adjusted EBITDA margin refers to adjusted EBITDA as a percentage of net sales.
Adjusted tax rate refers to the projected full-year GAAP tax rate, adjusted to
exclude certain unusual or infrequent events that are expected to significantly
impact that rate, such as effects of certain discrete tax planning actions,
impacts related to enactments of tax law changes, and other items.
Adjusted net income refers to income before taxes, tax-effected at the adjusted
tax rate, and adjusted for tax-effected restructuring charges and other items.
Adjusted net income per common share, assuming dilution (adjusted EPS) refers to
adjusted net income divided by the weighted average number of common shares
outstanding, assuming dilution.
We believe that adjusted operating margin, adjusted EBITDA margin, adjusted net
income, and adjusted EPS assist investors in understanding our core operating
trends and comparing our results with those of our competitors.
Net debt to adjusted EBITDA ratio refers to total debt (including finance
leases) less cash and cash equivalents, divided by adjusted EBITDA for the last
twelve months. We believe that the net debt to adjusted EBITDA ratio assists
investors in assessing our leverage position.
Adjusted free cash flow refers to cash flow provided by (used in) operating
activities, less payments for property, plant and equipment, less payments for
software and other deferred charges, plus proceeds from sales of property, plant
and equipment, plus (minus) net proceeds from insurance and sales (purchases) of
investments. Where applicable, adjusted free cash flow is also adjusted for
certain acquisition-related transaction costs, proceeds from company-owned life
insurance policies and net cash used for Argentine Blue Chip Swap securities. We
believe that adjusted free cash flow assists investors by showing the amount of
cash we have available for debt reductions, dividends, share repurchases and
acquisitions.
-more-
A-5
AVERY DENNISON CORPORATION
PRELIMINARY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FROM GAAP
(In millions, except % and per share amounts)
(UN…
Thr… Sep. Sep. Nine Sep. Sep.
Mon… 30, 27, Mon… 30, 27,
End… 2026 2025 End… 2026 2025
──────────────────────────────────────────────────────────────────────────────
Re…
of
ad…
op…
and
EB…
ma…
fr…
GA…
Net $ 2,3… $ 2,2… $ 7,0… $ 6,5…
sa…
In…
be… $ 241… $ 234… $ 764… $ 717…
ta…
In…
be…
ta…
as
a 10.3 % 10.6 % 10.8 % 10… %
pe…
of
net
sa…
Ad…
In… $ 35.7 $ 33.3 $ 107… $ 98.2
ex…
Ot…
no…
ex… -4.4 -3.7 -13… -10…
(i…
net
Op…
in…
be…
in…
ex…
ot… $ 272… $ 264… $ 857… $ 805…
no…
ex…
(i…
and
ta…
Op… 11.7 % 11.9 % 12.1 % 12… %
ma…
Net $ 169… $ 166… $ 541… $ 521…
in…
Ad…
Re…
ch…
net
of
re…
Se…
and
re…
co… 8.1 7.5 38.8 20.1
net
of
re…
As…
im…
and 0.3 2.3 4.0 2.6
le…
ca…
ch…
Ou…
of
le… 1.3 4.7 2.0 4.7
ma…
and
se…
Lo…
fr…
Ar… 0.5 1.9 1.8 4.4
pe…
re…
(G…
lo…
on 0.4 -0.4 0.3 -11…
sa…
of
as…
(G…
lo…
on
ve… -1.0 -1.3 1.5 14.8
and
ot…
in…
Tr…
and --- 2.0 0.1 2.0
re…
co…
In… 35.7 33.3 107… 98.2
ex…
Ot…
no…
ex… -4.4 -3.7 -13… -10…
(i…
ne…
Pr…
for 71.5 68.5 222… 195…
in…
ta…
Ad…
op… $ 282… $ 281… $ 906… $ 842…
in…
(n…
Ad…
op… 12.1 % 12.7 % 12.8 % 12… %
ma…
(n…
De…
and $ 85.6 $ 84.0 $ 258… $ 24…
am…
Ad…
EB… $ 367… $ 365… $ 1,1… $ 1,…
(n…
Ad…
EB… 15.8 % 16.5 % 16.4 % 16… %
ma…
(n…
Re…
of
ad…
net
in…
fr…
GA…
Net $ 169… $ 166… $ 541… $ 521…
in…
Ad…
Re…
ch…
and 9.5 16.6 48.2 36.9
ot…
it…
Tax
ef…
on
re… -3.2 -3.9 -12… -11…
ch…
and
ot…
it…
Im…
of
ad… 7.3 5.8 16.6 9.8
tax
ra…
Ad…
net $ 183… $ 184… $ 594… $ 556…
in…
(n…
(1…
im…
am…
of
Ar…
in…
in…
for
pe…
pr…
(2…
net
tax
ex…
of
ap…
$5
re…
to
the
im…
of
ce…
tax
law
ch…
in
a
fo…
ju…
for
the
ni…
mo…
en…
Se…
30,
20…
-more-
A-5
(continued)
AVERY DENNISON CORPORATION
PRELIMINARY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FROM GAAP
(In millions, except % and per share amounts)
(UN…
Thr… Sep. Sep. Nine Sep. Sep.
Mon… 30, 27, Mon… 30, 27,
End… 2026 2025 End… 2026 2025
──────────────────────────────────────────────────────────────────────────────
Re…
of
ad…
net
in…
per
co…
sh…
fr…
GA…
Net
in…
per
co… $ 2.24 $ 2.13 $ 7.09 $ 6.…
sh…
as…
di…
Ad…
per
co…
sh…
Re…
ch…
and 0.12 0.21 0.63 0.…
ot…
it…
Tax
ef…
on
re… -0.… -0.… -0.… -0…
ch…
and
ot…
it…
Im…
of
ad… 0.10 0.08 0.22 0.…
tax
ra…
Ad…
net
in…
per
co… $ 2.42 $ 2.37 $ 7.78 $ 7.…
sh…
as…
di…
(n…
We…
av…
nu…
of
co… 75.9 78.0 76.4 78…
sh…
ou…
as…
di…
Our
ad…
tax
ra…
was
26…
for
bo…
the
th…
and
ni…
mo…
en…
Se…
30,
20…
and
26…
and
26…
for
the
th…
and
ni…
mo…
en…
Se…
27,
20…
re…
-UN…
Thr… Nine
Mon… Mon…
End… End…
Sep. Sep. Sep. Sep.
30, 27, 30, 27,
2026 2025 2026 2025
Re…
of
ad…
fr…
ca…
fl…
fr…
GA…
Net
ca…
pr… $ 298… $ 312… $ 843… $ 50…
by
op…
ac…
Pu…
of
pr… -47… -35… -11… -1…
pl…
and
eq…
Pu…
of
so…
and -6.6 -7.7 -20… -2…
ot…
de…
ch…
Pr…
fr…
sa…
of 1.2 4.5 1.9 20…
pr…
pl…
and
eq…
Pr…
fr…
in…
and
sa… 0.2 -4.3 6.0 4.5
(p…
of
in…
net
Ad…
fr…
ca… $ 246… $ 268… $ 715… $ 40…
fl…
(n…
-more-
A-6
AVERY DENNISON CORPORATION
PRELIMINARY SUPPLEMENTARY INFORMATION
(In millions, except %)
(UNAUDITED)
NET
SAL…
Thr… Sep. Sep. Nine Sep. Se…
Mon… 30, 27, Mon… 30, 27,
End… 2026 2025 End… 2026 20…
──────────────────────────────────────────────────────────────────────────────
Ma… $ 1,6… $ 1,5… $ 5,0… $ 4,…
Gr…
So… 687… 699… 2,0… 2,…
Gr…
To…
net $ 2,3… $ 2,2… $ 7,0… $ 6,…
sa…
RE…
OF
NO…
SU…
IN…
FR…
GA…
Thr… Nine
Mon… Mon…
End… End…
Sep. Sep. Sep. Se…
30, 27, 30, 27,
2026 2025 2026 20…
Ma…
Gr…
Op… $ 225… $ 216… $ 751… $ 69…
in…
Ad…
Re…
ch…
net
of
re…
Se…
and
re…
co… 4.8 2.7 13.6 7.7
net
of
re…
As…
im…
and --- 1.8 0.6 1.8
le…
ca…
ch…
Lo…
fr…
Ar… 0.5 1.9 1.8 4.4
pe…
re…
(G…
lo…
on
ve… 0.1 2.2 0.8 3.2
and
ot…
in…
(G…
lo…
on 0.4 --- 0.3 -1…
sa…
of
as…
Ou…
of
le… --- 3.0 0.2 3.0
ma…
and
se…
Tr…
and --- 2.0 0.1 2.0
re…
co…
Ad…
op… $ 231… $ 230… $ 769… $ 70…
in…
(n…
De…
and 37.8 34.8 115… 99…
am…
Ad…
EB… $ 268… $ 264… $ 884… $ 80…
(n…
Op… 13.7 % 14.3 % 14.8 % 15.2 %
ma…
Ad…
op… 14.1 % 15.2 % 15.1 % 15.5 %
ma…
(n…
Ad…
EB… 16.4 % 17.5 % 17.4 % 17.6 %
ma…
(n…
So…
Gr…
Op… $ 72.0 $ 68.2 $ 179… $ 18…
in…
Ad…
Re…
ch…
net
of
re…
Se…
and
re…
co… 3.2 4.8 24.9 11…
net
of
re…
As…
im…
and 0.3 0.4 3.4 0.7
le…
ca…
ch…
(G…
lo…
on
ve… -1.1 -3.5 0.7 6.6
and
ot…
in…
Ou…
of
le… --- 0.2 0.5 0.2
ma…
and
se…
(G…
lo…
on --- -0.4 --- -0…
sa…
of
as…
Ad…
op… $ 74.4 $ 69.7 $ 209… $ 20…
in…
(n…
De…
and 47.8 49.2 143… 14…
am…
Ad…
EB… $ 122… $ 118… $ 353… $ 34…
(n…
Op… 10.5 % 9.7 % 9.0 % 9.1 %
ma…
Ad…
op… 10.8 % 10.0 % 10.5 % 10.1 %
ma…
(n…
Ad…
EB… 17.8 % 17.0 % 17.6 % 17.1 %
ma…
(n…
-more-
A-7
AVERY DENNISON CORPORATION
PRELIMINARY SUPPLEMENTARY INFORMATION
(In millions, except ratios)
(UNAUDITED)
Recon…
of
adjus…
EBITDA
from
GAAP: QTD 4Q25 1Q26 2Q26 3Q26
──────────────────────────────────────────────────────────────────────────────
Net $ 166.4 $ 168.1 $ 204.1 $ 169.7
income
Other
expen… 40.4 17.8 21.1 9.6
(inco…
net
Inter… 37.2 35.6 35.9 35.7
expen…
Other
non-o…
expen… -3.9 -4.1 -5.1 -4.4
(inco…
net
Provi…
for 41.4 72.3 78.6 71.5
income
taxes
Depre…
and 85.5 86.8 86.4 85.6
amort…
Adjus…
EBITDA $ 367.0 $ 376.5 $ 421.0 $ 367.7
(non-…
Total $ 3,615.0
Debt
Less:
Cash
and 271.4
cash
equiv…
Net $ 3,343.6
Debt
Net
Debt
to
Adjus… 2.2
EBITDA
LTM*
(non-…
*LTM =
Last
twelve
months
(4Q25
throu…
3Q26)
-more-
A-8
AVERY DENNISON CORPORATION
PRELIMINARY SUPPLEMENTARY INFORMATION
(UNAUDITED)
Three Months
Ended
Sep. 30, 2026
──────────────────────────────────────────────────────────────────────────────
Total Materials Solutions
Company Group Group
Reconcilia…
of organic
sales
change
from GAAP:
Net sales 5.2% 8.5% (1.8)%
change
Reclassifi…
of sales --- (1.4)% 2.8%
between
segments
Foreign
currency (0.3)% (0.3)% (0.2)%
translation
Sales
change ex. 4.9% 6.7% 0.8%
currency
(non-GAAP)…
Acquisitio… (1.3)% (1.8)% ---
Organic
sales 3.7% 4.9% 0.8%
change
(non-GAAP)…
(1)Totals
may not sum
due to
rounding.
Nine Months
Ended
Sep. 30, 2026
Total Materials Solutions
Company Group Group
Reconcilia…
of organic
sales
change
from GAAP:
Net sales 7.7% 12.0% (1.7)%
change
Reclassifi…
of sales --- (1.5)% 3.2%
between
segments
Foreign
currency (2.3)% (3.2)% (0.7)%
translation
Sales
change ex. 5.4% 7.3% 0.8%
currency
(non-GAAP)…
Acquisitio… (1.2)% (1.8)% ---
Organic
sales 4.1% 5.5% 0.8%
change
(non-GAAP)…
(1)Totals
may not sum
due to
rounding.