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Avery Dennison (NYSE: AVY) posts Q1 2026 EPS $2.18, guides higher adjusted EPS for Q2

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Avery Dennison reported preliminary first quarter 2026 results showing modest top-line growth and higher earnings. Net sales were $2.30 billion, up 7.0% year over year and 1.1% higher on an organic basis. Reported EPS was $2.18, while adjusted EPS rose to $2.47, up 7.4%.

The Materials Group delivered reported sales of $1.65 billion, up 11.4% with organic growth of 1.9% and a 15.4% adjusted operating margin. Solutions Group sales were $649 million, down 2.8% with organic decline of 0.9% and margin compression to a 9.0% adjusted operating margin. Adjusted EBITDA margin for the company held at 16.4%.

Cash generation improved significantly, with adjusted free cash flow of $104.4 million versus a prior-year outflow. The company returned $133 million through dividends and share repurchases and ended the quarter with a net debt to adjusted EBITDA ratio of 2.4x. For second quarter 2026, Avery Dennison guides to reported EPS of $2.21–$2.31 and adjusted EPS of $2.43–$2.53, implying continued year-over-year earnings growth.

Positive

  • None.

Negative

  • None.

Insights

Q1 2026 shows steady earnings growth, solid cash flow, and stable leverage.

Avery Dennison delivered Q1 net sales of $2.30 billion, up 7.0%, with organic growth of 1.1%. Adjusted EPS increased 7.4% to $2.47, while adjusted EBITDA margin held at 16.4%, indicating broadly stable profitability despite mixed segment trends.

The Materials Group continues to drive performance, with sales up 11.4% and organic growth of 1.9%, aided by volume/mix and productivity, offset partly by price deflation and higher employee costs. The Solutions Group saw a 2.8% sales decline and margin pressure, reflecting softer base categories and higher investments, even as high-value offerings like Embelex and Vestcom grew.

Free cash flow strengthened meaningfully: adjusted free cash flow reached $104.4 million versus a prior-year use of cash, supporting $133 million returned to shareholders and leaving net debt to adjusted EBITDA at 2.4x. Q2 2026 adjusted EPS guidance of $2.43–$2.53 and expected organic sales growth of 0–2% suggest management anticipates continued earnings progress, while acknowledging a headwind from assumed destocking of March pre-buy.

Item 0.23 Item 0.23
Item 0.25 Item 0.25
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Item 17.8 Item 17.8
Item 19.9 Item 19.9
Net sales $2,298.5 million Q1 2026, up 7.0% year over year
Organic sales growth 1.1% Q1 2026 total company organic sales change
Adjusted EPS $2.47 Q1 2026, up 7.4% from $2.30 in Q1 2025
Net income $168.1 million Q1 2026, up 1.1% year over year
Adjusted EBITDA margin 16.4% Q1 2026, unchanged from Q1 2025
Adjusted free cash flow $104.4 million Q1 2026, versus -$53.1 million in Q1 2025
Capital returned to shareholders $133 million Q1 2026 dividends and share repurchases combined
Net debt to adjusted EBITDA 2.4x Leverage ratio at end of Q1 2026
organic sales change financial
"Sales on an organic basis (non-GAAP) up 1.1%"
Organic sales change measures how a company’s revenue grows or shrinks from its ongoing operations after removing effects from things like buying or selling businesses and swings in currency value. It tells investors whether the core business is gaining or losing customers and market share — like judging a garden’s growth by the plants you tended yourself, not by adding new pots or blaming the weather — which helps separate real performance from one-time or external factors.
adjusted EBITDA financial
"Adjusted EBITDA (non-GAAP) | $ | 376.5 | | $ | 352.4"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
adjusted free cash flow financial
"Adjusted free cash flow (non-GAAP) | $ | 104.4 | | $ | (53.1)"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
net debt to adjusted EBITDA financial
"Net Debt to Adjusted EBITDA LTM* (non-GAAP) | | | | 2.4"
Net debt to adjusted EBITDA is a leverage ratio that compares a company’s net debt (total interest-bearing debt minus cash) to its recurring operating earnings after removing one-off items. Think of it like how many years of steady take-home pay the business would need to pay off its outstanding debt; investors use it to gauge debt burden, financial risk and relative creditworthiness, with lower ratios generally indicating a safer balance sheet.
Intelligent Labels financial
"Intelligent Labels down low-single digits"
Net sales $2,298.5 million +7.0% YoY
Net income $168.1 million +1.1% YoY
Adjusted EPS $2.47 +7.4% YoY
Organic sales change 1.1% total company organic growth
Guidance

For Q2 2026, reported EPS is expected at $2.21–$2.31 and adjusted EPS at $2.43–$2.53, with projected reported sales growth of 2–4% and organic sales growth of 0–2%.

Understanding 8-K Material Events →
0000008818FALSE00000088182026-04-282026-04-280000008818us-gaap:CommonStockMember2026-04-282026-04-280000008818avy:SeniorNotesDue2034Member2026-04-282026-04-280000008818avy:SeniorNotesDue2035Member2026-04-282026-04-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 28, 2026
Date of Report (Date of earliest event reported)
AVERY DENNISON CORPORATION
 
(Exact name of registrant as specified in its charter)
 
Delaware
 
 
1-7685
 
 
95-1492269
 
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
8080 Norton Parkway            
Mentor, Ohio
44060
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code (440) 534-6000
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, $1 par value AVY New York Stock Exchange
3.750% Senior Notes due 2034 AVY34 Nasdaq Stock Market
4.000% Senior Notes due 2035AVY35Nasdaq Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Section 2 — Corporate Governance and Management

Item 2.02 Results of Operations and Financial Condition.

Avery Dennison Corporation’s (the “Company’s”) press release, dated April 28, 2026, announcing the Company’s preliminary, unaudited financial results for first quarter 2026 and its guidance for second quarter 2026, is attached hereto as Exhibit 99.1 and being furnished (not filed) with this Form 8-K. The Company’s supplemental presentation materials, dated April 28, 2026, regarding its preliminary, unaudited financial review and analysis for first quarter 2026 and its guidance for second quarter 2026, is attached hereto as Exhibit 99.2 and being furnished (not filed) with this Form 8-K. The press release and presentation materials are also available on the Company's website at www.investors.averydennison.com.

The Company will discuss its preliminary, unaudited financial results during a webcast and teleconference to be held on April 28, 2026, at 11:00 a.m. ET. To access the webcast and teleconference, please go to the Company’s website at www.investors.averydennison.com.
 

Section 9 — Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.

Exhibit
Number		Exhibit Title
99.1
Press release, dated April 28, 2026, announcing the Company’s preliminary, unaudited financial results for first quarter 2026.
99.2
Supplemental presentation materials, dated April 28, 2026, regarding the Company’s preliminary, unaudited financial review and analysis for first quarter 2026.
104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this Form 8-K and the exhibits attached hereto 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.

The Company believes that the most significant risk factors that could affect its financial performance in the near term include: (i) the impact on underlying demand for the Company’s 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, the Russia-Ukraine war, the Israel-Hamas war and related hostilities in the Middle East; fluctuations in foreign currency exchange rates; and other risks associated with international operations, including in emerging markets
•The Company’s Business – fluctuations in demand affecting sales to customers; fluctuations in the cost and availability of raw materials and energy; changes in the Company’s 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
•The Company’s Indebtedness – the Company’s ability to obtain adequate financing arrangements and maintain access to capital; credit rating risks; fluctuations in interest rates; and compliance with the Company’s debt covenants
•Ownership of the Company’s Stock – potential significant variability of the Company’s stock price and amounts of future dividends and share repurchases
•Legal and Regulatory Matters – protection and infringement of the Company’s intellectual property; the impact of legal and regulatory proceedings, including with respect to compliance and 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 Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 2025 Form 10-K, filed with the Securities and Exchange Commission on February 25, 2026. The forward-looking statements included in this Form 8-K are made only as of the date of this Form 8-K, and the Company undertakes no obligation to update these statements to reflect subsequent events or circumstances, other than as may be required by law.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 AVERY DENNISON CORPORATION
Date: April 28, 2026
By: /s/ Gregory S. Lovins
 
Name: Gregory S. Lovins
Title:   Senior Vice President and
 Chief Financial Officer


Exhibit 99.1
image_0.jpg
For Immediate Release

AVERY DENNISON ANNOUNCES
FIRST QUARTER 2026 RESULTS
Delivered strong earnings growth and free cash flow in dynamic quarter
●1Q26 Reported EPS of $2.18
○Adjusted EPS (non-GAAP) of $2.47, up 7.4%
●1Q26 Net sales of $2.3 billion, up 7.0%
○Sales change ex. currency (non-GAAP) up 2.3%
○Sales on an organic basis (non-GAAP) up 1.1%
●2Q26 Reported EPS guidance of $2.21 to $2.31
○2Q26 Adjusted EPS guidance of $2.43 to $2.53

MENTOR, Ohio, April 28, 2026 – Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced preliminary, unaudited results for its first quarter ended March 31, 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 strong first quarter results, with adjusted EPS of $2.47, once again reflecting the strength and resilience of our overall portfolio to deliver growth in a dynamic environment,” said Deon Stander, president and CEO.
“We are executing a clear strategy to drive earnings growth. This is underpinned by our proven playbook focused on innovation, commercial excellence, and service-led differentiation to gain share with rigorous productivity, procurement, and cost management. This playbook allows us to deliver value for our customers, while offsetting inflationary pressures and maintaining supply continuity.
“I want to again extend my gratitude to our entire team. Our success reflects our team's agility and their dedication ensures that we continue to execute our strategic priorities and deliver results in 2026 and beyond.”


First Quarter 2026 Results by Segment
Materials Group
●Reported sales increased 11.4% to $1.6 billion. Sales were up 3.6% ex. currency.
●Sales up 1.9% on an organic basis
○Mid-single digit volume/mix growth partially offset by deflation-related price reductions
○Base categories up mid-single digits; high-value categories down low-single digits
○Graphics and Reflectives down mid-single digits; Performance Materials down low-single digits
●Reported operating margin of 14.9%
○Adjusted operating margin (non-GAAP) of 15.4%, down 20 basis points
○Adjusted EBITDA margin (non-GAAP) of 17.8%, up 10 basis points, as productivity and the net benefit of pricing and raw material costs, including raw material re-engineering, were partially offset by mix and higher employee-related costs
Solutions Group
●Reported sales decreased 2.8% to $649 million. Sales were down 0.9% ex. currency.
●Sales down 0.9% on an organic basis
○Sales in high-value categories up low-single digits
●Embelex and Vestcom up mid-single digits
●Intelligent Labels down low-single digits
○Sales in base categories down mid-single digits
○Overall apparel categories comparable to prior year
●Reported operating margin of 7.5%
○Adjusted operating margin of 9.0%, down 120 basis points
○Adjusted EBITDA margin of 16.4%, down 80 basis points, as productivity and the net benefit of pricing and raw material costs were more than offset by higher employee-related costs and investments
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 quarter of 2026, the company returned $133 million in cash to shareholders through a combination of dividends and share repurchases. The company repurchased 0.3 million shares, with payments for share purchases totaling $61 million. Net of dilution from long-term incentive awards,


the company’s share count at the end of the 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 2.4x at the end of the first quarter.
Income Taxes
The company’s reported effective tax rate was 30.1% in the first quarter. The adjusted tax rate (non-GAAP) for the quarter was 26.2%.
Cost Reduction Actions
In the first quarter, the company realized approximately $17 million in pre-tax savings from restructuring actions and incurred approximately $16 million in pre-tax restructuring charges.
Guidance
In its supplemental presentation materials, “First 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 second quarter 2026 reported earnings per share of $2.21 to $2.31.
Excluding an estimated ~$0.22 per share impact of other items and restructuring charges, the company expects second quarter 2026 adjusted earnings per share of $2.43 to $2.53.
For more details on the company’s results, see the summary tables accompanying this news release, as well as the supplemental presentation materials, “First 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, the Russia-Ukraine war, the Israel-Hamas war and related hostilities in the Middle East; 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; the impact of legal and regulatory proceedings, including with respect to compliance and 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.

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




First Quarter Financial Summary - Preliminary, unaudited
(in millions, except % and per share amounts)
1Q1Q
% Net Sales Change vs. PY
20262025
GAAP
Ex. CurrencyOrganic
Net sales, by segment:
Materials Group$1,649.3 $1,480.1 11.4%3.6%1.9%
Solutions Group649.2668.2(2.8)%(0.9)%(0.9)%
Total net sales$2,298.5 $2,148.3 7.0%2.3%1.1%
% of Net Sales
1Q1Q%1Q1Q
20262025 Change20262025
Segment adjusted operating income and margins:
Materials Group$254.2 $230.3 15.4%15.6%
Solutions Group58.568.29.0%10.2%
Corporate expense(23.0)(24.0)
Adjusted operating income and margins (non-GAAP)$289.7 $274.5 5.5%12.6%12.8%
Segment adjusted EBITDA and margins:
Materials Group$292.9 $261.8 17.8%17.7%
Solutions Group106.6114.616.4%17.2%
Corporate expense(23.0)(24.0)
Adjusted EBITDA and margins (non-GAAP)$376.5 $352.4 6.8%16.4%16.4%
Net income$168.1 $166.3 1.1%7.3%7.7%
Adjusted net income (non-GAAP)$190.5 $182.6 4.3%8.3%8.5%
Net income per common share, assuming dilution $2.18 $2.09 4.3%
Adjusted net income per common share, assuming dilution (non-GAAP)$2.47 $2.30 7.4%
Adjusted free cash flow (non-GAAP)$104.4 $(53.1)
See accompanying schedules A-4 to A-8 for reconciliations of non-GAAP financial measures from GAAP.
Our 2026 fiscal year is coincident with the calendar year, beginning on January 1 and ending on December 31; our 2025 fiscal year began on December 29, 2024 and ended on December 31, 2025. The three months ended March 31, 2026 and March 29, 2025 consisted of 90 and 91 days, respectively.

A-1

AVERY DENNISON CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)

(UNAUDITED)
Three Months Ended(1)
Mar. 31, 2026Mar. 29, 2025
Net sales$2,298.5 $2,148.3 
Cost of products sold1,633.7 1,526.8 
Gross profit664.8 621.5 
Marketing, general and administrative expense375.1 347.0 
Other expense (income), net17.8 19.9 
Interest expense35.6 30.9 
Other non-operating expense (income), net(4.1)(3.3)
Income before taxes240.4 227.0 
Provision for income taxes72.3 60.7 
Net income $168.1 $166.3 
Per share amounts:
Net income per common share, assuming dilution$2.18 $2.09 
Weighted average number of common shares
    outstanding, assuming dilution
77.079.4
(1) Our 2026 fiscal year is coincident with the calendar year, beginning on January 1 and ending on December 31; our 2025 fiscal year began on December 29, 2024 and ended on December 31, 2025. The three months ended March 31, 2026 and March 29, 2025 consisted of 90 and 91 days, respectively.
-more-
A-2

AVERY DENNISON CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)

(UNAUDITED)
ASSETSMar. 31, 2026Mar. 29, 2025
Current assets:
Cash and cash equivalents$255.1 $195.9 
Trade accounts receivable, net1,647.1 1,518.0 
Inventories989.4 1,017.5 
Other current assets327.9 299.0 
Total current assets3,219.5 3,030.4 
Property, plant and equipment, net1,573.5 1,583.0 
Goodwill and other intangibles resulting from business acquisitions, net3,064.2 2,726.1 
Deferred tax assets142.4 119.0 
Other assets979.0 896.2 
Total assets$8,978.6 $8,354.7 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt and finance leases$605.0 $877.5 
Accounts payable1,329.5 1,272.6 
Other current liabilities865.2 802.7 
Total current liabilities2,799.7 2,952.8 
Long-term debt and finance leases3,185.1 2,581.6 
Other long-term liabilities693.3 649.8 
Shareholders' equity:
Common stock124.1 124.1 
Capital in excess of par value817.6 817.7 
Retained earnings5,709.4 5,276.5 
Treasury stock at cost(3,957.6)(3,598.6)
Accumulated other comprehensive loss(393.0)(449.2)
Total shareholders' equity2,300.5 2,170.5 
Total liabilities and shareholders' equity$8,978.6 $8,354.7 
-more-
A-3

AVERY DENNISON CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(UNAUDITED)
Three Months Ended
Mar. 31, 2026Mar. 29, 2025
Operating Activities
Net income $168.1 $166.3 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation53.3 48.8 
Amortization33.5 29.1 
Provision for credit losses and sales returns11.6 11.9 
Stock-based compensation5.8 7.9 
Deferred taxes and other non-cash taxes(21.1)(14.8)
Other non-cash expense and loss (income and gain), net14.2 20.5 
Changes in assets and liabilities and other adjustments
(128.9)(286.0)
Net cash provided by (used in) operating activities136.5 (16.3)
Investing Activities
Purchases of property, plant and equipment(28.3)(36.0)
Purchases of software and other deferred charges(7.7)(7.6)
Proceeds from sales of property, plant and equipment0.7  ---
Proceeds from insurance and sales (purchases) of investments, net3.2 6.8 
Proceeds from settlement of net investment hedges --- 6.2 
Payments for acquisitions, net of cash acquired, and venture investments(0.5)(2.6)
Net cash used in investing activities(32.6)(33.2)
Financing Activities
Net increase (decrease) in borrowings with maturities of three months or less93.2 796.5 
Repayments of long-term debt and finance leases(1.7)(525.0)
Dividends paid(72.3)(69.4)
Share repurchases(60.6)(261.6)
Net (tax withholding) proceeds related to stock-based compensation(9.2)(11.9)
Payments for settlement of fair value hedges --- (13.5)
Net cash used in financing activities(50.6)(84.9)
Effect of foreign currency translation on cash balances(1.0)1.2 
Increase (decrease) in cash and cash equivalents52.3 (133.2)
Cash and cash equivalents, beginning of year202.8 329.1 
Cash and cash equivalents, end of period$255.1 $195.9 
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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.
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A-5

AVERY DENNISON CORPORATION
PRELIMINARY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FROM GAAP
(In millions, except % and per share amounts)

(UNAUDITED)
Three Months Ended
Mar. 31, 2026Mar. 29, 2025
Reconciliation of adjusted operating and EBITDA margins from GAAP:
Net sales$2,298.5$2,148.3
Income before taxes$240.4$227.0
Income before taxes as a percentage of net sales10.5 %10.6 %
Adjustments:
Interest expense$35.6$30.9
Other non-operating expense (income), net(4.1)(3.3)
Operating income before interest expense, other non-operating expense (income) and taxes
$271.9$254.6
Operating margins11.8 %11.9 %
Net income$168.1$166.3
Adjustments:
Restructuring charges, net of reversals:
Severance and related costs, net of reversals14.54.7
Asset impairment and lease cancellation charges1.30.2
(Gain) loss on venture and other investments1.314.3
Loss from Argentine peso remeasurement0.50.7
Other items, net(1)
0.2---
Interest expense35.630.9
Other non-operating expense (income), net(2)
(4.1)(3.3)
Provision for income taxes72.360.7
Adjusted operating income (non-GAAP)$289.7$274.5
Adjusted operating margins (non-GAAP)12.6 %12.8 %
Depreciation and amortization$86.8$77.9
Adjusted EBITDA (non-GAAP)$376.5$352.4
Adjusted EBITDA margins (non-GAAP)16.4 %16.4 %
Reconciliation of adjusted net income from GAAP:
Net income$168.1$166.3
Adjustments:
Restructuring charges and other items17.819.9
Argentine interest income(0.1)(0.1)
Tax effect on restructuring charges and other items, and impact of adjusted tax rate(3)
4.7(3.5)
Adjusted net income (non-GAAP)$190.5$182.6
(1) Included outcomes of legal matters and settlements and transaction and related costs, net of (gain) loss on sales of assets.
(2) Included Argentine interest income of $.1 for both the three months ended March 31, 2026 and March 29, 2025.
(3) Included net tax expense of approximately $6.0 related to the impact of certain tax law changes in a foreign jurisdiction for the three months ended March 31, 2026.             

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A-5
(continued)
AVERY DENNISON CORPORATION
PRELIMINARY RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FROM GAAP
(In millions, except % and per share amounts)

(UNAUDITED)
Three Months Ended
Mar. 31, 2026Mar. 29, 2025
Reconciliation of adjusted net income per common share from GAAP:
Net income per common share, assuming dilution$2.18 $2.09 
Adjustments per common share:
Restructuring charges and other items0.23 0.25 
Tax effect on restructuring charges and other items, and impact of adjusted tax rate0.06 (0.04)
Adjusted net income per common share, assuming dilution (non-GAAP)$2.47 $2.30 
Weighted average number of common shares outstanding, assuming dilution77.0 79.4 
Our adjusted tax rate was 26.2% and 26.0% for the three months ended March 31, 2026 and March 29, 2025, respectively.
(UNAUDITED)
Three Months Ended
Mar. 31, 2026Mar. 29, 2025
Reconciliation of adjusted free cash flow from GAAP:
Net cash provided by (used in) operating activities$136.5 $(16.3)
Purchases of property, plant and equipment(28.3)(36.0)
Purchases of software and other deferred charges(7.7)(7.6)
Proceeds from sales of property, plant and equipment0.7 ---
Proceeds from insurance and sales (purchases) of investments, net3.2 6.8 
Adjusted free cash flow (non-GAAP)$104.4 $(53.1)
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A-6
AVERY DENNISON CORPORATION
PRELIMINARY SUPPLEMENTARY INFORMATION
(In millions, except %)
(UNAUDITED)

NET SALES
Three Months Ended
Mar. 31, 2026Mar. 29, 2025
Materials Group$1,649.3$1,480.1
Solutions Group649.2668.2
Total net sales$2,298.5$2,148.3
RECONCILIATION OF NON-GAAP SUPPLEMENTARY INFORMATION FROM GAAP
Three Months Ended
Mar. 31, 2026Mar. 29, 2025
Materials Group
Operating income$246.5$225.9
Adjustments:
   Restructuring charges, net of reversals:
      Severance and related costs, net of reversals6.02.5
      Asset impairment and lease cancellation charges0.6 ---
Loss from Argentine peso remeasurement0.50.7
(Gain) loss on venture and other investments0.41.2
Other items, net(1)
0.2 ---
Adjusted operating income (non-GAAP)$254.2$230.3
    Depreciation and amortization38.731.5
Adjusted EBITDA (non-GAAP)$292.9$261.8
Operating margins14.9 %15.3 %
Adjusted operating margins (non-GAAP)15.4 %15.6 %
Adjusted EBITDA margins (non-GAAP)17.8 %17.7 %
Solutions Group
Operating income$48.6$58.1
   Restructuring charges, net of reversals:
      Severance and related costs, net of reversals8.31.8
      Asset impairment and lease cancellation charges0.70.2
(Gain) loss on venture and other investments0.98.1
Adjusted operating income (non-GAAP)$58.5$68.2
   Depreciation and amortization48.146.4
Adjusted EBITDA (non-GAAP)$106.6$114.6
Operating margins7.5 %8.7 %
Adjusted operating margins (non-GAAP)9.0 %10.2 %
Adjusted EBITDA margins (non-GAAP)16.4 %17.2 %
(1) Included outcomes of legal matters and settlements and transaction and related costs, net of (gain) loss on sales of assets.
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A-7
AVERY DENNISON CORPORATION
PRELIMINARY SUPPLEMENTARY INFORMATION
(In millions, except ratios)
(UNAUDITED)

QTD
2Q253Q254Q251Q26
Reconciliation of adjusted EBITDA from GAAP:
Net income$189.0 $166.3 $166.4 $168.1 
Other expense (income), net0.5 16.7 40.4 17.8 
Interest expense34.0 33.3 37.2 35.6 
Other non-operating expense (income), net(3.3)(3.7)(3.9)(4.1)
Provision for income taxes66.5 68.5 41.4 72.3 
Depreciation and amortization80.8 84.0 85.5 86.8 
Adjusted EBITDA (non-GAAP)$367.5 $365.1 $367.0 $376.5 
Total Debt$3,790.1 
Less: Cash and cash equivalents255.1 
Net Debt$3,535.0 
Net Debt to Adjusted EBITDA LTM* (non-GAAP)2.4 
*LTM = Last twelve months (2Q25 through 1Q26)
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A-8
AVERY DENNISON CORPORATION
PRELIMINARY SUPPLEMENTARY INFORMATION
(UNAUDITED)

Three Months Ended
Mar. 31, 2026
Total
Company
Materials
Group
 Solutions
Group
Reconciliation of organic sales change from GAAP:
Net sales change7.0%11.4%(2.8)%
Reclassification of sales between segments---(1.4)%3.1%
Foreign currency translation(4.7)%(6.5)%(1.1)%
Sales change ex. currency (non-GAAP)(1)
2.3%3.6%(0.9)%
Acquisitions (1.2)%(1.6)%---
Organic sales change (non-GAAP)(1)
1.1%1.9%(0.9)%
(1) Totals may not sum due to rounding.

1April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret First Quarter 2026 Financial Review and Analysis (preliminary, unaudited) April 28, 2026 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year.

 

2April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret 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, the Russia-Ukraine war, the Israel-Hamas war and related hostilities in the Middle East; 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; the impact of legal and regulatory proceedings, including with respect to compliance and 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. 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. Safe Harbor Statement

 

3April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures as defined by SEC rules. 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. In accordance with Regulations G and S-K, reconciliations of non-GAAP financial measures from the most directly comparable GAAP financial measures, including limitations associated with these non-GAAP financial measures, are provided in the appendix to this document and/or the financial schedules accompanying the earnings news release for the quarter (see Attachments A-4 through A-8 to news release dated April 28, 2026). 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 this presentation. • 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. We believe that the following measures assist investors in understanding our core operating trends and comparing our results with those of our competitors. • 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. • 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. • Adjusted free cash flow conversion refers to adjusted free cash flow divided by net income. This document has been furnished (not filed) on Form 8-K with the SEC and may be found on our website at www.investors.averydennison.com.

 

4April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Delivered strong earnings growth and cash flow in dynamic quarter Note: LSD/MSD/HSD = low, mid or high single digit % Strong Q1 Results Adj. EPS (non-GAAP) of $2.47, above midpoint of guidance and up 7% ● Delivered organic growth of 1%, driven by strong volume ● Adj. EBITDA margin (non-GAAP) of 16.4%, comparable to prior year Strength & Durability of Franchise ● Base categories organic sales up LSD with strong growth in base labels partially offset by softer apparel ● High-value categories (HVC) organic sales roughly flat; Solutions up LSD offset by Materials down LSD ● Continuing to deliver strong cost management and productivity ● Well-positioned to manage through continued uncertain environment Q2 2026 Outlook Expected Adj. EPS of $2.43 to $2.53 ● Leveraging proven playbook to mitigate inflationary pressures ● Includes headwind sequentially from assumed destocking of March pre-buy Disciplined Capital Allocation ● Generated strong adj. free cash flow (non-GAAP) of $104 mil. ● Returned $133 mil. to shareholders through $72 mil. dividends and $61 mil. of share repurchases ● Expanding leadership in Intelligent Labels through increased investment in Wiliot

 

5April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Reported EPS of $2.18 Adj. EPS of $2.47, up 7% Net sales of $2.3 bil. Sales change ex. currency (non-GAAP) up 2.3% Sales on an organic basis (non-GAAP) up 1.1% First quarter 2026 financial review Reported operating income of $272 mil. ● Adj. EBITDA margin of 16.4%, comparable to prior year ● Adj. operating margin (non-GAAP) of 12.6%, down 20 bps Strong adj. FCF of $104 mil. Returned $133 mil. to shareholders through share repurchases and dividends Maintained strong balance sheet; continuing to deploy capital in disciplined manner ● Net debt to adj. EBITDA ratio (non-GAAP) of 2.4

 

6April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Materials Group Reported sales increased 11.4% to $1.6 bil. Sales up 1.9% organically ● MSD volume/mix growth partially offset by deflation-related price reductions ● Base categories up MSD and high-value categories down LSD ● Graphics and Reflectives down MSD; Performance Materials down LSD Reported operating margin of 14.9% ● Adj. operating margin of 15.4%, down 20 bps ● Adj. EBITDA margin of 17.8%, up 10 bps ○ Productivity and net benefit of pricing and raw material costs, including raw material re-engineering, were partially offset by mix and higher employee-related costs Emerging Markets 39% Es t. En d M ar ke t Pr od uc t C at eg or y First Quarter 2026 Results 2025 Sales by Product Label Materials Graphics & Reflectives Performance Materials Other High-value Categories 38% 2025 Sales by Geography U.S. & Canada Western Europe E. Europe & MENA Asia Pacific Latin America

 

7April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Solutions Group Reported sales decreased 2.8% to $649 mil. Sales down 0.9% organically ● High-value categories up LSD ○ Embelex and Vestcom up MSD; Intelligent labels down LSD ● Base categories down MSD ● Overall apparel categories comparable to PY Reported operating margin of 7.5% ● Adj. operating margin of 9.0%, down 120 bps ● Adj. EBITDA margin of 16.4%, down 80 bps ○ Productivity and net benefit of pricing and raw material costs were more than offset by higher employee-related costs and investments 2025 Sales by Product Base Solutions Intelligent Labels Vestcom Embelex 2025 Sales by Geography U.S. & Canada Europe Asia Pacific Latin America High-value Categories 60% First Quarter 2026 Results Es t. En d M ar ke t Pr od uc t C at eg or y

 

8April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Enterprise-wide Intelligent Labels Apparel General Retail $0.9B 2025 Sales by category Food & Logistics All Other Overall Results: ● Q1 sales down LSD on organic basis ○ Apparel and general retail up LSD on apparel program expansions ○ Food and logistics down LDD on soft logistics customer demand ● Increased investment in Wiliot to expand intelligent labels adoption Key End Segment Insights for 2026: ● Apparel and general retail: Continued macro uncertainty still impacting business; expect growth in 2026 ● Food: Continue to anticipate largest U.S. grocery retailer rollout in bakery, meat and deli will be heavily weighted to 2H ● Logistics: Lapping outsized growth and share in 2025; expanding pilots with additional customers in 2026 Note: LDD = low-double digit %

 

9April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Low High Reported EPS $2.21 $2.31 Est. other items & restructuring costs ~$0.22 ~$0.22 Adjusted EPS $2.43 $2.53 Q2 2026 EPS Guidance In Q2 2026, anticipate adj. EPS of $2.43-$2.53 ● Reported sales growth of 2-4% and organic sales growth of 0-2% ○ ~1% tailwind from currency translation at recent rates and ~1% impact from acquisition ● Includes headwind from assumed destocking of March pre-buy Additional full-year considerations ● ~$0.25 net EPS tailwind from benefits of currency translation and lower share count, partially offset by higher adjusted tax rate and interest expense ● Incremental savings of >$55 mil. from restructuring actions (previously ~$50 mil.) ● Majority of 2025 temporary savings, including incentive compensation, expected to be headwind ● Targeting ~100% adj. FCF conversion; fixed and IT capital spend of ~$260 mil. ● Assuming current economic conditions, anticipate sequential earnings growth through the year, with historical earnings seasonality (excluding destocking impacts)

 

Classification: Avery Dennison - Secret 10September 18, 2024 Avery Dennison 2024 Investor Day Appendix Summary Information & Reconciliation of Non-GAAP Financial Measures from GAAP

 

11April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Source: S&P Global Market Intelligence Source: University of Michigan Source: U.S. Census Bureau 2010-2019 Avg. 2.10 U.S. Consumer Sentiment U.S. Apparel Inventory-to-Sales Ratio Economic Conditions Dashboard 2019 2020 2021 2022 2023 2024 2025 2026 Change in FY’26 Forecast (Apr vs. Jan forecast) Global Avg PE WTI Price Global Avg. PE price & WTI Price Source: S&P Global Market Intelligence, IHS Apr +33% vs Feb Apr +40% vs Feb

 

12April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret First quarter 2026 sales change Total Company Materials Group Solutions Group Net sales change 7.0% 11.4% (2.8)% Reclass. of sales between segments - (1.4)% 3.1% Foreign currency translation (4.7)% (6.5)% (1.1)% Sales change ex. currency 2.3% 3.6% (0.9)% Acquisitions (1.2)% (1.6)% - Organic sales change 1.1% 1.9% (0.9)% (1) Totals may not sum due to rounding (1) (1)

 

13April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Quarterly sales trend analysis 1Q25 2Q25 3Q25 4Q25 1Q26 Net sales change (0.1)% (0.7)% 1.5% 3.9% 7.0% Foreign currency translation 2.5% (0.3)% (1.7)% (1.7)% (4.7)% Impact of extra days - - - (1.5)% - Sales change ex. currency 2.3% (1.0)% (0.2)% 0.6% 2.3% Acquisitions - - - (0.8)% (1.2)% Organic sales change 2.3% (1.0)% (0.2)% (0.2)% 1.1% Materials Group organic sales change 1.2% (1.0)% (1.9)% (0.9)% 1.9% Solutions Group organic sales change 4.9% (0.8)% 3.6% 1.3% (0.9)% (1) Totals may not sum due to rounding (1) (1)

 

14April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret First quarter 2026 margin comparisons Reported Operating Margin Adjusted Operating Margin Adjusted EBITDA Margin 1Q26 1Q25 1Q26 1Q25 1Q26 1Q25 Materials Group 14.9% 15.3% 15.4% 15.6% 17.8% 17.7% Solutions Group 7.5% 8.7% 9.0% 10.2% 16.4% 17.2% Total Company 11.8% 11.9% 12.6% 12.8% 16.4% 16.4%

 

15April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret Est. 2025 Sales by End Market Industrial/ Durable Apparel Broad exposure to diverse markets across portfolio 60%+ Staples Non- durable Goods Logistics $8.9B 2025 Sales by Manufacturing Location U.S. & Canada Western Europe China Other Asia-Pac Latin Am. EE M EN A

 

16April 28, 2026 Preliminary & unaudited, Q1 2026 financial review and analysis Classification: Avery Dennison - Secret © 2026 Avery Dennison Corporation. All rights reserved. The “Making Possible” tagline, Avery Dennison and all other Avery Dennison brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademarks of their respective owners. Fortune 500® is a trademark of Time, Inc. Branding and other information on any samples depicted are fictitious. Any resemblance to actual names is purely coincidental. averydennison.com #MakingPossible

 

Source: View Original Filing on SEC EDGAR

FAQ

How did Avery Dennison (AVY) perform in Q1 2026?

Avery Dennison reported Q1 2026 net sales of $2.30 billion, up 7.0% year over year, with 1.1% organic growth. Reported EPS was $2.18, and adjusted EPS rose to $2.47, an increase of 7.4% versus the prior-year quarter.

What were Avery Dennison’s Q1 2026 segment results for Materials Group and Solutions Group?

The Materials Group generated $1.65 billion in sales, up 11.4% (1.9% organic), with a 15.4% adjusted operating margin. The Solutions Group posted $649 million in sales, down 2.8% (0.9% organic decline), and a 9.0% adjusted operating margin, reflecting higher employee-related costs and investments.

What earnings guidance did Avery Dennison (AVY) give for Q2 2026?

For Q2 2026, Avery Dennison expects reported EPS of $2.21–$2.31 and adjusted EPS of $2.43–$2.53. The company anticipates reported sales growth of 2–4% and organic sales growth of 0–2%, including a headwind from assumed destocking of March pre-buy.

How strong was Avery Dennison’s cash flow and capital returns in Q1 2026?

Adjusted free cash flow in Q1 2026 was $104.4 million, a significant improvement from a prior-year outflow. Avery Dennison returned $133 million to shareholders during the quarter, including $72 million in dividends and $61 million in share repurchases.

What is Avery Dennison’s leverage position after Q1 2026?

At the end of Q1 2026, Avery Dennison reported a net debt to adjusted EBITDA ratio of 2.4x. Total debt, including finance leases, was offset by $255.1 million of cash and cash equivalents, supporting ongoing dividends, buybacks, and disciplined capital deployment.

How did Avery Dennison’s net income and margins trend in Q1 2026?

Net income was $168.1 million, up 1.1% from the prior year. Adjusted operating income reached $289.7 million, with an adjusted operating margin of 12.6% versus 12.8% last year, while adjusted EBITDA margin remained stable at 16.4%.

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