Description
Avery Dennison: Strategic Partnerships With Retail Giants Are Driving a New Growth Flywheel!
Avery Dennison reported a solid performance for the year ending December 31, 2025, despite facing several macroeconomic challenges. The company achieved an adjusted EPS of $9.53 and generated $707 million in adjusted free cash flow, illustrating the resilience of its business model. However, ongoing trade policy changes and softer consumer sentiment impacted the business environment, influencing sales and growth trajectories across various segments. The Materials Group saw a reported sales increase of 5% but faced slight organic sales declines due to deflation-related price adjustments. The segment experienced mixed results with high-value categories, which now form 38% of its portfolio, witnessing growth, particularly in Intelligent Labels and Performance Materials. However, base categories faced low single-digit declines, attributed to softer customer volumes. The adjusted EBITDA margin for this group fell by 40 basis points year-over-year due to higher employee-related costs, although productivity initiatives partially offset this impact.
