AVY Avery Dennison Corp

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Executive Summary

Avery Dennison reported Q1 2026 adjusted EPS of $2.47, up 7.4% YoY and above the midpoint of guidance, on reported sales growth of 7.0% to $2.30B. Organic sales grew 1.1%, driven by mid-single-digit volume/mix growth in the Materials Group, partially offset by a 0.9% organic decline in Solutions Group. The company guided Q2 2026 adjusted EPS of $2.43-$2.53, implying a sequential decline from Q1, citing a headwind from assumed destocking of March pre-buy.

Key Financial Metrics

Actionable Insight

Key Facts

• Q1 2026 adjusted EPS of $2.47, up 7.4% YoY from $2.30
• Q1 2026 reported EPS of $2.18, up 4.3% YoY from $2.09
• Q1 2026 net sales of $2.30B, up 7.0% YoY; organic sales up 1.1%
• Materials Group organic sales up 1.9%; Solutions Group organic sales down 0.9%
• Q2 2026 adjusted EPS guidance of $2.43-$2.53 (midpoint $2.48), below Q1 actual of $2.47
• Q2 guidance includes headwind from assumed destocking of March pre-buy
• Generated adjusted free cash flow of $104.4M vs. -$53.1M in Q1 2025
• Returned $133M to shareholders via dividends ($72M) and share repurchases ($61M)
• Net debt to adjusted EBITDA ratio of 2.4x, unchanged from prior quarter

Financial Impact

Q1 adjusted EPS beat consensus by ~1.0% ($2.47 vs. $2.43 est.), but Q2 guidance midpoint of $2.48 is below Q1 actual of $2.47, implying a sequential decline

Risk Factors

• Q2 guidance implies sequential EPS decline from Q1, signaling potential demand softness
• Solutions Group organic sales declined 0.9% YoY, with adjusted operating margin down 120 bps
• Tariff and geopolitical uncertainty could pressure demand and input costs
• Higher employee-related costs and investments are pressuring margins in Solutions Group

Market Snapshot

Documents Analyzed

This report is based on 7 SEC documents filed with EDGAR.

US Market Status