Avery Dennison Reports Q3 2026 Financial Results and Reaffirms FY26 Guidance

Executive Summary

On October 29, 2026, Avery Dennison Corporation filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition), announcing preliminary, unaudited financial results for the third quarter ended September 30, 2026, along with updated full-year 2026 guidance.

Q3 2026 Key Financial Metrics

• Net Sales: $2.33 billion, up 5.2% year-over-year (up 4.9% ex-currency and up 3.7% on an organic basis).
• Diluted EPS:
  • Reported EPS: $2.24.
  • Adjusted EPS (Non-GAAP): $2.42, an increase of 2.1% compared to Q3 2025.
• Adjusted Operating Income: $282.1 million (vs. $281.1 million in Q3 2025).

Segment Performance

• Materials Group:
  • Sales of $1.64 billion, up 8.5% reported (+6.7% ex-currency, +4.9% organic).
  • Reported operating margin of 13.7%; Adjusted operating margin of 14.1% (down 110 bps YoY).
• Solutions Group:
  • Sales of $687.0 million, down 1.8% reported (+0.8% ex-currency and organic).
  • Reported operating margin of 10.5%; Adjusted operating margin of 10.8% (up 80 bps YoY).

Capital Allocation & Balance Sheet

• Returned $481 million to shareholders year-to-date through dividends and share buybacks.
• Repurchased 1.5 million shares year-to-date totaling $257 million.
• Net debt to adjusted EBITDA stood at 2.2x at the end of Q3 2026.

Full-Year 2026 Outlook

• Reported EPS: Expected between $9.45 and $9.59.
• Adjusted EPS: Expected between $10.10 and $10.24, excluding an estimated $0.65 per share impact from restructuring charges and other items.