Acco Brands Stock Earnings Reports

ACCO Brands reported Q3 2025 sales modestly below its outlook due to softer global demand, tariff-related timing and trade-down trends, but met its adjusted EPS target driven by cost reductions and margin improvement. Management highlighted progress on a $100 million multiyear cost reduction program (about $50 million realized to date) and disciplined spending controls that improved gross margin by 50 basis points despite a 9% reported sales decline (nearly +2% FX benefit). Performance was mixed by segment: Americas B2S in the U.S./Canada sold through in line but retailers limited replenishment; Latin America (notably Brazil) started its season slower with some recovery expected; International was soft in Europe but stronger in Australia/Asia; technology accessories (Kensington, PowerA) are expected to return to growth in Q4 driven by new product launches and the Nintendo Switch 2 rollout. Cash generation remains seasonal; year-to-date adjusted free cash flow was $42M (including $17M from asset sales). Management reaffirmed full-year guidance: reported sales down ~7%–8.5%, adjusted EPS $0.83–$0.90, adjusted free cash flow ~$90M–$100M, and expects year-end net leverage ~3.9x. Key near-term drivers for Q4 improvement are price realization (mid-single-digit pricing actions that lagged into Q4), holiday season demand for gaming accessories, and product pipeline execution. Capital allocation priority is debt reduction; no material maturities until 2029.