Avery Dennison Stock Earnings Reports

Avery Dennison delivered a solid start to 2026: first-quarter adjusted EPS of $2.47 (up 7% year-over-year) on organic sales up ~1%, driven by mid single-digit volume/mix in Materials Group. Materials outperformed (reported sales +11%, organic +2%) with base label materials and productivity initiatives offsetting softness in high-value categories. Solutions Group was softer (reported sales -3%, organic -1%) with Intelligent Labels down low single digits, weighed by logistics weakness and customer inventory management, though apparel and retail showed low-single-digit growth. Management announced a $75 million incremental investment in Williard to expand the Intelligent Labels platform and condition-monitoring capability. Company generated $104 million of adjusted free cash flow, returned $133 million to shareholders in Q1 (dividends + buybacks), and ended the quarter with net debt / adjusted EBITDA of 2.4x. For Q2, management guides organic sales growth of 0%–2% and EPS of $2.43–$2.53 (midpoint ≈ +3% YoY). They expect higher raw-material inflation in Q2 (high-single-digit sequential) but are implementing price increases, material reengineering, productivity and restructuring (now targeting >$55M savings) to protect margins. Management expects Intelligent Labels growth to be back-end weighted (major program ramps in 2H26, including a Walmart food rollout) and anticipates sequential earnings improvement through the year, assuming current conditions.