Avery Dennison Reports Strong Q2 Performance and Restores Full-Year Guidance
Avery Dennison reported strong financial results for its second quarter, with organic sales growth of 8%, adjusted EPS rising by 19% to $2.89 per share, a 50-basis-point EBITDA margin expansion to 17.1%, and over $365 million in free cash flow. The company attributed part of its performance to customer inventory pre-buying, particularly in the Label Materials segment, which contributed about half of organic growth and added approximately $0.25 per share to earnings. Despite these gains, Avery Dennison warned that destocking activity within its Materials Group is expected to create a $0.50 sequential EPS headwind in Q3. Nevertheless, it has reinstated full-year guidance for adjusted EPS between $10.00 and $10.30 per share and organic sales growth of 3%–4%. The company cited productivity initiatives, expanding Solutions margins, and continued Intelligent Labels adoption as key drivers. CEO Deon Stander highlighted the resilience of Avery Dennison’s portfolio across base and high-value categories, while CFO Greg Lovins noted that underlying Materials Group growth remained in mid-single digits after excluding inventory-related benefits. Raw material inflation is expected to remain a challenge for the remainder of 2026.
Tickers: $AVY
Topics: adjusted eps ebitda margin expansion financial performance free cash flow organic sales growth