AI Earnings Predictions for Avery Dennison Corporation (AVY)

EX-99.1

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EX-99.1

Document

Exhibit 99.1

For Immediate Release

AVERY DENNISON ANNOUNCES

SECOND QUARTER 2026 RESULTS

Delivered strong sales, earnings, and cash flow growth

●2Q26 Reported EPS of $2.67

○Adjusted EPS (non-GAAP) of $2.89, up 19.4%

●2Q26 Net sales of $2.5 billion, up 10.9%

○Sales change ex. currency (non-GAAP) up 8.9%

○Organic sales change (non-GAAP) up 7.6%

●FY26 Reported EPS guidance of $9.40 to $9.70

○FY26 Adjusted EPS guidance of $10.00 to $10.30

MENTOR, Ohio, July 30, 2026 – Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced preliminary, unaudited results for its second quarter ended June 30, 2026. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year.

“We delivered very strong second quarter results, marked by stronger-than-anticipated sales growth, solid margin expansion and adjusted EPS of $2.89, reflecting the strength of our portfolio and our team’s execution excellence,” said Deon Stander, president and CEO.

“Our focus on innovation and service-led differentiation continues to deliver for our customers, driving strong organic sales growth across both our high-value categories and base businesses. We continue to leverage our productivity playbook to expand margins and improve earnings growth while returning capital to shareholders.

“I am proud of our global team. Their agility and operational excellence continue to deliver strong performance, as we build on this momentum for the remainder of 2026 and beyond.”

Second Quarter 2026 Results by Segment

Materials Group

●Reported sales increased 15.9% to $1.8 billion.

●Sales were up 11.5% ex. currency.

●Sales up 9.7% on an organic basis

○Volume/mix growth of high single digits and price up low single digits

○High-value categories up mid-single digits

○Base categories up low double digits

●Reported operating margin of 15.6%

○Adjusted operating margin (non-GAAP) of 15.8%, up 20 basis points

○Adjusted EBITDA margin (non-GAAP) of 18.0%, up 20 basis points, as volume, productivity and the net benefit of pricing and raw material costs, including raw material re-engineering, were partially offset by mix and higher employee-related costs.

Solutions Group

●Reported sales decreased 0.5% to $667 million.

●Sales were up 2.6% ex. currency.

●Sales up 2.6% on an organic basis

○High-value categories up low single digits

○Base categories up low single digits

○Overall apparel categories up high single digits

●Reported operating margin of 8.9%

○Adjusted operating margin of 11.5%, up 150 basis points

○Adjusted EBITDA margin of 18.6%, up 150 basis points, as productivity was partially offset by higher employee-related costs.

Other

Capital Deployment and Balance Sheet

The company continues to deploy capital in a disciplined manner, executing its long-term capital allocation strategy.

During the first half of 2026, the company returned $347 million in cash to shareholders through a combination of share repurchases and dividends. The company repurchased 1.2 million shares, with payments for share purchases totaling $198 million. Net of dilution from long-term incentive awards, the company’s share count at the end of the second quarter was down 2.1 million compared to the same time last year.

The company’s balance sheet remains strong. Net debt to adjusted EBITDA (non-GAAP) was 2.3x at the end of the second quarter.

Income Taxes

The company’s reported effective tax rate was 27.8% and 28.8% for the three and six months ended June 30, 2026, respectively. The adjusted tax rate (non-GAAP) was 27.4% and 26.8% for the three and six months ended June 30, 2026, respectively.

Cost Reduction Actions

In the first half of the year, the company realized approximately $34 million in pre-tax savings from restructuring actions and incurred approximately $34 million in pre-tax restructuring charges.

Guidance

In its supplemental presentation materials, “Second Quarter 2026 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its financial results. Based on the factors listed and other assumptions, the company expects full year 2026 reported EPS of $9.40 to $9.70.

Excluding an estimated $0.60 per share impact of other items and restructuring charges, the company expects full year 2026 adjusted EPS of $10.00 to $10.30.

For more details on the company’s results, see the summary tables accompanying this news release, as well as the supplemental presentation materials, “Second Quarter 2026 Financial Review and Analysis,” posted on the company’s website at www.investors.averydennison.com, and furnished to the SEC on Form 8-K.

Throughout this release and the supplemental presentation materials, amounts on a per share basis reflect fully diluted s

EX-99.1

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EX-99.1

Document

Exhibit 99.1

For Immediate Release

AVERY DENNISON ANNOUNCES

FIRST QUARTER 2026 RESULTS

Delivered strong earnings growth and free cash flow in dynamic quarter

●1Q26 Reported EPS of $2.18

○Adjusted EPS (non-GAAP) of $2.47, up 7.4%

●1Q26 Net sales of $2.3 billion, up 7.0%

○Sales change ex. currency (non-GAAP) up 2.3%

○Sales on an organic basis (non-GAAP) up 1.1%

●2Q26 Reported EPS guidance of $2.21 to $2.31

○2Q26 Adjusted EPS guidance of $2.43 to $2.53

MENTOR, Ohio, April 28, 2026 – Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced preliminary, unaudited results for its first quarter ended March 31, 2026. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year.

“We delivered strong first quarter results, with adjusted EPS of $2.47, once again reflecting the strength and resilience of our overall portfolio to deliver growth in a dynamic environment,” said Deon Stander, president and CEO.

“We are executing a clear strategy to drive earnings growth. This is underpinned by our proven playbook focused on innovation, commercial excellence, and service-led differentiation to gain share with rigorous productivity, procurement, and cost management. This playbook allows us to deliver value for our customers, while offsetting inflationary pressures and maintaining supply continuity.

“I want to again extend my gratitude to our entire team. Our success reflects our team's agility and their dedication ensures that we continue to execute our strategic priorities and deliver results in 2026 and beyond.”

First Quarter 2026 Results by Segment

Materials Group

●Reported sales increased 11.4% to $1.6 billion. Sales were up 3.6% ex. currency.

●Sales up 1.9% on an organic basis

○Mid-single digit volume/mix growth partially offset by deflation-related price reductions

○Base categories up mid-single digits; high-value categories down low-single digits

○Graphics and Reflectives down mid-single digits; Performance Materials down low-single digits

●Reported operating margin of 14.9%

○Adjusted operating margin (non-GAAP) of 15.4%, down 20 basis points

○Adjusted EBITDA margin (non-GAAP) of 17.8%, up 10 basis points, as productivity and the net benefit of pricing and raw material costs, including raw material re-engineering, were partially offset by mix and higher employee-related costs

Solutions Group

●Reported sales decreased 2.8% to $649 million. Sales were down 0.9% ex. currency.

●Sales down 0.9% on an organic basis

○Sales in high-value categories up low-single digits

●Embelex and Vestcom up mid-single digits

●Intelligent Labels down low-single digits

○Sales in base categories down mid-single digits

○Overall apparel categories comparable to prior year

●Reported operating margin of 7.5%

○Adjusted operating margin of 9.0%, down 120 basis points

○Adjusted EBITDA margin of 16.4%, down 80 basis points, as productivity and the net benefit of pricing and raw material costs were more than offset by higher employee-related costs and investments

Other

Capital Deployment and Balance Sheet

The company continues to deploy capital in a disciplined manner, executing its long-term capital allocation strategy.

During the first quarter of 2026, the company returned $133 million in cash to shareholders through a combination of dividends and share repurchases. The company repurchased 0.3 million shares, with payments for share purchases totaling $61 million. Net of dilution from long-term incentive awards,

the company’s share count at the end of the quarter was down 1.9 million compared to the same time last year.

The company’s balance sheet remains strong. Net debt to adjusted EBITDA (non-GAAP) was 2.4x at the end of the first quarter.

Income Taxes

The company’s reported effective tax rate was 30.1% in the first quarter. The adjusted tax rate (non-GAAP) for the quarter was 26.2%.

Cost Reduction Actions

In the first quarter, the company realized approximately $17 million in pre-tax savings from restructuring actions and incurred approximately $16 million in pre-tax restructuring charges.

Guidance

In its supplemental presentation materials, “First Quarter 2026 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its financial results. Based on the factors listed and other assumptions, the company expects second quarter 2026 reported earnings per share of $2.21 to $2.31.

Excluding an estimated ~$0.22 per share impact of other items and restructuring charges, the company expects second quarter 2026 adjusted earnings per share of $2.43 to $2.53.

For more details on the company’s results, see the summary tables accompanying this news release, as well as the supplemental presentation mater

avy-202602040000008818FALSE00000088182026-02-042026-02-040000008818us-gaap:CommonStockMember2026-02-042026-02-040000008818avy:SeniorNotesDue2034Member2026-02-042026-02-040000008818avy:SeniorNotesDue2035Member2026-02-042026-02-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 February 4, 2026 Date of Report (Date of earliest event reported)

AVERY DENNISON CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

1-7685

95-1492269

(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

8080 Norton Parkway Mentor, Ohio 44060 (Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code (440) 534-6000

(Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, $1 par value AVY New York Stock Exchange 3.750% Senior Notes due 2034 AVY34 Nasdaq Stock Market 4.000% Senior Notes due 2035AVY35Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 2 — Corporate Governance and Management

Item 2.02 Results of Operations and Financial Condition.

Avery Dennison Corporation’s (the “Company’s”) press release, dated February 4, 2026, announcing the Company’s preliminary, unaudited financial results for fourth quarter and full-year 2025 and its guidance for first quarter 2026, is attached hereto as Exhibit 99.1 and being furnished (not filed) with this Form 8-K. The Company’s supplemental presentation materials, dated February 4, 2026, regarding its preliminary, unaudited financial review and analysis for fourth quarter and full-year 2025 and its guidance for first quarter 2026, is attached hereto as Exhibit 99.2 and being furnished (not filed) with this Form 8-K. The press release and presentation materials are also available on the Company's website at www.investors.averydennison.com.

The Company will discuss its preliminary, unaudited financial results during a webcast and teleconference to be held on February 4, 2026, at 11:00 a.m. ET. To access the webcast and teleconference, please go to the Company’s website at www.investors.averydennison.com.

Section 9 — Financial Statements and Exhibits Item 9.01 Financial Statements and Exhibits. (d) Exhibits.

Exhibit NumberExhibit Title

99.1Press release, dated February 4, 2026, announcing the Company’s preliminary, unaudited financial results for fourth quarter and full-year 2025.

99.2Supplemental presentation materials, dated February 4, 2026, regarding the Company’s preliminary, unaudited financial review and analysis for fourth quarter and full-year 2025.

104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this Form 8-K and the exhibits attached hereto are forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, and financial or other business targets, are subject to certain risks and uncertainties.

The Company believes that the most significant risk factors that could affect its financial performance in the near term include: (i) the impact on underlying demand for the Company’s products from global economic conditions, tariffs, geopolitical uncertainty, and changes in environmental standards, regulations and preferences; (ii) competitors' actions, including pricing, expansion in key markets, and product offerings; (iii) the cost and availability of raw materials; (iv) the degree to which higher costs can be offset with productivi