Avery Dennison outlines 6% Q1 2026 EPS growth target as high-value category mix accelerates

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• In Q4, the company delivered solid adjusted earnings per share of $2.45, up 3% compared to prior year

  80% confidence

• I'm not happy with the way our organic growth trajectory has been over the last couple of years

  80% confidence

• High-value categories have margins a number of points above the company's average, and significantly above base categories

  80% confidence

• Higher working capital was due to high-value category mix, and CapEx will support both productivity and future capacity

  80% confidence

• Vestcom grew over 10% in Q4

  80% confidence

• Solutions Group high-value categories make up 60% of portfolio with Vestcom growing over 10%

  80% confidence

• Company delivered adjusted EPS of $9.53 and $707 million of adjusted free cash flow for 2025, demonstrating the durability of the franchise and ability to activate multiple levers across a range of macro scenarios

  80% confidence

• Given key economic indicators remain largely consistent with 2025 levels, not planning for any macroeconomic tailwinds in the near term

  80% confidence

• High-value categories expected to grow at mid-single-digit plus

  80% confidence

• High-value categories are a number of points above our average margin, certainly significantly above the base categories as well

  80% confidence

• Pricing typically follows raw material input cost changes, with productivity actions aimed at offsetting wage inflation

  80% confidence

• Compliance enforcement in general retail is expected to provide a tailwind, and the company is expanding logistics pilots with new customers

  80% confidence

• Base volumes were a bit soft in the quarter

  80% confidence

• Growth acceleration will be driven by new customer acquisition, faster innovation cycles, and leveraging digital and AI investments

  80% confidence

• Does not anticipate an increase in customer acquisition costs

  80% confidence

• We're anticipating Intelligent Labels growth rate in 2026 to be above what we delivered in 2025, and expects high-value categories to grow at mid-single-digit plus

  80% confidence

• Base categories were down low single digits in Q4, lower than expected, on softer customer volumes

  80% confidence

• The company delivered adjusted EPS of $9.53 and $707 million of adjusted free cash flow for 2025, demonstrating the durability of the franchise and ability to activate multiple levers across a range of macro scenarios

  80% confidence

• Not happy with the way organic growth trajectory has been over the last couple of years

  80% confidence

• Expects compliance enforcement in general retail to provide a tailwind and mentioned expanded logistics pilots with new customers

  80% confidence

• Compliance enforcement in general retail is expected to provide a tailwind for Intelligent Labels

  80% confidence

• We expect restructuring savings of approximately $50 million as we continue to execute our productivity playbook, and we expect the normalization of a majority of the 2025 temporary savings

  80% confidence

• Base volumes were a bit soft in the quarter, and productivity actions were used to offset wage inflation, with some onetime items and extra calendar days impacting results

  80% confidence

• The company delivered adjusted EPS of $9.53 and $707 million of adjusted free cash flow for 2025, emphasizing the durability of our franchise and our ability to activate multiple levers across a range of macro scenarios

  80% confidence

• Temporary savings headwind is on an order of magnitude basis probably pretty similar to the size of the restructuring actions, that $50 million

  80% confidence

• Q4 delivered solid adjusted earnings per share of $2.45, up 3% compared to prior year

  80% confidence

• Continue to drive ongoing productivity all the time in terms of ELS savings, looking at reducing scrap, being more efficient in operations

  80% confidence

• Pricing typically follows raw material input cost changes, with productivity actions aimed at offsetting wage inflation

  80% confidence

• Pricing typically follows raw material input cost changes, with productivity actions aimed at offsetting wage inflation

  80% confidence

• Walmart rollout would ramp in Q4 2026 and accelerate into 2027

  80% confidence