Avery Dennison Corporation Earnings Recaps
Q1 2026
Apr 29, 2026
Avery Dennison shares declined 1.2% following Q1 2026 earnings, as the broadly in-line print was tempered by margin pressures in the Solutions Group and softer sales in high value categories, with investors weighing inflationary headwinds and uneven end-market trends against balanced execution.
Key takeaways
- Organic sales grew 1% in Q1, driven by mid single-digit volume/mix improvement but offset by softer results in select high value categories.
- Materials Group reported 11% total sales growth (2% organic), with strength in base label materials compensating for declines in Graphics, Reflectives, and Performance Materials.
- Solutions Group saw sales decline 3% (down 1% organic), led by weakness in base categories and margins compressing 80 basis points year-over-year to 16.4%.
- Enterprise-wide Intelligent Labels sales fell low single digits, coming in slightly below growth expectations amid headwinds in logistics and mixed demand across end-markets.
- Management cited inflationary pressures and customer order timing as ongoing challenges but reaffirmed disciplined cost controls and continued investment in innovation and growth platforms.
Q3 2025
Oct 22, 2025
Avery Dennison reported a 2% year-over-year earnings increase for Q3 2025, above expectations, reflecting robust execution despite ongoing trade policy challenges.
Key takeaways
- Materials Group margins expanded by 50 basis points year-over-year, driven by operational excellence and a positive volume mix from specialty durable labels and adhesives.
- Solutions Group achieved 4% organic sales growth, with over 10% growth from both VESCOM and Embellix segments.
- A major partnership with Walmart to leverage RFID innovation in fresh grocery categories marks a significant milestone in the Intelligent Labels market.
- Despite trade policy uncertainties impacting apparel and general retail, the company anticipates improved year-over-year growth in Q4.
- High-value categories now represent 45% of total business, underscoring Avery Dennison's strategic shift towards higher growth and margin opportunities.