Avery Dennison Corporation Q3 2026 Earnings Recap

Avery Dennison’s shares rose 0.8%, a broadly flat reaction to a quarter with 4% organic sales growth and adjusted EPS up 2%. Results benefited from slower-than-expected customer destocking, but adjusted EBITDA margin declined year over year and inventory unwinding remains a near-term factor.

Key Takeaways

• Adjusted EPS was $2.42, up 2%; management estimated destocking reduced quarterly sales growth by about 2 percentage points and EPS by roughly $0.15.
• Reported sales increased 5% to $2.3 billion; organic sales grew 4%, including low-single-digit contributions from price and volume/mix.
• Adjusted EBITDA margin fell to 15.8%, as productivity was outweighed by raw-material pricing pass-through effects, normalized incentive compensation, and unfavorable mix.
• Materials Group organic sales rose 5%, while Solutions Group grew 1%; Solutions delivered adjusted EBITDA growth and margin expansion.
• Intelligent Labels sales increased low single digits overall: apparel and general retail rose about 10%, while logistics declined by double digits. The company slightly raised the midpoint of its full-year outlook, citing 3.5% organic sales growth.