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

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

  80% confidence

• High-value categories in Solutions Group make up 60% of the portfolio

  80% confidence

• Ongoing investments in digital capabilities, automation, and AI will enable additional operational productivity and fixed cost innovation, strengthen service and quality, shorten innovation cycles and provide more data-driven solutions

  80% confidence

• The company delivered adjusted EPS of $9.53 and $707 million of adjusted free cash flow for 2025

  80% confidence

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

  80% confidence

• Restructuring benefits expected to be somewhat balanced across the year

  80% confidence

• High-value categories margins are a number of points above company average, and significantly above base categories

  80% confidence

• High-value categories helped balance base categories, which were down low single digits in the quarter on softer customer volumes

  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

• Ongoing investments in digital capabilities, automation, and AI will enable additional operational productivity and fixed cost innovation, strengthen service and quality, shorten innovation cycles and provide more data-driven solutions

  80% confidence

• The 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

• 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

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

  80% confidence

• Intelligent Labels growth rate in 2026 anticipated to be above what was delivered in 2025

  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

• In the fourth quarter, we 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 our operations

  80% confidence

• Walmart announcement increased pipeline interest for Intelligent Labels

  80% confidence

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

  80% confidence

• Key economic indicators remain largely consistent with 2025 levels, no macroeconomic tailwinds planned in the near term

  80% confidence

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

  80% confidence

• Company feels confident in paper supply risk management

  80% confidence

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

  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

• The temporary savings headwind is on an order of magnitude probably similar to the size of the restructuring actions, approximately $50 million

  80% confidence