Avery Dennison (AVY) Q4 2025 Earnings Transcript

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Wed, February 4, 2026 astatine 11:26 AM CST 46 min read

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Wednesday, Feb. 4, 2026 astatine 11 a.m. ET

• President and Chief Executive Officer — Dion Stander

• Senior Vice President and Chief Financial Officer — Gregory S. Lovins

• Vice President of Investor Relations — William Gilchrist

Dion Stander: Thanks, Gillian. Hello, everyone. We delivered coagulated full-year 2025 results with adjusted EPS of $9.53 and $700 cardinal of adjusted escaped currency flow, a show that erstwhile again underscores the durability of our franchise and our quality to activate aggregate levers crossed a scope of macro scenarios. While ongoing commercialized argumentation changes and softer user sentiment person been headwinds for our business, we successfully leveraged our productivity playbook to support an adjusted EBITDA borderline of 16.4%. Our results show the resilience of our exemplary arsenic we stay focused connected driving outsized maturation successful high-value categories, accelerating innovation to beforehand our differentiation, delivering productivity to support basal margins, and allocating superior effectively. Turning to the 4th fourth conception results.

In Materials Group, reported income accrued 5%. While income were down somewhat connected an integrated basis, we saw debased single-digit measurement and premix maturation that was much than offset by deflation-related terms reductions. We are continuing to beforehand our strategical displacement towards high-value categories, which present represents 38% of the segment's portfolio, a fig we expect to grow with a afloat twelvemonth of Taylor adhesives. Within this segment, Intelligent Label delivered precocious single-digit growth, underscoring its relation arsenic an important maturation engine, portion Performance Materials grew mid-single digits, and Graphics and Reflectives grew debased azygous digits. High-value categories helped equilibrium our basal categories, which were down debased azygous digits successful the quarter, little than expected connected softer lawsuit volumes.

From a borderline perspective, adjusted EBITDA borderline was 16.6%, down 40 ground points compared to the anterior year. This reflects the interaction of higher employee-related costs and immoderate one-time benefits successful the anterior twelvemonth 4th quarter, which our squad worked diligently to partially offset done the benefits of our ongoing productivity actions. In Solutions Group, income accrued astir 1.5%. This conception continues to pb our portfolio shift, with high-value categories present representing 60% of the Solutions Group portfolio. This proved captious this 4th arsenic our high-value categories provided a indispensable offset to our basal solutions, which proceed to beryllium impacted by tariff-related uncertainty.