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

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

  80% confidence

• Materials Group high-value categories now represent 38% of the segment's portfolio with Intelligent Label delivering high single-digit growth

  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

• Restructuring savings of approximately $50 million expected as company continues to execute productivity playbook

  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

• Plans for organic growth acceleration include new customer acquisition, faster innovation cycles, and leveraging digital and AI investments

  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

• 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

• Intelligent Labels delivered high single-digit growth

  80% confidence

• Expects restructuring benefits to be somewhat balanced across the year

  80% confidence

• Management is not happy with the organic growth trajectory over the last couple of years

  80% confidence

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

  80% confidence

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

  80% confidence

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

  80% confidence

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

  80% confidence

• High-value categories now represent 38% of the Materials Group portfolio

  80% confidence

• Ongoing investments in digital capabilities, automation, and AI will enable additional operational productivity and fixed cost innovation

  80% confidence

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

  80% confidence

• Materials Group saw reported sales increase 5%, with high-value categories now representing 38% of the segment's portfolio, and Intelligent Label delivering high single-digit growth

  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

• Does not anticipate an increase in customer acquisition costs and feels confident in the company's paper supply risk management

  80% confidence

• The Walmart announcement increased pipeline interest in Intelligent Labels

  80% confidence

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

  80% confidence

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

  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

• 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