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

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• 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

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

  80% confidence

• We're anticipating Intelligent Labels growth rate in 2026 to be above what we delivered in 2025, and expects high-value categories to grow at mid-single-digit plus

  80% confidence

• Walmart announcement increased pipeline interest for Intelligent Labels

  80% confidence

• Base categories were down low single digits in Q4, lower than expected, on softer customer volumes

  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

• Restructuring benefits expected to be somewhat balanced across the year

  80% confidence

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

  80% confidence

• High-value categories in Solutions Group provided a necessary offset to base solutions, which continue to be impacted by tariff-related uncertainty

  80% confidence

• Anticipating Intelligent Labels growth rate in 2026 to be above what was delivered in 2025, with high-value categories expected to grow at mid-single-digit plus

  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

• Restructuring benefits expected to be somewhat balanced across the year

  80% confidence

• The company expects restructuring savings of approximately $50 million as it continues to execute its productivity playbook, and expects normalization of a majority of 2025 temporary savings, largely related to lower incentive compensation costs

  80% confidence

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

  80% confidence

• The company is investing in digital capabilities, automation, and AI to enable additional operational productivity, strengthen service and quality, shorten innovation cycles, and provide more data-driven solutions

  80% confidence

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

  80% confidence

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

  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

• 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

• Expect restructuring savings of approximately $50 million as the company continues to execute productivity playbook, and expect normalization of majority of 2025 temporary savings related to lower incentive compensation costs

  80% confidence

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

  80% confidence

• Expects compliance enforcement in general retail to provide a tailwind and mentioned expanded logistics pilots with new customers

  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