Slide 1: Second Quarter 2026 Financial Review and Analysis
Second Quarter 2026 Financial Review and Analysis (preliminary, unaudited) July 30, 2026 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. July 30, 2026 Preliminary & unaudited, Q2 2026 financial review and analysis 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this document are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, and financial or other business targets, a
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures as defined by SEC rules. We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using cert
Slide 4: Strong Q2 Results; Strength & Durability of Franchise
Delivered strong sales, earnings, and cash flow growth Strong Q2 Results Strength & Durability of Franchise Adj. EPS (non-GAAP) of $2.89, well above expectations ● High-value categories (HVC) organic sales up and up 19% vs. prior year mid-single digits ● Organic sales growth (non-GAAP) of 8%, driven
Slide 5: Second Quarter 2026 Financial Review
Second quarter 2026 financial review Reported operating income of $314 mil. Net sales of $2.5 bil. ● Adj. EBITDA margin of 17.1%, up 50 bps ● Adj. operating margin (non-GAAP) of 13.6%, up 70 bps Sales change ex. currency (non-GAAP) up 8.9% Organic sales growth of 7.6% Strong adj. FCF of $365 mil. Ret
Slide 6: Second Quarter 2026 Results: Materials Group
Second Quarter 2026 Results Materials Group 2025 Sales by Product Product Category Reported sales increased 15.9% to $1.8 bil. Label Materials Sales up 9.7% organically High-value Graphics & Reflectives ● Volume/mix growth of high single digits and Categories Performance Materials price up low single
Slide 7: Second Quarter 2026 Results: Solutions Group
Second Quarter 2026 Results Solutions Group 2025 Sales by Product Product Category Reported sales decreased 0.5% to $667 mil. Base Solutions Sales up 2.6% organically High-value Intelligent Labels ● High-value categories up low single digits Categories Vestcom ● Base categories up low single digits
Slide 8: Enterprise-wide Intelligent Labels
Enterprise-wide Intelligent Labels 2025 Sales by Category Overall Results: ● Q2 sales up low single digits on organic basis; in line with our expectations ○ Apparel and general retail up approximately 10% on apparel program expansions and recovery in general retail ○ Food and logistics down double d
Slide 9: FY 2026 EPS Guidance
FY 2026 EPS Guidance Low High Reported EPS $9.40 $9.70 Est. other items & restructuring costs ~$0.60 ~$0.60 Adjusted EPS $10.00 $10.30 For FY 2026, anticipate adj. EPS of $10.00-$10.30 ● Reported sales growth of 5-6% and organic sales growth of 3-4% ○ ~1.5% benefit from currency translation, ~1% bene
Slide 10: Appendix
Appendix Summary Information & Reconciliation of Non-GAAP Financial Measures from GAAP September 18, 2024 Avery Dennison 2024 Investor Day 10
Slide 11: Economic Conditions Dashboard
Economic Conditions Dashboard July 2026 Outlook and Change vs. Jan’26 Outlook U.S. Consumer Sentiment 2020 2021 2022 2023 2024 2025 2026 Source: S&P Global Market Intelligence Source: University of Michigan July 30, 2026 Preliminary & unaudited, Q2 2026 financial review and analysis 11
Slide 12: Second quarter 2026 sales change
Second quarter 2026 sales change Total Materials Solutions Company Group Group Net sales change 10.9% 15.9% (0.5)% Reclass. of sales between segments - (1.7)% 3.8% Foreign currency translation (2.0)% (2.6)% (0.6)% Sales change ex. currency(1) 8.9% 11.5% 2.6% Acquisitions (1.3)% (1.8)% - Organic sale
Slide 13: Quarterly sales trend analysis
Quarterly sales trend analysis 2Q25 3Q25 4Q25 1Q26 2Q26 Net sales change (0.7)% 1.5% 3.9% 7.0% 10.9% Foreign currency translation (0.3)% (1.7)% (1.7)% (4.7)% (2.0)% Impact of extra days - - (1.5)% - - Sales change ex. currency (1) (1.0)% (0.2)% 0.6% 2.3% 8.9% Acquisitions - - (0.8)% (1.2)% (1.3)% Or
Slide 14: Second quarter 2026 margin comparisons
Second quarter 2026 margin comparisons Reported Adjusted Adjusted Operating Margin Operating Margin EBITDA Margin 2Q26 2Q25 2Q26 2Q25 2Q26 2Q25 Materials Group 15.6% 16.1% 15.8% 15.6% 18.0% 17.8% Solutions Group 8.9% 8.9% 11.5% 10.0% 18.6% 17.1% Total Company 12.7% 12.9% 13.6% 12.9% 17.1% 16.6% July
Slide 15: Broad exposure to diverse markets across portfolio
Broad exposure to diverse markets across portfolio Est. 2025 Sales by End Market 2025 Sales by Manufacturing Location Latin Industrial/ Am. Durable Other U.S. & Asia-Pac Canada Non- durable 60%+ Goods Staples Apparel $8.9B China NA ME Logistics Western Europe EE July 30, 2026 Preliminary & unaudited
Slide 16: averydennison.com #MakingPossible
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