Avery Dennison Corporation · NYSE:AVY

Avery Dennison — Q2 2026 Earnings Presentation

16 slides from Avery Dennison's earnings presentation, Jul 30, 2026

  1. 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

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. Slide 10: Appendix

    Appendix Summary Information & Reconciliation of Non-GAAP Financial Measures from GAAP September 18, 2024 Avery Dennison 2024 Investor Day 10

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. Slide 16: averydennison.com #MakingPossible

    averydennison.com #MakingPossible © 2026 Avery Dennison Corporation. All rights reserved. The “Making Possible” tagline, Avery Dennison and all other Avery Dennison brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademarks of their

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