Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Q3 2025 Earnings Presentation
18 slides from Avery Dennison's earnings presentation, Oct 22, 2025
Slide 1: Third Quarter 2025 Financial Review and Analysis
Third Quarter 2025 Financial Review and Analysis (preliminary, unaudited) October 22, 2025 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. October 22, 2025 Preliminary & unaudited, Q3 2025 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: Delivered another solid quarter in a dynamic environment
Delivered another solid quarter in a dynamic environment Q3 adj. EPS (non-GAAP) of $2.37, up 2% and above midpoint Performance reflects strength and durability of franchise; expanded adj. EBITDA margin (non-GAAP) as we execute our strategies ● High-value categories (HVC) up LSD with strong growth in
Slide 5: Third quarter 2025 financial review
Third quarter 2025 financial review Reported operating income of $264 mil. ● Adj. EBITDA margin of 16.5%, up 10 bps Net sales of $2.2 bil. ● Adj. operating margin (non-GAAP) of 12.7%, down 10 bps Sales on an organic basis (non-GAAP) comparable to prior year Strong adj. FCF (non-GAAP) of $269 mil. Ret
Slide 6: Third quarter 2025 segment review
Third quarter 2025 segment review Materials Group continues to deliver strong margins driven largely by productivity ● Organic sales down ~2% ○ Volume/mix up modestly, which was more than offset by deflation-related price reductions ● Strong adj. EBITDA margin of 17.5%, up 50 bps vs. PY Solutions Gro
Slide 7: Trade policy continues to limit visibility
Trade policy continues to limit visibility Successfully offsetting direct tariff impacts Apparel Categories Sales vs. PY ● Vast majority (~90%) of global material cost not subject to tariffs Base High-value ● Pricing actions and procurement initiatives offsetting tariff cost increases (largely in No
Slide 8: Quarterly sales trend analysis
Quarterly sales trend analysis 3Q24 4Q24 1Q25 2Q25 3Q25 Reported Sales Change 4.1% 3.6% (0.1%) (0.7%) 1.5% Organic Sales Change 4.3% 3.3% 2.3% (1.0%) (0.2%) Acquisitions/Divestitures 0.3% 0.2% - - - Sales Change ex. Currency (Non-GAAP)(1) 4.7% 3.5% 2.3% (1.0%) (0.2%) Currency Translation (0.6%) 0.1%
Slide 9: Quarterly sales trend analysis (cont.)
Quarterly sales trend analysis (cont.) Organic Sales Change 3Q24 4Q24 1Q25 2Q25 3Q25 Materials Group 3.6% 3.7% 1.2% (1.0%) (1.9%) Solutions Group 6.0% 2.6% 4.9% (0.8%) 3.6% Total Company 4.3% 3.3% 2.3% (1.0%) (0.2%) Total Company 4.7% 3.5% 2.3% (1.0%) (0.2%) Sales Change Ex. Currency October 22, 202
Slide 10: Third quarter 2025 sales and margin comparisons
Third quarter 2025 sales and margin comparisons Sales Change Reported Ex. Currency Organic Materials Group 1.2% (1.9%) (1.9%) Solutions Group 2.0% 3.6% 3.6% Total Company 1.5% (0.2%) (0.2%) Reported Adjusted Adjusted Operating Margin Operating Margin EBITDA Margin 3Q25 3Q24 3Q25 3Q24 3Q25 3Q24 Mater
Slide 11: Third Quarter 2025 Results: Materials Group
Third Quarter 2025 Results Materials Group 2024 Sales by Product Product Category Reported sales increased 1.2% to $1.5 bil. Label Materials Sales down 1.9% organically High-value Graphics & Reflectives ● Modest volume/mix growth more than offset by Categories Performance Tapes & Medical deflation-rel
Slide 12: Third Quarter 2025 Results: Solutions Group
Third Quarter 2025 Results Solutions Group 2024 Sales by Product Product Category Reported sales increased 2.0% to $700 mil. Base Solutions Sales up 3.6% organically High-value Intelligent Labels (IL) ● High-value categories (incl. Intelligent Labels) up HSD Categories Vestcom ○ IL up MSD; Vestcom a
Slide 13: Enterprise-wide Intelligent Labels
Enterprise-wide Intelligent Labels 2024 Sales by category Overall Results Apparel ● Q3 sales up LSD ○ Apparel/General retail categories up LSD vs. PY General Retail ○ Other categories up MSD vs. PY $0.9B Food & Logistics Key End Market Insights All Other Apparel and General Retail: ● Tariff uncertai
Slide 14: Q4 2025 EPS Guidance
Q4 2025 EPS Guidance Low High Reported EPS $2.15 $2.25 Est. restructuring costs and other items ~$0.20 ~$0.20 Adjusted EPS $2.35 $2.45 In Q4, anticipate adj. EPS to be up slightly sequentially and compared to prior year ● Reported sales growth of 5-7%, including ~2% tailwind from currency translatio
Slide 15: Appendix
Appendix September 18, 2024 Avery Dennison 2024 Investor Day 15
Slide 16: Broad exposure to diverse end markets across portfolio
Broad exposure to diverse end markets across portfolio Est. 2024 Sales by End Market General industrial, building and construction, electronics, automotive, Food, home and Industrial/ appliances/whitegoods, personal care, beer Durable architecture, corporate and beverage, wine branding and signage a
Slide 17: Diversified geographic exposure, a competitive strength
Diversified geographic exposure, a competitive strength 2024 Sales by Manufacturing Location Rest of Asia Pacific ~16% ● Vast majority of U.S.-produced sales is U.S. ~30% for domestic consumption ● Nearly all U.S./Canada/Mexico $8.8B China import/exports are USMCA compliant ~16% (including RFID inlays
Slide 18: averydennison.com #MakingPossible
averydennison.com #MakingPossible © 2025 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