Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Q4 2025 Earnings Presentation
29 slides from Avery Dennison's earnings presentation, Feb 4, 2026
Slide 1: Fourth Quarter and Full Year 2025 Financial Review and Analysis
Fourth Quarter and Full Year 2025 Financial Review and Analysis (preliminary, unaudited) February 4, 2026 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. February 4, 2026 Preliminary & unaudited, Q4 & FY 2025 financial review and a
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 solid 2025 earnings and strong cash flow in a dynamic environment
Delivered solid 2025 earnings and strong cash flow in a dynamic environment Q4 adj. EPS (non-GAAP) of $2.45, up 3% ● Sequentially improved adj. EPS growth with strong growth in high-value categories FY 2025 adj. EPS of $9.53, up 1% ● Delivered earnings and cash flow growth; successfully mitigated tari
Slide 5: Fourth quarter 2025 financial review
Fourth quarter 2025 financial review Reported operating income of $241 mil. Net sales of $2.3 bil. ● Adj. EBITDA margin of 16.2%, down 20 bps ● Adj. operating margin (non-GAAP) of 12.4%, down 40 bps Sales down 0.2% on an organic basis (non-GAAP) Sales change ex. currency up 0.6% (non-GAAP) Strong adj
Slide 6: Full Year 2025 financial review
Full Year 2025 financial review Reported operating income of $1.0 bil. Net sales of $8.9 bil. ● Adj. EBITDA margin of 16.4%, comparable to PY ● Adj. operating margin of 12.7%, down 10 bps Sales up 0.2% on an organic basis Sales change ex. currency up 0.4% Strong adj. FCF of $707 mil. ● Adj. free cash
Slide 7: Fourth Quarter 2025 Results: Materials Group
Fourth Quarter 2025 Results Materials Group 2025 Sales by Product Product Category Reported sales increased 5.1% to $1.5 bil. Label Materials Sales down 0.9% organically High-value Graphics & Reflectives ● LSD volume/mix growth more than offset by Categories Performance Materials(1) deflation-related
Slide 8: Fourth Quarter 2025 Results: Solutions Group
Fourth Quarter 2025 Results Solutions Group 2025 Sales by Product Product Category Reported sales increased 1.5% to $724 mil. Base Solutions Sales up 1.3% organically High-value Intelligent Labels (IL) ● High-value categories up HSD Categories Vestcom ○ IL up LSD; Embelex up HSD; Vestcom up 60% Ext.
Slide 9: Executing key strategies, with proven business resilience
Executing key strategies, with proven business resilience, to deliver GDP+ growth and top quartile returns across cycles 1 Drive outsized growth in high-value categories 2 Grow profitably in our base businesses 3 Lead at the intersection of the physical and digital 4 Effectively allocate capital and
Slide 10: High-value categories are a key driver for enterprise growth
High-value categories are a key driver for enterprise growth and portfolio strength HVC mix expansion continues, up to ~45% of sales in 2025, with an organic growth CAGR of MSD ● ~12 points of expansion since 2019 driven by a combination of organic growth and acquisitions ● HVC have outperformed rea
Slide 11: Enterprise-wide Intelligent Labels
Enterprise-wide Intelligent Labels 2025 Sales by category Overall Results: Apparel ● Q4 sales up MSD on organic basis General Retail ○ Apparel/General retail categories down LSD ○ Other categories up high-teens $0.9B Food & Logistics All Other ● FY sales up LSD on an organic basis ○ Apparel/General
Slide 12: Delivered solid results for the 2020-2025 cycle; 2023-2028 targets
Delivered solid results for the 2020-2025 cycle despite multiple cyclical challenges; leveraging strength of portfolio to deliver our 2023-2028 targets 2020-2025(1) 2023-2028(1) Targets / Results Targets / Results Sales Growth ex. Currency 5%+ 6% 5%+ 3% 6.3% Adj. EBITDA Growth(2) 6.5% 7.5%+ 7.3% (~7
Slide 13: Disciplined approach to capital allocation; strong balance sheet
Disciplined approach to capital allocation; strong balance sheet with ample capacity Q4 2025 Leverage Debt / Liquidity Considerations Total Debt Outstanding $3.7B ● 2.4x simple leverage at year-end, within our 2-3x target net leverage ratio Cash and cash equivalents $0.2B ● Growing dividend in-line
Slide 14: Q1 2026 EPS Guidance
Q1 2026 EPS Guidance Low High Reported EPS $2.27 $2.33 Est. restructuring costs and other items ~$0.13 ~$0.13 Adjusted EPS $2.40 $2.46 In Q1 2026, anticipate adj. EPS $2.40-$2.46 ● Reported sales growth of 5-7% and organic sales growth of 0-2% ○ ~4% tailwind from currency translation at recent rates
Slide 15: Appendix
Appendix Summary Information & Reconciliation of Non-GAAP Financial Measures from GAAP September 18, 2024 Avery Dennison 2024 Investor Day 15
Slide 16: Economic Conditions Dashboard
Economic Conditions Dashboard Global Purchase Manufacturing Indices All regional PMIs hovering around stable or contraction Source: S&P Global Market Intelligence Source: Trading Economics U.S. Consumer Sentiment U.S. Apparel Inventory-to- Sales Ratio 2010-2019 Avg. 2.15 2019 2020 2021 2022 2023 202
Slide 17: Trade policy continues to limit visibility
Trade policy continues to limit visibility Apparel Categories Sales vs. PY Indirect tariff impact on base apparel was similar to Q2; Base High-value HVC apparel categories still grew ● ~70% of Solutions Group sales are in tariff-impacted apparel and general retail end markets ○ In Q4, overall appare
Slide 18: Fourth quarter 2025 sales change
Fourth quarter 2025 sales change Total Materials Solutions Company Group Group Reported net sales change 3.9% 5.1% 1.5% Reclass. of sales between segments - (0.7)% 1.5% Foreign currency translation (1.7)% (2.6)% 0.0% Impact of extra days (1.5)% (1.5)% (1.6)% Sales change ex. currency (1) 0.6% 0.3% 1
Slide 19: Full year 2025 sales change
Full year 2025 sales change Total Materials Solutions Company Group Group Reported net sales change 1.1% 1.3% 0.7% Reclass. of sales between segments - (0.7)% 1.7% Foreign currency translation (0.3)% (0.6)% 0.3% Impact of extra days (0.4)% (0.4)% (0.4)% Sales change ex. currency (1) 0.4% (0.4)% 2.2%
Slide 20: Quarterly sales trend analysis
Quarterly sales trend analysis 4Q24 1Q25 2Q25 3Q25 4Q25 Reported net sales change 3.6% (0.1)% (0.7)% 1.5% 3.9% Foreign currency translation (0.1)% 2.5% (0.3)% (1.7)% (1.7)% Impact of extra days - - - - (1.5)% Sales change ex. currency (1) 3.5% 2.3% (1.0)% (0.2)% 0.6% Acquisitions (0.2)% - - - (0.8)%
Slide 21: Fourth quarter and full year 2025 margin comparisons
Fourth quarter and full year 2025 margin comparisons Reported Adjusted Adjusted Operating Margin Operating Margin EBITDA Margin Quarter 4Q25 4Q24 4Q25 4Q24 4Q25 4Q24 Materials Group 12.8% 14.7% 14.2% 14.8% 16.6% 17.0% Solutions Group 8.5% 9.1% 11.2% 11.4% 17.8% 17.8% Total Company 10.6% 12.0% 12.4%
Slide 22: 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 February 4, 2026 Preliminary & unaudi
Slide 23: Sales Change Ex. Currency and Organic Sales Change – Avery Dennison
Sales Change Ex. Currency and Organic Sales Change – Avery Dennison (1) (1) (1) Totals may not sum due to rounding February 4, 2026 Preliminary & unaudited, Q4 & FY 2025 financial review and analysis 23
Slide 24: Adjusted operating margin and adjusted EBITDA – Avery Dennison
Adjusted operating margin and adjusted EBITDA – Avery Dennison February 4, 2026 Preliminary & unaudited, Q4 & FY 2025 financial review and analysis 24
Slide 25: Adjusted EPS
Adjusted EPS (1) The adjusted tax rate was 25.5%, 25.9%, 25.8%, 24.7%, 25.0%, and 24.1% for 2025, 2024, 2023, 2022, 2021, and 2020, respectively. (1) Includes restructuring and related charges, transaction and related costs, (gain)/loss on venture and other investments, net, (gain)/loss on sales of
Slide 26: Return on total capital (ROTC)
Return on total capital (ROTC) February 4, 2026 Preliminary & unaudited, Q4 & FY 2025 financial review and analysis 26
Slide 27: Adj. EBITDA and adj. EPS change ex. currency – Avery Dennison
Adj. EBITDA and adj. EPS change ex. currency – Avery Dennison (1) (1) Totals may not sum due to rounding (1) (1) Totals may not sum due to rounding February 4, 2026 Preliminary & unaudited, Q4 & FY 2025 financial review and analysis 27
Slide 28: Adj. free cash flow and adj. free cash flow conversion
Adj. free cash flow and adj. free cash flow conversion February 4, 2026 Preliminary & unaudited, Q4 & FY 2025 financial review and analysis 28
Slide 29: 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