Q3 2025 EARNINGS CONFERENCE CALL
October 31, 2025
REG. G NON-GAAP FINANCIAL MEASURES
An explanation of how we calculate each of our Non-GAAP financial measures and a reconciliation of our current period and historical non-GAAP financial measures to the most directly comparable GAAP financial measures can be found at the end of this presentation.
We use our non-GAAP financial measures both to explain our results to stockholders and the investment community and in the internal evaluation and management of our business. We believe our non-GAAP financial measures provide management and investors with a more complete understanding of our underlying operational results and trends, facilitate meaningful period-to-period comparisons and enhance an overall understanding of our past and future financial performance.
Our non-GAAP financial measures exclude certain items that may have a material impact upon our reported financial results such as restructuring charges, the impact of foreign currency exchange rate fluctuations, unusual tax items, goodwill and intangible asset impairment charges, and other non-recurring items that we consider to be outside of our core operations. On an interim basis, we also calculate adjusted income tax expense using our estimated annual income tax rate. These measures should not be considered in isolation or as a substitute for, or superior to, the directly comparable GAAP financial measures and should be read in connection with the Company's financial statements presented in accordance with GAAP.
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We also provide forward-looking non-GAAP comparable sales, adjusted earnings per share, free cash flow/adjusted free cash flow, adjusted EBITDA, and historical and forward-looking consolidated leverage ratio. We do not provide a reconciliation of these forward-looking and historical non-GAAP measures to GAAP because the GAAP financial measure is not currently available and management cannot reliably predict all the necessary components of such non-GAAP measures without unreasonable effort or expense due to the inherent difficulty of forecasting and quantifying certain amounts that are necessary for such a reconciliation, including adjustments that could be made for restructuring, integration and acquisition-related expenses, the variability of our tax rate and the impact of foreign currency fluctuation and material acquisitions, and other charges reflected in our historical results. The probable significance of each of these items is high and, based on historical experience, could be material.
3Q 2025 HIGHLIGHTS
Sales impacted by lower demand, but expect improved
sales trends in the fourth quarter
For the N.A. back-to-school season, our brands gained market share, despite sales being impacted by tariff-related actions by retailers
Executing on $100 million multi-year cost reduction program, have realized over $50 million since inception of program
Gross margin up 50 basis points and SG&A costs down year-over-year due to cost savings and lower incentive compensation expense
EPS in line with the Company outlook
Reaffirms 2025 full year outlook
POWERA SUPPORTS LAUNCH
Selected as one of the few officially licensed third-party partners at launch
First to market with licensed wireless controllers for Switch 2 (late October 2025)
Exclusive character IP controllers expected to be the only licensed wireless offerings in market through 2025
Robust innovation pipeline with additional licensed products planned over the next 12 months across several product categories.
NEW PRODUCT SPOTLIGHT
West Village by
Leitz ergonomic products not only look good, but also help you move more, sit better, and feel energized at your workplace every day. West Village by Mead blends modern elegance with intentional design, creating versatile solutions that bring style and function to every corner of life - from workspaces to living spaces and everything in between.Buro Seating is where ergonomic design meets modern style for workspaces that inspire comfort and productivity.
MULTI-YEAR COST REDUCTION PROGRAM
Total Program Targeting At Least s100M in Cost SavingsTotal savings of over $50 million since inception of the program
Achieved approximately $10 million in savings in Q3 2025
Combination of lower headcount, lower discretionary spend and footprint rationalization
Program to date accomplishments
Rationalized global footprint
Reduced headcount and spend in SG&A
Consolidated supply chain enabling better inventory management
Streamlined management structure, focusing on revitalizing sales growth, with leaders that have commercial experience and strong customer relationships
FINANCIAL RESULTS 3Q 2025
3 Months Ended | 9 Months Ended | 3Q 2025 Commentary | |||||||
$ in Millions | 2025 | 2024 | %Chg | 2025 | 2024 | % Chg |
| ||
Net Sales | s383.7 | sN20.9 | (8.8%) | s109U.9 | s1218.1 | (10.0%) | |||
Gross Profit | s12e.e | s13e.9 | (7.5%) | s3UU.9 | s399.9 | (11.0%) | |||
% Margin | 33.0% | 32.5% | 32.5% | 32.8% | |||||
SG&A | $87.4 | $92.2 | (5.2%) | $262.7 | $274.4 | (4.3%) | |||
% Total Revenue | 22.8% | 21.9% | 24.0% | 22.5% | |||||
*Adj. Operating Income | s39.2 | sNN.7 | (12.3%) | s93.2 | s12U.U | (25.7%) | |||
% Margin | 10.2% | 10.6% | 8.5% | 10.3% | |||||
*Adj. Earnings Per Share | $0.21 | $0.23 | (8.7%) | $0.46 | $0.63 | (27.0%) | |||
*Comparable Sales, Adjusted Operating Income and Adjusted EPS are Non-GAAP Financial Measures
3Q SEGMENT FINANCIAL METRICS
$ in millions | 3Q 2025 | 3Q 2024 | Y/Y Change | Segment Commentary | ||
ACCO Brands Americas | Americas Commentary
| |||||
Sales | $227.6 | $259.1 | (12.2%) | |||
*Comparable Sales | $227.2 | $259.1 | (12.4%) | |||
*Adjusted Operating Income | $32.7 | $36.7 | (10.9%) | |||
*Adjusted Operating Margin | 14.4% | 14.2% | 20 bps | |||
ACCO Brands International | ||||||
Sales | $156.1 | $161.8 | (3.5%) | |||
*Comparable Sales | $150.0 | $161.8 | (7.3%) | |||
*Adjusted Operating Income | $15.9 | $17.1 | (7.0%) | |||
*Adjusted Operating Margin | 10.2% | 10.6% | (40 bps) | |||
*Comparable Sales, Adjusted Operating Income and Adjusted Operating Margin are Non-GAAP Financial Measures.
2025 Change vs. Prior Year Items of Significant Impact Bps
3Q 2025 MARGIN RECONCILIATION
Gross Profit | $126.6M | ($10.3M) | Pricing/Product Cost | 30 |
Cost Savings | 1U0 | |||
Gross Margin | 33.0% | 50 Bps | Fixed Cost Absorption | (100) |
Tariff Impact | (100) | |||
Mix/FX | 70 | |||
SG&A | $87.4M | ($4.8M) | Cost Savings | (100) |
Sales Deleverage | 230 | |||
SG&A Margin | 22.8% | 90 bps | Incentive Compensation | (e0) |
Investments/Merit Inflation | 20 | |||
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