Avery Dennison outlines 6% Q1 2026 EPS growth target as high-value category mix accelerates

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• The company expects restructuring savings of approximately $50 million as it continues to execute its productivity playbook, and expects normalization of a majority of 2025 temporary savings, largely related to lower incentive compensation costs

  80% confidence

• Walmart rollout would ramp in Q4 2026 and accelerate into 2027

  80% confidence

• In the fourth quarter, delivered solid adjusted earnings per share of $2.45, up 3% compared to prior year

  80% confidence

• Solutions Group reported 1.5% sales increase, with high-value categories making up 60% of the portfolio and Vestcom growing over 10%

  80% confidence

• Pricing typically follows raw material input cost changes, with productivity actions aimed at offsetting wage inflation

  80% confidence

• Higher working capital was due to high-value category mix, and CapEx will support both productivity and future capacity

  80% confidence

• The Walmart rollout would ramp in Q4 2026 and accelerate into 2027

  80% confidence

• Walmart rollout would ramp in Q4 2026 and accelerate into 2027

  80% confidence

• Apparel business saw a 7% decline, greater than anticipated, primarily due to changes in retailer ordering behavior amid tariff uncertainty

  80% confidence

• The company is investing in digital capabilities, automation, and AI to enable additional operational productivity, strengthen service and quality, shorten innovation cycles, and provide more data-driven solutions

  80% confidence

• Base volumes were a bit soft in the quarter, and productivity actions were used to offset wage inflation, with some onetime items and extra calendar days impacting results

  80% confidence

• High-value categories in Solutions Group provided necessary offset to base solutions which continue to be impacted by tariff-related uncertainty

  80% confidence

• The Walmart announcement increased pipeline interest in Intelligent Labels

  80% confidence

• High-value categories in Solutions Group make up 60% of the portfolio

  80% confidence

• Ongoing investments in digital capabilities, automation, and AI will enable additional operational productivity and fixed cost innovation, strengthen service and quality, shorten innovation cycles and provide more data-driven solutions

  80% confidence

• Higher working capital was due to high-value category mix, and CapEx will support both productivity and future capacity

  80% confidence

• Company delivered adjusted EPS of $9.53 and $707 million of adjusted free cash flow for 2025, demonstrating the durability of the franchise and ability to activate multiple levers across a range of macro scenarios

  80% confidence

• Expect restructuring savings of approximately $50 million as the company continues to execute productivity playbook, and expect normalization of majority of 2025 temporary savings related to lower incentive compensation costs

  80% confidence

• The company does not anticipate an increase in customer acquisition costs and feels confident in paper supply risk management

  80% confidence

• I do not anticipate an increase in customer acquisition costs and feel confident in the company's paper supply risk management

  80% confidence

• Does not anticipate an increase in customer acquisition costs

  80% confidence

• Base solutions continue to be impacted by tariff-related uncertainty

  80% confidence

• Restructuring benefits expected to be somewhat balanced across the year

  80% confidence

• Given key economic indicators remain largely consistent with 2025 levels, we are not planning for any macroeconomic tailwinds in the near term

  80% confidence

• Key economic indicators remain largely consistent with 2025 levels, no macroeconomic tailwinds planned in the near term

  80% confidence

• Pricing typically follows raw material input cost changes, with productivity actions aimed at offsetting wage inflation

  80% confidence

• In Q4, the company delivered solid adjusted earnings per share of $2.45, up 3% compared to prior year

  80% confidence

• High-value categories in Solutions Group provided a necessary offset to base solutions, which continue to be impacted by tariff-related uncertainty

  80% confidence

• The temporary savings headwind is on an order of magnitude probably similar to the size of the restructuring actions, approximately $50 million

  80% confidence

• Given key economic indicators remain largely consistent with 2025 levels, the company is not planning for any macroeconomic tailwinds in the near term

  80% confidence