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Avery Dennison announces second quarter 2026 results
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Monday, 03 August, 2026, 16 : 00 PM [IST]
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Ohio, USA
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Avery Dennison Corporation has announced preliminary, unaudited results for its second quarter ended June 30, 2026. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year.
“We delivered very strong second quarter results, marked by stronger-than-anticipated sales growth, solid margin expansion and adjusted EPS of $2.89, reflecting the strength of our portfolio and our team’s execution excellence. Our focus on innovation and service-led differentiation continues to deliver for our customers, driving strong organic sales growth across both our high-value categories and base businesses. We continue to leverage our productivity playbook to expand margins and improve earnings growth while returning capital to shareholders. I am proud of our global team. Their agility and operational excellence continue to deliver strong performance, as we build on this momentum for the remainder of 2026 and beyond,” said Deon Stander, president and CEO.
Second quarter 2026 results:
Materials Group - Reported sales increased 15.9 percent to $1.8 billion. Sales were up 11.5 percent ex. currency. Sales up 9.7 percent on an organic basis. Volume/mix growth of high single digits and price up low single digits. High-value categories up mid-single digits. Base categories up low double digits. Reported operating margin of 15.6 percent. Adjusted operating margin (non-GAAP) of 15.8 percent, up 20 basis points. Adjusted EBITDA margin (non-GAAP) of 18.0 percent, up 20 basis points, as volume, productivity and the net benefit of pricing and raw material costs, including raw material re-engineering, were partially offset by mix and higher employee-related costs.
Solutions Group - Reported sales decreased 0.5 percent to $667 million. Sales were up 2.6 percent ex. currency. Sales up 2.6 percent on an organic basis. High-value categories up low single digits. Base categories up low single digits. Overall apparel categories up high single digits. Reported operating margin of 8.9 percent. Adjusted operating margin of 11.5 percent, up 150 basis points. Adjusted EBITDA margin of 18.6 percent, up 150 basis points, as productivity was partially offset by higher employee-related costs.
The company continues to deploy capital in a disciplined manner, executing its long-term capital allocation strategy. During the first half of 2026, the company returned $347 million in cash to shareholders through a combination of share repurchases and dividends. The company repurchased 1.2 million shares, with payments for share purchases totalling $198 million. Net of dilution from long-term incentive awards, the company’s share count at the end of the second quarter was down 2.1 million compared to the same time last year. The company’s balance sheet remains strong. Net debt to adjusted EBITDA (non-GAAP) was 2.3x at the end of the second quarter.
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