Avery Dennison outlines 6% Q1 2026 EPS growth target as high-value category mix accelerates
View original at seekingalpha.comAvery Dennison outlines 6% Q1 2026 EPS growth target as high-value category mix accelerates Earnings Call Insights: Avery Dennison Corporation (AVY) Q4 2025 MANAGEMENT VIEW * Deon Stander, President, CEO & Director, stated the company delivered adjusted EPS of $9.53 and $707 million of adjusted free cash flow for 2025,…
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Walmart rollout would ramp in Q4 2026 and accelerate into 2027
80% confidenceApparel business saw a 7% decline, greater than anticipated, primarily due to changes in retailer ordering behavior amid tariff uncertainty
80% confidenceThe temporary savings headwind is on an order of magnitude basis probably pretty similar to the size of the restructuring actions, that $50 million
80% confidenceDoes not anticipate an increase in customer acquisition costs and feels confident in the company's paper supply risk management
80% confidenceThe Walmart announcement increased pipeline interest, indicating positive market reception
80% confidenceI'm not happy with the way our organic growth trajectory has been over the last couple of years
80% confidenceHigh-value categories in Solutions Group make up 60% of the portfolio
80% confidenceOngoing 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% confidenceThe company delivered adjusted EPS of $9.53 and $707 million of adjusted free cash flow for 2025
80% confidenceHigh-value categories are a number of points above average margin, significantly above the base categories as well
80% confidenceRestructuring benefits expected to be somewhat balanced across the year
80% confidenceOngoing 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% confidenceThe temporary savings headwind is on an order of magnitude basis probably pretty similar to the size of the restructuring actions, that $50 million
80% confidenceCompany 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% confidenceHigh-value categories are a number of points above our average margin, certainly significantly above the base categories as well
80% confidenceCompliance enforcement in general retail expected to provide a tailwind
80% confidenceGrowth acceleration will be driven by new customer acquisition, faster innovation cycles, and leveraging digital and AI investments
80% confidenceThe company does not anticipate an increase in customer acquisition costs and feels confident in paper supply risk management
80% confidenceI do not anticipate an increase in customer acquisition costs and feel confident in the company's paper supply risk management
80% confidenceHigh-value categories provided necessary offset to base solutions, which continue to be impacted by tariff-related uncertainty
80% confidenceThe 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% confidenceDoes not anticipate an increase in customer acquisition costs and feels confident in the company's paper supply risk management
80% confidenceWe're anticipating Intelligent Labels growth rate in 2026 to be above what we delivered in 2025, and expects high-value categories to grow at mid-single-digit plus
80% confidenceWalmart announcement increased pipeline interest for Intelligent Labels
80% confidenceBase categories were down low single digits in Q4, lower than expected, on softer customer volumes
80% confidenceWalmart announcement increased pipeline interest for Intelligent Labels
80% confidenceBase solutions continue to be impacted by tariff-related uncertainty
80% confidenceOngoing 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% confidenceHigh-value categories in Solutions Group provided a necessary offset to base solutions, which continue to be impacted by tariff-related uncertainty
80% confidenceAnticipating Intelligent Labels growth rate in 2026 to be above what was delivered in 2025, with high-value categories expected to grow at mid-single-digit plus
80% confidence