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Avery Dennison Earnings Beat Estimates in Q4, Revenues Rise Y/Y
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Key Takeaways
AVY posted Q4 adjusted EPS of $2.45, beating estimates, as revenues rose 3.9% y/y to $2.27B.
AVY expanded the gross margin to 28.7% as cost of sales improved and gross profit increased 6.8% y/y.
AVY returned $861 million to shareholders in 2025 via buybacks and dividends, repurchasing 3.2 million shares.
Avery Dennison Corporation (AVY - Free Report) has delivered adjusted earnings of $2.45 per share in fourth-quarter 2025, beating the Zacks Consensus Estimate of $2.40. The bottom line increased 2.9% year over year.
Including one-time items, the company has reported earnings per share (EPS) of $2.15 compared with the year-ago quarter’s $2.16.
Avery Dennison’s Gross Margin Improves Y/Y in Q4
Total revenues moved up 3.9% year over year to $2.27 billion but missed the Zacks Consensus Estimate of $2.29 billion.
The cost of sales in the quarter improved 2.8% year over year to $1.62 billion. The gross profit rose 6.8% year over year to $651 million. The gross margin came in at 28.7%, up from the prior-year quarter’s 27.9%.
Marketing, general and administrative expenses were $369 million compared with $329 million in the year-ago quarter. The adjusted operating profit was $281.5 million compared with the prior-year quarter’s $280 million. The adjusted operating margin was 12.4% compared with 12.8% in the prior-year quarter.
Avery Dennison Corporation Price, Consensus and EPS Surprise
Revenues in the Materials Group segment increased 5.1% year over year to $1.55 billion in the reported quarter. The reported figure came in line with our estimate. On an organic basis, sales dip 0.9%. We predicted organic sales to dip 0.4%.
The segment’s adjusted operating profit increased 0.8% year over year to $219 million. Our estimate was $237 million. Revenues in the Solutions Group moved up 1.5% year over year to $724 million. We estimated revenues of $745 million for this segment. On an organic basis, sales improved 1.3% year over year. Our model predicted a rise of 1.2%.
The segment’s adjusted operating income remained flat year over year at $81 million. Our estimate was $69.5 million.
Avery Dennison’s Cash & Debt Position
The company returned $861 million in cash to shareholders through share repurchases and dividend payments in 2025. AVY repurchased 3.2 million shares throughout the year.
Avery Dennison ended 2025 with cash and cash equivalents of $203 million compared with $329 million at the end of the prior year.
The company’s long-term debt was $3.21 billion at the end of 2025, up from $2.56 billion at the end of 2024. Its net-debt-to-adjusted-EBITDA ratio was 2.4X.
AVY realized approximately $60 million in pre-tax savings from restructuring (net of transition costs) in 2025. The company also incurred pre-tax restructuring charges of around $47 million.
AVY’s 2025 Performance
Adjusted EPS increased 1.1% year over year to $9.53 in 2025 and topped the Zacks Consensus Estimate of $9.50. Including one-time items, EPS was $8.79 in 2025, up from $8.73 in 2024.
Total revenues improved 1.1% year over year to $8.86 billion. The top line figure missed the Zacks Consensus Estimate of $8.88 billion.
Avery Dennison’s 2026 Guidance
The company expects adjusted EPS between $2.40 and $2.46 for the first quarter of 2026.
Avery Dennison Stock’s Price Performance
AVY shares have gained 4.5% in the past year against the industry’s decline of 5.3%.
Crown Holdings (CCK - Free Report) is set to release fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Crown Holdings’ fourth-quarter 2025 earnings is pegged at $1.69 per share, suggesting year-over-year growth of 6.3%. The consensus estimate for Crown Holdings’ revenues is pegged at $3.05 billion, indicating a 5% increase from the prior-year quarter.
Silgan Holdings Inc. (SLGN - Free Report) is also set to report fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Silgan Holdings’ fourth-quarter 2025 earnings is pegged at 65 cents per share, suggesting a year-over-year decrease of 23.5%. The consensus estimate for Silgan Holdings’ revenues is pegged at $1.46 billion, indicating a 3.5% increase from the prior-year quarter’s actual.
Sealed Air Corporation (SEE - Free Report) is scheduled to release fourth-quarter 2025 results on March 2. The Zacks Consensus Estimate for Sealed Air’s fourth-quarter 2025 earnings is pegged at 72 cents per share, implying a year-over-year dip of 4%.
The consensus estimate for Sealed Air’s top line is pegged at $1.34 billion, indicating a fall of 2.4% from the prior-year reported figure.
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Avery Dennison Earnings Beat Estimates in Q4, Revenues Rise Y/Y
Key Takeaways
Avery Dennison Corporation (AVY - Free Report) has delivered adjusted earnings of $2.45 per share in fourth-quarter 2025, beating the Zacks Consensus Estimate of $2.40. The bottom line increased 2.9% year over year.
Including one-time items, the company has reported earnings per share (EPS) of $2.15 compared with the year-ago quarter’s $2.16.
Avery Dennison’s Gross Margin Improves Y/Y in Q4
Total revenues moved up 3.9% year over year to $2.27 billion but missed the Zacks Consensus Estimate of $2.29 billion.
The cost of sales in the quarter improved 2.8% year over year to $1.62 billion. The gross profit rose 6.8% year over year to $651 million. The gross margin came in at 28.7%, up from the prior-year quarter’s 27.9%.
Marketing, general and administrative expenses were $369 million compared with $329 million in the year-ago quarter. The adjusted operating profit was $281.5 million compared with the prior-year quarter’s $280 million. The adjusted operating margin was 12.4% compared with 12.8% in the prior-year quarter.
Avery Dennison Corporation Price, Consensus and EPS Surprise
Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote
AVY’s Segments Performance
Revenues in the Materials Group segment increased 5.1% year over year to $1.55 billion in the reported quarter. The reported figure came in line with our estimate. On an organic basis, sales dip 0.9%. We predicted organic sales to dip 0.4%.
The segment’s adjusted operating profit increased 0.8% year over year to $219 million. Our estimate was $237 million.
Revenues in the Solutions Group moved up 1.5% year over year to $724 million. We estimated revenues of $745 million for this segment. On an organic basis, sales improved 1.3% year over year. Our model predicted a rise of 1.2%.
The segment’s adjusted operating income remained flat year over year at $81 million. Our estimate was $69.5 million.
Avery Dennison’s Cash & Debt Position
The company returned $861 million in cash to shareholders through share repurchases and dividend payments in 2025. AVY repurchased 3.2 million shares throughout the year.
Avery Dennison ended 2025 with cash and cash equivalents of $203 million compared with $329 million at the end of the prior year.
The company’s long-term debt was $3.21 billion at the end of 2025, up from $2.56 billion at the end of 2024. Its net-debt-to-adjusted-EBITDA ratio was 2.4X.
AVY realized approximately $60 million in pre-tax savings from restructuring (net of transition costs) in 2025. The company also incurred pre-tax restructuring charges of around $47 million.
AVY’s 2025 Performance
Adjusted EPS increased 1.1% year over year to $9.53 in 2025 and topped the Zacks Consensus Estimate of $9.50. Including one-time items, EPS was $8.79 in 2025, up from $8.73 in 2024.
Total revenues improved 1.1% year over year to $8.86 billion. The top line figure missed the Zacks Consensus Estimate of $8.88 billion.
Avery Dennison’s 2026 Guidance
The company expects adjusted EPS between $2.40 and $2.46 for the first quarter of 2026.
Avery Dennison Stock’s Price Performance
AVY shares have gained 4.5% in the past year against the industry’s decline of 5.3%.
Image Source: Zacks Investment Research
AVY’s Zacks Rank
Avery Dennison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Industrial Product Stocks Awaiting Results
Crown Holdings (CCK - Free Report) is set to release fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Crown Holdings’ fourth-quarter 2025 earnings is pegged at $1.69 per share, suggesting year-over-year growth of 6.3%. The consensus estimate for Crown Holdings’ revenues is pegged at $3.05 billion, indicating a 5% increase from the prior-year quarter.
Silgan Holdings Inc. (SLGN - Free Report) is also set to report fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Silgan Holdings’ fourth-quarter 2025 earnings is pegged at 65 cents per share, suggesting a year-over-year decrease of 23.5%. The consensus estimate for Silgan Holdings’ revenues is pegged at $1.46 billion, indicating a 3.5% increase from the prior-year quarter’s actual.
Sealed Air Corporation (SEE - Free Report) is scheduled to release fourth-quarter 2025 results on March 2. The Zacks Consensus Estimate for Sealed Air’s fourth-quarter 2025 earnings is pegged at 72 cents per share, implying a year-over-year dip of 4%.
The consensus estimate for Sealed Air’s top line is pegged at $1.34 billion, indicating a fall of 2.4% from the prior-year reported figure.