ACCO BRANDS REPORTS THIRD QUARTER RESULTS
ACCO BRANDS Corp (ACCO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 News Release ACCO BRANDS REPORTS THIRD QUARTER RESULTS • Reported net sales of $380 million, in line with outlook • Diluted EPS of $0.12 and Adjusted diluted EPS of $0.28, both include $0.11 per share in net tariff refunds • Closed on the acquisition of Trust on Octo
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide fresh data for traders to reassess valuation.
Market read
First‑report earnings with guidance lift makes this a notable event for ACCO investors.
What to watch
Potential softness in technology peripherals could temper earnings growth despite the guidance lift.
ACCO Brands reports third-quarter sales in line with outlook, tariff-refund-supported earnings growth, and raises full-year 2026 outlook.
Reported sales declined 0.9 percent and comparable sales declined 6.2 percent amid technology-peripheral softness, while tariff refunds, cost savings, acquisition contributions and cash generation supported earnings, margins and the raised outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third quarter net salesGAAP | $380.3M | – | (0.9)% |
| Third quarter comparable salesnon-GAAP | (6.2)% | – | (6.2)% |
| Third quarter gross profitGAAP | $135.8M | – | 7.3 % |
| Third quarter gross profit marginGAAP | 35.7 % | – | – |
| Third quarter selling, general and administrative expensesGAAP | $93.7M | – | 7.2 % |
| Third quarter operating incomeGAAP | $30.3M | – | 16.5 % |
| Third quarter operating marginGAAP | 8.0 % | – | – |
| Third quarter adjusted operating incomenon-GAAP | $47.8M | – | 21.9% |
| Third quarter adjusted operating marginnon-GAAP | 12.6 % | – | 240 |
| Third quarter net incomeGAAP | $11.5M | – | NM |
| Third quarter diluted income per shareGAAP | $0.12 | – | NM |
| Third quarter adjusted net incomenon-GAAP | $27.2M | – | – |
| Third quarter adjusted EPSnon-GAAP | $0.28 | – | – |
| Third quarter adjusted EBITDAnon-GAAP | $55.4M | – | 21.0 % |
| Third quarter adjusted EBITDA as a % of Net Salesnon-GAAP | 14.6 % | – | – |
| Third quarter net cash provided by operating activitiesGAAP | $131.4M | – | – |
| Third quarter free cash flownon-GAAP | $127.6M | – | – |
| Nine months net salesGAAP | $1.14B | – | 3.9 % |
| Nine months comparable salesnon-GAAP | (3.7)% | – | (3.7)% |
| Nine months gross profitGAAP | $376.7M | – | 5.8 % |
| Nine months gross profit marginGAAP | 33.1 % | – | – |
| Nine months operating incomeGAAP | $50.2M | – | (4.0)% |
| Nine months adjusted operating incomenon-GAAP | $107.6M | – | 15.5% |
| Nine months net incomeGAAP | $45M | – | 125.0 % |
| Nine months diluted income per shareGAAP | $0.47 | – | 123.8 % |
| Nine months adjusted net incomenon-GAAP | $56.4M | – | – |
| Nine months adjusted EPSnon-GAAP | $0.59 | – | – |
| Nine months adjusted EBITDAnon-GAAP | $132.1M | – | 9.8 % |
| Nine months adjusted EBITDA as a % of Net Salesnon-GAAP | 11.6 % | – | – |
| Nine months net cash provided by operating activitiesGAAP | $99.6M | – | – |
| Nine months free cash flownon-GAAP | $89M | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $174.7M | – | – |
| Total debt per balance sheet as of September 30, 2026GAAP | $878.1M | – | – |
| Net debt as of September 30, 2026non-GAAP | $706.5M | – | – |
| Consolidated leverage ratio as of September 30, 2026non-GAAP | 3.6x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ACCO Brands Americas, third quarterGrowth from the EPOS acquisition of 2.0 percent and favorable foreign currency of 1.0 percent was more than offset by a 6.4 percent comparable sales decline. Lower demand for technology peripherals was offset by growth in Latin America. | $219.8M | – | (3.4)% |
| ACCO Brands International, third quarterThe EPOS acquisition increased sales by 9.2 percent and unfavorable foreign exchange reduced sales 0.4 percent. Comparable sales were down 6.0 percent year-over-year, reflecting lower demand for technology peripherals and softness in Australia. | $160.5M | – | 2.8 % |
| ACCO Brands Americas, nine monthsComparable sales declined 2.1 percent; currency translation contributed 1.6 percent and acquisition contributed 2.2 percent. | $661.2M | – | 1.7% |
| ACCO Brands International, nine monthsComparable sales declined 6.0 percent; currency translation contributed 3.8 percent and acquisition contributed 9.4 percent. | $477.9M | – | 7.2 % |
Full Year 2026 outlook
- Revenuereported sales to increase 4.0 percent to 6.0 percent
- NoteAdjusted EPS is expected to be $0.98 to $1.02 inclusive of $0.12 from the tariff refund.
- Note2026 free cash flow of approximately $100 million.
- NoteConsolidated leverage ratio of approximately 3.5x at year-end.
- NoteReported sales outlook is updated to include one quarter of expected sales from the acquired Trust business.
Capital returns
- Year to date, the Company has paid dividends of $20.8 million.
- The board declared a regular quarterly cash dividend of $0.075 per share on October 23, 2026, payable on December 9, 2026 to stockholders of record at the close of business on November 20, 2026.
- Cash dividends declared per common share were $0.075 for the three months ended September 30, 2026 and $0.225 for the nine months ended September 30, 2026.
- Repurchases of common stock were $— for the nine months ended September 30, 2026, compared with $(15.1) million in 2025.
What drove it
- Third-quarter net tariff refunds benefited consolidated operating income by $15.1 million, resulted in a net per share benefit of $0.11 to diluted earnings per share, and provided 400 basis points of improvement in consolidated adjusted operating margin.
- A solid back-to-school season in North America and Mexico and stabilizing Workspace Solutions trends supported sales performance.
- The EPOS acquisition contributed 4.9 percent to third-quarter consolidated sales growth and $18.8 million to third-quarter net sales change.
- Favorable foreign exchange contributed 0.4 percent to third-quarter consolidated sales growth.
- Adjusted operating income growth reflected cost savings, partly offset by lower mix.
- Trust was acquired on October 1, 2026 and is expected to expand the technology peripheral portfolio to approach $500 million of pro forma annual sales.
Concerns
- Comparable sales declined 6.2 percent in the third quarter and 3.7 percent for the nine months.
- Technology peripherals experienced softness due to global industry-wide challenges.
- Third-quarter reported net sales decreased 0.9 percent.
- International comparable sales declined 6.0 percent, reflecting lower demand for technology peripherals and softness in Australia.
- Lower mix and volume partly offset the benefit of net tariff refunds, pricing and cost savings.
- Full-year outlook assumptions include consumer demand, tariffs, global geopolitical and economic uncertainties, and fluctuations in foreign currency exchange rates.
What to watch
- Comparable-sales trends in technology peripherals and Workspace Solutions.
- Integration of Trust and delivery of synergy opportunities.
- The timing and recoverability of tariff refund claims.
- Execution against reported-sales growth guidance of 4.0 percent to 6.0 percent and adjusted EPS guidance of $0.98 to $1.02.
- Free cash flow against the approximately $100 million outlook and leverage against the approximately 3.5x year-end outlook.
Balance sheet and cash flow
- Cash and cash equivalents were $174.7 million at September 30, 2026, compared with $64.4 million at December 31, 2025.
- The cash balance of $174.7 million at quarter 3 end included cash held for the acquisition of Trust, which closed on October 1.
- Long-term debt, net was $836.8 million at September 30, 2026, compared with $806.0 million at December 31, 2025.
- Year-to-date net cash provided by operating activities was $99.6 million, compared with $38.1 million in the prior year.
- Year-to-date additions to property, plant and equipment were $(10.6) million, compared with $(12.3) million in the prior year.
- Year-to-date free cash flow was $89.0 million including $21.3 million of tariff refunds, compared with $25.8 million in the prior year.
- The consolidated leverage ratio was 3.6x as of September 30, 2026.
Analysis
Third-quarter sales were $380.3 million, down (0.9)% from $383.7 million, as a 6.2 percent comparable-sales decline more than offset 4.9 percent growth from the EPOS acquisition and 0.4 percent from favorable foreign exchange. The company cited global industry-wide challenges in technology peripherals. Americas revenue declined (3.4)% and International revenue increased 2.8 percent, but both segments recorded comparable-sales declines, with International also affected by softness in Australia.
Profitability improved materially on reported and adjusted bases. Operating income rose to $30.3 million from $26.0 million, while adjusted operating income increased to $47.8 million from $39.2 million. Gross profit margin rose to 35.7 % from 33.0 %, and adjusted operating margin increased to 12.6 % from 10.2 %. Net tariff refunds benefited operating income by $15.1 million, diluted earnings per share by $0.11, and consolidated adjusted operating margin by 400 basis points. Cost savings also supported adjusted operating income, partly offset by lower mix.
GAAP net income was $11.5 million, or $0.12 per diluted share, compared with $4.0 million, or $0.04 per diluted share. Adjusted net income was $27.2 million and adjusted EPS was $0.28, compared with $19.5 million and $0.21. Nine-month reported net income increased to $45.0 million from $20.0 million, benefiting from a $33.8 million bargain purchase gain related to the preliminary purchase price allocation, while nine-month adjusted operating income rose to $107.6 million from $93.2 million.
Cash generation strengthened, with third-quarter free cash flow of $127.6 million and year-to-date free cash flow of $89.0 million, compared with $66.0 million and $25.8 million, respectively. Cash and cash equivalents were $174.7 million, including cash held for the Trust acquisition, and net debt was $706.5 million. The company paid $20.8 million in dividends year to date and reported a consolidated leverage ratio of 3.6x.
The company raised its full-year outlook to include one quarter of expected Trust sales. It expects reported sales to increase 4.0 percent to 6.0 percent, adjusted EPS of $0.98 to $1.02 inclusive of $0.12 from the tariff refund, free cash flow of approximately $100 million, and year-end leverage of approximately 3.5x. The reported period leaves technology-peripheral demand, comparable-sales recovery, Trust integration and tariff-refund timing as central operating variables.
Management, verbatim
We delivered third quarter sales consistent with our outlook, driven by a solid back-to-school season in both North America and Mexico and stabilizing trends in Workspace Solutions. Adjusted EPS included net tariff refunds, with underlying operations in line with outlook. We generated strong cashflows and continue to pay down debt, ending September with a consolidated leverage ratio of 3.6x.
Tom Tedford, President and Chief Executive Officer
Technology peripherals remain our strongest long-term growth opportunity, and we closed on the acquisition of Trust, which will expand our tech peripheral portfolio to approach $500 million of pro forma annual sales. With Kensington, PowerA, EPOS and Trust, we now have a scaled platform across consumer and enterprise channels in large growth categories. Our focus is integrating these brands and delivering synergy opportunities.
Tom Tedford, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Fourth-quarter 2026 revenue, gross margin, operating expenses and tax-rate guidance were not provided.
- Full-year 2026 gross-margin, operating-expense and tax-rate guidance were not provided.
- Third-quarter and nine-month share-repurchase authorization, remaining authorization and share count repurchased were not provided.
- Prior-quarter comparisons were not provided for the reported metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
ACCO Brands Corp filed a Form 8‑K reporting its third‑quarter 2026 financials and updated outlook.
Ticker impact
ACCO reported Q3 results and raised guidance for full‑year 2026, including tariff refunds and the Trust acquisition.
likely upward pressure as investors price in higher full‑year earnings.
Guidance lift combined with strong cash flow and debt reduction typically supports a price gain.
Market effects
Office supplies and technology peripherals sector may see modest upside from ACCO's growth outlook.
North America and Mexico markets could benefit from the back‑to‑school sales momentum.
Limited; impact confined to ACCO and its immediate supply chain.
Counterpoint
If the integration of Trust faces delays, the guidance raise may be overly optimistic.
Key entities
- companyACCO Brands Corp
Office products and technology peripherals manufacturer.
