Avery Dennison Q3 2026 slides: underlying growth beats headline

Avery Dennison (NYSE: AVY) is offering to buy back up to $225 million of its debt. The tender offers target two series of notes, with different maturity dates and fixed spreads. The offers expire on November 16, 2026, and are subject to conditions. BofA Securities and PNC Capital Markets are managing the offers.

Avery Dennison targets 5% annual sales growth (excluding currency) and a 17% adjusted EBITDA margin by 2028, up from 16.4% in 2025. It also aims for 10% annual adjusted EPS growth. Intelligent Labels sales are expected to grow 15% or more, contributing 1.5 percentage points to annual sales growth. High-value categories made up 45% of 2025 sales, up from 33% in 2019, according to the company.

Avery Dennison reported Q3 2026 net sales of $2.33 billion, up 5.2% YoY, with organic sales growth of 3.7%. Net income rose 2% to $169.7 million, and adjusted EPS increased 2.1% to $2.42. Materials Group sales grew 8.5%, while Solutions Group sales declined 1.8%. The company expects FY26 adjusted EPS of $10.10-$10.24, navigating inflation and higher costs.

Avery Dennison (AVY) reported Q3 earnings, with Materials Group adjusted EBITDA up slightly but margins down. Solutions Group sales fell 1.8%, while EBITDA rose. Intelligent Labels sales grew, with apparel and retail up 10%. The company narrowed full-year adjusted EPS guidance to $10.10-$10.24. AVY expects $65M in restructuring savings for 2026 and free cash flow conversion above 100% of net income.

Avery Dennison (AVY) reported Q3 2026 organic sales up 4%, with adjusted EPS impacted by customer inventory destocking. Materials Group margins declined due to cost pressures, while Solutions Group saw 1% growth. Walmart's RFID program delay pushed commercial ramp to 2027. Raw material and wage inflation persisted. Management expects stable raw material costs and robust growth in food intelligent labels for 2027.

Avery Dennison reported Q3 2026 with 6% organic sales growth and 8% adjusted EPS growth. Materials Group saw slower inventory destocking, while Intelligent Labels had mixed performance. Solutions Group expanded margins by 80 basis points. Full-year adjusted EPS guidance was narrowed to $10.10-$10.24. Management expects 2027 growth from food segment and Walmart RFID program. Free cash flow conversion is targeted above 100%.