Avery Dennison Targets Adjusted EBITDA Margin of 17% or Higher in 2028
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.
How this was made
The 30-second read
Why it matters
The new margin guidance could trigger a re-rating of the stock, especially if analysts adjust earnings forecasts.
Market read
Guidance lift is a primary corporate disclosure that may influence AVY's share price and sector peers.
What to watch
Potential supply-chain disruptions or macro slowdown could impede achieving the 2028 targets.
Background
Avery Dennison is a global materials science and labeling company; the guidance update follows its 2023-2028 strategic plan.
Ticker impact
Avery Dennison disclosed new 2028 adjusted EBITDA margin target of at least 17% and 5% annual sales growth, updating its 2023-2028 financial framework.
likely upside as investors price in higher margin expectations
Margin target exceeds 2025 level, indicating operational improvement; markets typically reward upward guidance.
Market effects
Sets a higher profitability benchmark for the packaging and labeling sector.
U.S. investors may view the company more favorably, modestly boosting sector sentiment.
Limited to investors tracking Avery Dennison and related supply-chain peers.
Counterpoint
Higher margin targets may be overly optimistic if raw material costs rise.
Key entities
- CompanyAvery Dennison
Materials science and labeling solutions provider.
