Avery Dennison outlines 6% Q1 2026 EPS growth target as high-value category mix accelerates

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• The Walmart announcement increased pipeline interest, indicating positive market reception

  80% confidence

• I'm not happy with the way our organic growth trajectory has been over the last couple of years

  80% confidence

• High-value categories have margins a number of points above the company's average, and significantly above base categories

  80% confidence

• High-value categories margins are a number of points above company average, and significantly above base categories

  80% confidence

• Solutions Group high-value categories make up 60% of portfolio with Vestcom growing over 10%

  80% confidence

• Expect restructuring savings of approximately $50 million as the company continues to execute productivity playbook, and expect normalization of majority of 2025 temporary savings related to lower incentive compensation costs

  80% confidence

• Growth acceleration will be driven by new customer acquisition, faster innovation cycles, and leveraging digital and AI investments

  80% confidence

• We continue to drive ongoing productivity all the time in terms of ELS savings, looking at reducing scrap, being more efficient in our operations

  80% confidence

• The 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% confidence

• Walmart announcement increased pipeline interest for Intelligent Labels

  80% confidence

• Base categories were down low single digits in Q4, lower than expected, on softer customer volumes

  80% confidence

• Restructuring benefits are expected to be somewhat balanced across the year

  80% confidence

• Ongoing 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% confidence

• Anticipating 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

• Restructuring savings of approximately $50 million expected as company continues to execute productivity playbook

  80% confidence

• Intelligent Labels delivered high single-digit growth

  80% confidence

• Expects restructuring benefits to be somewhat balanced across the year

  80% confidence

• Given key economic indicators remain largely consistent with 2025 levels, the company is not planning for any macroeconomic tailwinds in the near term

  80% confidence

• Temporary savings headwind is on an order of magnitude basis probably pretty similar to the size of the restructuring actions, that $50 million

  80% confidence

• Q4 delivered solid adjusted earnings per share of $2.45, up 3% compared to prior year

  80% confidence

• Pricing typically follows raw material input cost changes, with productivity actions aimed at offsetting wage inflation

  80% confidence

• High-value categories now represent 38% of the Materials Group portfolio

  80% confidence

• The company continues to drive ongoing productivity through ELS savings, reducing scrap, and being more efficient in operations

  80% confidence

• The Walmart rollout would ramp in Q4 2026 and accelerate into 2027

  80% confidence

• Walmart rollout would ramp in Q4 2026 and accelerate into 2027

  80% confidence

• Apparel business saw a 7% decline, greater than anticipated, primarily due to changes in retailer ordering behavior amid tariff uncertainty

  80% confidence

• The company is investing in digital capabilities, automation, and AI to enable additional operational productivity, strengthen service and quality, shorten innovation cycles, and provide more data-driven solutions

  80% confidence

• High-value categories in Solutions Group provided necessary offset to base solutions which continue to be impacted by tariff-related uncertainty

  80% confidence

• Base volumes were a bit soft in the quarter, and productivity actions were used to offset wage inflation, with some onetime items and extra calendar days impacting results

  80% confidence

• The company delivered adjusted EPS of $9.53 and $707 million of adjusted free cash flow for 2025

  80% confidence