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

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

  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

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

  80% confidence

• The Walmart announcement increased pipeline interest in Intelligent Labels

  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 are a number of points above average margin, significantly above the base categories as well

  80% confidence

• Restructuring benefits expected to be somewhat balanced across the year

  80% confidence

• High-value categories helped balance base categories, which were down low single digits in the quarter on softer customer volumes

  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

• 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

• High-value categories are a number of points above our average margin, certainly significantly above the base categories as well

  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

• Compliance enforcement in general retail expected to provide a tailwind

  80% confidence

• Intelligent Labels growth rate in 2026 anticipated to be above what was delivered in 2025

  80% confidence

• Expects compliance enforcement in general retail to provide a tailwind and mentioned expanded logistics pilots with new customers

  80% confidence

• Compliance enforcement in general retail is expected to provide a tailwind, and the company is expanding logistics pilots with new customers

  80% confidence

• Base volumes were a bit soft in the quarter

  80% confidence

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

  80% confidence

• Does not anticipate an increase in customer acquisition costs

  80% confidence

• 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

• Does not anticipate an increase in customer acquisition costs and feels confident in the company's paper supply risk management

  80% confidence

• Walmart announcement increased pipeline interest for Intelligent Labels

  80% confidence

• Walmart announcement increased pipeline interest for Intelligent Labels

  80% confidence

• Base solutions continue to be impacted by tariff-related uncertainty

  80% confidence

• Key economic indicators remain largely consistent with 2025 levels, no macroeconomic tailwinds planned in the near term

  80% confidence

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

  80% confidence

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

  80% confidence

• Materials Group high-value categories now represent 38% of the segment's portfolio with Intelligent Label delivering high single-digit growth

  80% confidence

• Plans for organic growth acceleration include new customer acquisition, faster innovation cycles, and leveraging digital and AI investments

  80% confidence

• The temporary savings headwind is on an order of magnitude probably similar to the size of the restructuring actions, approximately $50 million

  80% confidence