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

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

  80% confidence

• High-value categories expected to grow at mid-single-digit plus

  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

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

  80% confidence

• Compliance enforcement in general retail expected to provide a tailwind

  80% confidence

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

  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

• The company does not anticipate an increase in customer acquisition costs and feels confident in paper supply risk management

  80% confidence

• I do not anticipate an increase in customer acquisition costs and feel confident in the company's paper supply risk management

  80% confidence

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

  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

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

  80% confidence

• Restructuring benefits expected to be somewhat balanced across the year

  80% confidence

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

  80% confidence

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

  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

• Company feels confident in paper supply risk management

  80% confidence

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

  80% confidence

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

  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

• 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

• 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

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

  80% confidence

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

  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

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

  80% confidence

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

  80% confidence