Avery Dennison Q4 revenue slightly misses on deflation impact

Overview

• Materials science firm's Q4 revenue slightly missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company returned $191 mln to shareholders through dividends and share repurchases in Q4

Outlook

• Avery Dennison expects 1Q26 reported EPS of $2.27 to $2.33

• Company forecasts 1Q26 adjusted EPS of $2.40 to $2.46

• Company cites global economic conditions and tariffs as factors affecting future results

Result Drivers

• HIGH-VALUE CATEGORIES - Avery Dennison reported growth in high-value categories, which now represent 45% of total revenue, contributing to overall performance

• PRODUCTIVITY IMPROVEMENTS - Benefits from productivity helped offset higher employee-related costs, maintaining adjusted EBITDA margins

• DEFLATION IMPACT - Deflation-related price reductions offset volume/mix growth in the Materials Group, affecting sales

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

• Wall Street's median 12-month price target for Avery Dennison Corp is $210.00, about 12.4% above its February 3 closing price of $186.82

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBwc72H7Xa

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