Avery Dennison Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Avery Dennison Corporation AVY has delivered third-quarter 2025 adjusted earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.32. The bottom line increased 1.7% year over year, driven by productivity gains.

Including one-time items, the company reported earnings per share (EPS) of $2.13 compared with the year-ago quarter’s $2.25.

Avery Dennison’s Q3 Revenues & Gross Profit Improve Y/Y

Total revenues grew 1.5% year over year to $2.22 billion and beat the Zacks Consensus Estimate of $2.21 billion.
The cost of sales grew 1.5% year over year to $1.58 billion. The gross profit improved 1.3% year over year to $635 million. The gross margin came in at 28.7%, flat with the year-ago quarter.

Marketing, general and administrative expenses were $354 million compared with the $347 million in the year-ago quarter. The adjusted operating profit was around $281 million compared with the prior-year quarter’s $280 million. The adjusted operating margin was 12.7% compared with the year-ago quarter’s 12.8%.

AVY’s Q3 Segmental Highlights

Revenues in the Materials Group segment increased 1.2% year over year to $1.52 billion. Our estimate was $1.51 billion. On an organic basis, sales dipped 1.9%. The gains from modest volume growth were offset by deflation-related price reductions. We predicted organic sales to inch up 0.1%. The segment’s adjusted operating profit grew 3.6% year over year to $230 million. Our estimate was $219 million.

Revenues in the Solutions Group were up 2% year over year to $699.5 million. We estimated revenues of $695 million for this segment. On an organic basis, sales grew 3.6%. Our model predicted 0.2% growth. The segment’s adjusted operating income decreased 9.9% year over year to $69.7 million. Our estimate was $74 million.

Avery Dennison’s Cash & Debt Position

The company returned $670 million in cash to shareholders through share repurchases and dividend payments in the first nine months of 2025. AVY repurchased 2.5 million shares throughout the period.

Avery Dennison ended the quarter with cash and cash equivalents of $536 million compared with $213 million at the end of the year-ago quarter. The company’s long-term debt was $3.20 billion at the end of the quarter, up from $2.04 billion at the end of the third quarter of 2024.

AVY’s Guidance for Q4

The company expects adjusted EPS between $2.35 and $2.45 for fourth-quarter 2025.

Avery Dennison Stock’s Price Performance

AVY shares have dipped 19.6% in the past year compared with the industry’s decline of 33.8%.

AVY’s Zacks Rank

Avery Dennison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Industrial Product Stocks Awaiting Results

AptarGroup, Inc. ATR is scheduled to release third-quarter 2025 results on Oct. 30. The Zacks Consensus Estimate for ATR’s third-quarter 2025 earnings is pegged at $1.57 per share, indicating a year-over-year rise of 5.4%.

The consensus estimate for AptarGroup’s top line is pegged at $953 million, indicating a rise of 4.7% from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 8.3%.

Sealed Air Corporation SEE, scheduled to release third-quarter 2025 results on Nov. 4, has a trailing four-quarter average surprise of 19%. The Zacks Consensus Estimate for Sealed Air’s third-quarter 2025 earnings is pegged at 68 cents per share, implying a year-over-year dip of 13.9%.

The consensus estimate for Sealed Air’s top line is pegged at $1.31 billion, indicating a fall of 2.4% from the prior-year reported figure.

Silgan Holdings SLGN is scheduled to release third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for Silgan’s third-quarter 2025 earnings is pegged at $1.21 per share, suggesting a flat year-over-year bottom line.

The consensus estimate for Silgan’s top line is pegged at $1.93 billion, indicating a rise of 10.5% from the prior year’s actual. SLGN has a trailing four-quarter average earnings surprise of 1.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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