Avery Dennison Earnings Beat Estimates in Q4, Revenues Rise Y/Y

Avery Dennison Corporation AVY has delivered adjusted earnings of $2.45 per share in fourth-quarter 2025, beating the Zacks Consensus Estimate of $2.40. The bottom line increased 2.9% year over year.

Including one-time items, the company has reported earnings per share (EPS) of $2.15 compared with the year-ago quarter’s $2.16.

Avery Dennison’s Gross Margin Improves Y/Y in Q4

Total revenues moved up 3.9% year over year to $2.27 billion but missed the Zacks Consensus Estimate of $2.29 billion.

The cost of sales in the quarter improved 2.8% year over year to $1.62 billion. The gross profit rose 6.8% year over year to $651 million. The gross margin came in at 28.7%, up from the prior-year quarter’s 27.9%.

Marketing, general and administrative expenses were $369 million compared with $329 million in the year-ago quarter. The adjusted operating profit was $281.5 million compared with the prior-year quarter’s $280 million. The adjusted operating margin was 12.4% compared with 12.8% in the prior-year quarter.

AVY’s Segments Performance

Revenues in the Materials Group segment increased 5.1% year over year to $1.55 billion in the reported quarter. The reported figure came in line with our estimate. On an organic basis, sales dip 0.9%. We predicted organic sales to dip 0.4%.

The segment’s adjusted operating profit increased 0.8% year over year to $219 million. Our estimate was $237 million.
Revenues in the Solutions Group moved up 1.5% year over year to $724 million. We estimated revenues of $745 million for this segment. On an organic basis, sales improved 1.3% year over year. Our model predicted a rise of 1.2%.

The segment’s adjusted operating income remained flat year over year at $81 million. Our estimate was $69.5 million.

Avery Dennison’s Cash & Debt Position

The company returned $861 million in cash to shareholders through share repurchases and dividend payments in 2025. AVY repurchased 3.2 million shares throughout the year.

Avery Dennison ended 2025 with cash and cash equivalents of $203 million compared with $329 million at the end of the prior year.

The company’s long-term debt was $3.21 billion at the end of 2025, up from $2.56 billion at the end of 2024. Its net-debt-to-adjusted-EBITDA ratio was 2.4X.

AVY realized approximately $60 million in pre-tax savings from restructuring (net of transition costs) in 2025. The company also incurred pre-tax restructuring charges of around $47 million.

AVY’s 2025 Performance

Adjusted EPS increased 1.1% year over year to $9.53 in 2025 and topped the Zacks Consensus Estimate of $9.50. Including one-time items, EPS was $8.79 in 2025, up from $8.73 in 2024.

Total revenues improved 1.1% year over year to $8.86 billion. The top line figure missed the Zacks Consensus Estimate of $8.88 billion.

Avery Dennison’s 2026 Guidance

The company expects adjusted EPS between $2.40 and $2.46 for the first quarter of 2026.

Avery Dennison Stock’s Price Performance

AVY shares have gained 4.5% in the past year against the industry’s decline of 5.3%.

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

Crown Holdings CCK is set to release fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Crown Holdings’ fourth-quarter 2025 earnings is pegged at $1.69 per share, suggesting year-over-year growth of 6.3%. The consensus estimate for Crown Holdings’ revenues is pegged at $3.05 billion, indicating a 5% increase from the prior-year quarter.

Silgan Holdings Inc. SLGN is also set to report fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Silgan Holdings’ fourth-quarter 2025 earnings is pegged at 65 cents per share, suggesting a year-over-year decrease of 23.5%. The consensus estimate for Silgan Holdings’ revenues is pegged at $1.46 billion, indicating a 3.5% increase from the prior-year quarter’s actual.

Sealed Air Corporation SEE is scheduled to release fourth-quarter 2025 results on March 2. The Zacks Consensus Estimate for Sealed Air’s fourth-quarter 2025 earnings is pegged at 72 cents per share, implying a year-over-year dip of 4%.

The consensus estimate for Sealed Air’s top line is pegged at $1.34 billion, indicating a fall of 2.4% from the prior-year reported figure.

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

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