Avery Dennison Corporation (NYSE:AVY) stock rose on Wednesday after posting fourth-quarter fiscal 2025 results.
The company reported fourth-quarter adjusted earnings per share of $2.45, beating the analyst consensus estimate of $2.40. Quarterly sales of $2.271 billion came in just below the Street's $2.284 billion estimate, a marginal shortfall.
Materials Group reported sales increased 5.1% to $1.5 billion, while reported sales increased 1.5% to $724 million in the Solutions Group.
Avery Dennison reported operating income of $241.1 million, lower than $263.2 million a year ago. Adjusted operating margin was 12.4%, down 40 basis points.
Adjusted EBITDA margin was 16.2%, down 20 basis points.
“Despite tariff-related impacts and softer consumer volumes, our team successfully leveraged our proven productivity playbook to maintain an adjusted EBITDA margin of 16.4% and generate over $700 million in adjusted free cash flow,” said Deon Stander, president and CEO.
During 2025, the company achieved more than $60 million in pre-tax savings from restructuring actions. It also incurred roughly $47 million in pre-tax restructuring charges during the year.
Avery Dennison exited the quarter with cash and equivalents worth $202.8 million.
“We continued to demonstrate disciplined capital allocation, balancing organic investments and the strategic acquisition of Taylor Adhesives with the return of roughly $860 million to our shareholders,” said Stander.
“Our results demonstrate the resilience of our model as we remain focused on driving outsized growth in high-value categories, accelerating innovation to advance our differentiation, delivering productivity to protect base margins, and allocating capital effectively,” Stander said in the earnings call.
Dividend
The firm announced that it has declared a quarterly cash dividend of 94 cents per share. The dividend is payable on March 18.
Outlook
Avery Dennison said it expects first-quarter GAAP earnings of $2.27 to $2.33 per share, below analysts’ estimate of $2.46.
The company said it expects first-quarter adjusted earnings of $2.40 to $2.46 per share, compared with analysts’ estimate of $2.43.
“Given key economic indicators remain largely consistent with 2025 levels, we are not planning for any macroeconomic tailwinds in the near term,” Stander added.
AVY Price Action: Avery Dennison shares were up 3.49% at $193.34 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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