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Jun 30, 2025
ACCO Brands Q2 2025 Earnings Report
ACCO Brands reported its second quarter 2025 financial results, with net sales and adjusted EPS aligning with their outlook, despite initial disruptions from tariffs. The company continued to realize significant cost savings from its multi-year program and saw sequential improvements in trends throughout the quarter.
Key Takeaways
ACCO Brands reported second quarter net sales of $394.8 million and adjusted earnings per share of $0.28, both within the company's outlook. The quarter was impacted by tariff-related disruptions, but trends improved sequentially. The company achieved over $40 million in cumulative cost savings from its multi-year program and saw growth in gaming accessories, partially offsetting softer demand in other areas.
Net sales for the second quarter were $394.8 million, a 9.9% decrease from the prior year, but within the company's outlook.
Diluted earnings per share (EPS) were $0.31, and adjusted EPS was $0.28, both within the provided outlook.
The company realized over $40 million in cumulative cost savings from its multi-year cost reduction program.
Operating income significantly improved to $33.0 million compared to a loss of $111.2 million in the prior year, which included large impairment charges.
Revenue by Segment
Forward Guidance
ACCO Brands provided a cautious outlook for the full year and third quarter of 2025, reflecting ongoing softness in demand due to evolving trade policies and discretionary spending. However, they anticipate trends to improve in the second half of the year, driven by strategic initiatives and cost optimization.
Positive Outlook
- Expects sales trends to moderately improve in the third quarter due to stabilizing economies and a weakening dollar.
- Accelerating momentum in new product development with an exciting pipeline of innovative products launching in the second half of the year.
- Disciplined cost management and operational optimization efforts are expected to drive enhanced long-term shareholder value.
- Building a resilient organization well-positioned to capitalize on opportunities as market conditions improve.
- Confident in their long-term strategy to improve revenue trends and optimize cost structure.
Challenges Ahead
- Full year reported sales are expected to be down in the range of 7.0% to 8.5%.
- Third quarter reported sales are expected to be down within a range of 5.0% to 8.0%.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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