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Sep 30, 2025
ACCO Brands Q3 2025 Earnings Report
ACCO Brands reported third quarter results, with net sales of $384 million, expanded gross margin, and adjusted earnings per share of $0.21, in line with the company's outlook.
Key Takeaways
ACCO Brands reported third quarter 2025 financial results, with net sales of $383.7 million, an 8.8% decrease from the prior year, primarily due to softer global demand. Despite the sales decline, the company expanded its gross margin by 50 basis points and achieved adjusted EPS of $0.21, meeting its outlook. Operating income was $26.0 million, slightly down from $26.3 million in the prior year, while net income was $4.0 million. The company continues to execute its cost reduction program, which has yielded over $50 million in savings.
Net sales for the third quarter were $383.7 million, an 8.8% decrease from $420.9 million in the prior year, primarily due to softer global demand.
Gross margin expanded by 50 basis points, and selling, general and administrative expenses were down compared to the prior year.
Reported earnings per share (EPS) were $0.04, and adjusted EPS was $0.21, which was in line with the company's outlook.
The multi-year cost reduction program has generated over $50 million in savings, demonstrating strong operational discipline.
Revenue by Segment
Forward Guidance
For the full year 2025, ACCO Brands expects reported sales to be down in the range of 7.0% to 8.5% and adjusted EPS to be between $0.83 and $0.90. Adjusted free cash flow is projected to be in the range of $90 million to $100 million.
Positive Outlook
- Expects sales trends to improve in the fourth quarter due to favorable foreign exchange and growth in technology accessories.
- Confident in ability to deliver future value creation for shareholders.
- Teams continue to execute on cost management initiatives.
- Innovation is core to strategy, with fourth quarter new product launches expected to abate secular headwinds.
- Evaluating strategic opportunities that align with growth objectives.
Challenges Ahead
- Reported sales for the full year are expected to be down in the range of 7.0% to 8.5%.
- Navigating an uncertain demand environment.
- Sales were lower than expected in the third quarter due to soft global demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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