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Jun 28, 2025
Avery Dennison Q2 2025 Earnings Report
Avery Dennison reported steady Q2 2025 performance with EPS slightly above expectations despite slight revenue decline.
Key Takeaways
Avery Dennison delivered solid Q2 2025 results with EPS slightly above expectations. Revenue declined modestly due to weaker apparel and retail demand, but strength in high-value categories and productivity improvements offset some of the trade policy impacts.
Reported EPS was $2.41; adjusted EPS was $2.42, slightly exceeding expectations.
Revenue declined 0.7% year-over-year to $2.22 billion due to weaker apparel and retail demand.
Net income rose to $189 million, reflecting improved profitability despite trade headwinds.
High-value categories like Intelligent Labels and productivity initiatives helped offset weaker base categories.
Revenue by Segment
Forward Guidance
Avery Dennison expects Q3 2025 EPS to range between $2.14 and $2.30, with adjusted EPS expected between $2.24 and $2.40, reflecting continued cost discipline and productivity initiatives amid uncertain trade policy impacts.
Positive Outlook
- Productivity initiatives expected to continue driving efficiency gains
- High-value categories expected to maintain growth momentum
- Solid balance sheet with net debt to adjusted EBITDA at 2.3x
- Strong capital return policy with $503M returned to shareholders YTD
- Sustained gross margin improvement despite raw material costs
Challenges Ahead
- Uncertainty around trade policy changes may pressure demand
- Apparel and retail demand weakness expected to persist
- Base categories expected to remain under pressure
- Potential raw material cost fluctuations
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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