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Sep 27
Avery Dennison Q3 2025 Earnings Report
Delivered another solid quarter with earnings above expectations despite a dynamic environment.
Key Takeaways
Avery Dennison reported modest revenue growth in Q3 2025 with stronger performance from the Solutions Group. Net income declined year-over-year, but adjusted EPS slightly increased. Free cash flow improved significantly versus last year.
Revenue grew to $2.22 billion, up 1.5% from Q3 2024.
Adjusted EPS increased to $2.37, while reported EPS was $2.13.
Net income declined to $166.3 million, an 8.5% drop YoY.
Free cash flow improved to $268.7 million from $219.4 million a year ago.
Avery Dennison
Avery Dennison
Avery Dennison Revenue by Segment
Revenue by Segment
Materials Group Revenue
CapyFin.comSolutions Group Revenue
CapyFin.com Forward Guidance
The company expects Q4 2025 reported EPS between $2.15 and $2.25, and adjusted EPS between $2.35 and $2.45.
Positive Outlook
- Disciplined capital allocation strategy remains on track.
- High-value segments like Intelligent Labels posted growth.
- Solutions Group showed solid organic sales growth at 3.6%.
- Productivity gains contributed to margin improvements.
- Strong balance sheet with net debt to EBITDA at 2.2x.
Challenges Ahead
- Net income declined 8.5% year-over-year.
- Materials Group experienced a 1.9% drop in organic sales.
- Employee-related costs offset productivity benefits in Solutions Group.
- Adjusted operating margin slightly down from last year.
- Foreign currency headwinds impacted sales growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income