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Sep 27, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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