# Avery Dennison Corp (AVY)

Informational only - not investment advice.

CIK: 0000008818
SIC: 2670 Converted Paper & Paperboard Prods (No Contaners/Boxes)
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 26](/major-group/26/) > [SIC 2670 Converted Paper & Paperboard Prods (No Contaners/Boxes)](/industry/2670/)
Latest 10-K filed: 2026-02-25
SEC page: https://www.sec.gov/edgar/browse/?CIK=8818
Filing source: https://www.sec.gov/Archives/edgar/data/8818/000000881826000015/avy-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0000008818-26-000015 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000008818.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 8,855,500,000 USD | 2025 | verified |
| Net income | 688,000,000 USD | 2025 | verified |
| Assets | 8,801,700,000 USD | 2025 | verified |
| Free cash flow | 712,400,000 USD | 2025 | computed |
| Net margin | 7.77% | 2025 | computed |
| Revenue YoY | +1.14% | 2025 | computed |
| ROE | 30.69% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | AVY | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 7.8% | 3.1% | 69 | 14 |
| Revenue growth | 1.1% | 4.1% | 46 | 14 |
| FCF margin | 8.0% | 4.2% | 73 | 12 |
| ROE | 30.7% | 8.6% | 92 | 14 |
| ROA | 7.8% | 2.7% | 85 | 14 |
| Liabilities / equity | 2.93 | 1.97 | 77 | 14 |
| Current ratio | 1.13 | 1.54 | 15 | 14 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 26 SIC Major Group 26, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 8855500000 | USD | 2025 | 2026-02-25 |
| Net income | 688000000 | USD | 2025 | 2026-02-25 |
| Assets | 8801700000 | USD | 2025 | 2026-02-25 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000008818.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 6,086,500,000 | 6,613,800,000 | 7,159,000,000 | 7,070,100,000 | 6,971,500,000 | 8,408,300,000 | 9,039,300,000 | 8,364,300,000 | 8,755,700,000 | 8,855,500,000 |
| Net income | 320,700,000 | 281,800,000 | 467,400,000 | 303,600,000 | 555,900,000 | 740,100,000 | 757,100,000 | 503,000,000 | 704,900,000 | 688,000,000 |
| Gross profit | 1,699,700,000 | 1,812,200,000 | 1,915,500,000 | 1,904,100,000 | 1,923,300,000 | 2,312,800,000 | 2,404,200,000 | 2,277,500,000 | 2,530,700,000 | 2,546,300,000 |
| Diluted EPS | 3.54 | 3.13 | 5.28 | 3.57 | 6.61 | 8.83 | 9.21 | 6.20 | 8.73 | 8.79 |
| Operating cash flow | 582,100,000 | 645,700,000 | 457,900,000 | 746,500,000 | 751,300,000 | 1,046,800,000 | 961,000,000 | 826,000,000 | 938,800,000 | 881,400,000 |
| Capital expenditures | 176,900,000 | 190,500,000 | 226,700,000 | 219,400,000 | 201,400,000 | 255,000,000 | 278,100,000 | 265,300,000 | 208,800,000 | 169,000,000 |
| Dividends paid | 142,500,000 | 155,500,000 | 175,000,000 | 189,700,000 | 196,800,000 | 220,600,000 | 238,900,000 | 256,700,000 | 277,500,000 | 288,400,000 |
| Share buybacks | 262,400,000 | 129,700,000 | 392,900,000 | 237,700,000 | 104,300,000 | 180,900,000 | 379,500,000 | 137,500,000 | 247,500,000 | 572,300,000 |
| Assets | 4,396,400,000 | 5,136,900,000 | 5,177,500,000 | 5,488,800,000 | 6,083,900,000 | 7,971,600,000 | 7,950,500,000 | 8,209,800,000 | 8,404,200,000 | 8,801,700,000 |
| Stockholders' equity | 925,500,000 | 1,032,400,000 | 955,100,000 | 1,204,000,000 | 1,484,900,000 | 1,924,400,000 | 2,032,200,000 | 2,127,900,000 | 2,312,300,000 | 2,242,100,000 |
| Cash and cash equivalents | 195,100,000 | 224,400,000 | 232,000,000 | 253,700,000 | 252,300,000 | 162,700,000 | 167,200,000 | 215,000,000 | 329,100,000 | 202,800,000 |
| Free cash flow | 405,200,000 | 455,200,000 | 231,200,000 | 527,100,000 | 549,900,000 | 791,800,000 | 682,900,000 | 560,700,000 | 730,000,000 | 712,400,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 5.27% | 4.26% | 6.53% | 4.29% | 7.97% | 8.80% | 8.38% | 6.01% | 8.05% | 7.77% |
| Return on equity | 34.65% | 27.30% | 48.94% | 25.22% | 37.44% | 38.46% | 37.26% | 23.64% | 30.48% | 30.69% |
| Return on assets | 7.29% | 5.49% | 9.03% | 5.53% | 9.14% | 9.28% | 9.52% | 6.13% | 8.39% | 7.82% |
| Liabilities / equity | 3.75 | 3.98 | 4.42 | 3.56 | 3.10 | 3.14 | 2.91 | 2.86 | 2.63 | 2.93 |
| Current ratio | 0.95 | 1.13 | 1.15 | 1.04 | 1.25 | 1.07 | 0.99 | 1.04 | 1.08 | 1.13 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/AVY/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000008818.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-10-01 |  |  | 2.70 | reported discrete quarter |
| 2023-Q1 | 2023-04-01 |  |  | 1.49 | reported discrete quarter |
| 2023-Q2 | 2023-07-01 |  |  | 1.24 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 2,098,300,000 | 138,300,000 | 1.71 | reported discrete quarter |
| 2023-Q4 | 2023-12-30 | 2,110,500,000 | 143,100,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-30 | 2,151,300,000 | 172,400,000 | 2.13 | reported discrete quarter |
| 2024-Q2 | 2024-06-29 | 2,235,300,000 | 176,800,000 | 2.18 | reported discrete quarter |
| 2024-Q3 | 2024-09-28 | 2,183,400,000 | 181,700,000 | 2.25 | reported discrete quarter |
| 2024-Q4 | 2024-12-28 | 2,185,700,000 | 174,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-29 | 2,148,300,000 | 166,300,000 | 2.09 | reported discrete quarter |
| 2025-Q2 | 2025-06-28 | 2,220,500,000 | 189,000,000 | 2.41 | reported discrete quarter |
| 2025-Q3 | 2025-09-27 | 2,215,500,000 | 166,300,000 | 2.13 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 2,271,200,000 | 166,400,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 2,298,500,000 | 168,100,000 | 2.18 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 2,462,900,000 | 204,100,000 | 2.67 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AVY's latest 10-K: [/company/AVY/business/](/company/AVY/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AVY's latest 10-K: [/company/AVY/risk-factors/](/company/AVY/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/8818/000000881826000131/avy-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements and related notes thereto.

NON-GAAP FINANCIAL MEASURES

We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. These non-GAAP financial measures are intended to supplement the presentation of our financial results prepared in accordance with GAAP. We use these non-GAAP financial measures internally to evaluate trends in our underlying performance, as well as to facilitate comparisons with the results of competitors for quarters and year-to-date periods, as applicable. Based on feedback from investors and financial analysts, we believe that the supplemental non-GAAP financial measures we provide are also useful to their assessments of our performance and operating trends, as well as liquidity. Reconciliations of our non-GAAP financial measures from the most directly comparable GAAP financial measures are provided in accordance with Regulations G and S-K.

Our non-GAAP financial measures exclude the impact of certain events, activities or strategic decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make it more difficult to assess our underlying performance in a single period. By excluding the accounting effects, positive or negative, of certain items (e.g., restructuring charges, outcomes of certain legal matters and settlements, certain effects of strategic transactions and related costs, losses from debt extinguishments, gains or losses from curtailment or settlement of pension obligations, gains or losses on sales of certain assets, gains or losses on venture and other investments, currency adjustments due to highly inflationary economies, and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency or timing.

We use the non-GAAP financial measures described below in this MD&A.

•Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and, where applicable, currency adjustments for transitional reporting of highly inflationary economies and the reclassification of sales between segments. Additionally, where applicable, sales change ex. currency is also adjusted for the estimated impact of extra days in our fiscal year and the calendar shift resulting from extra days in the prior fiscal year. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior-period results translated at current-period average exchange rates to exclude the effect of foreign currency fluctuations. Our 2025 fiscal year began on December 29, 2024 and ended on December 31, 2025; fiscal years 2026 and beyond are coincident with the calendar year, beginning on January 1 and ending on December 31.

•Organic sales change refers to sales change ex. currency, excluding the estimated impact of acquisitions and product line divestitures.

We believe that sales change ex. currency and organic sales change assist investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period.

•Adjusted free cash flow refers to cash flow provided by (used in) operating activities, less payments for property, plant and equipment, less payments for software and other deferred charges, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds from insurance and sales (purchases) of investments. Where applicable, adjusted free cash flow is also adjusted for certain acquisition-related transaction costs, proceeds from company-owned life insurance policies and net cash used for Argentine Blue Chip Swap securities. We believe that adjusted free cash flow assists investors by showing the amount of cash we have available for debt reductions, dividends, share repurchases and acquisitions.

•Operational working capital as a percentage of annualized current quarter net sales refers to trade accounts receivable and inventories, net of accounts payable, divided by annualized current quarter net sales, and excludes cash and cash equivalents, short-term borrowings, deferred taxes, other current assets and other current liabilities. We believe that operational working capital as a percentage of annualized current quarter net sales assists investors in assessing our working capital requirements because it excludes the impact of fluctuations attributable to our financing and other activities (which affect cash and cash equivalents, deferred taxes, other current assets and other current liabilities) that tend to be disparate in amount, frequency or timing, and may increase the volatility of working capital as a percentage of sales from period to period. The items excluded from this measure are not significantly influenced by our day-to-day activities managed at the operating level and do not necessarily reflect the underlying trends in our operations.

19

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Avery Dennison Corporation

OVERVIEW AND OUTLOOK

Fiscal Year

The three and six months ended June 30, 2026 consisted of 91 and 181 days, respectively, and the three and six months ended June 28, 2025 consisted of 91 and 182 days, respectively.

Our 2026 fiscal year is coincident with the calendar year, beginning on January 1 and ending on December 31; our 2025 fiscal year began on December 29, 2024 and ended on December 31, 2025.

Net Sales

The factors impacting net sales change, as compared to the prior-year period, are shown in the table below.

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30, 2026","","Six Months Ended June 30, 2026"],["Net sales change","11","%","","9","%"],["Foreign currency translation","(2)","","","(3)"],["Sales change ex. currency(1)","9","","","6"],["Acquisitions","(1)","","","(1)"],["Organic sales change(1)","8","%","","4","%"]]
[[/GREPCENT_TABLE]]

(1) Totals may not sum due to rounding.

In the three months ended June 30, 2026, net sales increased on an organic basis compared to the same period in the prior year primarily due to higher volume, partially offset by unfavorable mix. In the six months ended June 30, 2026, net sales increased on an organic basis compared to the same period in the prior year primarily due to higher volume, partially offset by unfavorable mix and the impact of raw material deflation-related price reductions.

Net Income

Net income increased from approximately $355 million in the first six months of 2025 to approximately $372 million in the first six months of 2026. The primary factors affecting this increase were:

•Higher volume

•Benefits from productivity initiatives, including savings from restructuring actions, net of transition costs

•Net benefit of pricing and raw material costs, including material re-engineering

•Favorable foreign currency translation

These items were partially offset by the following factors:

•Unfavorable mix

•Higher employee-related costs

•Higher provision for income taxes

•Higher restructuring charges, net of reversals

Cost Reduction Actions

2026 Actions

We recorded $34.7 million in restructuring charges during the six months ended June 30, 2026 related to our 2026 actions. These charges consisted of severance and related costs for the reduction of approximately 600 positions, as well as asset impairment charges, at various locations across our company related to actions taken to optimize our operational footprint and workforce headcount.

Restructuring charges were included in “Other expense (income), net” in the unaudited Condensed Consolidated Statements of Income. Refer to Note 4, “Cost Reduction Actions,” to the unaudited Condensed Consolidated Financial Statements for more information.

20

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Avery Dennison Corporation

Cash Flow

[[GREPCENT_TABLE]]
[["","Six Months Ended"],["(In millions)","June 30, 2026","","June 28, 2025"],["Net cash provided by operating activities","$","544.7","","","$","192.5"],["Purchases of property, plant and equipment","(67.5)","","","(66.0)"],["Purchases of software and other deferred charges","(13.9)","","","(15.2)"],["Proceeds from sales of property, plant and equipment",".7","","","15.7"],["Proceeds from insurance and sales (purchases) of investments, net","5.8","","","8.8"],["Adjusted free cash flow","$","469.8","","","$","135.8"]]
[[/GREPCENT_TABLE]]

During the first six months of 2026, net cash provided by operating activities increased compared to the same period last year primarily due to changes in operational working capital and lower incentive compensation payments, partially offset by higher tax payments, net of refunds. During the first six months of 2026, adjusted free cash flow increased compared to the same period last year primarily due to an increase in net cash provided by operating activities.

Outlook

Certain factors that we anticipate will contribute to our 2026 results are described below.

•Based on recent rates, a favorable impact from foreign currency translation to our full-year net sales and operating income

•Higher interest expense

•A full-year effective tax rate in the high-twenty percent range

•Incremental savings from restructuring actions, net of transition costs

•An unfavorable impact to our operating income resulting from the normalization of the majority of our prior-year temporary cost-saving actions, which largely relate to lower incentive compensation

ANALYSIS OF RESULTS OF OPERATIONS FOR THE SECOND QUARTER

Income Before Taxes

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["(In millions)","June 30, 2026","","June 28, 2025"],["Net sales","$","2,462.9","","","$","2,220.5"],["Cost of products sold","1,733.5","","","1,581.4"],["Gross profit","729.4","","","639.1"],["Marketing, general and administrative expense","394.8","","","352.4"],["Other expense (income), net","21.1","","",".5"],["Interest expense","35.9","","","34.0"],["Other non-operating expense (income), net","(5.1)","","","(3.3)"],["Income before taxes","$","282.7","","","$","255.5"]]
[[/GREPCENT_TABLE]]

Gross Profit

Gross profit for the second quarter of 2026 increased from the same period last year due to higher volume, the net benefit of pricing and raw material costs, including material re-engineering, benefits from productivity initiatives, including savings from restructuring actions, net of transition costs, and favorable foreign currency translation, partially offset by unfavorable mix and higher employee-related costs.

Marketing, General and Administrative Expense

Marketing, general and administrative expense increased in the second quarter of 2026 compared to the same period last year primarily due to higher employee-related costs, unfavorable foreign currency translation and growth investments, partially offset by benefits from productivity initiatives and savings from restructuring actions, net of transition costs.

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Avery Dennison Corporation

Other Expense (Income), Net

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/8818/000000881826000015/avy-20251231.htm
Complete FY 2025 MD&A: /company/AVY/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-25
Report date: 2025-12-31

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ORGANIZATION OF INFORMATION

Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, provides management’s views on our financial condition and results of operations, should be read in conjunction with the Consolidated Financial Statements and related notes thereto, and includes the sections shown below.

[[GREPCENT_TABLE]]
[["Non-GAAP Financial Measures","22"],["Overview and Outlook","23"],["Analysis of Results of Operations","25"],["Results of Operations by Reportable Segment","27"],["Financial Condition","29"],["Critical Accounting Estimates","35"],["Recent Accounting Requirements","37"]]
[[/GREPCENT_TABLE]]

NON-GAAP FINANCIAL MEASURES

We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. These non-GAAP financial measures are intended to supplement the presentation of our financial results prepared in accordance with GAAP. We use these non-GAAP financial measures internally to evaluate trends in our underlying performance, as well as to facilitate comparisons with the results of competitors for quarters and year-to-date periods, as applicable. Based on feedback from investors and financial analysts, we believe that the supplemental non-GAAP financial measures we provide are also useful to their assessments of our performance and operating trends, as well as liquidity. Reconciliations of our non-GAAP financial measures from the most directly comparable GAAP financial measures are provided in accordance with Regulations G and S-K.

Our non-GAAP financial measures exclude the impact of certain events, activities or strategic decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make it more difficult to assess our underlying performance in a single period. By excluding the accounting effects, positive or negative, of certain items (e.g., restructuring charges, outcomes of certain legal matters and settlements, certain effects of strategic transactions and related costs, losses from debt extinguishments, gains or losses from curtailment or settlement of pension obligations, gains or losses on sales of certain assets, gains or losses on venture and other investments, currency adjustments due to highly inflationary economies, and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency or timing.

We use the non-GAAP financial measures described below in this MD&A.

•Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and, where applicable, currency adjustments for transitional reporting of highly inflationary economies, and the reclassification of sales between segments. Additionally, where applicable, sales change ex. currency is also adjusted for the estimated impact of extra days in our fiscal year and the calendar shift resulting from extra days in the prior fiscal year. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior-period results translated at current period average exchange rates to exclude the effect of foreign currency fluctuations. Our 2025 fiscal year began on December 29, 2024 and ended on December 31, 2025; fiscal years 2026 and beyond will be coincident with the calendar year beginning on January 1 and ending on December 31.

•Organic sales change refers to sales change ex. currency, excluding the estimated impact of acquisitions and product line divestitures.

We believe that sales change ex. currency and organic sales change assist investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period.

•Adjusted free cash flow refers to cash flow provided by operating activities, less payments for property, plant and equipment, less payments for software and other deferred charges, plus proceeds from company-owned life insurance policies, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds from insurance and sales (purchases) of investments, less net cash used for Argentine Blue Chip Swap securities. Where applicable, adjusted free cash flow is also adjusted for certain acquisition-related transaction costs. We believe that adjusted free cash flow assists investors by showing the amount of cash we have available for debt reductions, dividends, share repurchases, and acquisitions.

22

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•Operational working capital as a percentage of annualized current quarter net sales refers to trade accounts receivable and inventories, net of accounts payable, and excludes cash and cash equivalents, short-term borrowings, deferred taxes, other current assets and other current liabilities divided by annualized current quarter net sales. We believe that operational working capital as a percentage of annualized current quarter net sales assists investors in assessing our working capital requirements because it excludes the impact of fluctuations attributable to our financing and other activities (which affect cash and cash equivalents, deferred taxes, other current assets and other current liabilities) that tend to be disparate in amount, frequency or timing, and may increase the volatility of working capital as a percentage of sales from period to period. The items excluded from this measure are not significantly influenced by our day-to-day activities managed at the operating level and do not necessarily reflect the underlying trends in our operations.

OVERVIEW AND OUTLOOK

Fiscal Year

In January 2025, the Audit Committee of our Board of Directors approved a change to our previous 52- or 53-week fiscal year generally ending on the Saturday closest to December 31 to a fiscal year coincident with the calendar year. Our 2025 fiscal year began on December 29, 2024 and ended on December 31, 2025, which resulted in four extra days compared to prior years; fiscal years 2026 and beyond will be coincident with the calendar year beginning on January 1 and ending on December 31.

Our 2024 and 2023 fiscal years consisted of 52-week periods ending December 28, 2024 and December 30, 2023, respectively.

Net Sales

The factors impacting reported net sales change, as compared to the prior-year period, are shown in the table below.

[[GREPCENT_TABLE]]
[["","","2025","","2024"],["Reported net sales change","","1","%","","5","%"],["Foreign currency translation","","\u2014","","","\u2014"],["Impact of extra days","","\u2014","","","\u2014"],["Sales change ex. currency(1)","","\u2014","%","","5","%"],["Acquisitions","","\u2014","","","(1)"],["Organic sales change(1)","","\u2014","%","","5","%"]]
[[/GREPCENT_TABLE]]

(1) Totals may not sum due to rounding.

In 2025, net sales on an organic basis were comparable to the prior year, reflecting the impact of higher volume offset by the impact of raw material deflation-related price reductions. In 2024, net sales increased on an organic basis primarily due to higher volume, partially offset by the impact of raw material deflation-related price reductions.

Net Income

Net income decreased from approximately $705 million in 2024 to approximately $688 million in 2025. The primary factors affecting this decrease were:

•The net impact of raw material deflation-related price reductions

•Higher employee-related costs

•Higher interest expense

•Growth investments

These items were partially offset by the following factors:

•Benefits from productivity initiatives, including material re-engineering and savings from restructuring actions, net of transition costs

•Higher volume/mix

23

Table of Contents

Cost Reduction Actions

2025 Actions

During 2025, we recorded $48.8 million in restructuring charges, net of reversals, related to our 2025 actions. These charges consisted of severance and related costs for the reduction of approximately 1,200 positions, as well as asset impairment charges, at numerous locations across our company, as a result of actions taken to optimize our operational footprint.

In the fourth quarter of 2024, we recorded $13.1 million in restructuring charges related to our 2025 actions. These charges consisted of severance and related costs for the reduction of approximately 90 positions, as well as asset impairment charges, reflecting actions at numerous locations in our Solutions Group reportable segment.

The cumulative restructuring charges, net of reversals, related to our 2025 actions was approximately $62 million.

2023 Actions

During 2024, we recorded $28.8 million in restructuring charges, net of reversals, related to these actions. These charges consisted of severance and related costs for the reduction of approximately 1,280 positions, as well as asset impairment charges, at numerous locations across our company.

During 2025, we recorded $1.6 million of reversals related to our 2023 Actions that were completed in the fourth quarter of 2025.

Savings from Restructuring Actions

We realized more than $60 million in incremental savings from restructuring actions, net of transition costs, in each of 2025 and 2024.

Restructuring charges were included in “Other expense (income), net” in the Consolidated Statements of Income. Refer to Note 13, “Cost Reduction Actions,” to the Consolidated Financial Statements for more information.

Business Acquisitions

2025 Business Acquisition

On October 20, 2025, we completed our business acquisition of W.F. Taylor Holdings, Inc. ("Taylor Adhesives"), a Georgia-based flooring adhesives business, for the purchase price of approximately $390 million. This acquisition expanded the high-value category portfolio in our Materials Group reportable segment.

We funded the Taylor Adhesives acquisition using cash and proceeds from our issuance of senior notes in September 2025.

The final allocations of purchase consideration to assets and liabilities are ongoing as we continue to evaluate certain balances, estimates and assumptions during the measurement period (up to one year from the acquisition date). Our valuation of certain acquired assets and liabilities is currently pending finalization within the allowable time to complete our assessment.

The Taylor Adhesives acquisition was not material to the Consolidated Financial Statements.

2023 Business Acquisitions

On November 23, 2023, we completed our business acquisition of Silver Crystal Group ("Silver Crystal"), a Canada-based provider of sports apparel customization and application solutions across in-venue, direct-to-business and e-commerce platforms. On May 22, 2023, we completed our business acquisition of LG Group, Inc. ("Lion Brothers"), a Maryland-based designer and manufacturer of apparel brand embellishments. On March 6, 2023, we completed our business acquisition of Thermopatch, Inc. ("Thermopatch"), a New York-based manufacturer specializing in labeling, embellishments and transfers for the sports, industrial laundry, workwear and hospitality industries. These acquisitions expanded the product portfolio in our Solutions Group reportable segment. The acquisitions of Silver Crystal, Lion Brothers and Thermopatch are referred to collectively as the "2023 Acquisitions."

The aggregate purchase consideration, including purchase consideration payable, for the 2023 Acquisitions was approximately $231 million. W

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AVY/mda/fy2025/
All MD&A years: /company/AVY/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AVY/mda/fy2024/): filed 2025-02-26; accession 0000008818-25-000003 (https://www.sec.gov/Archives/edgar/data/8818/000000881825000003/avy-20241228.htm)
- [FY 2023 MD&A](/company/AVY/mda/fy2023/): filed 2024-02-21; accession 0000008818-24-000003 (https://www.sec.gov/Archives/edgar/data/8818/000000881824000003/avy-20231230.htm)
- [FY 2022 MD&A](/company/AVY/mda/fy2022/): filed 2023-02-22; accession 0000008818-23-000002 (https://www.sec.gov/Archives/edgar/data/8818/000000881823000002/avy-20221231.htm)
- [FY 2022 MD&A](/company/AVY/mda/a-0001193125-22-049910/): filed 2022-02-23; accession 0001193125-22-049910 (https://www.sec.gov/Archives/edgar/data/8818/000119312522049910/d179463d10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2670 Converted Paper & Paperboard Prods (No Contaners/Boxes)) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AVY.md · JSON record: /company/AVY.json · verified financials: /company/AVY/financials.json / /company/AVY/financials.csv · machine TOC for the whole site: /llms.txt