Avery Dennison Corporation (NYSE: AVY) has just released its financial results for the fourth quarter and full year 2025, revealing a solid performance in a dynamic environment. The company reported a full-year EPS of $8.79, with adjusted EPS (non-GAAP) of $9.53, representing a 1% increase from the prior year.
In terms of net sales, the company achieved $8.9 billion in FY25, marking a 1% increase. When excluding the currency impact, the sales change (non-GAAP) was comparable to the prior year. Additionally, the organic sales basis (non-GAAP) was also comparable to the prior year.
For the fourth quarter of 2025, Avery Dennison reported an EPS of $2.15, with adjusted EPS of $2.45, reflecting a 3% increase. Net sales for the quarter amounted to $2.3 billion, showing a 4% increase. When excluding the currency impact, sales were up 1%, and on an organic basis, they were comparable to the prior year.
Looking ahead, the company has issued guidance for the first quarter of 2026, with reported EPS expected to be between $2.27 and $2.33. Adjusted EPS guidance for the same period is forecasted to be between $2.40 and $2.46.
The company's Materials Group reported a 5.1% increase in sales to $1.5 billion, with low single-digit volume/mix growth partially offset by deflation-related price reductions. The reported operating margin for this segment was 12.8%, while the adjusted operating margin (non-GAAP) was 14.2%, down 60 basis points.
In the Solutions Group, reported sales increased by 1.5% to $724 million, with high-value categories experiencing strong growth. The reported operating margin was 8.5%, and the adjusted operating margin was 11.2%, down 20 basis points.
Avery Dennison returned $191 million in cash to shareholders during the fourth quarter through dividends and share repurchases. In 2025, the company returned a total of $861 million to shareholders, repurchasing 3.2 million shares.
The company's reported effective tax rate was 19.9% in the fourth quarter and 25.6% for the full year. The adjusted tax rate (non-GAAP) was 23.6% in the fourth quarter and 25.5% for the full year.
Throughout 2025, the company realized over $60 million in pre-tax savings from restructuring actions, incurring approximately $47 million in pre-tax restructuring charges.
Avery Dennison continues to focus on disciplined capital allocation and maintaining a strong balance sheet, with a net debt to adjusted EBITDA ratio (non-GAAP) of 2.4x at the end of the fourth quarter.
For more detailed information on the company's results, additional materials are available on its website.
Avery Dennison Corporation, with reported sales of $8.9 billion in 2025, is a global materials science and digital identification solutions company, serving various industries worldwide. Following these announcements, the company's shares moved -0.23%, and are now trading at a price of $188.65. If you want to know more, read the company's complete 8-K report here.
