The Q1 beat was modest and Q2 guidance implies a sequential EPS decline, suggesting limited upside catalyst. Watch for commentary on destocking impact and demand trends in Solutions Group, which saw organic sales decline 0.9%.
Price Chart
Executive Summary
Avery Dennison reported Q1 2026 adjusted EPS of $2.47, up 7.4% YoY and above the midpoint of guidance, on reported sales growth of 7.0% to $2.30B. Organic sales grew 1.1%, driven by mid-single-digit volume/mix growth in the Materials Group, partially offset by a 0.9% organic decline in Solutions Group. The company guided Q2 2026 adjusted EPS of $2.43-$2.53, implying a sequential decline from Q1, citing a headwind from assumed destocking of March pre-buy.
Key Financial Metrics
Key Facts
- Q1 2026 adjusted EPS of $2.47, up 7.4% YoY from $2.30
- Q1 2026 reported EPS of $2.18, up 4.3% YoY from $2.09
- Q1 2026 net sales of $2.30B, up 7.0% YoY; organic sales up 1.1%
- Materials Group organic sales up 1.9%; Solutions Group organic sales down 0.9%
- Q2 2026 adjusted EPS guidance of $2.43-$2.53 (midpoint $2.48), below Q1 actual of $2.47
- Q2 guidance includes headwind from assumed destocking of March pre-buy
- Generated adjusted free cash flow of $104.4M vs. -$53.1M in Q1 2025
- Returned $133M to shareholders via dividends ($72M) and share repurchases ($61M)
- Net debt to adjusted EBITDA ratio of 2.4x, unchanged from prior quarter
Financial Impact
Q1 adjusted EPS beat consensus by ~1.0% ($2.47 vs. $2.43 est.), but Q2 guidance midpoint of $2.48 is below Q1 actual of $2.47, implying a sequential decline
Risk Factors
- Q2 guidance implies sequential EPS decline from Q1, signaling potential demand softness
- Solutions Group organic sales declined 0.9% YoY, with adjusted operating margin down 120 bps
- Tariff and geopolitical uncertainty could pressure demand and input costs
- Higher employee-related costs and investments are pressuring margins in Solutions Group
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000008818-26-000075 |
| Exhibit: ex9928k4-28x26.htm | 0000008818-26-000075 |
| Document: avy-20260428.htm | 0000008818-26-000075 |
| Document: 0000008818-26-000075-index-headers.html | 0000008818-26-000075 |
| Document: 0000008818-26-000075-index.html | 0000008818-26-000075 |
| Document: 0000008818-26-000075.txt | 0000008818-26-000075 |
| 8-K Data (Synthetic) | 0000008818-26-000075 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | SC 13G/A | $181.70 | awaiting T+60 | — | $181.71 (+0.01%) |
Oct 21, 2026 6d ago | Institutional Cluster | $184.66 | awaiting T+60 | — | $181.71 (−1.60%) |
Oct 13, 2026 14d ago | 8-K | $170.72 | awaiting T+60 | — | $181.71 (+6.44%) |
Oct 5, 2026 22d ago | 8-K | $170.00 | awaiting T+60 | — | $181.71 (+6.89%) |
Aug 19, 2026 9w ago | 8-K | $183.16 | awaiting T+60 | — | $181.71 (−0.79%) |
Jul 30, 2026 12w ago | 8-K | $174.82 $181.83 | ▲ +4.01% | ▲ +1.55% | $181.71 (+3.94%) |
Jun 4, 2026 20w ago | 8-K | $153.25 $177.75 | ▲ +15.99% | ▲ +14.11% | $181.71 (+18.57%) |
Apr 28, 2026 26w ago | 8-K | $165.43 $155.20 | ▼ −6.18% | ▼ −10.17% | $181.71 (+9.84%) |
Mar 12, 2026 32w ago | DEFA14A | $171.01 $155.18 | ▼ −9.26% | ▼ −19.95% | $181.71 (+6.26%) |
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