Avery Dennison posts 5.2 percent sales rise in third quarter 2026

US materials science and digital identification solutions provider Avery Dennison Corporation (Avery Dennison) has announced its preliminary financial results for the third quarter ended September 30, 2026, delivering top-line growth and increased cash flow. Net sales rose 5.2 percent year-over-year (YoY) to 2.33 billion dollars, compared to 2.22 billion dollars in the prior-year period. On an organic basis, net sales increased 3.7 percent.

Reported net income reached 169.70 million dollars, or 2.24 dollars per diluted share, representing a 5.2 percent increase compared to 2.13 dollars per diluted share in the third quarter of 2025. Adjusted earnings per share (EPS) grew 2.1 percent YoY to 2.42 dollars. Avery Dennison president and CEO Deon Stander credited underlying organic sales momentum and productivity measures with driving the performance.

“Our focus on innovation and service-led differentiation drove mid-single digit organic growth in both our high-value categories and base businesses,” Stander stated in a press release. “In the face of higher inflation and customer destocking impacts, our teams demonstrated strong operational agility, delivering robust productivity and generating impressive free cash flow.”

Segment performance across materials and solutions

The Materials Group drove overall sales expansion, recording reported sales of 1.64 billion dollars, up 8.5 percent YoY and 4.9 percent on an organic basis. Both base and high-value categories achieved mid-single-digit growth, supported by price benefits and positive volume mix. Segment adjusted EBITDA margin contracted 110 basis points to 16.4 percent, impacted by negative mix and increased employee-related costs.

The Solutions Group, which supplies branding, labeling, and digital identification technologies to the apparel sector, posted reported net sales of 687 million dollars, representing a 1.8 percent decline on a reported basis. Organic sales within the division grew 0.8 percent, led by mid-single-digit expansion across overall apparel categories. Segment profitability improved, with adjusted EBITDA margin increasing 80 basis points to 17.8% as operational efficiencies mitigated cost pressures.

Overall adjusted EBITDA reached 367.70 million dollars, compared to 365.10 million dollars in the third quarter of 2025. Adjusted operating income totalled 282.10 million dollars, yielding an operating margin of 12.1 percent. Restructuring initiatives delivered approximately 54 million dollars in pre-tax savings through the first nine months of the year.

Capital allocation and updated full-year outlook

During the first three quarters of 2026, Avery Dennison returned 481 million dollars in cash to shareholders through dividends and share repurchases. The group repurchased 1.50 million shares for 257 million dollars, reducing total diluted share count by 1.90 million shares compared to the prior-year period.

Looking ahead to the remainder of fiscal 2026, the company updated its full-year earnings expectations. Avery Dennison anticipates full-year reported EPS between 9.45 dollars and 9.59 dollars. Adjusted EPS guidance has been established at 10.10 dollars to 10.24 dollars, excluding an estimated 0.65 dollar impact from restructuring charges and other items.