Avery Dennison Corporation announced its preliminary results for its fourth quarter and full year ended December 31, 2025. Unless otherwise indicated, comparisons are to the same period in the prior year.

“We delivered solid full-year results in 2025, with adjusted EPS of $9.53, reflecting the durability of our business model in a dynamic environment. Despite tariff-related impacts and softer consumer volumes, our team successfully leveraged our proven productivity playbook to maintain an adjusted EBITDA margin of 16.4% and generate over $700 million in adjusted free cash flow,” said Deon Stander, president and CEO.

Q4 Results

Materials Group

Reported sales increased 5.1% to $1.5 billion. Sales were up 0.3% ex. currency and down 0.9% on an organic basis. Graphics and Reflectives up low single digits; Performance Materials comparable to prior year. 

Low single-digit volume/mix growth was more than offset by deflation-related price reductions. High-value categories are up low single digits, which includes Intelligent Labels up high single digits, and base categories down in the low single digits.

Solutions Group

Reported sales increased 1.5% to $724 million. Sales were up 1.3% ex. currency and on an organic basis. The reported operating margin was 8.5%. 

Sales in high-value categories were up high single digits. Intelligent labels were up low single digits, Embelex was up high single digits, and Vestcom was up over 10%. However, sales were down mid-single digits in base solutions. 

“Throughout the year, we made consistent progress advancing our key strategies, notably driving outsized growth in high-value categories, which now represent approximately 45% of our total revenue, as well as continuing to advance our differentiation by accelerating innovation outcomes across the enterprise. We continued to demonstrate disciplined capital allocation, balancing organic investments and the strategic acquisition of Taylor Adhesives with the return of roughly $860 million to our shareholders,” Stander added.

The company continues to deploy capital in a disciplined manner, executing its long-term capital allocation strategy. The company’s balance sheet remains strong, and its net debt to adjusted EBITDA ratio (non-GAAP) was 2.4x at the end of the fourth quarter.