Q1 2026 Avery Dennison Corp Earnings Call Transcript

Apr 28, 2026 / 03:00PM GMT

Release Date Price: $166.49 (+0.92%)

Transcript 10-Q8-K

Key Points

Positve

Avery Dennison Corp (AVY) reported a 7% year-over-year increase in adjusted EPS, demonstrating strong earnings growth.
The company achieved a 1% organic sales growth, driven by mid-single-digit volume mix growth.
Materials Group delivered an 11% reported sales growth, with organic sales up 2%, highlighting the strength of this segment.
Avery Dennison Corp (AVY) successfully managed raw material inflation through strategic pricing and material re-engineering.
The company made a significant $75 million investment in Williot, enhancing its intelligent labels platform and positioning it as a preferred partner in retail, food, and logistics.

Negative

Solutions Group reported a 3% decrease in sales, with organic sales down 1%, indicating challenges in this segment.
Intelligent Labels sales were down low single-digits, slightly below growth expectations, due to softer logistics demand.
High employee-related costs and lower base category volumes negatively impacted profitability in the Solutions Group.
The company anticipates high-single-digit sequential inflation in the second quarter, posing a challenge to cost management.
Avery Dennison Corp (AVY) experienced a temporary softness in certain high-value categories, affecting overall performance.

Operator

Ladies and gentlemen, welcome to Avery Dennison's earnings conference call for the first quarter ended on March 31, 2026. (Operator Instructions) As a reminder, this webcast is being recorded and will be available for replay on the Avery Dennison Investor Relations website.

I'd now like to turn the call over to William Gilchrist, Avery Dennison's Vice President of Investor Relations. Please go ahead, sir.

William Gilchrist Avery Dennison Corp;Vice President of Investor Relations

Thank you, Lucas, and welcome to Avery Dennison's first quarter 2026 earnings conference call. Please note that throughout today's discussion, we'll be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined, qualified and reconciled from GAAP on schedules A4 to A8 of the financial statements accompanying today's earnings release.

We'll remind you that we'll make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These forward-looking statements

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