Avery Dennison Corp SEC 10-Q Report

Avery Dennison Corp, a global leader in labeling and packaging materials and solutions, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting its strategic initiatives and market conditions.

Financial Highlights

• Net Sales: $2,215.5 million, reflecting a slight increase of 1% compared to the same period last year, with organic sales remaining stable.
• Gross Profit: $635.0 million, an increase from the previous year due to higher volume/mix and productivity initiatives, offset by raw material deflation-related price reductions.
• Income Before Taxes: $234.8 million, slightly lower than the previous year, impacted by higher interest expenses and other non-operating expenses.
• Net Income: $166.3 million, a decrease from $181.7 million in the prior year, primarily due to higher provision for income taxes and growth investments.
• Net Income Per Common Share: $2.13, down from $2.26 in the previous year, reflecting the decrease in net income and higher tax rates.

Business Highlights

• Revenue Segments: The Materials Group reported net sales of $1,516.0 million for the third quarter of 2025, with a decrease in organic sales primarily due to raw material deflation-related price reductions. The Solutions Group reported net sales of $699.5 million, with an organic sales increase driven by high-value categories.
• Geographical Performance: In the third quarter of 2025, the Materials Group experienced a low single-digit rate decrease in net sales in Europe, the Middle East, and North Africa, and similar decreases in Asia Pacific and Latin America. North America sales were comparable to the previous year.
• Sales Units: The Solutions Group saw a high single-digit rate increase in high-value categories, contributing to a 4% organic sales increase in the third quarter of 2025.
• New Production Launches: During the first nine months of 2025, the company invested in equipment to support growth in the U.S., Europe, and Asia Pacific, particularly in China, indicating an expansion in production capacity.
• Future Outlook: The company anticipates an increase in net sales in the fourth quarter of 2025 due to favorable foreign currency translation, extra days from the fiscal year transition, and the acquisition of W.F. Taylor Holdings, Inc. They also expect incremental savings from restructuring actions and a mid-twenty percent effective tax rate for the full year.

SEC Filing: Avery Dennison Corp [ AVY ] - 10-Q - Oct. 28, 2025