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Avery Dennison Corp. (MX:AVY)
:AVY
Mexico Market
EarningsQ2 2026 Earnings Report

Avery Dennison (AVY) Q2 2026 Earnings Report

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MX:AVY Q2 2026 EPS Results

Actual EPS$48.88
Consensus EPS$41.76
Beat/MissBeat by +$7.12
One Year Ago EPS$40.93

MX:AVY Q2 2026 Revenue Results

Actual Revenue$41.65B
Expected Revenue$38.83B
Beat/MissBeat by +$2.82B
YoY Revenue Growth+10.92%

Earnings Announcement Details

QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
MX:AVY Upcoming Earnings
Avery Dennison's next earnings date is estimated for October 28, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:AVY Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 30, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum (accelerating organic growth, 19% adjusted EPS growth, robust free cash flow, margin expansion, and reinstated full-year guidance) while flagging near-term cyclical headwinds from customer pre-buys/destocking, raw material inflation, and employee-related cost pressures. Management emphasized productivity, pricing, restructuring benefits (> $60 million), and capital discipline to offset these pressures and maintain confidence in achieving full-year targets.
Company Guidance
Avery Dennison reinstated full‑year 2026 guidance calling for adjusted EPS of $10.00–$10.30 (≈7% growth at the midpoint) and organic sales growth of 3%–4% (reported sales growth 5%–6%), which reflects roughly +1.5 points from currency, +1.0 point from the Taylor Adhesives acquisition and about a 0.5‑point fiscal calendar headwind; management expects ~100% free‑cash‑flow conversion with fixed and IT capex of ≈$260M, productivity actions including >$60M of restructuring, an estimated ~$0.30 net benefit from currency/share count/interest/tax, a Q3 sequential EPS headwind of about $0.50 as customer pre‑buying (~$0.25 benefit in Q2) unwinds, and to maintain a strong balance sheet (quarter‑end net debt/adjusted EBITDA ~2.3x) while continuing dividends and share repurchases.
Strong Organic Sales Growth
Organic sales grew 8% year-over-year in Q2 2026, reflecting acceleration versus prior periods and balanced growth across base and high-value categories.
Adjusted EPS and Profitability Expansion
Adjusted EPS was $2.89 in Q2, up 19% year-over-year; adjusted EBITDA margin expanded to 17.1%, up 50 basis points versus prior year.
Robust Free Cash Flow
Adjusted free cash flow was strong at $365 million in Q2, supporting capital returns and balance sheet strength.
Materials Group Outperformance
Materials Group delivered ~10% organic sales growth driven by high-single-digit volume/mix and low-single-digit pricing; adjusted EBITDA for the group grew ~17% year-over-year with ~20 basis points of margin expansion.
Solutions Group Margin Improvement
Solutions Group organic sales grew 3%; adjusted EBITDA margin expanded to 18.6%, up 150 basis points year-over-year and 220 basis points sequentially, driven by productivity and improving volumes.
Intelligent Labels Strength in Apparel & Retail
Enterprise Intelligent Labels sales were up low-single-digits overall; apparel and general retail grew ~10% year-over-year, led by program expansion and retail recovery.
Disciplined Capital Allocation
Returned over $210 million to shareholders in Q2 (approx. $76 million dividends and $138 million share repurchases); year-to-date capital returned ~$350 million. Net debt to adjusted EBITDA at quarter-end was 2.3x.
Full-Year 2026 Financial Framework Reinstated
Company provided full-year guidance: adjusted EPS $10.00–$10.30 (midpoint implying ~7% growth), organic sales growth 3%–4%, reported sales growth 5%–6%, and ~100% free cash flow conversion target with ~$260 million capex.
Productivity & Restructuring Benefits
Productivity actions and restructuring are material contributors, with expected restructuring benefits of more than $60 million helping offset wage and incentive cost pressures.

MX:AVY Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 28, 2026
2026 (Q3)
39.41 / -
40.082
2026 (Q2)
41.76 / 48.88
40.92719.42% (+7.95)
2026 (Q1)
41.03 / 41.77
38.8987.39% (+2.88)
2025 (Q4)
40.52 / 41.43
40.2512.94% (+1.18)
2025 (Q3)
39.34 / 40.08
39.4051.72% (+0.68)
2025 (Q2)
40.49 / 40.93
40.9270.00% (0.00)
2025 (Q1)
39.17 / 38.90
38.7290.44% (+0.17)
2024 (Q4)
40.20 / 40.25
36.5310.19% (+3.72)
2024 (Q3)
39.32 / 39.41
35.51610.95% (+3.89)
2024 (Q2)
38.14 / 40.93
32.47126.04% (+8.46)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed