Avery Dennison Reports Strong Q1 Adjusted EPS Growth and Significant Free Cash Flow Improvement
AVY is trading near its 52-week low of $156.23 (5.6% above the low).
Summary
Avery Dennison announced strong Q1 2026 results, with adjusted EPS up 7.4% to $2.47 and a significant improvement in adjusted free cash flow to $104.4 million, alongside Q2 adjusted EPS guidance of $2.43 to $2.53.
Key Events · Earnings and Guidance · AVY
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Strong Q1 Adjusted EPS Growth
Reported adjusted EPS of $2.47 for Q1 2026, an increase of 7.4% compared to the prior year, exceeding the midpoint of guidance.
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Significant Free Cash Flow Turnaround
Generated $104.4 million in adjusted free cash flow in Q1 2026, a substantial improvement from a negative $53.1 million in the same period last year.
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Modest Organic Sales Growth
Achieved 1.1% organic sales growth in Q1 2026, with total net sales up 7.0% to $2.3 billion.
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Q2 EPS Guidance Provided
Issued Q2 2026 adjusted EPS guidance in the range of $2.43 to $2.53, with anticipated reported sales growth of 2-4% and organic sales growth of 0-2%.
Analysis · AVY · Manufacturing
Avery Dennison reported robust first-quarter results, with adjusted EPS increasing 7.4% year-over-year to $2.47, surpassing the midpoint of their guidance. A key highlight is the substantial turnaround in adjusted free cash flow, which reached $104.4 million compared to a negative $53.1 million in the prior year. While organic sales growth was modest at 1.1%, the company demonstrated strong cost management and productivity. The filing also provides second-quarter adjusted EPS guidance of $2.43 to $2.53, which was previously reported by news outlets on the same day. The company continues its disciplined capital allocation, returning $133 million to shareholders through dividends and share repurchases, and maintains a healthy balance sheet with a net debt to adjusted EBITDA ratio of 2.4x.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 28.9% of the 1666 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, AVY was trading at $164.98 on NYSE in the Manufacturing sector, with a market capitalization of approximately $12.7B. The 52-week trading range was $156.23 to $199.54. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.