Avery Dennison Corporation (AVY) Earnings Call Transcripts

Avery Dennison Corporation's Latest Earnings Call - Q3 FY2026

In the third quarter of 2026, Avery Dennison Corporation (AVY:US) reported revenue of $2.3 billion, reflecting a 5% year-over-year increase, and adjusted EPS of $2.42, which grew 2% compared to the prior year. The company slightly raised its full-year guidance for adjusted EPS to a range of $10.10 to $10.24, indicating a positive outlook for the remainder of the year. Key drivers included strong organic sales growth of 4% and robust free cash flow generation of over $240 million, despite ongoing customer inventory destocking impacting sales and EPS growth.

Reported metrics

Guidance from management

Management slightly raised the midpoint of their adjusted EPS guidance to $10.10 to $10.24 for the full year 2026, indicating confidence in continued growth despite market challenges.

What management said

And John, just the only thing I'd add to that is in that third quarter, what we saw really was the destocking in Europe starting to happen a little bit in August, but really accelerating in September. And we continue to see that in October, giving us large confidence that most of it will be done by the time we get to the end of the fourth quarter.

The only thing I would add to that, Matt, is that when we look at apparel in the third quarter, Intelligent Labels were up roughly double digits. Embelex was up roughly mid-single digits, and apparel base was up low single digits. So that's the composition within the overall apparel growth in the quarter.

What analysts pressed on

Analysts expressed concerns regarding margin trends and the impact of customer inventory destocking on future growth. Questions focused on the sustainability of profitability and potential headwinds from consumer behavior in the upcoming quarters.

Main topics on the call

• Revenue Growth and Guidance — Avery Dennison reported a 5% increase in reported sales year-over-year, driven by organic sales growth of 4%. Management raised the midpoint of their full-year guidance for adjusted EPS to $10.10 to $10.24, reflecting co...
• Free Cash Flow Generation — The company generated adjusted free cash flow of $246 million in Q3, bringing year-to-date adjusted free cash flow to $716 million. This represents a conversion rate well above 100% of net income, showcasing strong cash ...
• Segment Performance — The Materials Group achieved organic sales growth of 5%, while the Solutions Group saw a modest increase of 1%. The Materials Group's sales were positively impacted by a gradual pace of customer inventory destocking, whi...
• Operational Challenges — Despite strong performance, the company faced challenges with adjusted EBITDA margins declining to 15.8% due to cost inflation and incentive compensation normalization. Lovins stated, "Adjusted EBITDA margin was 15.8%, w...

Read the full Avery Dennison Corporation transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 49 Avery Dennison Corporation earnings call transcripts on record, spanning January 29, 2020 to October 29, 2026. Based on this history, Avery Dennison Corporation reports quarterly. The most recent call on file is dated October 29, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

AVY

Exchange

NYSE

Country

US

Sector

Materials

Industry

Containers and Packaging

Calls on record

49

First call

January 29, 2020

Most recent

October 29, 2026

Reporting cadence

quarterly