Avery Dennison Earnings Beat Estimates in Q4, Revenues Rise Y/Y

Avery Dennison Corporation AVY has delivered adjusted earnings of $2.45 per share in fourth-quarter 2025, beating the Zacks Consensus Estimate of $2.40. The bottom line increased 2.9% year over year.Including one-time items, the company has reported earnings per share (EPS) of $2.15 compared with the year-ago quarter’s $2.16.Avery Dennison’s Gross Margin Improves Y/Y in Q4Total revenues moved up 3.9% year over year to $2.27 billion but missed the Zacks Consensus Estimate of $2.29 billion.The cost of sales in the quarter improved 2.8% year over year to $1.62 billion. The gross profit rose 6.8% year over year to $651 million. The gross margin came in at 28.7%, up from the prior-year quarter’s 27.9%.Marketing, general and administrative expenses were $369 million compared with $329 million in the year-ago quarter. The adjusted operating profit was $281.5 million compared with the prior-year quarter’s $280 million. The adjusted operating margin was 12.4% compared with 12.8% in the prior-year quarter.Avery Dennison Corporation Price, Consensus and EPS Surprise  Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation QuoteAVY’s Segments PerformanceRevenues in the Materials Group segment increased 5.1% year over year to $1.55 billion in the reported quarter. The reported figure came in line with our estimate. On an organic basis, sales dip 0.9%. We predicted organic sales to dip 0.4%.The segment’s adjusted operating profit increased 0.8% year over year to $219 million. Our estimate was $237 million.Revenues in the Solutions Group moved up 1.5% year over year to $724 million. We estimated revenues of $745 million for this segment. On an organic basis, sales improved 1.3% year over year. Our model predicted a rise of 1.2%.The segment’s adjusted operating income remained flat year over year at $81 million. Our estimate was $69.5 million.Avery Dennison’s Cash & Debt PositionThe company returned $861 million in cash to shareholders through share repurchases and dividend payments in 2025. AVY repurchased 3.2 million shares throughout the year.Avery Dennison ended 2025 with cash and cash equivalents of $203 million compared with $329 million at the end of the prior year.The company’s long-term debt was $3.21 billion at the end of 2025, up from $2.56 billion at the end of 2024. Its net-debt-to-adjusted-EBITDA ratio was 2.4X.AVY realized approximately $60 million in pre-tax savings from restructuring (net of transition costs) in 2025. The company also incurred pre-tax restructuring charges of around $47 million.AVY’s 2025 PerformanceAdjusted EPS increased 1.1% year over year to $9.53 in 2025 and topped the Zacks Consensus Estimate of $9.50. Including one-time items, EPS was $8.79 in 2025, up from $8.73 in 2024.Total revenues improved 1.1% year over year to $8.86 billion. The top line figure missed the Zacks Consensus Estimate of $8.88 billion.Avery Dennison’s 2026 GuidanceThe company expects adjusted EPS between $2.40 and $2.46 for the first quarter of 2026.Avery Dennison Stock’s Price PerformanceAVY shares have gained 4.5% in the past year against the industry’s decline of 5.3%. Image Source: Zacks Investment Research AVY’s Zacks RankAvery Dennison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Industrial Product Stocks Awaiting ResultsCrown Holdings CCK is set to release fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Crown Holdings’ fourth-quarter 2025 earnings is pegged at $1.69 per share, suggesting year-over-year growth of 6.3%. The consensus estimate for Crown Holdings’ revenues is pegged at $3.05 billion, indicating a 5% increase from the prior-year quarter.Silgan Holdings Inc. SLGN is also set to report fourth-quarter 2025 results on Feb. 4. The Zacks Consensus Estimate for Silgan Holdings’ fourth-quarter 2025 earnings is pegged at 65 cents per share, suggesting a year-over-year decrease of 23.5%. The consensus estimate for Silgan Holdings’ revenues is pegged at $1.46 billion, indicating a 3.5% increase from the prior-year quarter’s actual.Sealed Air Corporation SEE is scheduled to release fourth-quarter 2025 results on March 2. The Zacks Consensus Estimate for Sealed Air’s fourth-quarter 2025 earnings is pegged at 72 cents per share, implying a year-over-year dip of 4%.The consensus estimate for Sealed Air’s top line is pegged at $1.34 billion, indicating a fall of 2.4% from the prior-year reported figure.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Silgan Holdings Inc. (SLGN): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Sealed Air Corporation (SEE): Free Stock Analysis Report Crown Holdings, Inc. (CCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks