Avery Dennison Corporation (NYSE:AVY) posted fourth-quarter adjusted earnings that came in ahead of Wall Street expectations on Wednesday, helping lift its shares even though revenue fell slightly short of forecasts.
The materials science group’s stock climbed 3.61% in pre-market trading following the earnings release.
Adjusted earnings per share for the quarter reached $2.45, topping the analyst consensus of $2.40 and marking a 3% increase from a year earlier. Revenue totaled $2.3 billion, up 4% year over year but just under the $2.29 billion expected by analysts.
“We delivered solid full-year results in 2025, with adjusted EPS of $9.53, reflecting the durability of our business model in a dynamic environment,” said Deon Stander, president and CEO. “Despite tariff-related impacts and softer consumer volumes, our team successfully leveraged our proven productivity playbook to maintain an adjusted EBITDA margin of 16.4%.”
The Materials Group, which generates roughly two-thirds of company revenue, reported a 5.1% increase in sales to $1.5 billion. However, organic sales slipped 0.9%, as price reductions linked to deflation more than offset low single-digit volume growth. The Solutions Group recorded a 1.5% rise in sales to $724.2 million, with organic growth of 1.3%.
Looking ahead, Avery Dennison issued first-quarter 2026 adjusted earnings guidance of $2.40 to $2.46 per share, broadly in line with market expectations of $2.40. The company also highlighted that higher-value categories now account for about 45% of total revenue, with Intelligent Labels posting high single-digit growth in the fourth quarter.
Over the course of 2025, Avery Dennison returned $861 million to shareholders through dividends and share buybacks, while keeping its net debt to adjusted EBITDA ratio at 2.4x at the end of the fourth quarter.