ACCO Brands (ACCO) investor relations material

Executive summary

• Net sales for Q1 2026 rose 8.3% year-over-year to $343.7 million, exceeding outlook, driven by the EPOS acquisition, favorable foreign exchange, and growth in Latin America and computer accessories.

• Adjusted EPS and operating income exceeded expectations, with adjusted diluted EPS at $0.02 and reported diluted EPS at $0.20, reflecting a $37.6 million bargain purchase gain from EPOS.

• Integration of EPOS is progressing well, supporting a strategic shift to technology peripherals and expected to contribute $80 million in 2026 sales and modest profit.

• Cost reduction and footprint optimization program is advancing, targeting $100 million in annualized savings by year-end, with $70 million realized since inception.

• The company continues to face softer global demand due to weak macroeconomic conditions and geopolitical instability.

Financial highlights

• Q1 2026 net sales were $343.7 million (up 8.3% year-over-year); gross profit was $106.8 million (up 7.2%); gross margin was 31.1%, down 30 bps due to product mix.

• Adjusted operating income was $11.7 million, up 69.6% year-over-year; adjusted operating margin improved to 3.4% from 2.2%.

• Operating loss was $10.4 million, up from $6.7 million last year, mainly due to higher restructuring and litigation settlement costs.

• Net income was $19.4 million, reversing a net loss of $13.2 million last year, primarily due to the EPOS acquisition gain.

• Free cash flow was $1.4 million, in line with last year.

Outlook and guidance

• Full-year 2026 reported sales expected to be flat to up 3% ($1,525M–$1,570M); adjusted EPS guided to $0.84–$0.89; free cash flow forecasted at $75–$85 million.

• Q2 2026 sales expected to rise 1–4% ($400M–$410M); adjusted EPS projected at $0.24–$0.28.

• Comparable sales expected to decline 3%–6% for the full year.

• Consolidated leverage ratio expected between 3.7x–3.9x; no debt maturities until 2029.

• $100 million cost savings target on track for year-end.