ACCO Brands (ACCO) investor relations material

Executive summary

• Q3 net sales were $380.3M, down 0.9% YoY; comparable sales declined 6.2%, while adjusted EPS was $0.28, including $0.11 per share from net tariff refunds.

• Tariff refunds and cost reductions supported higher adjusted operating income and margins despite softer demand and lower underlying volume.

• Trust closed October 1, expanding the technology peripherals portfolio toward $500M in pro forma annual sales; FY 2026 guidance was raised.

Financial highlights

• Q3 adjusted gross profit rose 7.7% to $136.4M; adjusted gross margin expanded 290 bps to 35.9%, including a 520-bps tariff-refund benefit.

• Adjusted operating income rose 21.9% to $47.8M and adjusted operating margin increased to 12.6% from 10.2%; net tariff refunds contributed $15.1M.

• Q3 GAAP net income was $11.5M versus $4.0M; adjusted net income was $27.2M versus $19.5M.

• Nine-month sales rose 3.9% to $1,139.1M; adjusted operating income increased to $107.6M from $93.2M and adjusted EPS rose to $0.59 from $0.46.

• Q3 cost savings exceeded $10M; adjusted SG&A was $88.6M, up 1.4%, as EPOS costs and incentive compensation more than offset savings.

Outlook and guidance

• FY 2026 reported sales guidance is $1,585M–$1,615M, growth of 4%–6%; acquisitions contribute 7%, FX 2%, and comparable sales are expected to decline 5%–3%.

• FY adjusted EPS guidance is $0.98–$1.02, including $0.12 per share from tariff recovery; free cash flow is expected at ~$100M.

• Year-end consolidated leverage is expected at ~3.5x; Q4 free cash flow outlook is more muted than historical levels.

• Technology Peripherals is expected to deliver mid-single-digit growth over the longer term, with external market forecasts improving through 2027.