ACCO Brands (ACCO) investor relations material

Executive summary

• Q2 2026 net sales increased 5.1% year-over-year to $415.1M, driven by the EPOS acquisition, favorable FX, and strong Americas performance, despite a 2.3% decline in comparable sales and global declines in Workspace Solutions and Technology Peripherals.

• Adjusted diluted EPS rose to $0.29 from $0.28 in Q2 2025; reported diluted EPS was $0.15.

• Integration of EPOS is progressing well, supporting a strategic pivot to technology peripherals and contributing to sales growth and cost synergies.

• Strong Americas performance, especially in learning and creative categories and Mexico, offset international softness and EMEA shipment disruptions.

• Full-year outlook for both sales and adjusted EPS was raised, reflecting strong first-half performance and prudent expectations for the second half.

Financial highlights

• Q2 2026 net sales were $415.1M, up 5.1% year-over-year; six-month net sales were $758.8M, up 6.5%.

• Adjusted gross profit for Q2 was $137.5M (33.1% margin), up 6.0% year-over-year; Q2 gross margin was 32.3%, down from 32.9% in Q2 2025.

• Adjusted operating income for Q2 was $48.1M (11.6% margin), up 2.1% year-over-year; reported operating income was $30.3M, down from $33.0M in Q2 2025.

• Adjusted EPS for Q2 was $0.29, up 3.6% year-over-year; YTD adjusted EPS was $0.31, up 24.0%.

• Free cash outflow YTD was $38.6M, slightly improved from $40.2M in 2025.

Outlook and guidance

• Full-year 2026 net sales guidance: $1,550M–$1,595M (2.0%–5.0% growth); adjusted EPS: $0.87–$0.91; free cash flow: $75M–$85M; leverage ratio: 3.7x–3.9x.

• Q3 2026 sales expected to range from -1.0% to +2.0% year-over-year; adjusted EPS forecasted at $0.17–$0.21.

• Ongoing cost reduction and restructuring initiatives are anticipated to deliver $100M in annualized pre-tax savings by end of 2026, with $80M realized to date.