Avery Dennison (AVY) Investor presentation summary

Strategic positioning and market overview

• Recognized as a global leader in materials science and digital identification, operating in over 50 countries with approximately 35,000 employees.

• Portfolio addresses branding, supply chain efficiency, waste reduction, sustainability, and consumer connectivity.

• Broad exposure to diverse, largely consumer staples-driven end markets, with ~60% of sales in staples and ~30% in emerging markets.

• High-value categories now comprise ~45% of sales, up from ~33% in 2019, driving outsized growth and margin expansion.

• Leading positions in Materials Group, Solutions Group, and Intelligent Labels, each contributing to value creation and growth.

Financial performance and targets

• 2025 net sales reached $8.9 billion, with organic sales growth of 0.2% and adjusted EPS of $9.53, up 1% year-over-year.

• Adjusted EBITDA margin held at 16.4% in 2025, with a long-term target of 17%+ by 2028.

• Return on total capital (ROTC) was 15% in 2025, with a top quartile target compared to peers.

• Strong free cash flow generation, with $707 million in adjusted FCF and 103% FCF conversion in 2025.

• Disciplined capital allocation: $8B available for 2024-2028, with 50-55% for buybacks/M&A, 25-30% for capex/restructuring, and ~20% for dividends.

Segment highlights and growth drivers

• Materials Group: $6.1B in 2025 sales, 3.2% 5-year CAGR, 17.4% adjusted EBITDA margin, with 38% of sales from high-value categories.

• Solutions Group: $2.8B in 2025 sales, 12.7% 5-year CAGR, 17.3% adjusted EBITDA margin, with 60% of sales from high-value categories.

• Intelligent Labels: ~15%+ long-term organic sales growth target, with significant TAM and low penetration outside apparel.

• Embelex and Vestcom platforms drive growth through customization, digital solutions, and productivity enhancements for customers.

• High-value categories have outperformed GDP and global retail volumes, expanding sales mix and supporting margin growth.