Avery Dennison (AVY) Investor update summary

Strategic overview and high-value category focus

• High-value categories (HVC) now represent nearly 45% of total sales, delivering higher margins and are targeted to reach ~50% by 2030, systematically lifting baseline growth and margins.

• HVC growth is driven by secular trends such as digitization, sustainability, and personalization, resulting in above-GDP growth.

• Expansion is intentional, supported by proven enterprise strategies, disciplined capital allocation, and a balanced global footprint.

• Operations span over 50 countries with approximately 35,000 employees, serving diverse end markets including food, industrial, healthcare, logistics, and apparel.

• Structural resilience is underpinned by exposure to essential, less cyclical end markets and leadership in ESG.

Segment performance and growth drivers

• Materials Group leads in self-adhesive label materials, with HVC at 38% of segment sales and 2025 net sales of $6.1B; EBITDA margin at 17.4%.

• Solutions Group, the digital and branding engine, has 60% of sales from HVC, 2025 net sales of $2.8B, and EBITDA margin at 17.3%.

• Intelligent Labels segment reached $900M in 2025 sales, shows low-teens organic growth, and has a large, under-penetrated addressable market.

• Vestcom and Embelex divisions deliver premium margins through data-driven shelf-edge solutions and apparel embellishments, with Vestcom exceeding $500M in sales.

• Performance materials, specialty/durable labels, and graphics/reflectives are key growth platforms leveraging core capabilities and innovation.

Financial performance and capital allocation

• 2025 net sales reached $8.9B, with a 5-year organic sales CAGR of 4.1% and adjusted EBITDA margin of 16.4%.

• Adjusted EPS grew from $3.44 in 2015 to $9.53 in 2025, nearly tripling over the past decade.

• Long-term framework targets 5%+ sales growth ex-currency, 17%+ EBITDA margin by 2028, and 10%+ annual EPS growth.

• $8B investment capacity over five years supports organic and inorganic growth, with disciplined M&A focused on HVC.

• Capital allocation balances reinvestment, dividends, buybacks, and strategic acquisitions.