Avery Dennison Reports 2Q 2025 Results

Avery Dennison announced preliminary, unaudited results for its second quarter ended June 28, 2025.

2Q25 net sales were $2.2 billion, down 0.7%, while organic sales change (non-GAAP) was down 1.0%.

“We delivered a solid second quarter, with earnings above expectations in a dynamic environment, reflecting the strength of our overall portfolio,” says Deon Stander, Avery Dennison’s president and CEO.

“While trade policy changes led to lower sourcing demand for apparel and general retail categories in the quarter, growth in our high-value categories and productivity in the base business offset the impact from tariffs.

“The broader impact of trade policy changes is unclear. We are prepared for various scenarios and will continue to leverage our proven playbook to safeguard earnings, while driving key initiatives to deliver strong profitable growth over the cycle,” adds Stander.

Second Quarter 2025 Results by Segment

Materials Group

•          Reported sales increased 0.2% to $1.6 billion.

•          Sales down 1.0% on organic basis

o          High-value categories, including Intelligent Labels, up low single digits in total; base categories down low single digits

o          Label materials down low single digits

o          Graphics and Reflectives up high single digits; Performance Tapes and Medical up low single digits

•          Reported operating margin of 16.1%

Solutions Group

•          Reported sales decreased 2.6% to $670 million.

•          Sales down 0.8% on organic basis

o          Sales in high-value categories, including Intelligent Labels, up low single digits

o        High-value categories, excluding the estimated indirect impact of tariffs, up high single digits

o        Intelligent Labels comparable to prior year; Vestcom up approximately 10%; Embelex down high single digits

o          Sales in base categories down mid-single digits

o          Overall apparel categories down mid-single digits

•          Reported operating margin of 8.9%

 The company’s balance sheet remains strong. Net debt to adjusted EBITDA (non-GAAP) was 2.3x at the end of the second quarter.