Avery Dennison (NYSE:AVY) delivered fourth-quarter earnings that surpassed Wall Street expectations, as the materials science leader leaned on cost-cutting measures to overcome a sluggish consumer environment and global trade headwinds.
The Mentor, Ohio-based company said Wednesday that adjusted earnings for the quarter ended Dec. 31 were $2.45 per share, edging past the $2.40 consensus estimate from analysts.
Net income for the period stood at $166.4 million, or $2.15 per share on a GAAP basis. \
While the bottom line showed resilience, revenue of $2.27 billion fell just short of the $2.29 billion anticipated by the market.
The results reflect a year of navigating "dynamic" market conditions, including tariff uncertainties and a shift in consumer spending.
CEO Deon Stander credited the company's "productivity playbook" for maintaining an adjusted EBITDA margin of 16.4% for the full year.
"We delivered solid full-year results in 2025, reflecting the durability of our business model," Stander said in a statement.
He highlighted the company’s push into "high-value" categories—such as Intelligent Labels and RFID technology—which now account for roughly 45% of total company revenue.
Within its business units, the Materials Group saw reported sales rise of 5.1% to $1.5 billion, though organic sales dipped 0.9% as price reductions linked to deflationary trends offset modest volume growth.
The Solutions Group reported a 1.5% revenue increase to $724 million, buoyed by high-single-digit growth in its smart-label segment.
Looking ahead to the first quarter of 2026, the company issued a cautious but steady forecast.
Avery Dennison expects adjusted earnings to range between $2.40 and $2.46 per share.