Avery Dennison Corporation

“We are a global leader in materials science and digital identification solutions.”

“we implemented targeted price increases in our Materials Group reportable segment to address raw material inflation”

“Our reportable segments for fiscal year 2025 were Materials Group and Solutions Group, which comprised approximately 69% and 31%, respectively, of our total net sales.”

“We serve an array of industries worldwide, including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive.”

“Our Materials Group manufactures and sells Fasson®-, JAC®-, and Avery Dennison®-brand pressure-sensitive label materials and performance tapes products, Avery Dennison®- and Mactac®-brand graphics, and Avery Dennison®-brand reflective products.”

“our information solutions include item-level RFID solutions; visibility and loss prevention solutions; price ticketing and marking; care, content, and country of origin compliance solutions; brand protection and security solutions; and Vestcom®-brand shelf-edge productivity and media solutions.”

“High-value products and solutions include our specialty and durable label materials, graphics and reflective solutions, industrial and medical tapes, and trade and specialty adhesives; intelligent labels that use RFID tags and inlays”

“In 2025, approximately 69% of our net sales originated outside the U.S.”

“In 2025, international operations constituted a substantial majority of our business, representing approximately 69% of our net sales.”

“Foreign currency translation increased our 2025 net sales by approximately $29 million compared to the prior year.”

“As of December 31, 2025, we operated over 200 manufacturing and distribution facilities and had locations in more than 50 countries.”

“We have various non-U.S. collective labor arrangements, which make us subject to potential work stoppages”

“On October 20, 2025, we completed our business acquisition of W.F. Taylor Holdings, Inc. ("Taylor Adhesives"), a Georgia-based flooring adhesives business, for the purchase price of approximately $390 million.”

“In 2025, we acquired W.F. Taylor Holdings, Inc. ("Taylor Adhesives"), a Georgia-based flooring adhesives business. The aggregate purchase consideration for this acquisition was approximately $390 million.”

“Our larger competitors in label materials include UPM Adhesive Materials, a subsidiary of UPM Corporation; Fedrigoni Self-Adhesives; Lintec Corporation; Flexcon Corporation, Inc.”

“Growing the proportion of our portfolio in high-value categories that serve markets that are growing faster than GDP, represent large pools of potential profit and leverage our core capabilities is an important part of our long-term growth strategy.”

“During 2025, we recorded $48.8 million in restructuring charges, net of reversals... reduction of approximately 1,200 positions”

“At December 31, 2025, we had approximately $3.73 billion of debt.”

“The carrying value of our total debt increased by approximately $581 million to $3.73 billion at year-end 2025 from year-end 2024, primarily reflecting our September 2025 issuance of €500 million of senior notes due in 2035”

“Although we increased our quarterly dividend rate by approximately 7% in April 2025”

“Beginning in the first quarter of 2025, the U.S. announced tariffs on goods imported into the U.S. from numerous countries, many of which responded with reciprocal tariffs”

“The aggregate purchase consideration, including purchase consideration payable, for the 2023 Acquisitions was approximately $231 million.”

“Adjusted free cash flow$707.1 $699.5 $591.9”

“Our 2025 fiscal year began on December 29, 2024 and ended on December 31, 2025, which resulted in four extra days compared to prior years”

“In 2025, we repurchased 3.2 million shares of our common stock at an aggregate cost of $575.6 million.”

“In 2025, our average variable-rate borrowings were approximately $739 million.”

“We estimate that the indirect impact of tariffs resulted in an aggregate low single digit rate decrease in sales in our overall apparel categories over the second, third and fourth quarters of 2025.”

“Since the Russia-Ukraine war began in 2022, we have maintained our position of not shipping products to the Russian market.”

“tax enforcement has become increasingly aggressive in recent years focused primarily on transfer pricing and intercompany documentation”

“more recently, we implemented deflation-related price reductions as a result of lower raw material costs.”

“our business operations have been and may continue to be adversely affected by the current and future political environment in China”

“We may experience supply chain disruptions due to natural and other disasters or other events, or our existing relationships with suppliers could deteriorate or end in the future.”

“We face the risk that existing or new competitors, which include some of our customers, distributors and suppliers, will expand in our key market segments or develop new technologies”

“our foreign currency transaction exposure is largely mitigated because the costs of our products are generally denominated in the same currencies in which they are sold.”

“changes in the levels of inventory maintained by customers and the timing of customer purchases and new intelligent label program rollouts”