Avery Dennison Corp
For the period ended Dec 31, 2025. Filed Feb 25, 2026.
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FY2025 · Filed Feb 25, 2026
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Analysis of Results of Operations
Income before Taxes
| (In millions, except percentages) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net sales | $8,855.5 | $8,755.7 | $8,364.3 |
| Cost of products sold | 6,309.2 | 6,225.0 | 6,086.8 |
| Gross profit | 2,546.3 | 2,530.7 | 2,277.5 |
| Marketing, general and administrative expense | 1,422.5 | 1,415.3 | 1,313.7 |
| Other expense (income), net | 77.5 | 71.6 | 180.9 |
| Interest expense | 135.4 | 117.0 | 119.0 |
| Other non-operating expense (income), net | (14.2) | (26.7) | (30.8) |
| Income before taxes | $925.1 | $953.5 | $694.7 |
Gross Profit
Gross profit in 2025 increased compared to 2024 primarily due to benefits from productivity initiatives, including material re-engineering and savings from restructuring actions, net of transition costs, and higher volume, partially offset by the net impact of raw material deflation-related price reductions and higher employee-related costs.
Gross profit in 2024 increased compared to 2023 primarily due to higher volume and benefits from productivity initiatives, including material re-engineering and savings from restructuring actions, net of transition costs, partially offset by higher employee-related costs and the net impact of raw material deflation-related price reductions.
Marketing, General and Administrative Expense
Marketing, general and administrative expense increased in 2025 compared to 2024 primarily due to growth investments, partially offset by benefits from productivity initiatives, including savings from restructuring actions, net of transition costs, and lower employee-related costs.
Marketing, general and administrative expense increased in 2024 compared to 2023 primarily due to higher employee-related costs, partially offset by benefits from productivity initiatives, including savings from restructuring actions, net of transition costs.
Other Expense (Income), Net
| (In millions) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Other expense (income), net, by type | |||
| Restructuring charges, net of reversals: | |||
| Severance and related costs, net of reversals | $43.2 | $35.4 | $70.8 |
| Asset impairment and lease cancellation charges | 4.0 | 6.5 | 8.6 |
| Other items: | |||
| (Gain) loss on venture and other investments, net | 23.3 | 19.2 | 1.5 |
| Losses from Argentine peso remeasurement and Blue Chip Swap transactions | 5.6 | 16.4 | 29.9 |
| Transaction and related costs | 5.1 | .3 | 5.3 |
| Outcomes of legal matters and settlements, net | 9.2 | (6.2) | 64.3 |
| (Gain) loss on sales of assets | (12.9) | — | .5 |
| Other expense (income), net | $77.5 | $71.6 | $180.9 |
Refer to Note 13, “Cost Reduction Actions,” to the Consolidated Financial Statements for more information regarding restructuring charges, net of reversals.
Refer to Note 9, “Fair Value Measurements,” to the Consolidated Financial Statements for more information regarding (gain) loss on venture and other investments, net.
Refer to Note 8, "Contingencies," and Note 15, “Segment and Disaggregated Revenue Information,” to the Consolidated Financial Statements for more information regarding outcomes of legal matters and settlements, net.
Interest Expense
Interest expense increased in 2025 compared to 2024 primarily due to the €500 million of senior notes we issued in September 2025 and the €500 million of senior notes we issued in November 2024.
Interest expense decreased in 2024 compared to 2023 primarily due to a decrease in commercial paper borrowings, partially offset by higher debt balances.
Other Non-Operating Expense (Income), Net
Other non-operating income decreased in 2025 compared to 2024 primarily due to lower interest income and benefits from net actuarial gains in our defined benefit plans.
Other non-operating income decreased in 2024 compared to 2023 due to lower interest income, primarily in Argentina.
Net Income and Earnings per Share
| (In millions, except percentages and per share amounts) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Income before taxes | $925.1 | $953.5 | $694.7 |
| Provision for income taxes | 237.1 | 248.6 | 191.7 |
| Net income | $688.0 | $704.9 | $503.0 |
| Net income per common share | $8.81 | $8.77 | $6.23 |
| Net income per common share, assuming dilution | 8.79 | 8.73 | 6.20 |
| Effective tax rate | 25.6% | 26.1% | 27.6% |
Provision for Income Taxes
Our effective tax rate in 2025 decreased compared to 2024 primarily due to higher benefits from the release of valuation allowance as a result of completing a foreign restructuring transaction and a favorable ruling related to deductibility of interest expense, partially offset by lower excess tax benefits associated with stock-based payments. Our effective tax rate in 2024 decreased compared to 2023 primarily due to lower non-deductible expenses resulting from the impact of the Argentine peso remeasurement loss and lower tax charges from the recognition of uncertain tax positions in certain foreign jurisdictions, partially offset by higher tax charges from valuation allowances.
Refer to Note 14, “Taxes Based on Income,” to the Consolidated Financial Statements for more information.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.