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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Results of Operations by Reportable Segment
Our CODM uses segment adjusted operating income to evaluate segment performance and allocate resources. Segment adjusted operating income is defined as income before taxes adjusted for other expense (income), net; interest expense, other non-operating expense (income), net; and other items.
Refer to Note 15, “Segment and Disaggregated Revenue Information,” to the Consolidated Financial Statements for more information.
| (In millions) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net sales including intersegment sales | $6,267.3 | $6,175.8 | $5,968.4 |
| Less intersegment sales | (174.0) | (162.8) | (157.1) |
| Net sales | $6,093.3 | $6,013.0 | $5,811.3 |
| Segment adjusted operating income(1) | 922.2 | 924.7 | 789.2 |
(1)Segment adjusted operating income excluded other expense (income), net, and other items of $31.6 million, $40.4 million and $88.3 million in 2025, 2024, and 2023, respectively. Exclusions related to charges associated with restructuring actions, outcomes of legal matters and settlements, net, (gain) loss on venture and other investments, transaction and related costs, losses from Argentine peso remeasurement and Blue Chip Swap transactions and (gain) loss on sales of assets.
The factors impacting reported net sales change are shown in the table below.
| 2025 | 2024 | |
|---|---|---|
| Reported net sales change | 1% | 4% |
| Reclassification of sales between segments | (1) | — |
| Foreign currency translation | (1) | — |
| Impact of extra days | — | — |
| Sales change ex. currency(1) | — | 4 |
| Acquisitions | — | — |
| Organic sales change(1) | (1)% | 4% |
(1)Totals may not sum due to rounding.
In 2025, net sales on an organic basis decreased compared to the prior year primarily due to the impact of raw material deflation-related price reductions, partially offset by favorable volume/mix. On an organic basis, net sales increased by a low single digit rate in North America, and decreased by low single digit rates in Europe, the Middle East and North Africa, Asia Pacific and Latin America.
In 2024, net sales on an organic basis increased compared to the prior year due to higher volume, partially offset by the impact of raw material deflation-related price reductions. On an organic basis, net sales increased by low single digit rates in North America and Europe, the Middle East and North Africa and mid-single digit rates in Asia Pacific and Latin America.
Segment Adjusted Operating Income
Segment adjusted operating income decreased in 2025 compared to 2024 primarily due the net impact of pricing and raw material input costs, as well as higher employee-related costs, partially offset by favorable volume/mix and benefits from productivity initiatives, including material re-engineering and savings from restructuring actions, net of transition costs.
Segment adjusted operating income increased in 2024 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 pricing and raw material input costs.
| (In millions) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net sales including intersegment sales | $2,817.3 | $2,795.0 | $2,588.5 |
| Less intersegment sales | (55.1) | (52.3) | (35.5) |
| Net sales | $2,762.2 | $2,742.7 | $2,553.0 |
| Segment adjusted operating income(1) | 286.3 | 289.3 | 252.0 |
(1) Segment adjusted operating income excluded other expense (income), net, and other items of $39.0 million, $37.5 million and $86.3 million in 2025, 2024, and 2023, respectively. Exclusions related to charges associated with restructuring actions, outcomes of legal matters and settlements, net, (gain) loss on venture and other investments, (gain) loss on sales of assets and transaction and related costs.
The factors impacting reported net sales change are shown in the table below.
| 2025 | 2024 | |
|---|---|---|
| Reported net sales change | 1% | 7% |
| Reclassification of sales between segments | 2 | — |
| Foreign currency translation | — | 1 |
| Impact of extra days | — | — |
| Sales change ex. currency(1) | 2 | 8 |
| Acquisitions | — | (2) |
| Organic sales change(1) | 2% | 6% |
(1) Totals may not sum due to rounding.
In 2025, on an organic basis, net sales increased by a mid-single digit rate in high-value categories and decreased by a low single digit rate in the base business compared to the prior year. Company-wide, on an organic basis, sales of intelligent labels increased by a low single digit rate compared to the prior year.
In 2024, on an organic basis, net sales increased by a low single digit rate in high-value categories and a low-double digit rate in the base business compared to the prior year. Company-wide, on an organic basis, sales of intelligent labels increased by a high single digit rate compared to the prior year.
Segment Adjusted Operating Income
Segment adjusted operating income decreased in 2025 compared to 2024 primarily due to higher employee-related costs, the net impact of pricing and raw material input costs, and growth investments, partially offset by benefits from productivity initiatives, including savings from restructuring actions, net of transition costs, and higher volume.
Segment adjusted operating income increased in 2024 compared to 2023 primarily due to higher volume and benefits from productivity initiatives, including savings from restructuring actions, net of transition costs, partially offset by higher employee-related costs and growth investments.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.