Avery Dennison Corp
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Analysis of Results of Operations for the Third Quarter
Income Before Taxes
| Three Months Ended | ||
|---|---|---|
| (In millions) | September 30, 2026 | September 27, 2025 |
| Net sales | $2,331.5 | $2,215.5 |
| Cost of products sold | 1,676.7 | 1,580.5 |
| Gross profit | 654.8 | 635.0 |
| Marketing, general and administrative expense | 372.7 | 353.9 |
| Other expense (income), net | 9.6 | 16.7 |
| Interest expense | 35.7 | 33.3 |
| Other non-operating expense (income), net | (4.4) | (3.7) |
| Income before taxes | $241.2 | $234.8 |
Gross Profit
Gross profit for the third quarter of 2026 increased from the same period last year primarily due to the net benefit of pricing and raw material costs, including material re-engineering, benefits from productivity initiatives, including savings from restructuring actions, net of transition costs, and higher volume, partially offset by unfavorable mix and higher employee-related costs.
Marketing, General and Administrative Expense
Marketing, general and administrative expense increased in the third quarter of 2026 compared to the same period last year primarily due to higher employee-related costs and growth investments, partially offset by benefits from productivity initiatives, including savings from restructuring actions, net of transition costs.
Other Expense (Income), Net
| Three Months Ended | ||
|---|---|---|
| (In millions) | September 30, 2026 | September 27, 2025 |
| Other expense (income), net, by type | ||
| Restructuring charges, net of reversals: | ||
| Severance and related costs, net of reversals | $8.1 | $7.5 |
| Asset impairment and lease cancellation charges | .3 | 2.3 |
| Outcomes of legal matters and settlements | 1.3 | 4.7 |
| Loss from Argentine peso remeasurement | .5 | 1.9 |
| (Gain) loss on sales of assets | .4 | (.4) |
| (Gain) loss on venture and other investments | (1.0) | (1.3) |
| Transaction and related costs | — | 2.0 |
| Other expense (income), net | $9.6 | $16.7 |
Refer to Note 4, “Cost Reduction Actions,” to the unaudited Condensed Consolidated Financial Statements for more information regarding restructuring charges.
Interest Expense
Interest expense increased in the third quarter of 2026 compared to the same period last year primarily due to the €500 million of senior notes we issued in September 2025, partially offset by a decrease in commercial paper borrowings.
Net Income and Earnings per Share
| Three Months Ended | ||
|---|---|---|
| (In millions, except per share amounts and percentages) | September 30, 2026 | September 27, 2025 |
| Income before taxes | $241.2 | $234.8 |
| Provision for income taxes | 71.5 | 68.5 |
| Net income | $169.7 | $166.3 |
| Per share amounts: | ||
| Net income per common share | $2.24 | $2.13 |
| Net income per common share, assuming dilution | 2.24 | 2.13 |
| Effective tax rate | 29.6% | 29.2% |
Provision for Income Taxes
Our effective tax rate for the three months ended September 30, 2026 was comparable to the same period last year. Refer to Note 6, “Taxes Based on Income,” to the unaudited Condensed 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.