Avery Dennison (AVY) FY2025 10-K Annual Report
Avery Dennison (AVY) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 25, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Avery Dennison FY2025 10-K Analysis
Business Overview
- • Global leader in materials science and digital ID solutions; two segments: Materials Group (~69% of sales) and Solutions Group (~31%)
- • Acquired Taylor Adhesives (flooring adhesives) for ~$390M in 2025, expanding materials science into new end-market
- • Made venture investments in five technology companies during 2025, signaling accelerated external innovation strategy
- • ~35,000 employees at year-end 2025; ~20,000 (~58%) in Asia Pacific; ~83% of workforce outside U.S.
- • Recordable Incident Rate of 0.17 vs. OSHA manufacturing industry average of 2.7 — 16x safer than industry benchmark
Management Discussion & Analysis
- • Revenue $8,855.5M in 2025, up from $8,755.7M in 2024 (+1.1% YoY); organic sales flat, higher volume offset by raw material deflation-related price reductions
- • Net income $688M vs $704.9M in 2024; gross margin 28.7% vs 28.9%; effective tax rate 25.6% vs 26.1%
- • Materials Group best performer: net sales $6,093.3M vs $6,013M; Solutions Group net sales $2,762.2M vs $2,742.7M; both segments saw adjusted operating income decline slightly ($922.2M vs $924.7M and $286.3M vs $289.3M)
- • Adjusted free cash flow $707.1M vs $699.5M; capex $169M vs $208.8M; dividends $288.4M; share repurchases $572.3M (3.2M shares); acquired Taylor Adhesives for ~$390M
- • 2026 outlook: favorable FX translation impact anticipated; higher interest expense headwind; effective tax rate mid-20% range; tariff-related demand uncertainty persists, notably low-single-digit apparel sales decline in 2025
Risk Factors
- • Tariffs: U.S. 10% global baseline tariff + escalated China/EU rates caused low single-digit % sales decline in apparel categories Q2–Q4 2025; IEEPA Supreme Court ruling Feb 2026 adds policy instability
- • ~69% of net sales outside U.S. in 2025; ~40% from emerging markets with China political/regulatory exposure and Russia market fully suspended since 2022
- • Supply chain vulnerability: raw materials represent significant cost portion; any sustained supplier disruption risks sales/profitability with no single alternative sourcing detail disclosed
- • $3.73B total debt at Dec 31, 2025 with ~$739M average variable-rate borrowings exposed to interest rate moves; Revolver leverage covenant limits financial flexibility
- • Taylor Adhesives acquired 2025 for ~$390M; integration risk plus $2.27B goodwill on balance sheet subject to impairment if cash flow projections disappoint
Avery Dennison FY2025 Key Financial MetricsXBRL
Revenue
$8.9B
▲ +1.1% YoY
Net Income
$688M
▼ -2.4% YoY
Gross Margin
28.8%
▼ -15bp YoY
Net Margin
7.8%
▼ -28bp YoY
ROE
30.7%
▲ +20bp YoY
Total Assets
$8.8B
▲ +4.7% YoY
EPS (Diluted)
$8.79
▲ +0.7% YoY
Operating Cash Flow
$881M
▼ -6.1% YoY
Source: XBRL data from Avery Dennison FY2025 10-K filing on SEC EDGAR. All figures in USD.
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