Short answer
Avery Dennison (AVY) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $8.9B (+1.1% year over year) and net income of $688M.
- Top risk flagged: 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
FY2025 key financial metrics · XBRL
- Revenue
- $8.9B
- +1.1% YoY
- Net income
- $688M
- −2.4% YoY
- Gross margin
- 28.8%
- −0.1 pp YoY
- EPS (diluted)
- $8.79
- +0.7% YoY
- ROE
- 30.7%
- +0.2 pp YoY
- Operating cash flow
- $881M
- −6.1% YoY
Source: XBRL data from the Avery Dennison (AVY) FY2025 10-K on SEC EDGAR. USD.
Avery Dennison FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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