Revenue growth remains volatile with recent quarterly performance ranging from a 0.7% decline to a 7.0% increase, while gross margins remain tightly constrained between 27.9% and 29.6%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Jan'22 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Jan'16 | Jan'15 | Dec'13 | Dec'12 | Dec'11 | Jan'11 | Jan'10 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Jan'05 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Jan'00 | Jan'99 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 9.01B | 8.86B | 8.76B | 8.36B | 9.04B | 8.41B | 6.97B | 7.07B | 7.16B | 6.61B | 6.09B | 5.97B | 6.33B | 6.14B | 6.04B | 6.03B | 5.78B | 5.95B | 6.71B | 6.31B | 5.58B | 5.47B | 5.32B | 4.76B | 4.21B | 3.8B | 3.89B | 3.77B | 3.46B | 3.35B | 3.22B |
| Revenue Growth % | 2.89% | 1.14% | 4.68% | -7.47% | 7.5% | 20.61% | -1.39% | -1.24% | 8.24% | 8.66% | 2% | -5.74% | 3.1% | 1.73% | 0.15% | 4.23% | -2.87% | -11.29% | 6.38% | 13.13% | 1.87% | 2.94% | 11.64% | 13.21% | 10.61% | -2.32% | 3.33% | 8.91% | 3.41% | 3.82% | 3.49% |
| Cost of Goods Sold | 6.42B | 6.31B | 6.23B | 6.09B | 6.64B | 6.1B | 5.05B | 5.17B | 5.25B | 4.8B | 4.39B | 4.33B | 4.68B | 4.5B | 4.45B | 4.5B | 4.26B | 4.36B | 4.98B | 4.59B | 4.05B | 3.85B | 3.74B | 3.3B | 2.85B | 2.56B | 2.4B | 2.34B | 2.19B | 2.15B | 2.09B |
| COGS % of Revenue | - | 71.25% | 71.13% | 72.81% | 73.46% | 72.54% | 72.44% | 73.07% | 73.33% | 72.59% | 72.06% | 72.51% | 73.87% | 73.36% | 73.78% | 74.73% | 73.61% | 73.16% | 74.26% | 72.69% | 72.59% | 70.38% | 70.38% | 69.39% | 67.82% | 67.39% | 61.75% | 62% | 63.24% | 64.15% | 64.88% |
| Gross Profit | 2.59B | 2.55B | 2.53B | 2.27B | 2.4B | 2.31B | 1.92B | 1.9B | 1.91B | 1.81B | 1.7B | 1.64B | 1.65B | 1.64B | 1.58B | 1.52B | 1.53B | 1.6B | 1.73B | 1.72B | 1.53B | 1.62B | 1.57B | 1.46B | 1.35B | 1.24B | 1.49B | 1.43B | 1.27B | 1.2B | 1.13B |
| Gross Margin % | 28.76% | 28.75% | 28.87% | 27.19% | 26.54% | 27.46% | 27.56% | 26.93% | 26.67% | 27.41% | 27.94% | 27.49% | 26.13% | 26.65% | 26.22% | 25.27% | 26.39% | 26.84% | 25.74% | 27.31% | 27.41% | 29.62% | 29.62% | 30.61% | 32.18% | 32.61% | 38.25% | 38% | 36.76% | 35.85% | 35.12% |
| Gross Profit Growth % | - | 0.74% | 11.14% | -5.19% | 3.87% | 20.19% | 0.92% | -0.31% | 5.33% | 6.61% | 3.68% | -0.82% | 1.09% | 3.39% | 3.91% | -0.19% | -4.49% | -7.49% | 0.27% | 12.69% | -5.72% | 2.93% | 8.02% | 7.7% | 9.15% | -16.71% | 4% | 12.59% | 6.02% | 5.99% | 6.24% |
| Operating Expenses | 1.47B | 1.44B | 1.4B | 1.32B | 1.33B | 1.27B | 1.05B | 1.08B | 1.1B | 1.06B | 1.1B | 1.11B | 1.11B | 1.14B | 1.2B | 1.16B | 1.22B | 1.28B | 1.28B | 1.14B | 1.01B | 1.13B | 1.11B | 1.03B | 913.1M | 830.5M | 1.01B | 993M | 900.4M | 856.6M | 825.8M |
| OpEx % of Revenue | - | 16.29% | 15.99% | 15.77% | 14.67% | 15.1% | 15.01% | 15.33% | 15.37% | 16.06% | 18.1% | 18.62% | 17.57% | 18.62% | 19.84% | 19.21% | 21.08% | 21.57% | 19.08% | 18.11% | 18.13% | 20.7% | 20.8% | 21.73% | 21.7% | 21.84% | 25.89% | 26.35% | 26.02% | 25.6% | 25.63% |
| Selling, General & Admin | 1.45B | 1.44B | 1.26B | 1.18B | 1.19B | 1.13B | 933.5M | 991.3M | 1B | 968.9M | 1.01B | 1.02B | 1.01B | 1.05B | 1.09B | 1.07B | 1.13B | 1.19B | 1.19B | 1.05B | 923.2M | 1.05B | 1.02B | 1.03B | 913.1M | 830.5M | 851.3M | 842.6M | 773.2M | 739.8M | 712.4M |
| SG&A % of Revenue | - | 16.29% | 14.42% | 14.15% | 13.17% | 13.47% | 13.39% | 14.02% | 14% | 14.65% | 16.63% | 17.08% | 15.95% | 17.05% | 18.09% | 17.68% | 19.6% | 20.05% | 17.68% | 16.6% | 16.56% | 19.14% | 19.26% | 21.73% | 21.7% | 21.84% | 21.86% | 22.36% | 22.35% | 22.11% | 22.11% |
| Research & Development | 0 | 0 | 137.8M | 135.8M | 136.1M | 136.6M | 112.8M | 92.6M | 98.2M | 93.4M | 89.7M | 91.9M | 102.5M | 96M | 105.1M | 92.4M | 85.6M | 90.7M | 94M | 95.5M | 87.9M | 85.4M | 81.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 1.57% | 1.62% | 1.51% | 1.62% | 1.62% | 1.31% | 1.37% | 1.41% | 1.47% | 1.54% | 1.62% | 1.56% | 1.74% | 1.53% | 1.48% | 1.52% | 1.4% | 1.51% | 1.58% | 1.56% | 1.54% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 156.9M | 150.4M | 127.2M | 116.8M | 113.4M |
| Operating Income | 1.12B | 1.1B | 1.13B | 954.9M | 1.07B | 1.04B | 875M | 819.8M | 809.1M | 750.7M | 599M | 529.3M | 541.9M | 492.9M | 385.2M | 365M | 306.7M | 313.5M | 446.8M | 579.9M | 517.3M | 488.3M | 469.2M | 423.1M | 440.6M | 409.7M | 480.9M | 438.8M | 371.3M | 342.9M | 305.9M |
| Operating Margin % | 12.45% | 12.47% | 12.88% | 11.42% | 11.86% | 12.37% | 12.55% | 11.6% | 11.3% | 11.35% | 9.84% | 8.87% | 8.56% | 8.03% | 6.38% | 6.06% | 5.3% | 5.27% | 6.66% | 9.19% | 9.28% | 8.92% | 8.82% | 8.88% | 10.47% | 10.77% | 12.35% | 11.64% | 10.73% | 10.25% | 9.49% |
| Operating Income Growth % | - | -2.08% | 18.06% | -10.93% | 3.12% | 18.82% | 6.73% | 1.32% | 7.78% | 25.33% | 13.17% | -2.33% | 9.94% | 27.96% | 5.53% | 19.01% | -2.17% | -29.83% | -22.95% | 12.1% | 5.94% | 4.07% | 10.9% | -3.97% | 7.54% | -14.81% | 9.59% | 18.18% | 8.28% | 12.1% | 14.36% |
| EBITDA | 1.25B | 1.35B | 1.44B | 1.25B | 1.36B | 1.28B | 1.08B | 998.8M | 990.1M | 929.4M | 779.1M | 717.6M | 743.5M | 697.2M | 605.8M | 611.5M | 554.3M | 580.8M | 725.2M | 814.5M | 714.7M | 689.8M | 657.4M | 602.4M | 593.4M | 565.7M | 637.8M | 589.2M | 498.5M | 459.7M | 419.3M |
| EBITDA Margin % | 13.92% | 15.21% | 16.44% | 14.98% | 15.08% | 15.27% | 15.5% | 14.13% | 13.83% | 14.05% | 12.8% | 12.03% | 11.75% | 11.36% | 10.04% | 10.15% | 9.59% | 9.76% | 10.81% | 12.91% | 12.82% | 12.6% | 12.36% | 12.65% | 14.11% | 14.87% | 16.38% | 15.64% | 14.41% | 13.74% | 13.01% |
| EBITDA Growth % | -11.46% | -6.46% | 14.86% | -8.03% | 6.15% | 18.84% | 8.16% | 0.88% | 6.53% | 19.29% | 8.57% | -3.48% | 6.64% | 15.09% | -0.93% | 10.32% | -4.56% | -19.91% | -10.96% | 13.96% | 3.61% | 4.93% | 9.13% | 1.52% | 4.9% | -11.3% | 8.25% | 18.19% | 8.44% | 9.64% | 11.69% |
| D&A (Non-Cash Add-back) | 164.8M | 242.7M | 312.2M | 298.4M | 290.7M | 244.1M | 205.3M | 179M | 181M | 178.7M | 180.1M | 188.3M | 201.6M | 204.3M | 220.6M | 246.5M | 247.6M | 267.3M | 278.4M | 234.6M | 197.4M | 201.5M | 188.2M | 179.3M | 152.8M | 156M | 156.9M | 150.4M | 127.2M | 116.8M | 113.4M |
| EBIT | 1.08B | 1.06B | 1.07B | 813.7M | 1.08B | 1.06B | 807.3M | 325.3M | 613.3M | 650.7M | 536.9M | 469.3M | 427.6M | 422M | 323.9M | 299.7M | 310.5M | -712.5M | 386.5M | 480.5M | 481.1M | 424.7M | 434M | 427.6M | 431.1M | 399.7M | 480.9M | 438.8M | 371.3M | 342.9M | 305.9M |
| Net Interest Income | -140.1M | -135.4M | -117M | -107.2M | -84.1M | -70.2M | -70M | -75.8M | -58.5M | -61.2M | -59.8M | -60.4M | -63.2M | -58.9M | -68.4M | -66.8M | -71.5M | -78.4M | -115.9M | -105.2M | -55.5M | -57.9M | -58.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 11.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 140.1M | 135.4M | 117M | 119M | 84.1M | 70.2M | 70M | 75.8M | 58.5M | 63M | 59.9M | 60.5M | 63.3M | 60.9M | 72.8M | 71M | 76.6M | 85.3M | 115.9M | 105.2M | 55.5M | 57.9M | 58.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -182.7M | -178.8M | -173.9M | -260.2M | -72.8M | -51M | -141.4M | -572.9M | -256.3M | -161.2M | -121.9M | -120.4M | -177.5M | -129.8M | -129.7M | -132.1M | -67.7M | -1.1B | -176.2M | -204.6M | -91.7M | -121.5M | -93.9M | -84.6M | -76.8M | -50.4M | -54.6M | -108.4M | -34.6M | -31.7M | -35.3M |
| Pretax Income | 938.5M | 925.1M | 953.5M | 694.7M | 999.3M | 988.7M | 733.6M | 246.9M | 552.8M | 589.5M | 477.1M | 408.9M | 364.4M | 363.1M | 255.5M | 232.9M | 239M | -790.9M | 270.6M | 375.3M | 425.6M | 366.8M | 375.3M | 334.9M | 364.8M | 359.8M | 426.3M | 330.4M | 336.7M | 311.2M | 270.6M |
| Pretax Margin % | 10.42% | 10.45% | 10.89% | 8.31% | 11.06% | 11.76% | 10.52% | 3.49% | 7.72% | 8.91% | 7.84% | 6.85% | 5.76% | 5.91% | 4.23% | 3.86% | 4.13% | -13.29% | 4.03% | 5.95% | 7.63% | 6.7% | 7.06% | 7.03% | 8.67% | 9.46% | 10.95% | 8.77% | 9.73% | 9.3% | 8.4% |
| Income Tax | 248.7M | 237.1M | 248.6M | 191.7M | 242.2M | 248.6M | 177.7M | -56.7M | 85.4M | 307.7M | 156.4M | 134.5M | 113.3M | 118.8M | 86.4M | 78.5M | 34.4M | -44.2M | 4.5M | 71.8M | 73.1M | 75M | 93.7M | 92.1M | 107.6M | 116.4M | 142.8M | 115M | 113.4M | 106.4M | 94.7M |
| Effective Tax Rate % | 26.5% | 25.63% | 26.07% | 27.59% | 24.24% | 25.14% | 24.22% | -22.96% | 15.45% | 52.2% | 32.78% | 32.89% | 31.09% | 32.72% | 33.82% | 33.71% | 14.39% | 5.59% | 1.66% | 19.13% | 17.18% | 20.45% | 24.97% | 27.5% | 29.5% | 32.35% | 33.5% | 34.81% | 33.68% | 34.19% | 35% |
| Net Income | 689.8M | 688M | 704.9M | 503M | 757.1M | 740.1M | 555.9M | 303.6M | 467.4M | 281.8M | 320.7M | 274.3M | 248.9M | 215.8M | 215.4M | 190.1M | 316.9M | -746.7M | 266.1M | 303.5M | 367.2M | 226.4M | 279.7M | 267.9M | 257.2M | 243.2M | 283.5M | 215.4M | 223.3M | 204.8M | 175.9M |
| Net Margin % | 7.66% | 7.77% | 8.05% | 6.01% | 8.38% | 8.8% | 7.97% | 4.29% | 6.53% | 4.26% | 5.27% | 4.6% | 3.93% | 3.51% | 3.57% | 3.15% | 5.48% | -12.54% | 3.97% | 4.81% | 6.59% | 4.14% | 5.26% | 5.63% | 6.11% | 6.39% | 7.28% | 5.72% | 6.45% | 6.12% | 5.46% |
| Net Income Growth % | -1.29% | -2.4% | 40.14% | -33.56% | 2.3% | 33.14% | 83.1% | -35.04% | 65.86% | -12.13% | 16.92% | 10.2% | 15.34% | 0.19% | 13.31% | -40.01% | 142.44% | -380.61% | -12.32% | -17.35% | 62.19% | -19.06% | 4.4% | 4.16% | 5.76% | -14.22% | 31.62% | -3.54% | 9.03% | 16.43% | 22.41% |
| Net Income (Continuing) | 689.8M | 688M | 704.9M | 503M | 757.1M | 740.1M | 555.9M | 303.6M | 467.4M | 281.8M | 320.7M | 274.4M | 251.1M | 244.3M | 169.1M | 154.4M | 241.8M | -746.7M | 266.1M | 303.5M | 352.5M | 291.8M | 281M | 245.1M | 249.8M | 236.3M | 283.5M | 215.4M | 223.3M | 204.8M | 175.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 46.3M | 35.7M | 75.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.96 | 8.78 | 8.73 | 6.20 | 9.21 | 8.83 | 6.61 | 3.57 | 5.28 | 3.13 | 3.54 | 2.95 | 2.60 | 2.16 | 2.08 | 1.78 | 2.90 | -7.21 | 2.70 | 3.07 | 3.72 | 2.26 | 2.78 | 2.67 | 2.59 | 2.47 | 2.84 | 2.13 | 2.15 | 1.93 | 1.63 |
| EPS Growth % | 2.19% | 0.57% | 40.81% | -32.68% | 4.3% | 33.59% | 85.15% | -32.39% | 68.69% | -11.58% | 20% | 13.46% | 20.37% | 3.85% | 16.85% | -38.62% | 140.22% | -367.04% | -12.05% | -17.47% | 64.6% | -18.7% | 4.12% | 3.09% | 4.86% | -13.03% | 33.33% | -0.93% | 11.4% | 18.4% | 20.74% |
| EPS (Basic) | - | 8.80 | 8.73 | 6.23 | 9.28 | 8.93 | 6.67 | 3.61 | 5.52 | 3.20 | 3.63 | 3.01 | 2.73 | 2.24 | 2.16 | 1.78 | 2.90 | -7.24 | 2.70 | 3.09 | 3.74 | 2.27 | 2.80 | 2.69 | 2.61 | 2.49 | 2.88 | 2.17 | 2.20 | 1.99 | 1.68 |
| Diluted Shares Outstanding | 77M | 77.4M | 80.7M | 81.1M | 82.2M | 83.8M | 84.1M | 85M | 88.6M | 90.1M | 90.7M | 92.9M | 95.7M | 100.1M | 103.5M | 106.8M | 106.8M | 103.6M | 98.7M | 98.9M | 100.4M | 100.5M | 100.5M | 100M | 99.4M | 98.6M | 99.8M | 101.3M | 104.1M | 106.11M | 107.91M |
| Basic Shares Outstanding | 77M | 77.4M | 80.4M | 80.7M | 81.6M | 82.9M | 83.4M | 84M | 84.72M | 88.01M | 88.31M | 89.97M | 90.46M | 96.18M | 99.92M | 106.8M | 105.39M | 103.1M | 98.4M | 98.1M | 99.8M | 100.1M | 99.9M | 99.4M | 98.5M | 97.8M | 98.3M | 99.2M | 101.5M | 102.91M | 104.7M |
| Dividend Payout Ratio | - | 41.92% | 39.37% | 51.03% | 31.55% | 29.81% | 35.4% | 62.48% | 37.44% | 55.18% | 44.43% | 48.52% | 50.26% | 51.9% | 51.25% | 56.02% | 27.99% | - | 65.76% | 56.61% | 46.79% | 74.51% | 58.85% | 59.8% | 57.74% | 55.67% | 43.63% | 52% | 45.59% | 42.38% | 38.72% |
Commodity input cost volatility
According to the latest quarterly income statement data, AVY's revenue growth has fluctuated between a contraction of 0.7% and a peak of 7.0%, suggesting that the company is struggling to maintain consistent organic momentum in its core label and graphic materials business segments during recent periods.
The inconsistent top-line performance appears to reflect a reliance on transactional volume rather than sustained structural demand. Investors should monitor whether the recent expansion into RFID applications can provide a more durable growth floor to offset the cyclicality inherent in the company's legacy packaging and labeling operations.
As reported in the company's financial filings, gross margins have remained tightly range-bound between 27.9% and 29.6%, indicating that AVY faces significant structural limitations in its ability to expand profitability while operating within a high-variable cost environment dominated by petroleum-derived resins and paper pulp inputs.
The inability to consistently push gross margins above the 30% threshold suggests that pricing power may be partially neutralized by the commodity-sensitive nature of the product mix. This margin profile warrants further investigation into whether the company's shift toward high-value RFID solutions is sufficient to overcome these persistent input cost pressures.
Based on the provided income statement figures, operating margins have hovered near 12% despite varying levels of gross profit, which implies that the company is currently unable to achieve meaningful operating leverage as SG&A expenses continue to scale in tandem with or faster than gross profit growth.
The lack of significant operating margin expansion suggests that the company's global manufacturing footprint may be reaching a point of diminishing returns regarding efficiency. Analysts should scrutinize whether future SG&A discipline can be improved to allow operating income to scale more effectively during periods of revenue acceleration.
As evidenced by the quarterly income statements, stock-based compensation remains a recurring expense, reaching as high as $9.9 million in 2024Q2, which may indicate that reported net income figures are slightly inflated by the exclusion of these non-cash costs from core operational performance metrics.
The presence of consistent stock-based compensation warrants caution when evaluating the quality of EPS growth, as these charges represent a real economic cost to shareholders. Investors should monitor the trend of these expenses relative to net income to ensure that management's incentive structures are appropriately aligned with long-term value creation.
While the company emphasizes its transition toward digital identification, the income statement data suggests that AVY remains highly vulnerable to commodity price spikes, as evidenced by the historical sensitivity of gross margins to fluctuations in raw material costs across the label and graphic materials segment.
Short-sellers may focus on the potential for margin compression if the company fails to pass through inflationary costs to customers in a timely manner. The current reliance on high-volume, low-margin consumables suggests that the company's valuation may be at risk if the anticipated shift to higher-margin software-led revenue fails to materialize.
Quick answers to the most common questions about buying AVY stock.
For fiscal year 2025, Avery Dennison Corporation (AVY) reported total revenue of $8.86B. This represents a 174.8% increase compared to $3.22B in 1996.
Avery Dennison Corporation (AVY) is profitable, generating $688.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.8%.
Avery Dennison Corporation (AVY) reported an operating income of $1.10B, resulting in an operating profit margin of 12.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Avery Dennison Corporation (AVY) generated $2.55B in gross profit for the year, representing a gross profit margin of 28.8%. This demonstrates the company's core pricing power and production efficiency.