“We remain prepared for various scenarios while continuing to focus on our core strategies, including driving outsized growth in our high-value categories, leveraging cost controls and productivity, and executing on our disciplined capital allocation strategy. We made progress advancing these strategies in the third quarter, safeguarding earnings in the near term and driving initiatives to deliver strong profitable growth over the cycle.”

“Once again, I extend my gratitude to our agile, engaged and talented team for their unwavering commitment to excellence, dedication to overcoming the challenges at hand and relentless focus on executing on our strategic priorities.”

In the company’s Materials Group, sales increased 1.2% to $1.5 billion. Sales were down 1.9% on an organic basis. Modest volume/mix growth was more than offset by deflation-related price reductions.

Avery Dennison’s Solutions Group reported a sales increase of 2.0% to $700 million. Sales were up 3.6% on an organic basis. High-value categories (including Intelligent Labels) were up high single digits, and Intelligent Labels was up mid-single digits. Vestcom and Embelex were both up more than 10%.

Through the first three quarters of 2025, the company returned $670 million in cash to shareholders through a combination of share repurchases and dividends. The company repurchased 2.5 million shares at an aggregate cost of $454 million through the third quarter. Net of dilution from long-term incentive awards, the company’s share count was down 3.1 million compared to the same time last year.

Through the first three quarters of the year, the company realized approximately $48 million in pre-tax savings from restructuring, net of transition costs, and incurred approximately $23 million in pre-tax restructuring charges.

In its supplemental presentation materials, Third Quarter 2025 Financial Review and Analysis, the company provides a list of factors that it believes will contribute to its financial results. Based on the factors listed and other assumptions, the company expects fourth-quarter 2025 reported earnings per share of $2.15 to $2.25. Excluding an estimated ~$0.20 per share impact of restructuring charges and other items, the company expects fourth quarter 2025 adjusted earnings per share of $2.35 to $2.45.

Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year.

For additional information about Avery Dennison, visit www.averydennison.com.