AI Takeaway
Avery Dennison (AVY) delivered modest FY2025 revenue growth of +1.1% to $8.86B, but net income slipped -2.4% to $688M amid rising long-term debt and a significant ramp-up in share buybacks.
Revenue
$8.86B
++1.14% YoY
EPS (Basic)
$8.81
++0.46% YoY
Gross Margin
28.8%
-0.15% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
AVY grew total revenue by +1.1% year-over-year to $8.86B in FY2025, up from $8.76B in the prior year, suggesting steady but not accelerating demand across its labeling and packaging materials segments.
Source: Source: 10-K Income Statement
Gross margin edged down slightly to 28.75% from 28.90% in the prior year, as cost of revenue grew faster (+1.4%) than revenue (+1.1%), indicating modest cost pressure that offset top-line gains.
Source: Source: 10-K Income Statement
Net income fell -2.4% to $688M from $704.9M, suggesting that below-the-gross-profit-line costs — including SG&A of $1.42B (+0.5%) — and potentially higher interest expense from increased long-term debt weighed on profitability.
Source: Source: 10-K Income Statement & Balance Sheet
2 more insights available
Upgrade to unlockLong-term debt increased sharply by +25.4% to $3.20B in FY2025, raising AVY's financial leverage. With operating cash flow declining, the company's ability to service this debt comfortably could be pressured if business conditions deteriorate.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.45 versus the $2.42 analyst consensus — a +1.1% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.86B | $8.76B | +1.14% |
Cost of Revenue | $6.31B | $6.22B | +1.35% |
Gross Profit | $2.55B | $2.53B | +0.62% |
Net Income | $688M | $704.9M | -2.40% |
EPS (Basic) | $8.81 | $8.77 | +0.46% |
EPS (Diluted) | $8.79 | $8.73 | +0.69% |
R&D Expense | $136.6M | $137.8M | -0.87% |
SG&A Expense | $1.42B | $1.42B | +0.51% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.8B | $8.4B | +4.73% |
Current Assets | $2.99B | $3.08B | -2.87% |
Current Liabilities | $2.65B | $2.86B | -7.30% |
Stockholders' Equity | $2.24B | $2.31B | -3.04% |
Cash & Equivalents | $202.8M | $329.1M | -38.38% |
Long-Term Debt | $3.2B | $2.55B | +25.41% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $881.4M | $938.8M | -6.11% |
Investing Cash Flow | $-596M | $-243.1M | -145.17% |
Financing Cash Flow | $-414.9M | $-576.1M | +27.98% |
Share Buybacks | $572.3M | $247.5M | +131.23% |
D&A | $328.2M | $312.2M | +5.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 28.8% | 28.9% | -0.15% |
Net Margin | 7.8% | — | — |
ROE | 30.7% | — | — |
ROA | 7.8% | — | — |
Current Ratio | $1.127 | — | — |
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Avery Dennison reported FY2025 revenue of $8.86B, up +1.1% year-over-year, but net income declined -2.4% to $688M. Diluted EPS rose slightly to $8.79 (+0.7%) as share buybacks reduced the share count.
AVY's net income dropped -2.4% to $688M even as revenue grew +1.1%, likely due to higher interest expenses from a +25.4% surge in long-term debt to $3.20B and cost of revenue growing faster than sales. Gross margin compressed slightly to 28.75% from 28.90%.
AVY's balance sheet shows increased leverage, with long-term debt rising to $3.20B (+25.4%) and cash falling -38.4% to $202.8M. The current ratio of 1.13 indicates adequate short-term liquidity, but the elevated debt load warrants monitoring.
Yes, Avery Dennison more than doubled its share repurchases in FY2025 to $572.3M, up +131.2% from $247.5M in the prior year. This aggressive buyback program helped support EPS growth even as net income declined.
Key financial risks include a sharp rise in long-term debt to $3.20B, a -38.4% decline in cash to $202.8M, and operating cash flow falling -6.1% to $881.4M. Additionally, cost of revenue growing faster than revenue signals ongoing margin pressure that could intensify if input costs rise further.