AVY

Avery Dennison is a global leader in labeling and functional materials (including RFID/Intelligent Labels), operating in more than 50 countries with roughly 69% of net sales originating outside the U.S. FY2025 was a year of stability rather than growth: revenue edged up just 1.1% to $8.86B, net income slipped 2.4% to $688M, and diluted EPS was essentially flat at $8.79. Margins held at 28.8% gross and 7.8% net. The standout figure is a 30.7% ROE, though that is flattered by a thin $2.24B equity base after heavy buybacks. Revenue has effectively plateaued near $8.4B-$9.0B since the 2022 peak, so this is a mature, GDP-plus business rather than a grower.

Capital allocation is shareholder-friendly and aggressive: the company repurchased $572M of stock (up 131.2%, shrinking shares 2.7%) and paid $288M in dividends, funded by $881M of operating cash flow. That capital return was partly debt-financed — long-term debt rose 25.4% to $3.20B while cash fell 38.4% to $203M — so leverage has crept up to support the buyback. With capex cut 19.1% to $169M, free cash conversion remains healthy, but the balance sheet has less slack than before.