Avery Dennison Corporation (AVY): Business Model Canvas [Dec-2025 Updated]

You're digging into Avery Dennison's business model, and honestly, the story as of late 2025 is a fascinating blend of old-school manufacturing muscle and digital future-proofing. Forget just making stickers; this company, with trailing revenue near $8.8 billion, is fundamentally a materials science firm powering the connected supply chain, linking over 30 billion items through its atma.io platform. I've mapped out the nine essential building blocks-from their strategic moves like the August 2025 Meridian Adhesives Group acquisition to how they monetize sustainability-so you can see precisely where their $8.77 billion in trailing 12-month revenue is coming from. Keep reading below for the precise breakdown of their Key Resources and Revenue Streams.

Avery Dennison Corporation (AVY) - Canvas Business Model: Key Partnerships

You're looking at the external forces that enable Avery Dennison Corporation's value creation, specifically the critical alliances that fuel its materials science and digital identification segments.

Wiliot

Avery Dennison expanded its ambient IoT partnership with Wiliot in September 2025 to scale sensor manufacturing and market reach. Avery Dennison will manufacture Wiliot's latest IoT Bluetooth-enabled sensors, which feature a smaller chip footprint and simplified inlay architecture to lower costs. Wiliot's platform is already processing billions of sensing events across millions of products monthly. The integrated solution combines Wiliot's technology with Avery Dennison's Intelligent Labels portfolio and its atma.io connected product cloud. Francisco Melo, president of Solutions Group at Avery Dennison, confirmed this deepening collaboration in September 2025.

Strategic IT Suppliers: Google and Tata Consultancy Services

Tata Consultancy Services (TCS) has been a technology partner for Avery Dennison for over 15 years, focusing on digital transformation, including the Smartrac division. TCS reported Q2 2025 revenue of $7,466 million and a Total Contract Value (TCV) of US$10 billion for that quarter, demonstrating the scale of major service providers Avery Dennison relies on for sourcing and delivery excellence. Avery Dennison's estimated total ICT spending for 2024 was $477.5 million, with a major share going to technology vendors and ICT services providers/consulting firms.

Avery Dennison's technology focus areas include Cloud, IoT, and Artificial Intelligence, which necessitate strong relationships with major IT infrastructure partners.

• TCS is partnering with Smartrac and DICE to strategize new growth avenues.
• Avery Dennison's 2024 reported sales were $8.8 billion.

Raw Material Suppliers

Critical raw material suppliers provide the paper, film, and adhesive components that form the core of Avery Dennison's Materials Group, which comprised approximately 69% of total net sales in 2024. The company's 2030 sustainability goals include working with its supply chain to reduce scope 3 emissions by 30%. The structure of a pressure-sensitive label involves three components: facestock (filmic or paper materials), adhesive, and liner. Avery Dennison's Materials Group reported sales decreased 1.1% to $1.5 billion in the first quarter of 2025.

The company monitors fluctuations in the cost and availability of raw materials as a key business risk.

Component Type	Example Material/Attribute	Context/Metric
Facestock (Paper)	Prime Paper, High Gloss Elite FSC	Label Materials sales up low single digits in 1Q25.
Facestock (Film)	50µm Matte White PET TC	Avery Dennison has a 50% share of the RFID inlay industry.
Adhesive	Solvent, Emulsion Acrylic, Rubber Hotmelt	Adhesives must comply with FDA or BfR standards for food contact.
Liner	Glassine Paper (e.g., BG40Wh FSC)	Liner protects the adhesive during shipment and storage.

Emerald Technology Ventures

The partnership with Emerald Technology Ventures funds sustainable innovation, supporting Avery Dennison's goal to deliver innovations that advance the circular economy. Emerald has managed and advised assets of over €1 billion and has executed over 500 venture transactions. This alliance fuels Avery Dennison's corporate venture capital efforts, including the AD Stretch accelerator program, to gain access to startups in materials, decarbonization, and the circular economy sectors. The partnership aims to support Avery Dennison's commitment to achieving net-zero emissions by 2050.

Key Customers: Kroger Collaboration

Avery Dennison began working with The Kroger Co. in late 2024 to implement RFID-embedded labels across its baked goods offerings to maximize freshness and reduce waste. This collaboration aims to improve inventory visibility, meaning products are on shelves when customers want them. RFID technology, in general, is projected to increase inventory accuracy from an average of 65% to more than 95%. RFID labels currently generate 10% of Avery Dennison's total revenue, with the cost per tag now as low as 5 cents, down from over US$1 in 2000. The Solutions Group, which houses Intelligent Labels, saw sales up low single digits in the first quarter of 2025.

• Kroger collaboration started in the bakery department.
• Goal is to optimize associate time and reduce waste from overproduction.
• Intelligent Labels is a high-value category for Avery Dennison Corporation.

Avery Dennison Corporation (AVY) - Canvas Business Model: Key Activities

You're looking at the core engine of Avery Dennison Corporation, the things they absolutely must do well to keep the revenue flowing and the stock price moving. Honestly, it's a mix of heavy industry and high-tech data services now.

Manufacturing: Producing pressure-sensitive materials and specialty labels globally.

The foundation remains the physical production of materials. For the third quarter of 2025, the Materials Group segment reported sales of $1.5 billion. Still, that segment saw organic sales decline by 1.9%, even with modest volume growth, which was eaten up by deflation-related price reductions. The company maintains a massive global footprint, employing approximately 35,000 people across more than 50 countries. As of September 30, 2025, the trailing 12-month revenue stood at $8.77B.

Here's a quick look at the segment performance for the third quarter of 2025:

Activity Metric	Materials Group (Q3 2025)	Solutions Group (Q3 2025)
Reported Sales	$1.5 billion	$700 million
Organic Sales Change	Down 1.9%	Up 3.6%
Adjusted Operating Income	Up 3.6% to $230.1 million	Down 9.9% to $69.7 million

R&D and Innovation: Developing RFID, intelligent labels, and sustainable products.

This is where the future value is being built. Avery Dennison Corporation holds more than 1,500 patents, and they command a 50% share of the RFID inlay industry. Intelligent Labels (IL) are a key focus; in Q1 2025, IL grew mid-single digits organically. For the third quarter of 2025, the Solutions Group reported that its high-value categories, which include Intelligent Labels, were up high single digits organically, with Intelligent Labels specifically up mid-single digits. Currently, RFID labels account for 10% of Avery Dennison's total revenue. The cost for a single RFID tag is now just 5 cents. The atma.io connected product cloud is now linking over 30 billion unique items globally. Plus, in June 2025, they announced an industry-first RFID label recognized by the Association of Plastic Recyclers (APR) for compatibility with the PET recycling stream.

• RFID Penetration in Apparel Market: 40%
• Taggable Units in Apparel Market: Roughly 45 billion
• New IML (In-Mold Label) Portfolio Launched: July 2025

Strategic Acquisitions: Integrating companies like Meridian Adhesives Group (Aug 2025).

Avery Dennison Corporation made a move to deepen its specialty adhesives portfolio by agreeing to acquire the U.S.-based flooring adhesives business of Meridian Adhesives Group in August 2025. The purchase price agreed upon was $390 million. This acquired business projected revenues of approximately $110 million for 2025. The deal, expected to close in the fourth quarter of 2025, involves integrating four U.S. production sites and approximately 110 employees. Management stated this acquisition is not expected to have a material impact on the company's adjusted earnings per share for 2025.

Global Supply Chain Management: Optimizing logistics and raw material sourcing.

Managing the flow of materials is critical, especially given the scale across 50 countries. A key activity involves leveraging RFID for inventory accuracy, which helps keep high-demand goods on hand and ultimately increases margins. In Q1 2025, the company noted low single-digit inflation on total raw material purchases was estimated. Avery Dennison is focused on end-to-end track and trace capabilities to control labor costs and enable just-in-time inventory management.

Productivity Programs: Driving cost reduction and margin expansion across segments.

Productivity gains are clearly translating to the bottom line. For the third quarter of 2025, the Adjusted EBITDA margin reached 17.5%, which was up 50 basis points, driven primarily by productivity benefits. This follows a Q1 2025 where the Adjusted EBITDA margin improved to 17.2%, up 110 basis points year-over-year, also driven by productivity gains. The company returned $670 million to shareholders through buybacks and dividends over the first nine months of 2025, including repurchasing 2.5 million shares for an aggregate cost of $454 million through the third quarter.

Here are the earnings results that reflect these productivity efforts:

Metric (Non-GAAP)	Q1 2025	Q3 2025
Adjusted EPS	$2.30	$2.37
Adjusted EBITDA Margin	17.2%	17.5%

Finance: draft 13-week cash view by Friday.

Avery Dennison Corporation (AVY) - Canvas Business Model: Key Resources

You're looking at the core assets Avery Dennison Corporation (AVY) relies on to drive its business, especially as we move through late 2025. These aren't just line items; they are the foundation of their competitive edge in materials science and digital identification.

Intellectual Property

Intellectual Property forms a critical moat around Avery Dennison Corporation's specialized markets. This resource base is deep, covering both their traditional materials science expertise and their newer digital ventures.

The company maintains a substantial portfolio, cited as over 13,340 total patent documents focused on materials science and Radio Frequency Identification (RFID) technology. This massive IP library underpins their ability to innovate and defend their market position.

We see the financial scale that this IP supports. For instance, as of September 30, 2025, Avery Dennison Corporation reported trailing 12-month revenue of $8.77B. This revenue generation is directly tied to the differentiated products stemming from this research and development.

Global Manufacturing Footprint

A physical presence everywhere the customer needs service is non-negotiable in this industry. Avery Dennison Corporation supports its international sales through operations spanning over 50 countries. This scale allows them to serve a global customer base efficiently.

The sheer size of the operation is reflected in their workforce and financial scale. As of late 2025, the company employs approximately 35,000 people. This global structure is segmented, with the Materials Group historically representing about 69% of total sales in 2024, while the Solutions Group accounted for 31%.

Here's a quick look at some recent operational and financial metrics as of the third quarter of 2025:

Metric	Value (As of Q3 2025)
Net Sales (Q3 2025)	$2.2 billion
Adjusted Operating Margin (Q3 2025)	12.7%
Cash and Cash Equivalents	$536.3m
Long-term Debt and Finance Leases	$3.20bn
Net Debt to Adjusted EBITDA	2.2x

Also, capital deployment remains disciplined; through the first nine months of 2025, Avery Dennison Corporation returned $670 million to shareholders via dividends and buybacks. They bought back 2.5 million shares for a total cost of $454 million in that same period.

atma.io Platform

The atma.io Connected Product Cloud is a key digital asset, linking the physical product to its digital identity. This platform is designed to provide end-to-end transparency, which is becoming crucial with upcoming regulations like the Digital Product Passport (DPP).

The scale of adoption here is significant. As of the Fall '23 release updates, atma.io manages over 30 billion unique items for its clients. This includes servicing six of the top 20 apparel firms. The platform is built to be open, supporting various digital triggers like RFID, QR codes, and NFC, consolidating all item-level data in one place.

The platform's capabilities are expanding to meet regulatory needs, offering a 'DPP as a Service' (DPPaaS) model that includes consultancy, hardware, and software. This positions Avery Dennison Corporation to capture value from compliance-driven spending.

Sustainable ADvantage Portfolio

The Sustainable ADvantage Portfolio represents a standardized, third-party verified approach to eco-friendly materials. This resource helps customers reduce their environmental footprint while staying ahead of regulations. It's about making sustainability a performance feature.

The commercial success of this portfolio is measurable. For the Label and Graphic Materials (LGM) segment, Avery Dennison Corporation achieved a goal where 50% of LGM product sales were generated through the Sustainable ADvantage portfolio.

The portfolio's products incorporate specific sustainable attributes:

• Contains Recycled or Renewable Content: Some products utilize facestocks and liners with up to 30% recycled paper and plastics.
• Adhesive Content: Certain adhesives include biobased components sourced from renewable resources.
• Cost Neutrality: Polypropylene labels in the portfolio use 30% recycled materials and maintain cost-neutrality versus virgin-grade materials.

If onboarding for new sustainable product lines takes longer than expected, market share gains in this area could slow down.

Finance: draft 13-week cash view by Friday.

Avery Dennison Corporation (AVY) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Avery Dennison Corporation. It's not just about selling labels; it's about providing tangible, measurable advantages across their operations, especially now with the focus on digital and circular economies.

Digital Identification: Item-level visibility via RFID for inventory and loss prevention

Avery Dennison Corporation is the world's leading provider of RFID tags, a key enabler for item-level visibility. This technology directly addresses inventory accuracy and loss prevention needs for retailers and logistics partners. While the Intelligent Labels segment saw sales growth reported as up low single digits in the second quarter of 2025, the overall high-value categories, which include Intelligent Labels, were down low single digits in the third quarter ending September 27, 2025, showing the dynamic nature of the market. Still, the fundamental value proposition of traceability remains strong.

Here's a snapshot of the company's scale as of late 2025:

Metric	Value (as of late 2025)
TTM Revenue (ending Sep 30, 2025)	$8.77B
Q3 2025 Net Sales	$2.2 billion
Employees Globally	Approximately 35,000

Sustainability Solutions: Products like APR-recognized recyclable RFID labels for PET recycling

A major value driver is enabling the circular economy. Avery Dennison Corporation achieved an industry first in mid-2025 by launching an RFID label recognized by the Association of Plastic Recyclers (APR) for compatibility with the PET recycling stream. This innovation uses the proprietary CleanFlake adhesive technology, which allows the label to separate cleanly during mechanical recycling, directly tackling contamination issues. This is critical because 96% of the top 50 brands in the consumer packaged goods sector have set recyclability and waste management targets. The company planned to make this APR-recognized technology widely available later in 2025.

The commitment to sustainability is reflected in their product development focus:

• Introduced the first RFID label with APR Design for Recyclability (DfR) recognition.
• Utilizes proprietary CleanFlake adhesive technology for clean separation from PET.
• Aims to support brands in meeting their recyclability objectives.

Global Scale and Consistency: Reliable supply of materials across diverse geographies

Avery Dennison Corporation supports its value proposition with a massive global footprint. You can count on them because they operate in over 50 countries with approximately 35,000 employees. Furthermore, the company draws a significant portion of its revenue from outside the United States, meaning international operations account for the majority of total sales, ensuring supply consistency across diverse geographies.

High-Value Categories: Specialty durable labels and graphics with high-growth potential

The focus on high-value segments is a core strategic element. While Q2 2025 saw high-value categories (excluding tariff impacts) up high single digits, Q3 2025 results showed these categories, including Intelligent Labels, were down low single digits. The broader market context supports the long-term value here: the specialty labels packaging market is estimated at $15 billion in 2025, projected to grow at a 6% CAGR through 2033. The pressure-sensitive labels segment alone commanded 33% of the total label market size in 2024.

Brand Protection: Embelex solutions for garment and product embellishment and security

For brand protection and embellishment, the Embelex solutions are key. In the second quarter of 2025, the Embelex segment specifically was reported as down high single digits, contrasting with the overall high-value category growth seen in that same quarter. This segment, along with others like Graphics and Reflectives, which were down low single digits in Q3 2025, represents specialized offerings where brand integrity and unique product finishing are paramount.

Here's how some of the key segments performed in Q2 2025:

Segment/Category	Q2 2025 Performance (vs prior year)
High-Value Categories (excl. tariffs)	Up high single digits
Intelligent Labels	Up low single digits
Embelex	Down high single digits

Finance: draft 13-week cash view by Friday.

Avery Dennison Corporation (AVY) - Canvas Business Model: Customer Relationships

You're looking at how Avery Dennison Corporation builds and maintains its connections with its business clients, which is critical since its primary focus is business-to-business (B2B) across many specialized sectors. This relationship model is built on deep integration, especially with large global brands.

Dedicated Sales Teams are the frontline for these B2B relationships, providing direct, consultative service. Avery Dennison Corporation serves industries worldwide, including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive. This global footprint requires a structure supporting sales across more than 50 countries, where the company employed approximately 35,000 employees as of Q2 2025.

Strategic Collaboration is heavily centered on new technology rollouts, particularly in the digital identification space. This joint development helps key customers adopt solutions like RFID. The Solutions Group, which houses these digital offerings, saw its sales grow by 2% in the third quarter of 2025. The Intelligent Labels segment, a core part of this collaboration, grew sales by 9% for the full year 2024, and the company projects growth in this segment to be between 10% and 15% for 2025.

Here's a quick look at the scale and growth trajectory of the Solutions Group's high-value digital offerings:

Metric	Value/Range	Context/Date
Intelligent Labels Sales Growth (2024)	9%	Full Year 2024
Intelligent Labels Sales Growth Projection (2025)	10% to 15%	2025 Forecast
Apparel Intelligent Labels Growth Projection (2025)	Low double-digit	2025 Forecast
Solutions Group Sales Growth (Q3 2025)	2%	Third Quarter 2025
Total Company Net Sales (2024)	$8.8 billion	Full Year 2024

Digital Platform Access is provided through the atma.io cloud, which connects the physical and digital worlds. This platform is designed for self-service and data analytics, helping customers manage item-level data. As of late 2023/early 2024, atma.io was managing over 30 billion physical items on the platform. Six of the top 20 apparel brands globally by revenue are using the atma.io platform. This platform is a key component of the company's holistic offering, such as the 'DPP as a Service' (DPPaaS) for Digital Product Passport readiness.

Technical Support involves providing expertise for the application and integration of complex materials and digital systems. This support is essential for customers navigating new regulatory landscapes, like the forthcoming Digital Product Passport (DPP) legislation set for key markets starting in 2027. The company's ability to offer this support is grounded in its scale and R&D focus, which supports its 35,000 employees globally.

• Six of the top 20 global apparel brands use the atma.io platform.
• atma.io manages over 30 billion physical items on its platform.
• Intelligent Labels segment is projected to grow 10% to 15% in 2025.
• The company operates in over 50 countries.

Avery Dennison Corporation (AVY) - Canvas Business Model: Channels

You're looking at how Avery Dennison Corporation moves its materials science and digital identification solutions to the market. It's a massive global operation, with reported net sales hitting $2.1 billion in Q1 2025 and $2.2 billion in Q3 2025. That scale requires a multi-pronged approach to reach everyone from the biggest global brands to the smallest local converters.

Here's a quick look at the sheer size of the business these channels serve, based on the latest figures available:

Metric	Value (As of Late 2025 Data)
Trailing Twelve Month Revenue	$8.77B
Fortune 500 Revenue Rank (2025)	$8,756 Million
Global Employees	Approximately 35,000
Operating Locations Globally	Approximately 200
International Sales Share (2024)	Approximately 70%

The company's channel strategy is built on these four pillars, each serving a distinct part of its customer base across more than 50 countries.

Direct Sales Force: Primary channel for large B2B customers and converters

The direct sales force is definitely where the major, complex B2B relationships live. Think about the largest global consumer goods companies or major label converters needing high-volume, customized material science solutions. This team handles the deep, strategic accounts that drive significant portions of the Materials Group's revenue, which reported sales of $1.5 billion in Q3 2025.

Global Distributor Network: Reaching smaller converters and local markets worldwide

To cover the rest of the map, Avery Dennison Corporation relies on its global distributor network. This channel is essential for reaching smaller, regional converters and customers who don't buy directly in massive volumes. Given that international operations accounted for about 70% of net sales in 2024, this network is crucial for local market penetration outside of the direct sales focus areas. Historically, the company has managed its logistics by redistributing finishing volume across multiple facilities to ensure service expectations are met, even after past reorganizations.

Manufacturing Sites: Direct fulfillment from a global network of coating and converting plants

Fulfillment is tightly integrated with the ~200 operating locations globally. These coating and converting plants serve as the physical end-points for production, ensuring that materials are converted and shipped efficiently. This vertical integration, especially in adhesives, allows for direct fulfillment that supports the scale needed to achieve quarterly sales figures like the $2.2 billion reported in Q2 2025.

Digital Platform: atma.io serves as a direct channel for data and digital services

The atma.io connected product cloud is a newer, but increasingly vital, channel for delivering digital identification solutions. This platform acts as a direct conduit for data services, bypassing traditional material sales channels for its software offerings. As of late 2023, atma.io was already managing over 30 billion items for major clients, including six of the top 20 apparel firms. The platform adds about 300 new items every second, showing the rapid adoption rate for item-level data transparency.

The digital services complement the physical product sales, as seen in the Solutions Group performance:

• Intelligent Labels, a key part of the digital offering, saw growth in high-value categories in Q2 2025.
• The platform helps prepare customers for the 2027 Digital Product Passport (DPP) legislation.
• It provides end-to-end visibility across the supply chain for billions of unique items.

Finance: review Q4 2025 revenue projections against Q3 actuals by next Tuesday.

Avery Dennison Corporation (AVY) - Canvas Business Model: Customer Segments

You're looking at how Avery Dennison Corporation (AVY) divides its focus across its buyers, which is key to understanding where their $2.2 billion in reported net sales for the third quarter of 2025 came from. The company operates in over 50 countries with approximately 35,000 employees as of late 2025. The customer base is broad, but we can group them based on the Solutions and Materials Groups' reporting structure.

The Solutions Group, which houses many of the digital identification and branding elements, saw reported sales increase by 2.0% to $700 million in Q3 2025, with organic sales up 3.6%. This group directly targets brands and logistics providers.

The Materials Group, which focuses on the core pressure-sensitive materials, reported sales of $1.5 billion in Q3 2025, though organic sales were down 1.9% due to deflation-related price reductions. This group is heavily reliant on converters and industrial users.

Here's a look at how the key customer-facing categories performed in the Solutions Group during Q3 2025, which gives you a feel for the growth engines:

• Vestcom and Embelex platforms: Both were up more than 10%.
• Intelligent Labels (RFID): Grew at a mid-single digit rate.
• Overall Apparel categories: Increased at a low single digit rate.

The global RFID market size itself is projected to be USD 16.57 billion in 2025, and Avery Dennison Corporation is the largest supplier of passive radio frequency identifiers globally, positioning them well to capture this growth.

You can see the financial split of the two main reporting segments in the third quarter of 2025:

Customer-Aligned Grouping	Q3 2025 Reported Sales	Q3 2025 Organic Sales Change
Label Converters & Industrial Base (Materials Group)	$1.5 billion	-1.9%
Brands, Retail, Food & Logistics (Solutions Group)	$700 million	3.6%

The company notes that its broad exposure across diverse end markets, including Industrial/Durable and Apparel/Staples/Non-, represented 60%+ of estimated 2024 sales. This shows the foundational importance of the industrial and apparel segments.

Regarding the specific segments you mentioned:

• Label Converters: These companies are the primary recipients of the Materials Group's output. Within that group, Performance Tapes and Medical materials were down a mid-single digit percentage in Q3 2025.
• Global Apparel and Retail Brands: This segment benefits directly from the Solutions Group's Apparel categories (up low single digits) and the high-growth Intelligent Labels business (up mid-single digits).
• Industrial and Healthcare: These customers are served by the Materials Group, where Graphics and Reflectives were down a low single digit percentage in Q3 2025. The Healthcare segment is also a listed industry for RFID adoption.
• Food and Logistics: This is a key driver for the Intelligent Labels business, which saw mid-single digit growth. Furthermore, the Solutions Group saw its Vestcom and Embelex platforms, which serve retail/in-store productivity and related logistics, grow more than 10%.

Finance: draft 13-week cash view by Friday.

Avery Dennison Corporation (AVY) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Avery Dennison Corporation ledger for late 2025. Honestly, managing the cost structure here is all about balancing high-volume material costs against strategic, high-margin digital investments.

Raw Material Costs: Largest variable cost, including polymers, paper, and chemicals.

The cost of raw materials remains your largest variable expense, a constant pressure point. For instance, in Q2 2025, the Adjusted EBITDA margin for the Materials Group was 17.8%, and for the Solutions Group, it was 17.1%. Management noted that these margins were achieved despite raw material input costs putting pressure on results in both Q1 and Q2 2025. Here's a quick look at the revenue base these costs are applied against for the second quarter of 2025:

Segment	Q2 2025 Net Sales (Reported)	Q2 2025 Adjusted Operating Margin
Materials Group	$1.55 billion	15.6%
Solutions Group	$670 million	10.0%
Total Company	$2.22 billion	N/A

Manufacturing and Operations: Significant fixed costs from global production facilities.

Your global footprint of production facilities represents a significant fixed cost base. These costs are managed through productivity initiatives, which helped offset some of the raw material headwinds. In Q1 2025, the company realized approximately $14 million in pre-tax savings from restructuring, net of transition costs, which often relates to optimizing these operations. Still, achieving sustained productivity improvement is listed as a key factor affecting financial performance.

Labor and Personnel: Costs for a global workforce, including wage inflation pressures.

Managing a global workforce means dealing with localized wage inflation pressures, which is a known risk factor for Avery Dennison Corporation. While specific labor cost figures aren't broken out here, this category is a persistent operating expense that requires ongoing management alongside productivity goals.

Restructuring Charges: H1 2025 incurred approximately $13 million in pre-tax charges.

You definitely saw specific charges related to cost reduction actions in the first half of 2025. Avery Dennison incurred approximately $13 million in pre-tax restructuring charges during the first half of the year. To break that down further, the first quarter of 2025 alone accounted for approximately $5 million in pre-tax restructuring charges. Management is actively managing these costs, as they also realized approximately $30 million in pre-tax savings from restructuring, net of transition costs, in the first half of 2025.

R&D and Growth Investments: Ongoing spending on Intelligent Labels and digital solutions.

This is where capital is deployed for future revenue, particularly in high-value areas. Growth investments were cited as partially offsetting the Adjusted EBITDA margin improvement in Q1 2025. The focus is clearly on digital identification solutions, as the atma.io platform is now connecting over 30 billion unique items globally.

Key investment focus areas and related metrics include:

• Intelligent Labels sales growing in the low single digits in Q2 2025.
• RFID technology generating 10% of total revenue (as of prior reporting context).
• The company maintains over 1,500 patents protecting its antenna and tag designs.
• The Solutions Group reported Q2 2025 sales of $670 million.

Finance: draft 13-week cash view by Friday.

Avery Dennison Corporation (AVY) - Canvas Business Model: Revenue Streams

You're looking at how Avery Dennison Corporation actually brings in the money, which is key for any solid financial picture. The revenue streams are clearly segmented, reflecting their dual focus on materials science and digital identification.

The core of the business still comes from the Materials Group, which is where the pressure-sensitive label and graphic materials live. For the second quarter of 2025, this segment brought in $1.6 billion in sales. That's the bread and butter, honestly.

The Solutions Group, which handles things like RFID and retail branding, is the growth engine, though it saw a slight dip in Q2 2025. For that same quarter, the Solutions Group reported sales of $670 million. You see the difference in scale right there.

To give you a clearer breakdown of those recent segment results, here's a quick look at the Q2 2025 snapshot:

Revenue Stream Segment	Q2 2025 Reported Sales Amount	Q2 2025 Sales Change (Year-over-Year)
Materials Group Sales	$1.6 billion	Increased 0.2%
Solutions Group Sales	$670 million	Decreased 2.6%

The company is definitely pushing hard on its high-value categories, which is where the future margins are supposed to be. They are trying to make sure these areas outpace the base product sales. For instance, in the Solutions Group, Vestcom saw sales rise by approximately 10% in Q2 2025, and in the Materials Group, Graphics and Reflectives sales increased by a high single digit percentage in that same period. These are the areas management is pointing to for outsized growth.

You also have to account for the service side of the business, which is less about selling a physical roll of material and more about recurring revenue. This includes fees from the atma.io connected product cloud. While specific revenue figures for this service aren't always broken out separately in the headline numbers, it represents the shift toward subscription or usage-based income tied to their digital ID solutions.

When you look at the bigger picture, the total trailing 12-month revenue, as of September 30, 2025, was approximately $8.77 billion. That number gives you the full scope of Avery Dennison Corporation's financial footprint leading into the end of the year.

Here are the key components driving that total revenue:

• Materials Group Sales: The foundation, driven by pressure-sensitive materials.
• Solutions Group Sales: Includes RFID, retail branding, and Vestcom.
• High-Value Categories: Intelligent Labels and specialty durable products showing accelerated growth.
• Service Revenue: Fees from the atma.io connected product cloud platform.

Finance: draft 13-week cash view by Friday.