Financials 360
$650M FCF · 100% target conversion · 2.1× net leverage · $1.8B 5-yr buybacks
Net debt
$2.5B
2.1× leverage · BBB+
ROIC
17.2%
top-quartile peers
Dividend yield
1.6%
consistent grower
5y buybacks
$1.8B
capital return discipline
Exhibit · 5-year P&L
Op margin expanded ~170 bps from FY23 trough to FY25; restructuring + HVC mix are the recurring drivers
| Year | Revenue | Op Income | Op Margin | Net Income | EPS | FCF | CapEx |
|---|---|---|---|---|---|---|---|
| 2021 | $8.41B | $0.95B | 11.3% | $0.74B | $8.87 | $0.41B | $0.27B |
| 2022 | $9.04B | $1.04B | 11.5% | $0.76B | $9.42 | $0.5B | $0.32B |
| 2023 | $8.36B | $0.92B | 11.0% | $0.5B | $6.21 | $0.55B | $0.3B |
| 2024 | $8.76B | $1.05B | 12.0% | $0.71B | $8.79 | $0.62B | $0.27B |
| 2025 | $8.86B | $1.17B | 13.2% | $0.79B | $9.85 | $0.65B | $0.28B |
Source: AVY 10-K filings 2021–2025.
Exhibit · Segment margin trend
Both segments are expanding margin — Solutions Group is closing the gap with Materials Group as Intelligent Labels scales
Reported segment operating margins, 2023–2025.
Exhibit · Revenue bridge to FY28
The $1.7B revenue uplift to FY28 is two-thirds platform-driven (RFID + Walmart + atma.io + DPP)
$8.86B
FY25 base
+0.45
HVC mix-shift
+0.8
Intelligent Labels
+0.35
Walmart ramp
+0.18
atma.io recurring
+0.1
DPP services
-0.1
FX / commodity
-0.05
Core MG mature
$10.59B
FY28 illustrative
Illustrative bridge; not company guidance.
Exhibit · M&A track record
Vestcom (2022) is the model — pay for adjacent capability, then weave into the platform
| Year | Target | Value | Thesis |
|---|---|---|---|
| 2022 | Vestcom International | $1.45B | Shelf-edge labels + retail data; deepened retail moat. |
| 2022 | Catchpoint | $0.04B | atma.io capability extension. |
| 2021 | JDC Solutions | $0.03B | Specialty pressure-sensitive. |
| 2020 | Smartrac transponder | $0.25B | RFID inlay leadership. |
Source: AVY press releases & 10-Ks.