Profitability 360 · Where the margin lives
Op margin 13.2% · MG 14.8% vs SG 9.5% · target 14.5% blended by FY27
Op margin · FY25
13.2%
▲ 120 bps vs FY24
Materials Group
14.8%
▲ 80 bps · core engine
Solutions Group
9.5%
▲ 180 bps · expansion driver
FY27 blended target
14.5%
+130 bps to go
Margin hierarchy · segment → product line
Materials Group product lines are uniformly accretive · Solutions Group margin spread is wider — atma.io & DPPaaS are the levers
Avery Dennison
13.2% op margin · $1.17B operating profit
Materials Group
14.8% · $980M op profit
75% of revenue · core margin engine
Label & Graphic Materials
14.5% · $783M
Core defend · HVC mix lift +60 bps
Performance Tapes
15.2% · $137M
Specialty premium
Vancive Medical
18.0% · $54M
Accretive · regulated demand
Solutions Group
9.5% · $213M op profit
25% of revenue · platform engine · widest spread
Intelligent Labels (RFID)
11.0% · $154M
Walmart ramp scaling margin
atma.io platform
28% · $34M
SaaS economics · highest %
Apparel branding
6.0% · $42M
Cyclical · price-sensitive
DPPaaS · Burton lighthouse
35% · $7M
Highest-margin emerging line
FY25 estimates · operating margin × revenue per product line. SaaS lines (atma.io, DPPaaS) earn platform margin; apparel branding earns commodity margin.
Margin bridge · FY25 → FY27
HVC mix-shift + pricing AI + plant AI + atma.io SaaS margin carry 80% of the bridge — the other levers de-risk against headwinds
$1.42B
FY25 EBITDA
+0.09
HVC mix-shift
+0.1
Pricing AI
+0.07
Plant AI · OEE
+0.06
Restructuring savings
+0.05
atma.io SaaS margin
+0.03
Working capital release
-0.05
FX / input costs
-0.07
Growth investment
$1.7B
FY27 EBITDA target
Illustrative EBITDA bridge — drivers in absolute $B. Open EBITDA 360 for the full 12-lever inventory.
Top margin levers · ranked by absolute EBITDA
Pricing AI has the highest IRR · Plant AI and HVC mix-shift each contribute $100M+ · 5 levers are quick wins under 90 days
| ID | Lever | Category | EBITDA | bps | Time | Confidence | Owner |
|---|---|---|---|---|---|---|---|
| L-1 | Pricing AI · Materials Group | Pricing | $100M | 110 | 6 mo | HIGH | CFO + MG GM |
| L-2 | HVC mix-shift in label materials | Mix | $90M | 100 | 12 mo | HIGH | MG GM |
| L-3 | Plant AI · OEE 74% → 82% | Productivity | $70M | 80 | 18 mo | MEDIUM | COO |
| L-4 | Restructuring · $60M savings | Cost | $60M | 70 | 6–9 mo | HIGH | CFO |
| L-5 | atma.io SaaS conversion (75% GM) | Mix | $50M | 60 | 12 mo | HIGH | Solutions GM |
| L-6 | Working capital release | Working Cap | $30M | 35 | 9 mo | MEDIUM | CFO + COO |
| L-7 | CV-QC defect-rate halving | Quality | $25M | 30 | 18 mo | MEDIUM | MFG |
| L-8 | Energy / unit · 92 → 85 | Energy | $18M | 20 | 24 mo | MEDIUM | CSO + COO |
Top 8 by absolute EBITDA contribution. See all 12 levers →
Customer cohort profitability
Lighthouse + Expanding cohorts carry premium margin; commodity apparel customers are the price-takers
Bubble x = est. revenue · y = est. gross margin · color = trajectory. Click into Customer 360 for detail.
Margin by region · where the operating profit is generated
North America & Europe carry the bulk of operating profit; APAC is the growth-margin upside as Intelligent Labels scales
Bubble size = regional operating profit ($M) · color = margin level (green ≥ 14%, amber 10–14%, red < 10%).
Margin & HVC mix trend · 8 quarters
Both lines have stair-stepped up since Q1'24 — the operating engine is delivering ahead of the platform monetization curve
Source: AVY quarterly earnings, Q1 2024 – Q4 2025.
Ask about profitability
Live AI
Which 3 levers should the board prioritize?
Where is the next 100 bps coming from?
Which product line should we exit if margin matters?