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Sales Surge 11%, Profit Soars 19% in Q2
31 Jul
Summary
- Reported sales increased 11% year-over-year, with 8% organic growth.
- Adjusted EPS grew 19% to $2.89, driven by volume and productivity.
- The company generated $365 million in adjusted free cash flow.
The company announced strong second-quarter financial performance, highlighted by an 11% year-over-year increase in reported sales and an 8% organic sales growth. This growth was significantly fueled by the Materials Group, which experienced a 10% organic sales increase, and the Solutions Group, which saw 3% organic sales growth. Adjusted earnings per share surged 19% to $2.89, attributed to higher volume and improved productivity.
Profitability metrics also showed substantial improvement. Adjusted EBITDA margins expanded across both business segments. The Materials Group's adjusted EBITDA grew 17%, with margins up 20 basis points. The Solutions Group's adjusted EBITDA margin expanded by 150 basis points to 18.6%. The Intelligent Labels platform also performed well, particularly in apparel and general retail.
Financially, the company generated $365 million in adjusted free cash flow for the quarter. This strong cash generation enabled substantial returns to shareholders, with $138 million deployed for share repurchases and $76 million distributed as dividends. Looking ahead, the company provided positive guidance for Full-Year 2026, projecting adjusted EPS between $10 and $10.30, and organic sales growth between 3% and 4%.
