AVY · 10-Q · 2026Q2 · Full report
Operating Cash Flow Trends
Avery Dennison Corp · 2026-08-04 · Importance 69 · Surprise 64 · From source text
Six-month operating cash flow increased to $544.7 million from $192.5 million, a $352.2 million improvement. The increase primarily reflected changes in operational working capital and lower incentive-compensation payments, partially offset by higher tax payments net of refunds. Adjusted free cash flow increased to $469.8 million from $135.8 million. Operational working capital declined to 13.2% of annualized second-quarter sales from 15.2%, while days sales outstanding improved to 66 days from 67 days and inventory turnover increased to 6.7 from 6.2.
Key facts
- Net cash provided by operating activities for the six months ended June 30, 2026: $544.7 million; for the six months ended June 28, 2025: $192.5 million. source
- Adjusted free cash flow for the six months ended June 30, 2026: $469.8 million; for the six months ended June 28, 2025: $135.8 million. source
- Operational working capital as a percentage of annualized current-quarter net sales decreased to 13.2% in the second quarter of 2026 from 15.2% in the second quarter of 2025. source
- Operational working capital as of June 30, 2026: $1,300.5 million; as of June 28, 2025: $1,345.9 million. source
- Working capital at June 30, 2026: $395.5 million; at June 28, 2025: $121.7 million. source
- Proceeds from insurance and sales (purchases) of investments, net for the six months ended June 30, 2026: $5.8 million; for the six months ended June 28, 2025: $8.8 million. source
- During the first six months of 2026, net cash provided by operating activities increased compared to the same period last year primarily due to changes in operational working capital and lower incentive compensation payments, partially offset by higher tax payments, net of refunds. source
- During the first six months of 2026, adjusted free cash flow increased compared to the same period last year primarily due to an increase in net cash provided by operating activities. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | +3.8% | Net cash provided by operating activities for the six months ended June 30, 2026: $544.7 million; for the six months ended June 28, 2025:… |
| cash | positive | realized | +3.6% | Adjusted free cash flow for the six months ended June 30, 2026: $469.8 million; for the six months ended June 28, 2025: $135.8 million. |
| assets | negative | realized | -0.5% | Operational working capital as of June 30, 2026: $1,300.5 million; as of June 28, 2025: $1,345.9 million. |