Avery Dennison (AVY) risk factors, FY2025 10-K

Avery Dennison's FY2025 10-K, filed Feb 25, 2026, lists 35 risk factors in 9 groups. Against the prior year's 35: 1 new, 1 dropped, 18 substantially reworded.

Open AVY in Gloom →
Avery Dennison's chart, financials and news, free in your browser.Open AVY in Gloom →
Risk factors listed
359 groups
New this year
1vs 35 last year
Dropped
1since the prior 10-K
Substantially reworded
18of those kept
Section length
10k wordsItem 1A

What the changes say

  • Avery Dennison updated its greenhouse gas reduction goals, variable-rate borrowings, capital expenditures, and restructuring activities for 2025.

What changed since the prior 10-K

New

  • NewRisks Related to Our Business

    their climate-related risks, we have preliminarily aligned our reporting with Financial Stability Board’s Task Force on Climate-related Financial Disclosures requirements

    We face reputation and market share risks if we fail to meet stakeholder expectations for reducing greenhouse gas emissions.

Dropped

  • DroppedRisks Related to Our Business

    confidence and market share if we are unable to continue reducing our GHG emissions at levels satisfactory to our stakeholders

Reworded

  • 64% rewrittenRisk Related to Our International Operations

    The demand for our products is impacted by the effects of, and changes in, worldwide economic, geopolitical, social and labor conditions, which have had in the past and could in the future have a material adverse effect on our business

    Updated international net sales percentage from approximately 70% in 2024 to 69% in 2025 originating outside the U.S.

    Was: The demand for our products is impacted by the effects of, and changes in, worldwide economic, social, geopolitical and market conditions, which have had in the past and could in the future have a material adverse effect on our business

  • 62% rewrittenRisks Related to Income Taxes

    Legislation implementing changes in taxation of business activities, adoption of other corporate tax policies, or other changes in tax legislation impact our business

    Removed commentary regarding the U.S. Congress and Presidential administration and the 2017 Tax Cuts and Jobs Act.

  • 53% rewrittenRisks Related to Our Indebtedness

    An increase in interest rates adversely affects our business

    Updated average variable-rate borrowings to $739 million and benchmark interest rate down to between 3.50% and 3.75% for 2025.

  • 49% rewrittenRisks Related to Our Business

    Our infrastructure needs impact our business and expenditures

    Updated capital expenditures to $200 million in 2025 and added the opening of an RFID inlay and label production site in India.

  • 47% rewrittenRisks Related to Our Business

    Changes in our business strategies and the restructuring of our operations affect our costs and the profitability of our businesses. In addition, our profitability may be materially adversely affected if we generate less productivity improvement from our restructuring and other cost reduction actions than anticipated

    Updated restructuring expenditures to $47 million in 2025 involving both Solutions and Materials groups.

  • 46% rewrittenRisks Related to Our Business

    As a manufacturer, our sales and profitability depend upon the availability and cost of raw materials and energy, which may be subject to significant price fluctuations, and our ability to control or offset increases in raw material and labor costs. Raw material and freight cost increases have impacted our business

    Added that the company recently implemented deflation-related price reductions due to lower raw material costs.

  • 42% rewrittenRisks Related to Other Financial Matters

    An impairment in the carrying value of goodwill could negatively impact our results of operations and net worth

    Updated goodwill carrying value to $2.27 billion as of December 31, 2025, and added details on qualitative impairment assessments.

  • 34% rewrittenRisk Related to Ownership of Our Stock

    Our stock price is subject to significant variability

    Updated stock price description to reflect a decline in late 2024 and relative stability during 2025.

  • 33% rewrittenRisk Related to Our International Operations

    Our strategy includes continuing to grow in emerging markets, which exposes us to less stable geopolitical conditions, civil unrest, economic volatility, and other risks applicable to operating in these regions

    Was: Our strategy includes continuing to grow in emerging markets, which creates greater exposure to unstable geopolitical conditions, civil unrest, economic volatility, and other risks applicable to operating in these regions

  • 32% rewrittenRisks Related to Our Business

    A significant consolidation of our customer base could negatively impact our business

  • 30% rewrittenRisk Related to Our International Operations

    Our operations and activities outside of the U.S. subject us to risks different from and potentially greater than those associated with our domestic operations

  • 29% rewrittenRisks Related to Our Business

    Difficulty in the collection of receivables as a result of economic conditions or other market factors could have a material adverse effect on our business

  • 26% rewrittenRisk Related to Our International Operations

    Foreign currency exchange rates, and fluctuations in those rates, affect our business

  • 25% rewrittenRisks Related to Other Financial Matters

    Our pension assets and liabilities are significant and subject to market, interest and credit risk that may reduce their asset values or increase their liability values, either of which could increase our net pension liability

  • 24% rewrittenRisks Related to Our Business

    Because some of our products are sold by third parties, our business depends in part on the financial condition of these parties and their customers

  • 24% rewrittenRisks Related to Human Capital

    We have various non-U.S. collective labor arrangements, which make us subject to potential work stoppages, as well as union and works council campaigns and other labor disputes, any of which could adversely impact our business

  • 23% rewrittenRisk Related to Ownership of Our Stock

    We cannot guarantee that we will continue to repurchase shares of our common stock or pay dividends on our common stock or that repurchases will enhance long-term stockholder value. Changes in our levels of stock repurchases or dividends could affect our stock price and increase its variability

  • 22% rewrittenRisks Related to Our Indebtedness

    If our indebtedness increases significantly or our credit ratings are downgraded, we may have difficulty obtaining short- and long-term financing on acceptable terms and conditions

    Was: If our indebtedness increases significantly or our credit ratings are downgraded, we may have difficulty obtaining acceptable short- and long-term financing

All 35 risk factors

Headings as the filing states them, in filing order.

Risk Related to Our International Operations

  1. 01The demand for our products is impacted by the effects of, and changes in, worldwide economic, geopolitical, social and labor conditions, which have had in the past and could in the future have a material adverse effect on our business64% rewritten
  2. 02Foreign currency exchange rates, and fluctuations in those rates, affect our business26% rewritten
  3. 03Our operations and activities outside of the U.S. subject us to risks different from and potentially greater than those associated with our domestic operations30% rewritten
  4. 04Our strategy includes continuing to grow in emerging markets, which exposes us to less stable geopolitical conditions, civil unrest, economic volatility, and other risks applicable to operating in these regions33% rewritten

Risks Related to Our Business

  1. 05As a manufacturer, our sales and profitability depend upon the availability and cost of raw materials and energy, which may be subject to significant price fluctuations, and our ability to control or offset increases in raw material and labor costs. Raw material and freight cost increases have impacted our business46% rewritten
  2. 06their climate-related risks, we have preliminarily aligned our reporting with Financial Stability Board’s Task Force on Climate-related Financial Disclosures requirementsNew
  3. 07We have recently acquired companies and are likely to acquire other companies. Acquisitions come with significant risks and uncertainties, including those related to integration, technology and employees
  4. 08A significant consolidation of our customer base could negatively impact our business32% rewritten
  5. 09Because some of our products are sold by third parties, our business depends in part on the financial condition of these parties and their customers24% rewritten
  6. 10Our reputation, sales, and earnings could be materially adversely affected if the quality of our products and services does not meet customer expectations. In addition, product liability claims or regulatory actions could materially adversely affect our business and reputation
  7. 11Changes in our business strategies and the restructuring of our operations affect our costs and the profitability of our businesses. In addition, our profitability may be materially adversely affected if we generate less productivity improvement from our restructuring and other cost reduction actions than anticipated47% rewritten
  8. 12Our ability to develop and successfully market new products and applications impacts our competitive position
  9. 13Our infrastructure needs impact our business and expenditures49% rewritten
  10. 14Difficulty in the collection of receivables as a result of economic conditions or other market factors could have a material adverse effect on our business29% rewritten
  11. 15There is a rapidly evolving awareness and focus from certain stakeholders, including our investors, customers and employees, with respect to our company’s sustainability and governance practices, which could affect our business

Risks Related to Information Technology

  1. 16Significant disruption to the information technology infrastructure that stores our information and runs our operations could materially adversely affect our business
  2. 17Cybersecurity or other security breaches could compromise our information and expose us to liability, which could have a material adverse effect on our business and reputation

Risks Related to Income Taxes

  1. 18Changes in our tax rates affect our business
  2. 19Legislation implementing changes in taxation of business activities, adoption of other corporate tax policies, or other changes in tax legislation impact our business62% rewritten
  3. 20The amount of income taxes we pay is subject to ongoing compliance requirements and audits by federal, state and foreign tax authorities
  4. 21We have deferred tax assets that we may not be able to realize under certain circumstances

Risks Related to Human Capital

  1. 22We have various non-U.S. collective labor arrangements, which make us subject to potential work stoppages, as well as union and works council campaigns and other labor disputes, any of which could adversely impact our business24% rewritten

Risks Related to Our Indebtedness

  1. 23If our indebtedness increases significantly or our credit ratings are downgraded, we may have difficulty obtaining short- and long-term financing on acceptable terms and conditions22% rewritten
  2. 24An increase in interest rates adversely affects our business53% rewritten
  3. 25Our current and future debt covenants may limit our flexibility

Risk Related to Ownership of Our Stock

  1. 26Our stock price is subject to significant variability34% rewritten
  2. 27We cannot guarantee that we will continue to repurchase shares of our common stock or pay dividends on our common stock or that repurchases will enhance long-term stockholder value. Changes in our levels of stock repurchases or dividends could affect our stock price and increase its variability23% rewritten

Risks Related to Legal and Regulatory Matters

  1. 28Infringing intellectual property rights of third parties or inadequately acquiring or protecting our intellectual property could harm our ability to compete or grow
  2. 29Unfavorable developments in legal proceedings, investigations and other legal and regulatory matters, could impact us in a materially adverse manner
  3. 30We are required to comply with anti-corruption and other compliance laws and regulations of the U.S. government and various international jurisdictions, and our failure to comply with these laws and regulations could have a material adverse effect on our business
  4. 31We are required to comply with environmental, health, and safety laws at our operations around the world. The costs of complying with these laws is significant and increasing
  5. 32We are subject to export and import control laws and regulations in the jurisdictions in which we do business that could subject us to liability or impair our ability to compete in these markets

Risks Related to Other Financial Matters

  1. 33Our pension assets and liabilities are significant and subject to market, interest and credit risk that may reduce their asset values or increase their liability values, either of which could increase our net pension liability25% rewritten
  2. 34The actuarial assumptions used in the measurement of our pension assets and liabilities affect our earnings and cash flows. Changes in accounting standards and government regulations could also affect our pension and postretirement plan expense and funding requirements
  3. 35An impairment in the carrying value of goodwill could negatively impact our results of operations and net worth42% rewritten

Other Avery Dennison 10-Ks

  • FY2024 10-K risk factors
    35 risks

    International operations generate seventy percent of sales, exposing the company to currency fluctuations, geopolitical instability, and regulatory changes. Raw material volatility and labor costs directly impact manufacturing profitability and capital allocation strategies.

    Filed Feb 26, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.