ACCO Brands Corporation
ACCO
$3.77 -0.53%
Exchange: NYSE | Sector: Industrials | Industry: Business Equipment Supplies
Q2 2025
Published: Aug 1, 2025

Earnings Highlights

  • Revenue of $394.80M down 9.9% year-over-year
  • EPS of $0.31 increased by 124.8% from previous year
  • Gross margin of 32.9%
  • Net income of 29.20M
  • ""To date, we have announced 2 strategic price increases while maintaining our competitive position, secured improved terms with third-party manufacturing partners and accelerated production shifts to cost-competitive countries for U.S.-bound products."" - Thomas W. Tedford, President and Chief Executive Officer, ACCO Brands
ACCO
Company ACCO

Executive Summary

ACCO Brands reported Q2 2025 revenue of $394.8 million, down 9.9% year over year, with gross margin of 32.9% and an operating margin of 8.36%. Net income was $29.2 million, delivering $0.32 per share on a reported basis and $0.31 per share on a diluted basis. Management attributed the results to tariff-related disruption in the Americas and softer demand across multiple channels, offset by ongoing cost-reduction actions and price increases. The company has progressed its multi-year cost-reduction program, realizing $8 million in savings in the quarter and over $40 million of annualized savings to date. This, together with tariff mitigation efforts and strategic pricing, is positioned to support margin stabilization and modest sequential improvement into Q3 and beyond. Looking into the second half, ACCO expects pricing actions to partially offset tariff costs and currency tailwinds to contribute positively in the near term. Management reaffirmed a longer-term growth thesis centered on expanding higher-growth product categories, accelerating new product introductions (notably in computer accessories and gaming peripherals), and selective acquisitions (e.g., Buro Seating) to enhance footprint in Australia and New Zealand. The company continues to target a gross margin of 33%–34% and expects adjusted free cash flow of approximately $100 million for the year, with leverage guided to the 3.8x–3.9x range by year-end. Management also signaled ongoing operational discipline and leadership changes to accelerate transformation.

Key Performance Indicators

Revenue
Decreasing
394.80M
QoQ: 24.39% | YoY: -9.92%
Gross Profit
Decreasing
129.70M
32.85% margin
QoQ: 30.22% | YoY: -8.14%
Operating Income
Decreasing
33.00M
QoQ: 592.54% | YoY: -37.97%
Net Income
Increasing
29.20M
QoQ: 321.21% | YoY: 123.32%
EPS
Increasing
0.32
QoQ: 328.57% | YoY: 124.81%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2025 383.70 0.04 -8.8% View
Q2 2025 394.80 0.31 -9.9% View
Q1 2025 317.40 -0.14 -11.6% View
Q4 2024 448.10 0.21 -8.3% View
Q3 2024 420.90 0.10 -6.1% View