ACCO Brands reported a mixed Q4 2024 characterized by modest revenue decline but notable margin expansion and stronger free cash flow, supported by aggressive cost actions and working-capital discipline. Revenue for Q4 reached $448.1 million, down 8.3% year over year, while gross profit was $155.5 million and gross margin stood at 34.70%, up 70 basis points from the prior year. Operating income was $42.0 million (margin 9.37%), and net income was $20.6 million ($0.22 per share).
Outside of the quarter, ACCO advanced its multi-year cost-reduction program, targeting $100 million of cumulative annual savings by end-2026 (up from a prior target) after delivering roughly $25 million of savings in 2024. The company reduced inventory by 17% in 2024 and improved working capital, contributing to free cash flow of $132 million for the year and a net-debt reduction of $94 million. Management reaffirmed a disciplined capital-allocation framework—debt reduction, dividends, share repurchases, and selective M&A—while refinancing facilities to extend maturities to 2029 and expanding the revolving facility to preserve liquidity.
Management signaled a strategic shift toward adjacencies beyond traditional office categories (e.g., ergonomics and technology accessories) and an accelerated in-market push via product development, pricing, promotions, and select inorganic opportunities. The near-term 2025 outlook contends with significant volatility from tariffs, foreign exchange, and macro softness, with expectations for flat-to-broadly improving revenue trends over the year and an adjusted EPS range of $1.00–$1.05. The company also guided for free cash flow of $105–$115 million and a target leverage of roughly 3.0–3.3x by year-end 2025. While the first quarter is historically smaller, the company anticipates a 5%–8% year-over-year decline in comparable sales in Q1 2025 due to FX headwinds and softer demand. This outlook underscores ACCO’s emphasis on margin resilience and cash-generation as levers to drive longer-term profitability.