ACCO Brands — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter net sales were $380.3 million, a 0.9% decrease from $383.7 million in the prior year, driven by a 6.2% decline in comparable sales offset by 4.9% growth from the EPOS acquisition and 0.4% from favorable foreign exchange.
• Nine-month net sales totaled $1,139.1 million, a 3.9% increase from $1,095.9 million in 2025, with comparable sales down 3.7%.
• Third quarter operating income was $30.3 million compared to $26.0 million in 2025; adjusted operating income increased to $47.8 million from $39.2 million.
• Nine-month operating income was $50.2 million compared to $52.3 million in 2025; adjusted operating income increased to $107.6 million from $93.2 million.
• Third quarter net income was $11.5 million ($0.12 per diluted share) compared to $4.0 million ($0.04 per share) in 2025; adjusted net income rose to $27.2 million ($0.28 per share) from $19.5 million ($0.21 per share).
• Nine-month net income was $45.0 million ($0.47 per diluted share) compared to $20.0 million ($0.21 per share) in 2025; adjusted net income was $56.4 million ($0.59 per share) compared to $43.3 million ($0.46 per share).
• Net tariff refunds benefited consolidated operating income by $15.1 million in the third quarter, resulting in a $0.11 per share benefit to diluted earnings and a 400 basis point improvement in consolidated adjusted operating margin.
• Year-to-date free cash flow was $89.0 million, including $21.3 million of tariff refunds, compared to $25.8 million in the prior year.
• The consolidated leverage ratio was 3.6x as of September 30, 2026.

Guidance and Future Outlook:

• Full-year 2026 reported sales are expected to increase 4.0% to 6.0%, updated to include one quarter of expected sales from the acquired Trust business.
• Full-year 2026 adjusted EPS is expected to be $0.98 to $1.02, inclusive of $0.12 from tariff refunds.
• The Company expects 2026 free cash flow of approximately $100 million.
• The consolidated leverage ratio is expected to be approximately 3.5x at year-end.

Business Segments and Product Lines:

• ACCO Brands Americas third-quarter net sales were $219.8 million, a 3.4% decrease from $227.6 million, driven by a 6.4% comparable sales decline offset by 2.0% growth from EPOS and 1.0% from favorable currency.
• ACCO Brands International third-quarter net sales were $160.5 million, a 2.8% increase from $156.1 million, with 9.2% growth from EPOS partially offset by 0.4% unfavorable foreign exchange and a 6.0% comparable sales decline.
• Technology peripherals experienced softness due to global industry-wide challenges, while the back-to-school season was positive in North America and Mexico.
• The acquisition of Trust closed on October 1, 2026, expanding the technology peripheral portfolio to approach $500 million of pro forma annual sales alongside Kensington, PowerA, and EPOS.
• Nine-month comparable sales decreased 3.7% due to industry-wide trends in technology peripherals, partially mitigated by stronger demand for learning and creative categories in the Americas segment.

Market and Competitive Landscape:

• The technology peripheral sector faces global industry-wide challenges contributing to softness in comparable sales.
• Workspace Solutions trends have moderated versus the prior year globally.
• The Company operates in a highly competitive business environment with a limited number of large customers accounting for a significant percentage of sales.

Risks and Challenges:

• Risks include changes in trade policy, tariffs, and the timing/recoverability of tariff refund claims.
• Exposure to global political and economic uncertainties, foreign currency exchange rate fluctuations, and inflation affecting raw material, transportation, and labor costs.
• Risks associated with integrating acquisitions, including Trust, and realizing anticipated synergy opportunities.
• Potential for continued decline in the use of certain products and risks related to the supply chain, cybersecurity, and intellectual property.
• Risks related to pension assets, actuarial assumptions, and multi-employer pension plan liabilities.

Management Commentary and Tone:

• CEO Tom Tedford stated sales were consistent with the outlook, driven by a solid back-to-school season and stabilizing Workspace Solutions trends.
• Management noted that underlying operations were in line with the outlook, with adjusted EPS including net tariff refunds.
• Tedford highlighted technology peripherals as the strongest long-term growth opportunity and emphasized the focus on integrating brands and delivering synergy opportunities.
• The Company generated strong cash flows and continues to pay down debt.

Other Key Points:

• The Company closed on the acquisition of Trust on October 1, 2026.
• A regular quarterly cash dividend of $0.075 per share was declared on October 23, 2026, payable on December 9, 2026, to stockholders of record on November 20, 2026.
• Year-to-date dividends paid totaled $20.8 million.
• Cash balance at quarter-end was $174.7 million, which included cash held for the acquisition of Trust.
• Nine-month net income benefited from a $33.8 million bargain purchase gain related to the preliminary purchase price allocation for the EPOS acquisition.
• Prior-year net income was positively impacted by a $6.9 million gain on the sale of assets and discrete tax items related to the settlement of outstanding tax assessments in Brazil.