ACCO Brands' Strong Start to 2026 Driven by EPOS Acquisition, Cost Savings, and Upbeat Outlook
First Quarter Performance Exceeds Company Expectations
ACCO Brands kicked off 2026 with notable momentum, reporting an 8.3% rise in net sales to $343.7 million for the first quarter – outperforming its initial outlook. This sales growth was largely fueled by the acquisition of EPOS and favorable foreign exchange rates. The company posted a diluted EPS of $0.20, bolstered in part by a bargain purchase gain from acquiring EPOS. On an adjusted basis, diluted EPS stood at $0.02, marking an improvement from the prior year’s loss per share of $(0.02).
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Net Sales ($ millions) | 343.7 | 317.4 | +8.3% |
| Adjusted Operating Income ($ millions) | 11.7 | 6.9 | +69.6% |
| Adjusted EBITDA ($ millions) | 21.6 | 20.9 | +3.3% |
| Adjusted EPS ($ per share) | 0.02 | (0.02) | – |
| Net Income ($ millions, GAAP) | 19.4 | (13.2) | – |
Growth in Both Americas and International Segments, Bolstered by EPOS
The Americas region saw net sales climb by 2.6%, mainly due to the EPOS acquisition and growth in Latin America. Adjusted operating income in the Americas increased 28% to $12.8 million, as cost savings initiatives more than offset soft office product demand. International sales surged by 15.1%, again thanks to favorable forex and EPOS, with adjusted operating income up 15.6%.
| Segment | Q1 2026 Net Sales ($M) | % Change | Adj. Operating Income ($M) | Adj. Op. Margin |
|---|---|---|---|---|
| Americas | 178.5 | +2.6% | 12.8 | 7.2% |
| International | 165.2 | +15.1% | 11.1 | 6.7% |
Cost Discipline and Profitability to Remain Focus Areas
Management remains focused on delivering cost savings and expanding into higher-growth technology peripherals. The company is on track to realize $100 million in cost savings by year-end, with expected free cash flow for 2026 between $75 million and $85 million. ACCO ended the quarter with free cash flow of $1.4 million and a consolidated leverage ratio at 4.1x.
| Q1 2026 | Q1 2025 |
|---|---|
| Operating Cash Flow: $3.5M Free Cash Flow: $1.4M |
Operating Cash Flow: $5.5M Free Cash Flow: $3.3M |
2026 Outlook Reaffirmed: Modest Revenue Growth Amidst Dynamic Markets
For the full year, ACCO expects reported sales to be flat to up 3%, and adjusted EPS between $0.84 to $0.89. The second quarter forecast calls for revenue growth of 1%-4%, with adjusted EPS of $0.24-$0.28. Management remains confident, citing the integration of EPOS, stabilizing demand in parts of the business, and execution of their restructuring and technology pivot.
Key Risks and Leadership Perspective
While management points to ongoing risks – including inflation, foreign exchange, and shifting demand in traditional office products – they continue to target higher growth areas and maintain strong cost control. CEO Tom Tedford emphasized ongoing efforts to diversify the portfolio and create shareholder value through structural improvements and disciplined operations.
Takeaway: Strategic Execution Supports Improved Profitability and Future Growth
With a strong start to 2026, ACCO Brands is leveraging strategic acquisitions, cost controls, and sector pivoting to technology peripherals to drive growth and improve margins. Investors may want to watch this ongoing transformation, particularly as the company maintains its targets even as macroeconomic uncertainties persist.
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