ACCO Brands Corporation

Reported second-quarter sales increased 5%; comparable sales were down 2%. Adjusted gross profit was $138 million, up 6%, and adjusted gross margin was 33.1%, up 20 basis points. Adjusted SG&A was $89 million, and adjusted operating income was $48 million, up versus last year. Americas sales were up 6% with comparable sales up 2%; International sales were up 4% with comparable sales down approximately 9%. For 2026, management raised full-year reported sales guidance to up 2% to 5% and adjusted EPS guidance to $0.87 to $0.91. They expect third-quarter reported sales of down 1% to up 2% and adjusted EPS of $0.17 to $0.21. Full-year free cash flow is expected to be $75 million to $85 million, with $24 million in restructuring payments and $15 million in CapEx. Management also expects consolidated leverage to end the year at 3.7x to 3.9x.

Tom Tedford said the quarter benefited from the multiyear cost reduction program, renewed commercial focus, and strategic growth initiatives, especially EPOS. He emphasized that back-to-school is tracking well, inventory is in good shape, and the company is cautiously optimistic on that season. He also highlighted a long-term shift toward faster-growing technology peripheral categories, while acknowledging near-term weakness in demand and an uncertain operating environment.

Deb O'Connor said results were ahead of outlook, with sales up 5%, adjusted gross profit of $138 million, and a 33.1% margin, aided mainly by cost savings. She noted Americas adjusted operating income of $56 million and International adjusted operating income of $4 million, and said EPOS is expected to contribute $80 million of 2026 sales and be neutral to adjusted EPS for the year while delivering $15 million in cost synergies within 18 months. She added year-to-date free cash outflow was $39 million, inventory was up $14 million year over year due entirely to EPOS, the company returned $7 million in dividends, had about $205 million available under its revolver, and ended with leverage of 4.3x, which it expects to fall to 3.7x to 3.9x by year-end. She also said the company filed claims for $20 million of tariff refunds expected in 2026 and $5 million expected in 2027, but none of that is in guidance.

Analysts focused on back-to-school trends, the strength in Mexico, the EPOS integration, and how long tech-peripherals weakness could persist. Management said back-to-school sell-in has been strong, sell-through is in line with or better than plan, inventories are in good shape, and the company is seeing share gains early in the season. On technology peripherals, management said enterprise spending has slowed, PC demand is down, and accessory demand is being delayed by hardware costs and AI-related budget shifts; they still see the category as attractive long term. On M&A, Tom Tedford said the company is nearing the end of EPOS integration and could be positioned for another deal relatively soon, though no specifics were given.