Acco Brands (NYSE:ACCO) reported fourth-quarter and full-year 2025 results that management said were in line with its outlook, while outlining a strategy increasingly centered on technology peripherals and a multi-year cost reduction plan. President and CEO Tom Tedford and Senior Vice President of Global Financial Planning and Analysis and Treasurer Jagannath “JB” Bobbili led the call; CFO Deb O’Connor did not participate due to a personal matter and is expected to return in a few weeks.
2025 performance and Q4 trends
Tedford said the company executed through “significant disruptions” during 2025, citing continued demand challenges globally and tariff-related disruptions in the U.S. He added that ACCO Brands “maintained or grew its market position in most categories” and continued investing in higher-growth areas.
Segment results: Americas stabilizes while EMEA remains pressured
In the Americas segment, Bobbili said comparable sales declined 5% in the quarter. Growth in technology accessories categories and planning products was more than offset by lower demand for core products and an unfavorable mix of lower-priced product in Brazil. Americas adjusted operating income rose modestly to $43 million, and the adjusted operating margin improved 110 basis points to 17.7%, driven by cost savings and lower incentive compensation.
International comparable sales declined 12% in the fourth quarter. Bobbili said results were affected by soft demand in Europe and a difficult comparison to the prior year due to non-repeats of year-end customer buying in Q4 2024; excluding that, he said the decline was similar to the third quarter. Growth in Australia partially offset European weakness. International adjusted operating income was $26 million and the adjusted operating margin was 14.1%, both down year over year, as lower volumes more than offset pricing and cost savings benefits.
Tedford also highlighted brand-level performance in the Americas, saying PowerA benefited from “leading new product offerings” supporting the Nintendo Switch 2 launch and holiday retail placements, while Kensington saw a solid quarter driven by a strong pipeline and new product introductions.
Cash flow, leverage, and shareholder returns
For the full year, adjusted free cash flow was $70 million, which included $19 million in proceeds from the sale of three owned facilities. Bobbili said cash flow was lower in 2025 due to an EBITDA decline and tariff-related cash payments, which were about $15 million higher than the prior year.
The company returned $42 million to shareholders during 2025, including $27 million in dividends and $15 million in share repurchases. At year-end, ACCO Brands had about $292 million available under its revolving credit facility and ended the quarter with a consolidated leverage ratio of 4.1x.
EPOS acquisition: portfolio shift and synergy expectations
Tedford described the acquisition of EPOS as a strategic move to broaden ACCO Brands’ technology peripherals portfolio, which he said now represents roughly 25% of projected revenues. He said EPOS strengthens the enterprise computer accessories business with third-party certifications across unified communications platforms and is complementary to Kensington. Tedford also said the company expects “$50 million in annual cost synergies” from the transaction and pointed to ACCO’s track record of capturing cost synergies from acquisitions.
On the Q&A portion of the call, management provided additional detail. Tedford said the addressable market for EPOS is about $1.7 billion, with EPOS holding roughly 5% share. He added that the overall market is growing in the low single digits and said EPOS had been disrupted while the asset was for sale, with a mid- to high-single-digit rate of decline over the last year. Tedford said the company expects EPOS to become a growing business over time.
Bobbili offered a more specific synergy and financial contribution view, stating EPOS generated approximately $90 million in sales in 2025, mostly in Europe. He said ACCO expects to realize $15 million in annual cost synergies over the next 12 to 18 months, and that the acquisition will be “slightly accretive to EBITDA” in the first year. ACCO expects to record $7 million in restructuring charges related to EPOS integration actions in 2026.
Asked about revenue synergy potential, Tedford said the combination of EPOS with Kensington creates growth opportunities via broader market coverage and an expanded sales “bag” through ACCO’s distribution footprint. He noted EPOS brings “over 130 patents” and that it enables the business to reach “upper price points” compared with Kensington’s more value-oriented audio offerings. Management did not quantify revenue synergies.
2026 outlook: modest growth, FX tailwind, and margin expansion
For 2026, ACCO Brands expects reported sales to be flat to up 3% and adjusted EPS of $0.84 to $0.89. Free cash flow is expected to be $75 million to $85 million, excluding asset sales. Bobbili said that excluding 2025 asset sale proceeds, free cash flow at the midpoint of the 2026 outlook would increase by more than 50%. The company expects a consolidated leverage ratio of 3.7x to 3.9x.
For the first quarter of 2026, ACCO expects reported sales to be flat to up 3% and an adjusted loss per share of $0.06 to $0.03. Bobbili emphasized that Q1 2025 benefited from higher-margin back-to-school business pulled forward due to U.S. tariffs and from a one-time Kensington order in Europe.
Management also discussed the expected revenue bridge for 2026. Tedford said the company anticipates benefits from the EPOS acquisition, improved demand in many categories, and favorable foreign exchange. On Q&A, he said the company expects the Americas segment to be down mid-single digits in Q1 and down low single digits for the full year, while international is expected to be up low double digits in Q1 and up mid-single digits for the full year. Bobbili said the company is planning for a roughly 1.5% benefit from foreign exchange for the year.
On EPOS revenue expectations, Tedford said ACCO expects EPOS to contribute about $80 million in revenue in 2026, with relatively consistent monthly splits and no major seasonality. In technology accessories, he said Kensington’s pipeline and PowerA’s exposure to Nintendo Switch 2 and a larger slate of gaming titles in 2026 are expected to help, specifically noting that Grand Theft Auto VI is anticipated for late in the year.
On margins and pricing, management said it anticipates gross margin expansion in 2026, supported by footprint optimization, pricing actions in certain markets, and additional U.S. price increases planned for April to offset inflation impacts tied to tariffs and other factors. Tedford said the company “lagged a bit” versus expectations from U.S. pricing in 2025 and that it has announced mid-single-digit price increases expected to be implemented in April 2026. He said the company will monitor mix and adjust pricing “both up or down” as needed. He also said SG&A could rise modestly if incentive compensation increases, while ACCO intends to maintain cost discipline.
Beyond EPOS, Tedford reiterated that ACCO delivered $35 million of savings in 2025 under its multi-year cost reduction program, bringing cumulative savings to over $60 million since early 2024, and said the company remains on track to deliver $100 million of savings by the end of 2026.
On back-to-school, Tedford said retailers pulled some orders into Q1 last year to avoid tariff disruptions, but ACCO does not expect that pattern to repeat, suggesting a more normal ordering cadence in 2026. He said the early order book is strong and that North America’s back-to-school season should be “solid,” with anticipated sell-in equal to or better than the prior year, though with different timing.
In closing remarks, Tedford said the company expects the combination of EPOS, stabilizing end markets, and positive foreign exchange to drive revenue growth in 2026, while continued cost management and productivity programs support improved profits and cash flow. He also noted ACCO has no debt maturities until 2029.
About Acco Brands (NYSE:ACCO)
Acco Brands Corporation is a global provider of branded office and school supplies, serving consumers, educational institutions and commercial customers. Headquartered in Lake Zurich, Illinois, the company designs, manufactures and distributes a wide range of products that enhance productivity and organization in work and learning environments.
The company’s portfolio includes staplers, hole punches, binding and laminating systems, writing tools, binders, folders and desktop accessories under well-known names such as ACCO, Swingline, GBC, Kensington, Mead and Five Star.
