ACCO(US:ACCO)2025-10-30 20:58Financial Performance - Third quarter net sales were $383.7 million, down 8.8% from $420.9 million in 2024, with favorable foreign exchange contributing $6.5 million or 1.5% to sales[5] - Adjusted earnings per share (EPS) for the third quarter were $0.21, in line with the company's outlook, while reported EPS was $0.04, down from $0.09 in the prior year[8] - Operating income for the third quarter was $26.0 million, compared to $26.3 million in 2024, with adjusted operating income at $39.2 million, down from $44.7 million[7] - The Americas segment reported net sales of $227.6 million, a decrease of 12.2% from $259.1 million in the prior year, impacted by softer demand[9] - International segment net sales were $156.1 million, down 3.5% from $161.8 million, with favorable foreign exchange increasing sales by 3.8%[11] - Net income for Q3 2025 was $4.0 million, down 57.0% from $9.3 million in Q3 2024[32] - Adjusted EBITDA for the three months ended September 30, 2025, was $45.8 million, a decrease of 13.6% compared to $53.0 million in the same period of 2024[56] - Adjusted net income per diluted share for the three months ended September 30, 2025, was $0.21, compared to $0.23 for the same period in 2024[49] - The adjusted operating income margin for the total company was 10.2% in Q3 2025, down from 10.6% in Q3 2024[63] Cash Flow and Dividends - Year-to-date operating cash flow was $38.1 million, down from $95.5 million in the prior year, with adjusted free cash flow at $42.3 million compared to $86.9 million[16] - The company anticipates adjusted free cash flow for 2025 to be approximately $90 million to $100 million, including $17 million from the sale of two facilities[19] - The board declared a quarterly cash dividend of $0.075 per share, payable on December 10, 2025[17] - Free cash flow for the nine months ended September 30, 2025, was $93.2 million, representing 8.5% of sales, compared to $61.8 million or 5.6% of sales in 2024[52] - Free Cash Flow (non-GAAP) for Q3 2025 was $66.0 million, down from $89.2 million in Q3 2024, a decrease of 26%[61] Balance Sheet and Assets - Total assets increased to $2,258.5 million as of September 30, 2025, compared to $2,228.4 million at the end of 2024[30] - Total liabilities decreased to $1,614.5 million as of September 30, 2025, from $1,622.3 million at the end of 2024[30] - Cash and cash equivalents increased to $82.5 million at the end of Q3 2025, up from $74.1 million at the end of 2024[34] - Net debt as of September 30, 2025, was $795.3 million, a decrease of $17.1 million from $812.4 million in 2024[59] - Total debt per balance sheet as of September 30, 2025, was $873.5 million, down from $909.0 million in 2024[59] Cost Management - The company has executed a multi-year cost reduction program yielding over $50 million in savings[5] - Restructuring costs for the three months ended September 30, 2025, were $1.5 million, a significant decrease from $6.7 million in 2024[56] Future Outlook - For the full year 2025, the company expects reported sales to decline in the range of 7.0% to 8.5% and adjusted EPS to be between $0.83 and $0.90[18] - Year-to-date (YTD) total net sales for 2025 were $1,095.9 million, a decrease of 10.0% compared to $1,218.1 million in the same period of 2024[66] - The corporate segment reported an operating loss of $30.6 million for YTD 2025, compared to a loss of $32.4 million in YTD 2024[63] - The company experienced a total net sales change of $(122.2) million YTD 2025, with a comparable sales decline of 9.8%[66]