ACCO · ACCO Brands Corporation

ACCO Brands delivered a strong Q1 2026 start with net sales up 8.3% to $343.7 million, surpassing the company's outlook, primarily fueled by the EPOS acquisition, favorable foreign exchange, Latin America growth, and computer accessories expansion in Americas. Comparable sales declined modestly due to softer office product demand, but adjusted operating income rose to $11.7 million from $6.9 million prior year, driven by cost savings outweighing volume pressures. GAAP net income swung to $19.4 million or $0.20 per share from a loss, propelled by a $37.6 million bargain purchase gain on EPOS preliminary allocation, while adjusted net income improved to $1.8 million or $0.02 per share. Segmentally, Americas sales grew 2.6% with adjusted OI up to $12.8 million on cost discipline despite mix and volume headwinds; International surged 15.1% on FX and EPOS, with adjusted OI at $11.1 million. CEO Tom Tedford highlighted EPOS outperformance and integration progress, portfolio pivot to tech peripherals, and $100 million cost savings target on track. Cash generation softened to $3.5 million operating and $1.4 million free cash flow amid restructuring outflows, with leverage at 4.1x. Full-year outlook reaffirmed with sales flat to +3%, adjusted EPS $0.84-$0.89, FCF $75-$85 million targeting 3.7x-3.9x leverage, signaling confidence despite macro uncertainties. Q2 guides sales +1-4% and adjusted EPS $0.24-$0.28, underscoring operational momentum and acquisition value realization for shareholders.