2025 Integrated Sustainability and Annual Reports; 2026 Notice and Proxy Statement

Making Possible

LETTER FROM OUR PRESIDENT & CEO

Deon Stander

Fellow Stakeholders,

Our Avery Dennison team demonstrated tremendous resilience in 2025, delivering solid performance amid protect margins, deliver solid returns and solve some of

Advancing our strategic priorities 2025, an approximate 12 percentage point increase since

Accelerating the impact of our innovation

Avery Dennison Corporation | 2025 Integrated Report i

Creating value through sustainability

ABOUT THIS REPORT

2025 Integrated Report | Avery Dennison Corporation

Positioned for continued growth and long-term shareholder value

our focus on exceeding customer expectations, and our

OUR COMPANY

Our commitment to innovation and creating value and

Our Materials Group

increase transparency and improve for applications in various industr y and process engineering expertise to drive

Our Solutions Group is a leading provider

customers across multiple retail and industry segments, including apparel, logistics, food and grocery, and general retail, to connect

Our Stakeholders

Employees

Communities

Investors

OUR BUSINESS STRATEGIES

Our Strategies

Grow profitably in our base businesses

Drive outsized growth in highvalue categories through market-driven innovation

Lead at the intersection of the physical and digital

Effectively allocate capital and relentlessly focus on productivity

Lead in an environmentally and socially responsible manner

SUSTAINABILITY HIGHLIGHTS

opportunities to create differentiated soolutions and

2025 Sustainability Goal Results

Progress Toward 2030 Goals

Goal 1: Deliver innovations that advance the circular economy

Goal 2: Reduce our environmental impact in our operations and supply chain

Goal

OUR STRATEGIES IN ACTION

Drive outsized growth in high-value categories through market-driven innovation

Our proprietary technologies, scale revenue streams in our targeted, high-value categories. We continue to invest in developing innovations that deliver value to our customers and strengthen our competitive differentiation.

Enhancing food freshness and operational efficiency with the world’s leading retailer

more accurate inventory management leading to improved advances a more connected and transparent food supply

Harnessing opportunities in the worldwide automotive aftermarket

aftermarket in 2025 with a series of innovations. In North America, we introduced our dry-applied

original equipment manufacturer to fundamentally transform a car manufacturing process with applied customer demand. Additionally, we continue to invest in manufacturing and materials formulations our customers and for consumers.

Grow profitably in our base businesses

We apply a disciplined approach

price and mix, reducing complexity and tailoring our go-to-market and extensive experience in developing customer solutions underpin our innovation mindset and strengthen our competitive moat. The address our markets’ most pressing and innovation, and an intense concentration on design, functionality and customer value.

Winning reclosure solutions in China

innovation decreases materials costs and reduces our

Capturing shoppers’ attention with clear-on-clear labeling

As transparency continues to dominate consumer

Lead at the intersection of the physical and digital

every physical item has a digital identity. We are making this vision

expertise and innovations in

product’s lifecycle, reducing waste and mitigating loss, increasing and facilitating deeper consumer engagement. Our efforts have produced advancements in managing data at the item level.

Meeting the rapidly growing demand for scalable ambient internet of things, or IoT, supply chain intelligence

Advancing capabilities for label and packaging converters with smart materials

Effectively allocate capital and relentlessly focus on productivity

We employ a disciplined capital allocation strategy and focus on productivity to deliver long-term value to our stakeholders. We have generated consistently strong adjusted and through acquisitions and venture investments, while returning cash to shareholders through share repurchases and dividends.

Expanding our specialty adhesives portfolio

Dennison

Boosting productivity through technology and operational excellence

Investing in our Latin American capabilities

In 2025, Avery Dennison completed one of our largest expansions in Latin America, increasing our production

advances innovation, improves productivity and generates

Aver y Dennison plant in Vinhedo, Brazil

Lead in an environmentally and socially responsible manner

Our commitment to operating in an environmentally and socially knowing that doing so creates value for our stakeholders. When we minimize our environmental impact, we also reduce operating costs and of our operations and supply innovation, increases differentiation through new solutions that address to attract top talent.

GOAL 1

Deliver innovations that advance the circular economy

Ctilihlblli Creating value with label recycling programs and reuse solutions

Leading with AD CleanGlass™, AD CleanFiber™ and CleanFlake®

Under the AD Circular™ program, customers collect and recycle used label materials, streamlining recycling for converters and brands by providing a onestop solution. Companies use an online web application to schedule pickups of used materials, and Avery Dennison manages the rest — transport, recycling, paperwork and regulatory compliance.

support purer recycling streams, a primary recycling

Lowering our environmental impact and improving operating practices

GOAL 2

Reduce our environmental impact in our operations and supply chain

production practices, pollutant emission control and green

The Avery Dennison Guangzhou factory was

Our commitment to reducing our environmental footprint

of CO2

GOAL 3

Make a positive social impact by enhancing the livelihood of our people and our communities

“approximately $910,000 in grants to increase access to

improved climate resilience and over 11,000 participants

2025 Integrated Report | Avery Dennison Corporation

Acción Andina is not just about producing and restoring young trees. It’s about working handin-hand with the local communities.

Rosmery Ayala, Executive Director of Faunagua, Acción Andina partner, Bolivia

Acción Andina is a grassroots, communitybased initiative working across South America to protect native High Andean forest ecosystems.

Photo courtesy of ECOAN, in Vilcanota, Peru.

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UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION WASHINGTON,DC20549

FORM10-K

È ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthefiscalyearendedDecember31,2025or ‘ TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 Forthetransitionperiodfromto

Commissionfilenumber1-7685

AVERYDENNISONCORPORATION

(ExactNameofRegistrantasSpecifiedinItsCharter) Delaware95-1492269 (StateofIncorporation)(I.R.S.EmployerIdentificationNo.)

8080NortonParkway

Mentor,Ohio44060 (AddressofPrincipalExecutiveOffices)(ZipCode)

Registrant’stelephonenumber,includingareacode: (440)534-6000

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

TitleofEachClass TradingSymbol(s) Nameofeachexchangeonwhichregistered Commonstock,$1parvalueAVYNewYorkStockExchange 3.750%SeniorNotesdue2034AVY34NasdaqStockMarket 4.000%SeniorNotesdue2035AVY35NasdaqStockMarket

SecuritiesregisteredpursuanttoSection12(g)oftheAct: Notapplicable.

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes È No ‘

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13or15(d)oftheAct.Yes ‘ No È

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof 1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfiling requirementsforthepast90days.Yes È No ‘

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuantto Rule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmit suchfiles).Yes È No ‘

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany, oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowth company”inRule12b-2oftheExchangeAct.

LargeAcceleratedFiler È

Acceleratedfiler ‘

Non-acceleratedfiler ‘ Smallerreportingcompany ‘ Emerginggrowthcompany ‘

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwith anyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct. ‘

Indicatebycheckmarkwhethertheregistranthasfiledareportonandattestationtoitsmanagement’sassessmentoftheeffectivenessofits internalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublicaccountingfirmthat preparedorissueditsauditreport. È

IfsecuritiesareregisteredpursuanttoSection12(b)oftheAct,indicatebycheckmarkwhetherthefinancialstatementsoftheregistrantincluded inthefilingreflectthecorrectionofanerrortopreviouslyissuedfinancialstatements. ‘

Indicatebycheckmarkwhetheranyofthoseerrorcorrectionsarerestatementsthatrequiredarecoveryanalysisofincentive-basedcompensation receivedbyanyoftheregistrant’sexecutiveofficersduringtherelevantrecoveryperiodpursuantto§240.10D-1(b). ‘

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes ‘ No È

Theaggregatemarketvalueofvotingandnon-votingcommonequityheldbynon-affiliatesasofJune27,2025,thelastbusinessdayofthe registrant’smostrecentlycompletedsecondfiscalquarter,wasapproximately$13.6billion.

Numberofsharesofcommonstock,$1parvalue,outstandingasofJanuary31,2026,theendoftheregistrant’smostrecentfiscalmonth: 76,877,940.

ThefollowingdocumentsareincorporatedbyreferenceintothePartsofthisForm10-Kindicatedbelow:

Document

Incorporatedbyreferenceinto: PortionsofDefinitiveProxyStatementforAnnualMeetingofStockholderstobeheldonApril30,2026PartsIII,IV

PARTII

Item5.MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquity

Item7.Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations24

Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk42 Item8.FinancialStatementsandSupplementaryData43

Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure91

Item9C.DisclosureRegardingForeignJurisdictionsthatPreventInspections91

PARTIII

Item10.Directors,ExecutiveOfficersandCorporateGovernance92

Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters93 Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence93 Item14.PrincipalAccountantFeesandServices93

PARTIV

Item15.ExhibitsandFinancialStatementSchedules94

ThemattersdiscussedinthisAnnualReportonForm10-Kcontain“forward-lookingstatements”withinthemeaning ofthePrivateSecuritiesLitigationReformActof1995.Thesestatements,whicharenotstatementsofhistoricalfact, containestimates,assumptions,projectionsand/orexpectationsregardingfutureevents,whichmayormaynotoccur. Wordssuchas“aim,”“anticipate,”“assume,”“believe,”“continue,”“could,”“estimate,”“expect,”“foresee,”“guidance,” “intend,”“may,”“might,”“objective,”“plan,”“potential,”“project,”“seek,”“shall,”“should,”“target,”“will,”“would,”or variationsthereof,andotherexpressionsthatrefertofutureeventsandtrends,identifyforward-lookingstatements.Our forward-lookingstatements,andfinancialorotherbusinesstargets,aresubjecttocertainrisksanduncertainties,which couldcauseouractualresultstodiffermateriallyfromtheexpectedresults,performanceorachievementsexpressedor impliedbysuchforward-lookingstatements.

Webelievethatthemostsignificantriskfactorsthatcouldaffectourfinancialperformanceinthenearterminclude: (i)theimpactonunderlyingdemandforourproductsfromglobaleconomicconditions,tariffs,geopoliticaluncertainty, andchangesinenvironmentalstandards,regulationsandpreferences;(ii)competitors’actions,includingpricing, expansioninkeymarkets,andproductofferings;(iii)thecostandavailabilityofrawmaterials;(iv)thedegreetowhich highercostscanbeoffsetwithproductivitymeasuresand/orpassedontocustomersthroughpriceincreases,withouta significantlossofvolume;(v)foreigncurrencyfluctuations;and(vi)theexecutionandintegrationofacquisitions.

Certainrisksanduncertaintiesarediscussedinmoredetailunder“RiskFactors”and“Management’sDiscussionand AnalysisofFinancialConditionandResultsofOperations”inthisAnnualReportonForm10-K.Actualresultsandtrends maydiffermateriallyfromhistoricaloranticipatedresultsdependingonavarietyoffactors,includingbutnotlimitedto, risksanduncertaintiesrelatedtothefollowing:

•InternationalOperations–worldwideeconomic,geopolitical,socialandlaborconditions;changesingeopolitical conditions,includingthoserelatedtotraderelationsandtariffs,China,theRussia-Ukrainewar,theIsrael-Hamas warandrelatedhostilitiesintheMiddleEast;fluctuationsinforeigncurrencyexchangerates;andotherrisks associatedwithinternationaloperations,includinginemergingmarkets

•OurBusiness–fluctuationsindemandaffectingsalestocustomers;fluctuationsinthecostandavailabilityof rawmaterialsandenergy;changesinourmarketsduetocompetitiveconditions,technologicaldevelopments, lawsandregulations,customerpreferences;environmentalregulationsandsustainabilitytrends;theimpactof competitiveproductsandpricing;theexecutionandintegrationofacquisitions;sellingprices;customerand supplierconcentrationsorconsolidations;thefinancialconditionofdistributors;outsourcedmanufacturers; productandservicequalityclaims;restructuringandothercostreductionactions;ourabilitytogenerate sustainedproductivityimprovementandourabilitytoachieveandsustaintargetedcostreductions;thetimely developmentandmarketacceptanceofnewproducts,includingsustainableorsustainably-sourcedproducts; ourinvestmentindevelopmentactivitiesandnewproductionfacilities;thecollectionofreceivablesfrom customers;andoursustainabilityandgovernancepractices

•InformationTechnology–disruptionsininformationtechnologysystems;cybersecurityeventsorothersecurity breaches;andsuccessfulinstallationofneworupgradedinformationtechnologysystems

•IncomeTaxes–fluctuationsintaxrates;changesintaxlawsandregulations,anduncertaintiesassociatedwith interpretationsofsuchlawsandregulations;outcomeoftaxaudits;andtherealizationofdeferredtaxassets

•HumanCapital–recruitmentandretentionofemployeesandcollectivelaborarrangements

•OurIndebtedness–ourabilitytoobtainadequatefinancingarrangementsandmaintainaccesstocapital;credit ratingrisks;fluctuationsininterestrates;andcompliancewithourdebtcovenants

•OwnershipofOurStock–potentialsignificantvariabilityofourstockpriceandamountsoffuturedividendsand sharerepurchases

•LegalandRegulatoryMatters–protectionandinfringementofourintellectualproperty;theimpactoflegaland regulatoryproceedings,includingwithrespecttocomplianceandanti-corruption,environmental,healthand safety,andtradecompliance

•OtherFinancialMatters–fluctuationsinpensioncostsandgoodwillimpairment

Ourforward-lookingstatementsaremadeonlyasofFebruary25,2026.Weassumenodutytoupdatethese forward-lookingstatementstoreflectnew,changedorunanticipatedeventsorcircumstances,otherthanasmaybe requiredbylaw.

PARTI

Item1.BUSINESS

CompanyBackground

AveryDennisonCorporation(“AveryDennison”orthe“Company”andgenerallyreferredtoas“we”or“us”)was foundedin1935andincorporatedinDelawarein1977asAveryInternationalCorporation,thesuccessorcorporationtoa Californiacorporationofthesamenameincorporatedin1946.In1990,wemergedoneofoursubsidiariesintoDennison ManufacturingCompany(“Dennison”),asaresultofwhichDennisonbecameourwholly-ownedsubsidiaryandin connectionwithwhichwechangedournametoAveryDennisonCorporation.Youcanlearnmoreaboutusbyvisitingour websiteatwww.averydennison.com.Ourwebsiteisnotintendedtofunctionasahyperlinkandtheinformationonour websiteisnot,norshoulditbeconsidered,partofthisreportorincorporatedbyreferenceintothisreport.

BusinessOverviewandReportableSegments

Weareagloballeaderinmaterialsscienceanddigitalidentificationsolutions.WeareMakingPossibleTM products andsolutionsthathelpadvancetheindustriesweserve,providingbrandingandinformationsolutionsthatoptimizelabor andsupplychainefficiency,reducewasteandmitigateloss,advancesustainability,circularityandtransparency,and betterconnectbrandsandconsumers.Wedesignanddeveloplabelingandfunctionalmaterials,radio-frequency identification(“RFID”)inlaysandtags,softwareapplicationsthatconnectthephysicalanddigital,andofferingsthat enhancebrandedpackagingandcarryordisplayinformationthatimprovesthecustomerexperience.Weserveanarray ofindustriesworldwide,includinghomeandpersonalcare,apparel,generalretail,e-commerce,logistics,foodand grocery,pharmaceuticalsandautomotive.

Webelievethatourexposuretodiverseandgrowingmarkets,thesizeandscaleofoperations,ourinnovation capabilities,productivityculture,andbrandstrengtharetheprimaryadvantagesinmaintainingandfurtherdeveloping ourcompetitiveposition.

Ourreportablesegmentsforfiscalyear2025wereMaterialsGroupandSolutionsGroup,whichcomprised approximately69%and31%,respectively,ofourtotalnetsales.

In2025,internationaloperationsconstitutedasubstantialmajorityofourbusiness,representingapproximately 69%ofournetsales.AsofDecember31,2025,weoperatedover200manufacturinganddistributionfacilitiesandhad locationsinmorethan50countries.

MaterialsGroup

OurMaterialsGroupisaleadingglobalprovidertothepressure-sensitivelabelandgraphicsindustries.Our innovativeproductsincludelabelmaterials,graphicsandreflectivematerialsandfunctionalbondingmaterials,liketapes. Ourlabelmaterialsenhancebrands’shelfappeal,informshoppers,advancecircularity,increasetransparencyand improveoperationalsupplychainefficiency.Ourgraphicsportfoliooffershighlyengineeredproductsrangingfromvehicle wrapstoarchitecturalfilms.Ourtapesportfolioincludesbondingandfunctionalmaterialsforapplicationsinvarious industrysectorssuchasautomotive,buildingandconstructionandelectronics.Weleveragethegroup’smaterials sciencecapabilitiesandprocessengineeringexpertisetodrivefurtherintelligentlabeladoptionthroughourconverter channelaccess.

OurMaterialsGroupmanufacturesandsellsFasson®-,JAC®-,andAveryDennison®-brandpressure-sensitive labelmaterialsandperformancetapesproducts,AveryDennison®-andMactac®-brandgraphics,andAveryDennison®brandreflectiveproducts.MaterialsGroup’sbusinesstendsnottobeseasonal,exceptforcertainoutdoorgraphics, buildingandconstruction,andreflectiveproducts.

Pressure-sensitivematerialsconsistprimarilyofpapers,plasticfilmsandmetalfoils,whicharecoatedwith internally-developedandpurchasedadhesives,andthenlaminatedwithspecially-coatedbackingpapersandfilms.They arethensoldinrollorsheetformwitheithersolidorpatternedadhesivecoatingsinawiderangeoffacematerials,sizes, thicknessesandadhesiveproperties.

Apressure-sensitive,orself-adhesive,materialisonethatadherestoasurfacebypress-oncontact.Itgenerally consistsoffourlayers:afacematerial,whichmaybepaper,metalfoilorplasticfilm;anadhesive,whichmaybe 2 2025AnnualReport | AveryDennisonCorporation

permanentorremovable;areleasecoating;andabackingmaterialtoprotecttheadhesivefromprematurecontactwith othersurfacesthatcanalsoserveasacarrierforsupportinganddispensingindividuallabels.Whentheproductsare readyforuse,thereleasecoatingandprotectivebackingareremoved,exposingtheadhesivesothatthelabelorother facematerialmaybepressedorrolledintoplace.Becausetheyareeasytoapplywithouttheneedforadhesive activation,self-adhesivematerialscanprovidecostsavingscomparedtoothermaterialsthatrequireheat-ormoistureactivatedadhesives,whilealsoofferingaestheticandotheradvantagesoveralternativetechnologies.

Labelmaterialsaresoldworldwidetoconvertersforlabeling,decoratingandspecialtyapplicationsinthefood, homeandpersonalcare,beerandbeverage,durables,pharmaceutical,wineandspiritsandlogisticsmarketsegments. Whenusedinpackagedecorationapplications,thevisualappealofself-adhesivematerialscanhelpincreasesalesofthe productsonwhichthematerialsareapplied.Self-adhesivematerialsarealsousedtoconveyvariableinformationthrough variousdigitaltriggers,includingbarcodes,quickresponse(“QR”)codesandRFIDinlays,forapplicationssuchas shippinglabelsandweightandpriceinformationforpackagedmeatsandotherfoods.Self-adhesivematerialsprovide consistentandversatileadhesionandareavailableinalargeselectionofmaterials,whichcanbemadeintolabelsof varyingsizesandshapes.

Ourgraphicsandreflectiveproductsincludeavarietyoffilmsandotherproductsthataresoldtothearchitectural, commercialsign,digitalprintingandrelatedmarketsegments.Wealsoselldurablecastandreflectivefilmstothe construction,automotiveandfleettransportationmarketsegmentsandreflectivefilmsfortrafficandsafetyapplications. Weprovidesignshops,commercialprintersanddesignersabroadrangeofpressure-sensitivematerialsthatallowthem tocreateimpactfulandinformativebrandanddecorativegraphics.Weofferawidearrayofpressure-sensitivevinyland specialtymaterialsdesignedfordigitalimaging,screenprintingandsigncuttingapplications.

OurperformancetapesproductsincludeavarietyofFasson®-brandandAveryDennison®-brandtapesandother pressure-sensitiveadhesive-basedmaterialsandconvertedproducts,mechanicalfastenersandperformancepolymers. Ourpressure-sensitiveadhesive-basedmaterialsareavailableinrollformandinawiderangeoffacematerials,sizes, thicknessesandadhesiveproperties.Thesematerialsandconvertedproductsareusedinnon-mechanicalfastening, bondingandsealingsystemsforvariousautomotive,electronics,buildingandconstruction,generalindustrial,personal care,andmedicalapplications.Themechanicalfastenersareprimarilyprecision-extrudedandinjection-moldedplastic devicesusedinvariousautomotive,generalindustrialandretailapplications.

OurlargercompetitorsinlabelmaterialsincludeUPMAdhesiveMaterials,asubsidiaryofUPMCorporation; FedrigoniSelf-Adhesives;LintecCorporation;FlexconCorporation,Inc.;andanarrayofsmallerregionalandlocal companies.Forgraphicsandreflectiveproducts,ourlargestcompetitorsare3MCompany(“3M”)andtheOrafolGroup. Forperformancetapesproducts,ourcompetitorsinclude3M;Tesa-SE,asubsidiaryofBeiersdorfAG; NittoDenkoCorporation;andnumerousregionalandspecialtysuppliers.Forfastenerproducts,thereisavarietyof competitorssupplyingextrudedandinjectionmoldedfastenersandfastenerattachingequipment.Webelievethatentry ofcompetitorsintothefieldofpressure-sensitiveadhesivesandmaterialsislimitedbytechnicalknowledgeandcapital requirements.Webelievethatourtechnicalexpertise,sizeandscaleofoperations,broadlineofqualityproducts,reliable service,productandprocessinnovation,distributioncapabilitiesandbrandstrengtharetheprimaryadvantagesin maintainingandfurtherdevelopingourcompetitiveposition.

SolutionsGroup

OurSolutionsGroupisaleadingproviderofinformationandbrandingsolutionsthatcoverworldwidemarketplace needsrangingfromdigitalidentificationanddatamanagementtobrandingandembellishment,productivity,pricingand retailmedia.Ourultra-high-frequencyRFIDsolutionsempowercustomersacrossmultipleretailandindustrysegments, includingapparel,logistics,foodandgrocery,andgeneralretail,toconnectthephysicalanddigitalworldsbyenablinga digitalidentityandlifeforphysicalitems.

ThebrandingsolutionsoftheSolutionsGroupincludebrandembellishments,graphictickets,tags,andlabels,and sustainablepackaging.SolutionsGroup’sinformationsolutionsincludeitem-levelRFIDsolutions;visibilityandloss preventionsolutions;priceticketingandmarking;care,content,andcountryoforigincompliancesolutions;brand protectionandsecuritysolutions;andVestcom®-brandshelf-edgeproductivityandmediasolutions.

IntheSolutionsGroup,ourprimarycompetitorsincludeCheckpointSystems,Inc.,asubsidiaryof CCLIndustriesInc.;R-pacInternationalCorporation;SMLGroupLimited;ArizonRFIDTechnologyCaymanCoLtd;and TageosSAS,asubsidiaryofFedrigoniGroup.Webelievethatourproduct,processandsolutioninnovation, AveryDennisonCorporation | 2025AnnualReport 3

globaldistributionnetwork,reliableservice,productqualityandconsistency,andabilitytoservecustomersconsistently withcomprehensivesolutionsclosetowheretheymanufacture,sourceandsellarethekeyadvantagesinmaintaining andfurtherdevelopingourcompetitiveposition.

Research,DevelopmentandInnovation

Asagloballeaderinmaterialsscience,weinnovatetodevelopandintroducenewproductsandsolutionsthat helpcustomerssolvesomeofthemostcomplexproblemsintheindustriesweserve.Theseincludeoptimizingsupplychainandlaborefficiency,reducingwasteandmitigatingloss,advancingsustainability,circularityandtransparency,and helpingbrandsandconsumerstobetterconnect.Withdecadesofexperienceanddeepexpertiseinmaterialsscience, engineering,andprocesstechnology,wecontinuouslyinnovatetoanticipatemarketneeds,addresscustomerchallenges andunlocknewopportunities.

OurvisionistoleveragethestrengthsofourMaterialsandSolutionsgroupstodrivegrowthbydeliveringleading solutionsattheintersectionofthephysicalanddigitalworlds.Ourdecadesofexperiencecreatingsolutionsfor customersandourdeepexpertiseenableustobringinnovativesolutionstotheindustriesweserve.Ourinnovation effortsfocusonanticipatingmarketandcustomerchallengesandopportunities,andapplyingtechnologytoaddress them.Ourinvestmentininnovationaimstoaccelerategrowthbydevelopingnewproductsandsolutions,expand marginsthroughmaterialre-engineering,andenablecustomersuccessbyleveragingscalableinnovationplatformsand deliveringsustainabilityinitiativesandadvancedtechnologies.

Manyofournewproductsresultfromourresearchanddevelopmentefforts.Theseeffortsaredirectedprimarily towarddevelopingproducts,solutionsandoperatingtechniquesandimprovingproductivity,sustainabilityandproduct performance,oftenincloseassociationwithourcustomersorendusers.Theseeffortsprovideintellectualpropertythat leveragesourresearchanddevelopmentrelatingtomaterialsscience,suchasadhesives,films,inksandreleaseliners, andprocessengineeringtechnology,suchascoating,laminatingandprintingtechnologiesinMaterialsGroup.Wefocus onresearchprojectsrelatedtoRFID,externalembellishments,dataanddigitalsolutionsandprintingtechnologiesin SolutionsGroup.Wehaveandlicenseanumberofpatentsinbothofourreportablesegments.Additionally,ourresearch anddevelopmenteffortsincludesustainableinnovationanddesignofproductsthatadvancethecirculareconomy, reducematerialsandwaste,userecycledcontent,andextendproductend-of-lifeorenableproductrecycling.

AcquisitionsandVentureInvestments

Inadditiontoourinvestmentstosupportorganicgrowth,wehavepursuedcomplementaryandsynergistic acquisitions.In2025,weacquiredW.F.TaylorHoldings,Inc.(“TaylorAdhesives”),aGeorgia-basedflooringadhesives business.Theaggregatepurchaseconsiderationforthisacquisitionwasapproximately$390million.Additionally,during 2025,wemadeventureinvestmentsinfivecompaniesdevelopingtechnologicalsolutionsthatwebelievehavethe potentialtoadvanceourbusinesses.Forinformationregardingouracquisitions,seeNote2,“BusinessAcquisitions,”in theNotestoConsolidatedFinancialStatements.Forinformationregardingourventureinvestments,seeNote9,“Fair ValueMeasurements,”intheNotestoConsolidatedFinancialStatements.

Patents,TrademarksandLicenses

Thelossofindividualpatentsorlicenseswouldnotbematerialtoustakenasawhole,nortoouroperating segmentsindividually.OurprincipaltrademarksareAveryDennison,ourlogo,andFasson.Webelievethesetrademarks arestronginthemarketsegmentsinwhichweoperate.

HumanCapitalResources

OurGlobalWorkforce

Withapproximately69%ofour2025netsalesoriginatingoutsidetheU.S.andapproximately40%ofournet salesoriginatinginemergingmarkets(LatinAmerica,EasternEurope,MiddleEast/NorthernAfrica,andmostcountriesin AsiaPacific),ouremployeesarelocatedinmorethan50countriestobestserveourcustomers.Approximately83%of ouremployeesatyear-end2025werelocatedoutsidetheU.S.andapproximately67%werelocatedinemerging markets.

Thechartsbelowshowourglobalemployeepopulationbyregionandoperationalfunction.Nearly20,000ofour approximately35,000employeesatyear-end2025,representingapproximately58%ofourglobalworkforce,werein 4 2025AnnualReport | AveryDennisonCorporation

AsiaPacific,servingourcustomersinthatregion.Atthattime,approximately71%ofourglobalworkforceworkedinthe operationsofourmanufacturingfacilitiesorinpositionsdirectlysupportingthemfromotherlocations.

(1) Reflectsreclassificationin2025ofapproximately2,500employeesfromNon-OperationstoOperationscomparedtoprioryear.

Talent&Development

Webelievethatattracting,developingandretaininghighly-skilledtalentiscriticaltoourabilitytocontinue deliveringsustainablegrowth.Weprovideongoingsupportandprofessionaldevelopmentresourcestoourteam membersworldwidetoensurethattheirskillsevolvewithourbusinessneeds,industrytrendsandhumancapital managementbestpractices,aswellasenableincreasedproductivity,peakperformanceandcareergrowth.Wehave strongtalentreviewandsuccessionplanningprocessesthatprovidetargeteddevelopmentopportunitiesforourteam members.Weemphasizeon-the-jobdevelopmentandcoaching,andalsoprovidefacilitator-ledanddirect-accessonline training,leadershipopportunitiestoexecutespecialprojectsand,insomecases,cross-functional,cross-regionalor cross-divisionalworkassignments.Ourenterprisecompetencymodelrepresentsourglobalstandardfortheleadership skillsandbehaviorsthatwedevelopinouremployeessowecanachieveourvision.Thismodel,whichestablishesclear expectationsthatalignwithourvaluesandstrategiesandincreasesfairness,consistencyandtransparencyinhowwe hire/select,promote,developandrewardourtalent,wasembeddedintokeytalentprocessesandpracticesin2025, includingperformancemanagement,developmentandlearning.

Compensation&Benefits

Ourtotalrewardsphilosophyistooffermarket-based,competitivewagesandbenefitsinthemarketswherewe operate.Allofouremployeeswerepaidatleasttheapplicablelegalminimumwage,andover98%ofouremployees werepaidabovetheapplicablelegalminimumwage,atyear-end2025.Payisgenerallypositionedaroundthemarket median,withvarianceslargelybasedonknowledge,skills,yearsofexperienceandconsistentwithour pay-for-performancephilosophy.Inadditiontobasewages,ourcompensationandbenefitprograms—whichvaryby region,countryandbusinessunit—includeshort-termincentives(generallypaidincash),long-termincentives(e.g., cash-orstock-basedawards),employeebenefitandretirementplans,healthcareandinsurancebenefits,healthsavings andflexiblespendingaccounts,paidtimeoff,leaveofabsencebenefits,andemployeeassistanceprograms.Weofferthe opportunityforflexibleworkarrangementsforcertainofouroffice-basedworkforcetoprovidethemwithflexibilityto balancetheirworkandpersonalcommitments,whileensuringthatwemeettheneedsofourbusiness.Ourinformation technologyinfrastructure,informationsecurityprotocolsanddigitaltoolssupportemployeeefficiencyandeffectiveness wherevertheywork.

Payequityisanimportantpartofourglobalpayplanningandpractices.Eachyear,weengageanindependent thirdpartytoevaluateinternalpayequity,makingmerit-basedpayadjustmentswhereappropriate.In2025,we reviewedpay,includingbase,annual,andlong-termincentives.Wecontinuetoenhanceourmanagereducation,tools andprocessestoprovidefairandequitablepay.

EmployeeEngagement

Ahighlyengagedworkforcenotonlyallowsustoattractandretaintop-tiertalentbutalsotranslatesdirectlyinto betterbusinessoutcomesthatbenefitallourstakeholders.Becausewebelievethatanengagedworkforcepromotes retentionandminimizesemployeeturnover,weannuallyconductaglobalemployeeexperiencesurvey,whichin2025 AveryDennisonCorporation | 2025AnnualReport 5

leveragedforthethirdyearamodernizedplatformandprocess,providingreal-timeaccesstoresults,improvedanalytics andabilitytoconnectdatathroughouttheemployeeexperience,moremeaningfulcomparisonstoexternalbenchmarks, andongoingpulsesurveycapability.Ourbusinessandfunctionalteamsusetheanonymizedresultsofthissurveyto identifypotentialopportunitiesforimprovement,implementingactionplansasappropriate.Whileemployeeengagement istheresultofmanyfactors,webelieveourstrong,encouragingandopenleadership,aswellasourcontinuedeffortsto fosteracollaborative,supportiveculture,hasledtostrongworkforceengagement.

WorkforceHealth&Safety

Safetyisoneofourhighestpriorities,andweworktoensureourmanufacturingfacilities,distributioncentersand administrativeofficesfocusonsafety,sothatanyoneworkinginorvisitingoneofourlocationsfeelsandremainssafe frominjury.OurglobalRecordableIncidentRateof0.17in2025wassignificantlylowerthantheOccupationalSafety andHealthAdministrationmanufacturingindustryaverageof2.7in2024(themostrecentavailableindustryaverage).

WorkplaceCulture

Webelieveourtalentisoneofourgreatestcompetitiveadvantages.Wearededicatedtostrengtheningour high-performance,values-basedculture—anenvironmentgroundedinfairnessthatprovidesourteammembers opportunitiestothrive.Byfosteringaworkplacethatembracesamixofskills,experiencesandbackgrounds,we empowerouremployeestobeincreasinglyproductive,innovativeandengaged.

ManufacturingandEnvironmentalMatters

Weusevariousrawmaterials–primarilypaper,plasticfilmsandresins,aswellasspecialtychemicalspurchased fromvariouscommercialandindustrialsources–thatcanbesubjecttosignificantpricefluctuations.Althoughshortages canoccurfromtimetotime,theserawmaterialsaregenerallyavailable.

Weproducethemajorityofourself-adhesivematerialsusingwater-basedemulsionandhot-meltadhesive technologies.Aportionofourmanufacturingprocessforself-adhesivematerialsutilizesorganicsolvents,which,unless controlled,couldbeemittedintotheatmosphereorcontaminatesoilorgroundwater.Emissionsfromtheseoperations containsmallamountsofvolatileorganiccompounds,whichareregulatedbyfederal,state,localandforeign governments.Inconnectionwiththemaintenanceandacquisitionofcertainmanufacturingequipment,weinvestin solventcaptureandcontrolunitstoassistinregulatingtheseemissions.

Wehavedevelopedadhesivesandadhesiveprocessingsystemsthatminimizetheuseofsolvents.Emulsion adhesives,hot-meltadhesives,andsolventlessandemulsionsiliconesystemshavebeeninstalledinmanyofour facilities.

Basedoncurrentinformation,wedonotbelievethatthecostofcomplyingwithapplicablelawsregulatingthe emissionordischargeofmaterialsintotheenvironment,orotherwiserelatingtotheprotectionoftheenvironment,will haveamaterialeffectuponourcapitalexpenditures,financialposition,resultsofoperationsorcompetitiveposition.

Forinformationregardingourpotentialresponsibilityforcleanupcostsatcertainhazardouswastesites,see Note8,“Contingencies,”intheNotestoConsolidatedFinancialStatements.

AvailableInformation

OurAnnualReportsonForm10-K,QuarterlyReportsonForm10-Q,CurrentReportsonForm8-Kand amendmentstothosereportsfiledwith,orfurnishedto,theSecuritiesandExchangeCommission(“SEC”)pursuantto Section13(a)or15(d)oftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),areavailablefreeof chargeonourinvestorwebsiteatwww.investors.averydennison.comassoonasreasonablypracticableaftertheyare electronicallyfiledwithorfurnishedtotheSEC.Thiswebsiteaddressisnotintendedtofunctionasahyperlinkandthe informationlocatedthereisnot,norshoulditbeconsidered,partofthisreportorincorporatedbyreferenceintothis report.Wealsomakeavailableontheinvestorssectionofourwebsiteunder“GovernanceDocuments”thefollowing documentsascurrentlyineffect:(i)AmendedandRestatedCertificateofIncorporation,asamended;(ii)Amendedand RestatedBylaws;(iii)CorporateGovernanceGuidelines;(iv)CodeofConduct,whichappliestoourdirectors,officersand employees;(v)CodeofEthicsforourChiefExecutiveOfficerandSeniorFinancialOfficers;(vi)chartersoftheAudit, TalentandCompensation,Governance,Cybersecurity,andFinanceCommitteesofourBoardofDirectors;and(vii)Audit 6 2025AnnualReport | AveryDennisonCorporation

CommitteeComplaintProceduresforAccountingandAuditingMatters.Thesedocumentsarealsoavailablefreeof chargeuponwrittenrequesttoourCorporateSecretary,AveryDennisonCorporation,8080NortonParkway,Mentor, Ohio44060.

ReportsfiledwithorfurnishedtotheSECmaybeviewedatwww.sec.gov.

Item1A.RISKFACTORS

Theriskfactorsdescribedinthissectioncouldmateriallyadverselyaffectourbusiness,includingourresultsof operations,cashflowsandfinancialcondition,andcausethevalueofoursecuritiestodecline.Thislistofrisksisnot exhaustive.Ourabilitytoattainourgoalsandobjectivesisdependentonnumerousfactorsandrisks,including,butnot limitedto,themostsignificantonesdescribedinthissection.

RiskRelatedtoOurInternationalOperations

Thedemandforourproductsisimpactedbytheeffectsof,andchangesin,worldwideeconomic,geopolitical,socialand laborconditions,whichhavehadinthepastandcouldinthefuturehaveamaterialadverseeffectonourbusiness.

Wehaveoperationsinmorethan50countriesandourdomesticandinternationaloperationsarestrongly influencedbymattersbeyondourcontrol,includingchangesineconomic,geopolitical,socialandlaborconditions,tax laws,andU.S.andinternationaltraderegulations(includingtariffs),aswellastheimpactthesechangeshaveondemand forourproducts.In2025,approximately69%ofournetsalesoriginatedoutsidetheU.S.

Macroeconomicdevelopmentssuchasimpactsfromslowergrowthinthegeographicregionsinwhichwe operate;inflationresultingfrom,amongotherthings,increasedrawmaterial,energyandfreightcosts;laborshortages; geopolitical,social,supplychainandotherdisruptions;epidemics,pandemicsorotheroutbreaksofillness,diseaseor virus;anduncertaintyinglobalcreditorfinancialmarketscouldresultinamaterialadverseeffectonourbusinessasa resultof,amongotherthings,lowerconsumerspending,fluctuationsinforeigncurrencyexchangerates,reducedasset valuations,diminishedliquidityandcreditavailability,volatilityinsecuritiesprices,andcreditratingdowngrades.

Trade-relateduncertaintyremainselevatedbetweentheU.S.andotherregionsandcountries,includingCanada, Mexico,China,IndiaandtheEuropeanUnion.In2025,theU.S.implementeda10%globalbaselinetariffrateonnearlyall imports,withhigherratesoncertaingoods.Additionally,itappliedsignificanttariffsongoodsfromCanada,Mexico, ChinaandtheEuropeanUnion,eachofwhichannouncedreciprocaltariffs.Theamountofthesetariffsortheclassesof goodsonwhichtheyareappliedcontinuestoevolveandcouldsignificantlychange.TheU.S.governmentcontinuesto negotiatewithcountriesregardingthetariffs.InJuly2025,theU.S.andtheEuropeanUnionagreedtoaframeworkfora tradedealthatincludedabaselinetariffrateof15%onmostgoodsimportedfromtheEuropeanUnionintotheU.S. Whilethedirectimpactsonouroperationsafterourmitigatingactionshavenotbeensignificant,ourbusinesscouldbe materiallyadverselyimpactedbychangesinU.S.andnon-U.S.tradepolicies,includingpotentialmodificationstoexisting tradeagreementsandadditionaltariffsorotherrestrictionsonfreetrade,impactingourrawmaterialsorfinished products.Theindirectimpactondemandforourproductsandsolutionsasaresultoftheseevents,whichhaveresulted insofterconsumervolumes,continuestobeuncertainandelevated.Weestimatethattheindirectimpactoftariffs resultedinanaggregatelowsingledigitratedecreaseinsalesinouroverallapparelcategoriesoverthesecond,thirdand fourthquartersof2025.OnFebruary20,2026,theU.S.SupremeCourtissuedadecisionholdingthattheInternational EmergencyEconomicPowersActdoesnotauthorizethePresidenttoimposetariffs.Whilethismayprovideimmediate relieffromthesespecificduties,therewilllikelybeaperiodoftradepolicyinstability.Furtherdevelopmentsin internationaltraderelations,includingincreaseddeglobalization,couldhaveamaterialadverseeffectonourbusiness.

Inaddition,businessandoperationaldisruptionsordelayscausedbygeopolitical,socialoreconomicinstabilityand unrest–suchasrecentcivil,politicalandeconomicdisturbancesinSyria,Yemen,Iran,Turkey,NorthKorea,andBangladesh andtherelatedimpactonglobalstability,theRussia-Ukrainewar,theIsrael-Hamaswar,theU.S.’sengagementinVenezuela, terroristattacksandthepotentialforotherhostilitiesornaturaldisastersinvariouspartsoftheworld–couldhaveamaterial adverseeffectonourbusiness.SincetheRussia-Ukrainewarbeganin2022,wehavemaintainedourpositionofnotshipping productstotheRussianmarket.Theimpactofthecontinuingwar,aswellasanyfurtherretaliatoryactionstakenbyRussia, theU.S.,theEuropeanUnionandotherjurisdictions,isunknownandcouldhaveamaterialadverseeffectonourbusiness.In addition,oursalesinIsraelhavenotrecoveredsincethebeginningoftheIsrael-Hamaswarinlate2023,withsales representinglessthan1%ofourtotalnetsalesin2025.Thecontinuedimpactofthiswarandanyrelatedhostilitiesinthe MiddleEastregionorelsewhereisunknownandcouldhaveamaterialadverseeffectonourbusiness.

Wearenotabletopredictthedurationandseverityofadverseeconomic,geopolitical,social,orlaborconditionsin theU.S.orothercountries.

Foreigncurrencyexchangerates,andfluctuationsinthoserates,affectourbusiness.

Themajorityofournetsalesin2025wasdenominatedinforeigncurrencies.Ourfinancialresultsaretherefore subjecttotheimpactofcurrencytranslation,whichmaybematerial.Overall,ourforeigncurrencytransactionexposureis largelymitigatedbecausethecostsofourproductsaregenerallydenominatedinthesamecurrenciesinwhichtheyare sold.

Fluctuationsinforeigncurrencyexchangerates,suchastheunfavorableimpactsassociatedwiththeIndianrupee andBrazilianrealandfavorableimpactsassociatedwiththeeuroin2025,mayresultinavarietyofnegativeeffects, includinglowernetsales,increasedcosts,lowergrossmargins,increasedallowanceforcreditlossesand/orwrite-offsof accountsreceivable,andrequiredrecognitionofimpairmentsofcapitalizedassets,includinggoodwillandother intangibleassets.Foreigncurrencytranslationincreasedour2025netsalesbyapproximately$29millioncomparedto theprioryear.

Wemonitorourforeigncurrencyexposuresandsometimesusehedginginstrumentstomitigatesomeofour transactionalexposuretochangesinforeigncurrencies.Theeffectivenessofourhedgesinpartdependsonourabilityto accuratelyforecastourfuturecashflows,whichisparticularlydifficultduringperiodsofuncertaindemandforour productsandservicesandvolatileforeigncurrencyexchangerates.Ourhedgingactivitiesmayoffsetonlyaportion,or noneatall,ofthematerialadversefinancialeffectsofunfavorablemovementsinforeigncurrencyexchangeratesover thelimitedtimethehedgesareinplaceandwemayincursignificantlossesfromtheseactivities.

OuroperationsandactivitiesoutsideoftheU.S.subjectustorisksdifferentfromandpotentiallygreaterthanthose associatedwithourdomesticoperations.

AsubstantialportionofouremployeesandassetsarelocatedoutsideoftheU.S.and,in2025,approximately 69%ofournetsalesweregeneratedoutsideoftheU.S.Internationaloperationsandactivitiesinvolverisksthatare differentfromandpotentiallygreaterthantheriskswefaceinourdomesticoperations,includingchangesinforeign geopolitical,regulatoryandeconomicconditions,whethernationally,regionallyorlocally;changesinforeigncurrency exchangerates;differinglevelsofinflation;reducedprotectionofintellectualpropertyrights;lawsandregulations impactingourabilitytorepatriateforeignearnings;challengescomplyingwithforeignlawsandregulations,including thoserelatingtosales,operations,taxes,employmentandlegalproceedings;establishingeffectivecontrolsand procedurestomonitorcompliancewithU.S.lawsandregulations;differencesinlendingpractices;andchallengeswith complyingwithapplicableexportandimportcontrollawsandregulations.

Ourstrategyincludescontinuingtogrowinemergingmarkets,whichexposesustolessstablegeopolitical conditions,civilunrest,economicvolatility,andotherrisksapplicabletooperatingintheseregions.

Approximately40%ofournetsalesin2025originatedinemergingmarkets.Theprofitablegrowthofour businessinemergingmarketsisanimportantpartofourlong-termgrowthstrategyandourregionalresultshaveand canfluctuatesignificantlybasedontheireconomicconditionsandothereventsthatoccurmorefrequentlyinthese marketsandcansignificantlyandadverselyimpactouroperations(suchaspoweroutages,civilunrestorotherhostilities, andlaborstoppages).Ourbusinessoperationshavebeenandmaycontinuetobeadverselyaffectedbythecurrentand futurepoliticalenvironmentinChina,bothrelatingtoin-countrychangesinlawsandregulationsortheinterpretation thereof,aswellasaresultofitsresponsetotariffsbytheU.S.governmentongoodsimportedfromChina,tariffsby ChinaonU.S.goods,theincreasinguseofeconomicsanctionsandexportcontrolrestrictions,andtensionsrelatedto HongKongandTaiwan.

Ifweareunabletosuccessfullyexpandourbusinessinemergingmarketsorachievethereturnoncapitalwe expectfromourinvestmentsinthesecountries,ourfinancialperformancewouldbemateriallyadverselyaffected.In additiontotherisksapplicabletoourinternationaloperations,factorsthathavenegativelyimpactedouroperationsin emergingmarketsfromtimetotimeincludethelessestablishedorreliablelegalsystemsandpossibledisruptionsdueto unstablegeopoliticalconditions,civilunrestoreconomicvolatility.Thesefactorscanhaveamaterialadverseeffectonour businessintheaffectedmarketsbydecreasingconsumerpurchasingpower,reducingdemandforourproductsor increasingourcosts.

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RisksRelatedtoOurBusiness

Asamanufacturer,oursalesandprofitabilitydependupontheavailabilityandcostofrawmaterialsandenergy, whichmaybesubjecttosignificantpricefluctuations,andourabilitytocontroloroffsetincreasesinrawmaterial andlaborcosts.Rawmaterialandfreightcostincreaseshaveimpactedourbusiness.

Rawmaterialsrepresentasignificantportionofourcostsandacriticalfactorinourprofitability.Themarketsfor therawmaterialsusedinourbusinessescanbevolatile,impactingavailabilityandpricing.Additionally,energycostscan bevolatileandunpredictable.Shortagesandinflationaryorotherincreasesinthecostsofrawmaterials,labor,freight andenergyhaveoccurredinthepast,andcouldrecur.Inpastyears,weimplementedtargetedpriceincreasesinour MaterialsGroupreportablesegmenttoaddressrawmaterialinflation;morerecently,weimplementeddeflation-related pricereductionsasaresultoflowerrawmaterialcosts.Ifweexperienceinflationaryheadwindsinthefuture,wemay implementsimilarpricingactions.Ourperformancedependsinpartonourabilitytooffsetincreasedrawmaterialcosts byraisingoursellingpricesorre-engineeringourproducts.

Itisalsoimportantforustoobtaintimelydeliveryofmaterials,equipmentandotherresourcesfromsuppliers,and tomaketimelydeliverytocustomers.Wemayexperiencesupplychaindisruptionsduetonaturalandotherdisastersor otherevents,orourexistingrelationshipswithsupplierscoulddeteriorateorendinthefuture.Whileweundertake businesscontinuityplanningandtakeactionstomitigatethesedisruptionswhentheyoccur,suchassourcingfromother regionsorsuppliers,anydisruptioninoursupplychaincouldnegativelyimpactoursalesandprofitability,andany sustainedinabilitytoobtainadequatesuppliescouldhaveamaterialadverseeffectonourbusiness.

Weareaffectedbychangesinourmarketsduetocompetitiveconditions,technologicaldevelopments,lawsand regulations,andcustomerpreferences.Ifwedonotcompeteeffectivelyorrespondappropriatelytothesechanges,it couldreducedemandforourproductsandsolutions,orwecouldlosemarketshareorreduceoursellingpricesto maintainmarketshare,anyofwhichcouldmateriallyadverselyaffectourbusiness.

Growingtheproportionofourportfolioinhigh-valuecategoriesthatservemarketsthataregrowingfasterthan grossdomesticproduct,representlargepoolsofpotentialprofitandleverageourcorecapabilitiesisanimportantpartof ourlong-termgrowthstrategy.High-valueproductsandsolutionsincludeourspecialtyanddurablelabelmaterials, graphicsandreflectivesolutions,industrialandmedicaltapes,andtradeandspecialtyadhesives;intelligentlabelsthat useRFIDtagsandinlays;shelf-edgepricing,productivityandconsumerengagementsolutions;andexternal embellishments.Wefacetheriskthatexistingornewcompetitors,whichincludesomeofourcustomers,distributorsand suppliers,willexpandinourkeymarketsegmentsordevelopnewtechnologies,includinginhigh-valuecategories, enhancingtheircompetitivepositionrelativetoours.Competitorsalsomaybeabletoofferproducts,services,lower pricesorotherincentivesthatwecannotorthat,tomaintainprofitability,wemaynotbeabletooffer.Therecanbeno assurancethatwewillbeabletocompetesuccessfullyagainstcurrentorfuturecompetitorsornewtechnologies.

Wearealsoexposedtochangesincustomerorderpatterns,suchaschangesinthelevelsofinventorymaintained bycustomersandthetimingofcustomerpurchasesandnewintelligentlabelprogramrollouts,whichareaffectedby announcedpricingactions,changesinourcustomerincentiveprograms,ourcustomers’abilitytoachieveincentive targets,aswellaschangesintradepolicy.Changesincustomers’preferencesforourproductscanalsodecrease demandforourproductsandhaveamaterialadverseeffectonourbusiness.InourSolutionsGroupreportablesegment, salesinouroverallapparelcategoriesdeclinedin2025asaresultoftariff-relateduncertainty.InourMaterialsGroup reportablesegment,assupplychainconstraintseasedin2022,customersincreasedinventorylevelsfollowingaperiod ofreducedavailability.Inthefourthquarterof2022,inventoriesdownstreamfromourcompanybegantounwindswiftly, resultinginlowerdemand.Thiscontinuedin2023,withvolumeimprovingsequentiallythroughoutthatyearand normalizingin2024.

Weareaffectedbychangesinourmarketsduetoincreasingenvironmentalregulationsandsustainabilitytrends.If wedonotrespondappropriatelytothesechanges,itcouldnegativelyimpactcustomerdemand,ourmarketshare andpricing,anyofwhichcouldmateriallyadverselyaffectourbusiness.Adverseweatherconditionsandnatural disasters,includingthoserelatedtotheimpactsofclimatechange,haveandcanadverselyaffectourbusiness.

Asubstantialamountofourlabelmaterialsissoldforuseinpackaginginthefood,beverage,andhomeand personalcaremarketsegments.Inrecentyears,therehasbeenanacceleratedfocusonsustainabilityandtransparencyin sustainabilityreporting,withgreaterconcernregardingclimatechangeandsingle-useplastics,corporatecommitments

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andincreasingstakeholderexpectationsregardingthereuseandrecyclabilityofplasticpackagingandrecycledcontent, andincreasedregulationinmultiplegeographiesregardingthecollection,recyclinganduseofrecycledcontent.Changes inconsumerpreferences,lawsandregulationsrelatedtotheuseofrawmaterialsandextendedproducerresponsibility rulesfocusedontheend-of-lifeofproducts,particularlyinEuropeandcertainstatesintheUnitedStates,presenttherisk ofreduceddemandforcertainofourproductsifcustomersseekdecorationtechnologyalternativestopressure-sensitive labeling,butalsotheopportunityforincreaseddemandforourmoresustainableproducts,asignificantfocusofour researchanddevelopmentandrelatedinnovationefforts.Wehaveestablishedstrategicinnovationplatformsand prioritiesfocused,amongotherthings,ondeliveringproductsandsolutionsthatadvancethecirculareconomy,reduce supplychainwasteandaddresstheneedforincreasedrecyclabilityofpackaging.Wehavemadesubstantialinvestments inoursustainability-drivenproducts,buttherecanbenoassurancethattheywillbesuccessful,andasignificant reductionintheuseofpackagingcouldmateriallyadverselyaffectdemandforourproducts.

Changesinsustainability-focusedregulationpresentarisktoourbusiness.InFebruary2026,theU.S.Environmental ProtectionAgencyrescindedits2009GreenhouseGasEndangermentFinding,whichservedasthefoundationforvarious regulationsofGHGemissions.Conversely,whilecurrentlyinastateofflux,reportingrequirementssuchastheEuropean Union’sCorporateSustainabilityReportingDirective,whichwillimposeadditionaldisclosurerequirementsforourcompany beginningin2028(basedon2027data),andthestateofCalifornia’sclimatereportingrequirementsareexpectedtoincrease theamountofsustainabilitydatawearerequiredtogenerate,audit,verifythroughthird-partiesanddisclose.Developments inregulatoryactionsregardingthesemattersarelikelytocontinueandmayrequireconflictingresponses,whichcoulddivert theattentionofmanagement.Inaddition,coststocomplywiththeseregulationsarelikelytogrowandanyfailuretomeetthe requirementsoftheseregulationscouldresultinfinesorotherpenalties.

Thescientificconsensusisthatemissionsofgreenhousegases(“GHG”)arealteringouratmosphereinwaysthat areadverselyaffectingglobalclimate.Thereiscontinuingconcernfrommembersofthescientificcommunityandthe generalpublicthatGHGemissionsandotherhumanactivitieswillcontinuecausingsignificantchangesinweather patternsandincreasethefrequencyorseverityofextremeweatherevents,includingdroughts,wildfiresandflooding. Thesetypesofextremeweathereventshaveandmaycontinuetoadverselyimpactus,oursuppliersandourcustomers, includingtheirabilitytopurchaseourproductsandourabilitytotimelyreceiveappropriaterawmaterialstomanufacture andtransportourproductsonatimelybasis.Theextentoftheimpactofclimatechangeonourbusinessisuncertain,as itwilldependonthelimitsimposedby,andtimingof,neworstricterlawsandregulations,morestringentenvironmental standardsandexpectations,andevolvingcustomerandconsumerpreferences,butitislikelytoincreaseourcostsand couldhaveamaterialadverseeffectonourbusiness.Afterpartneringwithathird-partyexperttoassessourdisclosures againsttherecommendationsregardingtheinformationthatcompaniesshoulddisclosetoallowtheirstakeholdersto assessandpricetheirclimate-relatedrisks,wehavepreliminarilyalignedourreportingwithFinancialStabilityBoard’s TaskForceonClimate-relatedFinancialDisclosuresrequirements.

Concernregardingclimatechangehasalsoledandislikelytocontinueleadingtoincreasingdemandsby legislatorsandregulators,customers,consumers,investors,employeesandnon-governmentalorganizationsfor companiestoreducetheirGHGemissions.Weexceededour2025sustainabilitygoaltoachievea26%absolute cumulativereductioninourGHGemissionsfromour2015baseline,deliveringanabsolutecumulativereductionof approximately60%.Aspartofourmoreambitious2030sustainabilitygoals,weareaimingby2030toreduceourScope 1and2GHGemissionsby70%comparedtoour2015baselineandworkwithoursupplychaintoreduceScope3GHG emissions.Wecouldfaceriskstoourreputation,investorconfidenceandmarketshareifweareunabletocontinue reducingourGHGemissionsatlevelssatisfactorytoourstakeholders.

Wehaverecentlyacquiredcompaniesandarelikelytoacquireothercompanies.Acquisitionscomewithsignificant risksanduncertainties,includingthoserelatedtointegration,technologyandemployees.

Todriveourstrategiestoincreasetheproportionofourbusinessfromhigh-valuecategories,enhanceour portfoliobygrowingourexistingbusinessesandexpandingintonewareas,andacceleratemarket-driveninnovation,we havemadeacquisitionsandarelikelytocontinueacquiringcompanies.In2025,weacquiredTaylorAdhesivesfor purchaseconsiderationofapproximately$390million.Thesuccessofanyacquisitiondependsontheabilityofthe combinedcompanytorealizetheanticipatedbenefitsfromcombiningourbusinesses.Realizingthesebenefitsdepends, inpart,onmaintainingadequatefocusonexecutingthebusinessstrategiesofthecombinedcompanyaswellasthe successfulintegrationofassets,operations,functionsandpersonnel.Wecontinuetoevaluateacquisitiontargetsand ensurewehaveapipelineofpotentialopportunities.

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Variousrisks,uncertaintiesandcostsareassociatedwithacquisitions.Effectiveintegrationofsystems,controls, employees,productlines,marketsegments,customers,suppliersandproductionfacilitiesandcostsavingscanbe difficulttoachieveandthesuccessofintegrationactivitiescanbeuncertain.Whilewehavenotexperiencedsignificant issueswithourrecentacquisitions,ifmanagementofourcombinedcompanyisunabletominimizethepotential disruptionofthecombinedcompany’songoingbusinessduringtheintegrationprocess,theanticipatedbenefitsofany acquisitionmaynotbefullyrealized.Inaddition,theinabilitytosuccessfullymanagetheimplementationofappropriate systems,policies,benefitsandcomplianceprogramsforthecombinedcompanycouldhaveamaterialadverseeffecton ourbusiness.Wemaynotbeabletoretainkeyemployeesofanacquiredcompanyorachievetheprojectedperformance targetsforthebusinessintowhichanacquiredcompanyisintegrated.Bothbeforeandaftertheclosingofanacquisition, ourbusinessandthatoftheacquiredcompanymaysufferduetouncertaintyordiversionofmanagementattention. Futureacquisitionscouldresultinincreaseddebt,dilution,liabilities,interestexpense,restructuringchargesand amortizationexpensesrelatedtointangibleassets.Therecanbenoassurancethatacquisitionswillbesuccessful, contributetoourprofitabilityordriveaccretivereturns.Further,wemaynotbeabletoidentifyadditionalvalue-accretive acquisitiontargetsthatcanadvanceourstrategiesorbeabletosuccessfullyexecuteadditionalacquisitionsinthefuture.

Asignificantconsolidationofourcustomerbasecouldnegativelyimpactourbusiness.

Asignificantconsolidationofourcustomerbasecouldnegativelyimpactourbusiness.In2025,nosinglecustomer represented10%ormoreofournetsales,withourcustomerbasehighlyfragmented.Inrecentyears,someofthe convertercustomersservedbyourMaterialsGroupreportablesegmenthaveconsolidatedandintegratedverticallyand someofourlargestcustomershaveacquiredcompanieswithsimilarorcomplementaryproductlines.Industry consolidationcouldcontinuetoincreasetheconcentrationofourbusinesswithourlargestcustomers.Further consolidationmayincreasepressurefromcustomersforustoloweroursellingprices.Whilewehavebeengenerally successfulatmanagingcustomerconsolidationsinthepast,increasedpricingpressuresfromourcustomerscouldhavea materialadverseeffectonourbusiness.

Becausesomeofourproductsaresoldbythirdparties,ourbusinessdependsinpartonthefinancialconditionof thesepartiesandtheircustomers.

Someofourproductsaresoldbythird-partydistributors.Someofourdistributorsalsomarketproductsthat competewithourproducts.Changesinthefinancialorbusinessconditions,includingeconomicweakness,markettrends orindustryconsolidation,orthepurchasingdecisionsofthesedistributorsortheircustomers,couldmateriallyadversely affectourbusiness.

Ourreputation,sales,andearningscouldbemateriallyadverselyaffectedifthequalityofourproductsandservices doesnotmeetcustomerexpectations.Inaddition,productliabilityclaimsorregulatoryactionscouldmaterially adverselyaffectourbusinessandreputation.

Therearetimeswhenweexperienceproductqualityissuesresultingfromdefectivematerials,manufacturing, packagingordesign.Theseissuesareoftendiscoveredbeforeshipping,causingdelaysinshipping,delaysinthe manufacturingprocess,or,occasionally,cancelledorders.Whenissuesarediscoveredaftershipment,theymayresultin additionalshippingcosts,discounts,refundsorlossoffuturesales.Bothpre-shippingandpost-shippingqualityissues couldhaveamaterialadverseeffectonourbusinessandnegativelyimpactourreputation.

Claimsforlossesorinjuriespurportedlycausedbysomeofourproductsariseintheordinarycourseofour business.Althoughwemaintainproductliabilityinsurancecoverage,claimsaresubjecttoadeductibleormaynotbe coveredunderthetermsofthepolicy.Inadditiontotheriskofsubstantialmonetaryjudgmentsandpenaltiesthatcould haveamaterialadverseeffectonourbusiness,productliabilityclaimsorregulatoryactionscouldresultinnegative publicity,reputationalharmorlossofbrandvalue.Wealsocouldberequiredtorecallandpossiblydiscontinuethesaleof productsdeemedtobedefectiveorunsafe,whichcouldresultinadversepublicityandsignificantexpense.

Changesinourbusinessstrategiesandtherestructuringofouroperationsaffectourcostsandtheprofitabilityofour businesses.Inaddition,ourprofitabilitymaybemateriallyadverselyaffectedifwegeneratelessproductivity improvementfromourrestructuringandothercostreductionactionsthananticipated.

Asourbusinessenvironmentchanges,wehaveadjustedandmayneedtofurtheradjustourbusinessstrategies, restructureouroperationsorparticularbusinesses,oradjustouroperationalfootprint.Aswecontinuetodevelopand AveryDennisonCorporation | 2025AnnualReport 11

adjustourgrowthstrategies,wemayinvestinnewbusinessesthathaveshort-termreturnsthatarenegativeorlowand whoseultimatebusinessprospectsareuncertainorcouldbeunprofitable.

Weengageinrestructuringactionsfromtimetotimetoreduceourcostsandincreaseefficiencies.Weexpended approximately$47millionin2025comparedtoapproximately$42millionrelatedtorestructuringactionsin2024.Our restructuringactionsin2025relatedtovariouslocationsacrossourcompanyinbothourSolutionsGroupandMaterials Groupreportablesegments.Wehadincrementalsavingsfromrestructuringactions,netoftransitioncosts,ofmorethan $60millionin2025.Aspartofourcontinuousefficiencyimprovementculture,weintendtocontinueoureffortstoreduce costs,whichhaveinthepastincluded,andmaycontinuetoinclude,facilityclosuresandsquarefootagereductions, headcountreductions,organizationalrestructuring,processstandardization,andmanufacturingrelocation.Forexample, in2025,wecompletedaEuropeanfootprintoptimizationinBelgiumforourMaterialsGroupreportablesegment,andin 2024,weconsolidatedourSolutionsGroupreportablesegment’soperationsinMexico.Thesuccessoftheseeffortsis notassuredandtargetedsavingsmaynotberealized.Inaddition,costreductionactionscanresultinrestructuring chargesandcouldexposeustoproductionrisk,lossofsalesandemployeeturnover.Wecannotprovideassurancethat wewillachievetheintendedresultsofanyofourrestructuringandothercostreductionactions,whichinvolve operationalcomplexities,consumemanagementattentionandrequiresubstantialresourcesandeffort.Ifwefailto achievetheintendedresultsofsuchactions,ourcostscouldincrease,ourassetscouldbeimpaired,andoursavingsfrom theseactionscouldbelowerthanexpected.

Ourabilitytodevelopandsuccessfullymarketnewproductsandapplicationsimpactsourcompetitiveposition.

Thetimelyintroductionofnewproductsandimprovementstocurrentproductshelpsdetermineoursuccess. Manyofourcurrentproductsaretheresultofourresearchanddevelopmentefforts,forwhichweexpensed$137million in2025.Theseeffortsaredirectedprimarilytowarddevelopingnewproductsandsolutionsandoperatingtechniques andimprovingproductperformance,oftenincloseassociationwithourcustomersorendusers.Theseeffortsinclude patentandproductdevelopmentworkrelatingtoprintingandcoatingtechnologies,aswellasadhesive,releaseandink chemistriesinourMaterialsGroupreportablesegment.WefocusonresearchprojectsrelatedtoRFID,external embellishmentsanddigitalsolutionsinourSolutionsGroupreportablesegment.Additionally,ourresearchand developmenteffortsincludesustainableinnovationanddesignofproductsthatincreasetheuseofrecycledcontent, reducewaste,extendlifeorenablerecycling.Researchanddevelopmentrequiresinnovationandanticipationofmarket trends,whichmeansthatthecostsoftheseexpendituresmaynotberecoveredthroughadditionalsales.Wecouldfocus onproductsthatultimatelyarenotacceptedbycustomersorendusersorwecouldexperiencedelaysintheproduction orlaunchofnewproductsthatcouldcompromiseourcompetitiveposition.

Ourinfrastructureneedsimpactourbusinessandexpenditures.

Wecontinuetoinvestinourlong-termgrowthandmarginexpansionplans,withapproximately$200millionin capitalexpenditures,includingfixedassetsandinformationtechnology,in2025.Wemaynotbeabletorecoupthecosts ofourinfrastructureinvestmentsifactualdemandisnotasweanticipate.In2025,weopenedourfirstRFIDinlayand labelproductionsiteinIndia.Additionally,inrecentyears,weexpandedourMaterialsGroup’smanufacturingcapabilities inBrazil,France,India,ChinaandOhio;movedourSolutionsGroup’sVietnambusinessintoanew,expandedfacility;and madeadditionalinvestmentsinbothcapacityandbusinessdevelopmentgloballyforourIntelligentLabelsplatform. Infrastructureinvestments,whicharelong-terminnature,maynotgeneratetheexpectedreturnduetochangesinthe marketplace,unanticipatedchallengesinexecution,andotherfactors.Significantchangesfromourexpectedneedfor and/orreturnsonourinfrastructureinvestmentscouldmateriallyadverselyaffectourbusiness.

Difficultyinthecollectionofreceivablesasaresultofeconomicconditionsorothermarketfactorscouldhavea materialadverseeffectonourbusiness.

Althoughwehaveprocessestoadministercreditgrantedtocustomersandbelieveourallowanceforcreditlosses isadequate,wehaveinthepasthadtoincreasetheallowancedueto,amongotherthings,epidemics,pandemicsor otheroutbreaksofillness,supplychainchallenges,regulatoryrestrictionsandinflationarypressures,andinthefuture mayexperiencelossesasaresultofourinabilitytocollectsomeofouraccountsreceivable.Acustomer’sfinancial difficultiesarelikelytoresultinreducedbusinesswiththatcustomer.Wemayalsoassumehighercreditriskrelatingto receivablesofacustomerexperiencingfinancialdifficulty.InJanuary2026,alargecustomerofourMaterialsGroup reportablesegmentfiledforprepackagedChapter11bankruptcyprotection;wecurrentlyexpecttocollectonour 12 2025AnnualReport | AveryDennisonCorporation

prepetitionoutstandingreceivablesfromthiscustomer.Ifthesedevelopmentsweretooccurwidelyinourcustomerbase, ourinabilitytocollectonouraccountsreceivablecouldsubstantiallyreduceourcashflowsandincomeandhavea materialadverseeffectonourbusiness.

Thereisarapidlyevolvingawarenessandfocusfromcertainstakeholders,includingourinvestors,customersand employees,withrespecttoourcompany’ssustainabilityandgovernancepractices,whichcouldaffectourbusiness.

Investorandsocietalexpectationswithrespecttosustainabilityorgovernancematterscontinuetoevolve,withsome stakeholdersseekingcompaniestodemonstrateprogresswithrespecttoenvironmentalstewardship,humancapital, corporategovernance,supportforourcommunities,andtransparency,andotherstakeholderssuggestingthatcompanies focusondeliveringfortheirstockholderstotheexclusionoffocusintheseotherareas.Afailuretoadequatelymeetevolving stakeholderexpectationsandtimelycomplywithcompetingregulatoryrequirementsatthefederal,stateandlocallevels couldresultinlossofbusiness,dilutedmarketvaluation,aninabilitytoattractandretaincustomersandpersonnel,increased negativeinvestorsentimenttowardusand/orourcustomersandthediversionofinvestmenttootherindustries,whichcould haveanegativeimpactonourstockpriceandaccesstoandcostofcapital.

RisksRelatedtoInformationTechnology

Significantdisruptiontotheinformationtechnologyinfrastructurethatstoresourinformationandrunsour operationscouldmateriallyadverselyaffectourbusiness.

Werelyontheefficientanduninterruptedoperationofalargeandcomplexinformationtechnologyinfrastructureto linkourglobalbusiness.Likeallinformationtechnologysystems,oursaresusceptibletoanumberofrisksincluding,butnot limitedto,damageorinterruptionsresultingfromobsolescence,naturaldisasters,powerfailures,humanerror,viruses,social engineering,phishing,ransomwareorothermaliciousattacksandcybersecurityevents.Weupgradeandinstallnewsystems, which,ifinstalledorprogrammedincorrectlyoronadelayedtimeframe,couldcausedelaysorcancellationsofcustomer orders,impedethemanufactureorshipmentofproducts,ordisrupttheprocessingoftransactions.Wehavecontinuedto implementmeasurestomitigateourriskrelatedtosystemandnetworkdisruptions,butifasignificantdisruptionwereto occur,wecouldincurlossesandremediationcoststhatcouldhaveamaterialadverseeffectonourbusiness.

Additionally,werelyonservicesprovidedbythird-partyvendorsforcertaininformationtechnologyprocesses, includingsysteminfrastructuremanagement,applicationmanagement,andsoftwareasaservice.Whilewehavematured ourcybersecurityduediligenceprocess,thisrelianceonthirdpartiesmakesouroperationsvulnerabletoafailurebyanyone ofthesevendorstoperformadequatelyormaintaineffectiveinternalcontrols.

Cybersecurityorothersecuritybreachescouldcompromiseourinformationandexposeustoliability,whichcould haveamaterialadverseeffectonourbusinessandreputation.

Wemaintaininformationnecessarytoconductourbusinessindigitalform,whichisstoredindatacentersandonour networksandthird-partycloudservices,includingconfidentialandproprietaryinformationaswellaspersonalinformation regardingourcustomersandemployees.Thesecuremaintenanceofthisinformationiscriticaltoouroperations.Data maintainedindigitalformandoncloudservicesissubjecttotheriskofintrusion,tamperingandtheft.Wedevelopand maintainsystemsandprocessesatsignificantcosttopreventthisfromoccurring,andconductongoingmonitoringand updatingastechnologieschangeandeffortstoovercomesecuritymeasuresbecomemoresophisticated.Weexperience non-materialcybersecurityeventseachyearthatareescalatedthroughourdocumentedandtestedsecurityincidentresponse plan,andalthoughwehavenotexperiencedasignificantbreachinrecentyears,thepossibilityofintrusion,tamperingand theftcannotbeeliminatedentirely.Ourinformationtechnologyandinfrastructurearevulnerabletoattacksbythreatactorsor systemcompromisesduetoemployeeerror,malfeasanceorotherdisruptions,andthethreatlandscaperemainschallenging withourdigitalbusinesstransformation,remoteorhybridemployees,theincreasinguseofartificialintelligence(“AI”),and interconnectedsupplychainsexpandingtheriskofattack.ThreatactorsareincreasinglyleveragingAIforcyberattacks,and ourincreasinguseofAIcarriesrisksrelatedtodatasecurity,privacyevents,andpotentialalgorithmicbias.TheseAIrisks couldleadtooperationaldisruptions,regulatoryinvestigationsoractions,datasecurityeventsandpotentialfinancialloss.

Wealsoperformcybersecurityduediligenceandmitigateidentifiedrisksduringourduediligenceprocessrelated topotentialacquisitions;however,thereisstillariskthatarecentorfutureacquisitionexperiencesaneventthatcould leadtoabreachbeforerisksareabletobemitigated.Additionally,weprovideconfidential,proprietaryandpersonal informationtothirdpartieswhenitisnecessarytopursuebusinessobjectives.Whileweobtainwrittenagreementsand

assurancesthatthesethirdpartieswillprotectthisinformationand,whereappropriate,assesstheprotectionsutilizedby thesethirdparties,weareawareofsuppliersinourecosystemwhohaveexperiencedsecurityevents,andthereisarisk thatconfidentialityofdataheldbythirdpartiesmaybecompromised.

Breachesorattackscancompromiseournetwork,thenetworkofathirdpartytowhomwehavedisclosed confidential,proprietaryorpersonalinformation,adatacenterwherewehavestoredsuchinformationorathird-party cloudserviceprovider,andtheinformationstoredtherecouldbeaccessed,publiclydisclosed,lostorstolen.Anyaccess, disclosureorlossofinformationcoulddisruptouroperations,impairourabilitytoconductbusiness,resultinlegalclaims orproceedings,damageourreputation,orresultinthelossordiminishedvalueofprofitableopportunitiesandthelossof revenueasaresultofunlicenseduseofourintellectualproperty.Contractualprovisionswiththirdparties,includingcloud serviceproviders,substantiallylimitourabilitytofullyrecoverthesepotentiallosses.Ifthepersonalinformationofour customersoremployeesweretobemisappropriated,wecouldincurcoststocompensateourcustomersoremployeesor paydamagesorfinesasaresultoflitigationorregulatoryactionsandourreputationwithourcustomersandemployees couldbeinjured,resultinginlossofbusinessordeclineinemployeemorale.Dataprivacylegislationandregulationhave beenincreasinginrecentyears–including,forexample,theGeneralDataProtectionRegulationintheEU,thePersonal InformationProtectionLawinChina,theGeneralDataProtectionLawinBrazilandthestateofCalifornia’sPrivacy RightsAct–andalthoughwehavemadereasonableeffortstocomplywithallapplicablelawsandregulations,therecan benoassurancethatwewillnotbesubjecttoregulatoryactionintheeventofadataprivacyviolation.

Cybersecurityriskandransomwareattacksoncompaniescontinuetosignificantlyincreaseandtherecanbeno assurancethatwehavefullyprotectedourinformation,thatthirdpartiestowhomwehavedisclosedsuchinformationor withwhomwehavestoredsuchinformation(indatacentersandinthecloud)havetakeneffectiveprecautions,orthat wewillnotexperiencehackingorintrusionattemptsthatcouldhaveamaterialadverseeffectonourbusiness.Inaddition tomaintainingacomprehensivesetofendpoint,network,emailandcloudsecuritysolutions,wecontinuetotakestepsto furtherimprovethesecurityofournetworksandsystems,includingmaturingourzerotrustarchitectureandstrategy; enhancingandtestingoursecurityincidentresponseplan;maturingouroperationaltechnologysecurityprogram; implementingmorerobustcloudsecurityacrossmultipleplatforms;establishingAIpolicies,governanceandrisk management;maturingourdatalosspreventionframeworktoprotectourcriticaldata,networkandsiteaccesscontrols; increasingnetworksegmentation;enhancingourfocusonthirdpartyriskmanagement;andimprovingourcapabilities basedonthreatintelligenceandthepublicizedincidentsexperiencedbyothercompanies,aswellasonesthatwehave experienceddespitetheirminimaloperationalorfinancialimpacttodate.

RisksRelatedtoIncomeTaxes

Changesinourtaxratesaffectourbusiness.

Oureffectivetaxrateisaffectedbychangesinthemixofearningsincountrieswithdifferingstatutorytaxrates, changesinthevaluationofdeferredtaxassetsandliabilities,andchangesintaxlawsandregulationsortheir interpretation.Theimpactofthesechangescouldmateriallyimpactourbusiness.

Legislationimplementingchangesintaxationofbusinessactivities,adoptionofothercorporatetaxpolicies,orother changesintaxlegislationimpactourbusiness.

Thepreventionofbase-erosionandtaxtransparencycontinuetobehighprioritiesformanytaxjurisdictions worldwide.Asaresult,policiesregardingcorporateincomeandothertaxesremainunderheightenedscrutinyglobally. Duetothesizeofourinternationalbusinessactivities,anysubstantialchangeincorporatetaxpolicies,taxenforcement activitiesorlegislativeorregulatorytax-relatedactionscouldhaveamaterialadverseeffectonourbusiness.

Theamountofincometaxeswepayissubjecttoongoingcompliancerequirementsandauditsbyfederal,stateand foreigntaxauthorities.

Wearesubjecttoregularexaminationsofourincometaxreturnsbyvarioustaxauthorities.Weregularlyassess thelikelihoodofmaterialadverseoutcomesresultingfromtheseexaminationstodeterminetheadequacyofourprovision forincometaxes.Inaddition,taxenforcementhasbecomeincreasinglyaggressiveinrecentyearsfocusedprimarilyon transferpricingandintercompanydocumentation.Ourestimateofthepotentialoutcomeofuncertaintaxissuesrequires significantjudgmentandissubjecttoourassessmentofrelevantrisks,factsandcircumstancesexistingatthetime.We usetheseassessmentstodeterminetheadequacyofourprovisionforincometaxesandothertax-relatedaccounts.Our 14 2025AnnualReport | AveryDennisonCorporation

resultsmayincludefavorableorunfavorableadjustmentstoourestimatedtaxliabilitiesintheperiodtheassessmentsare madeorresolved,whichmaymateriallyadverselyaffectoureffectivetaxrate.

Wehavedeferredtaxassetsthatwemaynotbeabletorealizeundercertaincircumstances.

Ifweareunabletogeneratesufficienttaxableincomeincertainjurisdictions,orifthereisasignificantchangein thetimeperiodwithinwhichtheunderlyingtemporarydifferencesbecometaxableordeductible,wecouldberequiredto increaseourvaluationallowancesagainstourdeferredtaxassets.Thiswouldincreaseoureffectivetaxrateandcould haveamaterialadverseeffectonourbusiness.Inaddition,changesinstatutorytaxratesmaychangeourdeferredtax assetorliabilitybalances,witheitherafavorableorunfavorableimpactonoureffectivetaxrate.Asignificantportionof ourindefinite-livednetoperatinglosscarryforwardsisconcentratedinLuxembourgandmayrequiredecadestobefully utilizedunderourcurrentbusinessmodel.Decreasesinthestatutorytaxrateorchangesinourabilitytogenerate sufficientfuturetaxableincomeinLuxembourgcouldmateriallyadverselyaffectoureffectivetaxrate.Inaddition,the computationandassessmentoftherealizabilityofourdeferredtaxassetsmayalsobemateriallyimpactedbynew legislationorregulations.

RisksRelatedtoHumanCapital

Forustoremaincompetitive,deliveronourbusinessstrategyandavoidbusinessdisruption,itisimportanttorecruit highcalibertalent,retainkeymanagementandhighly-skilledemployeesandreceivehighqualityservicefromall outsourcedserviceproviders.Thisincludesprovidingmarket-competitivecompensationandbenefitsandensuring anengagedglobalteam.

Competitiontorecruitandretaincriticaltalentwaschallenginginrecentyears.Ourongoingproductivityefforts andrestructuringactionscanincreasethischallenge.Whenitcomestoouroutsourcedserviceproviders,wehave experienceddelaysorerrorsandreducedresourceavailabilityandmanagedongoingriskwhenitcomestopeople, processesandsoftware.

Executivesuccessionplanningiscriticaltoourlong-termsuccess.Whilewebelievewehaveappropriate leadershipdevelopmentprogramsandsuccessionplansinplacethatareregularlydiscussedwiththeTalentand CompensationCommitteeofourBoardofDirectors(our“Board”),anyfailuretoensureeffectiveleadershiptransitions andknowledgetransferinvolvingkeymanagementorotherhighly-skilledemployeescouldhinderourstrategicplanning andexecution.

Wehavevariousnon-U.S.collectivelaborarrangements,whichmakeussubjecttopotentialworkstoppages,aswell asunionandworkscouncilcampaignsandotherlabordisputes,anyofwhichcouldadverselyimpactourbusiness.

Workinterruptionsorstoppagesatourcompanyoroursupplierscouldsignificantlyimpactourabilitytodeliver forourcustomers.Inaddition,collectivebargainingagreements,unioncontractsandlaborlawsmayimpairourabilityto closeordownsizemanufacturingfacilitiesbecauseoflimitationsonpersonnelandsalaryandotherrestrictions.Awork stoppageatoneormoreofourfacilities,orthefacilitiesofourcustomersorsuppliers,couldhaveamaterialadverse effectonourbusiness.

Inaddition,therecentandongoinggeopoliticalunrestandweather-relatedeffectsofclimatechangeinnumerous regionscouldimpactthesafetyandproductivityofouremployees.Thoseimpactscouldalsohinderourabilitytorecruit andretaintalentintheimpactedregions/countries.

RisksRelatedtoOurIndebtedness

Ifourindebtednessincreasessignificantlyorourcreditratingsaredowngraded,wemayhavedifficultyobtaining short-andlong-termfinancingonacceptabletermsandconditions.

AtDecember31,2025,wehadapproximately$3.73billionofdebt.Ourlevelofindebtednessandcreditratings aresignificantfactorsinourabilitytoobtainshort-andlong-termfinancing.Significantlyunfavorablechangesinourdebt leveragepositionand/orlowercreditratingscouldnegativelyimpactourabilitytoissuedebtatfavorabletermsto supportourbusinessneedsandresultinhigherfinancingcosts.Adowngradeofourshort-termcreditratingscould impactourabilitytoaccessthecommercialpapermarketsandincreaseourborrowingcostsoncommercialpaperor alternativefundingsources,includingourrevolvingcreditfacility(the“Revolver”)orothercreditfacilities.Ifouraccessto commercialpapermarketsweretobecomelimited,wewouldneedtoobtainshort-termfundingunderourRevolver, whichwouldexposeustovariableinterestrates.

Anincreaseininterestratesadverselyaffectsourbusiness.

In2025,ouraveragevariable-rateborrowingswereapproximately$739million.Increasesinshort-terminterest ratesdirectlyimpacttheamountofinterestwepay.Fluctuationsininterestratescanincreaseourborrowingcostsand haveamaterialadverseeffectonourbusiness.

Afterseveralyearsofraisinginterestratesinanefforttocurbrisinginflationacrosstheglobe,theU.S.Federal Reserveandsimilarmonetarypolicymakingentitiesaroundtheworldmodestlyreducedratesin2025.Asof December31,2025,theU.S.FederalReserve’sbenchmarkinterestratewasbetween3.50%and3.75%,downfrom between4.25%and4.50%atyear-end2024.Whenlong-andshort-terminterestratesrise,ourborrowingcosts increase.Continuedincreasesininterestratescould,amongotherthings,reducetheavailabilityand/orincreasethecosts ofobtainingnewdebtandrefinancingexistingindebtednessandnegativelyimpactourbusiness.

Ourcurrentandfuturedebtcovenantsmaylimitourflexibility.

Ourcreditfacilitiesandtheindenturesgoverningourmedium-andlong-termnotescontain,andanyofourfuture indebtednesslikelywouldcontain,restrictivecovenantsthatimposeoperatingandfinancialrestrictionsonus.Among otherthings,thesecovenantsrestrictourabilitytoincuradditionalindebtedness,incurcertainliensonourassets,make certaininvestments,sellourassetsormergewiththirdparties,orenterintocertaintransactions.TheRevolvercontainsa financialcovenantthatrequiresustomaintainamaximumleverageratio.Referto“CapitalResources”inItem7. “Management’sDiscussionandAnalysisofFinancialConditionandResultofOperations”ofthisAnnualReportonForm 10-Kformoreinformationaboutthisfinancialcovenant.Theserestrictivecovenantsandratiosmaylimitorprohibitus fromengagingincertainactivitiesandtransactionsthatmaybeinourbestinterest,whichcouldmateriallyadversely affectourbusiness.Thefailuretocomplywiththeseorothercovenantsgoverningotherindebtedness,including indebtednessincurredinthefuture,couldresultinaneventofdefault,which,ifnotcuredorwaived,couldhavea materialadverseeffectonourbusiness,financialconditionandresultofoperations,includingbytriggeringcross-defaults inotherdebtfacilities.

RiskRelatedtoOwnershipofOurStock

Ourstockpriceissubjecttosignificantvariability.

Changesinourstockprice,amongotherthings,affectouraccessto,orcostoffinancingfrom,capitalmarkets,our stock-basedcompensationarrangementsandoureffectivetaxrate.Ourstockprice,whichdeclinedduringthesecond halfof2024andremainedrelativelystableduring2025,isinfluencedbychangesintheoverallstockmarketanddemand forequitysecuritiesingeneral.Otherfactors,includingourfinancialperformanceonanabsolutebasisandrelativeto peercompaniesandcompetitors,aswellasmarketexpectationsofourperformance,thelevelofperceivedgrowthor profitoftheindustriesweserve,andothercompany-specificfactors,mayalsomateriallyadverselyaffectourstockprice. Therecanbenoassurancethatourstockpricewillnotcontinuetoexperiencesignificantvariabilityinthefuture.

Wecannotguaranteethatwewillcontinuetorepurchasesharesofourcommonstockorpaydividendsonour commonstockorthatrepurchaseswillenhancelong-termstockholdervalue.Changesinourlevelsofstock repurchasesordividendscouldaffectourstockpriceandincreaseitsvariability.

InApril2025,ourBoardauthorizedtherepurchaseofsharesofourcommonstockwithafairmarketvalueofup to$750million,inadditiontotheamountofsharesthatwerethenavailableforrepurchaseunderourpreviousBoard authorization.In2025,werepurchased3.2millionsharesofourcommonstockatanaggregatecostof$575.6million.As ofDecember31,2025,sharesofourcommonstockintheaggregateamountof$526.3millionremainedauthorizedfor repurchaseunderthe2025Boardauthorization.Werepurchasesharesthroughavarietyofmethods,whichmayinclude openmarketpurchases,privatelynegotiatedtransactions,blocktradesoracceleratedsharerepurchasetransactions.Our sharerepurchaseauthorizationsdonotobligateustoacquireanyspecificnumberofsharesortorepurchaseanyspecific numberofsharesforanyfixedperiod.Thetimingandamountofourrepurchases,ifany,aresubjecttoourcapital allocationstrategyasitmayevolvefromtimetotime,ourviewofintrinsicvaluecoupledwithadisciplinedrepurchase grid,marketandeconomicconditions,applicablelegalrequirementsandotherrelevantfactors.Wemaylimit,suspendor discontinuerepurchasingsharesatanytimeatourdiscretionwithoutpriornotice.

Payingasustainabledividendisakeypartofourcapitalallocationstrategy.Althoughweincreasedourquarterly dividendratebyapproximately7%inApril2025,therecanbenoassurancethatwewillmaintainthisrateorapprove 16 2025AnnualReport | AveryDennisonCorporation

furtherincreasesinthefuture.Wearenotobligatedtocontinuedeclaringdividends,andourpaymentofdividendscould besuspendedordiscontinuedatanytimeatthediscretionofourBoard.Wewillcontinuetoretainfutureearningsto developourbusiness,asopportunitiesarise,andevaluatetheamountandtimingoffuturedividendsbasedonour operatingresults,financialcondition,capitalallocationstrategiesandgeneralbusinessconditions.Theamountandtiming ofanyfuturedividendsmayvary,andthepaymentofanydividenddoesnotassurethatwewillpaydividendsinthe future.

Inaddition,anyfuturerepurchasesofourcommonstockorpaymentofdividends,oranydeterminationtocease repurchasingstockorpayingdividends,couldaffectourstockpriceandsignificantlyincreaseitsvariability.Additionally, anyfuturerepurchasesofourcommonstockorpaymentofdividendscouldimpactourabilitytoinvestinourbusinesses orpursueacquisitionsandventureinvestments.Althoughoursharerepurchaseprogramisintendedtoenhancelongtermstockholdervalue,thereisnoassurancethatitwilldosobecausethemarketpriceofourcommonstockmaydecline belowthelevelsatwhichwerepurchasedsharesofstockandshort-termstockpricefluctuationscouldreducethe program’seffectiveness.

RisksRelatedtoLegalandRegulatoryMatters

Infringingintellectualpropertyrightsofthirdpartiesorinadequatelyacquiringorprotectingourintellectualproperty couldharmourabilitytocompeteorgrow.

Becauseourproductsinvolvecomplextechnologyandchemistry,weareinvolvedfromtimetotimeinlitigation involvingpatentsandotherintellectualproperty.Partieshavefiled,andinthefuturemayfile,claimsagainstusalleging thatwehaveinfringedtheirintellectualpropertyrights.Wewerepartytoalitigation,whichwesettledin2024,inwhich ADASAInc.(“Adasa”),anunrelatedthirdparty,allegedthatcertainofourRFIDproductswithinourSolutionsGroup reportablesegmentinfringeditspatent.Formoreinformationonthislitigation,seeNote8,“Contingencies,”intheNotes toConsolidatedFinancialStatements.Ifweareheldliableforinfringementinothermatters,wecouldberequiredtopay damages,obtainlicensesorceasemakingorsellingcertainproducts.Therecanbenoassurancethatlicenseswouldbe availableoncommerciallyreasonabletermsoratall.Thedefenseoftheseclaims,whetherornotmeritorious,orthe developmentofnewtechnologieswouldbecostlyanddiverttheattentionofmanagement.

Wealsohavevaluableintellectualpropertyuponwhichthirdpartiesmayinfringe.Weseektoprotectandrestrict accesstoourintellectualpropertyandproprietaryinformationbyrelyingonthepatent,trademark,copyrightandtrade secretlawsoftheU.S.andothercountries,aswellasnon-disclosureagreements.However,itmaybepossibleforathird partytoobtainourinformationwithoutourauthorization,independentlydevelopsimilartechnologies,orbreacha non-disclosureagreemententeredintowithus.Inaddition,manyofthecountriesinwhichweoperatedonothave intellectualpropertylawsasprotectiveasthoseintheU.S.Theuseofourintellectualpropertybysomeoneelsewithout ourauthorizationcouldreduceoreliminatecertaincompetitiveadvantageswehave,causeustolosesalesorotherwise harmourbusiness.Further,thecostsassociatedwithprotectingourintellectualpropertyrightscouldmateriallyadversely impactourbusiness.

WehaveobtainedandappliedforU.S.andforeigntrademarkregistrationsandpatents,andwillcontinueto evaluatewhethertoregisteradditionaltrademarksandapplyforadditionalpatents.Wecannotguaranteethatanyofour pendingapplicationswillbeapprovedbytheapplicablegovernmentalauthorities.Further,wecannotassurethatthe validityofourpatentsorourtrademarkswillnotbechallenged.Inaddition,thirdpartiesmaybeabletodevelop competingproductsusingtechnologythatavoidsourpatents.

Unfavorabledevelopmentsinlegalproceedings,investigationsandotherlegalandregulatorymatters,couldimpact usinamateriallyadversemanner.

Therecanbenoassurancethatanyoutcomeofanylitigation,investigationorotherlegal,environmental, complianceandregulatorymatterwillbefavorable.Ourfinancialresultscouldbemateriallyadverselyaffectedbyan unfavorableoutcometopendingorfuturelitigationandinvestigations,andotherlegal,regulatory,environmentaland compliancematters.SeeNote8,“Contingencies,”intheNotestoConsolidatedFinancialStatementsformore information.

Wearerequiredtocomplywithanti-corruptionandothercompliancelawsandregulationsoftheU.S.government andvariousinternationaljurisdictions,andourfailuretocomplywiththeselawsandregulationscouldhavea materialadverseeffectonourbusiness.

Wearerequiredtocomplywiththeanti-corruptionandothercompliancelawsandregulationsoftheU.S. governmentandvariousinternationaljurisdictions,suchastheU.S.ForeignCorruptPracticesActandtheUK’sBribery Actof2010.Ifwefailtocomplywithanti-corruptionlaws,wecouldbesubjecttosubstantialcivilandcriminalpenalties, includingfines,monetarydamagesandincarcerationforresponsibleemployeesandmanagers.Inaddition,ifour distributorsoragentsfailtocomplywiththeselaws,ourbusinessmayalsobemateriallyadverselyaffectedthrough reputationalharmandpenalties.

Wearerequiredtocomplywithenvironmental,health,andsafetylawsatouroperationsaroundtheworld.Thecosts ofcomplyingwiththeselawsissignificantandincreasing.

Wearesubjecttonational,state,provincialand/orlocalenvironmental,health,andsafetylawsandregulationsin theU.S.andothercountriesinwhichweoperate,includingthoserelatedtothedisposalofhazardouswasteandGHG emissionsfromourmanufacturingprocesses.Theselaws,whichcontinuetoevolveandimposeadditionalrequirements onourcurrentandformermanufacturingfacilities,canresultinliabilityforthecostsof,anddamagesresultingfrom, cleaningupcurrentsites,pastspills,disposalsandotherreleasesofhazardoussubstances.Enforcementoftheselawsis subjecttothediscretionofgovernmentalagencies.Anyfailuretocomplywithexistingandfutureenvironmental,health andsafetylawscouldsubjectustofees,penalties,costsorliabilities,impactourproductioncapabilities,limitourabilityto sell,expandoracquirefacilities,andhaveamaterialadverseeffectonourbusiness.Lawsandregulationsrelatedtothe environment,productcontentandproductsafetyarecomplex,changeoften,andcanbeopentodifferentinterpretations. Inaddition,wecouldbemateriallyandadverselyimpactedbyanyenvironmentalorproductsafetyenforcementaction affectingoursuppliers,particularlyinemergingmarkets.

Wehaveaccruedliabilitiesfortheenvironmentalclean-upofcertainsiteswhereitisprobablethatalosswillbe incurredandthecostoramountoflosscanbereasonablyestimated,includingthetensitesforwhichU.S.governmental agencieshavedesignatedusasapotentiallyresponsiblepartyasofour2025fiscalyear-end.Becauseofthe uncertaintiesassociatedwithenvironmentalassessmentandremediationactivities,theactualexpensetoremediate currentlyidentifiedsitescouldbehigherthantheliabilitiesaccruedandadditionalsitescouldbeidentifiedinthefuture. SeeNote8,“Contingencies,”intheNotestoConsolidatedFinancialStatementsformoreinformation.

Wearesubjecttoexportandimportcontrollawsandregulationsinthejurisdictionsinwhichwedobusinessthat couldsubjectustoliabilityorimpairourabilitytocompeteinthesemarkets.

Exportcontrollawsandeconomicsanctionsprohibittheshipmentofsomeofourproductstoembargoedor sanctionedcountries,governmentsandpersons.Whilewetrainouremployeestocomplywiththeseregulations,use thirdpartyscreeningsoftwareandtakeotherprecautionarymeasures,wecannotguaranteethataviolationwillnot occur.Aprohibitedshipmentcanhavenegativeconsequences,includinggovernmentinvestigations,penalties,fines,civil andcriminalsanctionsand/orreputationalharm.Anychangeinexportorimportregulations,economicsanctionsor relatedlegislation,shiftintheenforcementorscopeofexistingregulations,orchangeinthecountries,governments, personsortechnologiestargetedbysuchregulations,coulddecreaseourabilitytoexportorsellourproducts internationally.Anylimitationonourabilitytoexportorsellourproductscouldmateriallyadverselyaffectourbusiness.

Someofourproductsaresubjecttoexportcontrollawsandregulationsandmaybeexportedonlywithanexport licenseorthroughanapplicableexportlicenseexception.Ifwefailtocomplywithexportlicensing,customsregulations, economicsanctionsorotherlaws,wecouldbesubjecttosubstantialcivilorcriminalpenalties,includingfines,criminal chargesagainstresponsibleemployeesandlossofexportorimportprivileges.Inaddition,ifourdistributorsfailtoobtain appropriateimport,exportorre-exportlicensesorpermits,wemayalsobemateriallyadverselyaffectedthrough reputationalharmandpenalties.Obtainingthenecessaryexportlicenseforaparticularsalemaybetimeconsumingand expensiveandcouldresultindelayedorlostsales.

RisksRelatedtoOtherFinancialMatters

Ourpensionassetsandliabilitiesaresignificantandsubjecttomarket,interestandcreditriskthatmayreducetheir assetvaluesorincreasetheirliabilityvalues,eitherofwhichcouldincreaseournetpensionliability.

Changesinthevalueofourpensionassets,whichwasapproximately$733millionasofDecember31,2025, couldmateriallyadverselyaffectourearningsandcashflowsasaresultofadeclineinthevalueofourinvestmentsdue toincreasesininterestratesorvolatilityinfinancialmarkets.Inaddition,ourpensionliabilities,whichwereapproximately $721millionasofDecember31,2025,aresubjecttointerestandinflationriskthatmayincreasetheirvalue.We regularlyevaluateoptionstobettermanagethevolatilityassociatedwithourpensionassetsandliabilitiesandmay continuetakingactionstoreducethefinancialvolatilityassociatedwithourpensionliabilities,whichcouldresultin significantcharges.Althoughwemitigatetheserisksbyinvestinginhighqualitysecurities,ensuringadequate diversificationofourinvestmentportfolio,monitoringourportfolio’soverallriskprofileandmanagingitsliabilityprofile, ournetpensionliabilitymayneverthelessincrease.

Theactuarialassumptionsusedinthemeasurementofourpensionassetsandliabilitiesaffectourearningsandcash flows.Changesinaccountingstandardsandgovernmentregulationscouldalsoaffectourpensionand postretirementplanexpenseandfundingrequirements.

Weevaluatetheassumptionsusedindeterminingprojectedbenefitobligationsandthefairvalueofplanassets forournon-U.S.pensionplansandotherpostretirementbenefitplansinconsultationwithoutsideactuaries.Ourpension andprojectedpostretirementbenefitexpensesandfundingrequirementsincreaseordecreaseasaresultofthe assumptionsweuse,includingthediscountrate,expectedlong-termrateofreturnandmortalityrates.Becauseof changingmarketconditionsorchangesinparticipantpopulations,theactuarialassumptionsthatweusemaydifferfrom actualresults,whichcouldhaveasignificantimpactonourpensionandpostretirementbenefitobligationsandrelated costs.Fundingobligationsforeachplanaredeterminedbasedonthevalueofassetsandliabilitiesonaspecificdatein accordancewithapplicablegovernmentregulations.Ourpensionfundingrequirements,andthetimingoffunding payments,couldalsobeaffectedbyfuturelawsorregulations.WeareimplementingplanstocomplywiththeDutch PensionActpassedin2023,whichrequirestraditionaldefinedbenefitplanstobephasedoutandtransitiontodefined contributionplansbeforeJanuary1,2028.OurDutchdefinedbenefitplanincludesaminimumguaranteedfundingratio thatwillhavetobeterminatedaspartofthetransition,forwhichwewillhavetocompensatetheDutchPensionFund.

Animpairmentinthecarryingvalueofgoodwillcouldnegativelyimpactourresultsofoperationsandnetworth.

Goodwillisinitiallyrecordedatfairvalueandnotamortizedandisreviewedforimpairmentannually(ormore frequentlyifimpairmentindicatorsarepresent).AsofDecember31,2025,thecarryingvalueofourgoodwillwas $2.27billion.In2025,wedeterminedthatthegoodwillofourreportingunitswasnotimpaired.Inperformingimpairment tests,wehavetheoptiontofirstassessqualitativefactorstodeterminewhetheritisnecessarytoperformaquantitative assessmentforgoodwillimpairment.Ifthequalitativeassessmentindicatesthatitismore-likely-than-notthatthefair valueofareportingunitislessthanitscarryingvalue,weperformaquantitativeassessment.Aquantitativeassessment primarilyconsistsofcomparingthefairvalueofareportingunittoitscarryingvalue,calculatinggoodwillvaluations primarilyusinganincomeapproachbasedonthepresentvalueofprojectedfuturecashflowsofeachreportingunit.In assessingfairvalue,wemakeestimatesandassumptionsaboutsales,profitmargins,growthratesanddiscountrates basedonourbusinessplans,economicprojections,anticipatedfuturecashflowsandmarketplacedata.Thereare inherentuncertaintiesrelatedtothesefactorsandmanagement’sjudgmentinapplyingthesefactors.Wecouldbe requiredtoevaluatethecarryingvalueofgoodwillpriortotheannualassessmentifweexperiencedisruptionstoour business,unexpectedsignificantdeclinesinoperatingresults,divestitureofasignificantcomponentofourbusinessor sustainedmarketcapitalizationdeclines.Theseeventscouldresultingoodwillimpairmentchargesinthefuture,which couldmateriallyadverselyaffectourbusinessintheperiodsinwhichtheyaremade.

Item1B.UNRESOLVEDSTAFFCOMMENTS

None.

Item1C.CYBERSECURITY

CybersecurityRiskManagementandStrategy

Ourcybersecurityriskmanagementprogram,whichisdesignedtoprotecttheconfidentiality,integrityand availabilityofourcriticalsystemsandinformation,includesacomprehensivesecurityincidentresponseplan.It complementsourenterpriseriskmanagementprogramoverseenbyourBoard,usingsimilarmethodologiesand governanceprocessestoidentifyrisksandmitigatingstrategies.

WedesignandassessourprogrambasedontheISO27000andtheNationalInstituteofStandardsand Technology(“NIST”)SP-800andCybersecurityFramework.Weusetheseframeworkstohelpusidentify,assessand managecybersecurityrisksrelevanttoourbusinessanddonotintendtosuggestthatwemeetanyparticulartechnical standards,specificationsorrequirements.

Ourcybersecurityriskmanagementprogramincludesriskassessmentsdesignedtohelpidentifypotentially materialcybersecurityriskstoourcriticalsystems,informationsecurity,productsandservices,aswellasourbroader enterpriseinformationtechnologyenvironment;aninformationtechnologysecurityteamprincipallyresponsiblefor managingourcybersecurityriskassessmentprocesses,securitycontrolsandresponsetoanycybersecurityevents;the useofthirdpartyexpertsandserviceproviders,whereappropriate,toassess,testandotherwiseassistwithprotecting oursecurityenvironment;cybersecurityawarenesstrainingforouremployeesandfurthertrainingforourincident responsepersonnelandseniormanagement;asecurityincidentresponseplanthatincludesproceduresforassessing andcoordinatingourresponsetocybersecurityevents;andathird-partyriskmanagementprogramdesignedtoidentify andmitigaterisksassociatedwithoursupplychainandvendorecosystem,whichincludesinitialsecurityposture assessments,contractualsecurityrequirementsandongoingmonitoringofcriticalthirdpartiestoaddresspotential cybersecuritythreats.

Wehavenotexperiencedcybersecurityeventsthathavemateriallyaffectedouroperations,resultsofoperations orfinancialcondition.However,wefaceongoingrisksfromcybersecuritythreatsinanever-evolvingthreatlandscape that,ifrealized,couldbereasonablylikelytomateriallyaffectourbusiness.

Risksanduncertaintiesrelatedtocybersecurityarediscussedingreaterdetailunder“RisksRelatedtoInformation Technology”inItem1Aofthisreport.

CybersecurityGovernance

OurBoardconsiderscybersecurityriskaspartofitsoverallriskoversight.In2025,itsAuditCommitteewas primarilyresponsibleforoverseeingourstrategies,policiesandriskmanagementpracticesrelatedtocybersecurityand informationsecurity,engagingwithmanagement,includingourChiefInformationSecurityOfficer(“CISO”),whoreports toourChiefInformationOfficer(“CIO”),amemberofourCompanyLeadershipTeamandadirectreportofourChief ExecutiveOfficer(“CEO”).During2025,ourCIOandCISOprovidedsemiannualupdatesonourcybersecurity preparednesstotheAuditCommittee.Theseupdatescoveredtheoverallstatusofourcybersecurityprogram,resultsof riskassessments,theevolvingthreatlandscape,performanceagainstkeyperformanceindicatorsandtheprogresswith strategicinformationsecurityinitiatives.TheAuditCommitteeChairreportedonthesematterstoourfullBoard.In addition,managementupdatedtheCybersecurityAdvisoryCouncil,composedofmembersofourBoardand management,toobtainadditionalinsightsintoourcybersecurityriskmanagement,and,ifandasneeded,totheAudit Committeeregardinganysignificantcybersecurityevents,aswellaseventsthatmayhavehadlesserpotentialimpact. EffectiveJanuary2026,ourBoardformedastandaloneCybersecurityCommitteetobeprimarilyresponsiblefor overseeingourstrategies,policiesandriskmanagementpracticesrelatedtocybersecurityandinformationsecurityand theCybersecurityAdvisoryCouncilceasedoperating.

Ourcybersecurityleadershipteam(“CSLT”)—whichincludesleadersaccountableforsecurityoperations,incident response,riskandcompliance,datasecurity,applicationsecurity,digitalsolutionssecurity,vulnerabilitymanagementand operationaltechnologysecurity—isresponsibleforassessingandmanagingourrisksfromcybersecuritythreats.The CSLT,whichisledbyourCIOandCISO,isprimarilyresponsibleforouroverallcybersecurityriskmanagementprogram andsupervisesbothourinternalcybersecurityandinformationsecuritypersonnelandtheexternalconsultantsadvising ourcompanyonthesematters.Ourinformationsecuritymanagementandpersonnelmaintainavarietyoftechnicaland managerialsecuritycertificationsandhavebroadsecurityexperienceinmanufacturing,finance,softwareandinformation technologyenvironments.

20 2025AnnualReport | AveryDennisonCorporation

TheCSLTmanagesoureffortstoprevent,detect,mitigateandremediatecybersecurityrisksandincidents throughavarietyofmeans,whichmayincludebriefingsfrominternalsecuritypersonnel;threatintelligenceandother informationobtainedfromgovernmental,publicorprivatesources,includingexternalconsultants;andreportsfrom cybersecuritysystemsdeployedinourinformationtechnologyenvironment.

Item2.PROPERTIES

AsofDecember31,2025,weoperatedmanufacturingfacilitiesinexcessof100,000squarefeetinthereportable segmentsandlocationslistedbelow.

MaterialsGroup

U.S.PeachtreeCity,Georgia;GreenfieldandLowell,Indiana;FairportHarbor,Mentor,OakHarborand Painesville,Ohio;andMillHall,Pennsylvania Non-U.S.SoigniesandTurnhout,Belgium;Vinhedo,Brazil;Guangzhou,KunshanandZhuozhou,China; Champ-sur-Drac,France;Gotha,Germany;NoidaandPune,India;Longford,Ireland;Kibbutz Hanita,Israel;Rodange,Luxembourg;Bangi,Malaysia;Queretaro,Mexico;Chungju,SouthKorea; Rayong,Thailand;andCramlington,UnitedKingdom

SolutionsGroup

U.S.FortWayne,Indiana;NewCentury,Kansas;Miamisburg,Ohio;andNashville,Tennessee Non-U.S.Dhaka,Bangladesh;Guangzhou,Ningbo,Panyu,ShenzhenandSuzhou,China;Ancarano,Italy; Kulim,Malaysia;Queretaro,Mexico;andLongAnProvince,Vietnam

Inadditiontothemanufacturingfacilitiesdescribedabove,ourotherprincipalfacilitiesincludeourcorporate headquartersanddivisionalofficeinMentor,OhioandourdivisionalandcorporateofficeslocatedinDallas,Texas; Vinhedo,Brazil;HongKongandKunshan,China;andOegstgeest,theNetherlands.

Weownalloftheprincipalpropertiesidentifiedabove,exceptforthefacilitiesinthefollowinglocations,whichare leased:NewCentury,Kansas;Nashville,Tennessee;HongKong,Ningbo,Panyu,ShenzhenandZhuozhou,China;Kibbutz Hanita,Israel;andOegstgeest,theNetherlands.

Weconsiderallourproperties,whetherownedorleased,suitableandadequateforourcurrentneeds.We generallyexpandproductioncapacityasneededtomeetincreaseddemand.Ownedbuildingsandplantequipmentare insuredagainstmajorlossesfromfireandotherusualbusinessrisks,subjecttoapplicabledeductibles.Wearenotaware ofanymaterialdefectsintitleto,orsignificantencumbranceson,ourproperties,exceptforcertainmortgageliens.

Item3.LEGALPROCEEDINGS

SeeNote8,“Contingencies,”intheNotestoConsolidatedFinancialStatements.

Item4.MINESAFETYDISCLOSURES

Notapplicable.

PARTII

Item5.MARKETFORREGISTRANT’SCOMMONEQUITY,RELATEDSTOCKHOLDERMATTERSANDISSUER PURCHASESOFEQUITYSECURITIES

(a)Ourcommonstockislistedunderthetickersymbol“AVY”ontheNewYorkStockExchange.Wedidnotsell securitiesinanyunregisteredtransactionsduringfiscalyear2025.Wehavehistoricallypaidquarterlycash dividends.FuturedividendpaymentsaresubjecttotheapprovalbyourBoardofDirectors(our“Board”)basedon ourearnings,capitalrequirements,financialconditionandotherfactors.

Wehad3,130shareholdersofrecordasofDecember31,2025,thelastdayofour2025fiscalyear.

StockholderReturnPerformance

Thegraphbelowcomparesthecumulativestockholderreturnonourcommonstock,includingreinvestmentof dividends,withthereturnontheS&P500StockIndex,S&P500IndustrialsIndexandDowJonesU.S.Container& PackagingIndex,ineachcaseforthefive-yearperiodendingDecember31,2025. $50

Avery Dennison

S&P 500 Index

S&P 500 Industrials Index

Dow Jones U.S. Container & Packaging Index

12/31/202012/31/202112/31/202212/31/202312/31/2025 12/31/2024

TotalReturnAnalysis(1)

12/31/202012/31/202112/31/202212/31/202312/31/202412/31/2025

AveryDennison$100$141$120$137$128$127 DowJonesU.S.Container& PackagingIndex1001129399113101

S&P500IndustrialsIndex100121114135159190

S&P500Index100129105133166196

(1) Assumes$100investedonDecember31,2020andreinvestmentofdividends.

(b)Notapplicable.

(c)RepurchasesofEquitySecuritiesbyIssuer

Repurchasesbyusorour“affiliatedpurchasers”(asdefinedinRule10b-18(a)(3)oftheSecuritiesExchangeAct of1934,asamended)ofregisteredequitysecuritiesinthefourthquarterof2025areshowninthetablebelow. Repurchasedsharesmaybereissuedunderourlong-termincentiveplanorusedforothercorporatepurposes.

Period(1)

Approximate dollarvalue ofsharesthat mayyetbe purchased underthe plans(5) September28,2025–October25,2025265.4$160.9265.4$604.4 October26,2025–November22,2025256.4173.6256.4559.9 November23,2025–December31,2025191.9175.4191.9526.3 Total713.7$169.3713.7$526.3

Totalnumber ofshares purchased(2)

Average pricepaid pershare(3)

Totalnumberof shares purchasedas partofpublicly announced plans(2)(4)

(1) TheperiodsshownareourfiscalmonthsduringthequarterendedDecember31,2025.

(2) Sharesinthousands.

(3) Averagepricepaidpershareincludestransactioncoststoacquirethesharesandexcludesthenon-deductible1%excisetaxonthenetvalueof repurchasesimposedundertheInflationReductionActof2022.

(4) InApril2025,ourBoardauthorizedtherepurchaseofsharesofourcommonstockwithafairmarketvalueofupto$750million,excludinganyfees, commissionsorotherexpensesrelatedtosuchpurchases,inadditiontotheamountoutstandingunderourpreviousBoardauthorization.Board authorizationsremainineffectuntilsharesintheamountauthorizedthereunderhavebeenrepurchased.

(5) Dollarsinmillions.

Item6.RESERVED

ORGANIZATIONOFINFORMATION

Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,orMD&A,provides management’sviewsonourfinancialconditionandresultsofoperations,shouldbereadinconjunctionwiththe ConsolidatedFinancialStatementsandrelatednotesthereto,andincludesthesectionsshownbelow.

NON-GAAPFINANCIALMEASURES

WereportourfinancialresultsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesof America,orGAAP,andalsocommunicatewithinvestorsusingcertainnon-GAAPfinancialmeasures.Thesenon-GAAP financialmeasuresarenotinaccordancewith,noraretheyasubstitutefororsuperiorto,thecomparableGAAPfinancial measures.Thesenon-GAAPfinancialmeasuresareintendedtosupplementthepresentationofourfinancialresults preparedinaccordancewithGAAP.Weusethesenon-GAAPfinancialmeasuresinternallytoevaluatetrendsinour underlyingperformance,aswellastofacilitatecomparisonswiththeresultsofcompetitorsforquartersandyear-to-date periods,asapplicable.Basedonfeedbackfrominvestorsandfinancialanalysts,webelievethatthesupplemental non-GAAPfinancialmeasuresweprovidearealsousefultotheirassessmentsofourperformanceandoperatingtrends, aswellasliquidity.Reconciliationsofournon-GAAPfinancialmeasuresfromthemostdirectlycomparableGAAP financialmeasuresareprovidedinaccordancewithRegulationsGandS-K.

Ournon-GAAPfinancialmeasuresexcludetheimpactofcertainevents,activitiesorstrategicdecisions.The accountingeffectsoftheseevents,activitiesordecisions,whichareincludedintheGAAPfinancialmeasures,maymake itmoredifficulttoassessourunderlyingperformanceinasingleperiod.Byexcludingtheaccountingeffects,positiveor negative,ofcertainitems(e.g.,restructuringcharges,outcomesofcertainlegalmattersandsettlements,certaineffectsof strategictransactionsandrelatedcosts,lossesfromdebtextinguishments,gainsorlossesfromcurtailmentorsettlement ofpensionobligations,gainsorlossesonsalesofcertainassets,gainsorlossesonventureandotherinvestments, currencyadjustmentsduetohighlyinflationaryeconomies,andotheritems),webelievethatweareprovidingmeaningful supplementalinformationthatfacilitatesanunderstandingofourcoreoperatingresultsandliquiditymeasures.While someoftheitemsweexcludefromGAAPfinancialmeasuresrecur,theytendtobedisparateinamount,frequencyor timing.

Weusethenon-GAAPfinancialmeasuresdescribedbelowinthisMD&A.

• Saleschangeex.currency referstotheincreaseordecreaseinnetsales,excludingtheestimatedimpactof foreigncurrencytranslation,and,whereapplicable,currencyadjustmentsfortransitionalreportingofhighly inflationaryeconomies,andthereclassificationofsalesbetweensegments.Additionally,whereapplicable, saleschangeex.currencyisalsoadjustedfortheestimatedimpactofextradaysinourfiscalyearandthe calendarshiftresultingfromextradaysinthepriorfiscalyear.Theestimatedimpactofforeigncurrency translationiscalculatedonaconstantcurrencybasis,withprior-periodresultstranslatedatcurrentperiod averageexchangeratestoexcludetheeffectofforeigncurrencyfluctuations.Our2025fiscalyearbeganon December29,2024andendedonDecember31,2025;fiscalyears2026andbeyondwillbecoincidentwith thecalendaryearbeginningonJanuary1andendingonDecember31.

• Organicsaleschange referstosaleschangeex.currency,excludingtheestimatedimpactofacquisitionsand productlinedivestitures.

Webelievethatsaleschangeex.currencyandorganicsaleschangeassistinvestorsinevaluatingthesales changefromtheongoingactivitiesofourbusinessesandenhancetheirabilitytoevaluateourresultsfrom periodtoperiod.

• Adjustedfreecashflow referstocashflowprovidedbyoperatingactivities,lesspaymentsforproperty,plant andequipment,lesspaymentsforsoftwareandotherdeferredcharges,plusproceedsfromcompany-owned lifeinsurancepolicies,plusproceedsfromsalesofproperty,plantandequipment,plus(minus)netproceeds frominsuranceandsales(purchases)ofinvestments,lessnetcashusedforArgentineBlueChipSwap securities.Whereapplicable,adjustedfreecashflowisalsoadjustedforcertainacquisition-related transactioncosts.Webelievethatadjustedfreecashflowassistsinvestorsbyshowingtheamountofcash wehaveavailablefordebtreductions,dividends,sharerepurchases,andacquisitions.

• Operationalworkingcapitalasapercentageofannualizedcurrentquarternetsales referstotradeaccounts receivableandinventories,netofaccountspayable,andexcludescashandcashequivalents,short-term borrowings,deferredtaxes,othercurrentassetsandothercurrentliabilitiesdividedbyannualizedcurrent quarternetsales.Webelievethatoperationalworkingcapitalasapercentageofannualizedcurrentquarter netsalesassistsinvestorsinassessingourworkingcapitalrequirementsbecauseitexcludestheimpactof fluctuationsattributabletoourfinancingandotheractivities(whichaffectcashandcashequivalents,deferred taxes,othercurrentassetsandothercurrentliabilities)thattendtobedisparateinamount,frequencyor timing,andmayincreasethevolatilityofworkingcapitalasapercentageofsalesfromperiodtoperiod.The itemsexcludedfromthismeasurearenotsignificantlyinfluencedbyourday-to-dayactivitiesmanagedatthe operatinglevelanddonotnecessarilyreflecttheunderlyingtrendsinouroperations.

OVERVIEWANDOUTLOOK

FiscalYear

InJanuary2025,theAuditCommitteeofourBoardofDirectorsapprovedachangetoourprevious52-or 53-weekfiscalyeargenerallyendingontheSaturdayclosesttoDecember31toafiscalyearcoincidentwiththecalendar year.Our2025fiscalyearbeganonDecember29,2024andendedonDecember31,2025,whichresultedinfourextra dayscomparedtoprioryears;fiscalyears2026andbeyondwillbecoincidentwiththecalendaryearbeginningon January1andendingonDecember31.

Our2024and2023fiscalyearsconsistedof52-weekperiodsendingDecember28,2024andDecember30, 2023,respectively.

NetSales

Thefactorsimpactingreportednetsaleschange,ascomparedtotheprior-yearperiod,areshowninthetable below.

(1) Totalsmaynotsumduetorounding.

In2025,netsalesonanorganicbasiswerecomparabletotheprioryear,reflectingtheimpactofhighervolume offsetbytheimpactofrawmaterialdeflation-relatedpricereductions.In2024,netsalesincreasedonanorganicbasis primarilyduetohighervolume,partiallyoffsetbytheimpactofrawmaterialdeflation-relatedpricereductions.

NetIncome

Netincomedecreasedfromapproximately$705millionin2024toapproximately$688millionin2025.The primaryfactorsaffectingthisdecreasewere:

•Thenetimpactofrawmaterialdeflation-relatedpricereductions

•Higheremployee-relatedcosts

•Higherinterestexpense

•Growthinvestments

Theseitemswerepartiallyoffsetbythefollowingfactors:

•Benefitsfromproductivityinitiatives,includingmaterialre-engineeringandsavingsfromrestructuringactions, netoftransitioncosts

•Highervolume/mix

CostReductionActions

2025Actions

During2025,werecorded$48.8millioninrestructuringcharges,netofreversals,relatedtoour2025actions. Thesechargesconsistedofseveranceandrelatedcostsforthereductionofapproximately1,200positions,aswellas assetimpairmentcharges,atnumerouslocationsacrossourcompany,asaresultofactionstakentooptimizeour operationalfootprint.

Inthefourthquarterof2024,werecorded$13.1millioninrestructuringchargesrelatedtoour2025actions. Thesechargesconsistedofseveranceandrelatedcostsforthereductionofapproximately90positions,aswellasasset impairmentcharges,reflectingactionsatnumerouslocationsinourSolutionsGroupreportablesegment.

Thecumulativerestructuringcharges,netofreversals,relatedtoour2025actionswasapproximately$62million.

2023Actions

During2024,werecorded$28.8millioninrestructuringcharges,netofreversals,relatedtotheseactions.These chargesconsistedofseveranceandrelatedcostsforthereductionofapproximately1,280positions,aswellasasset impairmentcharges,atnumerouslocationsacrossourcompany.

During2025,werecorded$1.6millionofreversalsrelatedtoour2023Actionsthatwerecompletedinthefourth quarterof2025.

SavingsfromRestructuringActions

Werealizedmorethan$60millioninincrementalsavingsfromrestructuringactions,netoftransitioncosts,in eachof2025and2024.

Restructuringchargeswereincludedin“Otherexpense(income),net”intheConsolidatedStatementsofIncome. RefertoNote13,“CostReductionActions,”totheConsolidatedFinancialStatementsformoreinformation.

BusinessAcquisitions

2025BusinessAcquisition

OnOctober20,2025,wecompletedourbusinessacquisitionofW.F.TaylorHoldings,Inc.(“TaylorAdhesives”),a Georgia-basedflooringadhesivesbusiness,forthepurchasepriceofapproximately$390million.Thisacquisition expandedthehigh-valuecategoryportfolioinourMaterialsGroupreportablesegment.

WefundedtheTaylorAdhesivesacquisitionusingcashandproceedsfromourissuanceofseniornotesin September2025.

Thefinalallocationsofpurchaseconsiderationtoassetsandliabilitiesareongoingaswecontinuetoevaluate certainbalances,estimatesandassumptionsduringthemeasurementperiod(uptooneyearfromtheacquisitiondate). Ourvaluationofcertainacquiredassetsandliabilitiesiscurrentlypendingfinalizationwithintheallowabletimeto completeourassessment.

TheTaylorAdhesivesacquisitionwasnotmaterialtotheConsolidatedFinancialStatements.

2023BusinessAcquisitions

OnNovember23,2023,wecompletedourbusinessacquisitionofSilverCrystalGroup(“SilverCrystal”),a Canada-basedproviderofsportsapparelcustomizationandapplicationsolutionsacrossin-venue,direct-to-businessand e-commerceplatforms.OnMay22,2023,wecompletedourbusinessacquisitionofLGGroup,Inc.(“LionBrothers”),a Maryland-baseddesignerandmanufacturerofapparelbrandembellishments.OnMarch6,2023,wecompletedour businessacquisitionofThermopatch,Inc.(“Thermopatch”),aNewYork-basedmanufacturerspecializinginlabeling, embellishmentsandtransfersforthesports,industriallaundry,workwearandhospitalityindustries.Theseacquisitions expandedtheproductportfolioinourSolutionsGroupreportablesegment.TheacquisitionsofSilverCrystal,Lion BrothersandThermopatcharereferredtocollectivelyasthe“2023Acquisitions.”

Theaggregatepurchaseconsideration,includingpurchaseconsiderationpayable,forthe2023Acquisitionswas approximately$231million.Wefundedthe2023Acquisitionsusingcashandcommercialpaperborrowings.Inaddition tothecashpaidatclosing,thesellersinoneoftheseacquisitionsareeligibleforearn-outpaymentsofupto$5million, subjecttotheacquiredcompanyachievingcertainpost-acquisitionperformancetargets.Asoftheacquisitiondate,we includedanestimateofthefairvalueoftheseearn-outpaymentsintheaggregatepurchaseconsideration.

The2023Acquisitionswerenotmaterial,individuallyorintheaggregate,totheConsolidatedFinancial Statements.

AccountingGuidanceUpdates

RefertoNote1,“SummaryofSignificantAccountingPolicies,”totheConsolidatedFinancialStatementsforthis information.

CashFlow

(Inmillions)202520242023

Netcashprovidedbyoperatingactivities$881.4$938.8$826.0 Purchasesofproperty,plantandequipment(169.0)(208.8)(265.3) Purchasesofsoftwareandotherdeferredcharges(31.4)(31.0)(19.8) Proceedsfromcompany-ownedlifeinsurancepolicies——48.1 PurchasesofArgentineBlueChipSwapsecurities—(34.2)— ProceedsfromsalesofArgentineBlueChipSwapsecurities—24.0— Proceedsfromsalesofproperty,plantandequipment22.6.61.0 Proceedsfrominsuranceandsales(purchases)ofinvestments,net3.510.11.9 Adjustedfreecashflow$707.1$699.5$591.9

In2025,netcashprovidedbyoperatingactivitiesdecreasedcomparedto2024primarilyduetohigherincentive compensationpayments,highertaxpayments,netofrefunds,lowernetincomeandhighertraderebatepayments, partiallyoffsetbytheprior-yearsettlementpaymentfortheAdasalegalmatterandchangesinoperationalworking capital.In2025,adjustedfreecashflowincreasedcomparedto2024primarilyduetolowerpurchasesofproperty,plant andequipmentandhigherproceedsfromsalesofproperty,plantandequipment,partiallyoffsetbylowernetcash providedbyoperatingactivities.

Outlook

Beginninginthefirstquarterof2025,theU.S.announcedtariffsongoodsimportedintotheU.S.fromnumerous countries,manyofwhichrespondedwithreciprocaltariffsandotheractionsongoodsimportedfromtheU.S.TheU.S. governmentcontinuestonegotiatewithcountriesregardingthetariffs.Asitrelatestothedirectimpactofthesetariffs,a relativelysmallportionofourglobalmaterialspurchasesisimpacted.Tomitigatethisdirectimpacttoouroperations,we haveimplementedstrategicsourcingadjustmentsandpricingactions.Theindirectimpactondemandforourproducts andsolutionsismoreuncertain.Whileamajorityofourproductsandsolutionsrelatestolessdiscretionaryconsumer staples,wealsoservemorediscretionaryandcyclicalmarkets,suchasindustrials,durablesandapparel.Theindirect impactoftariffsresultedinanaggregatelowsingledigitratedecreaseinsalesinouroverallapparelcategoriesoverthe second,thirdandfourthquartersof2025.Whileouroutlookassumesthattariff-relateduncertaintywillpersist,further developmentsininternationaltraderelationsandtheirbroaderimpacttomacroeconomicconditionscouldhavea materialadverseeffectonourbusiness.

Certainfactorsthatwebelievewillcontributetoour2026resultsaredescribedbelow.

•Weanticipateafavorableimpacttoourfull-yearnetsalesandoperatingincomefromforeigncurrency translation,basedonrecentrates.

•Weanticipateanunfavorableimpacttoouroperatingincomefromhigherinterestexpense.

•Weanticipateourfull-yeareffectivetaxratetobeinthemid-twentypercentrange.

•Weanticipateincrementalsavingsfromrestructuringactions,netoftransitioncosts.

•Weanticipateanunfavorableimpacttoouroperatingincomefromnormalizationofthemajorityofour2025 temporarycostsavings,whichwaslargelyrelatedtolowerincentivecompensation.

ANALYSISOFRESULTSOFOPERATIONS

IncomebeforeTaxes

(Inmillions)202520242023 Netsales$8,855.5$8,755.7$8,364.3 Costofproductssold6,309.26,225.06,086.8 Grossprofit2,546.32,530.72,277.5 Marketing,generalandadministrativeexpense1,422.51,415.31,313.7 Otherexpense(income),net77.571.6180.9 Interestexpense135.4117.0119.0 Othernon-operatingexpense(income),net(14.2)(26.7)(30.8) Incomebeforetaxes$925.1$953.5$694.7

GrossProfit

Grossprofitin2025increasedcomparedto2024primarilyduetobenefitsfromproductivityinitiatives,including materialre-engineeringandsavingsfromrestructuringactions,netoftransitioncosts,andhighervolume,partiallyoffset bythenetimpactofrawmaterialdeflation-relatedpricereductionsandhigheremployee-relatedcosts.

Grossprofitin2024increasedcomparedto2023primarilyduetohighervolumeandbenefitsfromproductivity initiatives,includingmaterialre-engineeringandsavingsfromrestructuringactions,netoftransitioncosts,partiallyoffset byhigheremployee-relatedcostsandthenetimpactofrawmaterialdeflation-relatedpricereductions.

Marketing,GeneralandAdministrativeExpense

Marketing,generalandadministrativeexpenseincreasedin2025comparedto2024primarilyduetogrowth investments,partiallyoffsetbybenefitsfromproductivityinitiatives,includingsavingsfromrestructuringactions,netof transitioncosts,andloweremployee-relatedcosts.

Marketing,generalandadministrativeexpenseincreasedin2024comparedto2023primarilyduetohigher employee-relatedcosts,partiallyoffsetbybenefitsfromproductivityinitiatives,includingsavingsfromrestructuring actions,netoftransitioncosts.

28 2025AnnualReport | AveryDennisonCorporation

OtherExpense(Income),Net

(Inmillions)202520242023

Otherexpense(income),net,bytype Restructuringcharges,netofreversals: Severanceandrelatedcosts,netofreversals$43.2$35.4$70.8 Assetimpairmentandleasecancellationcharges4.06.58.6

Otheritems: (Gain)lossonventureandotherinvestments,net23.319.21.5 LossesfromArgentinepesoremeasurementandBlueChipSwap transactions5.616.429.9

Transactionandrelatedcosts5.1.35.3 Outcomesoflegalmattersandsettlements,net9.2(6.2)64.3 (Gain)lossonsalesofassets(12.9)—.5 Otherexpense(income),net$77.5$71.6$180.9

RefertoNote13,“CostReductionActions,”totheConsolidatedFinancialStatementsformoreinformation regardingrestructuringcharges,netofreversals.

RefertoNote9,“FairValueMeasurements,”totheConsolidatedFinancialStatementsformoreinformation regarding(gain)lossonventureandotherinvestments,net.

RefertoNote8,“Contingencies,”andNote15,“SegmentandDisaggregatedRevenueInformation,”tothe ConsolidatedFinancialStatementsformoreinformationregardingoutcomesoflegalmattersandsettlements,net.

InterestExpense

Interestexpenseincreasedin2025comparedto2024primarilyduetothe €500millionofseniornotesweissued inSeptember2025andthe €500millionofseniornotesweissuedinNovember2024.

Interestexpensedecreasedin2024comparedto2023primarilyduetoadecreaseincommercialpaper borrowings,partiallyoffsetbyhigherdebtbalances.

OtherNon-OperatingExpense(Income),Net

Othernon-operatingincomedecreasedin2025comparedto2024primarilyduetolowerinterestincomeand benefitsfromnetactuarialgainsinourdefinedbenefitplans.

Othernon-operatingincomedecreasedin2024comparedto2023duetolowerinterestincome,primarilyin Argentina.

NetIncomeandEarningsperShare

(Inmillions,exceptpercentagesandpershareamounts)202520242023

Incomebeforetaxes$925.1$953.5$694.7

Provisionforincometaxes237.1248.6191.7 Netincome$688.0$704.9$503.0

Netincomepercommonshare$8.81$8.77$6.23

Netincomepercommonshare,assumingdilution8.798.736.20

ProvisionforIncomeTaxes

Oureffectivetaxratein2025decreasedcomparedto2024primarilyduetohigherbenefitsfromthereleaseof valuationallowanceasaresultofcompletingaforeignrestructuringtransactionandafavorablerulingrelatedto deductibilityofinterestexpense,partiallyoffsetbylowerexcesstaxbenefitsassociatedwithstock-basedpayments.Our AveryDennisonCorporation | 2025AnnualReport 29

effectivetaxratein2024decreasedcomparedto2023primarilyduetolowernon-deductibleexpensesresultingfrom theimpactoftheArgentinepesoremeasurementlossandlowertaxchargesfromtherecognitionofuncertaintax positionsincertainforeignjurisdictions,partiallyoffsetbyhighertaxchargesfromvaluationallowances.

RefertoNote14,“TaxesBasedonIncome,”totheConsolidatedFinancialStatementsformoreinformation.

RESULTSOFOPERATIONSBYREPORTABLESEGMENT

OurCODMusessegmentadjustedoperatingincometoevaluatesegmentperformanceandallocateresources. Segmentadjustedoperatingincomeisdefinedasincomebeforetaxesadjustedforotherexpense(income),net;interest expense,othernon-operatingexpense(income),net;andotheritems.

RefertoNote15,“SegmentandDisaggregatedRevenueInformation,”totheConsolidatedFinancialStatements formoreinformation.

MaterialsGroup (Inmillions)202520242023

Netsalesincludingintersegmentsales$6,267.3$6,175.8$5,968.4 Lessintersegmentsales(174.0)(162.8)(157.1) Netsales$6,093.3$6,013.0$5,811.3

Segmentadjustedoperatingincome(1) 922.2924.7789.2

(1) Segmentadjustedoperatingincomeexcludedotherexpense(income),net,andotheritemsof$31.6million,$40.4millionand$88.3millionin2025, 2024,and2023,respectively.Exclusionsrelatedtochargesassociatedwithrestructuringactions,outcomesoflegalmattersandsettlements,net, (gain)lossonventureandotherinvestments,transactionandrelatedcosts,lossesfromArgentinepesoremeasurementandBlueChipSwap transactionsand(gain)lossonsalesofassets.

NetSales

Thefactorsimpactingreportednetsaleschangeareshowninthetablebelow.

Reclassificationofsalesbetweensegments(1)— Foreigncurrencytranslation(1)— Impactofextradays

Saleschangeex.currency(1) —4

Acquisitions

Organicsaleschange(1) (1)%4% (1) Totalsmaynotsumduetorounding.

In2025,netsalesonanorganicbasisdecreasedcomparedtotheprioryearprimarilyduetotheimpactofraw materialdeflation-relatedpricereductions,partiallyoffsetbyfavorablevolume/mix.Onanorganicbasis,netsales increasedbyalowsingledigitrateinNorthAmerica,anddecreasedbylowsingledigitratesinEurope,theMiddleEast andNorthAfrica,AsiaPacificandLatinAmerica.

In2024,netsalesonanorganicbasisincreasedcomparedtotheprioryearduetohighervolume,partiallyoffset bytheimpactofrawmaterialdeflation-relatedpricereductions.Onanorganicbasis,netsalesincreasedbylowsingle digitratesinNorthAmericaandEurope,theMiddleEastandNorthAfricaandmid-singledigitratesinAsiaPacificand LatinAmerica.

SegmentAdjustedOperatingIncome

Segmentadjustedoperatingincomedecreasedin2025comparedto2024primarilyduethenetimpactofpricing andrawmaterialinputcosts,aswellashigheremployee-relatedcosts,partiallyoffsetbyfavorablevolume/mixand benefitsfromproductivityinitiatives,includingmaterialre-engineeringandsavingsfromrestructuringactions,netof transitioncosts.

30 2025AnnualReport | AveryDennisonCorporation

Segmentadjustedoperatingincomeincreasedin2024comparedto2023primarilyduetohighervolumeand benefitsfromproductivityinitiatives,includingmaterialre-engineeringandsavingsfromrestructuringactions,netof transitioncosts,partiallyoffsetbyhigheremployee-relatedcostsandthenetimpactofpricingandrawmaterialinput costs.

SolutionsGroup

(Inmillions)202520242023

Netsalesincludingintersegmentsales$2,817.3$2,795.0$2,588.5

Lessintersegmentsales(55.1)(52.3)(35.5) Netsales$2,762.2$2,742.7$2,553.0

Segmentadjustedoperatingincome(1) 286.3289.3252.0 (1) Segmentadjustedoperatingincomeexcludedotherexpense(income),net,andotheritemsof$39.0million,$37.5millionand$86.3millionin2025, 2024,and2023,respectively.Exclusionsrelatedtochargesassociatedwithrestructuringactions,outcomesoflegalmattersandsettlements,net, (gain)lossonventureandotherinvestments,(gain)lossonsalesofassetsandtransactionandrelatedcosts.

NetSales

Thefactorsimpactingreportednetsaleschangeareshowninthetablebelow.

(1) Totalsmaynotsumduetorounding.

In2025,onanorganicbasis,netsalesincreasedbyamid-singledigitrateinhigh-valuecategoriesanddecreased byalowsingledigitrateinthebasebusinesscomparedtotheprioryear.Company-wide,onanorganicbasis,salesof intelligentlabelsincreasedbyalowsingledigitratecomparedtotheprioryear.

In2024,onanorganicbasis,netsalesincreasedbyalowsingledigitrateinhigh-valuecategoriesanda low-doubledigitrateinthebasebusinesscomparedtotheprioryear.Company-wide,onanorganicbasis,salesof intelligentlabelsincreasedbyahighsingledigitratecomparedtotheprioryear.

SegmentAdjustedOperatingIncome

Segmentadjustedoperatingincomedecreasedin2025comparedto2024primarilyduetohigher employee-relatedcosts,thenetimpactofpricingandrawmaterialinputcosts,andgrowthinvestments,partiallyoffset bybenefitsfromproductivityinitiatives,includingsavingsfromrestructuringactions,netoftransitioncosts,andhigher volume.

Segmentadjustedoperatingincomeincreasedin2024comparedto2023primarilyduetohighervolumeand benefitsfromproductivityinitiatives,includingsavingsfromrestructuringactions,netoftransitioncosts,partiallyoffset byhigheremployee-relatedcostsandgrowthinvestments.

FINANCIALCONDITION

Liquidity

OperatingActivities

(Inmillions)202520242023

Netincome$688.0$704.9$503.0

Depreciation206.4197.1187.4

Amortization121.8115.1111.0

Provisionforcreditlossesandsalesreturns51.247.449.9

Stock-basedcompensation27.928.722.3

Deferredtaxesandothernon-cashtaxes(19.9)(18.5)(24.4)

Othernon-cashexpenseandloss(incomeandgain),net48.867.237.1

Tradeaccountsreceivable44.0(107.3)(16.7)

Inventories53.2(90.7)111.7

Accountspayable(144.4)106.7(87.6)

Taxesonincome(5.1)40.2(18.7)

Otherassets3.8(48.0)37.7

Otherliabilities(194.3)(104.0)(86.7)

Netcashprovidedbyoperatingactivities$881.4$938.8$826.0

In2025,cashflowprovidedbyoperatingactivitiesdecreasedcomparedto2024primarilyduetohigherincentive compensationpayments,highertaxpayments,netofrefunds,lowernetincomeandhighertraderebatepayments, partiallyoffsetbytheprior-yearsettlementpaymentfortheAdasalegalmatterandchangesinoperationalworking capital.

In2024,cashflowprovidedbyoperatingactivitiesincreasedcomparedto2023primarilyduetohighernet income,lowerincentivecompensationpaymentsandlowertaxpayments,netofrefunds,partiallyoffsetbychangesin operationalworkingcapitalandthesettlementpaymentfortheAdasalegalmatter.

InvestingActivities

(Inmillions)202520242023

Purchasesofproperty,plantandequipment$(169.0)$(208.8)$(265.3) Purchasesofsoftwareandotherdeferredcharges(31.4)(31.0)(19.8) Proceedsfromcompany-ownedlifeinsurancepolicies——48.1 PurchasesofArgentineBlueChipSwapsecurities—(34.2)— ProceedsfromsalesofArgentineBlueChipSwapsecurities—24.0— Proceedsfromsalesofproperty,plantandequipment22.6.61.0 Proceedsfrominsuranceandsales(purchases)ofinvestments,net3.510.11.9 Proceedsfromsettlementofnetinvestmenthedges6.2—— Paymentsforsettlementofnetinvestmenthedges(26.1)—— Paymentsforacquisitions,netofcashacquired,andventure investments(401.8)(3.8)(224.9) Netcashusedininvestingactivities$(596.0)$(243.1)$(459.0)

PurchasesofProperty,PlantandEquipment

In2025,inourMaterialsGroupreportablesegment,weprimarilyinvestedinequipmenttosupportgrowthinthe U.S.,certaincountriesinEuropeandcertaincountriesinAsiaPacific,primarilyChina;inourSolutionsGroupreportable segment,weprimarilyinvestedinbuildingsandequipmenttosupportgrowthincertaincountriesinAsiaPacific, includingChinaandVietnam,theU.S.andcertaincountriesinLatinAmerica,primarilyMexico.

In2024,inourSolutionsGroupreportablesegment,weprimarilyinvestedinbuildingsandequipmenttosupport growthincertaincountriesinAsiaPacific,includingChinaandMalaysia,theU.S.andcertaincountriesinLatinAmerica, 32 2025AnnualReport | AveryDennisonCorporation

primarilyMexico;inourMaterialsGroupreportablesegment,weprimarilyinvestedinbuildingsandequipmenttosupport growthintheU.S.,andcertaincountriesinEurope,primarilyFrance,andAsiaPacific,primarilyChina.

In2023,inourSolutionsGroupreportablesegment,weprimarilyinvestedinbuildingsandequipmenttosupport growthincertaincountriesinAsiaPacific,primarilyMalaysia,theU.S.andcertaincountriesinLatinAmerica,primarily Mexico;inourMaterialsGroupreportablesegment,weprimarilyinvestedinbuildingsandequipmenttosupportgrowth intheU.S.andcertaincountriesinEurope,primarilyFrance,andAsiaPacific,primarilyChina.

PurchasesofSoftwareandOtherDeferredCharges

In2025,weprimarilyinvestedininformationtechnologyupgradesintheU.S.In2024and2023,weinvestedin informationtechnologyupgradesworldwide.

ProceedsfromCompany-OwnedLifeInsurancePolicies

In2023,weutilizedapproximately$48millionofthecashsurrendervalueavailableunderourcompany-owned lifeinsurancepolicies.

PurchasesandProceedsfromArgentineBlueChipSwapSecurities

In2024,weenteredintoBlueChipSwaptransactionsthatresultedinlossesofapproximately$10million.Refer toNote16,“SupplementalFinancialInformation,”totheConsolidatedFinancialStatementsformoreinformation.

ProceedsfromSalesofProperty,PlantandEquipment

In2025,weprimarilyreceivedproceedsfromthesalesofpropertiesinChina,VietnamandArgentina.

ProceedsfromInsuranceandSales(Purchases)Investments,net

In2024,wereceivedapproximately$8millionofinsuranceproceedsforlossesrelatedtodamagedproperty,plant andequipment.

SettlementofNetInvestmentHedges

In2025,wesettled €920millionnotionalamountofnetinvestmenthedges.

PaymentsforAcquisitions,NetofCashAcquired,andVentureInvestments

Wepaidconsideration,netofcashacquired,ofapproximately$390millionforthe2025acquisitionofTaylor Adhesivesand$223millionforthe2023Acquisitions.WefundedtheTaylorAdhesivesacquisitionusingcashand proceedsfromourissuanceofseniornotesinSeptember2025.Wefundedthe2023Acquisitionsusingcashand commercialpaperborrowings.Wealsomadecertainventureinvestmentsin2025,2024and2023.

RefertoNote2,“BusinessAcquisitions,”totheConsolidatedFinancialStatementsformoreinformation.

FinancingActivities

(Inmillions)202520242023

Netincrease(decrease)inborrowingswithmaturitiesofthree monthsorless$422.5$(269.0)$(36.6) Additionallong-termborrowings576.5539.2394.9 Repaymentsoflong-termdebtandfinanceleases(559.4)(308.1)(255.9) Dividendspaid(288.4)(277.5)(256.7) Sharerepurchases(572.3)(247.5)(137.5) Net(taxwithholding)proceedsrelatedtostock-basedcompensation(12.8)(8.4)(23.8) Proceedsfromsettlementoffairvaluehedges32.8—— Paymentsforsettlementoffairvaluehedges(13.5)—— Other (.3)(4.8)(1.6) Netcashusedinfinancingactivities$(414.9)$(576.1)$(317.2)

33

BorrowingsandRepaymentofDebt

During2025,2024and2023,ourcommercialpaperborrowingsfundedvariousactivities,includingrepayments oflong-termdebt,acquisitions,dividendpayments,sharerepurchases,capitalexpendituresandothergeneralcorporate purposes.

InSeptember2025,weissued €500millionofseniornotes,dueSeptember11,2035,whichbearaninterestrate of4.000%peryear,payableannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,wereapproximately €494million($577million),whichweusedinparttofinancethe TaylorAdhesivesacquisitionandrepayexistingindebtednessunderourcommercialpaperprogram.RefertoNote2, “BusinessAcquisitions,”totheConsolidatedFinancialStatementsformoreinformationregardingouracquisitionof TaylorAdhesives.

Inthethirdquarterof2025,werepaidour$5millionofmedium-termnotesatmaturityusingcashflowsfrom operationsandcommercialpaperborrowings.

Inthesecondquarterof2025,werepaidour$25millionofmedium-termnotesatmaturityusingcashflowsfrom operationsandcommercialpaperborrowings.

Inthefirstquarterof2025,werepaidour €500millionofseniornotesatmaturityusingthenetproceedsfromthe €500millionofseniornotesweissuedinthefourthquarterof2024,cashflowsfromoperationsandcommercialpaper borrowings.

InNovember2024,weissued €500millionofseniornotes,dueNovember4,2034,whichbearaninterestrateof 3.750%peryear,payableannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,wereapproximately €495million($539million),whichweusedtorepayour €500millionofseniornotesmaturinginMarch2025andforgeneralcorporatepurposes.

InAugust2024,werepaidour$300millionofseniornotesatmaturityusingcashflowsfromoperationsand commercialpaperborrowings.

InMarch2023,weissued$400millionofseniornotes,dueMarch15,2033,whichbearaninterestrateof 5.750%peryear,payablesemiannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,were$394.9million,whichweusedtorepayindebtednessunderourcommercialpaper programsandour$250millionofseniornotesthatmaturedonApril15,2023.

RefertoNote4,“Debt”totheConsolidatedFinancialStatementsformoreinformation.

DividendsPaid

Wepaiddividendspershareof$3.70,$3.45and$3.18in2025,2024and2023,respectively.InApril2025,we increasedourquarterlydividendrateto$0.94pershare,representinganincreaseofapproximately7%fromourprevious quarterlydividendrateof$0.88pershare.InApril2024,weincreasedourquarterlydividendto$0.88pershare, representinganincreaseofapproximately9%fromourpreviousdividendrateof$0.81pershare.

ShareRepurchases

Fromtimetotime,ourBoardauthorizestherepurchaseofsharesofouroutstandingcommonstock.Repurchased sharesmaybereissuedunderourlong-termincentiveplanorusedforothercorporatepurposes.In2025,2024and 2023,werepurchasedapproximately3.2million,1.2millionand0.8millionsharesofourcommonstock,respectively.

InApril2025,ourBoardauthorizedtherepurchaseofsharesofourcommonstockwithafairmarketvalueofup to$750million,excludinganyfees,commissionsorotherexpensesrelatedtosuchpurchasesandinadditiontothe amountoutstandingunderourpreviousBoardauthorization.Sharesofourcommonstockintheaggregateamountof $526.3millionremainedauthorizedforrepurchaseunderthisBoardauthorizationasofDecember31,2025.Board authorizationsremainineffectuntilsharesintheamountauthorizedthereunderhavebeenrepurchased.

Net(TaxWithholding)ProceedsRelatedtoStock-BasedCompensation

Approximately0.1millionstockoptionswereexercisedin2024,resultinginproceedsofapproximately $10million.RefertoNote12,“Long-TermIncentiveCompensation,”totheConsolidatedFinancialStatementsformore information.

34 2025AnnualReport | AveryDennisonCorporation

SettlementofFairValueHedges

In2025,wesettled €920millionnotionalamountoffairvaluehedges.

AnalysisofSelectedBalanceSheetAccounts

Long-livedAssets

Property,plantandequipment,net,increasedbyapproximately$21millionto$1.61billionatyear-end2025, whichprimarilyreflectedpurchasesofproperty,plantandequipmentandtheimpactofforeigncurrencytranslation, partiallyoffsetbycurrentyeardepreciationexpense.

Goodwillincreasedbyapproximately$296millionto$2.27billionatyear-end2025,whichprimarilyreflectedthe acquiredgoodwillassociatedwiththeTaylorAdhesivesacquisitionandtheimpactofforeigncurrencytranslation.

Otherintangiblesresultingfrombusinessacquisitions,net,increasedbyapproximately$72millionto $827.5millionatyear-end2025,primarilyreflectingthevaluationofintangibleassetsassociatedwiththeTaylor Adhesivesacquisition,partiallyoffsetbycurrentyearamortizationexpense.

RefertoNote3,“GoodwillandOtherIntangiblesResultingfromBusinessAcquisitions,”totheConsolidated FinancialStatementsformoreinformation.

Otherassetsincreasedbyapproximately$81millionto$978.4millionatyear-end2025,primarilyreflectingan increaseinthefundedstatusofcertainofournon-U.S.pensionplansandhighercapitalizedimplementationcosts associatedwithourcloudcomputingarrangements.

Shareholders’EquityAccounts

Thebalanceofourshareholders’equitydecreasedbyapproximately$70millionto$2.24billionatyear-end2025. RefertoNote11,“SupplementalEquityandComprehensiveIncomeInformation,”totheConsolidatedFinancial Statementsformoreinformation.

ImpactofForeignCurrencyTranslation

(Inmillions)

20252024 Changeinnetsales

$29$(33)

In2025,internationaloperationsgeneratedapproximately69%ofournetsales.Ourfutureresultsaresubjectto changesinworldwideeconomicconditions,tariffs,social,geopolitical,andmarketconditionsintheregionsinwhichwe operateandtheimpactoffluctuationsinforeigncurrencyexchangeandinterestrates.

Thefavorableimpactofforeigncurrencytranslationonnetsalesin2025comparedto2024wasprimarilyrelated toeuro-denominatedsales,partiallyoffsetbysalesinIndiaandBrazil.

EffectofForeignCurrencyTransactions

Theimpactonnetincomefromforeigncurrencytransactionsislargelymitigatedbecausethecostsofour productsaregenerallydenominatedinthesamecurrenciesinwhichtheyaresold.Inaddition,toreduceourincomeand cashflowexposuretotransactionsinforeigncurrencies,weenterintoforeigncurrencyexchangeforward,optionand swapcontractswhereavailableandappropriate.RefertoNote5,“FinancialInstruments,”totheConsolidatedFinancial Statementsformoreinformation.

During2025,2024and2023,theArgentinepesodevaluedsignificantlycomparedtotheU.S.dollar,resultingin remeasurementlossesofapproximately$6million,$16millionand$30million,respectively,whichwereincludedin “Otherexpense(income),net”intheConsolidatedStatementsofIncome.The2024lossesincludedBlueChipSwap transactionsthatresultedinlossesofapproximately$10million.RefertoNote16,“SupplementalFinancialInformation,” totheConsolidatedFinancialStatementsformoreinformation.

AnalysisofSelectedFinancialRatios

Weutilizethefinancialratiosdiscussedbelowtoassessourfinancialconditionandoperatingperformance.We believethisinformationassistsourinvestorsinunderstandingthefactorsimpactingourcashflowotherthannetincome andcapitalexpenditures.

OperationalWorkingCapitalRatio

Operationalworkingcapital,asapercentageofannualizedcurrent-quarternetsales,isreconciledtoworking capitalbelow.Ourobjectiveistominimizeourinvestmentinoperationalworkingcapital,asapercentageofannualized current-quarternetsales,tomaximizeourcashflowandreturnoninvestment.Operationalworkingcapital,asa percentageofannualizedcurrent-quarternetsales,in2025increasedcomparedto2024.Furtherinformationregarding thecomponentsofoperationalworkingcapitalisprovidedbelow.

(Inmillions,exceptpercentages)20252024 (A)Workingcapital$336.7$216.1

Reconcilingitems: Cashandcashequivalents(202.8)(329.1) Othercurrentassets(307.8)(305.3) Short-termborrowingsandcurrentportionoflong-termdebtandfinanceleases522.9592.3 Currentincometaxespayableandothercurrentaccruedliabilities869.0929.6 (B)Operationalworkingcapital$1,218.0$1,103.6 (C)Fourth-quarternetsales,annualized$9,084.8$8,742.8 Operationalworkingcapital,asapercentageofannualizedcurrent-quarternetsales (B)÷(C)

AccountsReceivableRatio

Theaveragenumberofdayssalesoutstandingwas63daysin2025comparedto61daysin2024,calculated usingtheaccountsreceivablebalanceatyear-enddividedbytheaveragedailysalesinthefourthquarterof2025and 2024,respectively.Theincreaseinaveragenumberofdayssalesoutstandingprimarilyreflectedtheimpactofforeign currencytranslation.

InventoryRatio

Averageinventoryturnoverwas6.4inboth2025and2024,calculatedusingtheannualizedfourth-quartercost ofproductssoldin2025and2024,respectively,anddividedbytheinventorybalanceattherespectiveyear-end.

AccountsPayableRatio

Theaveragenumberofdayspayableoutstandingwas74daysin2025comparedto77daysin2024,calculated usingtheaccountspayablebalanceatyear-enddividedbytheannualizedfourth-quartercostofproductssoldin2025 and2024,respectively.Thedecreaseinaveragenumberofdayspayableoutstandingprimarilyreflectedthetimingof vendorpayments,partiallyoffsetbytheimpactofforeigncurrencytranslation.

CapitalResources

Capitalresourcesincludecashflowsfromoperations,cashandcashequivalentsanddebtfinancing,including accesstocommercialpaperborrowingssupportedbyourrevolvingcreditfacility(the“Revolver”).Weusethese resourcestofundouroperationalneeds.

Atyear-end2025,wehadcashandcashequivalentsof$202.8millionheldinaccountsatthird-partyfinancial institutionsinnumerouslocationsthroughouttheworld.Atyear-end2025,themajorityofourcashandcashequivalents washeldbyourforeignsubsidiaries,primarilyintheAsiaPacificregion.

TomeetourU.S.cashrequirements,wehaveseveralcost-effectiveliquidityoptionsavailable.Theseoptions includeborrowingfundsatreasonablerates,includingborrowingsfromourforeignsubsidiaries,andrepatriatingforeign earningsandprofits.However,ifweweretorepatriateforeignearningsandprofits,aportionwouldbesubjecttocash paymentsofwithholdingtaxesimposedbyforeigntaxauthorities.AdditionalU.S.taxesmayalsoresultfromtheimpact offoreigncurrencyfluctuationsrelatedtotheseearningsandprofits.

InJune2024,weenteredintoaCreditAgreement(the“CreditAgreement”)relatedtoourRevolvertoborrowup toanaggregateof$1.2billionthroughitsmaturitydateofJune26,2029.TheRevolverrefinancedthepriorrevolving 36 2025AnnualReport | AveryDennisonCorporation

creditfacilityundertheFifthAmendedandRestatedCreditAgreementdatedasofFebruary13,2020,asamended. PursuanttotheCreditAgreement,thecommitmentsundertheRevolvermaybeincreasedbyupto$600million,subject tolenderapprovalsandcustomaryrequirements.Undercertaincircumstances,wemayrequestthatthecommitments undertheRevolverbeextendedforone-yearperiodsinaccordancewiththetermsandconditionsoftheCredit Agreement.WeusetheRevolverasaback-upfacilityforourcommercialpaperprogramandforothercorporate purposes.

TheRevolvercontainsafinancialcovenantthatrequiresustomaintainamaximumleverageratio(calculatedasa ratioofconsolidateddebtminusunrestrictedcashandcashequivalentsinexcessof$50milliontoconsolidatedEBITDA asdefinedintheagreement)ofnotmorethan3.50to1.00;providedthat,intheeventofanacquisitionbyusthat exceeds$250million,whichoccurredwhenweacquiredTaylorAdhesives,themaximumleverageratioincreasesto4.00 to1.00forthefiscalquarterinwhichtheacquisitionoccursandthethreefiscalquartersimmediatelyfollowingthatfiscal quarter.AsofDecember31,2025andDecember28,2024,ourratiowassubstantiallybelowthemaximumratioallowed bytheRevolver.

InadditiontotheRevolver,wehaveshort-termlinesofcreditavailableinvariouscountriesofapproximately $222millionintheaggregateatDecember31,2025.Theselinesmaybecancelledatanytimebyusortheissuing banks.Borrowingsunderourshort-termlinesofcreditwerenotmaterialasofDecember31,2025orDecember28, 2024.

Weareexposedtofinancialmarketriskresultingfromchangesininterestandforeigncurrencyexchangerates, andtopossibleliquidityandcreditrisksofourcounterparties.

CapitalfromDebt

Thecarryingvalueofourtotaldebtincreasedbyapproximately$581millionto$3.73billionatyear-end2025 fromyear-end2024,primarilyreflectingourSeptember2025issuanceof €500millionofseniornotesduein2035, highercommercialpaperborrowingsandtherevaluationofoureuro-denominateddebt,partiallyoffsetbyourrepayment of €500millionofseniornotes,$25millionofmedium-termnotesand$5millionofmediumtermnotesattheirmaturity inthefirst,secondandthirdquartersof2025,respectively.

Creditratingsareasignificantfactorinourabilitytoraiseshort-andlong-termfinancing.Thecreditratings assignedtoourcompanyalsoimpacttheinterestrateswepayandouraccesstocommercialpaper,creditfacilities,and otherborrowings.Adowngradeofourshort-termcreditratingscouldimpactourabilitytoaccesscommercialpaper markets.Ifouraccesstocommercialpapermarketsweretobecomelimited,theRevolverandourothercreditfacilities wouldbeavailabletomeetourshort-termfundingrequirements.Whendeterminingourcreditrating,webelievethat ratingagenciesprimarilyconsiderourcompetitiveposition,businessoutlook,consistencyofcashflows,debtleveland liquidity,geographicfootprintandmanagementteam.Weremaincommittedtomaintaininganinvestmentgraderating.

FairValueofDebt

Theestimatedfairvalueofourlong-termdebtisprimarilybasedonthecreditspreadaboveU.S.Treasury securitiesoreurogovernmentbondsecurities,asapplicable,onnoteswithsimilarrates,creditratingsandremaining maturities.Thefairvalueofshort-termborrowings,whichincludescommercialpaperissuancesandshort-termlinesof credit,approximatestheircarryingvaluegiventheirshortduration.Thefairvalueofourtotaldebtwas$3.67billionat December31,2025and$3.01billionatDecember28,2024.Fairvalueamountsweredeterminedbasedprimarilyon Level2inputs.RefertoNote1,“SummaryofSignificantAccountingPolicies,”formoreinformation.

ContractualObligations,CommitmentsandOff-BalanceSheetArrangements

MaterialCashRequirementsatEndofYear2025

Wehaveshort-andlong-termmaterialcashrequirementsrelatedtoourcontractualobligationsthatariseinthe normalcourseofbusiness.Inadditiontoprincipalandinterestpaymentsonouroutstandingdebtobligations,our contractualobligationsprimarilyconsistofleasepayments.

RefertoNote4,“Debt,”totheConsolidatedFinancialStatementsforasummaryofourprincipalpaymentsfor short-termborrowingsandlong-termdebtobligationsasofDecember31,2025.Futureinterestpaymentsforlong-term debtasofDecember31,2025areapproximately$124millionin2026;$124millionin2027;$124millionin2028; AveryDennisonCorporation | 2025AnnualReport 37

$99millionin2029;$94millionin2030;and$302millionfrom2031throughmaturity.RefertoNote7,“Commitments andLeases,”totheConsolidatedFinancialStatementsforasummaryofourleaseobligationsasofDecember31,2025.

RefertoNote6,“PensionandOtherPostretirementBenefits,”totheConsolidatedFinancialStatementsfor informationregardingourdefinedbenefitpensionplancontributionsandfuturebenefitpayments,deferred compensationplanbenefitpaymentsandunfundedterminationindemnitybenefits.

RefertoNote12,“Long-termIncentiveCompensation,”totheConsolidatedFinancialStatementsforinformation regardingcash-basedawardstoemployeesunderoneofourlong-termincentivecompensationplans.

RefertoNote14,“TaxesBasedonIncome,”totheConsolidatedFinancialStatementsformoreinformation regardingourunrecognizedtaxbenefitsofapproximately$81million.

CRITICALACCOUNTINGESTIMATES

ThepreparationoffinancialstatementsinconformitywithGAAPrequiresmanagementtomakeestimatesand assumptionsforthereportingperiodandasofthefinancialstatementdate.Theseestimatesandassumptionsaffectour reportedamountsofassetsandliabilities,disclosureofcontingentliabilities,andreportedamountsofrevenueand expense.Actualresultscoulddifferfromtheseestimates.

Criticalaccountingestimatesarethosethatareimportanttoourfinancialconditionandresults,andwhichrequire ustomakedifficult,subjectiveand/orcomplexjudgments.Criticalaccountingestimatescoveraccountingmattersthatare inherentlyuncertainbecausetheirfutureresolutionisunknown.Webelieveourcriticalaccountingestimatesinclude accountingforgoodwill,businesscombinations,pensionandpostretirementbenefits,taxesbasedonincomeandlongtermincentivecompensation.

Goodwill

Businesscombinationsareaccountedforusingtheacquisitionmethod,withtheexcessoftheacquisitioncost overthefairvalueofacquirednettangibleassetsandidentifiedintangibleassetsconsideredgoodwill.Asaresult,we disclosegoodwillseparatelyfromotherintangibleassets.Ourreportingunitsarecomposedofeitheradiscretebusiness oranaggregationofbusinesseswithsimilareconomiccharacteristics.

Weperformourannualimpairmenttestofgoodwillduringthefourthquarter.Certainfactorsmaycauseusto performanimpairmenttestpriortothefourthquarter,includingsignificantunderperformanceofabusinessrelativeto expectedoperatingresults,significantadverseeconomicorindustrytrends,significantdeclineinourmarket capitalizationforanextendedperiodoftimerelativetonetbookvalue,oradecisiontodivestaportionofareportingunit. Inperformingimpairmenttests,wehavetheoptiontofirstassessqualitativefactorstodeterminewhetheritisnecessary toperformaquantitativeassessmentforgoodwillimpairment.Ifthequalitativeassessmentindicatesthatitismorelikely-than-notthatthefairvalueofareportingunitislessthanitscarryingvalue,weperformaquantitativeassessment.

Aquantitativeassessmentprimarilyconsistsofusingthepresentvalue(discountedcashflow)methodto determinethefairvalueofreportingunitswithgoodwill.Wecomparethefairvalueofeachreportingunittoitscarrying amount,and,totheextentthecarryingamountexceedstheunit’sfairvalue,werecognizeanimpairmentofgoodwillfor theexcessuptotheamountofgoodwillofthatreportingunit.

Inconsultationwithoutsidespecialists,weestimatethefairvalueofourreportingunitsusingvariousvaluation techniques,withtheprimarytechniquebeingadiscountedcashflowanalysis.Adiscountedcashflowanalysisrequires ustomakevariousassumptions,includingareportingunit’sforecastedsales,profitmarginsandgrowthrates,aswellas discountrates.Ourassumptionsaboutdiscountratesarebasedontheweightedaveragecostofcapitalofcomparable companies.Ourassumptionsaboutsales,profitmarginsandgrowthratesarebasedonourforecasts,businessplans, economicprojections,anticipatedfuturecashflows,andmarketplacedata.Wealsomakeassumptionsforvarying perpetualgrowthratesforperiodsbeyondourlong-termbusinessplanperiod.Webaseourfairvalueestimateson projectedfinancialinformationandassumptionsthatwebelievearereasonable.However,actualfutureresultsmaydiffer materiallyfromtheseestimatesandprojections.Thevaluationmethodologyweusetoestimatethefairvalueofreporting unitsrequiresinputsandassumptionsthatreflectcurrentmarketconditions,aswellastheimpactofplannedbusiness andoperationalstrategiesthatrequiremanagementjudgment.Theestimatedfairvaluecouldincreaseordecrease dependingonchangesintheinputsandassumptions.

38 2025AnnualReport | AveryDennisonCorporation

Inourannualimpairmenttestinthefourthquarterof2025,thegoodwillofallreportingunitsinourMaterials GroupandSolutionsGroupreportablesegmentsweretestedutilizingaqualitativeassessment.Basedonthis assessment,wedeterminedthatthefairvaluesofthesereportingunitsweremore-likely-than-notgreaterthantheir respectivecarryingvalues.Therefore,thegoodwillofourreportingunitswasnotimpaired.

BusinessCombinations

TheresultsofacquiredbusinessesareincludedinourConsolidatedFinancialStatementsfromtheiracquisition date.Assetsandliabilitiesofanacquiredbusinessarerecordedattheirestimatedfairvaluesontheacquisitiondate.We engagethird-partyvaluationspecialiststoassistusindeterminingthesefairvalueswherenecessary.Anyexcess considerationoverthefairvalueofassetsacquiredandliabilitiesassumedisrecognizedasgoodwill.

Theallocationofpurchasepricerequiresmanagementtomakesignificantestimatesandassumptions.Whilewe believeourassumptionsandestimatesarereasonable,theyareinherentlyuncertainandbasedinpartonourexperience, marketconditions,ourprojectionsoffutureperformance,andinformationobtainedfrommanagementoftheacquired companies.Criticalestimatesinclude,butarenotlimitedto,thefollowing:

•Futurerevenueandprofitmargins;

•Royaltyrates;

•Discountrates;

•Customerretentionrates;

•Technologymigrationcurves;and

•Usefullivesassignedtoacquiredintangibleassets.

Acquiredidentifiablefinite-livedintangibleassetsareamortizedonastraight-linebasistomarketing,generaland administrativeexpenseovertheirestimatedusefullives.

PensionandPostretirementBenefits

Theassumptionsweuseindeterminingprojectedbenefitobligationsandthefairvalueofplanassetsforour definedbenefitpensionplansandotherpostretirementbenefitplansareevaluatedbymanagementinconsultationwith outsideactuaries.Intheeventthatwedeterminethatchangesarewarrantedintheassumptionsweuse,suchasthe discountrate,expectedlong-termrateofreturnorhealthcarecosts,futurepensionandpostretirementbenefitexpenses couldincreaseordecrease.Duetochangesinmarketconditionsorparticipantpopulation,theactuarialassumptionswe usemaydifferfromactualresults,whichcouldhaveasignificantimpactonourpensionandpostretirementliabilitiesand relatedcosts.

DiscountRate

Inconsultationwithouractuaries,weannuallyreviewanddeterminethediscountratestouseinvaluingour postretirementobligations.Theassumeddiscountratesforournon-U.S.pensionplansreflectmarketratesforcurrently availablehighqualitycorporatebonds.Ourdiscountratesaredeterminedbyevaluatingyieldcurvesconsistingoflarge populationsofhighqualitycorporatebonds.Theprojectedpensionbenefitpaymentstreamsarethenmatchedwiththe bondportfoliostodeterminearatethatreflectstheliabilitydurationuniquetoourpensionandpostretirementbenefit plans.AsofDecember31,2025,a0.25%increaseinthediscountratesassociatedwithournon-U.S.planswouldhave decreasedouryear-endprojectedbenefitobligationbyapproximately$26millionandwouldnothaveasignificant impactonexpectedperiodicbenefitcostforthecomingyear.Conversely,a0.25%decreaseinthediscountrates associatedwithournon-U.S.planswouldhaveincreasedouryear-endprojectedbenefitobligationbyapproximately $26millionandwouldnothaveasignificantimpactonexpectedperiodicbenefitcostforthecomingyear.

Weusethefullyieldcurveapproachtoestimatetheserviceandinterestcostcomponentsofnetperiodicbenefit costforourpensionandotherpostretirementbenefitplans.Usingthisapproach,weapplymultiplediscountratesfroma yieldcurvecomposedoftheratesofreturnonseveralhundredhigh-quality,fixedincomecorporatebondsavailableat themeasurementdate.Webelievethisapproachprovidesamoreprecisemeasurementofserviceandinterestcostby aligningthetimingofplanliabilitycashflowstothecorrespondingratesontheyieldcurve.

Long-termReturnonPlanAssets

Wedeterminethelong-termrateofreturnassumptionforplanassetsbyreviewingthehistoricalandexpected returnsofboththeequityandfixedincomemarkets,takingintoaccountourassetallocation,thecorrelationbetween returnsinourassetclasses,andourmixofactiveandpassiveinvestments.Additionally,currentmarketconditions, includinginterestrates,areevaluatedandmarketdataisreviewedforreasonablenessandappropriateness.Anincrease ordecreaseof0.25%inthelong-termreturnonassetsassociatedwithournon-U.S.planswouldhavedecreasedor increasedourexpectedperiodicbenefitcostforthecomingyearbyapproximately$2million.

TaxesBasedonIncome

BecausewearesubjecttoincometaxintheU.S.andmultipleforeignjurisdictions,judgmentisrequiredin evaluatingandestimatingourworldwideprovisionforincometaxes,accrualsfortaxes,deferredtaxesandtaxpositions. OurprovisionforincometaxesisdeterminedusingtheassetandliabilityapproachinaccordancewithGAAP.Underthis approach,deferredtaxassetsrepresentamountsavailabletoreduceincometaxespayableinfutureyears.Theseassets arisebecauseoftemporarydifferencesbetweenthefinancialreportingandtaxbasesofassetsandliabilities,aswellas fromnetoperatinglossesandtaxcreditcarryforwards.Theseamountsareadjusted,asappropriate,toreflectchangesin taxratesexpectedtobeineffectwhenthetemporarydifferencesreverse.Weevaluatetherealizabilityofthesefuture taxdeductionsandcreditsbyassessingtheperiodoverwhichrecoverabilityisallowedbylawandtheadequacyof futureexpectedtaxableincomefromallsources,includingreversaloftaxabletemporarydifferences,forecastedoperating earningsandavailabletaxplanningstrategies.Ourassessmentofthesesourcesofincomereliesheavilyonestimates. Ourforecastedearningsbyjurisdictionaredeterminedbyhowweoperateourbusinessandanychangestoour operationsmayaffectoureffectivetaxrate.Forexample,ourfutureincometaxratecouldbeadverselyaffectedby earningsbeinglowerthananticipatedinjurisdictionsinwhichwehavesignificantdeferredtaxassetsthataredependent onsuchearningstoberealized.Weuseourhistoricalexperienceandoperatingforecaststoevaluateexpectedfuture taxableincome.Totheextentwedonotconsideritmore-likely-than-notthatadeferredtaxassetwillberecovered,a valuationallowanceisestablishedintheperiodwemakethatdetermination.

Wecalculateourcurrentanddeferredtaxprovisionbasedonestimatesandassumptionsthatcoulddifferfrom theactualresultsreflectedinincometaxreturnsfiledinsubsequentyears.Adjustmentsbasedonfiledreturnsare recordedwhenidentified.

Taxlawsandregulationsarecomplexandsubjecttodifferentinterpretationsbytaxpayersandgovernmental taxingauthorities.Wereviewourtaxpositionsquarterlyandadjustthebalancesifandasnewinformationbecomes available.Significantjudgmentisrequiredindeterminingourtaxexpenseandevaluatingourtaxpositions,including evaluatinguncertainties.Ourestimateofthepotentialoutcomeofanyuncertaintaxissueissubjecttoourassessmentof relevantfactsandcircumstancesexistingatthebalancesheetdate,takingintoconsiderationexistinglaws,regulations andpracticesofthegovernmentaltaxingauthoritiesexercisingjurisdictionoverouroperations.Werecognizeand measureouruncertaintaxpositionsfollowingthemore-likely-than-notthresholdforrecognitionandmeasurementfor taxpositionswetakeorexpecttotakeonataxreturn.

RefertoNote14,“TaxesBasedonIncome,”totheConsolidatedFinancialStatementsformoreinformation.

Long-TermIncentiveCompensation

ValuationofStock-BasedAwards

Webaseourstock-basedcompensationexpenseonthefairvalueofawards,adjustedforestimatedforfeitures, amortizedonastraight-linebasisovertherequisiteserviceperiodforstockoptionsandrestrictedstockunits(“RSUs”). Webasecompensationexpenseforperformanceunits(“PUs”)onthefairvalueofawards,adjustedforestimated forfeitures,andamortizedonastraight-linebasisastheseawardscliff-vestattheendoftherequisiteperformance period.Webasecompensationexpenserelatedtomarket-leveragedstockunits(“MSUs”)onthefairvalueofawards, adjustedforestimatedforfeitures,andamortizedonagraded-vestingbasisovertheirrespectiveperformanceperiods.

Compensationexpenseforawardswithamarketconditionasaperformanceobjective,whichincludesPUsand MSUs,isnotadjustediftheconditionisnotmet,aslongastherequisiteserviceperiodismet.

WedeterminethefairvalueofRSUsandthecomponentofPUsthatissubjecttotheachievementofa performanceobjectivebasedonafinancialperformanceconditionbasedonthefairmarketvalueofourcommonstockas ofthegrantdate,adjustedforforegonedividends.OvertheperformanceperiodofthePUs,theestimatednumberof sharesofourcommonstockissuableuponvestingisadjustedupwardordownwardbasedontheprobabilityof achievingthetargetperformanceobjectivesestablishedfortheaward.

Wedeterminethefairvalueofstock-basedawardsthataresubjecttoachievementofperformanceobjectives basedonamarketcondition,whichincludesMSUsandtheothercomponentofPUs,usingtheMonte-Carlosimulation model,whichutilizesmultipleinputvariables,includingexpectedstockpricevolatilityandotherassumptionsappropriate fordeterminingfairvalue,toestimatetheprobabilityofsatisfyingtherespectivetargetperformanceobjectives establishedfortheaward.

ForfeitureRate

Changesinestimatedforfeitureratesarerecordedascumulativeadjustmentsintheperiodestimatesarerevised.

Certainofourassumptionsarebasedonmanagement’sestimates,inconsultationwithoutsidespecialists. Significantchangesinassumptionsforfutureawardsandactualforfeitureratescouldmateriallyimpactourstock-based compensationexpenseandresultsofoperations.

ValuationofCash-BasedAwards

Cash-basedawardsconsistoflong-termincentiveunits(“LTIUnits”).LTIUnitsareclassifiedasliabilityawards andremeasuredateachquarter-endovertheapplicablevestingorperformanceperiod.InadditiontoLTIUnitswith termsandconditionsthatmirrorthoseofRSUs,wealsograntcertainemployeesLTIUnitswithtermsandconditions similartothoseofPUsandMSUs.

RECENTACCOUNTINGREQUIREMENTS

RefertoNote1,“SummaryofSignificantAccountingPolicies,”totheConsolidatedFinancialStatementsforthis information.

Item7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK RiskManagement

Weareexposedtotheimpactofchangesinforeigncurrencyexchangeratesandinterestrates.Wegenerallydo notpurchaseorholdforeigncurrencyorinterestrateorcommoditycontractsfortradingpurposes.

Ourobjectiveinmanagingourexposuretoforeigncurrencychangesistoreducetherisktoourearningsandcash flowassociatedwithforeigncurrencyexchangeratechanges.Asaresult,weenterintoforeigncurrencyexchange forward,optionandswapcontractstoreducerisksassociatedwiththevalueofourexistingforeigncurrencyassets, liabilities,firmcommitmentsandanticipatedforeignrevenuesandcosts,whenavailableandappropriate.Thegainsand lossesonthesecontractsareintendedtooffsetchangesintherelatedexposures.Wedonothedgeourforeigncurrency translationexposureinamannerthatwouldentirelyeliminatetheeffectsofchangesinforeigncurrencyexchangerates onournetincome.

Ourobjectiveinmanagingourexposuretointerestratechangesistoreducetheimpactofinterestratechanges onearningsandcashflows.Toachievethisobjective,wemayperiodicallyuseinterestratecontractstomanageour exposuretointerestratechanges.

Additionally,weenterintocertainnaturalgasfuturescontractstoreducetherisksassociatedwithnaturalgaswe anticipateusinginourmanufacturingoperations.Theseamountsarenotmaterialtoourfinancialstatements.

Inthenormalcourseofoperations,wealsofaceotherrisksthatareeithernon-financialornon-quantifiable.These risksprincipallyincludechangesineconomicorpoliticalconditions,otherrisksassociatedwithinternationaloperations, commoditypricerisk,andlegalandcompliancerisk,whicharenotreflectedintheanalysesdescribedbelow.

ForeignExchangeValue-At-Risk

WeuseaValue-At-Risk(“VAR”)modeltodeterminetheestimatedmaximumpotentialone-daylossinearnings associatedwithourforeignexchangepositionsandcontracts.Thisapproachassumesthatmarketratesorpricesfor foreignexchangepositionsandcontractsarenormallydistributed.VARmodelestimatesaremadeassumingnormal marketconditions.Themodelincludesforeignexchangederivativeinstruments.Forecastedtransactions,firm commitments,accountsreceivableandaccountspayabledenominatedinforeigncurrencies,whichcertainofthese instrumentsareintendedtohedge,areexcludedfromthemodel.

TheVARmodelisariskanalysistoolanddoesnotrepresentactuallossesinfairvaluethatwecouldincur,nor doesitconsiderthepotentialeffectoffavorablechangesinmarketfactors.

Inboth2025and2024,theVARwasestimatedusingavariance-covariancemethodology.Thecurrency correlationwasbasedonone-yearhistoricaldataobtainedfromoneofourdomesticbanks.A95%confidencelevelwas usedforaone-daytimehorizon.

Theestimatedmaximumpotentialone-daylossinearningsforourforeignexchangepositionsandcontractswas notsignificantatyear-end2025or2024.

InterestRateSensitivity

Anassumed29and44basispointincreaseininterestratesaffectingourvariable-rateborrowings(10%ofour weightedaverageinterestrateonfloatingratedebt)in2025and2024,respectively,wouldnothavehadasignificant impactoninterestexpense.

Item8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATA

IndextoConsolidatedFinancialStatements Page ReportofIndependentRegisteredPublicAccountingFirm(PCAOBID238)44

ConsolidatedFinancialStatements:

ConsolidatedBalanceSheetsasofDecember31,2025andDecember28,202446

ConsolidatedStatementsofIncomefor2025,2024and202347

ConsolidatedStatementsofComprehensiveIncomefor2025,2024and202348

ConsolidatedStatementsofShareholders’Equityfor2025,2024and202349

ConsolidatedStatementsofCashFlowsfor2025,2024and202350

NotestoConsolidatedFinancialStatements51

ReportofIndependentRegisteredPublicAccountingFirm

TotheBoardofDirectorsandShareholdersofAveryDennisonCorporation

OpinionsontheFinancialStatementsandInternalControloverFinancialReporting

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofAveryDennisonCorporationandits subsidiaries(the“Company”)asofDecember31,2025andDecember28,2024,andtherelatedconsolidatedstatements ofincome,ofcomprehensiveincome,ofshareholders’equityandofcashflowsforeachofthethreeyearsintheperiod endedDecember31,2025,includingtherelatednotes(collectivelyreferredtoasthe“consolidatedfinancial statements”).WealsohaveauditedtheCompany’sinternalcontroloverfinancialreportingasofDecember31,2025, basedoncriteriaestablishedin InternalControl–IntegratedFramework(2013) issuedbytheCommitteeofSponsoring OrganizationsoftheTreadwayCommission(COSO).

Inouropinion,theconsolidatedfinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,the financialpositionoftheCompanyasofDecember31,2025andDecember28,2024,andtheresultsofitsoperationsand itscashflowsforeachofthethreeyearsintheperiodendedDecember31,2025inconformitywithaccounting principlesgenerallyacceptedintheUnitedStatesofAmerica.Alsoinouropinion,theCompanymaintained,inallmaterial respects,effectiveinternalcontroloverfinancialreportingasofDecember31,2025,basedoncriteriaestablishedin InternalControl–IntegratedFramework(2013) issuedbytheCOSO.

BasisforOpinions

TheCompany’smanagementisresponsiblefortheseconsolidatedfinancialstatements,formaintainingeffective internalcontroloverfinancialreporting,andforitsassessmentoftheeffectivenessofinternalcontroloverfinancial reporting,includedinManagement’sReportonInternalControlOverFinancialReportingappearingunderItem9A.Our responsibilityistoexpressopinionsontheCompany’sconsolidatedfinancialstatementsandontheCompany’sinternal controloverfinancialreportingbasedonouraudits.WeareapublicaccountingfirmregisteredwiththePublicCompany AccountingOversightBoard(UnitedStates)(PCAOB)andarerequiredtobeindependentwithrespecttotheCompany inaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesand ExchangeCommissionandthePCAOB.

WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplan andperformtheauditstoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsarefreeof materialmisstatement,whetherduetoerrororfraud,andwhethereffectiveinternalcontroloverfinancialreportingwas maintainedinallmaterialrespects.

Ourauditsoftheconsolidatedfinancialstatementsincludedperformingprocedurestoassesstherisksofmaterial misstatementoftheconsolidatedfinancialstatements,whetherduetoerrororfraud,andperformingproceduresthat respondtothoserisks.Suchproceduresincludedexamining,onatestbasis,evidenceregardingtheamountsand disclosuresintheconsolidatedfinancialstatements.Ourauditsalsoincludedevaluatingtheaccountingprinciplesused andsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheconsolidated financialstatements.Ourauditofinternalcontroloverfinancialreportingincludedobtaininganunderstandingofinternal controloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesign andoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Ourauditsalsoincludedperformingsuchother proceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditsprovideareasonablebasisfor ouropinions.

DefinitionandLimitationsofInternalControloverFinancialReporting

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassurance regardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesin accordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludes thosepoliciesandproceduresthat(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairly reflectthetransactionsanddispositionsoftheassetsofthecompany;(ii)providereasonableassurancethattransactions arerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyaccepted accountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewith authorizationsofmanagementanddirectorsofthecompany;and(iii)providereasonableassuranceregardingprevention 44 2025AnnualReport | AveryDennisonCorporation

ortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterial effectonthefinancialstatements.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetect misstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrols maybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesor proceduresmaydeteriorate.

CriticalAuditMatters

Thecriticalauditmattercommunicatedbelowisamatterarisingfromthecurrentperiodauditoftheconsolidated financialstatementsthatwascommunicatedorrequiredtobecommunicatedtotheauditcommitteeandthat(i)relates toaccountsordisclosuresthatarematerialtotheconsolidatedfinancialstatementsand(ii)involvedourespecially challenging,subjective,orcomplexjudgments.Thecommunicationofcriticalauditmattersdoesnotalterinanywayour opinionontheconsolidatedfinancialstatements,takenasawhole,andwearenot,bycommunicatingthecriticalaudit matterbelow,providingaseparateopiniononthecriticalauditmatterorontheaccountsordisclosurestowhichit relates.

RevenueRecognitionfromCertainProductRevenue

AsdescribedinNotes1and15totheconsolidatedfinancialstatements,revenueisrecognizedforanamountthat reflectstheconsiderationwhichisexpectedfromthesaleofproductswhentheCompanysatisfiesaperformance obligationbytransferringcontrolofproductstoacustomer.Managementconsidersanumberoffactorsindetermining whencontrolhasbeentransferredtoacustomer,includingthefollowing:(i)theCompany’spresentrighttopayment; (ii)thecustomer’slegaltitletotheasset;(iii)physicalpossessionoftheasset;(iv)thecustomer’ssignificantrisksand rewardsofownershipoftheasset;and(v)thecustomer’sacceptanceoftheasset.Controlgenerallytransferstoa customeruponshipmentordelivery,dependingonthespecifictermsofsalewiththecustomer.TheCompany’s consolidatednetsaleswere$8,855.5millionfortheyearendedDecember31,2025,ofwhichamajorityrelatesto certainproductrevenueintheCompany’sMaterialsGroupandSolutionsGroupreportablesegments.

Theprincipalconsiderationforourdeterminationthatperformingproceduresrelatingtorevenuerecognitionfrom certainproductrevenueisacriticalauditmatterisahighdegreeofauditoreffortinperformingproceduresrelatedtothe Company’srevenuerecognitionfromcertainproductrevenue.

Addressingthematterinvolvedperformingproceduresandevaluatingauditevidenceinconnectionwithforming ouroverallopinionontheconsolidatedfinancialstatements.Theseproceduresincludedtestingtheeffectivenessof controlsrelatingtotherevenuerecognitionprocess,includingcontrolsovertherecognitionofcertainproductrevenuefor anamountthatreflectstheconsiderationwhichisexpectedfromthesaleofproductswhentheCompanysatisfiesa performanceobligation.Theseproceduresalsoincluded,amongothers(i)testingcertainproductrevenuetransactions, onasamplebasis,byobtainingandinspectingsourcedocuments,suchaspurchaseorders,invoices,contracts,proofof shipmentordelivery,andsubsequentpaymentreceipts;and(ii)confirming,onasamplebasis,outstandingcustomer invoicebalancesasofDecember31,2025and,forconfirmationsnotreturned,obtainingandinspectingsource documents,suchaspurchaseorders,invoices,proofofshipmentordelivery,andsubsequentpaymentreceipts.

/s/PricewaterhouseCoopersLLP

LosAngeles,California

February25,2026

WehaveservedastheCompany’sauditorsinceatleast1960,whichiswhentheCompanybecamesubjectto SECreportingrequirements.Wehavenotbeenabletodeterminethespecificyearwebeganservingasauditorofthe Companyorapredecessorcompany.

ConsolidatedBalanceSheets

(Dollarsinmillions,exceptpershareamount)December31,2025December28,2024 Assets

Currentassets:

Cashandcashequivalents$202.8$329.1

Tradeaccountsreceivable,lessallowancesof$28.1and$29.0atyear-end2025and 2024,respectively 1,503.91,466.2

LiabilitiesandShareholders’Equity

Currentliabilities:

$8,801.7$8,404.2

Short-termborrowingsandcurrentportionoflong-termdebtandfinanceleases$522.9$592.3

Long-termretirementbenefitsandotherliabilities432.0434.6

Deferredtaxliabilitiesandincometaxespayable264.0234.8

Commitmentsandcontingencies(seeNotes7and8)

Shareholders’equity:

Commonstock,$1parvaluepershare,authorized–400,000,000sharesatyear-end 2025and2024;issued–124,126,624sharesatyear-end2025and2024; outstanding–76,877,487and79,800,396sharesatyear-end2025and2024, respectively 124.1124.1

Treasurystockatcost,47,249,137and44,326,228sharesatyear-end2025and 2024,respectively (3,904.1)(3,347.5) Accumulatedothercomprehensiveloss(409.7)(456.1) Totalshareholders’equity 2,242.12,312.3

Totalliabilitiesandshareholders’equity$8,801.7$8,404.2

SeeNotestoConsolidatedFinancialStatements

(Inmillions,exceptpershareamounts)202520242023

Pershareamounts: Netincomepercommonshare$8.81$8.77$6.23 Netincomepercommonshare,assumingdilution$8.79$8.73$6.20

Weightedaveragenumberofsharesoutstanding:

SeeNotestoConsolidatedFinancialStatements

ConsolidatedStatementsofComprehensiveIncome

(Inmillions)

202520242023

Netincome $688.0$704.9$503.0

Othercomprehensiveincome(loss),netoftax:

Foreigncurrencytranslation:

Translationgain(loss)16.5(46.9)(14.6)

Pensionandotherpostretirementbenefits:

Netgain(loss)recognizedfromactuarialgain/lossandpriorservicecost/credit26.7(1.3)(25.2)

Reclassificationstonetincome2.1.8(1.0)

Cashflowhedges:

Gain(loss)recognizedoncashflowhedges1.9(5.4)(7.0)

Reclassificationstonetincome2.82.83.7

Fairvaluehedges:

Changesinexcludedcomponentsoffairvaluehedges(3.6)2.0—

Othercomprehensiveincome(loss),netoftax46.4(48.0)(44.1)

Totalcomprehensiveincome,netoftax$734.4$656.9$458.9

SeeNotestoConsolidatedFinancialStatements

ConsolidatedStatementsofShareholders’Equity

(Dollarsinmillions,exceptpershareamounts)

Accumulated other comprehensive lossTotal

BalanceasofDecember31,2022$124.1$879.3$4,414.6$(3,021.8)$(364.0)$2,032.2 Netincome——503.0——503.0

Othercomprehensiveincome(loss),netoftax ————(44.1)(44.1)

Repurchaseof780,721sharesfortreasury———(137.5)—(137.5)

Issuanceof297,885sharesunderstock-based compensationplans—(24.8)8.916.5—.6 Contributionof168,404sharesto401(k)plan——22.08.4—30.4 Dividendsof$3.18pershare——(256.7)——(256.7)

BalanceasofDecember30,2023$124.1$854.5$4,691.8$(3,134.4)$(408.1)$2,127.9 Netincome——704.9——704.9

Othercomprehensiveincome(loss),netoftax ————(48.0)(48.0) Repurchaseof1,184,780sharesfortreasury———(247.5)—(247.5) Issuanceof340,048sharesunderstock-based compensationplans—(13.9)7.726.8—20.6 Contributionof149,543sharesto401(k)plan——24.37.6—31.9 Dividendsof$3.45pershare——(277.5)——(277.5) BalanceasofDecember28,2024$124.1$840.6$5,151.2$(3,347.5)$(456.1)$2,312.3 Cumulative-effectadjustmentuponadoptionof accountingstandardupdate(1) ——10.2——10.2 Netincome——688.0——688.0

Othercomprehensiveincome(loss),netoftax ————46.446.4 Repurchaseof3,236,106sharesfortreasury———(575.6)—(575.6) Issuanceof119,495sharesunderstock-based compensationplans—(6.3)13.28.4—15.3 Contributionof193,703sharesto401(k)plan——23.310.6—33.9 Dividendsof$3.70pershare——(288.4)——(288.4) BalanceasofDecember31,2025$124.1$834.3$5,597.5$(3,904.1)$(409.7)$2,242.1 (1) Inthefirstquarterof2025,weadoptedaccountingguidancethatrequirescryptoassetstobemeasuredatfairvalue,whichresultedinanadjustment toreflectthedifferencebetweenthecarryingvalueofourholdingsincryptoassetsandtheirfairvalueasofthebeginningof2025.Cryptoassets werenotmaterialtotheConsolidatedFinancialStatements.

SeeNotestoConsolidatedFinancialStatements

ConsolidatedStatementsofCashFlows

(Inmillions) 202520242023

OperatingActivities Netincome $688.0$704.9$503.0

Adjustmentstoreconcilenetincometonetcashprovidedbyoperating activities:

Provisionforcreditlossesandsalesreturns51.247.449.9

Stock-basedcompensation27.928.722.3

Deferredtaxesandothernon-cashtaxes(19.9)(18.5)(24.4)

Othernon-cashexpenseandloss(incomeandgain),net48.867.237.1

Changesinassetsandliabilitiesandotheradjustments:

Tradeaccountsreceivable44.0(107.3)(16.7) Inventories 53.2(90.7)111.7

Accountspayable(144.4)106.7(87.6)

Taxesonincome

Netcashprovidedbyoperatingactivities881.4938.8826.0

InvestingActivities

Purchasesofproperty,plantandequipment(169.0)(208.8)(265.3) Purchasesofsoftwareandotherdeferredcharges(31.4)(31.0)(19.8) Proceedsfromcompany-ownedlifeinsurancepolicies——48.1 PurchasesofArgentineBlueChipSwapsecurities—(34.2)— ProceedsfromsalesofArgentineBlueChipSwapsecurities—24.0— Proceedsfromsalesofproperty,plantandequipment22.6.61.0 Proceedsfrominsuranceandsales(purchases)ofinvestments,net3.510.11.9 Proceedsfromsettlementofnetinvestmenthedges6.2—— Paymentforsettlementofnetinvestmenthedges(26.1)—— Paymentsforacquisitions,netofcashacquired,andventureinvestments(401.8)(3.8)(224.9) Netcashusedininvestingactivities(596.0)(243.1)(459.0)

FinancingActivities

Netincrease(decrease)inborrowingswithmaturitiesofthreemonthsorless422.5(269.0)(36.6) Additionallong-termborrowings576.5539.2394.9 Repaymentsoflong-termdebtandfinanceleases(559.4)(308.1)(255.9) Dividendspaid (288.4)(277.5)(256.7) Sharerepurchases(572.3)(247.5)(137.5) Net(taxwithholding)proceedsrelatedtostock-basedcompensation(12.8)(8.4)(23.8) Proceedsfromsettlementoffairvaluehedges32.8—— Paymentsforsettlementoffairvaluehedges(13.5)—— Other (.3)(4.8)(1.6) Netcashusedinfinancingactivities(414.9)(576.1)(317.2) Effectofforeigncurrencytranslationoncashbalances3.2(5.5)(2.0) Increase(decrease)incashandcashequivalents(126.3)114.147.8 Cashandcashequivalents,beginningofyear329.1215.0167.2 Cashandcashequivalents,endofyear$202.8$329.1$215.0

SeeNotestoConsolidatedFinancialStatements

50 2025AnnualReport | AveryDennisonCorporation

NotestoConsolidatedFinancialStatements

NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

NatureofOperations

Weareagloballeaderinmaterialsscienceanddigitalidentificationsolutions.WeareMakingPossibleTM products andsolutionsthathelpadvancetheindustriesweserve,providingbrandingandinformationsolutionsthatoptimizelabor andsupplychainefficiency,reducewasteandmitigateloss,advancesustainability,circularityandtransparency,and betterconnectbrandsandconsumers.Wedesignanddeveloplabelingandfunctionalmaterials,radio-frequency identification(“RFID”)inlaysandtags,softwareapplicationsthatconnectthephysicalanddigital,andofferingsthat enhancebrandedpackagingandcarryordisplayinformationthatimprovesthecustomerexperience.Weserveanarray ofindustriesworldwide,includinghomeandpersonalcare,apparel,generalretail,e-commerce,logistics,foodand grocery,pharmaceuticalsandautomotive.

PrinciplesofConsolidation

OurConsolidatedFinancialStatementsincludetheaccountsofmajority-ownedandcontrolledsubsidiaries. Intercompanyaccounts,transactionsandprofitsareeliminatedinconsolidation.

FiscalYear

InJanuary2025,theAuditCommitteeofourBoardofDirectorsapprovedachangetoourprevious52-or 53-weekfiscalyeargenerallyendingontheSaturdayclosesttoDecember31toafiscalyearcoincidentwiththecalendar year.Our2025fiscalyearbeganonDecember29,2024andendedonDecember31,2025,whichresultedinfourextra dayscomparedtoprioryears;fiscalyears2026andbeyondwillbecoincidentwiththecalendaryearbeginningon January1andendingonDecember31.

Our2024and2023fiscalyearsconsistedof52-weekperiodsendingDecember28,2024andDecember30, 2023,respectively.

AccountingGuidanceUpdates

CryptoAssets

Inthefirstquarterof2025,weadoptedguidancerelatedtotheaccountingforanddisclosureofcryptoassetsthat requirescryptoassetstobemeasuredatfairvalue,whichresultedinanadjustmenttoreflectthedifferencebetweenthe carryingvalueofourcryptoassetsandtheirfairvalueasofthebeginningof2025.Theimpactofouradoptionofthis guidancewasnotmaterialtoourfinancialstatementsordisclosures.

IncomeTaxes

Inthefourthquarterof2025,weprospectivelyadoptedguidancethatrequiresadditionaldisclosuresinthe incometaxratereconciliationandincometaxespaid.SeeNote14,“TaxesBasedonIncome,”formoreinformation.

UseofEstimates

Thepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedinthe UnitedStatesofAmerica,orGAAP,requiresmanagementtomakeestimatesandassumptionsforthereportingperiod andasofthedateofourfinancialstatements.Theseestimatesandassumptionsaffectthereportedamountsofassets andliabilities,thedisclosureofcontingentliabilities,andthereportedamountsofrevenueandexpense.Astheeffectsof futureeventscannotbedetermined,actualresultscoulddiffersignificantlyfromtheseestimates.

CashandCashEquivalents

Cashandcashequivalentsgenerallyconsistofcashonhand,depositsinbanks,cash-in-transit,andbankdrafts andshort-terminvestmentswithmaturitiesofthreemonthsorlesswhenpurchasedorreceived.Thecarryingvalueof theseassetsapproximatesfairvalueduetotheshortmaturityoftheseinstruments.

Inventories

Westateinventoriesatthelowerofcostornetrealizablevalueandcategorizethemasrawmaterials, work-in-progressorfinishedgoods.Costisdeterminedusingthefirst-in,first-outmethod.Werecordinventorythatis damaged,obsolete,excessandslow-movingtocostofproductssoldandestablishalowercostbasisforthatinventory. Slow-movinginventoryisreviewedbycategoryandmayberecognizedpartiallyorfullytocostofproductssold dependingonthetypeofproduct,levelofusageandlengthoftimetheproducthasbeenincludedininventory.

TradeAccountsReceivable

Werecordtradeaccountsreceivableattheinvoicedamount.Ourallowancesforcreditlossesreflectcustomer tradeaccountsreceivablethatareestimatedtobepartiallyorentirelyuncollectible.Theseallowancesareusedtoreduce grosstradereceivablestotheirnetrealizablevalues.Werecordtheseallowancesbasedonestimatesrelatedtothe financialconditionofcustomers;theagingofreceivablebalances;ourhistoricalcollectionexperience;andcurrentand expectedfuturemacroeconomicandmarketconditions.

Property,PlantandEquipment

Wegenerallycomputedepreciationusingthestraight-linemethodovertheestimatedusefullivesofthe respectiveassets,rangingfromtento45yearsforbuildingsandimprovementsandthreeto15yearsformachineryand equipment.Leaseholdimprovementsaredepreciatedovertheshorteroftheasset’susefullifeandtheassociatedlease term.Weexpensemaintenanceandrepaircostsasincurred;wecapitalizerenewalsandimprovements.Uponthesaleor retirementofassets,theaccountsarerelievedofthecostandtherelatedaccumulateddepreciation,withanyresulting gainorlossincludedinnetincome.

Leases

Ourleasesprimarilyrelatetoofficeandwarehousespace,machinery,transportation,andequipmentfor informationtechnology.Wedetermineifanarrangementisaleaseorcontainsaleaseatinception.Forleaseaccounting purposes,wedonotseparateleaseandnonleasecomponents,nordowerecordoperatingorfinanceleaseassetsand liabilitiesforshort-termleases.Wehaveoptionstoreneworterminatesomeofourleases.Weevaluaterenewaland terminationoptionsattheleasecommencementdateandovertheleasetermtodetermineifwearereasonablycertainto exercisetheseoptions.Asmostofourleasesdonotprovideanimplicitrate,weuseourincrementalborrowingrate basedontheinformationavailableattheleasecommencementdatetodeterminethepresentvalueofleasepayments. Werecognizeexpenseforoperatingleasesonastraight-linebasisovertheleaseterm,withvariableleasepayments recognizedintheperiodsinwhichtheyareincurred.

Software

Wecapitalizesoftwarecostsincurredduringtheapplicationdevelopmentstageofsoftwaredevelopment, includingcostsincurredfordesign,coding,installationtohardware,testing,andupgradesandenhancementsthat providethesoftwareorhardwarewithadditionalfunctionalitiesandcapabilities.Weexpensesoftwarecosts,including internalandexternaltrainingcostsandmaintenancecosts,incurredduringthepreliminaryprojectstageandthe post-implementationand/oroperationstage.Capitalizedsoftware,whichisincludedin“Otherassets”inthe ConsolidatedBalanceSheets,isamortizedonastraight-linebasisovertheestimatedusefullifeofthesoftware,whichis generallybetweenfiveandtenyears.

CloudComputingArrangements

Wecapitalizecertaincostsincurredduringtheapplicationdevelopmentstageofimplementationunderahosting arrangementthatisaservicecontract.Weexpensecostsincurredduringthepreliminaryprojectstageandthe post-implementationand/oroperationstage.Capitalizedimplementationcosts,whichareincludedin“Otherassets”in theConsolidatedBalanceSheets,areamortizedonastraight-linebasisoverthetermofthehostingarrangementplus optionalrenewalperiods,whichisgenerallybetweenfiveandtenyears.

VentureInvestments

Weprimarilyinvestinprivatelyheldcompaniesandutilizethemeasurementalternativeforventureinvestments thatdonothavereadilydeterminablefairvalues,measuringthematcostlessimpairmentplusorminusobservableprice 52 2025AnnualReport | AveryDennisonCorporation

changesinanorderlytransaction.Ventureinvestmentsthatarepubliclytradedcompaniesarerecordedatfairvalue usingLevel1inputs.Thecarryingvalueofourventureinvestmentsisincludedin“Otherassets”intheConsolidated BalanceSheets.

SeeNote9,“FairValueMeasurements,”formoreinformation.

ImpairmentofLong-livedAssets

Werecordimpairmentchargeswhenthecarryingamountsoflong-livedassetsaredeterminednottobe recoverable.Wemeasurerecoverabilitybycomparingtheundiscountedcashflowsexpectedfromtheapplicableassetor assetgroup’suseandeventualdispositiontoitscarryingvalue.Wecalculatetheamountofimpairmentlossasthe excessofthecarryingvalueoverthefairvalue.Historically,changesinmarketconditionsandmanagementstrategyhave causedustoreassessthecarryingamountofourlong-livedassets.

GoodwillandOtherIntangiblesResultingfromBusinessAcquisitions

Weaccountforbusinesscombinationsusingtheacquisitionmethod,withtheexcessoftheacquisitioncostover thefairvalueofacquirednettangibleassetsandidentifiedintangibleassetsconsideredgoodwill.Asaresult,wedisclose goodwillseparatelyfromotherintangibleassets.Otheridentifiableintangiblesincludecustomerrelationships,patented andotherdevelopedtechnology,andtradenamesandtrademarks.

Weperformanannualimpairmenttestofgoodwillduringthefourthquarterand,asnecessary,ifchangesinfacts andcircumstancesthatindicatethefairvalueofareportingunitmaybelessthanitscarryingvalue.Factorsthatmay causeustoperformanimpairmenttestoutsideofourannualassessmentincludesignificantunderperformanceofa businessrelativetoexpectedoperatingresults,significantadverseeconomicorindustrytrends,significantdeclineinour marketcapitalizationforanextendedperiodoftimerelativetonetbookvalue,orourdecisiontodivestaportionofa reportingunit.Inperformingimpairmenttests,wehavetheoptiontofirstassessqualitativefactorstodeterminewhether itisnecessarytoperformaquantitativeassessmentforgoodwillimpairment.Ifthequalitativeassessmentindicatesthat itismore-likely-than-notthatthefairvalueofareportingunitislessthanitscarryingvalue,weperformaquantitative assessment.Aquantitativeassessmentprimarilyusesthepresentvalue(discountedcashflow)methodtodeterminethe fairvalueofreportingunitswithgoodwill.

Wecomparethefairvalueofeachreportingunittoitscarryingamount,and,totheextentthecarryingamount exceedstheunit’sfairvalue,werecognizeanimpairmentofgoodwillfortheexcessuptotheamountofgoodwillofthat reportingunit.

Inconsultationwithoutsidespecialists,weestimatethefairvalueofourreportingunitsusingvariousvaluation techniques,withtheprimarytechniquebeingadiscountedcashflowanalysis.Adiscountedcashflowanalysisrequires ustomakevariousassumptions,includingareportingunit’sforecastedsales,profitmarginsandgrowthrates,aswellas discountrates.Ourassumptionsaboutdiscountratesarebasedontheweightedaveragecostofcapitalofcomparable companies.Ourassumptionsaboutsales,profitmarginsandgrowthratesarebasedonourforecasts,businessplans, economicprojections,anticipatedfuturecashflows,andmarketplacedata.Wealsomakeassumptionsforvarying perpetualgrowthratesforperiodsbeyondourlong-termbusinessplanperiod.Webaseourfairvalueestimateson projectedfinancialinformationandassumptionsthatwebelievearereasonable.However,actualfutureresultsmaydiffer materiallyfromtheseestimatesandprojections.Thevaluationmethodologyweusetoestimatethefairvalueofreporting unitsrequiresinputsandassumptionsthatreflectcurrentmarketconditions,aswellastheimpactofplannedbusiness andoperationalstrategiesthatrequiremanagementjudgment.Theestimatedfairvaluecouldincreaseordecrease dependingonchangesintheinputsandassumptions.

Wetestindefinite-livedintangibleassets,consistingoftradenamesandtrademarks,forimpairmentinthefourth quarterorwhenevereventsorcircumstancesindicatethatitismore-likely-than-notthattheircarryingamountsexceed theirfairvalues.Inperformingtheimpairmenttests,wehavetheoptionfirsttoassessqualitativefactorstodetermine whetheritisnecessarytoperformaquantitativeassessmentforindefinite-livedintangibleassetimpairment.Ifwedecide nottoperformaqualitativeassessment,orifthequalitativeassessmentindicatesthatitismore-likely-than-notthatthe fairvalueofanindefinite-livedintangibleassetislessthanitscarryingvalue,weperformaquantitativeassessment.Fair valueisestimatedasthediscountedvalueoffuturerevenuesusingaroyaltyratethatathirdpartywouldpaytousethe asset.Variationintheroyaltyratescouldimpactourestimateoffairvalue.Ifthecarryingamountofanassetexceedsits fairvalue,animpairmentlossisrecognizedinanamountequaltothatexcess.

Weamortizefinite-livedintangibleassets,consistingofcustomerrelationships,patentedandotherdeveloped technology,tradenamesandtrademarks,andotherintangibles,onastraight-linebasisovertheirestimatedusefullives.

SeeNote3,“GoodwillandOtherIntangiblesResultingfromBusinessAcquisitions,”formoreinformation.

ForeignCurrency

WetranslateassetandliabilityaccountsofinternationaloperationsintoU.S.dollarsatcurrentrates.Revenues andexpensesaretranslatedattheweightedaveragecurrencyrateforthefiscalyear.Werecordgainsandlosses resultingfromhedgingthevalueofinvestmentsincertaininternationaloperationsandfromthetranslationofbalance sheetaccountsdirectlyasacomponentofothercomprehensiveincome.

WeaccountforouroperationsinArgentinaashighlyinflationarybecausethecountry’sthree-yearcumulative inflationrateexceeds100%.Asaresult,thefunctionalcurrencyofourArgentinesubsidiaryistheU.S.dollar.

FinancialInstruments

Weenterintoforeigncurrencyexchangederivativeinstrumentstoreduceourriskfromexchangeratefluctuations associatedwithreceivables,payables,loansandfirmcommitmentsdenominatedincertainforeigncurrenciesthatarise primarilyasaresultofouroperationsoutsidetheU.S.Fromtimetotime,weenterintointerestratecontractstohelp manageourexposuretocertaininterestratefluctuations.Wealsoenterintofuturescontractstohedgecertainprice fluctuationsforaportionofouranticipateddomesticpurchasesofnaturalgas.Themaximumlengthoftimeforwhichwe hedgeourexposuretothevariabilityinfuturecashflowsis36monthsforforecastedforeigncurrencyexchangeand commoditytransactionsandtenyearsforcross-currencyswaptransactions.

Onthedateweenterintoaderivativeinstrument,wedeterminewhethertheitwillbedesignatedasahedge. Otherderivativeinstrumentsnotdesignatedashedgesarerecordedatfairvalue,withchangesinfairvaluerecognizedin earnings.Ourpolicyisnottopurchaseorholdanyforeigncurrency,interestrateorcommoditycontractsfortrading purposes.

AllderivativeinstrumentsareaccountedforatfairvalueandrecognizedasassetsorliabilitiesintheConsolidated BalanceSheets.Accountingforthegainorlossresultingfromchangesinthefairvalueofaderivativeinstrument dependsonwhetherithasbeendesignatedaspartofahedgingrelationshipandishighlyeffective,aswellasthenature ofthehedgingactivity.Weformallydocumentallrelationshipsbetweenderivativeinstrumentsaccountedforas designatedhedges,thehedgeditem,themethodforassessingeffectivenessandthetreatmentofexcludedcomponents. Thesefinancialinstrumentscanbedesignatedas:

•Fairvaluehedges-Hedgesofthechangeinthefairvalueofarecognizedassetorliability.Thegainorloss fromthederivativeinstrument,aswellastheoffsettinggainorlossonthehedgeditemattributabletothe hedgedrisk,arerecognizedinincomeduringtheperiodofthechangeinfairvalue.Hedgeeffectivenessis basedonthespotmethodandexpectedtobeperfectlyeffective.Excludedcomponentsarenotincludedin theeffectivenessassessment,recognizedinasystematicandrationalmethodoverthetermofthecontracts andrecordedtothesameincomestatementlineastheitembeinghedged.

•Cashflowhedges-Hedgestoreducethevariabilityoffutureexpectedcashflows.Forderivativeinstruments thataredesignatedandqualifyascashflowhedges,theentiregainorlossonthederivativeinstrumentis reportedasacomponentof“Accumulatedothercomprehensiveloss”andreclassifiedintoearningsinthe sameperiod(s)duringwhichthehedgedtransactionimpactsearnings.Gainsandlossesonthesederivative instruments,representinghedgecomponentsexcludedfromtheassessmentofeffectiveness,arerecognized incurrentearnings.

•Netinvestmenthedges-Hedgesofthecurrencyexposurerelatedtoanetinvestmentinaforeignoperation. Thegainorlossfromthederivativeinstrumentisrecognizedasforeigncurrencytranslationin“Accumulated othercomprehensiveloss”untilthehedgednetinvestmentiseithersoldorsubstantiallyliquidated.Hedge effectivenessisbasedonthespotmethod,withnoineffectivenessexpectedoverthedurationofthehedging relationship.Excludedcomponentsarenotincludedintheeffectivenessassessment,recordedinasystematic andrationalbasisoverthetermofthecontractsandrecordedto“Marketing,generalandadministrative expense”intheConsolidatedStatementsofIncome.

Weassess,bothattheinceptionofanyhedgeandonanongoingbasis,whetherourhedgesarehighlyeffective. Ifwedeterminethatahedgeisnothighlyeffective,weprospectivelydiscontinuehedgeaccounting.Forcashflow hedges,werecordgainsandlossesascomponentsofothercomprehensiveincomeandreclassifythemintoearningsin thesameperiodduringwhichthehedgedtransactionaffectsearnings.Intheeventthattheanticipatedtransactionisno longerhighlyprobabletooccur,werecognizethechangeinfairvalueofthehedginginstrumentincurrentperiod earnings.Werecognizechangesinfairvaluehedgesincurrentperiodearnings.Wealsorecognizechangesinthefair valueofunderlyinghedgeditems(suchasrecognizedassetsorliabilities)incurrentperiodearningsandoffsetthe changesinthefairvalueofthederivativeinstrument.

IntheConsolidatedStatementsofCashFlows,hedgesareclassifiedinthesamecategoryasthehedgeditem.

SeeNote5,“FinancialInstruments,”formoreinformation.

FairValueMeasurements

Wedefinefairvalueasthepricethatwouldbereceivedfromsellinganassetorpaidfortransferringaliabilityin anorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Indeterminingfairvalue,weconsiderthe principalormostadvantageousmarketinwhichwewouldtransactandthemarket-basedriskmeasurementsor assumptionsthatmarketparticipantswoulduseinpricingtheassetorliability.

Wedeterminefairvaluebasedonathree-tierfairvaluehierarchy,whichweusetoprioritizetheinputsusedin measuringfairvalue.ThesetiersconsistofLevel1,whichareobservableinputssuchasquotedpricesinactivemarkets; Level2,whichareinputsotherthanquotedpricesinactivemarketsthatareeitherdirectlyorindirectlyobservable;and Level3,whichareunobservableinputsforwhichlittleornomarketdataexists,requiringustodevelopourown assumptionstodeterminethebestestimateoffairvalue.

RevenueRecognition

Substantiallyallofourrevenueisderivedfromthesaleofproducts.OurMaterialsGroupreportablesegmentsells pressure-sensitivelabelmaterials(includinglabelmaterialswithRFIDinlays),filmsforgraphicandreflectiveproducts, performancetapesandotheradhesiveproductsforindustrial,medicalandotherapplications,aswellasfastener solutions.OurSolutionsGroupreportablesegmentsellsawidevarietyofbrandingandinformationsolutions-oriented products,suchastickets,tags,labels(includingRFIDinlays),aswellasrelatedequipment,servicesandsupplies.We recognizerevenueinanamountthatreflectstheconsiderationwhichweexpectfromthesaleofourproductswhenwe satisfyaperformanceobligationbytransferringcontrolofourproductstoacustomer.Weconsideranumberoffactorsin determiningwhenwehavetransferredcontroltoacustomer,includingthefollowing:(i)ourpresentrighttopayment; (ii)thecustomer’slegaltitletotheasset;(iii)physicalpossessionoftheasset;(iv)thecustomer’ssignificantrisksand rewardsofownershipoftheasset;and(v)thecustomer’sacceptanceoftheasset.Generally,therearenosubstantive differencesinrevenuerecognitionconsiderationsamongourvariousproducts.Controlgenerallytransferstoacustomer uponshipmentordelivery,dependingonthespecifictermsofsalewiththecustomer.

Ourpaymenttermswithcustomersaregenerallyconsistentwiththoseusedintheindustriesandregionsinwhich weoperate.

Weacceptsalesreturnsincertainlimitedcircumstances.Werecordaliabilityforestimatedreturnsanda correspondingreductiontosalesintheamountweexpecttorepayorcreditcustomers,whichwebaseonhistorical returnsandoutstandingcustomerclaims.Weupdateourestimateseachreportingperiod.

Salesrebates,discountsandothercustomerconcessionsrepresentvariableconsiderationandarecommoninthe industriesandregionsinwhichweoperate,whichweaccountforasareductiontosalesbasedonestimatesatthetime atwhichproductsaresold.Webasetheseestimatesonourhistoricalexperience,aswellascurrentinformationsuchas salesforecasts.Weregularlyreviewourestimatesandadjusttherevenuerecognizedfromsalesasnecessaryas additionalinformationbecomesavailable.

Weexcludesales,value-addedandothertaxeswecollectfromcustomersfromsales.Weaccountforshipping andhandlingactivitiesaftercontrolofaproductistransferredtoacustomerasfulfillmentcostsandnotasseparate performanceobligations.Asapracticalexpedient,wehaveelectednottodisclosethevalueofunsatisfiedperformance obligationsforcontractswithanexpectedlengthoflessthanoneyear.Weexpensesalescommissionswhenincurred

becausetheirexpectedamortizationperiodisoneyearorless.Werecordthesecostsin“Marketing,generaland administrativeexpense”intheConsolidatedStatementsofIncome.

ResearchandDevelopment

Researchanddevelopmentcostsarerelatedtoresearch,designandtestingofnewproductsandapplications, whichweexpenseasincurred.

Long-TermIncentiveCompensation

Nolong-termincentivecompensationexpensewascapitalizedin2025,2024or2023.

ValuationofStock-BasedAwards

Webaseourstock-basedcompensationexpenseonthefairvalueofawards,adjustedforestimatedforfeitures, amortizedonastraight-linebasisovertherequisiteserviceperiodforstockoptionsandrestrictedstockunits(“RSUs”). Webasecompensationexpenseforperformanceunits(“PUs”)onthefairvalueofawards,adjustedforestimated forfeitures,andamortizedonastraight-linebasisastheseawardscliff-vestattheendoftherequisiteserviceperiod.We basecompensationexpenserelatedtomarket-leveragedstockunits(“MSUs”)onthefairvalueofawards,adjustedfor estimatedforfeitures,andamortizedonagraded-vestingbasisovertheirrespectiveperformanceperiods.

Compensationexpenseforawardswithamarketconditionasaperformanceobjective,whichincludesMSUsand acomponentofPUs,isnotadjustediftheconditionisnotmet,aslongastherequisiteserviceperiodismet.

WeestimatethefairvalueofstockoptionsasofthegrantdateusingtheBlack-Scholesoption-pricingmodel.This modelrequiresinputassumptionsforourexpecteddividendyield,expectedstockpricevolatility,risk-freeinterestrate andexpectedoptionterm.

WedeterminethefairvalueofRSUsandthecomponentofPUsthatissubjecttotheachievementofa performanceobjectiveusingafinancialperformanceconditionbasedonthefairmarketvalueofourcommonstockasof thegrantdate,adjustedforforegonedividends.OvertheperformanceperiodofthePUs,theestimatednumberofshares ofourcommonstockissuableuponvestingisadjustedupwardordownwardfromthetargetsharesbasedonthe probabilityoftheperformanceobjectivesestablishedfortheawardbeingachieved.

Wedeterminethefairvalueofstock-basedawardsthataresubjecttotheachievementofperformanceobjectives basedonamarketcondition,whichincludesMSUsandtheothercomponentofPUs,usingtheMonte-Carlosimulation method,whichutilizesmultipleinputvariables,includingexpectedstockpricevolatilityandotherassumptions appropriatefordeterminingfairvalue,toestimatetheprobabilityofsatisfyingtheperformanceobjectivesestablishedfor theaward.

Certainoftheseassumptionsarebasedonmanagement’sestimates,inconsultationwithoutsidespecialists. Significantchangesinassumptionsforfutureawardsandactualforfeitureratescouldmateriallyimpactstock-based compensationexpenseandourresultsofoperations.

ValuationofCash-BasedAwards

Cash-basedawardsconsistoflong-termincentiveunits(“LTIUnits”).WeclassifyLTIUnitsasliabilityawardsand remeasurethemateachquarter-endovertheapplicablevestingorperformanceperiod.InadditiontoLTIUnitswith termsandconditionsthatmirrorthoseofRSUs,wealsograntcertainemployeesLTIUnitswithtermsandconditionsthat mirrorthoseofPUsandMSUs.

Forfeitures

Weestimateexpectedforfeituresindeterminingthecompensationcosttoberecognizedeachperiod,ratherthan accountingforforfeituresastheyoccur.Werecordchangesinestimatedforfeitureratesascumulativeadjustmentsinthe periodestimatesarerevised.

SeeNote12,“Long-termIncentiveCompensation,”formoreinformation.

TaxesBasedonIncome

BecausewearesubjecttoincometaxintheU.S.andmultipleforeignjurisdictions,judgmentisrequiredin evaluatingandestimatingourworldwideprovisionforincometaxes,accrualsfortaxes,deferredtaxesandtaxpositions. OurprovisionforincometaxesisdeterminedusingtheassetandliabilityapproachinaccordancewithGAAP.Underthis approach,deferredtaxesrepresenttheexpectedfuturetaxconsequencesoftemporarydifferencesbetweenthecarrying amountsandtaxbasesofassetsandliabilities.Werecordavaluationallowancetoreduceourdeferredtaxassetswhen uncertaintyregardingtheirrealizabilityexists.Werecognizeandmeasureouruncertaintaxpositionsfollowingthe more-likely-than-notthresholdforrecognitionandmeasurementfortaxpositionswetakeorexpecttotakeonatax return.

SeeNote14,“TaxesBasedonIncome,”formoreinformation.

Reclassifications

Certainprior-periodamountshavebeenreclassifiedtoconformtothecurrent-yearpresentation.RefertoNote15, “SegmentandDisaggregatedRevenueInformation,”totheConsolidatedFinancialStatementsformoreinformation.

RecentAccountingRequirements

InSeptember2025,theFinancialAccountingStandardsBoard(“FASB”)issuedguidancechangingthe capitalizationcriteriaforinternal-usesoftware,eliminatingreferencestoprojectstagesandrequiringthatprojectsmeet completionprobabilitybeforecostscanbecapitalized.Thisguidanceiseffectiveforfiscalyearsbeginningafter December15,2027,includinginterimperiodswithinthosefiscalyears.Earlyadoptionispermitted.Wearecurrently assessingtheimpactofadoptingthisguidanceonourconsolidatedfinancialstatements.

InNovember2024,theFASBissuedguidanceexpandingthedisclosurerequirementsforcertainexpensesin notestoconsolidatedfinancialstatements.Theguidanceiseffectiveforannualreportingperiodsbeginningafter December15,2026andinterimreportingperiodsbeginningafterDecember15,2027.Earlyadoptionispermitted.We arecurrentlyassessingtheimpactofadoptingthisguidanceonourconsolidatedfinancialstatementdisclosures.

NOTE2.BUSINESSACQUISITIONS

2025BusinessAcquisition

OnOctober20,2025,wecompletedourbusinessacquisitionofW.F.TaylorHoldings,Inc.(“TaylorAdhesives”),a Georgia-basedflooringadhesivesbusiness,forthepurchasepriceofapproximately$390million.Thisacquisition expandedthehigh-valuecategoryportfolioinourMaterialsGroupreportablesegment.

WefundedtheTaylorAdhesivesacquisitionusingcashandproceedsfromourissuanceofseniornotesin September2025.

Thefinalallocationsofpurchaseconsiderationtoassetsandliabilitiesareongoingaswecontinuetoevaluate certainbalances,estimatesandassumptionsduringthemeasurementperiod(uptooneyearfromtheacquisitiondate). Ourvaluationofcertainacquiredassetsandliabilitiesiscurrentlypendingfinalizationwithintheallowabletimeto completeourassessment.

TheTaylorAdhesivesacquisitionwasnotmaterialtotheConsolidatedFinancialStatements.

2023BusinessAcquisitions

OnNovember23,2023,wecompletedourbusinessacquisitionofSilverCrystalGroup(“SilverCrystal”),a Canada-basedproviderofsportsapparelcustomizationandapplicationsolutionsacrossin-venue,direct-to-businessand e-commerceplatforms.OnMay22,2023,wecompletedourbusinessacquisitionofLGGroup,Inc.(“LionBrothers”),a Maryland-baseddesignerandmanufacturerofapparelbrandembellishments.OnMarch6,2023,wecompletedour businessacquisitionofThermopatch,Inc.(“Thermopatch”),aNewYork-basedmanufacturerspecializinginlabeling, embellishmentsandtransfersforthesports,industriallaundry,workwearandhospitalityindustries.Theseacquisitions expandedtheproductportfolioinourSolutionsGroupreportablesegment.TheacquisitionsofSilverCrystal,Lion BrothersandThermopatcharereferredtocollectivelyasthe“2023Acquisitions.”

Theaggregatepurchaseconsideration,includingpurchaseconsiderationpayable,forthe2023Acquisitionswas approximately$231million.Wefundedthe2023Acquisitionsusingcashandcommercialpaperborrowings.Inaddition tothecashpaidatclosing,thesellersinoneoftheseacquisitionsareeligibleforearn-outpaymentsofupto$5million, subjecttotheacquiredcompanyachievingcertainpost-acquisitionperformancetargets.Asoftheacquisitiondate,we includedanestimateofthefairvalueoftheseearn-outpaymentsintheaggregatepurchaseconsideration.

The2023Acquisitionswerenotmaterial,individuallyorintheaggregate,totheConsolidatedFinancial Statements.

NOTE3.GOODWILLANDOTHERINTANGIBLESRESULTINGFROMBUSINESSACQUISITIONS

Goodwill

Resultsfromourannualgoodwillimpairmenttestinthefourthquarterof2025indicatedthatnoimpairment occurredduring2025.TheassumptionsusedinourassessmentwereprimarilybasedonLevel3inputs.

Changesinthenetcarryingamountofgoodwillfor2025and2024byreportablesegmentareshownbelow.

(Inmillions)

Materials Group Solutions GroupTotal

GoodwillasofDecember30,2023$630.7$1,382.9$2,013.6 Acquisitionadjustments(1) —(2.7)(2.7)

Translationadjustments(24.6)(10.1)(34.7)

GoodwillasofDecember28,2024606.11,370.11,976.2 Acquisition(2)

GoodwillasofDecember31,2025$886.0$1,386.5$2,272.5

(1) Measurementperiodadjustmentsrelatedtothefinalizationofthepurchasepriceallocationforour2023Acquisitions.

(2) Goodwillacquiredrelatedtoour2025acquisitionofTaylorAdhesives.Weexpectnearlyalloftherecognizedgoodwillrelatedtothisacquisitionnot tobedeductibleforincometaxpurposes.

ThecarryingamountsofgoodwillatDecember31,2025andDecember28,2024werenetofaccumulated impairmentlossesofapproximately$820millionrecognizedinfiscalyear2009byourSolutionsGroupreportable segment.

Indefinite-LivedIntangibleAssets

InconnectionwithouracquisitionofTaylorAdhesives,weacquired$18.7millionofidentifiableindefinitelived intangibleassets,consistingoftradenamesandtrademarks.Weutilizedtheincomeapproachtoestimatethefairvalues ofintangibleassets,primarilyusingLevel3inputs.Weappliedsignificantjudgmentindeterminingthefairvalueof intangibleassets,whichincludedourestimatesandassumptionswithrespecttotheestimatedfuturerevenueand relatedprofitmargins,royaltyrates,discountratesandeconomiclivesassignedtotheacquiredintangibleassets.

Resultsfromourannualindefinite-livedintangibleassetsimpairmenttestinthefourthquarterindicatedthatno impairmentoccurredduring2025.Thecarryingvalueofindefinite-livedintangibleassetsresultingfrombusiness acquisitions,consistingoftradenamesandtrademarks,was$174.8millionand$154.5millionatDecember31,2025 andDecember28,2024,respectively.

Finite-LivedIntangibleAssets

InconnectionwithouracquisitionofTaylorAdhesives,weacquired$139.6millionofidentifiablefinite-lived intangibleassets,whichconsistedofcustomerrelationshipsanddevelopedtechnology.Weutilizedtheincomeapproach toestimatethefairvalueofacquiredidentifiableintangibles,primarilyusingLevel3inputs.Weappliedsignificant judgmentindeterminingthefairvalueofintangibleassets,whichincludedourestimatesandassumptionswithrespect toestimatedfuturerevenueandrelatedprofitmargins,customerretentionrates,technologymigrationcurves,royalty rates,discountratesandeconomiclivesassignedtotheacquiredintangibleassets.

58 2025AnnualReport | AveryDennisonCorporation

Thetablebelowsummarizestheamountsandusefullivesoftheintangibleassetsassociatedwithouracquisition ofTaylorAdhesivesasoftheacquisitiondate.

RefertoNote2,“BusinessAcquisitions,”formoreinformation.

Thetablebelowsetsforthourfinite-livedintangibleassetsresultingfrombusinessacquisitionsatDecember31, 2025andDecember28,2024,whichcontinuetobeamortized.

20252024

Customerrelationships$1,040.8$509.5$531.3$916.0$438.5$477.5 Patentedandother developedtechnology305.0187.2117.8275.2156.8118.4 Tradenamesandtrademarks17.514.03.517.112.84.3 Otherintangibles3.33.2.13.22.6.6

Amortizationexpenseforfinite-livedintangibleassetsresultingfrombusinessacquisitionswas$92.8millionfor 2025,$89.4millionfor2024and$86.3millionfor2023.

Weexpectestimatedamortizationexpenseforfinite-livedintangibleassetsresultingfrombusinessacquisitions foreachofthenextfivefiscalyearsandthereaftertobeasfollows:

NOTE4.DEBT

Short-TermBorrowings

Wehad$101.5millioninoutstandingborrowingsfromU.S.commercialpaperasofDecember31,2025witha weightedaverageinterestrateof3.93%andnooutstandingborrowingsfromU.S.commercialpaperasofDecember28, 2024.

WehaveaEuro-CommercialPaperProgramunderwhichwemayissueunsecuredcommercialpapernotesupto amaximumaggregateamountoutstandingof$500million.Proceedsfromissuancesunderthisprogrammaybeusedfor generalcorporatepurposes.Thematuritiesofthenotesvary,butmaynotexceed364daysfromthedateofissuance. Ourpaymentobligationswithrespecttoanynotesissuedunderthisprogramarebackedbyourrevolvingcreditfacility (the“Revolver”).Therearenofinancialcovenantsunderthisprogram.Underthisprogram,wehada$415.5million outstandingbalanceasofDecember31,2025withaweightedaverageinterestrateof2.19%andnooutstanding balanceasofDecember28,2024.

Short-TermCreditFacilities

InJune2024,weenteredintoaCreditAgreement(the“CreditAgreement”)relatedtotheRevolvertoborrowup toanaggregateof$1.2billionthroughitsmaturitydateofJune26,2029.TheRevolverrefinancedthepriorrevolving creditfacilityundertheFifthAmendedandRestatedCreditAgreementdatedasofFebruary13,2020,asamended. PursuanttotheCreditAgreement,thecommitmentsundertheRevolvermaybeincreasedbyupto$600million,subject tolenderapprovalsandcustomaryrequirements.Undercertaincircumstances,wemayrequestthatthecommitments undertheRevolverbeextendedforone-yearperiodsinaccordancewiththetermsandconditionsoftheCredit Agreement.WeusetheRevolverasaback-upfacilityforourcommercialpaperprogramandforothercorporate purposes.

NobalancewasoutstandingundertheRevolverasofDecember31,2025orDecember28,2024.Commitment feesassociatedwithrevolvingcreditfacilitiesin2025,2024and2023were$1.3million,$1.5millionand$1.2million, respectively.

InadditiontotheRevolver,wehaveshort-termlinesofcreditavailableinvariouscountriesofapproximately $222millionintheaggregateatDecember31,2025.Theselinesmaybecancelledatanytimebyusortheissuing banks.Borrowingsunderourshort-termlinesofcreditwerenotmaterialasofDecember31,2025orDecember28, 2024.

Fromtimetotime,weprovideguaranteesoncertainarrangementswithbanks.Ourexposuretotheseguarantees isnotmaterial.

Long-TermBorrowings

InSeptember2025,weissued €500millionofseniornotes,dueSeptember11,2035,whichbearaninterestrate of4.000%peryear,payableannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,wereapproximately €494million($577million),whichweusedinparttofinancethe TaylorAdhesivesacquisitionandrepayexistingindebtednessunderourcommercialpaperprogram.RefertoNote2, “BusinessAcquisitions,”totheConsolidatedFinancialStatementsformoreinformationregardingouracquisitionof TaylorAdhesives.

Inthethirdquarterof2025,werepaidour$5millionofmedium-termnotesatmaturityusingcashflowsfrom operationsandcommercialpaperborrowings.

Inthesecondquarterof2025,werepaidour$25millionofmedium-termnotesatmaturityusingcashflowsfrom operationsandcommercialpaperborrowings.

Inthefirstquarterof2025,werepaidour €500millionofseniornotesatmaturityusingthenetproceedsfromthe €500millionofseniornotesweissuedinthefourthquarterof2024,cashflowsfromoperationsandcommercialpaper borrowings.

InNovember2024,weissued €500millionofseniornotes,dueNovember4,2034,whichbearaninterestrateof 3.750%peryear,payableannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,wereapproximately €495million($539million),whichweusedtorepayour €500millionofseniornotesmaturinginMarch2025andforgeneralcorporatepurposes.

InAugust2024,werepaidour$300millionofseniornotesatmaturityusingcashflowsfromoperationsand commercialpaperborrowings.

During2024,wereclassifiedour$5millionofmedium-termnotesdueinthethirdquarterof2025,$25millionof medium-termnotesdueinthesecondquarterof2025and €500millionofseniornotesdueinthefirstquarterof2025 from“Long-termdebtandfinanceleases”to“Short-termborrowingsandcurrentportionoflong-termdebtandfinance leases”intheConsolidatedBalanceSheets.

InMarch2023,weissued$400millionofseniornotes,dueMarch15,2033,whichbearaninterestrateof 5.750%peryear,payablesemiannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,were$394.9million,whichweusedtorepayindebtednessunderourcommercialpaper programsandour$250millionofseniornotesthatmaturedonApril15,2023.

60 2025AnnualReport | AveryDennisonCorporation

Ourlong-termdebt,andrelatedinterestrates,atyear-end2025and2024isshownbelow.

(Inmillions)

Long-termdebt

20252024

Medium-termnotes: Series1995due2025$—$30.0

Long-termnotes:

Seniornotesdue2025at1.250%(1) —521.1

Seniornotesdue2028at4.875%498.0497.4

Seniornotesdue2030at2.650%497.4496.7

Seniornotesdue2032at2.250%496.3495.7

Seniornotesdue2033at6.000%149.4149.3

Seniornotesdue2033at5.750%396.3395.8

Seniornotesdue2034at3.750%(1) 582.0515.9

Seniornotesdue2035at4.000%(1) 579.6—

Lessamountclassifiedascurrent—(551.1)

Totallong-termdebt(2) $3,199.0$2,550.8

(1) Theseseniornotesareeuro-denominated,eachwithafacevalueof €500million. (2) Includedunamortizeddebtissuancecostsanddebtdiscountsof$14.6millionand$10.2million,respectively,asofyear-end2025and$12.6million and$7.9million,respectively,asofyear-end2024.

Atyear-end2024,ourmedium-termnoteshadaccruedinterestataweightedaveragefixedrateof7.5%.

Weexpectmaturitiesofourlong-termdebtforeachofthenextfivefiscalyearsandthereaftertobeasfollows:

Other

RefertoNote7,“CommitmentsandLeases,”forinformationrelatedtofinanceleases.

TheRevolvercontainsafinancialcovenantrequiringthatwemaintainaspecifiedratiooftotaldebtminus unrestrictedcashandcashequivalentsinexcessof$50milliontoacertainmeasureofincome.AsofDecember31,2025 andDecember28,2024,wewereincompliancewiththisfinancialcovenant.

Ourtotalinterestcostsin2025,2024and2023were$138.3million,$124.0millionand$126.5million, respectively,ofwhich$2.9million,$7.0millionand$7.5million,respectively,wascapitalizedaspartofthecostof property,plantandequipment,capitalizedsoftwareandcapitalizedimplementationcostsassociatedwithcloud computingarrangements.

Theestimatedfairvalueofourlong-termdebtisprimarilybasedonthecreditspreadaboveU.S.Treasury securitiesoreurogovernmentbondsecurities,asapplicable,onnoteswithsimilarrates,creditratingsandremaining maturities.Thefairvalueofshort-termborrowings,whichincludescommercialpaperissuancesandshort-termlinesof credit,approximatestheircarryingvaluegiventheirshortduration.Thefairvalueofourtotaldebtwas$3.67billionat December31,2025and$3.01billionatDecember28,2024.Fairvalueamountsweredeterminedbasedprimarilyon Level2inputs.RefertoNote1,“SummaryofSignificantAccountingPolicies,”formoreinformation. AveryDennisonCorporation | 2025AnnualReport

NOTE5.FINANCIALINSTRUMENTS

Weusevariousderivativeinstrumentstomanagerisksinforeigncurrencyexchangerates,commoditypricesand interestrates.WerecognizederivativeinstrumentsaseitherassetsorliabilitiesatfairvalueintheConsolidatedBalance Sheets.

FairValueHedges

Weenterintoforeigncurrencyforwardcontractstohedgeoureuro-denominateddebttooffsetchangesinthe fairvalueofthehedgeditemattributabletoforeigncurrencyrisk.AsofDecember31,2025,theforeigncurrencyforward contractshedgingour €500millionofseniornotesdueinthethirdquarterof2035andour €500millionofseniornotes dueinthefourthquarterof2034matureinSeptember2026andDecember2026,respectively.

CashFlowHedges

WeenteredintoU.S.dollartoeurocross-currencyswapcontractswithatotalnotionalamountof$250millionto effectivelyconvertourfixed-rateU.S.dollar-denominateddebtintoeuro-denominateddebt,includingsemiannual interestpaymentsandthepaymentofprincipalatmaturity.Duringthetermofthecontracts,whichendonApril30, 2030,wepayfixed-rateinterestineurosandreceivefixed-rateinterestinU.S.dollars.

Wedesignatecommodityforwardcontractsonforecastedpurchasesofcommoditiesascashflowhedges.

During2025and2024,weenteredintointerestrateforward-startingswapcontractsthatwedesignatedascash flowhedgesthatwereterminatedupontheissuanceofour €500millionofseniornotesdueinthethirdquarterof2035 andour €500millionofseniornotesdueinthefourthquarterof2034.Theresultinggainsandlosseswillbeamortizedto interestexpenseoverthetermofthehedgedfixed-rateinterestpayments.

NetInvestmentHedges

Weenterintoforeigncurrencycontractsandzero-costcollars,whicharecombinedasnetinvestmenthedgesfor accountingpurposes.Thenetinvestmenthedgesminimizetheeffectofforeigncurrencyexchangeratesonournet investmentincertainforeignoperationsbetweenthesoldputstrikeandboughtcallstrikeratesofthecontracts.Asof December31,2025,thenotionalvalueofthesehedgestotaled €1.0billion,consistingoftwo €500milliontranchesthat matureinSeptember2026andDecember2026.

OtherDerivativeInstruments

OuroutstandingforeigncurrencyexchangecontractsasofDecember31,2025wererecordedinvarious currencies,primarilytheU.S.dollar,Canadiandollar,euro,Chineserenminbi,BritishpoundsterlingandHongKongdollar. Weenterintoforeigncurrencyexchangecontractstoreducetheriskfromforeigncurrencyexchangeratefluctuations associatedwithourreceivables,payables,loansandfirmcommitmentsdenominatedincertainforeigncurrenciesthat ariseprimarilyasaresultofouroperationsoutsidetheU.S.Forotherderivativeinstrumentsnotdesignatedashedging instruments,thegainorlossisrecognizedincurrentearnings.

DerivativeInstrumentFinancialStatementImpacts

Thefollowingtableshowsthefairvalueandbalancesheetlocationsofourderivativeinstrumentsasof December31,2025andDecember28,2024:

(Inmillions)

December31,2025

Derivativesdesignatedashedges:

Foreigncurrencyforwardcontracts$1,173.8$—$—$—$4.5Fairvalue Cross-currencyswapcontracts250.0———9.9Cashflow Commoditycontracts1.7——.3—Cashflow Foreigncurrencyforwardcontracts withcollars1,173.8—2.6——Netinvestment Total$—$2.6$.3$14.4

Derivativesnotdesignatedashedges: Foreigncurrencyexchangecontracts$1,467.5$4.2$—$3.4$— December28,2024

Derivativesdesignatedashedges:

Foreigncurrencyforwardcontracts$958.9$.2$—$36.7$—Fairvalue Cross-currencyswapcontracts250.0—10.9——Cashflow Commoditycontracts2.9.4—.4—Cashflow Foreigncurrencyforwardcontracts withcollars958.917.8—.2—Netinvestment Total$18.4$10.9$37.3$—

Derivativesnotdesignatedashedges: Foreigncurrencyexchangecontracts$1,741.8$11.9$—$4.2$—

Thefollowingtablesshowthecomponentsofthenetgains(losses)recognizedinincomerelatedtoderivative instrumentsdesignatedasfairvaluehedges:

(Inmillions)

202520242023

Gain(loss)onderivativesdesignatedasfairvaluehedges: Foreigncurrencyforwardcontracts-Marketing,generalandadministrativeexpense$70.2$(36.4)$—

Theimpactofthehedgeditemsassociatedwiththederivativeinstrumentinthetableabovearerecordedtothe sameincomestatementlineasthederivativeinstrument.Thenetgains(losses)recognizedinincomerelatedtoour cross-currencyswapcontractsandcommoditycontractswerenotmaterialin2025,2024or2023.

Thelossrecognizedintranslationfornetinvestmenthedgeswasapproximately$49millionfortheyearended December31,2025.Thegainrecognizedintranslationfornetinvestmenthedgeswasapproximately$15millionforthe yearendedDecember28,2024.

Thefollowingtableshowsthecomponentsofthenetgains(losses)recognizedinincomerelatedtothederivative instrumentsnotdesignatedashedges:

(Inmillions)StatementsofIncomeLocation202520242023 ForeigncurrencyexchangecontractsCostofproductssold$(.9)$3.2$3.4 ForeigncurrencyexchangecontractsMarketing,generalandadministrative expense1.9(15.2)5.5 $1.0$(12.0)$8.9

NOTE6.PENSIONANDOTHERPOSTRETIREMENTBENEFITS

DefinedBenefitPlans

Wesponsoranumberofdefinedbenefitplans,theaccrualofbenefitsundersomeofwhichhasbeenfrozen, coveringeligibleemployeesintheU.S.andcertainothercountries.Benefitspayabletoanemployeearebasedprimarily onyearsofserviceandtheemployee’scompensationduringthecourseofhisorheremploymentwithourcompany.

WearealsoobligatedtopayunfundedterminationindemnitybenefitstocertainemployeesoutsidetheU.S., whicharesubjecttoapplicableagreements,lawsandregulations.Nocostsrelatedtothesebenefitshavebeenincluded inthedisclosuresbelowbecausetheyhavenotbeensignificant.

PlanAssets

Assetsinournon-U.S.plansareinvestedinaccordancewithlocallyacceptedpracticesandprimarilyinclude equitysecurities,fixedincomesecurities,insurancecontractsandcash.Assetallocationsandinvestmentsvaryby countryandplan.Ourtargetplanassetinvestmentallocationforournon-U.S.plansintheaggregateisapproximately 26%inequitysecurities,58%infixedincomesecuritiesandcash,and16%ininsurancecontractsandotherinvestments, subjecttoperiodicfluctuationsamongtheseassetclasses.

FairValueMeasurements

Thevaluationmethodologiesweuseforassetsmeasuredatfairvaluearedescribedbelow.

Cashisvaluedatnominalvalue.Cashequivalentsandmutualfundsarevaluedatfairvalueasdeterminedby quotedmarketprices,baseduponthenetassetvalue(“NAV”)ofsharesheldatyear-end.Pooledfundsarestructuredas collectivetrusts,notpubliclytradedandvaluedbycalculatingNAVperunitbasedontheNAVoftheunderlyingfunds/ trustsasapracticalexpedientforthefairvalueofthepooledfunds.Thepooledfundsarecategorizedbytheinvestment strategy,whichisprimarilyequityandfixedincomesecurities.Thepooledfundscategorizedasotherinvestmentsare primarilyinvestmentsinrealestatefunds.Insurancecontractsarevaluedatbookvalue,whichapproximatesfairvalue andiscalculatedusingtheprior-yearbalanceplusorminusinvestmentreturnsandchangesincashflows.

Thesemethodsmayproduceafairvaluecalculationthatmaynotbeindicativeofnetrealizablevalueorreflective offuturefairvalues.Whilewebelievethesevaluationmethodsareappropriateandconsistentwithothermarket participants,theuseofdifferentmethodologiesorassumptionstodeterminethefairvalueofcertainfinancialinstruments couldresultinadifferentfairvaluemeasurementatthereportingdate.

Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy(asapplicable),non-U.S.planassetsatfair value:

FairValueMeasurementsUsing (Inmillions)Total Quoted Prices inActive Markets (Level1) Significant Other Observable Inputs (Level2) Significant Other Unobservable Inputs (Level3) 2025 Cash$1.6$1.6$—$—

Totalnon-U.S.planassetsatfairvalue$659.5

(1) PooledfundsthataremeasuredatfairvalueusingtheNAVperunit(oritsequivalent)practicalexpedienthavenotbeenclassifiedinthefairvalue hierarchy.Thefairvalueamountspresentedinthistablereconciletototalnon-U.S.planassets.

ThefollowingtablepresentsareconciliationofLevel3non-U.S.planassetactivityduring2025and2024:

(Inmillions) Insurance Contracts

Level3Assets

PooledFunds–RealEstate Investment TrustsTotal

BalanceatDecember30,2023$42.6$6.4$49.0

Netrealizedandunrealizedgain(loss)1.1(1.0).1 Purchases3.7—3.7 Settlements(5.8)—(5.8)

Impactofchangesinforeigncurrencyexchangerates(2.6)(.1)(2.7) BalanceatDecember28,202439.05.344.3

Netrealizedandunrealizedgain(loss)1.2(1.5)(.3) Purchases5.5—5.5 Settlements(2.6)—(2.6) Transfer

4.4—4.4

Impactofchangesinforeigncurrencyexchangerates5.1.45.5 BalanceatDecember31,2025$52.6$4.2$56.8

PlanAssumptions

DiscountRate

Inconsultationwithouractuaries,weannuallyreviewanddeterminethediscountratesusedtovalueourpension andotherpostretirementobligations.Theassumeddiscountrateforeachpensionplanreflectsmarketratesforcurrently availablehighqualitycorporatebonds.Ourdiscountrateisdeterminedbyevaluatingyieldcurvesconsistingoflarge populationsofhighqualitycorporatebonds.Theprojectedpensionbenefitpaymentstreamsarethenmatchedwithbond portfoliostodeterminearatethatreflectstheliabilitydurationuniquetoourplans.

Weusethefull-yieldcurveapproachtoestimatetheserviceandinterestcostcomponentsofnetperiodicbenefit costforourpensionandotherpostretirementbenefitplans.Underthisapproach,weapplymultiplediscountratesfroma yieldcurvecomposedoftheratesofreturnonseveralhundredhigh-quality,fixedincomecorporatebondsavailableat themeasurementdate.Webelievethatthisapproachprovidesamoreprecisemeasurementofserviceandinterestcost byaligningthetimingofaplan’sliabilitycashflowstoitscorrespondingratesontheyieldcurve.

Long-termReturnonAssets

Wedeterminethelong-termrateofreturnassumptionforplanassetsbyreviewingthehistoricalandexpected returnsofboththeequityandfixedincomemarkets,takingintoaccountourassetallocation,thecorrelationbetween returnsinourassetclasses,andourmixofactiveandpassiveinvestments.Additionally,weevaluatecurrentmarket conditions,includinginterestrates,andreviewmarketdataforreasonablenessandappropriateness.

MeasurementDate

Whenapplicable,wemeasuretheactuarialvalueofourbenefitobligationsandplanassetsusingthecalendar month-endclosesttoourfiscalyear-endandadjustforanycontributionsorothersignificanteventsbetweenthe measurementdateandourfiscalyear-end.

PlanBalanceSheetReconciliations

Thefollowingtableprovidesareconciliationofbenefitobligations,planassets,fundedstatusoftheplansand accumulatedothercomprehensivelossforournon-U.S.definedbenefitplans:

PlanBenefitObligations

Changeinprojectedbenefitobligations

Projectedbenefitobligationsatbeginningofyear$664.4$679.9

Accumulatedbenefitobligationsatendofyear$629.4$608.0

Theactuarialgainwerecordedin2025wasprimarilyduetohigherdiscountratesusedtomeasureourprojected benefitobligationsattheendoftheyear.

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Fornon-U.S.plans,theprojectedbenefitobligationsandfairvaluesofplanassetsforpensionplanswithprojected benefitobligationsinexcessofplanassetswereapproximately$268millionand$181million,respectively,atyear-end 2025andapproximately$245millionand$156million,respectively,atyear-end2024.

Fornon-U.S.plans,theaccumulatedbenefitobligationsandfairvaluesofplanassetsforpensionplanswith accumulatedbenefitobligationsinexcessofplanassetswereapproximately$227millionand$152million,respectively, atyear-end2025andapproximately$230millionand$151million,respectively,atyear-end2024.

AccumulatedOtherComprehensiveLoss

Thepre-taxamountsrelatedtoournon-U.S.definedbenefitplansrecognizedin“Accumulatedother comprehensiveloss”intheConsolidatedBalanceSheetsaredetailedbelow:

Thefollowingtableshowsthepre-taxamountsrecognizedin“Othercomprehensiveloss(income)”:

Netactuarial(gain)loss$(36.8)$(3.4)$32.6 Priorservicecredit1.45.1(.1)

Amortizationofunrecognized:

Netactuarial(gain)loss(1.5)(.4)2.1 Priorservicecost.1.5.4

Netamountrecognizedinothercomprehensiveloss(income)$(36.8)$1.9$35.1

PlanIncomeStatementReconciliations

Thefollowingtableshowsthecomponentsofnetperiodicbenefitcostforournon-U.S.definedbenefitplans:

Expectedreturnonplanassets(36.6)(37.4)(33.2)

Amortizationofactuarial(gain)loss1.5.4(2.1) Amortizationofpriorservicecost(.1)(.5)(.4)

Recognizedgainonsettlements—(.1)(.1)

Netperiodicbenefitcost(credit)$5.7$.3$(.6)

Servicecostandcomponentsofnetperiodicbenefitcostotherthanservicecostwereincludedin“Marketing, generalandadministrativeexpense”and“Othernon-operatingexpense(income),net”intheConsolidatedStatementsof Income,respectively.

Thefollowingtableshowstheweightedaverageassumptionsusedtodeterminenetperiodiccost:

PlanContributions

Wemakecontributionstoourdefinedbenefitplanssufficienttomeettheminimumfundingrequirementsof applicablelawsandregulations,plusadditionalamounts,ifany,wedeterminetobeappropriate.Ourexpected contributionsin2026forournon-U.S.definedbenefitplansis$21.3million.

FutureBenefitPayments

Thefuturebenefitpaymentsofournon-U.S.definedbenefitplansshownbelowreflecttheexpectedservice periodsforeligibleparticipants.

U.S.DefinedBenefitPensionPlans

OurU.S.definedbenefitplans,theaccrualofbenefitswhichhasbeenfrozen,covercertaineligibleemployeesin theU.S.Benefitspayabletoanemployeewerebasedprimarilyonyearsofserviceandtheemployee’scompensation duringthecourseofhisorheremploymentwithourcompany.Ourpolicyistofundthecostofthesebenefitsfrom operatingcashflows.Atyear-end2025,ourU.S.definedpensionbenefitobligationandrelatedlossrecordedin “Accumulatedothercomprehensiveloss”wereapproximately$41millionand$8million,respectively.Atyear-end2024, ourU.S.definedpensionbenefitobligationsandrelatedlossrecordedin“Accumulatedothercomprehensiveloss”were approximately$45millionand$9million,respectively.Netperiodicbenefitcostwasnotmaterialin2025,2024or2023.

PostretirementHealthBenefits

WeprovidepostretirementhealthbenefitstocertainofourretiredU.S.employeesuptotheageof65undera cost-sharingarrangementandprovidesupplementalMedicarebenefitstocertainofourU.S.retireesovertheageof65. OurpostretirementhealthbenefitplanwasclosedtonewparticipantsretiringafterDecember31,2021.Ourpolicyisto fundthecostofthesepostretirementbenefitsfromoperatingcashflows.Whilewedonotintendtoterminatethese postretirementhealthbenefits,wemaydosoatanytime,subjecttoapplicablelawsandregulations.Atyear-end2025, ourpostretirementhealthbenefitsobligationandrelatedlossrecordedin“Accumulatedothercomprehensiveloss”were approximately$2millionand$9million,respectively.Atyear-end2024,ourpostretirementhealthbenefitsobligation andrelatedlossrecordedin“Accumulatedothercomprehensiveloss”wereapproximately$2millionand$9million, respectively.Netperiodicbenefitcostwasnotmaterialin2025,2024or2023.

DefinedContributionPlans

Wesponsorvariousdefinedcontributionplansworldwide,thelargestofwhichistheAveryDennisonCorporation EmployeeSavingsPlan(“SavingsPlan”),a401(k)planforourU.S.employees.

Werecognizedexpenseof$34.0million,$31.9millionand$30.3millionin2025,2024and2023,respectively, relatedtoouremployercontributionsandemployermatchofparticipantcontributionstotheSavingsPlan.

OtherRetirementPlans

Wehavedeferredcompensationplansandprogramsthatpermiteligibleemployeestodeferaportionoftheir compensation.Thecompensationvoluntarilydeferredbytheparticipant,togetherwithcertainemployercontributions, earnsspecifiedandvariableratesofreturn.Asofyear-end2025and2024,wehadaccrued$99.8millionand $99.0million,respectively,forourobligationsundertheseplans.Aportionoftheinterestoncertainofourcontributions maybeforfeitedbyparticipantsiftheiremploymentterminatesbeforeage55otherthanbyreasonofdeathordisability.

OurDirectorsDeferredEquityCompensationProgramallowsournon-employeedirectorstoelecttoreceivetheir cashcompensationindeferredstockunits(“DSUs”)issuedunderourequityplan.Additionally,twolegacydeferred compensationplanshadDSUsthatwereissuedunderourthen-activeequityplans.Dividendequivalents,representing thevalueofdividendspersharepaidonsharesofourcommonstockandcalculatedwithreferencetothenumberof AveryDennisonCorporation | 2025AnnualReport 69

DSUsheldasofaquarterlydividendrecorddate,arecreditedintheformofadditionalDSUsontheapplicabledividend payabledate.DSUsareconvertedintosharesofourcommonstock,lessfractionalshares,andissuedtoaparticipating directoruponhisorherseparationfromourBoard.DSUsintheamountof0.03millionand0.04millionwereoutstanding asofyear-end2025and2024,respectively,withanaggregatevalueofapproximately$5millionand$8million, respectively.

Weholdcompany-ownedlifeinsurancepolicies,theproceedsfromwhicharepayabletousuponthedeathof coveredparticipants.Thecashsurrendervaluesofthesepolicies,netofoutstandingloans,whichareincludedin“Other assets”intheConsolidatedBalanceSheets,were$259.7millionand$247.4millionatyear-end2025and2024, respectively.

NOTE7.COMMITMENTSANDLEASES

Supplementalcostinformationrelatedtoleasesisshownbelow.

(Inmillions)202520242023 Operatingleasecosts$77.7$75.1$73.6

Leasecostsrelatedtofinanceleaseswerenotmaterialin2025,2024or2023.

Supplementalbalancesheetinformationrelatedtoleasesisshownbelow.

(1) Financeleaseassetsarenetofaccumulatedamortizationof$16.0millionand$18.7millionasofyear-end2025and2024,respectively.

Supplementalcashflowinformationrelatedtoleasesisshownbelow.

(Inmillions)202520242023

Cashpaidforamountsincludedinmeasurementofoperatinglease liabilities$63.8$61.0$55.8 Operatingleaseassetsobtainedinexchangeforoperatinglease liabilities 47.693.092.4

Cashflowsrelatedtofinanceleaseswerenotmaterialin2025,2024or2023.

WeightedaverageremainingleasetermanddiscountrateinformationrelatedtoleasesasofDecember31,2025 andDecember28,2024isshownbelow.

OperatingandfinanceleaseliabilitiesbymaturitydatefromDecember31,2025areshownbelow.

AsofDecember31,2025,wehadnosignificantoperatingorfinanceleasesthathadnotyetcommenced.

NOTE8.CONTINGENCIES

LegalProceedings

Weareinvolvedinvariouslawsuits,claims,inquiriesandotherregulatoryandcompliancematters,mostofwhich areroutinetothenatureofourbusiness.Whenitisprobablethatalosswillbeincurredandwherearangeoftheloss canbereasonablyestimated,thebestestimatewithintherangeisaccrued.Whenthebestestimatewithintherange cannotbedetermined,thelowendoftherangeisaccrued.Theultimateresolutionoftheseclaimscouldaffectfuture resultsofoperationsshouldourexposurebemateriallydifferentfromourestimatesorshouldweincurliabilitiesthat werenotpreviouslyaccrued.Probableinsurancereimbursementsarenotoffsetagainstpotentialliabilities.

Becauseoftheuncertaintiesassociatedwithclaimsresolutionandlitigation,futureexpensestoresolvelegal proceedingscouldbehigherthantheliabilitieswehaveaccrued.Ifinformationweretobecomeavailablethatallowedus toreasonablyestimateanamounthigherorlowerthanwhatwehaveaccruedintherangeofpotentialexpenses determinedtobeprobable,wewouldadjustouraccruedliabilitiesaccordingly.Additionallawsuits,claims,inquiriesand otherregulatoryandcompliancematterscouldariseinthefuture.Therangeofexpensesforresolvinganyfuturematters wouldbeassessedastheyarise;untilthen,arangeofpotentialexpensesfortheirresolutioncannotbedetermined. Baseduponcurrentinformation,webelievethattheimpactoftheresolutionoflegalproceedingswouldnotbe, individuallyorintheaggregate,materialtoourfinancialposition,resultsofoperationsorcashflows.

WewerepartytoapatentinfringementlitigationfiledbyADASAInc.(“Adasa”),anunrelatedthirdparty,in2017 regardingcertainRFIDproductswithinourSolutionsGroupreportablesegment.Werecordedacontingentliabilityinthe amountof$26.6millionrelatedtothismatterin2021.Weincreasedourcontingentliabilityto$82.9millionasof December30,2023,reflectingourbestestimateoftheanticipatedjudgmentfollowingaJuly2023juryretrialthat affirmedthepatent’svalidity.

OnApril25,2024,weenteredintoaSettlementAgreement,LicenseandMutualReleasewithAdasapursuantto which,amongotherthings,(i)weagreedtopay$75.0milliontoAdasawithoutanyconcessionsoradmissionsofliability; (ii)Adasaagreedtograntusaworldwide,nonexclusive,nontransferablefully-paidup,andongoingroyalty-free perpetuallicense,withouttherighttosublicense,tothepatentsatissueinthelitigation;and(iii)thepartiesmutually releasedallclaimsagainstoneanother.Wepaidtheagreed-uponsettlementamounttoAdasaonApril26,2024and AdasafiledaStipulationofSatisfactionofJudgmentwiththetrialcourtonApril29,2024.Thesettlementpaymentand adjustmentstoourpriorcontingentliabilityarereflectedinourfiscal2024and2023consolidatedfinancialstatements.

EnvironmentalExpenditures

Environmentalexpendituresaregenerallyexpensed.Whenitisprobablethatalosswillbeincurredandwherea rangeofthelosscanbereasonablyestimated,thebestestimatewithintherangeisaccrued.Whenthebestestimate withintherangecannotbedetermined,thelowendoftherangeisaccrued.Theultimateresolutionofthesematters couldaffectfutureresultsofoperationsshouldourexposurebemateriallydifferentfromourestimatesorshouldweincur liabilitiesthatwerenotpreviouslyaccrued.Probableinsurancereimbursementsarenotoffsetagainstpotentialliabilities. Wereviewourestimatesofthecostsofcomplyingwithenvironmentallawsrelatedtotheremediationandcleanupof varioussites,includingsitesinwhichgovernmentalagencieshavedesignatedusasapotentiallyresponsibleparty (“PRP”).However,environmentalexpendituresfornewlyacquiredassetsandthosethatextendorimprovetheeconomic usefullifeofexistingassetsarecapitalizedandamortizedovertheshorteroftheestimatedusefullifeoftheacquired assetortheremaininglifeoftheexistingasset.

AsofDecember31,2025,wehavebeendesignatedbytheU.S.EnvironmentalProtectionAgency(“EPA”)and/or otherresponsiblestateagenciesasaPRPattenwastedisposalorwasterecyclingsitesthatarethesubjectofseparate investigationsorproceedingsconcerningallegedsoiland/orgroundwatercontamination.Nosettlementofourliability relatedtoanyofthesesiteshasbeenagreedupon.WeareparticipatingwithotherPRPsatthesesitesandanticipate thatourshareofremediationcostswillbedeterminedpursuanttoagreementsthatwenegotiatewiththeEPAorother governmentalauthorities.

Theseestimatescouldchangeasaresultofchangesinplannedremedialactions,remediationtechnologies,site conditions,theestimatedtimetocompleteremediation,environmentallawsandregulations,andotherfactors.Because oftheuncertaintiesassociatedwithenvironmentalassessmentandremediationactivities,ourfutureexpensesto remediatethesesitescouldbehigherthantheliabilitieswehaveaccrued.Ifinformationweretobecomeavailablethat allowedustoreasonablyestimateanamounthigherorlowerthanwhatwehaveaccruedintherangeofpotential expenses,wewouldadjustourenvironmentalliabilitiesaccordingly.Inaddition,wemaybeidentifiedasaPRPat additionalsitesinthefuture.Therangeofexpensesforremediationofanyfuture-identifiedsiteswouldbeaddressedas theyarise;untilthen,arangeofexpensesfortheirremediationcannotbedetermined.

Theactivityrelatedtoourenvironmentalliabilitiesin2025and2024isshownbelow: (Inmillions)

$10.0$13.0

Approximately$2millionand$5millionofthisbalancewasclassifiedasshort-termandincludedin“Othercurrent liabilities”intheConsolidatedBalanceSheetsasofDecember31,2025andDecember28,2024,respectively.

NOTE9.FAIRVALUEMEASUREMENTS

RecurringFairValueMeasurements

Assetsandliabilitiescarriedatfairvalue,measuredonarecurringbasis,asofDecember31,2025wereas follows:

Derivativeliabilities$18.0$.3$17.7$— Contingentconsiderationliabilities2.7——2.7

Assetsandliabilitiescarriedatfairvalue,measuredonarecurringbasis,asofDecember28,2024wereas follows:

FairValueMeasurementsUsing

Derivativeassets41.2.440.8— Bankdrafts5.25.2—— Liabilities

Derivativeliabilities$41.5$.4$41.1$—

Contingentconsiderationliabilities4.8——4.8

Investmentsincludedfixedincomesecurities(primarilyU.S.governmentandcorporatedebtsecurities)measured atfairvalueusingquotedprices/bidsandamoneymarketfundmeasuredatfairvalueusingNAV.AsofDecember31, 2025,investmentsof$1.1million,$46.9million,and$1.1millionwereincludedin“Cashandcashequivalents,”“Other currentassets,”and“Otherassets,”respectively,intheConsolidatedBalanceSheets.AsofDecember28,2024, investmentsof$1.5million,$38.1million,and$8.4millionwereincludedin“Cashandcashequivalents,”“Othercurrent assets,”and“Otherassets,”respectively,intheConsolidatedBalanceSheets.DerivativeinstrumentsthatareexchangetradedaremeasuredatfairvalueusingquotedmarketpricesandclassifiedwithinLevel1ofthevaluationhierarchy. Derivativeinstrumentsmeasuredbasedonforeigncurrencyexchangerateinputsthatarereadilyavailableinpublic marketsareclassifiedwithinLevel2ofthevaluationhierarchy.Bankdrafts(maturitiesgreaterthanthreemonths)are valuedatfacevalueduetotheirshort-termnatureandwereincludedin“Othercurrentassets”intheConsolidated BalanceSheets.

Contingentconsiderationliabilitiesrelatetoestimatedearn-outpaymentsassociatedwithanacquisitioncompletedin 2022,whichissubjecttotheacquiredcompanyachievingcertainpost-acquisitionperformancetargets.Thisliabilitywas recordedbasedontheexpectedpaymentsandhasbeenclassifiedasLevel3.Activityrelatedtocontingentconsiderationwas immaterialin2025and2024.

Inadditiontotheinvestmentsdescribedabove,weholdventureinvestmentsthathadatotalcarryingvalueof approximately$58millionand$45millionasofDecember31,2025andDecember28,2024,respectively,whichwas includedin“Otherassets”intheConsolidatedBalanceSheets.WeholdcertainventureinvestmentsbasedonLevel1inputs; thefairvalueoftheseinvestmentswas$1.1millionasofDecember31,2025,and$8.4millionasofDecember28,2024.We recognized$23.3millionand$19.2millioninnetlossesin2025and2024,respectively,andnonetgainsorlossesin2023in ourventureandotherinvestments.Thesenetgainsorlosseswererecordedin“Otherexpense(income),net”inthe ConsolidatedStatementsofIncome.

NOTE10.NETINCOMEPERCOMMONSHARE

Netincomepercommonsharewascomputedasfollows:

(Inmillions,exceptpershareamounts)202520242023 (A)Netincome$688.0$704.9$503.0

(B)Weightedaveragenumberofcommonsharesoutstanding78.180.480.7 Dilutiveshares(additionalcommonsharesissuableunderstockbasedawards) .2.3.4

(C)Weightedaveragenumberofcommonsharesoutstanding, assumingdilution

78.380.781.1

Netincomepercommonshare(A)÷(B)$8.81$8.77$6.23

Netincomepercommonshare,assumingdilution(A)÷(C)$8.79$8.73$6.20

Certainstock-basedcompensationawardswereexcludedfromthecomputationofnetincomepercommonshare, assumingdilution,becausetheywouldnothavehadadilutiveeffect.Stock-basedcompensationawardsexcludedfrom thecomputationtotaled0.1millionsharesin2025,2024and2023.

NOTE11.SUPPLEMENTALEQUITYANDCOMPREHENSIVEINCOMEINFORMATION CommonStockandShareRepurchaseProgram

OurAmendedandRestatedCertificateofIncorporation,asamended,authorizesfivemillionsharesof$1parvalue preferredstock(ofwhichnosharesareoutstanding),withrespecttowhichourBoardmayfixtheseriesandtermsof issuance,and400millionsharesof$1parvaluevotingcommonstock.

Fromtimetotime,ourBoardauthorizestherepurchaseofsharesofouroutstandingcommonstock.Repurchased sharesmaybereissuedunderourlong-termincentiveplanorusedforothercorporatepurposes.In2025,we repurchasedapproximately3.2millionsharesofourcommonstockatanaggregatecostof$575.6million.In2024,we repurchasedapproximately1.2millionsharesofourcommonstockatanaggregatecostof$247.5million.

InApril2025,ourBoardauthorizedtherepurchaseofsharesofourcommonstockwithafairmarketvalueofup to$750million,excludinganyfees,commissionsorotherexpensesrelatedtosuchpurchasesandinadditiontothe amountoutstandingunderourpreviousBoardauthorization.Sharesofourcommonstockintheaggregateamountof $526.3millionremainedauthorizedforrepurchaseunderthisBoardauthorizationasofDecember31,2025.Board authorizationsremainineffectuntilsharesintheamountauthorizedthereunderhavebeenrepurchased.

TreasurySharesReissuance

Wefundaportionofouremployee-relatedcostsusingsharesofourcommonstockheldintreasury.Wereduce capitalinexcessofparvaluebasedonthegrantdatefairvalueofvestingawardsandrecordnetgainsorlosses associatedwithusingtreasurysharestoretainedearnings.

AccumulatedOtherComprehensiveLoss

Thechangesin“Accumulatedothercomprehensiveloss”(netoftax)for2025and2024wereasfollows:

(Inmillions)

Foreign Currency Translation(1)

Pensionand Other Postretirement Benefits CashFlow Hedges FairValue HedgesTotal

BalanceasofDecember30,2023$(328.6)$(77.5)$(2.0)$—$(408.1)

Othercomprehensiveincome(loss) beforereclassifications,netoftax(46.9)(1.3)(5.4)2.0(51.6)

Reclassificationstonetincome,netoftax—.82.8—3.6

Netcurrent-periodothercomprehensive income(loss),netoftax(46.9)(.5)(2.6)2.0(48.0)

BalanceasofDecember28,2024$(375.5)$(78.0)$(4.6)$2.0$(456.1) Othercomprehensiveincome(loss) beforereclassifications,netoftax16.526.71.9(3.6)41.5

Reclassificationstonetincome,netoftax—2.12.8—4.9

Netcurrent-periodothercomprehensive income(loss),netoftax16.528.84.7(3.6)46.4

BalanceasofDecember31,2025$(359.0)$(49.2)$.1$(1.6)$(409.7) (1) Includedtheimpactofourforeigncurrencyforwardcontractsandzero-costcollars,accountedforasnetinvestmenthedges.RefertoNote5, “FinancialInstruments,”totheConsolidatedFinancialStatementsformoreinformation.

Thefollowingtablesetsforththeincometaxexpense(benefit)allocatedtoeachcomponentofother comprehensiveincome(loss):

(Inmillions)

Foreigncurrencytranslation:

202520242023

Translationgain(loss)$(4.9)$.1$1.2

Pensionandotherpostretirementbenefits:

Netgain(loss)recognizedfromactuarialgain/lossandpriorservicecost/ credit

8.6(.6)(8.2)

Reclassificationstonetincome.7.4(.3)

Cashflowhedges:

Gain(loss)recognizedoncashflowhedges.5(1.7)(2.2) Reclassificationstonetincome1.0.91.2

Fairvaluehedges:

Changesinexcludedcomponentsoffairvaluehedges(1.1).6— Incometaxexpense(benefit)allocatedtocomponentsofother comprehensiveincome(loss)$4.8$(.3)$(8.3)

NOTE12.LONG-TERMINCENTIVECOMPENSATION

Stock-BasedAwards

Stock-BasedCompensation

Wegenerallygrantourannualstock-basedcompensationawardstoeligibleemployeesinMarchand non-employeedirectorsinMay.Certainawardsgrantedtoretirement-eligibleemployeesoneormoreyearsbeforetheir retirementdatevestuponretirement;theseawardsareaccountedforasfullyvestedoneyearfromthegrantdate.

Our2017IncentiveAwardPlan,along-termincentiveplanforemployeesandnon-employeedirectors,allowsus tograntstock-basedcompensationawards–includingstockoptions,RSUs,PUs,MSUsandDSUs–oracombinationof theseandotherawards.Underthisplan,5.4millionsharesweremadeavailableforissuance,witheachfullvalueaward countedas1.5sharesforpurposesofthenumberofsharesauthorizedforissuance.FullvalueawardsincludeRSUs,PUs andMSUs.

Stock-basedcompensationexpenseandtherelatedrecognizedtaxbenefitwereasfollows: (Inmillions)202520242023 Stock-basedcompensationexpense$27.9$28.7$22.3 Taxbenefit3.22.62.4

Thisexpensewasincludedin“Marketing,generalandadministrativeexpense”intheConsolidatedStatementsof Income.

AsofDecember31,2025,wehadapproximately$40millionofunrecognizedcompensationexpenserelatedto unvestedstock-basedawards,whichisexpectedtoberecognizedovertheremainingweightedaveragerequisiteservice periodofapproximatelytwoyears.

StockOptions

Stockoptionsmaybegrantedtoemployeesandnon-employeedirectorsatnolessthan100%ofthefairmarket valueofourcommonstockonthegrantdateandgenerallyvestoverafour-yearperiod.Optionsexpiretenyearsfrom thegrantdate.

ThefairvalueofstockoptionsisestimatedasofthegrantdateusingtheBlack-Scholesoption-pricingmodel.This modelrequiresinputassumptionsforourexpecteddividendyield,expectedstockpricevolatility,risk-freeinterestrate andtheexpectedoptionterm.

Nostockoptionsweregrantedinfiscalyears2025or2024.Theweightedaveragegrantdatefairvaluepershare forstockoptionsgrantedin2023was$47.65.

Thefollowingassumptionsareusedinestimatingthefairvalueofgrantedstockoptions:

Risk-freeinterestrateisbasedonthe52-weekaverageoftheTreasury-Bondratethathasatermcorresponding totheexpectedoptionterm.For2023,itwas3.84%.

Expectedstockpricevolatilityrepresentsanaverageoftheimpliedandhistoricalvolatility.For2023,itwas 23.90%.

Expecteddividendyieldisbasedonthecurrentannualdividenddividedbythe12-monthaverageofourmonthly stockpricepriortogrant.For2023,itwas1.84%.

Expectedoptiontermisdeterminedbasedonhistoricalexperienceunderourlong-termincentiveplans.For2023, itwas6.31years.

Thefollowingtablesummarizesinformationrelatedtostockoptions: Numberof options (inthousands)

(inyears)

Aggregate intrinsicvalue (inmillions)

OutstandingatDecember28,202463.0$190.548.68$— Exercised——

OutstandingatDecember31,202563.0$190.547.67$— Optionsvestedandexpectedtovestat December31,202558.5190.547.67— OptionsexercisableatDecember31,2025—$—$—

2025AnnualReport | AveryDennisonCorporation

Therewerenostockoptionexercisesin2025or2023.Thetotalintrinsicvalueofstockoptionsexercisedin2024 was$19.5million.Wereceivedapproximately$10millionin2024fromtheexerciseofstockoptions,andthetaxbenefit associatedwiththeseexercisedoptionswas$4.8million.Theintrinsicvalueofastockoptionisbasedontheamountby whichthemarketvalueofourstockexceedstheexercisepriceoftheoption.

PerformanceUnits(“PUs”)

PUsareperformance-basedawardsgrantedtoeligibleemployeesunderourequityplan.PUsarepayableinsharesof ourcommonstockattheendofathree-orfour-yearcliffvestingperiodprovidedthatthedesignatedperformanceobjectives areachievedattheendoftheperiod.Overtheperformanceperiod,theestimatednumberofsharesofourcommonstock issuableuponvestingisadjustedupwardordownwardbasedontheprobabilityofachievingtheperformanceobjectives establishedfortheaward.Thenumberofsharesissuedgenerallyrangesfrom0%to200%ofthetargetsharesatthetimeof grant;howeverthesharesissuedforcertainspecialPUawardscanrangeupto300%ofthetargetsharesattimeofgrant. TheweightedaveragegrantdatefairvalueforPUswas$175.53,$224.82and$180.12in2025,2024and2023, respectively.

ThefollowingtablesummarizesinformationrelatedtoawardedPUs:

(1) Reflectsadjustmentsforperformanceforthe2022-2024PUs.

ThefairvalueofvestedPUswas$6.4millionin2025,$20.6millionin2024and$22.7millionin2023.

Market-LeveragedStockUnits(“MSUs”)

MSUsareperformance-basedawardsgrantedtoeligibleemployeesunderourequityplan.MSUsarepayablein sharesofourcommonstockoverafour-yearperiodprovidedthatthedesignatedperformanceobjectiveisachievedasofthe endofeachvestingperiod.MSUsaccruedividendequivalentsduringthevestingperiod,whichareearnedandpaidonlyat vestingprovidedthat,ataminimum,threshold-levelperformanceisachieved.Thenumberofsharesearnedisbaseduponour absolutetotalshareholderreturnateachvestingdateandcanrangefrom0%to200%ofthetargetamountofMSUssubject tovesting.EachofthefourvestingperiodsrepresentsonetrancheofMSUsandthefairvalueofeachofthesefourtranches wasdeterminedusingtheMonte-Carlosimulationmodel,whichutilizesmultipleinputvariables,includingexpectedstock pricevolatilityandotherassumptions,toestimatetheprobabilityofachievingtheperformanceobjectiveestablishedforthe award.TheweightedaveragegrantdatefairvalueforMSUswas$190.36,$259.75and$192.53in2025,2024and2023, respectively.

ThefollowingtablesummarizesinformationrelatedtoawardedMSUs:

UnvestedatDecember31,2025170.4$200.85 (1) ReflectsadjustmentsforperformanceforthetranchesofMSUsvestingin2025.

ThefairvalueofvestedMSUswas$13.2millionin2025,$14.6millionin2024and$16.1millionin2023.

RestrictedStockUnits(“RSUs”)

RSUsareservice-basedawardsgrantedtoeligibleemployeesandnon-employeedirectorsunderourequityplan. RSUsgrantedtoemployeesgenerallyvestoveraperiodbetweenoneandfouryears.RSUsgrantedtonon-employee directorsgenerallyvestinoneyear.ThevestingofRSUsissubjecttocontinuedservicethroughtheapplicablevestingdate.If thatconditionisnotmet,unvestedRSUsaregenerallyforfeited.TheweightedaveragegrantdatefairvalueforRSUswas $171.82,$210.74and$175.88in2025,2024and2023,respectively.

ThefollowingtablesummarizesinformationrelatedtoawardedRSUs:

ThefairvalueofvestedRSUswas$12.4million,$3.2millionand$2.7millionin2025,2024and2023, respectively.

Cash-BasedAwards

Long-TermIncentiveUnits(“LTIUnits”)

LTIUnitsarecash-basedawardsgrantedtoeligibleemployeesunderourlong-termincentiveunitplan.LTIUnits areservice-basedawardsthatgenerallyvestratablyoverafour-yearperiod.Thesettlementvalueequalsthenumberof vestedLTIUnitsmultipliedbytheaverageofthehighandlowmarketpricesofourcommonstockonthevestingdate. Thecompensationexpenserelatedtotheseawardsisamortizedonastraight-linebasisandthefairvalueisremeasured usingtheestimatedpercentageofunitsexpectedtobeearnedmultipliedbytheaverageofthehighandlowmarket pricesofourcommonstockateachquarter-end.

Wealsograntcash-basedawardsintheformofperformanceandmarket-leveragedLTIUnitstoeligible employees.PerformanceLTIUnitsarepayableincashattheendofathree-yearcliffvestingperiodprovidedthatcertain performanceobjectivesareachievedattheendoftheperformanceperiod.Market-leveragedLTIUnitsarepayablein cashandvestratablyoveraperiodoffouryears.Thenumberofperformanceandmarket-leveragedLTIUnitsearnedat vestingisadjustedupwardordownwardbasedupontheprobabilityofachievingtheperformanceobjectivesestablished fortherespectiveawardandtheactualnumberofunitsissuedcanrangefrom0%to200%ofthedesignatedtarget 78 2025AnnualReport | AveryDennisonCorporation

unitssubjecttovesting.Performanceandmarket-leveragedLTIUnitsareremeasuredusingtheestimatedpercentageof unitsexpectedtobeearnedmultipliedbytheaverageofthehighandlowmarketpricesofourcommonstockateach quarter-endovertheirrespectiveperformanceperiods.ThecompensationexpenserelatedtoperformanceLTIUnitsis amortizedonastraight-linebasisovertheirrespectiveperformanceperiods.Thecompensationexpenserelatedto market-leveragedLTIUnitsisamortizedonagraded-vestingbasisovertheirrespectiveperformanceperiods.

ThecompensationexpenserelatedtoLTIUnitswas$12.9millionin2025,$14.9millionin2024and$16.3million in2023.Thisexpensewasincludedin“Marketing,generalandadministrativeexpense”intheConsolidatedStatements ofIncome.ThetotalrecognizedtaxbenefitrelatedtoLTIUnitswas$3.2millionin2025,$3.6millionin2024and $3.9millionin2023.

NOTE13.COSTREDUCTIONACTIONS

RestructuringCharges

Wehaveplansthatprovideeligibleemployeeswithseverancebenefitsintheeventofaninvoluntarytermination. Wecalculateseveranceusingthebenefitformulasundertheapplicableplans.Werecordrestructuringchargesfrom qualifyingcostreductionactionsforseveranceandotherexitcosts(includingassetimpairmentchargesandleaseand othercontractcancellationcosts)whentheyareprobableandestimable.

2025Actions

During2025,werecorded$48.8millioninrestructuringcharges,netofreversals,relatedtoour2025actions. Thesechargesconsistedofseveranceandrelatedcostsforthereductionofapproximately1,200positions,aswellas assetimpairmentcharges,atnumerouslocationsacrossourcompany,asaresultofactionstakentooptimizeour operationalfootprint.

Inthefourthquarterof2024,werecorded$13.1millioninrestructuringchargesrelatedtoour2025actions. Thesechargesconsistedofseveranceandrelatedcostsforthereductionofapproximately90positions,aswellasasset impairmentcharges,reflectingactionsatnumerouslocationsinourSolutionsGroupreportablesegment.

2023Actions

During2024,werecorded$28.8millioninrestructuringcharges,netofreversals,relatedtotheseactions.These chargesconsistedofseveranceandrelatedcostsforthereductionofapproximately1,280positions,aswellasasset impairmentcharges,atnumerouslocationsacrossourcompany.

During2025,werecorded$1.6millionofreversalsrelatedtoour2023Actionsthatwerecompletedinthefourth quarterof2025.

Accrualsforseveranceandrelatedcostsandleasecancellationcostswereincludedin“Othercurrentliabilities” and“Long-termretirementbenefitsandotherliabilities”intheConsolidatedBalanceSheets.Assetimpairmentcharges werebasedontheestimatedmarketvalueoftheassets,lesssellingcosts,ifapplicable.Restructuringchargeswere includedin“Otherexpense(income),net”intheConsolidatedStatementsofIncome.

During2025,restructuringchargesandpaymentswereasfollows: (Inmillions)

Accrualat December28, 2024 Charges, Netof Reversals Cash Payments Non-cash Impairment Foreign Currency Translation Accrualat December31, 2025 2025Actions

Severanceandrelatedcosts$10.0$45.7$(41.5)$—$.2$14.4 Assetimpairmentcharges—3.1—(3.1)—— Total$10.0$48.8$(41.5)$(3.1)$.2$14.4

During2024,restructuringchargesandpaymentswereasfollows:

(Inmillions)

Accrualat December30, 2023 Charges, Netof Reversals Cash Payments Non-cash Impairment

Foreign Currency Translation Accrualat December28, 2024 2025Actions

Severanceandrelatedcosts$—$10.0$—$—$—$10.0 Assetimpairmentcharges—3.1—(3.1)—— 2023Actions

Severanceandrelatedcosts27.725.4(43.3)—(.6)9.2 Assetimpairmentcharges—3.0—(3.0)—— Leasecancellationcosts—.4(.6)——(.2) Total$27.7$41.9$(43.9)$(6.1)$(.6)$19.0

ThetablebelowshowsthetotalamountofrestructuringchargesincurredbyreportablesegmentandCorporate.

(Inmillions)202520242023

RestructuringchargesbyreportablesegmentandCorporate MaterialsGroup$22.9$5.7$52.4 SolutionsGroup23.435.823.2 Corporate .9.43.8 Total $47.2$41.9$79.4

NOTE14.TAXESBASEDONINCOME

Taxesbasedonincomewereasfollows: (Inmillions)202520242023 Current: U.S.federaltax$45.9$36.0$42.5 Statetaxes11.010.69.0 Foreigntaxes205.3214.9160.8 262.2261.5212.3

Deferred:

U.S.federaltax(17.2)(8.7)(29.0) Statetaxes(1.3)(3.3)(3.5) Foreigntaxes(6.6)(.9)11.9 (25.1)(12.9)(20.6) Provisionforincometaxes$237.1$248.6$191.7

AreconciliationofourprovisionforincometaxestotheamountcomputedbymultiplyingtheU.S.federalstatutory taxratetoincomebeforetaxesfortheyearendedDecember31,2025isprovidedbelow:

Nontaxableornondeductibleitems2.9.3

Provisionforincometaxesandeffectivetaxrate$237.125.6% (1) StatetaxesinCalifornia,Illinois,Pennsylvania,Wisconsin,NewYorkandNewJerseymadeupthemajorityofthetaxeffectinthiscategory. AreconciliationofourprovisionforincometaxestotheamountcomputedbymultiplyingtheU.S.federalstatutory taxratetoincomebeforetaxespreviouslydisclosedfortheyearsendedDecember28,2024andDecember30,2023is providedbelow:

Provisionforincometaxes$248.6$191.7

(1) BothyearsincludedcertainU.S.internationaltaxprovisionsandforeignearningstaxedintheU.S.,netofcredits.

(2) In2024,werecognized$6.2millionfromourcurrentyearglobalintangiblelow-taxedincomeexclusionelection.In2023,werecognized$4.4million fromour2023exclusionelectionand$5.6millionrelatedtotheexclusionelectionmadeonour2022U.S.federaltaxreturn.

IncomebeforetaxesfromourU.S.andforeignoperationswasasfollows:

Incomebeforetaxes$925.1$953.5$694.7

Oureffectivetaxratewas25.6%,26.1%and27.6%forfiscalyears2025,2024and2023,respectively.

Our2025provisionforincometaxesincluded(i)$15.4millionofnettaxchargerelatedtothetaxonglobal intangiblelow-taxedincome(“GILTI”)ofourforeignsubsidiariesandtherecognitionofforeignwithholdingtaxeson currentyearearnings,partiallyoffsetbythebenefitfromforeign-derivedintangibleincome(“FDII”);(ii)$10.6millionof taxbenefitfromthereleaseofvaluationallowanceasaresultofcompletingaforeignrestructuringtransaction;and (iii)nettaxbenefitfromafavorablerulingrelatedtodeductibilityofinterestexpense.

Our2024provisionforincometaxesincluded(i)$15.9millionofnettaxchargerelatedtothetaxonGILTIofour foreignsubsidiariesandtherecognitionofforeignwithholdingtaxesoncurrentyearearnings,partiallyoffsetbythe benefitfromFDII;(ii)$15.9millionoftaxchargefromvaluationallowancesduetotheuncertaintyoftherealizationof certaindeferredtaxassets;and(iii)excesstaxbenefitsassociatedwithstock-basedpayments,andreturn-to-provision benefitsrelatedtoour2023U.S.federaltaxreturn,partiallyoffsetbynettaxchargeprimarilyfromtherecognitionof uncertaintaxpositionsandtaxauditsettlementsincertainforeignjurisdictions.

Our2023provisionforincometaxesincluded(i)$16.4millionofnettaxchargerelatedtothetaxonGILTIofour foreignsubsidiariesandtherecognitionofforeignwithholdingtaxesoncurrentyearearnings,partiallyoffsetbythe benefitfromFDII;(ii)$14.7millionofreturn-to-provisionbenefitprimarilyrelatedtoourGILTIexclusionelectionand benefitsfromadditionalforeigntaxcreditsrecognizedundertemporaryreliefgrantedbytheInternalRevenueService (“IRS”)inJuly2023,relatedtoour2022U.S.federaltaxreturn,(iii)$10.5millionoftaxchargerelatedtonon-deductible expensesresultingfromtheimpactoftheArgentinepesoremeasurementloss;and(iv)$9.5millionofnettaxcharge primarilyfromtherecognitionofuncertaintaxpositionsincertainforeignjurisdictions,partiallyoffsetbydecreasesintax reservesasaresultofclosingtaxyears.

DeferredTaxes

Deferredtaxesreflectthetemporarydifferencesbetweentheamountsatwhichassetsandliabilitiesarerecorded forfinancialreportingpurposesandtheamountsutilizedfortaxpurposes.Theprimarycomponentsofthetemporary differencesthatgaverisetoourdeferredtaxassetsandliabilitieswereasfollows:

(1) Reflectgrossamountsbeforejurisdictionalnettingofdeferredtaxassetsandliabilities.

Weassessavailablepositiveandnegativeevidencetoestimateifsufficientfuturetaxableincomeisexpectedtobe generatedtouseexistingdeferredtaxassets.Onthebasisofourassessment,werecordvaluationallowancesonlywith respecttotheportionofthedeferredtaxassetthatisnotmore-likely-than-nottoberealized.Ourassessmentofthefuture realizabilityofourdeferredtaxassetsreliesheavilyonourforecastedearningsincertainjurisdictionsdeterminedbythe mannerinwhichweoperateourbusinessandtherelevantcarryforwardperiods.Anychangestoouroperationsmay affectourassessmentofdeferredtaxassetsconsideredrealizableifthepositiveevidencenolongeroutweighsthe negativeevidence.

NetoperatinglosscarryforwardsofforeignsubsidiariesatDecember31,2025andDecember28,2024were approximately$495millionand$466million,respectively.Taxcreditcarryforwardsofbothdomesticandforeign subsidiariesatDecember31,2025andDecember28,2024totaledapproximately$24millionand$15million, respectively.Ifunused,foreignnetoperatinglossesandtaxcreditcarryforwardswillexpireasfollows:

(1) Netoperatinglossesarepresentedbeforetaxeffectsandvaluationallowances.

Certainindefinite-livedforeignnetoperatinglossesmayrequiredecadestobefullyutilizedunderourcurrent businessmodel.

AtDecember31,2025,wehadnetoperatinglosscarryforwardsincertainstatesofapproximately$681million beforetaxeffects.Basedonourestimatesoffuturestatetaxableincome,itismore-likely-than-notthatthemajorityof thesecarryforwardswillnotberealizedbeforetheyexpire.Accordingly,avaluationallowancehasbeenrecordedon approximately$660millionofthesecarryforwards.

AsofDecember31,2025,ourprovisionforincometaxesdidnotmateriallybenefitfromapplicabletaxholidaysin foreignjurisdictions.

UnrecognizedTaxBenefits

AsofDecember31,2025,ourunrecognizedtaxbenefitstotaledapproximately$81million,$73millionofwhich, ifrecognized,wouldreduceourannualeffectiveincometaxrate.AsofDecember28,2024,ourunrecognizedtax benefitstotaledapproximately$81million,$74millionofwhich,ifrecognized,wouldreduceourannualeffectiveincome taxrate.

Whereapplicable,weaccruepotentialinterestandpenaltiesrelatedtounrecognizedtaxbenefitsinincometax expense.Theinterestandpenaltieswerecognizedduringfiscalyears2025,2024and2023werenotmaterial, individuallyorinaggregate,totheConsolidatedStatementsofIncome.Wehaveapproximately$18millionand $17millionofaccruedinterestandpenalties,netoftaxbenefit,intheConsolidatedBalanceSheetsatDecember31, 2025andDecember28,2024,respectively.

Areconciliationofthebeginningandendingamountsofunrecognizedtaxbenefitsisprovidedbelow.

(Inmillions)

20252024

Balanceatbeginningofyear$81.1$88.0 Additionsfortaxpositionsofcurrentyear9.411.4 Additions(reductions)fortaxpositionsofprioryears,net(8.2)(7.2) Settlementswithtaxauthorities(.2)(4.6) Expirationsofstatutesoflimitations(4.7)(3.7) Changesduetoforeigncurrencytranslation3.5(2.8) Balanceatendofyear

$80.9$81.1

Theamountofincometaxeswepayissubjecttoongoingauditsbytaxingjurisdictionsaroundtheworld.Our estimateofthepotentialoutcomeofanyuncertaintaxissueissubjecttoourassessmentoftherelevantrisks,facts,and circumstancesexistingatthetime.Webelievewehaveadequatelyprovidedforreasonablyforeseeableoutcomes relatedtothesematters.However,ourfutureresultsmayincludefavorableorunfavorableadjustmentstoourestimated taxliabilitiesintheperiodtheassessmentsaremadeorresolved,whichmayimpactoureffectivetaxrate.Thefinal determinationoftaxauditsandanyrelatedlegalproceedingscouldmateriallydifferfromamountsreflectedinourtax provisionforincometaxesandtherelatedliabilities.Todate,weandourU.S.subsidiarieshavecompletedtheIRS’ ComplianceAssuranceProcessthrough2023.Withlimitedexceptions,wearenolongersubjecttoincometax examinationsbytaxauthoritiesforyearspriorto2010.

CashPaidforIncomeTaxes(NetofRefundsReceived)

Cashpaidforincometaxes,netofrefundsreceived,fortheyearendedDecember31,2025wasasfollows:

Cashpaidforincometaxes(netofrefundsreceived)$265.0

Cashpaidforincometaxes,netofrefundsreceived,fortheyearsendedDecember28,2024andDecember30, 2023was$226.8millionand$234.9million,respectively.

NOTE15.SEGMENTANDDISAGGREGATEDREVENUEINFORMATION

SegmentReporting

Wehavethefollowingreportablesegments:

•MaterialsGroup–manufacturesandsellspressure-sensitivelabelmaterials(includinglabelmaterialswith RFIDinlays),filmsforgraphicandreflectiveproducts,performancetapesandotheradhesiveproductsfor industrial,medicalandotherapplications,aswellasfastenersolutions.

•SolutionsGroup–designs,manufacturesandsellsawidevarietyofbrandingandinformationsolutions, includingbrandandpricetickets,tagsandlabels(includingRFIDinlays),andrelatedservices,suppliesand equipment.

OurPresidentandChiefExecutiveOfficeristhechiefoperatingdecisionmaker(“CODM”)andisresponsibleforthe allocationofresourcesandevaluationofperformanceofourreportablesegments.TheCODM’soversightincludes establishingperformancetargetstoadvanceourlong-termstrategyandincreasestockholdervalue,allocatingcapitalto ourreportablesegmentstoachievethosetargets,developingcompensationprogramstoincentivizesegmentleadersto achievethosetargets,andanalyzingkeyperformancemetricstotrackprogressagainstthosetargets.TheCODMreviews theperformanceofeachsegmentbycomparingeachreportablesegment’scurrentperiodresultswithitsannualoperating plantargets,itsmostrecentquarterlyforecast,andtheprioryeartoassesshowsegmentresultsimpactedourcompany’s overallresults.

DisaggregatedRevenueInformation

Disaggregatedrevenueinformationisshownbelowinthemannerthatbestreflectshowthenature,amount,timing anduncertaintyofourrevenueandcashflowsareaffectedbyeconomicfactors.RevenuefromourMaterialsGroup reportablesegmentisattributedtogeographicareasbasedonthelocationfromwhichproductsareshipped.Revenue fromourSolutionsGroupreportablesegmentisshownbyproductgroup.

(Inmillions)

Netsalestounaffiliatedcustomers(1) MaterialsGroup:

2025(2) 20242023

NorthAmerica$1,943.1$1,879.6$1,846.3 Europe,theMiddleEastandNorthAfrica2,146.42,091.02,007.1 Asia 1,534.31,552.71,483.7 LatinAmerica 469.5489.7474.2

TotalMaterialsGroup6,093.36,013.05,811.3

SolutionsGroup:

Apparelandother1,811.81,876.81,662.9 IdentificationSolutionsandVestcom950.4865.9890.1 TotalSolutionsGroup2,762.22,742.72,553.0

Netsalestounaffiliatedcustomers$8,855.5$8,755.7$8,364.3

(1) Certainprior-yearamountshavebeenreclassifiedtoconformtothecurrent-yearpresentation.

(2) Beginninginthefirstquarterof2025andtobetteralignwithourgrowthstrategy,revenueforcertainradio-frequencyidentificationproductswere reflectedintheMaterialsGroupreportablesegment;inprioryears,theserevenueswerereflectedintheSolutionsGroupreportablesegment.Prioryearamountswerenotmaterial.

RevenuefromourMaterialsGroupreportablesegmentbyproductgroupisshownbelow.

(Inmillions)

Netsalestounaffiliatedcustomers(1)

MaterialsGroup:

202520242023

Labels,graphicsandreflectives$5,332.2$5,266.0$5,076.8 Performancematerials(2) 547.2516.6522.8 Other 213.9230.4211.7

TotalMaterialsGroup$6,093.3$6,013.0$5,811.3

(1) Certainprior-yearamountshavebeenreclassifiedtoconformtothecurrent-yearpresentation.

(2) Performancematerialsincludesindustrialandmedicaltapes,tradeadhesivesandTaylorAdhesives.

Ourtotalcompanyrevenuebygeographicareaisshownbelow.Revenueisattributedtogeographicareasbased onthelocationfromwhichproductsareshipped.

(Inmillions)

Netsalestounaffiliatedcustomers

U.S.

202520242023

$2,751.0$2,613.4$2,578.3 Europe,theMiddleEastandNorthAfrica2,457.12,418.62,306.7 Asia

Netsalestounaffiliatedcustomers$8,855.5$8,755.7$8,364.3

NetsalestounaffiliatedcustomersinAsiaincludedsalesinChina(includingHongKong)of$1.35billionin2025, $1.40billionin2024and$1.30billionin2023.

Nosinglecustomerrepresented10%ormoreofournetsalesinyear-end2025,2024or2023.Ourtenlargest customers,whichincludeapparelretailersandbrandowners,intheaggregaterepresentedapproximately17%ofour netsalesduring2025andapproximately16%ofournetsalesduring2024and2023.

SegmentInformation

OurCODMusessegmentadjustedoperatingincometoevaluatesegmentperformanceandallocateresources. Segmentadjustedoperatingincomeisdefinedasincomebeforetaxesadjustedforotherexpense(income),net;interest expense,othernon-operatingexpense(income),net;andotheritems.Segmentresultsandreconciliationtoincome beforetaxesarepresentedbelow.

(Inmillions)

MaterialsGroup

202520242023

Netsalestounaffiliatedcustomers$6,093.3$6,013.0$5,811.3

Segmentexpense(1) 5,171.15,088.35,022.1

Segmentadjustedoperatingincome$922.2$924.7$789.2

SolutionsGroup

Netsalestounaffiliatedcustomers$2,762.2$2,742.7$2,553.0

Segmentadjustedoperatingincome$286.3$289.3$252.0 (1) Segmentexpenseincludedcostofproductssoldandmarketing,generalandadministrativeexpenseandexcludedotherexpense(income),net,and otheritems.

(Inmillions)

Segmentadjustedoperatingincome

202520242023

MaterialsGroup$922.2$924.7$789.2 SolutionsGroup 286.3289.3252.0 Total 1,208.51,214.01,041.2 Corporateexpense (84.7)(91.9)(77.4)

Otherexpense(income),netandotheritems(77.5)(78.3)(180.9) Interestexpense (135.4)(117.0)(119.0)

Othernon-operatingexpense(income),net14.226.730.8

Incomebeforetaxes$925.1$953.5$694.7

AdditionalSegmentInformation

Additionalfinancialinformationbyreportablesegmentisshownbelow.

Intersegmentsalesarerecordedatornearmarketpricesandareeliminatedindeterminingconsolidatednetsales. Wedonotdisclosetotalassetsbyreportablesegmentsinceweneithergeneratenorreviewthatinformationinternally. Asourreportingstructureisneitherorganizednorreviewedinternallybycountry,resultsbyindividualcountryarenot provided.

(Inmillions)

Intersegmentsales

Capitalexpenditures(1)(2)

Depreciationandamortizationexpense(1)

Depreciationandamortizationexpense$328.2$312.2$298.4

(1) Corporatecapitalexpendituresanddepreciationandamortizationexpenseareallocatedtothereportablesegmentsbasedontheirrespective percentageofconsolidatednetsales.

(2) Capitalexpendituresforproperty,plantandequipmentincludedaccruals.

Entity-wideInformation

Otherexpense(income),net,bytypewereasfollows:

(Inmillions)

Otherexpense(income),net,bytype

Restructuringcharges,netofreversals:

202520242023

Severanceandrelatedcosts,netofreversals$43.2$35.4$70.8

Assetimpairmentandleasecancellationcharges4.06.58.6

Otheritems:

(Gain)lossonventureandotherinvestments,net23.319.21.5

LossesfromArgentinepesoremeasurementandBlueChipSwaptransactions5.616.429.9

Transactionandrelatedcosts5.1.35.3

Outcomesoflegalmattersandsettlements,net(1) 9.2(6.2)64.3 (Gain)lossonsalesofassets(12.9)—.5

Otherexpense(income),net$77.5$71.6$180.9

(1) Amountfor2023includedanadditionalcontingentliabilityof$56.3millionrelatedtotheAdasalitigation.RefertoNote8,“Contingencies”formore information.

Long-livedassets(includingproperty,plantandequipment,net,andoperatingleaseassets)inourU.S.and non-U.S.operationswereasfollows:

Long-livedassetslocatedinChina(includingHongKong)wereapproximately$273millionand$288millionin 2025and2024,respectively.

NOTE16.SUPPLEMENTALFINANCIALINFORMATION

Inventories

Inventoriesatyear-endwereasfollows:

Property,PlantandEquipment,Net

Majorclassesofproperty,plantandequipment,statedatcost,atyear-endwereasfollows:

Property,plantandequipment4,271.93,993.5 Accumulateddepreciation (2,664.2)(2,406.8) Property,plantandequipment,net$1,607.7$1,586.7

Software

Capitalizedsoftwarecostsatyear-endwereasfollows:

Softwareamortizationexpensewas$28.5millionin2025,$25.1millionin2024and$23.4millionin2023.

CloudComputingArrangements

Capitalizedimplementationcostsatyear-endwereasfollows:

Capitalizedimplementationcostamortizationexpensewas$11.7millionin2025,$8.0millionin2024and $4.5millionin2023.

AllowanceforCreditLosses

Giventheshort-termnatureoftradereceivables,ourallowanceforcreditlossesisbasedonthefinancialcondition ofcustomers,theagingofreceivablebalances,ourhistoricalcollectionsexperience,andcurrentandexpectedfuture macroeconomicandmarketconditions.Balancesarewrittenoffintheperiodinwhichtheyaredeterminedtobe uncollectible.

Theactivityrelatedtoourallowanceforcreditlosseswasasfollows:

Theprovisionforcreditlosseswas$4.4millionin2023.

ResearchandDevelopment

Researchanddevelopmentexpense,whichwasincludedin“Marketing,generalandadministrativeexpense”in theConsolidatedStatementsofIncome,wasasfollows:

SupplementalCashFlowInformation

Cashpaidforinterestwasasfollows:

Theaccruedamountofexcisetaxespayableon2025sharerepurchaseswas$4.9millionasofDecember31, 2025.

ForeignCurrencyEffects

Gainsandlossesresultingfromforeigncurrencytransactionsareincludedinincomeintheperiodincurred. Transactionsinforeigncurrencies(includingreceivables,payablesandloansdenominatedincurrenciesotherthanthe functionalcurrency),includinghedgingimpacts,werenotmaterialin2025,2024or2023.

DeferredRevenue

Deferredrevenueprimarilyrelatestoconstrainedvariableconsiderationonsupplyagreementsforsalesof products,aswellaspaymentsreceivedinadvanceofperformanceunderacontract.Deferredrevenueisrecognizedas revenueasorwhenweperformunderacontract.

ThefollowingtableshowstheamountsandbalancesheetlocationsofdeferredrevenueasofDecember31,2025 andDecember28,2024:

(Inmillions)December31,2025December28,2024

Othercurrentliabilities$16.2$15.5

Long-termretirementbenefitsandotherliabilities1.61.2

Totaldeferredrevenue$17.8$16.7

RevenuerecognizedfromamountsincludedindeferredrevenueasofDecember28,2024was$14.9millionin 2025.RevenuerecognizedfromamountsincludedindeferredrevenueasofDecember30,2023was$17.5millionin 2024.RevenuerecognizedfromamountsincludedindeferredrevenueasofDecember31,2022was$21.0millionin 2023.Thisrevenuewasincludedin“Netsales”intheConsolidatedStatementsofIncome.

SupplierFinancePrograms

Wehaveagreementswiththird-partyfinancialinstitutionstofacilitatepaymentstosuppliers.Thesethird-party financialinstitutionsoffervoluntarysupplychainfinanceprogramsthatenablecertainofoursuppliers,atthesupplier’s solediscretion,tosellourpaymentobligationstoafinancialinstitutionontermsdirectlynegotiatedwiththefinancial institution.Participatingsuppliersdecidewhichpaymentobligationsaresoldtothefinancialinstitutionandwehaveno economicinterestinasupplier’sdecisiontosellthesepaymentobligations.Wemakepaymentstothefinancialinstitution ontheinvoiceduedate,regardlessofwhetheranindividualinvoiceissoldbythesuppliertothefinancialinstitution.Our obligationstooursuppliers,includingamountsdueandscheduledpaymentdates,arenotimpactedbysuppliers’ decisionstosellamountsunderthesearrangements.Amountsdueunderoursupplychainfinanceprogramsareincluded inaccountspayableinourConsolidatedBalanceSheetsandactivitiesrelatedtotheseprogramsarepresentedas operatingactivitiesinourConsolidatedStatementsofCashFlows.AsofDecember31,2025andDecember28,2024, theamountsduetofinancialinstitutionsforsuppliersthatparticipateintheseprogramswere$383.8millionand $384.6million,respectively.

Theactivityrelatedtooursupplierfinanceprogramswasasfollows: (Inmillions)

20252024 Balanceatbeginningofyear$384.6$397.4 Invoicesconfirmedduringtheyear1,291.31,339.3 Invoicespaidduringtheyear(1,316.6)(1,328.9) Other,includingforeigncurrencytranslation24.5(23.2) Balanceatendofyear $383.8$384.6

ArgentineBlueChipSwapTransactions

In2019,theArgentinegovernmentinstitutedexchangecontrolsrestrictingtheabilityofentitiesandindividualsto exchangeArgentinepesosforforeigncurrenciesorremitforeigncurrencyoutofArgentina.Duetotheserestrictions, marketsinArgentinausealegaltradingmechanismknownastheBlueChipSwapthatallowsentitiestotransferU.S. dollarsinandoutofArgentina.During2024,weenteredintoBlueChipSwaptransactionsthatresultedinlossesof approximately$10millionthatwerecordedin“Otherexpense(income),net”inourConsolidatedStatementsofIncome. PurchasesandtheproceedsfromsalesofArgentineBlueChipSwapsecuritieswereincludedininvestingactivitiesinour ConsolidatedStatementsofCashFlows.

Item9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIAL DISCLOSURE

None.

Item9A.CONTROLSANDPROCEDURES

DisclosureControlsandProcedures.Asoftheendoftheperiodcoveredbythisreport,wecarriedoutan evaluation,underthesupervisionandwiththeparticipationofourmanagement,includingourChiefExecutiveOfficerand ourChiefFinancialOfficer,oftheeffectivenessofthedesignandoperationofourdisclosurecontrolsandprocedures(as definedinRule13a-15(e)and15d-15(e)oftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”)). Baseduponthatevaluation,ourChiefExecutiveOfficerandChiefFinancialOfficerconcludedthatourdisclosurecontrols andprocedureswereeffectiveinprovidingreasonableassurancethatinformationisrecorded,processed,summarized andreportedwithinthetimeperiodsspecifiedintheSEC’srulesandforms,andthatsuchinformationisaccumulatedand communicatedtoourmanagement,includingourChiefExecutiveOfficerandourChiefFinancialOfficerasappropriate,to allowfortimelydecisionsregardingrequireddisclosure.

Management’sReportonInternalControlOverFinancialReporting. Weareresponsibleforestablishingand maintainingadequateinternalcontroloverfinancialreporting(asdefinedinRule13a-15(f)and15d-15(f)ofthe ExchangeAct).Underthesupervisionandwiththeparticipationofourmanagement,includingourChiefExecutive OfficerandourChiefFinancialOfficer,weconductedanevaluationoftheeffectivenessofourinternalcontrolover financialreportingbasedupontheframeworkin InternalControl–IntegratedFramework(2013) issuedbythe CommitteeofSponsoringOrganizationsoftheTreadwayCommission.Basedonthatevaluation,ourmanagement concludedthatourinternalcontroloverfinancialreportingwaseffectiveasofDecember31,2025.

TheeffectivenessofourinternalcontroloverfinancialreportingasofDecember31,2025hasbeenauditedby PricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,asstatedintheReportofIndependent RegisteredPublicAccountingFirmcontainedinItem8ofthisreport.

ChangesinInternalControloverFinancialReporting. Therehavebeennochangesinourinternalcontrolover financialreportingduringthemostrecentfiscalquarterthathavemateriallyaffected,orarereasonablylikelytomaterially affect,ourinternalcontroloverfinancialreporting.

Item9B.OTHERINFORMATION

OnNovember24,2025,MitchellR.Butier,ourChairman,adoptedaRule10b5-1tradingplanprovidingforthe potentialsaleofupto113,000sharesofourcommonstockbeginningonMarch5,2026andendingonMarch31,2026, unlessterminatedsoonerinaccordancewiththetermsoftheplanandourinsidertradingpolicy.AsofFebruary25, 2026,Mr.Butierdirectlyheld303,331sharesofourcommonstock,excludingsharesheldintheAveryDennison CorporationEmployeeSavingsPlan.Mr.Butier’stradingplanisintendedtosatisfytheaffirmativedefenseof Rule10b5-1(c)undertheExchangeActandourinsidertradingpolicy.

TherewerenootherRule10b5-1tradingarrangementsornon-Rule10b5-1tradingarrangements(asdefinedin Item408(c)ofRegulationS-K)adoptedorterminatedbyanyofourdirectorsorexecutiveofficersduringthefourth quarterof2025.

Item9C.DISCLOSUREREGARDINGFOREIGNJURISDICTIONSTHATPREVENTINSPECTIONS

Notapplicable.

Item10.DIRECTORS,EXECUTIVEOFFICERSANDCORPORATEGOVERNANCE

TheinformationconcerningdirectorsandcorporategovernancerequiredbythisItemisincorporatedhereinby referencefromthedefinitiveproxystatementforourAnnualMeetingofStockholderstobeheldonApril30,2026(our “2026ProxyStatement”),whichwillbefiledwiththeSECpursuanttoRegulation14Awithin120daysoftheendofthe fiscalyearcoveredbythisreport.TheinformationconcerningexecutiveofficersrequiredbythisItemappears,inpart,as referencedbelow.Ifapplicable,informationconcerninganylatefilingsunderSection16(a)oftheExchangeActis incorporatedbyreferencefromour2026ProxyStatement.

TheinformationrequiredbythisItemconcerningourAuditCommitteeisincorporatedbyreferencefromour2026 ProxyStatement.

INFORMATIONABOUTOUREXECUTIVEOFFICERS(1)

NameandPositionAgeExecutiveOfficerSince

DeonM.Stander Presidentand ChiefExecutiveOfficer

GregoryS.Lovins SeniorVicePresidentand ChiefFinancialOfficer

DannyG.Allouche SeniorVicePresidentand ChiefStrategyandCorporate DevelopmentOfficer

DeenaBaker-Nel SeniorVicePresidentand ChiefHumanResourcesOfficer

NicholasR.Colisto SeniorVicePresidentand ChiefInformationOfficer

DivinaF.Santiago VicePresident,Controller

FormerPositionswithinPastFiveYears/ OfficerPositionswithAveryDennison

57August20162022-2023PresidentandChiefOperatingOfficer

2015-2022VicePresidentandGeneralManager, RBIS

2013-2015VicePresidentandGeneralManager, GlobalCommercialandInnovation,RBIS 2010-2012VicePresidentandGeneralManager, GlobalCommercial,RBIS

53March20172017VicePresidentandInterimChiefFinancial Officer

2016-2017VicePresidentandTreasurer 2011-2016VicePresident,GlobalFinance,Materials Group

51November20242024-2025SeniorVicePresident,ChiefStrategyand CorporateDevelopmentOfficer,and InterimChiefFinancialOfficer 2022-2024SeniorVicePresidentandChiefStrategy andCorporateDevelopmentOfficer 2021-2022VicePresident,ChiefStrategyand CorporateDevelopmentOfficer 2016-2021VicePresident,CorporateDevelopment 2015-2016VicePresident,TreasuryandCorporate Development

55September20202020-2022VicePresidentandChiefHuman ResourcesOfficer

2018-2020VicePresident,HumanResources,LGM 2015-2018VicePresident,HumanResources,RBIS

59September20202018-2022VicePresidentandChiefInformation Officer

2012-2018SeniorVicePresidentandChief InformationOfficer,XylemInc.

56September20232022-2023VicePresident,Finance 2008-2022SeniorDirector,Finance

NameandPositionAgeExecutiveOfficerSince

IgnacioJ.Walker SeniorVicePresidentand ChiefLegalOfficer

RyanD.Yost

President,MaterialsGroup

FormerPositionswithinPastFiveYears/ OfficerPositionswithAveryDennison

49September20202020-2022VicePresidentandChiefLegalOfficer

2020VicePresidentandAssistantGeneral Counsel,Americas 2018-2019VicePresidentandAssistantGeneral Counsel 2013-2017VicePresidentandAssistantGeneral Counsel,RBIS

50March20242023-2024VicePresidentandGeneralManager, IdentificationSolutionsandVestcom 2021-2023VicePresidentandGeneralManager, IdentificationSolutions 2019-2021VicePresidentandGeneralManager, PrinterSolutions

(1) Executiveofficersaregenerallyelectedonthedateofourannualstockholdermeetingtoserveaone-yeartermoruntiltheirsuccessorsareduly electedandqualified.

InsiderTradingPolicy

Wehaveadoptedaninsidertradingpolicygoverningthepurchase,sale,and/orotherdispositionsofoursecurities byourdirectors,officersandemployeesthatwebelieveisreasonablydesignedtopromotecompliancewithinsider tradinglaws,rulesandregulations,andapplicableexchangelistingstandards.Ourcurrentinsidertradingpolicyisfiledas Exhibit19tothisAnnualReportonForm10-K.

Item11.EXECUTIVECOMPENSATION

TheinformationrequiredbythisItemisincorporatedbyreferencefromour2026ProxyStatement.

Item12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATED STOCKHOLDERMATTERS

TheinformationrequiredbythisItemisincorporatedbyreferencefromour2026ProxyStatement.

Item13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS,ANDDIRECTORINDEPENDENCE

TheinformationrequiredbythisItemisincorporatedbyreferencefromour2026ProxyStatement.

Item14.PRINCIPALACCOUNTANTFEESANDSERVICES

TheinformationrequiredbythisItemisincorporatedbyreferencefromour2026ProxyStatement.

Item15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES

(a)FinancialStatements,FinancialStatementScheduleandExhibits

(1)FinancialstatementsfiledaspartofthisreportarelistedontheaccompanyingIndextoFinancial Statements.

(2)Allfinancialstatementschedulesareomittedsincetherequiredinformationisnotpresentorisnot presentinamountssufficienttorequiresubmissionoftheschedule,orbecausetheinformation requiredisincludedintheconsolidatedfinancialstatementsandnotesthereto.

(3)ExhibitsfiledasapartofthisreportarelistedontheaccompanyingExhibitIndex.Eachmanagement contractorcompensatoryplanorarrangementrequiredtobefiledasanexhibittothisForm10-Kis identifiedassuchontheExhibitIndex.

(b)TheexhibitsrequiredtobefiledbyItem601ofRegulationS-KaresetforthontheaccompanyingExhibit Index.

FortheYearEndedDecember31,2025

ExhibitNo.ExhibitName

3.1(i)AmendedandRestatedCertificateof Incorporation,asfiledonApril28,2011 withtheOfficeofDelawareSecretaryof State

3.1(ii)CertificateofAmendmenttoAmendedand RestatedCertificateofIncorporation, effectiveasofApril25,2024.

3.1(iii)AmendedandRestatedBylaws,effective asofApril25,2024

4.1Indenture,datedasofMarch15,1991, betweenRegistrantandSecurityPacific NationalBank,asTrustee(the“1991 Indenture”)

4.2FirstSupplementalIndenture,datedasof March16,1993,betweenRegistrantand BankAmericaNationalTrustCompany,as successorTrustee(the“Supplemental Indenture”)

4.3Officers’Certificateestablishingaseriesof Securitiesentitled“Medium-TermNotes, SeriesC”underthe1991Indenture,as amendedbytheSupplementalIndenture

4.4Indenture,datedasofJuly3,2001, betweenRegistrantandChaseManhattan BankandTrustCompany,National Association,astrustee(the“2001 Indenture”)

4.5Officers’CertificateestablishingSecurities entitled“6.000%Notesdue2033”under the2001Indenture

Originally Filedas ExhibitNo.Filing(1)

3.1CurrentReportonForm8-K,filedApril29, 2011

3.1CurrentReportonForm8-K,filedApril26, 2024

3.2CurrentReportonForm8-K,filedApril26, 2024

4.1RegistrationStatementonFormS-3(File No.33-39491),filedMarch19,1991

4.4RegistrationStatementonFormS-3(File No.33-59642),filedMarch17,1993

4.1CurrentReportonForm8-K,filedMay12, 1995

4.1RegistrationStatementonFormS-3(File No.333-64558),filedJuly3,2001

4.2CurrentReportonForm8-K,filed January16,2003

4.66.000%NotesDue20334.4CurrentReportonForm8-K,filed January16,2003

4.7Indenture,datedasofNovember20,2007, betweenRegistrantandBankofNewYork TrustCompany,N.A.

4.8ThirdSupplementalIndenture,datedasof April8,2013,betweenRegistrantandThe BankofNewYorkMellonTrustCompany, N.A.(“BNYMellon”)asTrustee

4.2CurrentReportonForm8-K,filed November20,2007

4.2CurrentReportonForm8-K,filedApril8, 2013

4.9FourthSupplementalIndenture,datedasof March3,2017,betweenRegistrantand BNYMellonasTrustee

4.10FifthSupplementalIndenture,datedasof December6,2018,betweenRegistrantand BNYMellon,asTrustee(includingFormof 4.875%SeniorNotesdue2028onExhibit Athereto)

4.11SixthSupplementalIndenture,datedasof March11,2020,betweenRegistrantand BNYMellon,asTrustee(includingFormof 2.650%SeniorNotesdue2030onExhibit Athereto)

4.12SeventhSupplementalIndenture,datedas ofAugust18,2021,betweenRegistrant andBNYMellon,asTrustee

4.13EighthSupplementalIndenture,datedasof August18,2021,betweenRegistrantand BNYMellon,asTrustee(includingFormof 2.250%SeniorNotesdue2032onExhibit Athereto)

4.14NinthSupplementalIndenture,datedasof March15,2023,betweenRegistrantand TheBankofNewYorkMellonTrust Company,N.A.,asTrustee(includingForm of5.750%SeniorNotesdue2033on ExhibitAthereto)

4.15TenthSupplementalIndenturebetween RegistrantandTheBankofNewYork MellonTrustCompany,N.A.,asTrustee, datedasofNovember4,2024(including Formof3.750%SeniorNotesdue2034on ExhibitAthereto)

4.16EleventhSupplementalIndenturebetween AveryDennisonCorporationandTheBank ofNewYorkMellonTrustCompany,N.A., asTrustee,datedasofSeptember11,2025 (includingFormof4.000%SeniorNotes due2035onExhibitAthereto)

4.2CurrentReportonForm8-K,filedMarch3, 2017

4.2CurrentReportonForm8-K,filed December6,2018

4.2CurrentReportonForm8-K,filed March11,2020

4.2CurrentReportonForm8-Kfiledon August18,2021

4.3CurrentReportonForm8-Kfiledon August18,2021

4.2CurrentReportonForm8-Kfiledon March15,2023

4.2CurrentReportonForm8-K,filedon November4,2024

4.2CurrentReportonForm8-K,filedon September11,2025

4.17†DescriptionofSecuritiesN/AN/A

10.1CreditAgreement,datedasofJune26, 2024,amongRegistrant,asborrower;a syndicateoflenderspartythereto;Mizuho Bank,Ltd.,asadministrativeagent;Mizuho Bank,Ltd.andBankofAmerica,N.A.,as syndicationagents;andCitibank,N.A.,as documentationagent

10.1CurrentReportonForm8-K,filedJune27, 2024

10.2*AmendedandRestatedSupplemental ExecutiveRetirementPlan(“SERP”)

10.3*CompleteRestatementandAmendmentof ExecutiveVariableDeferredCompensation Plan(“EVDCP”)

Originally Filedas ExhibitNo.Filing(1)

10.11.1QuarterlyReportonForm10-Q,filed August12,2009

10.161994AnnualReportonForm10-K,filed March30,1995

10.4*AmendmentNo.1toEVDCP10.16.11999AnnualReportonForm10-K,filed March30,2000

10.5*AmendedandRestated2005Directors VariableDeferredCompensationPlan

10.18.2QuarterlyReportonForm10-Q,filed May10,2011

10.6*2017IncentiveAwardPlan(“EquityPlan”)B2017ProxyStatementonSchedule14A, filedMarch10,2017

10.7*†AmendmentNo.1toEquityPlanN/AN/A

10.8*AmendedandRestatedAnnualIncentive Plan

10.9*CompleteRestatementandAmendmentof ExecutiveDeferredRetirementPlan (“EDRP”)

10.1QuarterlyReportonForm10-Q,filed May1,2020

10.281994AnnualReportonForm10-K,filed March30,1995

10.10*AmendmentNo.1toEDRP10.28.11999AnnualReportonForm10-K,filed March30,2000

10.11*AmendmentNo.2toEDRP10.28.22001AnnualReportonForm10-K,filed March4,2002

10.12*2005ExecutiveVariableDeferred RetirementPlan,amendedandrestated January1,2019

10.13*AmendedandRestatedKeyExecutive ChangeofControlSeverancePlan

10.14*AmendedandRestatedExecutive SeverancePlan

4.4RegistrationStatementonFormS-8,filed July30,2024

10.142024AnnualReportonForm10-K,filed February26,2025

10.152024AnnualReportonForm10-K,filed February26,2025

10.15*FormofExecutiveSeveranceAgreement10.162024AnnualReportonForm10-K,filed February26,2025

10.16*AmendedandRestatedLong-Term IncentiveUnitPlan(“LTIUnitPlan”)

10.17*FormofLong-TermIncentiveUnit AgreementunderLTIUnitPlan

10.18*FormofDirectorRestrictedStockUnit AgreementunderEquityPlan

10.19*FormofEmployeeMarket-LeveragedStock UnitAgreementunderEquityPlan

10.2QuarterlyReportonForm10-Q,filed May1,2020

10.412013AnnualReportonForm10-K,filed February26,2014

10.2QuarterlyReportonForm10-Q,filed August1,2017

10.3QuarterlyReportonForm10-Q,filed August1,2017

2025AnnualReport

10.20*FormofEmployeePerformanceUnit AgreementunderEquityPlan

10.21*FormofEmployeeRestrictedStockUnit AgreementunderEquityPlan

10.22*FormofEmployeeNon-QualifiedStock OptionAgreementunderEquityPlan

10.23*OfferLettertoGregoryLovins,dated July10,2017

10.24*OfferLettertoIgnacioWalker,dated August25,2020

10.25*OfferLettertoFranciscoMelo,dated February27,2023

10.26*OfferLettertoMitchellButier,dated May25,2023

10.27*OfferLettertoDeonStander,dated May25,2023

10.28*OfferLettertoRyanYost,dated February12,2024

10.29*PromotionLettertoDannyAllouche,dated November14,2024

10.30*PromotionLettertoDeenaBaker-Nel, datedFebruary27,2025

IndependentRegisteredPublicAccounting Firm

ofAttorney)

pursuanttoSection302oftheSarbanesOxleyActof2002

pursuanttoSection302oftheSarbanesOxleyActof2002

pursuanttoSection906oftheSarbanesOxleyActof2002

2025AnnualReport | AveryDennisonCorporation

10.4QuarterlyReportonForm10-Q,filed August1,2017

10.5QuarterlyReportonForm10-Q,filed August1,2017

10.6QuarterlyReportonForm10-Q,filed August1,2017

10.1QuarterlyReportonForm10-Q,filed August1,2017

10.2QuarterlyReportonForm10-Q,filed May3,2022

10.2QuarterlyReportonForm10-Q,filed May2,2023

10.1QuarterlyReportonForm10-Q,filed August1,2023

10.2QuarterlyReportonForm10-Q,filed August1,2023

10.1QuarterlyReportonForm10-Q,filed April30,2024

10.1QuarterlyReportonForm10-Q,filed April29,2025

10.2QuarterlyReportonForm10-Q,filed April29,2025

ExhibitNo.ExhibitName

Originally Filedas ExhibitNo.Filing(1)

32.2††CertificationofChiefFinancialOfficer pursuanttoSection906oftheSarbanesOxleyActof2002 N/AN/A

97PolicyforRecoveryofErroneously AwardedCompensation

101.INS†††InlineXBRLInstanceFiling–theinstance documentdoesnotappearinthe InteractiveDataFilebecauseitsXBRLtags areembeddedwithintheInlineXBRL document

972023AnnualReportonForm10-K,filed February21,2024

101.SCH†††InlineXBRLExtensionSchemaFilingN/AN/A

101.CAL†††InlineXBRLExtensionCalculationLinkbase Filing N/AN/A

101.DEF†††InlineXBRLExtensionDefinitionLinkbase Filing N/AN/A

101.LAB†††InlineXBRLExtensionLabelLinkbaseFilingN/AN/A

101.PRE†††InlineXBRLExtensionPresentation LinkbaseFiling N/AN/A

104†††InlineXBRLforthecoverpageofthis AnnualReportonForm10-K,includedas partoftheExhibit101inlineXBRL documentset

(1) Unlessotherwisenoted,theFileNumberforallfilingsisFileNo.1-7685.

*ManagementcontractorcompensatoryplanorarrangementrequiredtobefiledasanexhibittothisForm10-K pursuanttoItem15(b)ofForm10-K.

†Filedherewith.

††Thiscertificationisbeingfurnishedsolelytoaccompanythisreportpursuantto18U.S.C.1350,andisnotbeing filedforpurposesofSection18oftheSecuritiesExchangeActof1934,asamended,andisnottobeincorporated byreferenceintoanyfilingoftheregistrant,whethermadebeforeorafterthedatehereof,regardlessofany generalincorporationlanguageinsuchfiling.

†††Furnishedherewith.PursuanttoRule406TofRegulationS-T,theInteractiveDataFilesonExhibit101heretoare deemednotfiledorpartofaregistrationstatementorprospectusforpurposesofSections11or12ofthe SecuritiesAct,aredeemednotfiledforpurposesofSection18oftheSecuritiesExchangeActof1934,as amended,andotherwisearenotsubjecttoliabilityunderthosesections.

Item16.FORM10-KSUMMARY

Notapplicable.

SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthas dulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

AVERYDENNISONCORPORATION

By:/s/GregoryS.Lovins

GregoryS.Lovins SeniorVicePresidentandChiefFinancialOfficer

Dated:February25,2026

POWEROFATTORNEY

EachpersonwhosesignatureappearsbelowdoesherebyconstituteandappointGregoryS.LovinsandIgnacioJ. Walker,andeachofthem,withfullpowerofsubstitution,hisorhertrueandlawfulattorney-in-facttoactforhimorher inanyandallcapacities,tosignthisAnnualReportonForm10-Kandanyorallamendmentsorsupplementsthereto, andtofileeachofthesame,withallexhibitsthereto,andotherdocumentsinconnectiontherewith,withtheSecurities andExchangeCommission,grantinguntosaidattorneys-in-fact,andeachofthem,fullpowerandauthoritytodoand performeachandeveryactandthingrequisiteandnecessarytobedoneinordertoeffectuatethesameasfully,toall intentsandpurposes,asheorshecoulddoinperson,herebyratifyingandconfirmingallthatsaidattorneys-in-factor substitutes,oranyofthem,maylawfullydoorcausetobedonebyvirtuehereof.

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythe followingpersonsonbehalfoftheRegistrantandinthecapacitiesandasofthedatesindicated.

Signature Title

/s/DeonM.Stander

DeonM.Stander

/s/GregoryS.Lovins GregoryS.Lovins

/s/DivinaF.Santiago DivinaF.Santiago

President,ChiefExecutiveOfficer andDirector (PrincipalExecutiveOfficer) February25,2026

SeniorVicePresident andChiefFinancialOfficer (PrincipalFinancialOfficer)

VicePresident,Controller (PrincipalAccountingOfficer)

February25,2026

February25,2026

/s/MitchellR.Butier MitchellR.Butier ChairmanFebruary25,2026

/s/BradleyA.Alford

BradleyA.Alford DirectorFebruary25,2026

/s/WardH.Dickson

WardH.Dickson DirectorFebruary25,2026

/s/DavidE.Flitman

DavidE.Flitman DirectorFebruary25,2026

/s/AndresA.Lopez AndresA.Lopez DirectorFebruary25,2026

/s/MariaFernandaMejia MariaFernandaMejia DirectorFebruary25,2026

/s/FrancescaReverberi FrancescaReverberi DirectorFebruary25,2026

/s/PatrickT.Siewert

PatrickT.Siewert DirectorFebruary25,2026

/s/WilliamR.Wagner WilliamR.Wagner DirectorFebruary25,2026

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NOTICEOFANNUAL MEETINGOFSTOCKHOLDERS

RECORDDATE March2,2026

MEETINGDATE April30,2026

MEETINGTIME 12:00p.m.EasternTime

MEETINGFORMAT Virtualatwww.virtualshareholdermeeting.com/AVY2026

MEETINGPROPOSALS

1 ElectionofthetendirectorsnominatedbyourBoardtoserveforaone-yearterm

2 Approval,onanadvisorybasis,ofourexecutivecompensation

3 RatificationoftheappointmentofPwCasourindependentregisteredpublicaccountingfirmforfiscalyear2026

4 VoteonastockholderproposalforanindependentBoardChairman,ifproperlypresentedduringthemeeting

OurBoardrecommendsthatyouvoteFOReachofourtendirectornomineesinProposal1,FORProposals2and3, andAGAINSTProposal4.

StockholdersofrecordasofMarch2,2026areentitledtonoticeof,andtovoteinconnectionwith,themeetingandany adjournmentorpostponementthereof.Thisnoticeandourproxystatementwillbemailedormadeavailableto stockholdersonoraboutMarch12,2026.

Wewantyoursharestoberepresentedandvoted. Weencourageyoutovotepromptlyasthiswillsaveusthetime andexpenseofadditionalproxysolicitation.Asshownbelow,youcanvoteonline,bytelephone,bymailor,incertain circumstances,duringthemeeting.

OnbehalfofourBoardofDirectors,managementandteammembersworldwide,thankyouforinvestinginusandour company.WelookforwardtoengagingwithyouduringtheAnnualMeeting.

VikasArora VicePresident,AssociateGeneralCounseland CorporateSecretary

March12,2026

Youcanvoteonlineusingthe 16-digitcontrolnumbershown onyourNoticeofInternet Availability,proxycardor votinginstructionform.

IntheU.S.andCanada,you canvotebytelephoneusing the16-digitcontrolnumber shownonyourNoticeof InternetAvailability,proxy cardorvotinginstruction form.

Youcanvotebymailby completing,datingandsigning yourproxycardorvoting instructionformandreturningit intheaccompanyingpostagepaidenvelope.

Registeredholderscanvote duringthemeeting.Beneficial holdersmustcontacttheirbroker orothernomineetobeableto voteduringthemeeting.Shares heldthroughourEmployee SavingsPlanmaynotbevoted duringthemeeting.

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TABLEOFCONTENTS

2025PensionBenefits78 2025NonqualifiedDeferredCompensation79 PaymentsUponTerminationasofDecember31,202580 EquityCompensationPlanInformationasofDecember31,202583 PAYVS.PERFORMANCEDISCLOSURE84

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PROXYSUMMARY

Thisproxysummaryincludeskeyinformationrelatedtothisproxystatementbutdoesnotcontainalltheinformation youshouldconsiderbeforevoting. Westronglyencourageyoutoreadtheentireproxystatementbeforevoting.

INFORMATIONREGARDINGANNUALMEETING

DistributionofProxyMaterials

WewillbeginmailingourNoticeofInternetAvailabilityofProxyMaterials,whichincludesinstructionsonhowto accessthesematerialsandvoteyoursharesonline,onoraboutMarch12,2026.Ifyoupreviouslyelectedtoreceivea papercopyofourproxymaterials,onoraboutthesamedate,wewillmailyouour2025integratedfinancialand sustainabilityreport(our“2025IntegratedReport”),whichincludesalettertostockholdersfromourPresident&Chief ExecutiveOfficer(CEO),descriptionsofourcompany,stakeholders,values,businessstrategies,andfinancialand sustainabilityhighlights;ourAnnualReportonForm10-KforthefiscalyearendedDecember31,2025(our“2025 AnnualReport”);thenoticeandproxystatementforour2026AnnualMeetingofStockholders(the“AnnualMeeting”); andaproxycard.

Time,DateandFormatofAnnualMeeting

TheAnnualMeetingwilltakeplaceat12:00p.m.EasternTimeonApril30,2026.Toallowstockholderstoattend withoutthetimeandexpenseofdoingsoinperson,themeetingwillbeheldvirtually,withattendanceviathe internet. ToattendthevirtualAnnualMeeting,youwillneedtologinatwww.virtualshareholdermeeting.com/AVY2026 usingthe16-digitcontrolnumberonyourNoticeofInternetAvailabilityofProxyMaterials,proxycardorvoting instructionform.

OnlineaccesstotheliveaudiowebcastoftheAnnualMeetingwillopenat11:45a.m.EasternTimetoallowtimefor youtologinandtestyourdevice’saudiosystem.Weencourageyoutoaccessthemeetinginadvanceofitsstarttimeas wewillbeginpromptly.ForadditionalinformationonthevirtualAnnualMeeting,pleaserefertotheVotingandMeeting Q&Asectionofthisproxystatement.

ProposalsforAnnualMeeting

Youarebeingaskedtovoteontheproposalsshownbelow. OurBoardofDirectors(our“Board”)recommendsthat youvoteFOReachofourtendirectornomineesinProposal1,FORProposals2and3,andAGAINSTProposal4.

YoumayvoteyoursharesbysubmittingaproxyinadvanceoftheAnnualMeetingonline,bytelephoneorbymail; onlyincertaincircumstancesmayyouvoteduringthemeeting.Ifyouarearegisteredstockholderwhohasnotpreviously votedorwantstochangeyourpreviouslysubmittedvote,youmayvoteduringtheAnnualMeeting.Beneficialholders mayonlyvoteduringthemeetingiftheyproperlyrequestandreceivealegalproxyintheirnamefromthebroker,bankor othernomineethatholdstheirshares.SharesheldthroughourEmployeeSavingsPlanmaynotbevotedduringthe meeting.WhetherornotyouplantoattendthevirtualAnnualMeeting, weurgeyoutovoteandsubmityourproxy promptlybyfollowingtheinstructionsonyourNoticeofInternetAvailabilityofProxyMaterials,proxycardorvoting instructionform.

AskingQuestionsDuringAnnualMeeting

WehavedesignedthevirtualAnnualMeetingtoensurethatyouhavethesamerightsandopportunitiesto participateasyouwouldatanin-personmeeting,usinganonlineplatformthatallowsyoutoattend,voteandask questions.Afterwehavefinishedvotingupontheproposalsandthemeetingisadjourned,ourChairmanwillleadaQ&A sessionduringwhichweintendtoanswerallquestionssubmittedtimelythatarepertinenttoourcompanyorthe proposalsbroughtbeforestockholdervote.Answerstoquestionsnotaddressedduringthemeeting,ifany,willbe postedpromptlyafterthemeetingontheinvestorssectionofourwebsite.Forinformationonhowtosubmitquestions duringtheAnnualMeeting,pleaserefertotheVotingandMeetingQ&Asectionofthisproxystatement.

OURCOMPANY

Weareagloballeaderinmaterialsscienceanddigitalidentificationsolutions.WeareMakingPossibleTM productsandsolutionsthathelpadvancetheindustriesweserve,providingbrandingandinformationsolutionsthat optimizelaborandsupplychainefficiency;reducewasteandmitigateloss;advancesustainability,circularityand transparency;andbetterconnectbrandsandconsumers. Wedesignanddeveloplabelingandfunctionalmaterials, radio-frequencyidentification(RFID)inlaysandtags,softwareapplicationsthatconnectthephysicalanddigital,and offeringsthatenhancebrandedpackagingandcarryordisplayinformationthatimprovesthecustomerexperience.We serveanarrayofindustriesworldwide,includinghomeandpersonalcare,apparel,generalretail,e-commerce,logistics, foodandgrocery,pharmaceuticalsandautomotive.

Ourcompanyiscomposedoftworeportablesegments,MaterialsGroupandSolutionsGroup. MaterialsGroupisa leadingglobalprovidertothepressure-sensitivelabelandgraphicsindustries.Ourinnovativeproductsincludelabel materials,graphicsandreflectivematerials,andfunctionalbondingmaterials,liketapes. Ourlabelmaterialsenhance brands’shelfappeal,informshoppers,advancecircularity,increasetransparency,andimproveoperationalsupplychain efficiency.Ourgraphicsportfoliooffershighlyengineeredproductsrangingfromvehiclewrapstoarchitecturalfilms.Our tapesportfolioincludesbondingandfunctionalmaterialsforapplicationsinvariousindustrysectorssuchasautomotive, buildingandconstruction,andelectronics.Weleveragethegroup’smaterialssciencecapabilitiesandprocess engineeringexpertisetodrivefurtherintelligentlabeladoptionthroughourconverterchannelaccess.

SolutionsGroupisaleadingproviderofinformationandbrandingsolutionsthatcoverworldwidemarketplace needsrangingfromdigitalidentificationanddatamanagementtobrandingandembellishment,productivity,pricing andretailmedia. Ourultra-high-frequencyRFIDsolutionsempowercustomersacrossmultipleretailandindustry segments,includingapparel,logistics,foodandgrocery,andgeneralretail,toconnectthephysicalanddigitalworldsby enablingadigitalidentityandlifeforphysicalitems.Ourinnovationanddatamanagementcapabilities,globalfootprint andmarketaccessexpandoursolutionsplatform.

OURSTRATEGIES

Wearecommittedtothesuccessofallourstakeholders–ourcustomers,investors,employeesandcommunities–for whomthefundamentalsofourbusiness,competitiveadvantages,financialperformanceandsustainabilityprogresshave deliveredlong-termvalue. OurvisionistoleveragethestrengthsofourMaterialsandSolutionsbusinessestoconnect thephysicalanddigitaltosolvesomeoftheworld’smostcomplexchallenges.

Wehavedemonstratedovertimeandcyclesthatwecandeliverstrongperformance,reflectingourbusiness characteristicsdescribedbelow.

•Weareexposedtodiverseandgrowingmarkets,largelyanchoredinconsumerstaples.

•Weareindustryleadersinourprimarybusinesses,withsignificantcompetitiveadvantagesinscaleand innovation.

•Wehaveastrongfoundationinourcorebusinesses,whichenablesustodelivergrowthabovegrossdomestic product(GDP)andstrongcashflow.

•Wepossesscatalystsforlong-termgrowthinhigh-valuecategoriesthatrepresentanincreasingproportionof ourportfolio,providecompetitivedifferentiationandenablehighermargins,aswellasinemergingmarkets.

•Wehaveastronginnovationandproductivitycultureandanengagedglobalteamthatdemonstratesagilityto adjustourprioritiestowininthemarketplace.

•Wemaintainastrongbalancesheetanddisciplinedapproachtocapitalallocationthatprovidesinvestment flexibilitytodrivefurtherearningsgrowth.

2 2026ProxyStatement | AveryDennisonCorporation

Overadecadeago,weembarkedonatransformationfocusedonstrengtheningourfoundation,improvingprofitably andbolsteringourportfolioandbalancesheet.Webegantakingamoresegmentedapproachtoourstrategy,advancing growthandimprovingmarginsinourbasebusinessesandsignificantlyincreasingourfocusonhigher-valueproducts andsolutionstofurtheraccelerategrowth,expandmarginsandincreasedifferentiation.Wefocusedinitiallyon increasingorganicgrowth,andthenalsobeganexecutingstrategicacquisitionstoaccelerateourstrategiesandenter attractiveadjacencies.Morerecently,afternavigatingthroughachallenginganddynamicenvironmentwhileimproving ouroverallportfolio,webeganleveragingourcompetitiveadvantagesandenterpriseintelligentlabelcapabilitiesto connectthephysicalanddigital,expandourtotaladdressablemarketandunlocknewgrowthopportunitiesandvalue whilewecontinuetooptimizeouroverallportfolio. Webelievethatconnectingphysicalitemswithdigitalidentitiesisa multi-decadegrowthplatformwhereweareuniquelypositionedtowinbyleveragingourcoreandemerging businessesandselectivelyaddingcapabilitiestostrengthenourlong-termposition.

Throughoutthisjourneywehavereliedonourheritageofexcellentexecution,continuousimprovementand productivity,whichenablesustodeliverstrongresultsinvariousscenariosanddeploycapitalinadisciplinedmanner. Wehaveinvestedorganicallyinourbusinesses,consistentlygrownourdividend,acquiredattractivecompaniesat goodvalueandearnedahighreturnonoursharerepurchases.

Wearenowfocusedonexpandingourleadingpositioninconnectingphysicalitemstodigitalidentitiesand drivinggrowthinhigh-valuecategoriesorganicallyandinorganicallywhilestrengtheningourbasebusinesses. Our focusaddresseskeymegatrendsofdigitizationofindustries,artificialintelligence,sustainabilityandcircularity,retail transformationanddemographicshifts,whichweexpectwillhavenetpositiveimpactsontheindustriesweserve despiteelevatedgeopoliticalandmacroeconomicuncertainty.Weprioritizeusingourmarketinsights,drivinglong-term innovationandenhancingthedigitalcapabilityofourteamstodeliversolutionsthatbringvaluetoourcustomers,while continuingtoexecutewellinthebasebusinessesthathavebeenkeytooursuccess.

Executionofourfivestrategicpillarsenablesustodeliverlong-termvaluethroughabalanceofGDP+growth andtop-quartilereturnsacrosscyclesandexpandsouropportunityforfuturegrowth;our2025achievementsin advancingthesepillarsareshownbelow.

STRATEGICPILLARS2025ACHIEVEMENTS

Driveoutsizedgrowthinhigh-valuecategoriesthroughmarket-driveninnovation Weaimtoincrease,bothorganicallyandthrough acquisitions,theproportionofourportfolioinhighvaluecategories thatservemarketsthataregrowing fasterthanGDP,representlargepoolsofpotentialprofit, leverageourcorecapabilitiesandincreaseour competitivedifferentiation.InourMaterialsGroup,highvaluecategoriesincludeourspecialtyanddurablelabel materials,graphicsandreflectivesolutions,and performancematerials.InourSolutionsGroup,highvaluecategoriesincludeintelligentlabelsthatuseRFID tagsandinlays;shelf-edgepricing,productivityand consumerengagementsolutions;andexternal embellishments.

In2025,high-valuecategoriesdeliveredaboveaverageorganicsalesgrowthinMaterialsand Solutionsandhigher-than-averageenterprisemargins. Havingdisproportionatelydrivenourorganicsales growthinrecentyears,high-valueproductsand solutionsnowrepresent~45%ofourrevenuemix.

Growprofitablyinourbasebusinesses

Weseektogrowprofitablyinourbasebusinessesby balancingvolume,priceandmix;reducingcomplexity; andtailoringourgo-to-marketstrategies.

Weprotectedoverallmarginsinourbasebusinesses despiteaweakersalesenvironment by,amongother things,executingourproductivityplaybookandtaking materialreengineeringandproductivityactions.

STRATEGICPILLARS2025ACHIEVEMENTS

Leadattheintersectionofthephysicalanddigital WeleveragethecapabilitiesofourMaterialsand Solutionsbusinessestoconnectthephysicalanddigital tohelpourcustomersoptimizelaborefficiencyandsupply chaineffectiveness,reducewasteandmitigateloss, advancecircularityandtransparency,andbetterconnect theirbrandswithconsumers.

Ourbusinessfundamentals,innovationleadershipand go-to-marketstrategiesuniquelypositionustoleadin connectingphysicalitemswithdigitalidentities. We deliveredlow-singledigitorganicsalesgrowthin enterpriseIntelligentLabelsin2025despitesignificant volumeimpactsdrivenbychangesintariffpolicies.

Effectivelyallocatecapitalandrelentlesslyfocusonproductivity Wemaintainastrongbalancesheetwithamplecapacity toinvest.Webalanceourcapitalinvestmentinorganic growth,productivity,andacquisitionsandventure investmentswithcontinuingtoreturncashto stockholdersthroughagrowingdividendand strategicallyexecutedsharerepurchases. Inaddition,we takeactionstorestructureouroperationsandusematerial reengineering,leanoperatingprinciplesandfixed-cost innovationtoexpandourmargins,enhanceour competitivenessandprovideafundingsourcefor reinvestment.

Weinvested$200.4millioninfixedandinformation technologycapitalexpenditurestosupportorganic growth;acquiredW.F.TaylorHoldings,Inc.(“Taylor Adhesives”)for~$390million;paid$288.4millionin dividends;andmadepaymentsof$572.3millionfor sharerepurchases. Wealsodeliveredover$60millionin pre-taxsavingsfromrestructuringactions,netof transitioncosts,andmade~$36millionincloud technology-relatedinvestments.

Leadinanenvironmentallyandsociallyresponsiblemanner Weenableprofitablerevenuegrowthandmargin expansionatourcompanyandinourvaluechainby advancingthecirculareconomy,reducingthe environmentalimpactofouroperations,andoffering moresustainablevalue-creationopportunitiesforour customers. Wealsoseektomakeapositivesocialimpact byfosteringanengagedandempoweredworkforce, enhancingourworkplaceculture,maintainingoperations thatpromotehealthandsafety,andsupportingour communities.

Welargelyachievedour2025sustainabilitygoalswe setin2015 – deliveringallthoserelatedto environmentalsustainability – andhaveimplemented planstoachieveourmoreambitious2030 sustainabilitygoals. Wereducedtheenvironmental impactofouroperations;advancedourstrategic innovationprioritiesfocusedonmaterialscircularity, wastereduction/eliminationandplasticpackaging recyclability;enhancedouremployeeexperience;and contributed$6.1milliontosupportourcommunities, primarilythroughtheAveryDennisonFoundation(ADF).

Withthesestrategiesinmind,ournear-termprioritiesareto:

•Driveprofitablegrowth,withafocusonhigh-valuecategories

•Accelerateourcostleadershipbyimprovingproductivity,particularlyinourbasebusinesses

•Improvecapitalefficiencywithafocusonreducingworkingcapital

•Deliverourenterpriseinnovationpriorities

•Increasedigital/artificialintelligenceoutcomes,includingbyacceleratingdigitalrevenue

•Pursueacquisitionopportunitiesthatexpandourexposureinhigh-valuecategories

OURPERFORMANCE

2025FinancialResults

Wedeliveredsolid2025resultsinadynamicenvironment,reflectingthedurabilityofourfranchiseandour abilitytoactivatemultipleleversacrossarangeofmacroeconomicscenarios.Despiteheadwindsfromtariff-related uncertaintyandsofterconsumersentiment,weleveragedourproductivityplaybooktomaintainmarginsand generatesubstantialcashflow. Ourresultsreflecttheresilienceofourbusinessmodelandtheagilityofourteamsas theyremainedfocusedondrivingoutsizedgrowthinhigh-valuecategories,acceleratinginnovationtoadvanceour differentiation,deliveringproductivitytoprotectmarginsinourbasebusinessesandallocatingcapitaleffectively.

4 2026ProxyStatement | AveryDennisonCorporation

Ourkeyfinancialresultsfortheyearareshownbelow.Saleschangeexcludingtheimpactofcurrency(saleschange ex.currency),adjustedearningspershare(EPS),adjustedfreecashflow,adjustedfreecashflowconversion,andreturn ontotalcapital(ROTC)–aswellasorganicsaleschange,adjustedearningsbeforeinterest,taxes,depreciationand amortization(EBITDA),andadjustedEBITDAmargin,whichareusedlaterinthisproxystatement–aresupplemental non-GAAPfinancialmeasuresthatweuseinternallyandprovidetoassistinvestorsinassessingourperformance, operatingtrendsandliquidity.Thesemeasuresaredefined,qualifiedandreconciledfromgenerallyacceptedaccounting principlesintheUnitedStatesofAmerica(GAAP)inAppendixAofthisproxystatement.

KEY2025FINANCIALRESULTS

Netsalesof$8.9billion increasedby1.1% from$8.8billionin2024,reflecting volume/mixgrowth,partiallyoffsetby deflation-relatedpricereductions

Saleschangeex.currencyincreasedby0.4%

ReportedEPSof$8.79 increasedfrom$8.73 in2024

AdjustedEPSincreasedby1.1%from$9.43 to$9.53,reflectingoutsizedsalesgrowthin high-valuecategoriesandmitigationoftariffrelatedimpactsandsofterconsumervolumes

Netcashprovidedbyoperatingactivitiesof $881.4million decreasedby6.1%from $938.8millionin2024

Adjustedfreecashflowincreasedby1.1% from$699.5millionto$707.1million; adjustedfreecashflowconversionwas103%

Netincomeof$688.0million decreasedby 2.4%from$704.9millionin2024

ROTCwas15.0%

Weexitedadynamicandchallenging2025notjustmoreresilient,butstructurallystrongertodeliverlongertermvaluecreation.Continuedadvancementofourstrategicprioritiesunderpinsourconfidenceinreturningto strongergrowthanddeliveringtop-quartilereturns,andweentered2026withaclearpathtoachievingour20252028financialtargets.

ProgressTowardLong-TermFinancialTargets

Ourlong-termperformancereflectsthestrengthanddurabilityofourportfolio,resilienceofourmarket positions,ouragileandtalentedglobalteam,andconsistentexecutionofourstrategies,whichtogetherenableusto deliverstrongresultsandcompoundearningsinvariousscenariosacrosscycles.

InMarch2021,weannouncedfinancialtargetsthrough2025.Attheendofthefive-yearhorizonforthesegoals,we deliveredsolidresults–exceedingourtop-linegoalandperformingwellonourprofitabilitytargets–byleveragingthe strengthofourportfoliotomitigatemultiplecyclicalchallenges.WedidnotachieveourtargetsforadjustedEPS, primarilyduetotheimpactofforeigncurrencytranslationandacquisitionintangiblesamortization,andROTC,largely drivenbyimpactsfromacquisitions.

Ourfinancialtargetsthrough2028reflectouroverridingobjectivetodeliverGDP+growth,marginexpansionand top-quartilereturnsoncapital.Basedonourperformanceforthefirsttwoyearsoftheirfive-yearhorizon,weare currentlyin-lineoraheadofmostofthesetargets.Weremainfocusedonshiftingourorganicsalesgrowthtrajectoryto achievethesetargets.

Forthe2021-2025period,onafive-yearcompoundannualbasis(with2020asthebaseperiod),GAAPreportednet sales,operatingincome,netincomeandEPSincreasedby4.9%,5.3%,4.4%and5.9%,respectively.Forthe2024-2025 period,onatwo-yearcompoundannualbasis(with2023asthebaseperiod),GAAPreportednetsales,operating income,netincomeandEPSincreasedby2.9%,15.6%,17.0%and19.1%,respectively.GAAPreportedoperating marginin2025was11.8%.Ournon-GAAPtargetsandresultsforboththeseperiodsareshownbelow.

2021-2025TARGETS2021-2025RESULTS2024-2028TARGETS2024-2025RESULTS

SalesChangeEx.Currency(1)(2) 5%+5.7%5%+2.7%

AdjustedEBITDAGrowth(1)(2)(3) 6.5%6.3%7.5%+7.3%

AdjustedEBITDAMargin(1) 16%+in202516.4%in202517%+in202816.4%in2025 AdjustedEPSGrowth(1)(2) 10%6.1%10%9.8% ROTC(1) 18%+15.0%in2025TopQuartile(4) TopDecile(4)

(1) Resultsfornon-GAAPmeasuresarereconciledfromGAAPinAppendixAofthisproxystatement.

(2) For2021-2025targetsandresults,percentagesreflectfive-yearcompoundannualgrowthrates,with2020asthebaseperiod.For2024-2028 targetsand2024-2025results,percentagesreflectfive-andtwo-yearcompoundannualgrowthrates,respectively,with2023asthebaseperiod.

(3) AlthoughadjustedEBITDAgrowthwasnotoneofouroriginaltargets,itwasimpliedbythesaleschangeex.currencyandadjustedEBITDAmargin targets.TheforeigncurrencytranslationimpacttoEBITDAwasabenefitofapproximately$38millionin2021;aheadwindofapproximately $81million,$20millionand$7millionin2022,2023and2024,respectively;andabenefitofapproximately$5millionin2025.

(4) RelativetodesignatedpeergroupusedtomeasurerelativeTSRasshownonpage69ofthisproxystatement.

EffectiveCapitalAllocation

Weinvestinourbusinessestosupportorganicgrowthandseektoacquireorinvestincompaniesthatcan accelerateourstrategiesbyexpandingourexposureinhigh-valuecategories,increasingourpaceofinnovationand advancingoursustainabilitypriorities. Whileourfixedandinformationtechnologycapitalexpendituresin2025of $200.4millionwas16%lowerthanin2024,wecontinuedtoinvestinourbusinesses–whichalsoincluded approximately$36millionofcloudtechnology-relatedinvestments–withconsiderationtotariff-relateduncertaintyand asofterconsumervolumeenvironment.Duringtheyear,weprioritizedotherelementsofourcapitalallocationstrategy, primarilysharerepurchasesandsecondarilyacquisitionsandventureinvestments.WeexpandedourMaterialsGroup’s high-valuespecialtyadhesivesportfoliothroughtheacquisitionofTaylorAdhesives,aGeorgia-basedflooring-related adhesivesbusiness,forapproximately$390million;wealsomadeventureinvestmentsinfivecompaniesdeveloping technologicalsolutionsthatwebelievehavethepotentialtoadvanceourstrategies.

In2025,wepaid$288.4millionindividendsof$3.70pershare,having raisedourquarterlydividendrateby7%in April2025.Inaddition,werepurchased3.2millionsharesofourcommonstock,withpaymentsforsharerepurchasesof $572.3million,havingacceleratedrepurchaseswhenoursharepricewassignificantlylowerthanitsintrinsicvalue.

Asshownbelow, overthelastfiveyears,wehavedeployedmorethan$2billiontoacquisitions(including ventureinvestments)andmadepaymentsthatreturnednearly$2.8billiontostockholdersindividendsandshare repurchases

ACQUISITIONS

DIVIDENDS

TotalStockholderReturn(TSR)Performance

OurTSRin2025,whileslightlynegative,wassignificantlyhigherthantheTSRoftheDowJonesU.S.Container& PackagingIndex,theclosestbroad-basedindexweuseasacomparatorgroupinreportingourrelativeperformance,but lowerthantheS&P500IndustrialsIndexandtheS&P500Index.Webelievethatourfive-yearTSRisamore meaningfulmeasurethanourone-yearTSRasitisconsistentwiththetimehorizonofourfinancialtargetsandgoalto deliverlong-termvalueforourinvestors.Asshownbelow,whilelowerthanthebroadertwooftheseindices,ourfiveyearTSRoutperformedtheDowJonesU.S.Container&PackagingIndex.

FIVE-YEARCUMULATIVETSR

ONE-,THREE-ANDFIVE-YEARTSR

AVY DowJones U.S.Container& PackagingIndex S&P500 Industrials Index S&P 500 Index 202141%12%21%29% 2022(15)%(17)%(5)%(18)% 202314%7%18%26% 2024(6)%13%17%25% 2025(1)%(10)%19%18% 3-YearTSR6%9%66%86%

OURDIRECTORNOMINEES(PROPOSAL1)

MatrixofDirectorSkills,QualificationsandDemographics

Ourdirectorsbringabalanceofqualifications,skills,industryandfunctionalexperience,anddemographicstotheir rolesinprovidingoversightofourcompany,asshownbyindividualinthematrixbelow.

Aspartofitsongoingdirectorsuccessionplanningprocess,theGovernanceCommitteeregularlydiscusseswith ourBoardtheoptimalcompositiontobestservetheneedsofourcompany.In2025,theGovernanceCommittee continuedthesearchitbeganintheprioryearforoneormorenewdirectorswithpubliccompanyboardexperience, globalfood,logisticsand/orsupplychainexpertise,and/orsubstantialcompensation,talentmanagementand executivesuccessionplanningexperience,whichculminatedinDavidFlitmanbeingappointedtoourBoardinJuly.

(1) DeterminedbyourBoardasindependentunderNYSElistingstandards.

(2) ServiceasU.S.publiccompanyCEO,ChiefOperatingOfficer(COO)and/orChiefFinancialOfficer(CFO).

(3) PriororconcurrentserviceonanotherU.S.publiccompanyboard,excludingcompaniesatwhichindividualservedorservesasCEO,COOand/orCFO.

(4) Keyforlevelsofindustryandfunctionalexperience:

Š Technicalexpertise–Directmanagementexperienceorsubjectmatterexpertiseduringprofessionalcareer.

Š Supervisoryexperience–Supervisorymanagementexperienceduringprofessionalcareer.

Š Substantialknowledge–KnowledgefromservingonboardofanotherU.S.publiccompanyand/orgainedfrominvestmentbankingorprivateequityexperience.

(5) Definitionsforareasoffunctionalexperience:

-Finance–Experienceinaccounting,financeandcapitalmanagement,includingoversightoffinancialreporting,financialstatementsandinternalcontrols.

-Marketing–Experienceinmarketingandmanagingbrands,particularlyinretailandconsumerpackagedgoodsindustries.

-M&A–Experienceinidentifying,evaluating,executingandintegratingacquisitions,ventureinvestmentsandotherstrategicopportunities.

-EnvironmentalSustainability–Experienceinidentifyingandimplementingenvironmentalpracticesandinitiativesorinconductingclimate-relatedstrategic planning,riskmanagementandmitigation.

-Cybersecurity–Experienceininformationsecurity,cybersecurityordataprivacyriskmanagementandmitigation.

-Science/Engineering/R&D–Experienceinmaterialsscience,engineeringortheresearchanddevelopmentofinnovativeproductsandsolutions.

(6) Classificationsforcategoriesotherthantenurebasedonresponsestodirectorquestionnaires.

BoardandGovernanceDevelopments

ExecutiveChairmanTransition

FollowingasuccessfulCEOtransitionandconsistentwiththerangeofanticipatedtimingfortheExecutiveChairman role,MitchButierceasedservingasacompanyexecutiveofficerandemployeeafterthe2025AnnualMeeting.Noting thatheremainedbestpositionedtoleadourBoardinoverseeingmanagement’sexecutionofourstrategies–andgiving considerationtohissuccessasExecutiveChairmanandthevaluablementorshiphehadprovidedtoDeonStanderthen inhisfirst18monthsasCEO–upontherecommendationoftheGovernanceCommittee,ourBoardelectedMr.Butier (withhimnotpresentforthediscussionorvote)tocontinueservingasChairmanthroughtheAnnualMeeting.

MandatoryDirectorRetirementPolicyChange

ToalignmorecloselywiththemajoritypracticeofS&P500companieswithamandatorydirectorretirementpolicy, upontherecommendationoftheGovernanceCommittee,ourBoardamendedourAmendedandRestatedBylaws(our “Bylaws”)andCorporateGovernanceGuidelines(our“GovernanceGuidelines”)inFebruary2026torequirethata directorbesubjecttomandatoryretirementonthedateoftheannualstockholdermeetingfollowingthedateonwhich heorsheturnsage75insteadofthepreviousage72.

CybersecurityCommitteeFormation

EffectiveJanuary2026,theBoardformedastandaloneCybersecurityCommitteechargedwithprimaryoversightof ourstrategies,policiesandriskmanagementpracticesrelatedtocybersecurityandinformationsecurity,includingthe impactofartificialintelligenceonthesematters,twomembersofwhicharerequiredtobeindependentdirectors. Throughyear-end2025,thesemattershadbeenoverseenprimarilybytheAuditCommittee.

BoardPerformanceHighlights

OurBoardprovidesstrongoversightofourmanagementteamandcompany;highlightsofitskeyaccomplishmentsin recentyearsaredescribedbelow.

•Supportedmanagementinnavigatinglowerdemanddrivenprimarilybydownstreaminventorydestockingin 2023;strongvolumegrowthandmarginexpansionin2024withindustryvolumeshavingnormalized;anda dynamicenvironmentdrivenbytariff-relatedimpactsandsofterconsumervolumesin2025

•Oversawmanagement’sexecutionofourstrategies,supportingoureffortstoadvancekeypriorityareasoffood anddigital,aswellasachievingtwoofourfour2025financialtargetsanddelivering2021-2025TSRof27%, outperformingtheDowJonesU.S.Container&PackagingIndex

•Supportedmanagementinevaluatingsynergisticpotentialtargets,resultinginouracquisitionofseveral companies,includingTaylorAdhesivesin2025,thataddednewcapabilities,expandedourpositioninhigh-value categoriesandenhancedouropportunitiesinthemarketplace

•ImplementedthoughtfulBoardrefreshmentanddirectorsuccessionplanningtoensurewehaveabalanced, high-caliberBoardwithrespecttoindustryexperience,functionalexperienceanddemographicstooverseeour evolvingbusinessstrategies,leadingtotheappointmentofthreeindependentdirectorsinthelasttwoyearsand mitigatingtheimpactofthedepartureofthreelonger-tenuredindependentdirectorsduringthatperiod

•Conductedregularexecutivesuccessionplanning,resultinginexperiencedleaderspromotedtoseniorpositions, includingourMaterialsPresidentin2024andIntelligentLabelsPresidentin2025

•Sharpenedfocusonsustainability,deliveringour2025environmentalsustainabilitygoalsandbeginningthe journeytowardachievingourmoreambitious2030goals,aswellasoverseeingourcompliancewithevolving regulatoryrequirementsandincreasedtransparencyinoursustainabilityreporting

GovernanceHighlights

Highlightsofourgovernanceprogramareshownbelow.

✓ Market-standardproxyaccess

✓ Righttocallspecialmeetingsofstockholdersat25%ownershipthreshold

StockholderRights

✓ Nosupermajorityvotingrequirements

✓ Nopoisonpill

✓ Noexclusiveforumorfee-shiftingbylaws

✓ Annualelectionofdirectors

✓ Majorityvotingindirectorelections

✓ Singleclassofoutstandingvotingstock

✓ Directors80%independent

✓ RobustLeadIndependentDirectorrole

✓ RegulardirectorsuccessionplanningandpacedBoardrefreshment

BoardGovernance

✓ Regularexecutivesuccessionplanningandleadershipdevelopment

✓ AnnualBoard/Committeeevaluationsandbiannualindividualdirectorfeedbackprocess

✓ Mandatorydirectorretirementpolicyatage75withnoexemptionsorwaiversallowedorgranted

✓ BestpracticeGovernanceGuidelines

✓ StrongBoardandCommitteegovernance

✓ Directaccesstomanagementandexperts

OURSUSTAINABILITY

Webelievethatsustainabilityisabusinessimperativethatdrivesprofitablerevenuegrowthandmarginexpansion whilealsoreducingourenvironmentalimpactandensuringwecomplywithevolvingregulatoryrequirements.While macro-sustainabilitymaybeaslightsecularheadwindforourbasebusinesses,weseesignificantopportunitytoderive valueascustomersincreasinglyfocusonthereturnoninvestmentoftheireffortstoaddresssustainabilitychallenges. Wearebalancingdeliveryofnear-termvaluewhilecreatinglong-termdifferentiationandresiliencebyestablishing clearerlinkagebetweenoursustainabilitygoalsandgrowthormarginexpansion,engagingenduserstoidentifynew growthopportunities(e.g.,foodwaste,traceability)andexecutingmarket-basedinnovation.

Wehavebeenadvancingsustainabilitybyestablishingourpriorities,settingambitiousgoalsandmakingprogress overtimetowardtheirachievement.

SustainabilityDataandReporting

Wecontinuetorefinethesustainabilitydatawedisclose,whichhasprovidedourstakeholderswithgreater transparencyintoourprogress.Tofacilitatecomparabilitywithothercompanies, oursustainabilitydataisindexedto theSustainabilityAccountingStandardsBoard(SASB)framework,notingwherethosedisclosuresalignwith indexesoftheGlobalReportingInitiative(GRI)andtheFinancialStabilityBoard’sTaskForceonClimate-related FinancialDisclosures(TCFD).Afterpartneringwithathird-partyexperttoassessourdisclosuresagainstthe recommendationsregardingtheinformationthatcompaniesshoulddisclosetoallowtheirstakeholderstoassessand pricetheirclimate-relatedrisks,wehavepreliminarilyalignedourreportingwithTCFDrequirements.Wehaveannually respondedtoCarbonDisclosureProject(CDP)Climate,WaterSecurityandForestsandsupportthegrowingadoptionof InternationalSustainabilityStandardsBoard(ISSB)standards.

Wemonitorregulatoryrequirements,includingtheEuropeanCorporateSustainabilityReportingDirective(CSRD), whichwillimposeadditionaldisclosurerequirementsforourcompanybeginningin2028(basedon2027data).We anticipatethat,infutureyears,wewilluseourCSRDreportsastheprimarydisclosurevehicleforoursustainabilitydata giventheirfoundationinadoublematerialityassessmentandrequireddisclosureofqualitativeandquantitativedatafor asubstantialnumberofreportingmetricsonmaterialtopics,aswellasaclimatetransitionplan.

Oursustainabilityteamsassessourreportinginaccordancewithexternalframeworks;engagewithratingagencies; manageourdatacollectionandreportingprocesses;establishandmonitorassuranceguidanceandcontrols;andapprove reports,dataandinformation.Inaddition,weengagean independentthirdpartytovalidateourenergyand greenhousegas(GHG)emissionsdata. HavingalignedwiththeAuditandGovernanceCommitteestoensureBoard alignmentwithoursustainabilitygovernance,ourreportingprocessesensuredataownersign-off,sustainability disclosurecommitteereviewandseniormanagementapprovalpriortopublication.

Afterevaluatingourcompanyintheareasofenvironment,laborandhumanrights,ethicsandsustainable procurement,EcoVadis,athird-partysustainabilityratingscompany,awardedourcompanyits“gold”ratingforour sustainabilityperformancein2025.Thisdesignationplacesusinthetop5%ofcompaniesforsustainability practicesacrossmorethan180countries.

Our2025IntegratedReport,whichhighlightsourprogressonsustainabilitymatters,isbeingmadeavailableonour websiteonorbeforethefilingofthisproxystatementandfurnishedtotheU.S.SecuritiesandExchangeCommission (SEC)priortothedistributionofourproxymaterials.Informationonourwebsiteisnotandshouldnotbeconsideredpart of,norisitincorporatedbyreferenceinto,thisproxystatement.

Havingreachedtheendoftheirten-yearhorizon,wesubstantiallyachievedthe2025sustainabilitygoalsweset in2015,includingdeliveringallthoserelatedtoenvironmentalsustainability,asshowninthescorecardbelow.

Greenhouse GasEmissions

Achieveatleast3%absolutereductionyear-over-yearand atleast26%cumulativereductionby2025

Paper

Films

Chemicals

Productsand Solutions

Waste

Source100%certifiedpaper,ofwhichatleast70%is ForestStewardshipCouncil®-certified

70%offilmswebuyconformto,orenableendproductsto conformto,ourenvironmentalandsocialguidingprinciples

70%ofchemicalswebuyconformto,orenableend productstoconformto,ourenvironmentalandsocial guidingprinciples

Derive70%ofrevenuesfromsustainability-drivenproducts (asdefinedbyourSustainableADvantagecriteria)

Be95%landfill-free,withatleast75%ofourwastereused, repurposedorrecycled 2015

People Continuetocultivatediverse(40%+femaleatlevelof managerandabove),engaged,safe(recordableincident rate(RIR)of<0.25),productiveandhealthyworkforce

Maintainworld-classsafetyandemployeeengagement scores 2015

Transparency Committogoalspubliclyandbetransparentinreporting progress N/A

Achieved. AlthoughGHGemissionsnominallyincreasedin 2025,theydeclinedby61%cumulativelyfrombaselineyear

Achieved. Oftotalvolumeofpaperprocuredin2025,>99% wascertified,with81%offacepaperForestStewardship Council®-certified

Achieved. 99%of2025filmvolumeconformedtoMaterials Group’sRestrictedSubstanceList(RSL)

Achieved. 99%of2025chemicalvolumeconformedto MaterialsGroup’sRSL

Achieved. 70%ofMaterialsGroup(basedonlyonLabeland GraphicMaterials)and70%ofSolutionsGroup(basedonly onApparelSolutions)salesin2025camefrom sustainability-drivenproductsthatareresponsiblysourced, enablerecyclability,containrecycledcontentoruseless material

Achieved. Diverted96%ofsolidwastefromlandfillsand recycled77%ofwastein2025

Notachieved. Femalerepresentationatlevelofmanager andaboveincreasedby5%frombaselineyearto37%at YE2025(1)

Achieved. Continuedworld-classsafetyrecord,withRIRof 0.17in2025,substantiallylowerthanmanufacturing industryaverageof2.7in2024(mostrecentlyavailable data)

Achieved. Employeeengagementscoreof86%in2025

Delivered. Continuedenhancingsustainabilitytransparency withmorecomprehensivereportinginourIntegrated Reports,proxystatementsandotherpublicdisclosures

(1) Ourgoalistofosteraworkforcerepresentativeofthecommunitiesinwhichweoperate;asoneindicator,wetrackthepercentageoffemalesinmanager leveland abovepositionsglobally.

Our2030sustainabilitygoals,withinwhichwehavespecifictargets,prioritizethemostsignificantenvironmental andsocialsustainabilitychallengesfacingourcompanyandstakeholders.Ourprogresstowardthesegoalsinorthrough 2025isshownbelow.

2025SCORECARDOFPROGRESSTOWARD2030SUSTAINABILITYGOALS

GoalsTargetsBaselineYearHighlightsofProgress

Satisfytherecycling,compostingorreuserequirements ofallsingle-useconsumerpackagingandapparelwith ourproductsandsolutions

Deliver innovationsthat advancethe circulareconomy

Reducethe environmental impactinour operationsand supplychain

SolutionsGroup:100%ofourcoreproduct categories(printedfabriclabels,wovenlabels,paper, interiorheat-transferlabels,packagingandRFID) willmeetourSustainableADvantagestandard

MaterialsGroup:100%ofourstandardlabel productswillcontainrecycledorrenewablecontent; allofourregionswillhavelabelsthatenable circularityofplastics

ReduceourScope1and2GHGemissionsby70%from our2015baseline

Workwithoursupplychaintoreduceour2018baseline Scope3GHGemissionsby30%,withanambitionofnet zeroby2050

N/A82%(basedonlyonApparelSolutions)in2025

N/A67%(basedonlyonLabelandGraphicMaterials)in 2025

Scope1and2:61%in2025

N/A

Scope3:Prior-yearcalculationspubliclyavailableinour mostrecentCDPClimateresponse

Source100%ofpaperfiberfromcertifiedsources focusedonadeforestation-freefuture 2015>99%certifiedin2025

Divert95%ofourwasteawayfromlandfills,witha minimumof80%ofourwasterecycledandthe remaindereitherreused,compostedorsenttoenergy recovery

Delivera15%increaseinwaterefficiencyatoursites thatarelocatedinhigh-orextremelyhigh-riskcountries asidentifiedintheWorldResourcesInstituteAqueduct Tool

Fosteranengagedteamandaninclusiveworkplace

•InclusionIndex:85%

•EmployeeEngagement:82%

•Femalesinmanagerlevelorabovepositions:40%

Makea positivesocial impactby enhancingthe livelihoodof ourpeopleand communities

2015

94%landfill-freein2025 77%recycledin2025

N/A4%increaseinefficiencyin2025

•Safety:RIRof0.20 2015

SupporttheparticipationofouremployeesinADFgrants andfosterthewell-beingofthecommunitiesinwhich weandoursupplychainoperate

•85%ofcountriesinwhichweoperatereceiveADF grants

•50%ofallADFgrantsincorporatevolunteerism

81%in2025(N/Ain2015)

86%in2025(from80%)

37%atYE2025(from32%)(1) 0.17in2025(from0.31)

N/A

Made2025ADFgrantsin77%ofcountriesinwhichwe operate 95%of2025grantsincorporatedemployeevolunteerism

(1) Ourgoalistofosteraworkforcerepresentativeofthecommunitiesinwhichweoperate;asoneindicator,wetrackthepercentageoffemalesinmanager leveland abovepositionsglobally.

PEOPLEANDCULTURE

Wedrawfromthelargestpooloftalenttofindthebestpeopleforourcompanyand,byfosteringaworkplacethat embracesamixofskills,experiencesandbackgrounds,weempowerouremployeestobeincreasinglyproductive, innovativeandengaged. Wearededicatedtocontinuouslystrengtheningourhigh-performance,values-basedculture andmaintainingahighlyengagedglobalteaminaworkplacegroundedinfairness,whichwebelievetranslatesinto betterbusinessoutcomesthatbenefitallourstakeholders. Weregularlyreportto,andengagewith,ourstakeholders onthesematterssotheycanassessourprogress.

Ourpeople-focusedstrategicpillarsincludeenhancingtheexperienceofourmanufacturingemployeesandmaking meritandtransparencyevenmorefoundationaltoouremployeeexperience.Membersofourseniorleadershipsponsoror activelyengageinprogressingthesepillars.Wehavebeenleveragingourglobalenterpriseinfrastructuretosupport business-driveneffortstoadvanceourtalentprioritiesineachofourregions;accountabilityforprogressbeginningin 2026hasmovedtoourbusinessestodrivemoresustainableimpact.

In2025,amongotherthings,westrengthenedleadershipcapabilityandaccountabilityforbuildinghighperformingteams;developedourAveryDennisonLeadershipAcademy;tightenedpay-for-performancelinkage throughanenhancedmeritprocessinourrecentlyimplementedandmorerobustglobaltalentmanagementsystem; enableddirectemployeeaccesstoourenterprisecareerarchitecture;investedinadvancedcareerdevelopment programming;andsignificantlyexpandedourlargestmentoringprogram.

Ouremployeeexperiencedependsonourculture,leadership,technologyandworkenvironment.In2025,our employeeexperiencesurveyachieveditshighestlevelofparticipationinrecentyears,with88%ofourglobalemployee populationhavingresponded. Ourenterpriseemployeeexperiencescoreof86%–ourhighestsince2018–reflected consistentorimprovedengagementacrossallbusinessesandpositivetrendsrelativetoprioryearinthemajorityof questions. Themostnotablegainswereinareaswehadspecificallytargetedforaction,includingcareeradvancement opportunity,developmentopportunityandconfidenceinbusinessstrategy.Ourbusinessandfunctionalteamsareusing theanonymizedresultsfromthesurveytoimplementactionstoaddressidentifiedopportunitiesforimprovement.

Ourenterprisecompetencymodelrepresentsourglobalstandardfortheleadershipskillsandbehaviorsthatwe developinouremployeessowecanachieveourvision. Thismodel,whichestablishesclearexpectationsthatalignwith ourvaluesandstrategiesandincreasesfairness,consistencyandtransparencyinhowwehire/select,promote,develop andrewardourtalent,wasembeddedintokeytalentprocessesandpracticesin2025,includingperformance management,developmentandlearning.

Werecognizethatensuringfairandequitablepayisacontinuousprocess,andweaimforfair,consistentand transparentpaypracticesacrossourglobalworkforce.Aspartofthisprocess,weannuallyevaluatepayequity,making merit-basedpayadjustmentswhereappropriateafteraccountingforlegitimatefactorsthatmaydrivedifferencesinpay, suchaslocation,level,function,performance,experienceandpotential.Weexpandedouranalysispopulationin2025to includeemployeesfromseveralrecentacquisitions.Ourteamsengagewithcompanyleadershiponourpayequity/ transparencyprioritiesandimplementadvancementsinourprocessthatconsiderstotaldirectcompensation,including basepay,annualincentivecompensationandcash/equity-basedlong-termincentives. In2025,weimplemented process,trainingandtechnologyadvancementstoguidemarket-competitivemerit-basedpaydecisionsandavoid unexplainedpaygaps.

STOCKHOLDERENGAGEMENT

InadditiontoourongoingprogramthroughwhichourCEO,CFO,businessleadersandInvestorRelationsteam engagewithourstockholdersthroughouttheyear,wesemiannuallyengagewithourlargestinstitutionalinvestorsto solicitfeedbackonourstrategies,governanceprofile,executivecompensationandsustainabilityprogress,offeringto includedirectorsinscheduledmeetings. OurBoardandmanagementbelievethatongoingstockholderengagement fostersadeeperunderstandingofevolvinginvestorexpectationsandhelpsensurewecontinuetoreflectbest practices. 2025EngagementResults

Wecontactedourtop35investorsinproxy seasonandtheoff-season.OurLead IndependentDirectorandmanagement answeredquestionsanddiscussedmattersof investorinterest. Weengagedwithevery stockholderwhoacceptedourinvitationto meetorotherwiserequestedameeting,and ourLeadIndependentDirector(LID)ledthe majorityofouroff-seasonengagements.

*Basedonpercentageofsharesoutstanding.

Wediscussedtheresultsandfeedbackfromour2025engagementregardingexecutivecompensationandsocial sustainabilitywiththeCompensationCommitteeandregardinggovernanceandenvironmentalsustainabilitywith theGovernanceCommittee.WealsosharedhighlightswithourBoardtosupplementthereportsfromthose CommitteeChairs.

2025EngagementFeedback

Theprimaryareasoffocusduringour2025engagementswereBoardcompositionandrefreshment,includingrecent directordepartures/appointmentsandtherefinedBoardmatrixincludedinour2025proxystatement;Boardleadership structure,includingMr.Butier’stransitionfromExecutiveChairmantonon-executive/non-employeestatus;andour sustainabilityprioritiesandprogresstowardachievingour2025and2030goals.

GovernanceFeedback

Our2025engagementsprovidedfeedbackonthegovernancemattersdescribedbelow.

• Boardcomposition,includingthebalanceofskills,qualifications,industryandfunctionalexperience,tenureand otherdemographicsonourBoardaftertheadditionofnewdirectorsanddepartureoflonger-tenureddirectors

• Boardleadershipstructure,includingMr.Butier’stransitiontonon-executiveChairman;thedifferingrolesand responsibilitiesandworkingrelationshipsamongourChairman,LeadIndependentDirectorandCEO;the rationaleforourBoard’scurrentleadershipstructurefollowingoursuccessfulsuccessionplanningprocessand CEOtransition;thestrongmentorshipourChairmanandLeadIndependentDirectorhaveprovidedourCEOwith recentBoardchanges,allowingourCEOtofocusonaddressingbusinesschallengesanddevelopingkeyleaders; andourengagedandexperiencedLeadIndependentDirector,whocontinuestoensureindependentoversight

• Boardrefreshment,includingournewdirectorrecruitmentprocess;therationaleforMr.Flitman’sappointment toourBoardinJuly2025;andtheGovernanceCommittee’spauseinactivelysearchingfornewdirectorsgiven ourcurrentBoardsize,broadmixofskills,qualificationsandexperience,andsignificantBoardturnoverinthe pasttwoyears,whilecontinuingtoensurearobustpipelineofpotentialnewdirectors

• Boardonboarding,education,riskoversightandengagement,includingournewdirectororientationand onboardingprocesses,aswellasongoingdirectoreducationanddevelopment;ourBoard’soversightofkey risks,particularlycybersecurity;andtheadditionalengagementofcertainofourdirectorsonAdvisoryCouncils, providingthemwithanopportunitytoengageinanon-fiduciarycapacitywithourbusinessleadersandindustry expertstosupportmanagementinadvancingkeyareasofstrategicfocus

•Thevotingresultsforour 2025stockholderproposalonexcessivegoldenparachutes,with94%ofvotescast consistentwithourBoard’srecommendation

EnvironmentalSustainabilityFeedback

Environmentalsustainabilityremainedasignificantareaoffocusforthestockholderswithwhichweengaged. InvestorscontinuedtoappreciatethescopeofoursustainabilityreportingandtransparencyinourIntegrated Reports,proxystatementsandotherpublicdisclosures. Duringourconversations,weprimarilydiscussedthe sustainabilitymattersdescribedbelow.

•The integrationofenvironmentalsustainabilityintoourstrategy toleadattheintersectionofthephysicaland digital,andour Board’soversightthereof

•The financialimpactofoursustainabilityefforts,includingrevenuegrowthandmarginexpansionenabled throughsustainability-relatedinnovationandcostsavingsfromreductionsinourenvironmentalimpact, includingthroughenergyefficiencyprojects

• Ourprogresstowardour2025and2030sustainabilitygoals,includingoursubstantialachievementofthe formersetofgoalsandmanagement’sfocusonadvancingroadmapstodeliverthelonger-termsetofgoals

•Ourcontinued effortsandchallengesinreducingScope3GHGemissions,highlightingthemoreaccurate, market-consistentresultsenabledbyourchangeinemissionsmeasurementmethodologyfromspend-basedto onethatismorematerials-basedtominimizetheimpactofmacroeconomicfactorssuchasinflation

•Our evaluationofoursupplychain anduseofthirdpartiestoauditsuppliersusingarisk-basedapproachthat considersourspendandcountry-specificrisks,aswellastheremediationwerequirefromflaggedsuppliersto continueourbusinessrelationship,highlightingimprovedengagementandmoreadvanceddialoguewithkey rawmaterialsuppliers

•Our waterusage,notingthatwhilewearenotamajordirectconsumerofwater,ourpapersuppliersare significantusersofwater,andwecontinuetoassesswaystobetterrepresentouroverallwaterimpact

•Our processestopreventtheuseofrestrictedchemicals,includingreviewofregulationsbyourgovernment affairsteamandourinnovationeffortsenablingusageofmaterialsthatdonotappearonourevolvingRSLs

•The impactofrecentacquisitions,includingtheincorporationofsustainabilityassessmentsintoourdue diligenceprocess

SocialSustainabilityandExecutiveCompensationFeedback

WerespondedtoinquiriesfrominvestorsonsocialsustainabilityregardingourBoard’sanditsCompensation Committee’sleadershipsuccessionplanningprocesses;ourBoard’sexposuretolower-levelleadersinthesuccession pipeline,includingcertaindirectorsinteractingwithabroadermixofleadersinAdvisoryCouncils;ourtalentdevelopment program,includingitslinkagetoourenterprisecompetencymodelandthedeploymentoftrainingtoadvancethe professionaldevelopmentofourteammembers;andthedemographicmixofourexecutivesandpotentialinternal successorstokeyleadershiproles.

Wealsoengagedwithseveralinvestorstogatherperspectivesonpotentialchangestoourexecutivecompensation programunderconsiderationbytheCompensationCommitteeduring2025asdescribedunder PreviewofRevised2026 ExecutiveCompensationProgram intheCompensation,DiscussionandAnalysis(CD&A)sectionofthisproxystatement.

APPROVALOFEXECUTIVECOMPENSATION(PROPOSAL2)

TheCompensationCommitteeoverseesourexecutivecompensationprogram,whichisdesignedtodeliverpayfor performance,withrealizedcompensationprimarilydependentonachievementofourannualfinancialgoalsandlongertermvaluecreationobjectivesthatadvancetheinterestsofourstockholders.

ExecutiveCompensationProgram

TheCompensationCommitteeestablishesthesubstantialmajorityofNamedExecutiveOfficer(NEO)targettotal directcompensation(TDC)asperformancebased,meaningthatourexecutivesultimatelymaynotrealizethevalue ofat-riskcomponentsifwefailtoachievethedesignatedperformanceobjectives. Incentivecompensationconsistsof targetawardopportunitiesunderourAnnualIncentivePlan(AIP)andlong-termincentive(LTI)program,withpayouts determinedbasedonourperformanceagainstthethreshold,targetandmaximumlevelsestablishedbythe CompensationCommittee.Themixandelementsof2025NEOtargetTDCareshownbelow.

CEOAverageofOtherNEOs TargetTDCMix

Long-TermIncentiveCompensation

CorporateNEOsBusinessNEO

89%Performance-based71%Performance-based Performance-Based Elements

PerformanceUnits(PUs)

Market-leveragedStockUnits(MSUs)

•50%ofLTIwithpayout= 0%to200%oftargetaward

•Three-yearperformanceperiod -CompanyEVA(1) (50%)

-CompanyRelativeTSR(2) (50%)

•50%ofLTIwithpayout= 0%to200%oftargetaward

•Three-yearperformanceperiod

-BusinessEVA(1) (75%)

-CompanyRelativeTSR(2) (25%)

•CumulativeEVAgoalstiedtosuperiorTSRobjectiveandlong-termfinancialtargets

•RelativeTSRpayoutcappedat100%ifabsoluteTSRisnegative

•50%ofLTIwithpayout=0%to200%oftargetaward

•One-,two-,three-andfour-yearperformanceperiods -100%CompanyAbsoluteTSR(3)

AnnualIncentiveCompensation

CorporateNEOsBusinessNEO

BaseSalary

•Drivesperformancetodeliverannualcompany/businessfinancialgoals

•Individualperformancemodifierbasedonachievementofstrategicobjectives(generally cappedat100%forNEOs)

•Annualfixed-cashcompensationgenerallysetaroundmarketmedian

(1) EconomicValueAdded(EVA)isameasureoffinancialperformancecalculatedbydeductingtheeconomiccostassociatedwiththeuseofcapital(weightedaverage costofcapitalmultipliedbyaverageinvestedcapital)fromafter-taxoperatingprofit.

(2) RelativeTSRcomparesourTSRtothatofcompaniesinapeergroupdescribedintheCD&Asectionofthisproxystatement.

(3) AbsoluteTSRmeasuresthereturnthatweprovideourstockholders,includingstockpriceappreciationanddividendspaid(assumingreinvestmentof dividends).

(4) AdjustedEPS,adjustedfreecashflow,adjustedsalesgrowthandadjustedEBITDAaredefinedintheCD&Asectioninthisproxystatement.

PayforPerformance

Inthegraphbelow,CEOcompensationreflectsMr.Stander’sSummaryCompensationTablecompensationfor2023 through2025andsuchcompensationofourformerCEOfor2021and2022,relativetoour2021-2025TSRof27%. ChangesinCEOpayhavegenerallycorrelatedwithchangesinTSR,exceptin2023,whenCEOpaywassubstantially lowerthanintheprioryearbecauseMr.Stander’s2023compensationprimarilyreflectedhiscompensationasCOO,and in2024,whenCEOpaywassubstantiallyhigherthanintheprioryearbecauseitreflectedMr.Stander’sfirstfullyearas CEO.

ExecutiveCompensationBestPractices

AssummarizedbelowanddescribedinfurtherdetailintheCD&Asectionofthisproxystatement,ourexecutive compensationprogramalignswithourfinancialgoalsandbusinessstrategiesandreflectsbestpractices.

Payfor Performance

Compensation BestPractices

✓ 89%ofCEO’s2025targetTDCdependentoncompanyperformance

✓ RigorousstockownershippolicyrequiresCEOtoown6xbasesalary,atleast50%ofwhichmust bevestedshares;doesnotcountunvestedPUsorstockoptionsandonlycounts50%ofunvested MSUsattargetpayoutlevel

✓ Double-triggerequityvestingrequiresterminationofemploymentafterchangeofcontrol

✓ YE2025three-yearaverageburnrateof0.37%,between25th and50th percentilesofS&P500companies

✓ Compensationclawbackpolicyforexecutiveofficersineventofaccountingrestatement;additional clawbackpolicyforallAIPandLTIrecipientsineventoffraudormisconductresultinginrestatement

✓ IndependentcompensationconsultantservesatdirectionofCompensationCommittee

✓ AnnualCompensationCommitteeevaluationandcharterreview

✓ Periodicreviewofcompensationprogramandassessmentoffeaturesthatmitigateexcessiverisk-taking

✓ Releasesofclaimsandrestrictivecovenantsfordepartingexecutives

✓ CompensationCommitteereviewoftallysheetsreflectingallNEOcompensationcomponents

✓ NoNEOemploymentcontractsunlessrequiredbylawsormarketpracticesofhomecountry

✓ NoguaranteedAIPawards;NEO2025AIPawardsbasedsolelyonfinancialperformance

✓ Noexcisetaxgross-upsonchangeofcontrolseverancebenefits

✓ Notaxgross-upsonperquisites

✓ Noabove-marketinterestratesfordeferredcompensation

✓ Nore-pricingofstockoptionswithoutstockholderapproval

✓ NopayoutofaccrueddividendequivalentsonMSUsunlessanduntilawardsvest

✓ Nostockoptionsawardedbelowfairmarketvalue

✓ Nosupplementalretirementbenefits

RATIFICATIONOFAPPOINTMENTOFPWC(PROPOSAL3)

TheAuditCommitteehasappointedPricewaterhouseCoopersLLP(PwC)asourindependentregisteredpublic accountingfirmforfiscalyear2026andourBoardisseekingstockholderratificationoftheappointment.PwCiswellqualifiedtocontinueservingasourindependentregisteredpublicaccountingfirm,hasadeepunderstandingofour operationsandaccountingpractices,andmaintainsrigorousprocedurestoensureindependencefromourmanagement, Boardandcompany.

TheAuditCommitteeconsideredthequalifications,performanceandindependenceofPwC,thequalityofits discussionswiththeengagementteam,andthefeeschargedbythefirmforthescopeandqualityofservices providedanddeterminedthattheappointmentofPwCfor2026isinthebestinterestofourcompanyand stockholders.

VOTEONSTOCKHOLDERPROPOSALFORINDEPENDENTBOARDCHAIRMAN(PROPOSAL4)

JohnR.Chevedden,astockholderresidingat2215NelsonAvenue,No.205,RedondoBeach,California90287who hasbeneficiallyownednofewerthan15sharesofourcommonstocksinceSeptember20,2022,hasinformedusthathe intendstopresentaproposalattheAnnualMeetingseekingourBoardtoadoptapolicyrequiringthattwoseparate peopleholdtheofficesofChairmanandCEOandthattheChairmanbeanindependentdirector.Iftheproponentorhis qualifiedrepresentativeattendsandproperlypresentstheproposalforavote,thenthestockholderproposalwillbe votedonduringtheAnnualMeeting.

OurGovernanceGuidelinesgiveourBoardthediscretiontoseparateorcombinetherolesofChairmanandCEO asitdeemsappropriatebasedontheneedsofourcompanyatanygiventime.Tofacilitatethisdecision-making,the GovernanceCommitteeannuallyreviewsourBoardleadershipstructure–givingconsiderationto,amongother things,ourfinancialposition,businessstrategies,governanceprofile,theresultsofourannualBoard/Committee evaluationprocess,andanyfeedbackreceivedfromourinvestorsandotherstakeholders–andrecommendstoour Boardwhethertoseparatetheroles,aswellastheLeadIndependentDirectorincaseswheretheChairmanisnot independent.

OurBoard’sGovernanceCommitteehascarefullyconsideredtheproposalandbelievethatitisunnecessaryandnot inthebestinterestsofourcompanyandstockholders. ItiscriticalthatourBoardcontinuestomaintainthediscretion todetermineitsappropriateleadershipstructureconsistentwiththebusinessjudgmentaffordedtoitunder DelawarelawandourGovernanceGuidelines;inadditiontoarobustLeadIndependentDirectorrole,wehavea Boardandgovernanceprofilethathelpsensureindependentoversightofmanagementandaccountabilitytoour stockholders;and,duringengagementsonthistopic,ourstockholdershaveexpressedbroadsupportforourcurrent Boardleadershipstructure. Forthereasonssetforthinitsoppositionstatement,ourBoardrecommendsthatyouvote AGAINSTthisproposal.

GOVERNANCE

Thekeyfeaturesofourgovernanceprogramareshowninthe GovernanceHighlights sectionoftheproxysummary. Weencourageyoutovisittheinvestorssectionofourwebsiteunder GovernanceDocuments,whereyoucanviewand downloadcurrentversionsofthedocumentsshownbelow.Informationonourwebsiteisnotandshouldnotbe consideredpartof,norisitincorporatedbyreferenceinto,thisproxystatement.

•AmendedandRestatedCertificateofIncorporation,asamended(our“Charter”)

•Bylaws

•GovernanceGuidelines

•ChartersforourBoard’sAuditCommittee,CompensationCommittee,GovernanceCommittee,Finance CommitteeandCybersecurityCommittee

•CodeofConduct

•CodeofEthicsfortheCEOandSeniorFinancialOfficers

•AuditCommitteeComplaintProceduresforAccountingandAuditingMatters

Youcanrequestcopiesofthesedocuments,withoutcharge,bywritingtoourCorporateSecretaryat8080Norton Parkway,Mentor,Ohio44060.

VALUESANDETHICS(V&E)

CodeofConduct,TalkaboutToolkitsandSupplierStandards

OurCodeofConductappliestoallofourdirectors,officersandemployeesandreflectsourvalues-basedcultureand adherencetoethicalconduct.OurrefreshedCodeofConduct,whichlaunchedin2024,includedexpandedcontenton keytopicssuchascybersecurity,dataprivacyandthird-partyriskmanagement,newtopics,andreal-worldguidance usingupdatedscenariosandQ&Atobetterconnecttoourteammembers’workanddecision-making. In2025,we focusedoninstitutionalizingtherefreshedCodeacrossourglobalworkforcebydeliveringregularV&E communications;implementingtoolstoenableourteammembersmoreeasilytoreportpotentialviolationsofthe code;anddiligentlyandefficientlymanagingamarkedincreaseinreportsattributedtothenewcodelaunch,“Safe toSpeakUp”trainingandourproactiveawarenesscampaign.

TheCodeisavailableinover30languagesindownloadableandprintableforms,aswellasthroughapublic interactivemicrositethatprovidestransparencytoourexternalstakeholders.Ourleadersaffirmtheircommitmentto complyingwithitwhentheyfirstjoinourcompanyandannuallythereafteraspartofthecompliancecertificationprocess describedunder RelatedPersonTransactions intheSecurityOwnershipInformationsectionofthisproxystatement.We performin-personcompliancecheck-insatselectglobalsiteseachyeartomeasuretheeffectivenessofourV&Eprogram usingsurveysandconductinginterviewswithleadershipandmanufacturingemployees,afterwhichweimplement actionsasneededtoenhanceawareness.

WeregularlytrainemployeesonCodeofConducttopicsininstructor-ledsessionsheldinpersonorvirtually;in2025, weheldover270ofthesesessionsglobally.Wealsodeploymandatoryonlinetrainingforourcomputer-based employees.In2025,welaunchedoneenterprise-wideandfiveregionalcourses,withanaveragecompletionrateof nearly97%forthe40,000courses.Thethree“Talkabout”Toolkits(alsoavailableinover30languages)thatwe developedduringtheyearempoweredmanagerstoleaddiscussionswiththeirteamsonourrefreshedCodeofConduct, whichweresupplementedbyanewlycreatedV&ECommunityonourcompanyintranetforemployeestoaskquestions andengagewiththeircolleaguesacrosstheglobe.

OurglobalsupplierstandardsextendourV&Ecommitmenttoourthird-partyserviceproviders,establishingour expectationthattheydobusinessinanethicalmanner.

BusinessConductGuideLine

OurBusinessConductGuideLine(the“GuideLine”)isawhistleblowerhotlineavailableatallhoursforemployeesor thirdpartiestoreportpotentialviolationsofourCodeofConductorapplicablelaws,anonymouslyiftheysochoose.The GuideLinemaybereachedbyvisitingwww.averydennison.com/guidelinereport.TheGuideLineisoperatedbyan

independentthirdpartyandacceptsreportsinanylanguagetoaccommodatetheneedsofourglobalworkforceand customer/supplierbase.ReportsareinvestigatedunderthedirectionofourChiefComplianceOfficer,inconsultationwith ourlawdepartmentandseniormanagementandwithBoardoversightprimarilybytheGovernanceCommitteeand,for certainaccounting-andfinancial-relatedmatters,alsobytheAuditCommittee.Weprohibitretaliationforgood-faith reporting.

CodeofEthics

OurCodeofEthicsrequiresthatourCEO,CFOandControlleractprofessionallyandethicallyinfulfillingtheir responsibilities,whichinclude(i)avoidingactualorapparentconflictsofinterest;(ii)ensuringcompleteandaccurateSEC filings;(iii)respectingconfidentialityoffinancialandotherinformation;(iv)employingcorporateassetsresponsibly;and (v)reportingCodeofEthicsviolationstoChairofAuditorGovernanceCommittees.

OnlytheAuditCommitteeortheGovernanceCommitteecanamendorwaivetheprovisionsofourCodeofEthics, andanyamendmentsorwaiversmustbepostedpromptlyonourwebsiteortimelyfiledwiththeSEConaCurrent ReportonForm8-K.Todate,wehavemadenoexemptionsorgrantedanywaiverstoourCodeofEthics.

Supportingfulfillmentoftheseresponsibilities,ourcontrollershipandinternalauditfunctionsensurethatwemaintain arobustinternalcontrolenvironment,withtheleadersofthesefunctionsregularlyreportingtotheAuditCommittee.

COMPLAINTPROCEDURESFORACCOUNTINGANDAUDITINGMATTERS

TheAuditCommitteehasadoptedproceduresfortheconfidential,anonymoussubmissionofcomplaintsrelatedto accounting,accountingstandards,internalaccountingcontrolsandauditpractices.Theseproceduresrelatetoreportsof (i)fraudordeliberateerrorinthepreparation,evaluation,revieworauditofourfinancialstatementsorotherfinancial reports;(ii)fraudordeliberateerrorintherecordingormaintenanceofourfinancialrecords;(iii)deficienciesin,or noncompliancewith,ourinternalaccountingcontrols;(iv)misrepresentationorfalsestatementregardinganymatter containedinourfinancialrecords,statementsorotherreports;or(v)deviationfromfullandfairreportingofourfinancial condition.Anyperson,includingthirdparties,maysubmitagood-faithcomplaintregardingaccountingandauditing mattersandemployeesmaydosowithoutfearofretaliation.TheAuditCommitteeoverseestheseprocedures,with investigationsconductedunderthedirectionofourinternalauditdepartmentinconsultationwithourCorporate Secretary,ChiefLegalOfficer(CLO)andothermembersofseniormanagementtotheextentappropriateunderthe circumstances.

Stockholdersandotherinterestedpartiesinterestedincommunicatingregardingthesemattersmaymakea confidential,anonymousreportbycontactingtheGuideLineorwritingtotheAuditCommitteeChair,c/oCorporate Secretary,8080NortonParkway,Mentor,Ohio44060.

STOCKOWNERSHIPPOLICY

Ourstockownershippolicyrequiresthatour(i)Chairmanacquireandmaintainminimumownershipof $750,000;(ii)othernon-employeedirectorsacquireandmaintainminimumownershipof$500,000;(iii)CEOacquire andmaintainminimumownershipof6xhisbasesalary;and(iv)Level2andLevel3NEOsacquireandmaintain minimumownershipof3xand2xtheirbasesalary,respectively. Atleast50%oftheapplicablerequirementmustbe heldinvestedshares.

Thevaluesofthefollowingshares/unitsareconsideredinmeasuringcompliancewithourstockownershippolicy: (i)sharesbeneficiallyownedordeemedtobebeneficiallyowned,directlyorindirectly,underU.S.securitieslaws;(ii)for officers,sharesorunitsheldinqualifiedandnon-qualifiedemployeebenefitplansand50%ofthevalueofunvested MSUsatthetargetpayoutlevel;(iii)fornon-employeedirectors,deferredstockunits(DSUs);and(iv)forofficersand non-employeedirectors,unvestedrestrictedstockunits(RSUs).UnvestedstockoptionsandPUsarenotconsideredin measuringcompliance.DSUs,whichrepresentannualcashretainersdeferredatadirector’selection,areconsidered ownedbecausetheyareearneduponreceiptandwouldbeconvertedtosharesofourcommonstockandissuedtoa participatingdirectoruponhisorherseparationfromourBoard.

Untiltheyachievetheirminimumownershiprequirement,non-employeedirectorsandofficersarerequiredto retainanysharesacquired,netoftaxes,fromthevestingofstockawardsorexerciseofstockoptions.Officersmay nottransactincompanystockuntiltheycertifythattheywillremainincompliancewithourstockownershippolicy aftergivingeffecttothetransactiontheyplantoeffectuate.

20 2026ProxyStatement | AveryDennisonCorporation

TheCompensationCommitteeandtheGovernanceCommitteereviewednon-employeedirectorstockownershipin December2025andFebruary2026,respectively.Asofyear-end2025, allbutourfourmostrecentlyappointednonemployeedirectorshadexceededtheirminimumownershiprequirement. Mses.MejiaandReverberiandMessrs. DicksonandFlitmanhavefiveyearsfromthedateoftheirrespectiveBoardappointmentstoreachthatlevelandeachof themisontracktowardtimelyachievingcompliance.

TheCompensationCommitteereviewedofficerstockownershipinDecember2025.Asofyear-end2025, allNEOs hadachievedtheirminimumownershiprequirement

Theyear-end2025complianceofournon-employeedirectorsandNEOswithourstockownershippolicyisshown below.

STOCKOWNERSHIPPOLICYCOMPLIANCE

DeenaBaker-Nel$1,710,00012,145 ✓ 1x

Level3NEO

IgnacioWalker$1,124,11311,219

1x

(1) MinimumownershiprequirementsforCEO,Level2NEOsandLevel3NEOreflect6x,3xand2x,respectively,ofyear-end2025basesalary.

(2) Reflectsshares/unitsconsideredinmeasuringcompliancewithourstockownershippolicybasedontheaverageclosingpriceofourcommon stockfromOctober1toDecember31,2025.

(3) OtherthanMessrs.Wagner,Yostandtheindividualsnamedinfootnote(4)below,allnon-employeedirectorsandNEOswerealsoin compliancewiththe50%vestedsharesrequirementasofyear-end2025;theseindividualshavefiveyearsfromtherespectivedateof appointmentorpromotiontoachievethe50%vestedsharesrequirement.

(4) Messrs.DicksonandFlitmanandMses.MejiaandReverberiwereappointedtoourBoardinJune2024,July2025,February2024and February2023,respectively,andhavefiveyearsfromtheirrespectivedateofappointmenttoachievetheirminimumownershiprequirement.

(5) MinimumownershiprequirementforMr.AllouchewasconvertedfromIsraelishekelsusingtheaveragemonthlyexchangerateforDecember 2025.

INSIDERTRADINGPOLICY

Ourinsidertradingpolicy,thecurrentversionofwhichwasfiledasanexhibittoour2025AnnualReport, prohibitsourdirectors,officersandemployeesfromengagingintransactionsinanytypeofsecuritywhilein possessionofmaterialnonpublicinformationrelatingtothesecurityortheissuerofthesecurityinbreachofaduty oftrustorconfidence,whethertheissuerisourcompanyoranothercompany. Inaddition,(i)iftheyareinpossession ofmaterialnonpublicinformationregardinganyotherpubliclytradedcompany,includingthatofoursuppliers,customers, competitorsorpotentialacquisitiontargets,theymaynottradeinitssecuritiesuntiltheinformationbecomespublicoris nolongermaterial;(ii)theymaynotpurchaseorsellanysecurityofanyothercompany,includinganothercompanyinour industry,whileinpossessionofmaterialnonpublicinformationaboutthatcompanyobtainedinthecourseoftheir employmentorservicewithourcompany;and(iii)theymaynotdirectlyorindirectlycommunicatematerialnonpublic informationtoanyoneoutsideorwithinourcompanyotherthanonaneed-to-knowbasis.

Officer/Director10b5-1Plans

Ourinsidertradingpolicycontainsspecificrequirementsregardingcontracts,plansorinstructionstotradeinour company’ssecuritiesenteredintoinaccordancewithSECRule10b5-1,includingwithrespecttomultipleplansand modificationsorterminationsofexistingplans.Wereservetherighttosuspend,discontinueorotherwiseprohibit transactionsundera10b5-1tradingplanifwedeterminethatdoingsoisinthebestinterestofourcompany.

LimitedTradingWindows

AlltransactionsincompanystockmustbepreclearedbyourCorporateSecretary. Ourinsidertradingpolicy restrictstradingincompanystockbyBoardmembers,officersanddirector-levelemployees,oranyotherperson designatedbyourCorporateSecretary,duringblackoutperiods,whichbegintwoweeksbeforetheendofeachfiscal quarterandendtwobusinessdaysaftertheissuanceofourearningsreleaseforthequarter.Additionalblackoutperiods maybeimposedwithorwithoutnotice,asthecircumstancesrequire.Exceptfortransactionsunderapreviously established10b5-1tradingplan,ifpreclearedindividualsbecomeawareofmaterialnonpublicinformationorbecome subjecttoablackoutperiodbeforetheirtransactioniseffectuated,theymaynotcompletethetransactionevenifthey previouslyreceivedpreclearance.

ProhibitionsonCertainTransactions

Ourinsidertradingpolicyprohibitsourdirectors,officersandemployeesfromshort-sellingcompanystock; transactinginputs,callsorotherderivativesecuritiesinvolvingcompanystock;orpurchasingfinancialinstruments (suchasprepaidvariableforwardcontracts,equityswaps,collarsandexchangefunds)designedtohedgeoroffset anydecreaseinthemarketvalueofcompanystock. Inaddition,directorsandofficersareexpresslyprohibitedfrom–andournon-officeremployeesarestronglydiscouragedfrom–pledgingsharesofourcommonstockascollateralfora loan,purchasingcompanysecuritiesonmarginorplacingcompanysecuritiesinamarginaccount.

Toourknowledgebasedontheirwrittenrepresentationsinourannualdirectorandofficerquestionnaire,allof ourBoardmembersandexecutiveofficerscompliedwithourinsidertradingpolicyduring2025andnoneofthem engagedinanytransactionprohibitedthereby.

SUSTAINABILITY

Havingincorporatedsustainabilityintoourbusinessplansasavaluedriver,weworkwithinourcompanyandacross ourvaluechaintoaddresstheenvironmentalandsocialimpactsofourproductsandpractices.

Westrivetoadvancetheenvironmentalsustainabilityofourcompanyandvaluechainbydeliveringinnovations thatenableprofitablerevenuegrowthandmarginexpansionwhilealsoadvancingthecirculareconomy,reducing theenvironmentalimpactofouroperationsandofferingmoresustainablevalue-creationsolutionsforour customers.Wealsoseektomakeapositivesocialimpactbyfosteringanengagedandempoweredworkforce, enhancingouremployeeexperience,maintainingoperationsthatpromotehealthandsafety,andsupportingour communities.

BOARDOVERSIGHTANDMANAGEMENTRESPONSIBILITY

Webelievethatstrongsustainabilitygovernanceensuresconsistencyandaccuracyoftheinformationwereportto ourstakeholders.Oursustainabilitygovernancestructuredisclosedinpriorproxystatementscontinuestobeeffective, ensuringleadershipfocuswithBoard/Committeeoversight.

BoardoversightofenvironmentalsustainabilityandcommunityinvestmentisprimarilyconductedbytheGovernance Committee,whichreceivesareportfrommanagementoneachofthesetopicsatleastannually.Inaddition,ourfullBoard engageswithbusinessleadersontheirenvironmentalsustainabilityinitiativesduringitsregulardiscussionoftheir businessstrategies. InOctober2025,ourBoardengagedwithseniormanagementonourenvironmental sustainabilityprogress,havingdiscussedduringtheyearourinnovationeffortstoaddressmarketdemandformore sustainableproductsandsolutions. InFebruary2026,ourBoardreviewedour2025IntegratedReport,whichincludes theresultsofour2025sustainabilitygoalsandprogresstowardour2030goals,withourCEOandHeadofEnterprise Sustainability.

BoardoversightofsocialsustainabilityisprimarilyconductedbytheCompensationCommittee,whichdiscussed talentmattersatmultiplemeetingsin2024,includingourenterprisehumanresourcesstrategy,executivesuccession planning,andpayequityandtransparency. InDecember2025,ourBoardengagedwithmanagementontheresultsof ouremployeeexperiencesurveyandprogressinourpeople-focusedstrategicpillars.

WithstrategicguidanceanddirectionprovidedbyourCEO,managementisresponsibleforensuringthatwe continuetomakeprogresstowardachievingoursustainabilitygoalsthroughourSustainabilityCouncil,whichisledby ourenterprisesustainabilityleaderreportingtoourCEO,whocontinuestobeaccountableforourprogress.Thecouncil, whichiscomposedofacross-divisionalandcross-functionalgroupofcompanyandbusinessleaders,metquarterly during2025todocumentthestrategicandfinancialimpactsofoursustainabilityeffortsonourcompanyandcustomers, progressustowardachievingour2030sustainabilitygoalsandtargets,accuratelyreporttoourstakeholdersandensure wecomplywithevolvinglegalandregulatoryrequirements. Ourenterprisesustainabilityleaderparticipatedinnearly allofour2025off-seasonstockholderengagementstoreportonoursustainabilityadvancementsandanswer questionsfrominvestors.

PROGRESSTOWARDACHIEVING2025AND2030GOALS

Webelievethatoursustainabilityprioritiesreflecttheexpectationsofourstakeholders.Weregularlyreportour sustainabilityprogressandinterviewmembersofmanagementresponsibleforkeysustainabilityinitiatives,aswellas customers,sell-sideanalystsandmembersofsustainabilityorganizations,duringourbiannualmaterialityassessments. Thefeedbackrelatedtoenvironmentalandsocialsustainabilitywereceivedduringourengagementwithinvestorsin 2025canbefoundintheproxysummary.

Wepresentscorecardsshowingthesubstantialachievementofour2025sustainabilitygoalsandprogresstoward our2030sustainabilitygoalsintheproxysummary.Youcanfindadditionalinformationinour2025IntegratedReport.

Tofacilitatecomparabilitywithothercompanies,oursustainabilitydataisindexedtotheSASBframework, notingwherethosedisclosuresalignwithindexesoftheGRIandTCFD.WeareamemberoftheUnitedNations GlobalCompactandhavemadecommitmentstotheUnitedNationsSustainableDevelopmentGoalsandthe ScienceBasedTargetsinitiative(SBTi).OurScope1,2and3GHGemissionsreductiontargetshavebeenapproved bySBTiasconsistentwithreductionsrequiredtokeepglobalwarmingtonomorethan1.5°C.Wehaveannually respondedtoCDPClimate,WaterSecurityandForestsandsupportthegrowingadoptionofISSBstandards.

TALENTMANAGEMENT

ExecutiveSuccessionPlanning

Recognizingthatwehavehadseveralleadershipchangesinrecentyears,includingtheappointmentsofour MaterialsPresidentin2024andourIntelligentLabelsPresidentin2025,ourBoardcontinuestoprioritizethoughtful executivesuccessionplanning. InApril2025,consistentwithitspracticeofconductingCEOsuccessionplanningatleast annuallyaspartofitsstronggovernanceprogram,ourBoardupdatedthescorecardofdesiredattributes/outcomesand experiencesaligneduponwithathird-partyleadershipadvisoryfirmtoreflectourcompany’scontinuedevolution,and discussedtheprogressofpotentialinternalCEOsuccessors,aswellasemergencysuccessionintheeventaneedarises. AtthattimeandagaininOctober2025,theCompensationCommitteereviewedchangesinourseniorexecutiveteam andourcontinuedprogressindevelopingleadershipasakeysourceofcompetitiveedge,anddiscussedpotential successorstothemembersofourCompanyLeadershipTeam,whichincludestheleadersofourbusinessesand corporatefunctions,withreferencetotheirdevelopmentplansandourenterprisecompetencymodel.TheCommittee’s ChairledadiscussionofthesesuccessionplanningreviewswithourfullBoard.

TheCompensationCommitteeregularlyreceivesreportsonexecutivenewhires,promotionsandrolechanges, departuresandopenpositionstoassistwithsuccessionplanning.

LeadershipDevelopment

TheCompensationCommitteeoverseesourtalentmanagementeffortstoidentifyanddevelopourfutureleaders. Wemaintainarobustperformancereviewprocessandestablishleadershipdevelopmentplansforourtoptalent,while alsoprovidingcareeradvancementopportunitiestoouremployeesmorebroadly. Seniormanagementreportstothe CompensationCommitteeonourleadershipbyidentifyinghigh-potentialtalentatseniorlevelswithinourcompany, helpingtheseindividualsadvancetheskillsandcapabilitiestobecomeourfutureleaders,andensuringthattheyare executingdevelopmentplanstoprogressthemtowardidentifiedroleswithgreaterresponsibility. Aspartofits regularmeetingprocess,ourBoardhastheopportunitytoengagewithourbusinessandfunctionalleadersinand outsidetheboardroom.Inaddition,Boardmembersperiodicallyvisitourfacilitiestomeetwithlocalmanagementand havethefreedomtoengagedirectlywithanyofouremployees.

COMMUNITYINVESTMENT

WithBoardoversightbytheGovernanceCommittee,ourcommunityinvestmenteffortshelpstrengthenthe communitiesaroundtheworldinwhichweoperate.WemakemostoftheseinvestmentsthroughADF,whichannually distributesatleast5%ofitsassetsfromtheprioryear.ADF’sgrantmakingisaidedbyouremployeesworldwidewho identifynonprofitorganizationsservingtheirlocalcommunitiesinneedoffinancialsupporttoadvancetheirmissionand impact,makemonetarycontributionsandvolunteertheirtime.

ADF’sgrantmakingstrategyfocusesonprovidingfundingtocharitableorganizationsthatareworkingtoincrease accesstoeducation,advanceenvironmentalsustainabilityandsupportsecurelivelihoods.Inadditiontothese grantmakingfocusareas,ADFalsosupportsemployeesintimesofcrisisandnonprofitorganizationsinvolvedindisaster relief. ADFandourcompanycollectivelymadeover$6.1millioningrantsandothercharitablecontributionsduring 2025,with95%ofADFgrantshavingincorporatedemployeevolunteerism.

AdvancingStrategicPillars

Theaggregateamountandimpactofgrantsmadein2025ineachofADF’sstrategicpillars,aswellasselectgrant recipients,isshownbelow;theremainderofADF’scontributionswasprimarilymadeintheotherareasdescribedinthis section.

HIGHLIGHTSOF2025ADFCONTRIBUTIONSANDIMPACTBYSTRATEGICPILLAR

$910KTOINCREASE EDUCATIONACCESS

•CambodianChildren’sFundtoaid impoverishedchildreninCambodia

•InstitutoAndersonVarejãotosupport sportsandeducationalprogrammingfor childreninBrazil

•PainesvilleCityLocalSchoolsEducation FoundationtofundtheirFutureBusiness LeadersofAmericaprograminNortheast Ohio

9,000+studentsimprovedtheirliteracy and/ornumeracyskillsand6,000+women andgirlscompletedADF-supported education

$878KTOADVANCE ENVIRONMENTALSUSTAINABILITY

•Give2Asiatoconvertplasticsintoschool uniformsinChina

•TextileExchangetoaccelerate regenerativetextileproductionsystems inSouthAfrica

•WorldWideFundforNaturetosupport environmentalyoutheducationin Pakistan

IMPACTBASEDONGRANTEEREPORTING

225+communitieswithimprovedclimate resilienceand11,000+participantsat educationalevents

SupportingEmployeesinTimesofCrisis

$425KTOSUPPORT SECURELIVELIHOODS

•Sheltersuittoprovidejobtrainingfor womenrefugeesintheNetherlands

•ReimaginingIndustrytoSupportEquality toimprovelivesofwomenworkingin Bangladesh’sgarmentindustry

•DePuertasAbiertasalTrabajoSolidario todeliverentrepreneurialtrainingin Argentina

2,700+businesseswerelaunchedwith ADFsupport,employing~2,000people

ADF’sEmployeeCrisisFundoffersfinancialassistancetoemployeesimpactedbynaturaldisastersandother humanitariancrises,providing$1millionoffinancialsupporttoimpactedcompanyemployeesintheU.S.,HongKongand SriLankain2025.

AidingDisasterReliefEfforts

ADFpartnerswithGlobalGiving,anindependentnonprofitorganization,todirectlysupportandmatchemployee givingtodisasterreliefeffortsworldwide.During2025,ADFandouremployeesmadedonationstoorganizations respondingtoeventsintheU.S.,Brazil,EastAfrica,theMiddleEastandUkraine.

EngagingEmployees

ThroughADF’ssignatureGrantingWishesprogram,employeesorganizevolunteereventsandnominatelocal charitiestoreceivegrants.In2025,ADFmadeover$1millioningrantsin38countriesthroughthisprogram.

ProvidingCollegeScholarships

ADFprovidedcollegescholarshipstoselectedchildrenofcompanyemployeesin2025,furtheringitsgoalof increasingeducationalaccess.TheprogramadministeredbyScholarshipAmericaawardedscholarshipsintheU.S.and Canada,withtheInstituteofInternationalEducationadministeringasimilarprogramtoawardscholarshipsin Bangladesh,Brazil,Honduras,India,Indonesia,Kenya,Malaysia,Mexico,Pakistan,Romania,SouthAfrica,SriLanka, Thailand,TürkiyeandVietnam.In2026,ADFplanstoexpandthisprogramtoallcountriesinwhichwehaveasignificant employeepresence.

OURBOARDOFDIRECTORS

OVERVIEW

OurBoardoversees,counselsandensuresmanagementisservingthebestinterestsofourcompany,withaview towardmaximizingtheperformanceofourbusinessesanddeliveringlong-termvaluetoourstockholders.

PRIMARYBOARDRESPONSIBILITIES

•EstablishBoard/Committeecomposition,structureandresponsibilitiestoensure strongindependentoversight

•Conduct directorsuccessionplanning tomaintain engagedBoard withbalanceofqualifications,skills,industryand functionalexperience,anddemographics

•Oversee businesses,strategyexecution,riskmitigation,governanceprofileandsustainabilityprogress

•Approve annualoperatingplan andkeystrategicdecisions,including acquisitions andsignificantfixedandinformation technologycapitalexpenditures

•Maintain integrityoffinancialstatements andoversee capitalallocationstrategies,including dividendsandshare repurchases

•Evaluateperformanceofseniorleadersanddetermine executivecompensation

•Conduct CEOandotherexecutivesuccessionplanning todevelopleadersthatwilladvanceourfuturegrowth

2026DirectorNominees

OurGovernanceGuidelinesprovideourBoard’sviewthatasizebetween8and12directorsisanappropriaterange toensurerelevantanddiversepointsofview,facilitateactiveandengageddiscussion,andprovideforthenecessary dischargeofitsoversightresponsibilities.UnderourBylaws,thenumberofdirectorsisfixedfromtimetotimebyBoard resolution;ourBoardhasfixedthecurrentnumberofdirectorsatten.

Our2026directornomineesareshowninthechartbelow.AsshownbyindividualintheDirectorMatrixintheproxy summary, theybringabalancedmixofindustryandfunctionalexperiencetooverseeingmanagementinadvancingour strategiesandachievingourfinancialgoals.Theagesofourdirectornomineesrangefrom54to70,withan averageage of61. Theirlengthsofservicerangefromlessthanonetonearly21years,withan averagetenureofsevenyears.

1 BradleyA.Alford 692010RetiredChairman&CEO,NestléUSA

2 MitchellR.Butier 542016Non-executiveChairman,Avery DennisonCorporation–

3 WardH.Dickson 632024RetiredEVP&CFO,WestRockCompany

4 DavidE.Flitman^ 612025CEO,USFoodsHoldingCorp.

5 AndresA.Lopez 632017RetiredPresident&CEO,O-IGlass,Inc.

6 MariaFernandaMejia 622024RetiredCEO,International,NewellBrandsInc.

7 FrancescaReverberi 542023SVP,EngineeredMaterials&PlasticsSolutions,TrinseoPLC

8 PatrickT.Siewert* 702005RetiredManagingDirector&Partner,TheCarlyleGroupInc.

9 DeonM.Stander 572023President&CEO,AveryDennisonCorporation–

592022CEO,SemrushHoldings,Inc.

BoardMeetingsandAttendance

OurBoardmetsixtimesduring2025.Therewere30Boardcommitteemeetingsduringtheyear. Eachofour directorsattendedallofhisorherrespectiveBoardandCommitteemeetingsin2025. Inaddition,ourdirectors regularlyengagedonstrategic,businessandfinancialmatterswitheachofourChairmanandCEOoutsideofmeetings, aswellaswithmanagementthroughcertaindirectors’participationonourAdvisoryCouncilsdescribedbelow.Our GovernanceGuidelinesstronglyencouragedirectorstoattendannualstockholdermeetingsand allthen-serving directorsattendedthe2025AnnualMeeting.

AdditionalBoardEngagement

Bringingtheirindustryandfunctionalexpertise,someofourdirectorsparticipatedonourAdvisoryCouncilsin2025, providingtheirinsightsinanon-fiduciarycapacitytomanagementonkeystrategicinitiativesandcybersecurityrisk management.Thesecouncilsdonotpossessgoverningauthority,whichremainswithapplicablemanagementteams. Currently, Mr.WagnerisamemberofourDigitalAdvisoryCouncil,Mr.AlfordisamemberofourFoodAdvisory Council,andMses.MejiaandReverberiaremembersofourFutureofConsumerPackagingAdvisoryCouncil; Mr.StanderservesonallofthesecouncilsinhiscapacityasCEO. OurCybersecurityAdvisoryCouncil,ofwhich Messrs.ButierandWagnerweremembers,ceasedoperatingatyear-end2025givenourBoard’sformationofthe CybersecurityCommittee.

InApril2025,afterassessingthetimecommitmentsoftheirparticipation,theCompensationCommittee recommendedtoourBoardthatnon-employeedirectorsparticipatingonAdvisoryCouncilsbecompensated$15,000 percouncilperyear.OurBoardapprovedthissupplementalcompensationeffectiveasofthe2025AnnualMeeting.

GOVERNANCEGUIDELINES

OurGovernanceGuidelinesprovidethegovernanceframeworkforourcompanyandreflectthevaluesofourBoard, ashighlightedbelow.Theyarereviewedatleastannuallyandamendedfromtimetotimetoreflectchangesinregulatory requirements,evolvingmarketpractices,recommendationsfromouradvisorsandfeedbackfromourinvestors.Our GovernanceGuidelineswerelastamendedinFebruary2026.

BOARDGOVERNANCEHIGHLIGHTS

✓ Boardoftendirectorswithsignificantrefreshmentinrecentyears

✓ Mandatoryretirementatage75withnoexemptionsorwaiversallowedorgranted

Board Composition

Director Independence

BoardLeadership Structure

BoardCommittees

BoardDuties

✓ Onaverage,directorageof61yearsandtenureofsevenyears

✓ 70%ofdirectorshavetechnicalexpertiseorsupervisoryexperienceinmaterialsscienceor industrialgoodsand60%havetechnicalexpertiseorsupervisoryexperienceinpackaging

✓ Directors80%independent

✓ Executivesessionsofindependentdirectors

✓ AnnualreviewofBoardleadershipstructure

✓ RobustLeadIndependentDirectorroleandindependentAudit,CompensationandGovernanceChairs

✓ AnnualcompositionreviewandperiodicstructuralreviewandChair/memberrotation,includingin 2025givennewandrecentlydeparteddirectorsandchangesindirectors’othercommitments

✓ Conductresponsibilitiesrequiredbyannuallyreviewedchartersreflectinglegalrequirements, stakeholderexpectationsandbestpractices

✓ DirectorsrequiredtoattendBoard/Committeeandstockholdermeetings

✓ RegularCEOandotherexecutivesuccessionplanning

✓ Ongoingreviewoflong-termstrategicplans,includingkeyrisksandmitigatingstrategies

✓ Directorsentitledtorelyonindependentlegal,financialorotheradvisorsatourexpense

Continuous Board Improvement

Director

SuccessionPlanning

✓ Newdirectorsreceiveorientationmaterialsandengagewithseniormanagementtofamiliarize themselveswithourBoardandcompany,receivingadditionalorientationafterjoiningBoard committeestobetterunderstandtheirresponsibilitiesandprocesses

✓ Continuingeducationthroughmeetingswithmanagement,visitstoourfacilitiesandparticipation indirectoreducationprograms

✓ AnnualevaluationprocessensuresBoard,Committees,Chairman,LeadIndependentDirectorand CommitteeChairsareperformingeffectively

✓ AnnualreviewofBoardcompositionandregulardirectorsuccessionplanning

✓ Biannualindividualdirectorfeedbackprocessadvancesongoingdirectordevelopmentandassists withBoardsuccessionplanning

DIRECTORINDEPENDENCE

OurGovernanceGuidelinesrequirethatourBoardcompriseamajorityofdirectorswhosatisfythecriteriafor independenceunderNewYorkStockExchange(NYSE)listingstandardsandthattheAudit,Compensationand GovernanceCommitteesbecomposedentirelyofindependentdirectors.Anindependentdirectorisonewhomeetsthe requirementsoftheNYSEandwhoourBoardaffirmativelydetermineshasnomaterialrelationshipwithourcompany, directlyorindirectlyasapartner,stockholderorofficerofanentitywithwhichwehavearelationship.

Eachyear,alldirectorscompleteaquestionnairedesignedtosolicitinformationthatmayhaveabearingonour Board’sindependencedetermination,includinganyrelationshipstheyhavewithourcompany,directlyorindirectly throughourcompany’ssaleorpurchaseofproductsorservicestoorfromanycompaniesorfirmsbywhichtheyare employed.TheGovernanceCommitteediscussesanydisclosuresmadeinthequestionnairesrelevanttoits independenceassessmentwithourCorporateSecretary,aswellasanytransactionsourcompanyhaswithdirectoraffiliatedentities.InFebruary2026,upontherecommendationoftheGovernanceCommittee,ourBoarddeterminedthat onlyMessrs.ButierandStanderhadrelationshipsthatweredisqualifyingunderNYSElistingstandards,otherwise materialorimpaireddirectorindependence. UpontherecommendationoftheGovernanceCommittee,ourBoard affirmativelydeterminedeightofourtendirectorstobeindependent.

INDEPENDENTDIRECTORSDIRECTORINDEPENDENCE

BradleyAlford WardDickson DavidFlitman AndresLopez MariaFernandaMejia

FrancescaReverberi

PatrickSiewert

WilliamWagner

Foradiscussionofthepotentialimpactoftenureondirectorindependence,see BoardRefreshmentandDirector SuccessionPlanning intheItem1–ElectionofDirectorssectionofthisproxystatement.

BOARDLEADERSHIPSTRUCTURE

OurGovernanceGuidelinesgiveourBoardthediscretiontoseparateorcombinetherolesofChairmanandCEOasit deemsappropriatebasedontheneedsofourcompanyatanygiventime.Tofacilitatethisdecision-making,the GovernanceCommitteeannuallyreviewsourBoardleadershipstructure–givingconsiderationto,amongotherthings, ourfinancialposition,businessstrategies,governanceprofile,theresultsofourannualBoard/Committeeevaluation process,andanyfeedbackreceivedfromourinvestorsandotherstakeholders–andrecommendstoourBoardwhether toseparatetheroles,aswellastheLeadIndependentDirectorincaseswheretheChairmanisnotindependent.

During2025,wehadaCEOandnon-independentChairman,balancedbyaLeadIndependentDirector. Followinga successfulCEOtransitionandconsistentwiththerangeofanticipatedtimingfortheExecutiveChairmanrole, Mr.Butierceasedservingasanexecutiveofficeroremployeeofourcompanyafterthe2025AnnualMeetingand currentlyservesasanon-executiveChairman. SinceMr.Butierisnotindependent,Mr.Siewertwaselectedbyour independentdirectorstoserveasLeadIndependentDirector.

NON-INDEPENDENTCHAIRMANPRIMARYRESPONSIBILITIES

MitchButier ElectedannuallybyBoard

InadditiontocustomarydutiesofChairman:

•Provide Board’scollectiveinputoncompanystrategies toCEO

•EngagewithCEOon value-enhancingstrategicopportunities,aswellasother keyrelationshipsandstrategicalliances

•SupportCEOandCompanyLeadershipTeamin expandinganddeepening relationshipswithkeystakeholders

•Ifrequestedbymanagement,participatein AdvisoryCouncils

• MentorCEO,actingasprincipalliaisonbetweenhimandBoardmembers

LEADINDEPENDENTDIRECTORPRIMARYRESPONSIBILITIES

PatrickSiewert

Electedannuallybyindependentdirectors

RobustLeadIndependentDirectorRole

• Presideoverexecutivesessionsofindependentdirectors andBoardmeetings whereChairmanisnotpresent

• ApproveBoardmeetingagendas,schedulesandotherinformationsenttoour Board

• Callmeetingsofindependentdirectors if/asneeded

• Consultandmeetwithstockholders

• ServeasliaisonbetweenChairmanandindependentdirectors

OurLeadIndependentDirectorexercisescriticaldutiestoensureindependentoversight.OurGovernanceGuidelines definetherole’sprimaryresponsibilities,whichareshowninthechartabove.Mr.Siewertalsoperformedtheactivities describedbelowasLeadIndependentDirectorin2025.

•Ledthemajorityofour off-seasonstockholderengagements

• Consultedwithourindependentdirectors,providingfeedbacktoourChairmanandourCEObasedonthese discussions,includingtheBoard’sevaluationofourCEO’sperformancewiththeCompensationCommitteeChair

• MetregularlywithourChairmanandourCEO

•Servedastheprimary conduitbetweenourindependentdirectorsandseniormanagement

• AttendedselectmeetingsoftheCompensationCommittee toofferadditionalperspective

InFebruary2025,theGovernanceCommitteerecommendedthatMr.Siewert(withhimnotpresentforthe discussionorvote)continueservingasLeadIndependentDirectorthroughtheAnnualMeeting,notingthathehas providedMessrs.ButierandStandervaluablecounselandguidancewhileensuringindependentBoardoversightof management.ThecommitteealsorecognizedMr.Siewert’ssubstantialeffortwithourstockholderengagementprogram. TheGovernanceCommitteedeterminedthat,inlightofhisdemonstratedcommitment,engagementandstrong leadership,Mr.SiewertshouldcontinueensuringindependentstewardshipofourBoardinitsoversightresponsibilities. Thecommittee’sdecisiontookintoaccounthissignificantcontributionsasamemberandformerChairoftheAuditand GovernanceCommitteesandmemberoftheFinanceCommittee,aswellashisover30yearsworkinginAsiaPacific,a regionfromwhich32%ofoursalesoriginatedand58%ofouremployeeswerelocatedatyear-end2024.Uponthe recommendationoftheGovernanceCommittee,theindependentdirectorsonourBoardelectedMr.Siewert(withhim notpresentforthediscussionorvote)asLeadIndependentDirectorthroughtheAnnualMeeting.

SupplementingourLeadIndependentDirectorinprovidingindependentBoardleadershiparetheAudit, CompensationandGovernanceChairs,allofwhomareindependent.

BoardLeadershipStructureEvaluation

DuringourBoard’s2025evaluationprocessandconsistentwithprioryears,Messrs.ButierandSiewertreceived positivefeedbackintheirrespectiverolesasChairmanandLeadIndependentDirector.

InFebruary2026,notingthatMr.ButierremainedbestpositionedtoleadourBoardinoverseeingmanagement’s executionofourstrategies–andgivingconsiderationtohissuccessasChairmanforthepastsevenyearsandthe valuablementorshiphehasprovidedtoMr.StandersinceourCEOtransitioninSeptember2023–uponthe recommendationoftheGovernanceCommittee,ourBoardelectedMr.Butier(withhimnotpresentforthediscussionor vote)toserveasChairmanfortheone-yeartermbeginningaftertheAnnualMeeting,subjecttohisreelection.Alsoat thattime,upontherecommendationoftheGovernanceCommittee,theindependentdirectorsonourBoardelected Mr.Siewert(withhimnotpresentforthediscussionorvote)toserveasLeadIndependentDirectorforthesame one-yearterm,subjecttohisreelection.

BOARDCOMMITTEES

EachofourBoardcommitteeshasacharterthatdescribesitspurpose,membershipandmeeting structure,andresponsibilities.Thesechartersmaybefoundontheinvestorssectionofourwebsiteunder Governance Documents andarereviewedbytherespectivecommitteeatleastannually,withanyrecommendedchangesadopted uponapprovalbyourBoard.Amendedchartersarepromptlypostedonourwebsite.TheAuditCommitteecharterwas mostrecentlyamendedinJanuary2026;theCompensationandGovernanceCommitteeschartersweremostrecently amendedinDecember2025;theFinanceCommitteecharterhasnotbeenamendedsinceitsadoptioninDecember 2023;andtheCybersecurityCommitteecharterwasadoptedinFebruary2026.

UpontherecommendationoftheGovernanceCommittee,Mr.AlfordwasappointedasChairoftheCompensation CommitteeinFebruary2025,havingservedasinterimChairsinceApril2024;Mr.LopezrejoinedtheAuditCommitteein April2025;andMr.FlitmanwasappointedtotheCompensationCommitteeinDecember2025.Mr.Wagnerceased servingontheAuditCommitteeinApril2025.

OurBoardcommitteeshavetheabilitytodelegateauthoritytosubcommitteesandmayobtainadviceandassistance fromconsultants,legalcounselorotheradvisorsatourexpense.Inaddition,eachcommitteeannuallyevaluatesits performance.Thecurrentmembershipandprimaryresponsibilities,aswellas2025meetingandattendanceinformation, forthethreeindependentcommitteesofourBoardaresummarizedbelow.

MEMBERSPRIMARYRESPONSIBILITIES

WardDickson(Chair) AndresLopez MariaFernandaMejia PatrickSiewert

AUDIT COMMITTEE

Auditcommitteefinancialexperts: DicksonandSiewert

AllsatisfyNYSEenhanced independencestandards

MEETINGS

2025meetings:8

Attendance:100%

•Overseefinancialstatementanddisclosurematters, includingquarterlyandannualearnings releasedocumentationandSECreports,internalcontrols,criticalaccountingpoliciesand practices,majorfinancialriskexposuresandsignificanttaxmatters

•Appointandoverseeindependentregisteredpublicaccountingfirm, includingevaluatingits qualificationsandindependence,aswellasscope,staffingandfeesforannualauditandother audit,revieworattestationservices; annuallyreviewingitsperformance andregularly consideringwhethertoappointnewfirm;andapprovingengagementandcompensationofany otherfirmpreparingorissuingauditreportsorrelatedworkorperformingotherauditreviewor attestservices

•Overseeinternalauditfunction, includingappointing/dismissingseniorinternalauditor, evaluatinghisorherperformance,reviewingsignificantissuesidentifiedininternalauditsand management’sresponse,anddiscussingannualinternalauditplan,budgetandstaffing

•Performcomplianceoversightresponsibilities, includingreviewing majorriskexposures relatingtofinancialstatementsandfinancialmattersandreporting;maintainingprocedures forcomplaintsregardingaccounting,internalaccountingcontrolsorauditingmatters;reviewing financiallysignificantlegalmatters;andmakingdeterminationsregardingcertainCodeofEthics violations

•ApproveAuditCommitteeReport forproxystatement

MEMBERSPRIMARYRESPONSIBILITIES

BradleyAlford(Chair)

DavidFlitman

AndresLopez

FrancescaReverberi

AllsatisfyNYSEenhanced independencestandardsand qualifyas“non-employee directors”underRule16b-3of theSecuritiesExchangeActof 1934(the“ExchangeAct”)

MEETINGS

2025meetings:6

Attendance:100%

•ReviewandapproveAIPandLTItargetsinlightofourfinancialgoals;including evaluating companyandindividualperformancetodetermineCEOcompensationandoverseeing evaluationofperformanceofotherexecutiveofficers

•Reviewand approveseniorexecutivecompensation,includingbasesalariesandincentive compensation

•Conductleadershipsuccessionanddevelopmentplanning andregularlyreviewexecutive newhires,promotionsandrolechanges,departuresandopenpositions

•Overseeexecutivecompensationstrategy,incentiveplans,equity-basedplansandbenefit programs

•Reviewandprovideoversightoftalentmanagementpoliciesandstrategies,including workforcedemographics;payequityandtransparency;leadershipcompensationplans, benefits,recruitingandretentionstrategies,anddevelopmentprograms;andemployee experience

•Reviewstockholderengagementprocess,resultsandfeedback relatedtoexecutive compensation,talentmanagementandsocialsustainability

•ApproveCD&AandTalentandCompensationCommitteeReport forproxystatement

•Overseestockholderapprovalofexecutivecompensationmatters,includingsay-on-payand say-on-frequencyvotes

•Assesscompensationprogramsforpotentialencouragementofexcessiverisk-taking

•Recommendnon-employeedirectorcompensation

•Administerclawbackpolicies providingforrecoupmentofincentivecompensationdetermined tohavebeenerroneouslyreceivedbyexecutiveofficersorotherAIPorLTIrecipients

MEMBERSPRIMARYRESPONSIBILITIES

WilliamWagner(Chair)

BradleyAlford

PatrickSiewert

AllsatisfyNYSEindependence standards

MEETINGS

2025meetings:7

Attendance:100%

•RegularlyreviewBoardcompositionandconductdirectorsuccessionplanning, including identifyingpotentialnewBoardmembersand recommendingdirectornominees/appointees

•AnnuallyconsiderBoardleadershipstructure andrecommendwhethertoseparateor combinepositionsofChairmanandCEO,aswellasLeadIndependentDirectorifChairmanis notindependent

•RecommendBoardandCommitteestructure,Chairsandmembers

•Recommendindependentdirectors basedonNYSEindependencestandards

•Reviewand approverelatedpersontransactions

•OverseeannualBoard/Committeeperformanceevaluation andbiannualindividualdirector feedbackprocess

•ReviewGovernanceGuidelines andrecommendchangesthereto,aswellastoourCharterand Bylaws

•Reviewandprovide oversightofgovernance,environmentalsustainabilityandcommunity investmentinitiatives,policiesandpractices

•Reviewstockholderengagementprocess,resultsandfeedbackrelatedtogovernance, environmentalsustainabilityandcommunityinvestment

•Reviewstockholderproposals

•OverseeV&EprogramandCodeofConduct,evaluatesignificantconflictsofinterestandmake determinationsregardingcertainCodeofEthicsviolations

InadditiontotheabovecommitteesrequiredbySECrulesandNYSElistingstandards,ourBoardhasaFinance CommitteeandaCybersecurityCommittee.Undertheirrespectivecharters,atleastonememberoftheFinance CommitteemustbeindependentandatleasttwomembersoftheCybersecurityCommitteemustbeindependent; currently,twoofthefourFinanceCommitteemembersareindependentandtwoofthethreeCybersecurityCommittee membersareindependent.

MEMBERSPRIMARYRESPONSIBILITIES

MitchellButier(Chair)

WardDickson

PatrickSiewert

DeonStander

MEETINGS

2025meetings:3

Attendance:100%

Conductfinanceoversightresponsibilities,includingreviewingandmakingrecommendationsto ourBoardregarding:

•Capitalstructure inlightofourfinancialplans,currentoperationsandlong-termstrategies

•Capitalallocationstrategy,includingstockholderdividends,stockrepurchasesandfinancial capacityforsignificanttransactionssuchasstrategicinvestments,acquisitionsanddivestitures

•Financingplans,includingequity,debtorothersecuritiesofferingsandprivateplacementsthat maymateriallyimpactourfinancialposition

•Pensionplanfundingstatus

MEMBERSPRIMARYRESPONSIBILITIES

WilliamWagner(Chair)

MitchellButier

WardDickson

FormedJanuary2026

Conductcybersecurityriskmanagementoversightresponsibilities,includingmaking recommendationstoourBoardregarding:

•Cybersecuritygovernance,strategyandsignificantinitiatives,includingalignmentwith businessstrategiesandpriorities,marketpracticesandlessonslearnedfromnotableincidents affectingothercompanies

•Capabilitiesandeffectivenessorcybersecurityriskmanagementprogram,includingits integrationandalignmentwithenterpriseriskmanagement,andplans,policies,practicesand controlsrelatedtoinformationsecurity,includingimpactofartificialintelligence;preventionand detectionofcybersecurityevents;incidentresponse;anddisasterrecoveryandbusiness continuity

•Systemsandprocedurestocollect,create,use,maintain,processandprotectanypersonal information ofcustomers,employeesandbusinesspartners

•Keylegislativeandregulatorydevelopments intheU.S.andinternationaljurisdictionsthat couldmateriallyimpactcybersecurityriskandstrategy

•Keyperformanceindicators relatedtocybersecuritypreparedness

EXECUTIVESESSIONS

OurBoardbelievesitisimportanttohaveseparateexecutivesessionswithMessrs.ButierandStander,aswellas withMr.Butieronly,eachofwhichwasheldatall2025Boardmeetings.Inaddition,theindependentdirectorsonour BoardmeetatleastonceperyearandasoftenasneededtodiscusstheperformanceofourChairmanandourCEO, managementasawholeandourcompany.AsLeadIndependentDirector,Mr.Siewertpresidesoverexecutivesessions ofindependentdirectors.

OurBoardbeginsitsmeetingswithoneofatleasttwoexecutivesessionswithMessrs.ButierandStanderto discusskeyfocusareasandframemeetingdiscussions;thelastofthesesessionsprovidedtimefortheBoardto reflectandalignonkeypriorities,afterwhichournon-managementdirectorsmeetinexecutivesession.

Executivesessionswerealsogenerallyscheduledorheldforregular2025Boardcommitteemeetings.These sessionsexcludemembersofmanagementunlessthecommitteerequestsoneormoreofthemtoattendaportionto provideadditionalinformationorperspective.

RISKOVERSIGHT

Managementisresponsibleformitigatingtheday-to-dayrisksconfrontingourbusinesses,andourBoardoversees enterpriseriskmanagement(ERM).Inperformingitsoversightrole,ourBoardensuresthattheERMprocessesdesigned andimplementedbymanagementarefunctioningeffectivelyandpromotingrisk-adjusteddecision-making.Theteams leadingourbusinesseshaveincorporatedERMintotheirstrategicdevelopmentandexecution,assessingtherisks impactingtheirbusinessesandimplementingandadjustingmitigatingactionsonanongoingbasis.Inaddition,in consultationwithourriskmanagementteamandseniormanagement,they semiannuallyprepareriskprofiles consistingofaheatmap;summariesofkeyrisksandmitigatingstrategies;identifiedCompanyLeadershipTeamand business/functionalownerstoensureaccountabilityforriskmitigation;abilityofrisktransfer;whethertheriskis increasing,decreasingorconsistentwithprioryear;andprior-andcurrent-yearriskimpactandlikelihood.These profilesareusedtoprepareacompanyriskprofilebasedonidentifiedbusinessrisksaswellasenterpriserisks.Identified riskswiththepotentialtohavemoresignificantimpactattheenterpriselevelin2025includedthemacroeconomic environment,inparticulartariff-relateduncertainty,andcybersecurity.

WecontinuallyadvanceourERMprogram,withoversightfromourBoard.In2025,enhancementsincluded narrowingfocustothekeymitigatingstrategiesforeachrisktofocusmanagementattentiononhigherimpact prioritiesandhavingone-on-onediscussionswithriskandmitigatingstrategyownerstodocumentprogressand furtherdriveleadershipaccountability.

Wehaverobustprocessesthatsupportastronginternalcontrolenvironmentandpromotetheearlyidentification andongoingmitigationofrisks.Ourlegalandcompliancefunctions,includingourChiefComplianceOfficer,reportinto ourCLOtoprovideindependentevaluationofthechallengesfacingourbusinessesandourInternalAuditleaderreports totheAuditCommitteeintheconductofhisoperationalresponsibilities,helpingensurehemaintainsindependencefrom management.

OurBoardasawholeoverseesrisksrelatedtoourfive-yearstrategicplanhorizon,exercisingthisresponsibilityby consideringtherisksrelatedtomanagement’sstrategiesandexecutionplans. OurBoardreceivesareportontheERM processandtheresultingcompanyriskprofileatleastannually,engagingthroughouttheyearwithmanagementon keyrisksinitsdiscussionsofourbusinessstrategiesandperformance. Executiveswholeadvariousriskareas–such aslaw,informationtechnology,tax,compliance,sustainability,talentmanagementandcommunityinvestment–report periodicallytoBoardcommitteesandoccasionallytoourfullBoard.

Asshownbelow,ourBoardhasdelegatedelementsofitsriskoversightresponsibilitytoitscommitteestomore efficientlycoordinateriskmitigationwithmanagement.OurBoardreceivesreportsfromtheCommitteeChairsregarding topicsdiscussedatcommitteemeetings,includingtheareasofrisktheyprimarilyoversee,andengagesonriskmitigation duringitsregularengagementwithourbusinessandfunctionalleaders.

•Businessstrategies

•Corporategovernance

RISKOVERSIGHT BoardofDirectors

•Acquisitions,divestituresandothersignificanttransactions

•Annualoperatingplanandsignificantfixedandinformationtechnologycapitalexpenditures

•Enterpriseriskmanagement

•Artificialintelligence

Audit Committee Compensation Committee Governance Committee

•Financialreporting processesand statements,and internalcontrols

•Certainlegal, complianceand regulatorymatters

•Executive compensationand successionplanning

•AIPandLTIplans

•Leadership compensation, benefits,and recruitingand retention

•Clawbackpolicies

•Non-employee director compensation

•Socialsustainability

•Board/Committee structureandcomposition

•Directorsuccession planning

•Governanceand stockholderrights/ proposals

•Environmental sustainability

•Communityinvestment

•V&E/CodeofConduct

•Relatedperson transactions

•Certainlegal,compliance andregulatorymatters

Finance Committee Cybersecurity Committee

•Capitalstructure andallocation strategy

•Financingplans

•Pensionplan fundingstatus

•Cybersecurity governance, strategyand initiatives

•Cybersecurityrisk management programcapabilities andeffectiveness

•Systemsand proceduresto protectpersonal information

TheAuditCommitteeoverseesourinternalcontrolenvironmentandtheeffectivenessofourinternalcontrols. Supplementingtheseprocesses,theAuditCommitteemeetsregularlyinexecutivesessionwitheachofourCFO,Internal Auditleader,andrepresentativesofourindependentregisteredpublicaccountingfirm,andasneededwithother membersofseniormanagement.TheGovernanceCommitteemeetssemiannuallywithourChiefComplianceOfficerto discuss,amongotherthings,significantinternalinvestigations.

During2025,ourBoardwasparticularlyfocusedonoverseeingmanagement’smitigationoftheriskareasdescribed below.

2025RISKFOCUSAREAS

• Navigatingdynamicenvironmentwithelevatedmacroeconomicandgeopoliticaluncertaintydrivenbytradetensionsand tariffs –Continuallymonitoringdevelopments,updatingscenarioplansandexecutingmitigatingactionsasappropriate

• Strengtheningouroverallportfolio –Increasingourexposuretohigh-valuecategoriesbyacceleratinginorganicportfolioshift throughacquisitionsofcompaniesforwhichwewouldbeahigh-valueowner,asdemonstratedbyouracquisitionofTaylor Adhesives

• Acceleratinginnovationoutcomesinhigh-valuecategories,sustainabilityanddigital –Refiningourinnovationroadmaps, investingtofuture-proofpressure-sensitivelabelingasadecorationtechnologyofchoice,andadvancingdigitalskillsand capabilitiesacrossourcompany,includingwiththehireofChiefDigitalOfficer

• Addressingimpactofunevenintelligentlabelsadoption –Executingkeyprojectsinpipeline,acceleratingadoptionincurrentand emergingmarketsegments,andimprovingoperationalexecution

• Connectingphysicalitemswithdigitalidentities –Enablingproducts,solutionsandplatformsinexistingandnewsegmentsto achieveourvision

• Expandingorganizationalcapabilityandtargetedcollaboration –Increasingdifferentiation,drivingorganichigh-valuecategory growthandstructurallyreducingcosts

• Respondingtoevolvingimpactofkeymegatrendsimpactingourbusinesses –Anticipatingpositiveimpactsofdigitization/ artificialintelligenceandtransformationofretailandpotentiallynegativeimpactsofcontinuedgeopoliticalandmacroeconomic uncertaintyanddemographicshifts

• Managingincreasinglyde-globalizedworld –Adjustingcapitalallocationstrategiestoensurecapacityingrowingcountriesand regions,localizingcapacitytoprimarilyserveintra-countrydemandwherepossible,andrebalancingmanufacturinganddistribution networktomitigateimpactoftariffsandincreaseagility

RisksAssociatedwithCompensationPoliciesandPractices

TheCompensationCommitteeannuallydiscusseswithmanagementanditsindependentcompensationconsultant whetherourexecutivecompensationprogramismeetingthecommittee’sobjectives.Inaddition,theCompensation Committeeperiodicallyengagesitscompensationconsultanttoundertakeamoreformalriskassessmenttoensurethat ourprogramdoesnotprovideincentivesthatencourageexcessiverisk-taking. Thecommitteemostrecentlyconducted thisevaluationin2024basedonanassessmentbyitsthencompensationconsultant,WTW,andplanstonext conducttheevaluationwithitsnewcompensationconsultant,SemlerBrossy,inFebruary2027,whichwillincludean assessmentoftherevised2026executivecompensationprogram. See PreviewofRevised2026Executive CompensationProgram intheCD&Asectionofthisproxystatementformoreinformation.

Withrespecttoourexecutivecompensationprogramthrough2025,theCompensationCommitteehasnotedthekey risk-mitigatingfeaturesdescribedbelow.

RISK-MITIGATINGFEATURES

✓ CompensationCommitteehasdiscretiontodecreaseAIPandLTIawardstopenalizepotentiallyriskyactions

✓ Clawbackpolicyrequiresrecoupmentofcertainincentive-basedcompensationtoexecutiveofficersifweare requiredtoprepareaccountingrestatementtocorrectmaterialnoncompliancewithanyfinancialreporting requirement;inaddition,allAIPandLTIrecipientsaresubjecttocompensationclawbackinconnectionwith financialrestatementinvolvingfraudormisconduct

Governanceand Oversight

✓ Incentivecompensationplanstructureandtargetsreviewedwithincontextofmarketpractices,tiedtoannual businessplansandcompanygoals,andapprovedbyCompensationCommittee

✓ CompensationCommitteeannuallyevaluatesCEO/seniorexecutiveperformanceagainststrategic,financialand sustainabilitygoals

✓ Officersprohibitedfromhedgingorpledgingcompanystockandrequiredtoengageinstocktransactionsonly duringlimitedtradingwindows

✓ Focusonincentingstockholdervaluecreation,balancedbyretentionandotherconsiderations

✓ Incentivecompensationdesignedtodeliverstrongannualfinancialperformanceandlong-termeconomicand stockholdervaluecreation,balancedgrowthandefficientcapitaldeployment

PayPhilosophy andStructure

Incentive ProgramDesign

✓ Majorityofleadershipcompensationdeliveredinlong-termequity-orcash-basedawardstomotivatepursuitof superiorperformanceandsustainablegrowth

✓ Rigorousstockownershippolicywithminimumownershiprequirementof6xforCEO;requiresnetshares acquiredtoberetaineduntilcomplianceisachievedandpre-transactioncertificationstoensurecontinued compliance

✓ Executiveseveranceplansconsistentwithmarketpractices,withdouble-triggerchangeofcontrolbenefitsonly formostseniorNEOs

✓ AIPandLTIawardsincentachievementofannualfinancialgoalsandlong-termeconomicandstockholdervalue creation,usingmultipleperformanceobjectivescoveringdifferenttimeperiods

✓ AIPawardsnotguaranteed,withbelow-thresholdperformanceresultinginzeropayout,paymentssubjectto overallcapof200%andNEOindividualmodifiersgenerallycappedat100%

✓ Equityawardsfullyperformance-based,usingmultipleperformanceobjectives,vestingovermultipletime horizonsandsubjecttothresholdandmaximumpayoutopportunities

•PUscliff-vestatendofthreeyearswithpayoutforrelativeTSRcomponentcappedat100%oftargetif absoluteTSRisnegative

•MSUsvestoverone-,two-,three-andfour-yearperformanceperiods(averageperformanceperiodof2.5years), withthresholdperformanceatabsoluteTSRof(15)%andtargetperformanceatabsoluteTSRof10%

Givenitsassessedlowriskineachofthesecategoriesandotherfactors,WTWadvisedtheCompensation Committeethatourexecutivecompensationprogramstrikesanappropriatepay-riskbalanceanddoesnotpresentriskrelatedconcerns.

TheCompensationCommitteehasconcludedthatourcompensationpoliciesandpracticesdonotcreaterisks thatarereasonablylikelytohaveamaterialadverseeffectonourcompany.

DIRECTOREDUCATION

InitialOrientation

Ourdirectororientationmaterialsanddiscussionswithmanagementgenerallycoverour(i)stakeholders,values,and financialgoalsandresults;(ii)businessandcompanystrategies,risksandmitigatingactions,includinghistoricalcontext; (iii)sustainabilitygoals,prioritiesandprogress;(iv)companyleadershipandrecentBoard/Committeemeetings;(v)Board, governanceandcompanypolicies,includingourGovernanceGuidelines,Committeecharters,conflictofinterestpolicy, non-employeedirectorcompensationprogram,insidertradingpolicy,stockownershippolicyandCodeofConduct;and (vi)investorpresentations,SECfilingsandsustainabilityreporting.

Inconnectionwithhis2025appointmenttoourBoard,weprovidedMr.Flitmanwithinformationregarding thesematters.OurChairman,CEO,CorporateSecretaryandothermembersofmanagementmetwithhimto discussthesematerialsandhelpensureasmoothinitialonboarding.Mr.Flitmanalsovisitedmanufacturing facilitiesinIndianaandOhiowithourCEOandMaterialsPresidentandjoinedasanobserverinselectBoard committeemeetings.

ContinuingEducation

Ourongoingdirectoreducationprogramconsistsofregularinteractionswithandpresentationsfrommembersof managementregardingourbusinesses,strategiesandfinancialperformance,aswellasperiodicvisitstoourfacilities.

OurBoardvisitedsitesinMalaysiaandVietnam,touringourmanufacturingandR&Dfacilitiesandmeetingwith leadersofourAsiaPacificMaterialsandSolutionsbusinesses,inDecember2024;metwithleadersbasedatour headquartersinOhioinOctober2025;andplanstovisitMaterialsandSolutionsmanufacturingfacilitiesinFrance andItaly,respectively,andmeetwiththeirleadersintheEurope,MiddleEastandNorthAfricaregionduringthefirst halfof2026.

Weprovidedirectorswithaccesstoaboardroomnewsresourceplatformforthemtokeepinformedofregulatory developmentsandmarketpractices,andreimbursedirectorswhoattendcontinuingdirectoreducationprogramsforfees andrelatedexpenses.

BOARDANDCOMMITTEEEVALUATIONS

TheGovernanceCommitteeoverseesanannualperformanceevaluationofourBoard,Chairman,LeadIndependent DirectorandBoardcommittees,includingtheCommitteeChairs.OurBoardviewstheevaluationprocessasintegralto assessingitseffectiveness,identifyingopportunitiesforimprovementandcontinuallyenhancingBoardperformance.

TheGovernanceCommitteemaintainsaseparatebiannualprocessfordirectorstoprovideanonymizedindividual feedbackontheirpeerstoadvancecontinuousimprovementandassistwithBoardsuccessionplanning,whichwas mostrecentlyconductedinMarch2025. ThesummarybelowfocusesonthebroaderBoard/Committeeevaluation process.

2025BOARDEVALUATIONPROCESS Process

•WrittenevaluationsofandcommentsregardingBoard/Committee

•Composition,includingbalanceofskills,qualifications,andindustryandfunctionalexperience

•Meetingmaterials

•Meetingmechanicsandstructure

•Fulfillmentofresponsibilities

•Meetingcontentandconduct

•Overallperformance

•EffectivenessofChairman,LeadIndependentDirectorandCommitteeChairs

•Open-endedquestionsregardingkeyareasofBoardfocusandadjustmentstoprocessesimplementedbasedonpriorevaluations

•One-on-onediscussionswithGovernanceCommitteeChairtoprovideadditionalverbalfeedback ReviewofResults

•Discussionofwrittenevaluationresults,verbalfeedbackandpotentialimprovementopportunities

•Chairman,LeadIndependentDirector,GovernanceCommitteeChairandCEO

•GovernanceCommittee

•BoardinexecutivesessionwithChairmanandCEO

•Audit,CompensationandFinanceCommitteesinexecutivesession

RecentImprovementActions

•Enhanced directorsuccessionplanningwithsignificantBoardrefreshment,mitigatingdeparturesofthreelonger-tenured directorsinlasttwoyearsbyappointingMs.Mejia,Mr.DicksonandMr.FlitmantoourBoardinFebruary2024,June2024 andJuly2025,respectively;implementingbiannualindividualdirectorfeedbackprocesstoadvancecontinuousdirector developmentandassistwithsuccessionplanning;pausingsearchfornewdirectorsgivencurrentBoardsize,broadmixof skills,qualificationsandexperience,andsignificantrecentBoardturnover;andincreasingmandatoryretirementagefrom72 to75consistentwithcurrentmarketpracticestopreventprematurelossofexperienceddirectorsgivenproportionof shorter-tenureddirectors

•Executed ExecutiveChairmantransition tonon-executive/non-employeestatuswithinanticipatedtimeframeforrole

•Heightenedfocusonstrategicprioritiesof IntelligentLabelsprojectpipeline,digitalsolutions and sustainability-related innovation,aswellas cybersecurityriskmanagement,formingstandaloneCybersecurityCommitteetoheightenfocuson keyriskandenablegreatertimeforAuditCommitteetofocusoncoreresponsibilities,andaligningonoversightofrisksand opportunitiespresentedbyartificialintelligenceprimarilybyfullBoard

•Expandeddiscussionof M&Apipelineandpotentialtargets,aswellasperformanceofacquiredcompaniesandintegration learnings,includingmorefrequentFinanceCommitteeengagementbymanagementtoassesspotentialacquisitionsand alignonkeymatterstobediscussedwithfullBoard

•Sharpenedfocuson executivesuccessionplanning andleadershipdevelopment,appointingMaterialsPresidentin2024 andIntelligentLabelsPresidentin2025

•Refined Boardscheduleandmeetingprocess,conductingcertainCommitteemeetingsvirtuallytomaximizetimefor in-personfullBoardengagementandholdingmostBoardmeetingsatornearcompanyoffices/facilitiestoenablemore engagementwithleadersbelowseniormanagement

•Increased Chairman,CEOandLeadIndependentDirectorengagement withdirectorsbetweenmeetingsandmoretime dedicatedtoexecutivesessionsoffullBoardandnon-managementdirectorstoenhanceBoard-onlyengagement

STOCKHOLDERENGAGEMENT

Wevaluefeedbackonourgovernanceprogramandactivelysolicitinputthroughstockholderengagementtoensure ourpracticesreflectnotonlyourevolvingbusinessstrategiesbutalsotheexpectationsofourstakeholders.This supplementalengagementprogramandthefeedbackwereceivedongovernancemattersaredescribedintheproxy summary.

CONTACTINGOURBOARD

OurBoardwelcomesfeedbackfromourstakeholdersandotherinterestedparties.Wereviewallcorrespondence receivedfromstockholders,discussingfeedbackreceivedwithseniormanagementand/orourBoardasappropriate. StockholdersandotherinterestedpartiesmaycontactourBoard,Chairman,LeadIndependentDirector,anyCommittee ChairoranyotherindividualdirectorconcerningbusinessmattersbywritingtoBoardofDirectors(orparticularBoard subgrouporindividualdirector),c/oCorporateSecretary,8080NortonParkway,Mentor,Ohio44060.

PROPOSAL1–ELECTIONOFDIRECTORS

OurGovernanceGuidelinesprovideforaBoardofbetweeneightand12directorsandourBylawsrequirethe numbertobefixedbyresolutionofourBoard.OurBoardhasfixedthecurrentnumberofdirectorsatten.Eachofour nomineesispresentlyservingonourBoardandhasconsentedtobeingnamedinthisproxystatementandservingif electedbystockholders.Allnomineesarestandingforelectionforaone-yeartermendingatthe2027AnnualMeeting.

MajorityVotingStandard;UnelectedDirectorResignationRequirement

Invotingfortheelectionofdirectors,eachsharehasonevoteforeachpositiontobefilledandthereisnocumulative voting.OurBylawsprovidefortheapprovalbyamajorityofvotescastfortheelectionofdirectorsinuncontested electionssuchasthisandrequirethatanyincumbentdirectornotreelectedtenderhisorherresignationfromourBoard. OurBoard,excludingthetenderingdirector,wouldberequiredtodeterminewhethertoaccepttheresignation–taking intoaccounttherecommendationoftheGovernanceCommitteeandanyotherfactorsitconsidersappropriate–and publiclydiscloseitsdecisionandrationalewithin90daysfromthedateelectionresultsarecertified.

BoardRecommendation

OurBoardrecommendsthatyouvoteFOReachofourtendirectornominees.

Thepersonsnamedasproxieswillvotefortheirelection,unlessyouspecifyotherwise.Ifanydirectornomineewere tonolongerbeabletoserve,yourproxywouldbevotedforasubstitutenomineedesignatedbyourBoardorwewould decreasethesizeofourBoard.

SELECTIONOFDIRECTORNOMINEES

DirectorsareannuallyrecommendedbytheGovernanceCommitteefornominationbyourBoardandelectionbyour stockholders.NewdirectorsmayalsoberecommendedbytheGovernanceCommitteeforappointmenttoourBoard, withtheirelectionbystockholderstakingplaceatthenextAnnualMeeting.TheDirectorMatrixintheproxysummary showsthebalancedmixofindustryexperience,functionalexperienceanddemographicsonourBoard.

Inevaluatingwhethertorecommendaneworincumbentdirectornominee,theGovernanceCommitteeprimarily considersthecriteriadescribedbelow.

• Independence,toensureasubstantialmajorityofourBoardisindependent

• U.S.publiccompanyleadershipand/orBoardexperienceandworkinmultipleregions,aswellas industry experience,ineachcaseconsideringfactorssuchassize,scopeandcomplexity

• Boardservice atotherU.S.publiccompanies

• Experienceinfinance,accountingand/orexecutivecompensation,aswellasinotherfunctionalareassuch asmarketing,M&A,environmentalsustainability,cybersecurity,andscience/engineering/R&D

•Forincumbentdirectors, Board/Committeeengagementandeffectiveness,meetingattendance,compliance withourstockownershippolicy,andmandatoryretirementdate

• Timecommitments,includingserviceonotherboards;directorswhoarepubliccompanyexecutiveofficers maynotserveonmorethanoneotherU.S.publiccompanyboard

•Potential conflictsofinterest

•Abilitytocontributetoour governanceandsustainability priorities

• Overallcandidateprofile;whenevaluatingnewnominees,thecommitteeseekstoconsider(andasksany searchfirmengagedtoprovide)aslateofcandidateswithamixof,amongotherthings,qualifications,skills, industryandfunctionalexperience,anddemographicbackgrounds

TheGovernanceCommitteereviewstheprofileofanycandidatewiththoseofourcurrentdirectorstoensureour Boardhasabroadmixofskills,experiencesandviewpoints.Sourcesforidentifyingpotentialnomineesincludecurrent Boardmembers,seniormanagement,executivesearchfirmsandinvestors.

TheGovernanceCommitteeregularlyreviewsthecompositionofourBoardandconductsdirectorsuccession planningtoensurethatourBoardcontinuestomeettheneedsofourbusinesses,effectivelyoverseemanagement inexecutingourstrategiesandadvancetheinterestsofourstakeholders.BoththecommitteeandourfullBoard discusseddirectorsuccessionplanningatmultiplemeetingsduringthefirsthalfof2025inconnectionwiththe searchforoneormoreindependentdirectorswithpubliccompanyboardexperience,globalfood,logisticsand/or supplychainexpertise,and/orsubstantialcompensation,talentmanagementandexecutivesuccessionplanning experience,whichculminatedinMr.FlitmanbeingappointedtoourBoardinJuly2025.

StockholderSubmissionofDirectorNominees

TheGovernanceCommitteeconsidersstockholdernomineesonthesamebasisasitconsidersallothernominees.

AdvanceNoticeNominees

Stockholdersmayrecommenddirectorcandidatesbysubmittinghisorhername,biographicalinformation, professionalexperience,writtenconsenttonominationandtheotherinformationrequiredbyourBylawstoour GovernanceCommitteeChair,c/oCorporateSecretary,8080NortonParkway,Mentor,Ohio44060.Tobeconsideredat the2027AnnualMeeting,advancenoticestockholdernominationsmustcomplywiththedeadlinesandother requirementsdescribedintheVotingandMeetingQ&Asectionofthisproxystatement.

ProxyAccessNominees

Astockholder,oragroupofnomorethan20stockholders,owningatleast3%ofourcompany’sstockcontinuously foratleastthreeyearsispermittedtosubmitdirectornominees(upto20%oftheBoard)forinclusioninourproxy materials,subjecttothedeadlinesandotherrequirementsdescribedinourBylaws.Forinformationonsubmittingproxy accessnomineesforthe2027AnnualMeeting,refertotheVotingandMeetingQ&Asectionofthisproxystatement.

BOARDREFRESHMENTANDDIRECTORSUCCESSIONPLANNING

OurBoard’songoingdirectorsuccessionplanningisdesignedtoensureanindependent,well-qualifiedandeffective Board.

TheGovernanceCommittee’slong-termobjectiveistobalanceregularBoardrefreshmentwithstability;achieve amoreevendistributionofnewerdirectors,medium-tenuredirectorsandlonger-servingdirectors;andensure accesstoabroadnewdirectorcandidatepool.

Tenure

OurBoarddeterminesitsrefreshmentpoliciesinlightofourevolvingstrategiesandfinancialposition,exercisingits discretioninthebestinterestofourcompanyandstockholders.OurGovernanceGuidelinesprovidethatdirectorsarenot subjecttotenurelimits.WhiletenurelimitscouldhelpensureregularBoardrefreshment,theycouldalsoresultinthe prematurelossofadirectorwhooveralongerperiodoftimehasgainedvaluableexperienceandissignificantly contributingtoourBoardandcompany.Withthedepartureofthreelonger-tenureddirectorsinthelasttwoyears, only twoofourdirectorshaveservedmorethan15years

PoliciesSupportingRegularBoardRefreshment

OurBoardhasthepoliciesdescribedbelowtofacilitateregularrefreshment,withanyeventimpactingourdirector nomineesoccurringatorsincethe2025AnnualMeetingshownbelow.

POLICYDESCRIPTIONEVENTSOCCURRINGAT/SINCE2025ANNUALMEETING

Mandatory ResignationPolicy

Mandatory RetirementPolicy

ResignationTendered UponChangein PrincipalEmployment

PriorNotice

Requirement toPrevent Overboarding

Incumbentdirectorsnotelectedby stockholdersmusttendertheir resignation

Directorsmustretireondateofannual meetingofstockholdersthatfollows theirreachingage72(changedtoage 75inFebruary2026)

Directorswhochangetheirprincipal occupation,positionorresponsibility mustvolunteertoresign

Directorsmustgivepriornoticebefore acceptinganotherU.S.publiccompany directorshipsothathis/herabilitytofulfill Boardresponsibilitiesmaybeevaluated ifhe/sheservesonmorethanfourother suchboards

Allincumbentdirectorsstandingforelectionwereelectedat the2025AnnualMeeting

Nodirectorsweresubjecttomandatoryretirementatthe 2025AnnualMeeting

Nodirectorschangedtheirprincipaloccupation,positionor responsibilitysincethe2025AnnualMeeting

NodirectorsjoinedanotherU.S.publiccompanyboardsince the2025AnnualMeeting,exceptthatMr.Alfordjoinedthe boardofLambWestonasitschairmaninJuly2025, transitioningtoitsleadindependentdirectorinFebruary2026

UpontherecommendationoftheGovernanceCommittee,Ms.MejiaandMessrs.DicksonandFlitmanwere appointedtoourBoardasindependentdirectorsinFebruary2024,June2024andJuly2025,respectively.ThreelongertenureddirectorsdepartedfromourBoardduring2024.Thisrecentexperiencewithindividualsbothjoiningand departingourBoarddemonstrateregularrefreshment.

BOARDCOMPOSITION

Asshownbelow,ourBoardreflectsabalancedmixofindustryexperience,functionalexperienceanddemographics.

2026DIRECTORNOMINEES

Thefollowingpagesprovideinformationonour2026directornominees,includingtheirage,servicecommencement, independence,currentBoardrolesandbusinessexperienceduringatleastthepastfiveyears.Wealsoindicatethename ofanyotherU.S.publiccompanyboardonwhichtheycurrentlyserveorhaveservedduringthepastfiveyears.

Foreachnominee,wepresentselectskillsandqualifications,whichincludesU.S.publiccompanyleadershipand/or boardexperience,industryandfunctionalexperience,andworkinmultipleregions.Alldirectornomineeshave demonstratedtheabilitytofulfillthetimecommitmentsnecessarytoserveonourBoardandadvancethelong-term interestsofourstockholders,aswellasthoseofourotherstakeholders.

Age69

DirectorsinceApril2010

Independent

Age54

DirectorsinceApril2016

NotIndependent

BRADLEYA.ALFORD

RECENTBUSINESSEXPERIENCE

NestléUSA,anutrition,healthandwellness company

•Chairman&CEOfromJanuary2006to October2012

NestléBrandsCompany,anoperatingunitof NestléUSA

•President&CEOfrom2003toDecember 2005

BOARDROLES

CompensationCommitteeChair GovernanceCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

LambWestonHoldings,Inc.

PerrigoCompanyPLC

PastFiveYears: None

MITCHELLR.BUTIER

RECENTBUSINESSEXPERIENCE

AveryDennisonCorporation

•Non-executiveChairmansinceApril2025

•ExecutiveChairmanfromSeptember2023to April2025

•Chairman&CEOfromMarch2022toAugust 2023

•Chairman,President&CEOfromApril2019 toFebruary2022

•President&CEOfromMay2016toApril 2019

•President&COOfromNovember2014to April2016;continuedservingasCFOuntil March2015

•SVP&CFOfromJune2010toOctober2014

•VP,GlobalFinance&CAOfromMarch2007 toMay2010

BOARDROLES

Chairman

FinanceCommitteeChair

CybersecurityCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current: None

PastFiveYears: None

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyboardexperience

•Concurrentserviceontwootherboardsand priorserviceonotherboards

Industryexperience

•Technicalexpertiseinconsumergoods industryintowhichourSolutionsGroupsells, with40+yearsinrolesofincreasing responsibility,aswellassupervisory experienceinpackaging,primarilyfocusedon consumergoods

Functionalexperience

•Technicalexpertiseinmarketing,aswellas supervisoryexperienceinfinance,M&Aand R&DasregionalCEO

Workinmultipleregions

•HasworkedintheU.S.andOceania

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•Heldrolesofincreasingresponsibilityatour company,includingCFO,COOandCEO

Industryexperience

•Servedinpositionsofincreasing responsibilityinwhatisnowourMaterials Group,gainingtechnicalexpertisein packagingandsupervisoryexperiencein digital/technology,materialsscienceand industrialgoods

Functionalexperience

•Technicalexpertiseinfinance,havingserved asCAOandCFO,andenvironmental sustainabilityhavingadvancedour sustainabilitygoalsandvalue-creation opportunitiesasCEO

•Supervisoryexperienceinmarketing,M&A, cybersecurityandR&DasCEO

Workinmultipleregions

•HasworkedintheU.S.andEurope

Age63

DirectorsinceJune2024

Independent

Age61

DirectorsinceJuly2025

Independent

WARDH.DICKSON

RECENTBUSINESSEXPERIENCE

WestRockCompany,apaperandpackaging solutionscompany(includingpredecessorRockTennCompany)

•ExecutiveVicePresident&CFOfrom September2013toNovember2021

BOARDROLES

AuditCommitteeChair

FinanceCommitteeMember

CybersecurityCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

AmerenCorporation

PastFiveYears: None

DAVIDE.FLITMAN

RECENTBUSINESSEXPERIENCE

USFoodsHoldingCorp.,afoodservicedistributor

•CEOsinceJanuary2023

BuildersFirstSource,Inc.(includingpredecessor BMCStockHoldings),amanufacturerandsupplier ofbuildingmaterials

•CEOfromSeptember2018toDecember 2022

PerformanceFoodGroupCompany,afoodservice distributor

•CEO,PerformanceFoodservice,fromJanuary 2015toSeptember2018

BOARDROLES

CompensationCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

USFoodsHoldingCorp.

PastFiveYears:

BuildersFirstSource,Inc. VeritivCorporation

ANDRESA.LOPEZ

RECENTBUSINESSEXPERIENCE

O-IGlass,Inc.,aglasscontainermanufacturerand supplier

•President&CEOfromJanuary2016toMay 2024

•COO&President,GlassContainers,from January2015toDecember2015

•President,O-IAmericas,fromJuly2014to July2015

•President,O-ILatinAmerica,fromApril2009 toJuly2014

BOARDROLES

AuditCommitteeMember

CompensationCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current: None

PastFiveYears:

O-IGlass,Inc.

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•ServedasCFOofcompanythenwith $18.7billioninannualrevenuesand~50K employees

U.S.publiccompanyboardexperience

•Concurrentserviceononeotherboard

Industryexperience

•Technicalexpertiseinpackagingindustry servedbyourMaterialsGroup,aswellas supervisoryexperienceinmaterialsscience andindustrialgoods

Functionalexperience

•TechnicalfinanceexpertiseasCFOand supervisoryexperienceinM&A

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•Leadscompanywith$39.4billioninannual revenuesand~30Kemployeesin2025

U.S.publiccompanyboardexperience

•Concurrentserviceononeotherboardand priorserviceonotherboards

Industryexperience

•Technicalexpertiseinindustrialgoodsas formerCEOofbuildingmaterialscompany

•Supervisoryexperienceinmaterialsscience asleaderinmultiplerolesatchemical company

Functionalexperience

•TechnicalexpertiseinM&Aandscience/ engineering/R&D,aswellassupervisory experienceinfinance,marketing, environmentalsustainabilityand cybersecurityasCEO

Workinmultipleregions

•HasworkedintheU.S.andEurope

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•Ledcompanythenwith$6.5billionin revenuesand~21Kemployees

U.S.publiccompanyboardexperience

•Priorserviceonotherboards

Industryexperience

•Technicalexpertiseinpackaging,aswellas supervisoryexperienceinmaterialsscience andindustrialgoods,asformerleaderof glasscompany,ineachcasecomplementing ourMaterialsGroup

Functionalexperience

•Technicalexpertiseinenvironmental sustainability,aswellassupervisory experienceinfinance,marketing,M&A, cybersecurityandR&DasCEO

Workinmultipleregions

•HasworkedintheU.S.andLatinAmerica

Age62

DirectorsinceFebruary2024

Independent

Age54

DirectorsinceFebruary2023

Independent

Age70

DirectorsinceApril2005

Independent

MARIAFERNANDAMEJIA

RECENTBUSINESSEXPERIENCE

NewellBrandsInc.,aconsumergoodscompany

• CEO,International,fromFebruary2022to February2023

KelloggCompany,afoodmanufacturingcompany

• SVPandPresident,LatinAmerica,from November2011toFebruary2020

BOARDROLES

AuditCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current: None

PastFiveYears: GroceryOutlet,Inc.

FRANCESCAREVERBERI

RECENTBUSINESSEXPERIENCE

TrinseoPLC,aspecialtymaterialssolutions provider

•SVP,EngineeredMaterialsandPlastics Solutions,sinceOctober2024

•SVP,EngineeredMaterials&Chief SustainabilityOfficer,fromAugust2023to September2024

•SVP,SustainablePlastics&Chief SustainabilityOfficer,fromJuly2021toJuly 2023

•SVP,EngineeredMaterials&Synthetic Rubber,fromMarch2020toDecember2021

•GeneralManager,EngineeredMaterials,from October2019toMay2021

BOARDROLES

CompensationCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

None

PastFiveYears: None

PATRICKT.SIEWERT

RECENTBUSINESSEXPERIENCE

RestaurantBrandsInternationalInc.,afastfood holdingcompany

•Non-executiveChairman,Asia,sinceMay 2024

TheCarlyleGroup,adiversifiedinvestmentfirm

•ManagingDirector,PartnerandHeadof Consumer,MediaandRetail,Asia,fromApril 2007toJuly2023

TheCoca-ColaCompany,abeveragecompany

•ExecutiveCommitteememberandGroup President,Asia,fromAugust2001toMarch 2007

BOARDROLES

LeadIndependentDirector AuditCommitteeMember FinanceCommitteeMember

GovernanceCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

MondelēzInternational,Inc.

PastFiveYears: None

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyboardexperience

• Priorserviceonotherboards

Industryexperience

• 35+yearsoftechnicalexpertiseinconsumer goodsintowhichourSolutionsGroupsells, aswellassupervisoryexperiencein packaging,focusedprimarilyonconsumer goods

Functionalexperience

• Technicalexpertiseinmarketingand supervisoryexperienceinM&A,environmental sustainabilityandR&DasregionalCEO

Workinmultipleregions

• HasworkedintheU.S.,LatinAmerica, EuropeandAsiaPacific

SELECTSKILLSANDQUALIFICATIONS

Industryexperience

•Technicalexpertiseinmaterialsscience focusedonappliedscienceinplastics,aswell assupervisoryexperienceinindustrialgoods, ineachcasecomplementingourMaterials Group

Functionalexperience

• Technicalexpertiseinenvironmental sustainabilityasformerenterprise sustainabilityleaderandinscience/ engineering/R&D,withsupervisory experienceinmarketingasdivisionalleader

Workinmultipleregions

•HasworkedintheU.S.andEurope

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyboardexperience

•Concurrentserviceononeotherboard

Industryexperience

•Technicalexpertiseinconsumergoodsinto whichourSolutionsGroupsellshavingled regionaldivisionofbeveragecompanyand supervisoryexperienceinmaterialsscience andindustrialgoods,complementingour MaterialsGroup

Functionalexperience

•TechnicalexpertiseinfinanceandM&A,as wellassupervisoryexperienceinmarketing andR&Dasregionalbusinessleader

Workinmultipleregions

•HasworkedintheU.S.,Canada,Europeand AsiaPacific

Age57

DirectorsinceSeptember2023

NotIndependent

DEONM.STANDER

RECENTBUSINESSEXPERIENCE

AveryDennisonCorporation

•President&CEOsinceSeptember2023

•President&COOfromMarch2022to August2023

•VP/GM,RBIS(nowSolutionsGroup),from June2015toFebruary2022

•VP/GM,GlobalCommercialandInnovation, RBIS,fromJanuary2013toMay2015

•VP/GM,GlobalCommercial,RBIS,from October2010toDecember2012

BOARDROLES

FinanceCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

None

PastFiveYears: None

DirectorsinceOctober2022

Independent

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•Heldrolesofincreasingresponsibilityatour company,includingCOOandCEO

Industryexperience

•LedourSolutionsGroupandoversawour MaterialsGroupasCOO,withtechnical expertiseinpackagingandsupervisory experienceindigital/technology,materials scienceandindustrialgoods

Functionalexperience

•Technicalexpertiseinenvironmental sustainabilityhavingledourSustainability Council,withsupervisoryexperiencein finance,marketing,M&A,cybersecurityand R&DasCEO

Workinmultipleregions

•HasworkedintheU.S.,EuropeandAsia Pacific

WILLIAMR.WAGNER

RECENTBUSINESSEXPERIENCE

SemrushHoldings,Inc.,anonlinevisibility managementsoftwareasaservicecompany

•CEOsinceMarch2025

GoToGroup,Inc.(formerlyLogMeIn,Inc.),a providerofsoftwareandcloud-basedinformation technology,productivityandsecuritytools

•President&CEOfromDecember2015to January2022

•President&COOfromJanuary2015to December2015

•COOfromMay2013toDecember2014

BOARDROLES

GovernanceCommitteeChair

CybersecurityCommitteeChair

OTHERPUBLICCOMPANYBOARDS

Current:

SemrushHoldings,Inc.

PastFiveYears: BlackLine,Inc.

AkamaiTechnologies,Inc. LogMeIn,Inc.

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•Leadscompanywith$444millionin revenuesand1,600employeesin2025and ledcompanythenwith$1.4billionin revenuesand3,000employees

U.S.publiccompanyboardexperience

•Concurrentserviceononeotherboardand priorserviceonotherboards

Industryexperience

•25+yearsofdigital/technologytechnical expertise,aswellassupervisoryexperience intechnology-basedconsumergoods,in eachcasecomplementingourSolutions Group

Functionalexperience

•Technicalexpertiseincybersecurity,aswell asmarketingasfunctionalleaderattwo technologycompanies;supervisory experienceinfinance,M&AandR&DasCEO

DIRECTORCOMPENSATION

Inrecommendingnon-employeedirectorcompensationtoourBoard,theCompensationCommitteeseeksto targetcompensationaroundthemedian ofsimilar-sizecompanieswithwhichwecompetefordirectortalent. The majorityofcompensationisdeliveredinequity toaligndirectorinterestswiththoseofourstockholders.

SummaryofAnnualCompensation

Thecomponentsofour2025non-employeedirectorcompensationprogramareshownbelow.Our2017Incentive AwardPlanlimitsthesumofthegrantdatefairvalueofequityawardsandcashcompensationprovidedto non-employeedirectorsduringanycalendaryearto$600,000.

2025NON-EMPLOYEEDIRECTORCOMPENSATION

TargetGrantDateFairValueofRSUs$185K

BoardRetainer$115K

MatchofCharitable/EducationalContributions$10K

AdditionalRetainers

LeadIndependentDirector$45K

AuditCommitteeChair$35K

CompensationCommitteeChair$25K

GovernanceCommitteeChair$25K

FinanceCommitteeChair$15K

OtherCompensation

AdvisoryCouncilfees(percouncil)$15K

ChangesinAnnualCompensation

Inconnectionwithhistransitiontonon-executiveChairmanandupontherecommendationoftheCompensation Committee,inFebruary2025,ourBoardapprovedtheannualcompensationforMr.Butierbeginningwiththeterm startingafterthe2025AnnualMeetingtomorecloselyalignwiththatofothernon-employeedirectors,giving considerationtohisleadershiproleandpriorexperience:(i)acashBoardretainerof$200,000,comparedtotheretainers of$160,000forourLeadIndependentDirectorand$115,000forourothernon-employeedirectors,and(ii)anawardof RSUswithatargetgrantdatefairvalueof$300,000,comparedtotheRSUswithatargetgrantdatefairvalueof $185,000awardedtoourothernon-employeedirectors,thatsimilarlyvestsontheone-yearanniversaryofthegrant date.

InApril2025,upontherecommendationoftheCompensationCommittee,ourBoardapprovedsupplemental compensationfornon-employeedirectorsparticipatingonanyAdvisoryCouncilformedbymanagementtoaddresskey strategicfocusareasof$15,000percouncilperyear,effectiveasofthe2025AnnualMeetingandpayablesemiannually inarrearsbeginninginDecember2025.

InFebruary2026,upontherecommendationoftheCompensationCommittee,ourBoardapprovedtheadditional retainerof$15,000fortheChairoftheCybersecurityCommittee,effectivewiththecommittee’sformationinJanuary 2026.

CompensationSetting

Non-employeedirectorcompensationisgenerallyreviewedbytheCompensationCommitteeeverythreeyears.In February2024,theCompensationCommittee’sthenindependentcompensationconsultant,WTW,analyzedtrendsin non-employeedirectorcompensationandassessedourprogram’smarketcompetitiveness.Usingbenchmarkdatafrom publicfilingsofcompaniesintheFortune350-500,WTWrecommendedthatthetargetgrantdatefairvalueofthe annualRSUawardbeincreasedby$15,000;theBoardretainerbeincreasedby$15,000;theadditionalretainerforour LeadIndependentDirectorbeincreasedby$15,000;theadditionalretainersforourAudit,Compensationand GovernanceCommitteeChairsbeincreasedby$10,000,$5,000and$5,000,respectively;andtheadditionalretainerfor anon-employeedirectorservingasFinanceCommitteeChairbesetat$15,000.Theprogramasadjustedwouldbring 44 2026ProxyStatement | AveryDennisonCorporation

totaldirectcompensationforregularBoardserviceto$300,000(or$310,000withthecharitablematch),theprojected medianofFortune350-500companiesin2027,thenexttimetheCompensationCommitteeplannedtoreviewthe program.GivingconsiderationtotheadviceofWTW,theCompensationCommitteerecommendedtoourBoardthatthe targetgrantdatefairvalueoftheannualawardofRSUsbe$185,000;theBoardretainerbe$115,000;theadditional retainerofourLeadIndependentDirectorbe$45,000;andtheadditionalretainersforourAudit,Compensation, GovernanceandFinanceCommitteeChairsbe$35,000,$25,000,$25,000and$15,000,respectively.

UpontherecommendationoftheCompensationCommittee,ourBoardapprovedtherevisednon-employeedirector compensationprogram,effectiveafterthe2024AnnualMeeting. TheCommitteeplanstonextreviewnon-employee directorcompensationinFebruary2027,withanyrecommendedchangesapprovedbyourBoardbecomingeffective forthetermbeginningafterthe2027AnnualMeeting.

StockOwnershipPolicy

OurstockownershippolicyrequiresourChairmanandothernon-employeedirectorstoownatleast$750,000and $500,000,respectively,ofourcompanystock,50%ofwhichmustbeheldinvestedshares.Onlysharesowneddirectly orinatrust,DSUsandunvestedRSUsaremeasuredindeterminingpolicycompliance.

Allbutourfourmostrecentlyappointednon-employeedirectorshadexceededtheirminimumownership requirementunderthepolicyasofyear-end2025,withMessrs.DicksonandFlitmanandMses.ReverberiandMejia havingfiveyearsfromthedateoftheirrespectiveBoardappointmenttoreachthatlevel.

EquityCompensation

Theannualequityawardtonon-employeedirectorsconsistsofRSUsthatvestontheone-yearanniversaryofthe grantdate,consistentwiththeone-yeartermtowhichdirectorsareelected.UnvestedRSUstodirectors(i)fullyvest uponadirector’sdeath,disability,retirementfromourBoardafterreachingage72(age75forgrantsmadebeginningin 2026)orterminationofservicewithin24monthsafterachangeofcontroland(ii)arecancelledintheeventadirectoris notreelectedbystockholdersorleavesourBoardbeforevesting,unlessotherwisedeterminedbytheCompensation Committee.OnMay1,2025,eachofourthen-servingnon-employeedirectorswasawarded1,087RSUswithagrant datefairvalueof$180,938,exceptthat,asChairman,Mr.Butierwasawarded1,763RSUswithagrantdatefairvalueof $293,462.

InconnectionwithhisappointmenttoourBoard,onJuly23,2025,Mr.Flitmanwasawarded765RSUswithagrant datefairvalueof$136,005,reflectingthe2025directorequityawardof$185,000proratedfortheremainingnine monthsofthetermendingattheAnnualMeeting.

DeferrableCashCompensation

Annualretainersarepaidsemiannuallyandproratedforanydirector’spartialserviceduringtheyear.Our non-employeedirectorsmayelecttoreceivethiscompensationin(i)cash,eitherpaiddirectlyordeferredintoanaccount underourDirectorsVariableDeferredCompensationProgram(DVDCP),whichaccruesearningsattherateofreturnof certainbondandequityinvestmentfundsmanagedbyathirdparty;(ii)DSUscreditedtoanindividualaccountpursuant toourDirectorsDeferredEquityCompensationProgram(DDECP);or(iii)acombinationofcashandDSUs.Fordirectors withaDDECPaccountbalance,dividendequivalents,representingthevalueofdividendspaidonsharesofourcommon stockcalculatedbasedonthenumberofDSUsheldasofadividendrecorddate,arereinvestedontheapplicablepayable dateintheformofadditionalDSUs.In2025,noneofournon-employeedirectorsparticipatedintheDVDCPandoneof themparticipatedintheDDECP.

WhenaparticipantintheDDECPceasesservingasadirector,thedollarvalueoftheDSUsinhisorheraccountis dividedbytheclosingpriceofourcommonstockonthedateofthedirector’sseparation,withtheresultingnumberof sharesofourcommonstock,lessfractionalshares,issuedtothedirector.

CharitableMatch

Wematchupto$10,000peryearofanon-employeedirector’sdocumentedcontributionstocharitableorganizations oreducationalinstitutions.

BradleyA.Alford

MitchellR.Butier

WardH.Dickson

DavidE.Flitman

AndresA.Lopez

MariaFernandaMejia

FrancescaReverberi

PatrickT.Siewert

WilliamR.Wagner

$151,667$180,938$10,000$342,605

$222,500$293,462$10,000$525,962

$157,500$180,938–$338,438

$95,833$136,005$10,000$241,838

$115,000$180,938–$295,938

$122,500$180,938$10,000$313,438

$122,500$180,938–$303,438

$160,000$180,938$5,000$345,938

$155,000$180,938–$335,938

(1) Mr.StanderisnotincludedinthetablebecauseheservesasCEOandreceivesnoadditionalcompensationtoserveonourBoard.

(2) AmountsincludeBoard/Committeeretainersasshowninthetablebelow,whichareproratedfortheapplicablemonthsofservice,aswellasfeesforAdvisory Councilservice,whichbeganafterthe2025AnnualMeetingandwerepaidsemiannuallyinarrearsbeginninginDecember2025.Messrs.AlfordandLopez had, foroneormoreyearsduringtheirservice,deferredcompensationthroughtheDDECP,with24,712and1,880DSUs,respectively,intheiraccountson December31,2025,thelastdayofourfiscalyear.

Director BoardLeadershipRoles/ AdvisoryCouncilMemberships

Alford

Butier Chairman

FinanceCommitteeChair

CybersecurityAdvisoryCouncil

Dickson AuditCommitteeChair

CybersecurityAdvisoryCouncil

$115,000–$29,167$7,500

$200,000–$15,000$7,500

$115,000–$35,000$7,500 Flitman–$95,833–––Lopez–$115,000–––

Mejia FutureofConsumerPackaging AdvisoryCouncil

Reverberi FutureofConsumerPackaging AdvisoryCouncil

$115,000––$7,500

$115,000––$7,500

SiewertLeadIndependentDirector$115,000$45,000––Wagner GovernanceCommitteeChair CybersecurityAdvisoryCouncil DigitalAdvisoryCouncil

$115,000–$25,000$15,000

(3) AmountsreflectthegrantdatefairvaluesofRSUsbasedonthefairmarketvalueofourcommonstockontherespectivegrantdate,adjustedforforegone dividends,inaccordancewithAccountingStandardsCodificationTopic718, Compensation,StockCompensation (ASC718).Eachnon-employeedirector servingatyear-end2025held1,087unvestedRSUs,exceptthatMessrs.ButierandFlitmanheld1,763and765unvestedRSUs,respectively.

(4) Amountsreflectourmatchofdocumentedcontributionsmadetocharitableorganizationsoreducationalinstitutions.

PROPOSAL2—ADVISORYVOTETOAPPROVEEXECUTIVECOMPENSATION

Afterconsideringthepreliminaryvotingresultsofthemostrecentadvisoryvoteonthefrequencyofsay-on-pay votesin2023,ourBoarddeterminedtocontinueholdingsay-on-payvotesannually.Theadvisoryvoteisavoteto approvethecompensationofourNEOsasdescribedintheCD&AandExecutiveCompensationTablessectionsofthis proxystatement.Itisnotavoteonourgeneralcompensationpoliciesoranyspecificelementofcompensation,the compensationofournon-employeedirectors,ourCEOpayratioorpayvs.performancedisclosures,orthefeaturesofour compensationprogramthatmitigateexcessiverisk-taking.

TheresultsoftheadvisoryvotearenotbindingonourBoard.However,wewilldisclosetheCompensation Committee’sconsiderationofthevoteresultsintheCD&Asectionofour2027proxystatement.

BoardRecommendation

Wearecommittedtomaintainingongoingengagementwithourinvestorstodiscussthealignmentofourexecutive compensationprogramwithourstrategiesandtheincentivesitprovidesourleaderstodeliverstrongfinancial performance,creatingsuperiorlong-term,sustainablevalueforourstockholders.

OurBoardrecommendsthatyouvoteFORapproval,onanadvisorybasis,ofthecompensationofourNEOs asdescribedintheCD&AandExecutiveCompensationTablessectionsofthisproxystatement.

Properlydatedandsignedproxieswillbesovotedunlessyouspecifyotherwise.

COMPENSATIONDISCUSSIONANDANALYSIS(CD&A)

ThisCD&A*describesourexecutivecompensationprogramandthedecisionsoftheCompensationCommittee (referredtointhisCD&Aasthe“Committee”)regarding2025executivecompensation.Itincludesthesectionsshown below.

EXECUTIVESUMMARY

Ourstrategicpillarsand2025achievementsaredescribedintheproxysummary. Wehaveconsistentlyexecuted ourbusinessstrategies,deliveringlong-term,sustainablevalueforourstockholders. Webelievethatthisvalueisbest measuredbyourTSRandcumulativeEVA,bothofwhichareperformanceobjectivesusedinourLTIprogramandinform howwesetourgoalsforsalesgrowth,operatingmarginimprovement,assetefficiency,ROTCandcapitalallocation.Our overridingfocusremainsonensuringthelong-termsuccessofourstakeholders,andwehaveaclearsetofstrategiesto deliverforthem.

2025FinancialPerformance

Wedeliveredsolid2025resultsinadynamicenvironment,reflectingthedurabilityofourfranchiseandour abilitytoactivatemultipleleversacrossarangeofmacroeconomicscenarios.Despiteheadwindsfromtariff-related uncertaintyandsofterconsumersentiment,weleveragedourproductivityplaybooktomaintainmarginsand generatesubstantialcashflow. Ourresultsreflecttheresilienceofourbusinessmodelandtheagilityofourteamsas theyremainfocusedondrivingoutsizedgrowthinhigh-valuecategories,acceleratinginnovationtoadvanceour differentiation,deliveringproductivitytoprotectmarginsinourbasebusinessesandallocatingcapitaleffectively.

*ThisCD&Acontains“forward-lookingstatements”withinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Theseforward-lookingstatementsare subjecttocertainrisksanduncertainties,whichcouldcauseactualresultstodiffermateriallyfromtheexpectedresults,performanceorachievementsexpressedor impliedthereby.Foradetaileddiscussionoftheserisks,seePartI,Item1a,“RiskFactors”andPartII,Item7,“Management’sDiscussionandAnalysisofFinancial ConditionandResultsofOperations,”inour2025AnnualReport.StatementscontainedinthisCD&Aregardingourcompanyandbusinessperformancetargetsand goalsshouldnotbeinterpretedasmanagement’sexpectations,estimatesoffutureresultsorotherguidance.

48 2026ProxyStatement | AveryDennisonCorporation

Net Sales

KEY2025FINANCIALRESULTS

Reported EPS

NetCashProvidedby OperatingActivities

Net Income

$8.9B$8.79$881.4M$688.0M

Netsalesincreasedby1.1% from$8.8billionin2024, reflectingvolume/mixgrowth, partiallyoffsetbydeflationrelatedpricereductions;sales changeex.currencyincreased by0.4%

TSRPerformance

ReportedEPSincreasedfrom $8.73in2024;adjustedEPS increasedby1.1%from$9.43 to$9.53,reflectingoutsized salesgrowthinhigh-value categories,aswellasmitigation oftariff-relatedimpactsand softerconsumervolumes

Weusedadjustedfreecash flowof$707.1milliontopay $288.4millionindividends, make$572.3millionin paymentsforshare repurchases,andexpend $401.8millionforone acquisitionandfiveventure investments

Netincomedecreasedby 2.4%from$704.9millionin 2024;ROTCwas15.0%

OurTSRin2025,whilenegative,wasmodestlyhigherthantheTSRoftheDowJonesU.S.Container&Packaging Index,theclosestbroad-basedindexweuseasacomparatorgroupinreportingourrelativeperformance,butlowerthan theS&P500IndustrialsIndexandtheS&P500Index.Webelievethatourfive-yearTSRisamoremeaningfulmeasure thanourone-yearTSRasitisconsistentwiththetimehorizonofourfinancialtargetsandgoaltodeliverlong-termvalue forourinvestors.Asshownbelow,whilelowerthanthebroadertwooftheseindices,ourfive-yearTSRoutperformed theDowJonesU.S.Container&PackagingIndex.

FIVE-YEARCUMULATIVETSR

ONE-,THREE-ANDFIVE-YEARTSR

2022(15)%(17)%(5)%(18)% 202314%7%18%26% 2024(6)%13%17%25% 2025(1)%(10)%19%18% 3-YearTSR6%9%66%86%

ResultsAgainst2021-2025FinancialTargets

InMarch2021,weannouncedfinancialtargetsthrough2025.Attheendofthefive-yearhorizonforthesegoals,we deliveredsolidresults–exceedingourtop-linegoalandperformingwellonourprofitabilitytargets–byleveragingthe strengthofourportfoliotomitigatemultiplecyclicalchallenges.WedidnotachieveourtargetsforadjustedEPS, primarilyduetotheimpactofforeigncurrencytranslationandacquisitionintangiblesamortization,andROTC,largely drivenbyimpactsfromacquisitions.

Forthe2021-2025period,onafive-yearcompoundannualbasis(with2020asthebaseperiod),GAAPreportednet sales,operatingincome,netincomeandEPSincreasedby4.9%,5.3%,4.4%and5.9%,respectively.GAAPreported operatingmarginin2025was11.8%.Ournon-GAAPtargetsandresultsareshownbelow.Thenon-GAAPfinancial measuresusedinthisCD&Aaredefined,qualifiedandreconciledfromGAAPinAppendixAofthisproxystatement.

(1) Resultsfornon-GAAPmeasuresarereconciledfromGAAPinAppendixAofthisproxystatement.

(2) Fortargetsandresults,percentagesreflectfive-yearcompoundannualgrowthrates,with2020asthebase period.

(3) AlthoughadjustedEBITDAgrowthwasnotoneofouroriginaltargets,itwasimpliedbythesaleschange ex.currencyandadjustedEBITDAmargintargets.TheforeigncurrencytranslationimpacttoEBITDAwasa benefitofapproximately$38millionin2021;aheadwindofapproximately$81million,$20millionand $7millionin2022,2023and2024,respectively;andabenefitofapproximately$5millionin2025.

2025Say-on-PayVoteandFeedbackDuringStockholderEngagement

Atthe2025AnnualMeeting,95%ofourstockholdersapprovedourexecutivecompensation.Thislevelofsupport wasconsistentwiththehighapprovalrateswereceivedinrecentyears. TheCommitteebelievesthatourstrong say-on-payvoteresults,aswellasthefeedbackrelatedtoexecutivecompensationwehavereceivedduringour engagementswithinvestors,demonstrateoverallsupportofourprogram.

TheCommitteemakeschangestoourexecutivecompensationprogramasappropriatetoensureitalignswithour evolvingfinancialprofileandbusinessstrategiesoraddressfeedbackfromourinvestors.Webelievethatitsannual reviewandapprovaloftheperformanceobjectivesinourAIPandLTIprogramsandtheactionstakenovertimereflect theCommittee’scommitmenttopayingforperformanceandbeingresponsivetoinvestorfeedback.See Previewof Revised2026ExecutiveCompensationProgram laterintheCD&AforinformationontheCommittee’smorethorough programreviewconductedin2025andchangesapprovedfor2026.

2025NEOs

InthisCD&AandtheExecutiveCompensationTablessectionofthisproxystatement,weprovideinformation regardingour2025NEOsshownbelow.

OverviewofPayPhilosophyandExecutiveCompensationComponents

OurexecutivecompensationprogramreflectstheCommittee’sphilosophythatthesubstantialmajorityof compensationshouldbetiedtooursuccessincreatingstockholdervalue,providinghigherrealizedcompensationwhen wedeliversuperiorperformance.Theobjectivesofthisstrategyaretomotivateourexecutivestoachieveourannualand long-termfinancialgoals.

TheCommitteeimplementsitspay-for-performancephilosophyasfollows:

•EstablishingtargetTDCtoincentstrongoperationalandfinancialperformanceandstockholdervaluecreation, givingconsiderationtomedianpayatsimilar-sizecompanies,roleresponsibilities,experience,performance, retentionandsuccession

•Aligningannualincentiveswithourbusinessand/orcompanyfinancialgoalsfortheyear

•Rewardinglong-termperformanceusingabsoluteandrelativeTSR,aswellascumulativeEVA,toincent deliveryofstockholdervaluecreation

ThesubstantialmajorityoftargetTDCforNEOsisperformance-based,meaningthattheyultimatelymaynot realizethevalueofat-riskcomponentsifwefailtoachievethedesignatedperformanceobjectives. Incentive compensationconsistsoftargetawardopportunitiesunderourAIPandLTIprogram,withpayoutsdeterminedbasedon ourperformanceagainstthethreshold,targetandmaximumlevelsestablishedbytheCommittee.Themixandelements of2025NEOtargetTDCareshownbelow.

PUs

89%Performance-based71%Performance-based

Long-TermIncentiveCompensation

CorporateNEOsBusinessNEO

•50%ofLTIwithpayout= 0%to200%oftargetaward

•Three-yearperformanceperiod -CompanyEVA(50%)

-CompanyRelativeTSR(50%)

MSUs

BaseSalary

•50%ofLTIwithpayout= 0%to200%oftargetaward

•Three-yearperformanceperiod -BusinessEVA(75%) -CompanyRelativeTSR(25%)

•CumulativeEVAgoalstiedtosuperiorTSRobjectiveandlong-termfinancialtargets

•RelativeTSRpayoutcappedat100%ifabsoluteTSRisnegative

•50%ofLTIwithpayout=0%to200%oftargetaward

•One-,two-,three-andfour-yearperformanceperiods -100%CompanyAbsoluteTSR

AnnualIncentiveCompensation

CorporateNEOsBusinessNEO

•Drivesperformancetodeliverannualcompany/businessfinancialgoals

•Individualperformancemodifierbasedonachievementofstrategicobjectives(generally cappedat100%forNEOs)

•Annualfixed-cashcompensationgenerallysetaroundmarketmedian

TargetTDCMix

PayforPerformance

Inthegraphbelow,CEOcompensationreflectsMr.Stander’sSummaryCompensationTablecompensationfor2023 through2025andsuchcompensationofourformerCEOfor2021and2022,relativetoour2021-2025TSRof27%. ChangesinCEOpayhavegenerallycorrelatedwithchangesinTSR,exceptin2023,whenCEOpaywassubstantially lowerthanintheprioryearbecauseMr.Stander’s2023compensationprimarilyreflectedhiscompensationasCOO,and in2024,whenCEOpaywassubstantiallyhigherthanintheprioryearbecauseitreflectedMr.Stander’sfirstfullyearas CEO.

StrongCompensationGovernancePractices

Ourexecutivecompensationprogramincorporatesthebestpracticesshownbelow,whichtheCommitteebelieves ensurethatitservesthelong-terminterestsofourstockholders.

PAYFORPERFORMANCE

CompensationPrimarily Performance-Based

StrategicTargeting

CappedAnnualIncentive Consistentwith AnnualFinancialGoals

MajorityLong-TermEquity IncentiveCompensation

CappedPayoutfor RelativeTSRinPUs

✓ 89%ofCEO’stargetTDCand71%ofaveragetargetTDCofotherNEOsfor2025

✓ TargetTDC(basesalary+targetAIPopportunity+targetLTIopportunity)settoincentstrongperformanceandvalue creation,givingconsiderationtopayatsimilar-sizecompanies,roleresponsibilities,experience,performance,retention andsuccession

✓ 2025AIPawardsforNEOsbasedontargetperformanceobjectivesconsistentwithannualfinancialgoals,subjectto limitedupwardandunlimiteddownwarddiscretionbasedonCommittee’sassessmentofperformanceofCEOagainst predeterminedstrategicobjectivesandotherNEOs’individualcontributions;awardscappedat200%oftarget

✓ LTIawardsforNEOsprioritizelonger-termstockholdervaluecreation,withPUscliff-vestinginthreeyearsandMSUs vestingoverone-,two-,three-andfour-yearperformanceperiods

✓ PayoutforrelativeTSRcomponentofPUscappedat100%oftargetifourabsoluteTSRisnegative

COMPENSATIONBESTPRACTICES

NoEmploymentContracts ✓ NEOsemployedwithoutcontractunlessrequiredbylawsormarketpracticesofhomecountry

RigorousStock OwnershipPolicy

NoHedgingorPledging

LimitedTradingWindows

BelowMedianBurnRate

CompensationClawback

✓ CEOrequiredtomaintainownershipof6xhisbasesalaryandowned2xthisrequirementatYE2025;Level2NEOs andLevel3NEOcompliedwithrequirementstomaintainownershipof3xand2xofbasesalary,respectively

✓ Insidertradingpolicyprohibitsofficersfromengaginginshortsale,option,hedgingandpledgingtransactionsinour commonstockandallNEOscompliedduring2025

✓ NEOsmayonlytransactincompanystockduringapprovedtradingwindowsaftersatisfyingpreclearance requirements,includingcertifyingcontinuedcompliancewithourstockownershippolicy

✓ Three-yearaverageburnrateof0.37%atYE2025,between25th and50th percentilesofS&P500companies

✓ Clawbackpolicyrequiresrecoupmentofcertainincentive-basedcompensationtoexecutiveofficersifwehavean accountingrestatementtocorrectmaterialnoncompliancewithanyfinancialreportingrequirement

NoExciseTaxGrossUps ✓ Nogross-uppaymentsforexcisetaxesforterminationfollowingchangeofcontrol

DoubleTrigger EquityVesting

LimitedPerquisites

IndependentOversight

ExpertCompensation Advice

✓ EquityawardsnotaccelerateduponchangeofcontrolunlessNEOterminatedwithoutcauseorNEOterminates employmentforgoodreasonwithin24monthsofchangeofcontrol

✓ OtherthancappedfinancialplanningreimbursementonlyforCEOandLevel2NEOsandpaymentforexecutivephysicals,our U.S.NEOsreceiveflattaxableexecutivebenefitallowancenotsubjecttotaxgross-up

STRONGGOVERNANCE

✓ ExecutivecompensationdecisionsmadebyCommitteecomprisingonlyindependentdirectors

✓ WTWandSemlerBrossyprovidedCommitteewithindependentexpertexecutivecompensationadviceduring2025

PreviewofRevised2026ExecutiveCompensationProgram

Recognizingthatourstrategicprioritiesandfinancialpositionhadsignificantlyevolvedinrecentyears,in2025, theCommitteeundertookathoroughreviewofourexecutivecompensationprograminconsultationwith management,WTW,andanotherindependentcompensationconsultant,SemlerBrossy.Thereviewwasdesigned toassesspotentialchangesthatcouldbetterdrivenear-termbusinessunitaccountability;acceleratefocuson strategicportfoliomix;incentandrewardsuperiorbusinessperformance;simplifytheprogram;balanceabsolute performancewithmarketconsiderations;andpromotecollaboration,talentsharingandacompanyownership mindset.

ToassisttheCommitteewithitsreview,WTWandSemlerBrossyeachanalyzedourexecutivecompensation program’sevolutionsinceitwaslaststructurallychangedin2013(whichprimarilyincreasedtheweightingofPUsfrom 40%to50%andreplacedstockoptionsandRSUswithMSUs);interviewedmembersofourBoard,theCommitteeand seniorleadership;assessedcurrentmarketpractices;andmaderecommendationstoachievetheCommittee’sobjectives describedabove.TheCommitteemetseparatelywitheachconsultantandmanagementoverseveralmonthstoassess theirrecommendationsforpotentialchangestotheprogram. Basedonthesediscussions,attheCommittee’srequest, managementgatheredperspectivesfromseveralofourlargestinvestorsregardingthepotentialchangesunder consideration;provideditsrecommendationsontheproposedchanges,includingtheirfinancialimpact;and reviewedwiththeCommitteeactionsrequiredtoimplementaligned-uponchanges.

InFebruary2026,theCommitteeapprovedarevisedexecutivecompensationprogram.Forannualincentives,the CommitteedeterminedtoretaintheperformanceobjectivesfortheAIP(adjustedsalesgrowth,adjustedEPS/EBITDA andadjustedfreecashflow)butremovedthe15%linkagetoadjustedEPSforbusinessleaderstodrivegreaterbusiness focusandaccountability.TheCommitteemoresignificantlyrevisedtheannualLTIprogram,asshownbelow.

REVISEDANNUALLTIAWARDSFOR2026

•RetainPUs,includingcumulativeEVAandrelativeTSRperformanceobjectives,to maintainalignmentwithcreatinglong-termstockholdervalue

•AlignallparticipantstoenterpriseEVA toreflectsharedcontributiontoourlongtermsuccessandfurtherdrivecollaborationandtalentsharingacrossbusiness units

•IncreaseweightingofPUsfrom50%to60%,retainingcliff-vestingatendof three-yearperformanceperiod

-CompanyEVA(50%ofPUaward)performanceobjectivetocontinuebeingtied todeliveringsuperiorTSRandachievinglong-termfinancialtargets

-CompanyrelativeTSR(50%ofPUaward)performanceobjectivetocontinue beingmeasuredrelativetodesignatedpeergroup

•ModifyperformanceobjectivesandpayoutsforrelativeTSRasfollows: decreasethresholdpayoutfromrelativeTSRat40thpercentileto30thpercentile tomorecloselyalignwithmarketpractices;increasetargetpayoutfromrelative TSRat50thpercentileto55thpercentiletorequireabove-medianperformancefor targetpayout;decrease200%payoutfromrelativeTSRat80thpercentileto75th percentile;andaddmaximum250%payoutforrelativeTSRat90thpercentileto incentandrewardsuperiorperformance

•MaintainrelativeTSRpayoutcapat100%ifabsoluteTSRisnegative

•ReplaceMSUswithRSUs toutilizelesscomplex,moremarketprevalentaward vehiclethatbetterservestheCommittee’sretentiongoals

RSUs

•Decreaseweightingfrom50%to40% tomaintainprogramthatismajority performance-based

•Retainratablevestingoverfouryears consistentwithMSUvestingschedule familiartoexecutives

AdditionalinformationontheCommittee’srationaleforthechangespreviewedabovewillbeincludedintheCD&A containedinour2027proxystatement.

SUMMARYOF2025COMPENSATIONDECISIONS

TheCommitteeapprovesexecutivecompensationtopayforperformance,withthetargetTDCofNEOsestablished toincentstrongfinancialperformanceandstockholdervaluecreation.Compensationisbasedpredominantlyon performance,meaningthatourexecutivesmaynotultimatelyrealizesomeoralloftheat-riskcomponentsifwefailto achieveourfinancialobjectives.

Indetermining2025NEOcompensation,theCommitteeconsideredthefactorsdescribedbelow.

• AnnualCompanyPerformance –ForCorporateNEOs,ourcompany’s2025adjustedsalesgrowth,adjusted EPSandadjustedfreecashflow;forourBusinessNEO,primarilyMaterials’adjustedEBITDA,adjustedfreecash flowandadjustedsalesgrowthandsecondarilyadjustedEPS

• StockholderReturns –OurTSRonanabsolutebasis,aswellasrelativetoadesignatedgroupofpeer companies,andcompany/businesscumulativeEVA

• IndividualPerformance –OurCEO’sperformanceagainstthepredeterminedstrategicobjectivesestablishedfor himatthebeginningoftheyearandthecontributionsofourotherNEOs

• MarketCompetitiveness –Paypracticesandcompanyperformancerelativetothemarket

• InvestorFeedback –Theresultsofour2025say-on-payvoteandfeedbackonexecutivecompensationreceived duringourstockholderengagementprogram

Thekeydecisionsimpacting2025NEOtargetTDCareshownbelow. Whileweprovideconsistent,marketcompetitivetargetTDCopportunitiesforourNEOs,theactualcompensationtheyrealizeeachyearvariesbased primarilyonourfinancialperformance.

2025EXECUTIVECOMPENSATIONSUMMARY

ComponentDecisionsImpacting2025Compensation BASESALARY

11%ofCEOTDC; Avg.29%ofOtherNEOTDC

AIPAND OTHERCASHAWARDS

15%ofCEOTDC; Avg.18%ofOtherNEOTDC

LTIAWARDS

74%ofCEOTDC; Avg.53%ofOtherNEOTDC

InApril,thebasesalariesof(i)Messrs.Stander,YostandWalkerincreasedby5%,8%and10%, respectively,tomorecloselyalignwithmarketdataforsimilarrolesand(ii)Mr.Lovinsincreasedby4%, consistentwiththemeritincreaseforU.S.employees.InMarch,Mr.AlloucheandMs.Baker-Nelreceived basesalaryincreasesof15%and8%,respectively,inconnectionwiththeirpromotiontoLevel2NEOs.

InMarch,thetargetAIPopportunitiesofMr.AlloucheandMs.Baker-Nelincreasedfrom50%to 60%ofbasesalaryinconnectionwiththeirpromotiontoLevel2NEOs.Therewerenoother changestoNEOtargetAIPawardopportunitiesin2025.

Companyand/orbusinessperformanceresultedinfinancialmodifiersof39%forCorporateNEOs and46%forourBusinessNEO.IndividualmodifiersforallNEOswere100%.

Mr.Allouchereceivedaone-timecashbonusof$250,000forhiscontributionsasInterimCFO.

AnnualLTIAwardsGrantedin2025

•AsheenteredhissecondfullyearasCEO,theCommitteeincreasedMr.Stander’stargetLTI opportunityfrom600%to700%ofbasesalarytopositionhistargetTDCatthe50th percentile ofmarketdataatcompanieswithannualrevenuesof$10billion.ThetargetLTIopportunitiesfor Mr.AlloucheandMs.Baker-Nelincreasedfrom140%to180%ofbasesalaryinconnectionwith theirpromotiontoLevel2NEOs.Mr.Walker’stargetLTIopportunityincreasedfrom120%to 130%ofbasesalarytomorecloselyalignwithmarketdataforsimilarroles.Therewerenoother changestoNEOtargetLTIopportunitiesin2025.

•LTIawardsforNEOswerefullyperformance-basedanddeliveredwiththefollowingvehicles, performanceobjectivesandvestingcriteria:

•50%inPUsthatcliff-vestattheendofthree-yearperiodwithpayoutsrangingfromzeroto 200%basedontheachievementoftherespectivecumulativeEVAandrelativeTSR performanceobjectives.PayoutfortheTSRcomponentiscappedat100%oftargetforany performanceperiodinwhichabsoluteTSRisnegative.TherewerenochangestothePU performanceobjectivesorweightingsin2025.

•50%inMSUsthatvestbasedonabsoluteTSRoverone-,two-,three-andfour-year performanceperiods,withanaverageperformanceperiodof2.5years,basedonthefollowing performancelevelsandcriteria:(i)thresholdperformancelevel,whichresultsinpayoutof85%, isTSRof(15)%;(ii)targetperformancelevel,whichresultsinapayoutof100%,requiresTSR of10%;and(iii)maximumperformancelevel,whichresultsinpayoutof200%,requiresTSRof 75%.TherewerenochangestoMSUperformancecriteriain2025.

SpecialLTIAwardsGrantedin2025

•InconnectionwiththeirpromotiontoLevel2NEOs,Mr.AlloucheandMs.Baker-Nelwereeach grantedaspecialone-timeawardofRSUswithatargetgrantdatefairvalueof$500,000that cliff-vestsonthethirdanniversaryofthegrantdate.

LTIAwardsVestingatYE2025

•2023-2025PUs

•Our2023-2025TSRwasatthe54th percentilerelativetothedesignatedpeergroup,which was112%oftarget.

•CompanycumulativeEVAof$1,085millionwaslessthanthethresholdlevel,resultinginno payoutonthatperformanceobjectiveforCorporateNEOs.CumulativeEVAforwhatisnow SolutionsGroupwasalsolessthanthethresholdlevel,resultinginnopayoutonthat performanceobjectiveforourBusinessNEO(asaleaderinSolutionsGroupinMarch2023, Mr.Yost’s2023-2025PUsweretiedtothatbusinessratherthanMaterialsGroup,whichhe beganleadinginMarch2024).

•The2023-2025PUspaidoutat56%oftargetforCorporateNEOsand28%oftargetforour BusinessNEO.

2025EXECUTIVECOMPENSATIONSUMMARY

ComponentDecisionsImpacting2025Compensation LTIAWARDS(cont.)

•MSUs

•4th TrancheofMSUsgrantedin2022 2022-2025AbsoluteTSRof(3.4%)

Payoutof92%oftarget

•3rd TrancheofMSUsgrantedin2023 2023-2025AbsoluteTSRof4.0%

Payoutof96%oftarget

•2nd TrancheofMSUsgrantedin2024 2024-2025AbsoluteTSRof(2.8%)

Payoutof92%oftarget

•1st TrancheofMSUsgrantedin2025 2025AbsoluteTSRof0.2%

Payoutof94%oftarget

•2022-2025SpecialPUsforBusinessNEO

•In2022,Mr.YostwasgrantedaspecialLTIawardof2022-2025PUswithatargetgrantdate fairvalueof$1,000,000,whichwaseligibletocliff-vestatyear-end2025basedonenterprise IntelligentLabelscompoundannualsalesgrowthex.currencyandcumulativeadjusted earningsbeforeinterest,taxesandacquisition-relatedinintangibleassetamortization(EBITA). Thethresholdlevelofperformancewasnotachievedforeitheroftheperformanceobjectives, resultinginnopayoutforthesePUs.

WealsoprovideourNEOswithlimitedperquisitesandbenefitsthattheCommitteebelievesarecomparabletothose offeredbyothermultinationalpubliccompanies.

DISCUSSIONOF2025COMPENSATIONDECISIONS

TheCommitteeaimstohavebasesalariesatoraroundmedianpayatsimilar-sizecompanies,withthesubstantial majorityofcompensationconsistingofincentivecompensationthatdelivershigherrealizedcompensationwhenour financialperformanceisstrongerandlowerrealizedcompensationwhenourfinancialperformanceisweaker.

BaseSalaries

ChangestoNEObasesalariesapprovedbytheCommitteearedescribedinthe2025ExecutiveCompensation Summary.Changesinbasesalaryaregenerallybasedonmarketcomparisonsforpositionswithsimilarscopeand responsibility,executiveperformanceandtheannualmeritincreaseprovidedtoemployeesintheNEO’sjurisdiction.

NEOBASESALARIES

NEOYE2025BaseSalary

Stander$1,150,000

Lovins$838,500

Allouche(1) $587,466

Yost$567,000

Baker-Nel$570,000

Walker$562,057

(1) AmountforMr.AllouchewasconvertedfromIsraelishekels usingtheaveragemonthlyexchangerateforDecember2025.

AIPandOtherCashAwards

The2025AIPwasdesignedtoincentmanagementtoachieveourfinancialgoalsfortheyear. NEOsarenoteligible forguaranteedAIPawards. AIPawards,whicharecappedat200%,aredeterminedforeachfiscalyearusingthe formulabelow.IndividualmodifiersforNEOsarecappedat100%,althoughtheCommitteeretainsthediscretionto determinehigherindividualmodifierstorewardexceptionalperformance,uptothecapof150%forallAIPparticipants.

TargetAIPOpportunities

ChangestoNEOtargetAIPopportunitiesapprovedbytheCommitteearedescribedinthe2025Executive CompensationSummary.

NEOTARGETAIPOPPORTUNITIES

NEO2025Opportunity(%ofBaseSalary)

Stander135%

AIPPerformanceObjectives;Target-SettingPrinciples

Theperformanceobjectivesandweightingsforthe2025AIPforCorporateNEOs,whichwereconsistentwiththe prioryear,wereestablishedbytheCommitteetocontinueincentingthemtogrowsales,deliverstockholdervalue throughprofitablegrowthandgeneratestrongcashflow.

2025CORPORATEAIPPERFORMANCEOBJECTIVES

ObjectiveDescription

AdjustedSalesGrowth (20%)

AdjustedEPS (60%)

AdjustedFreeCashFlow (20%)

Focusesmanagementontop-linegrowth,akeycontributortolong-termvalue creation

Primarydriverofstockholdervaluecreationandmeasureweusetoprovide guidancetoourinvestors;focusesmanagementonprofitablegrowthand expensecontrol

Cashavailableafterinvestmentinourbusiness,whichwecandeployfor dividends,sharerepurchases,acquisitionsandventureinvestments;focuses managementonimprovingcapitalefficiency,includingworkingcapital

TheAIPperformanceobjectivesforourBusinessNEOweretiedprimarilytoresultsfortheMaterialsbusinessbased 20%onadjustedsalesgrowth,45%onadjustedEBITDAand20%onadjustedfreecashflow;theremaining15%was tiedtoadjustedEPS.TargetpayoutsweredesignedtobeachievableonlyiftheMaterialsbusinessimproveduponits 2024performanceanddeliveredits2025financialgoals.

ThethresholdpayoutlevelfortheadjustedEPSperformanceobjectiveforallNEOswassetat0%.Thethreshold payoutlevelfortheothertwoperformanceobjectivesforCorporateNEOswassetat50%.ForourBusinessNEO,the thresholdpayoutlevelfortheadjustedEBITDAperformanceobjectivewassetat0%,andthethresholdpayoutlevelfor theadjustedsalesgrowthandadjustedfreecashflowperformanceobjectiveswassetat50%.Forallperformance objectivesforallNEOs,thetargetpayoutlevelwas100%,andthemaximumpayoutlevelwas200%.Insetting2025 corporateAIPtargets,theCommitteeaimedtoensureconsistencywithour2021-2025financialtargets,giving considerationtothefactorsdescribedbelow.

•Targetadjustedsalesgrowth,reflectingsalesgrowthex.currencyexcludingtheimpactofacquisitions completedafterourAIPtargetswereset,of3.9%waslessthanour2021-2025salesgrowthex.currency targetof5%+andour2024saleschangeex.currencyresultof5.1%,whichhadbeenimpactedbycustomers rebuildinginventoriesafterthesupplychaindisruptionsof2021-2023.For2025,weexpectedthatvolume wouldgrowasindustryvolumesnormalizedandthatwewouldpasssomeofthebenefitfromanticipated deflationtoourcustomers.

•TargetadjustedEPSof$10.00wassetatthemidpointofour2025guidance,lowerthanour2021-2025 compoundannualgrowthtargetof10%,and6.5%higherthanour2024AIPresultof$9.35(whichexcluded the$0.08impactofaone-timevalue-addedtaxrefundclaimfromourreportedadjustedEPSresultof$9.43).

•Althoughwedidnotexternallycommunicatea2021-2025adjustedfreecashflowtarget,ourplanfor2025was todeliveradjustedfreecashflowof$750millionand100%adjustedfreecashflowconversion,withsolidnet incomegrowthwhilemaintainingourworkingcapitalproductivitybenefits.Thetargetforadjustedfreecash flowwasslightlybelowour2024AIPresultof$757million(whichexcludedthe$57millionafter-taxcash impactofalegalsettlementpaymentfromouradjustedfreecashflowresultof$700million).

2025CORPORATEAIPTARGETSVS.2021-2025FINANCIALTARGETSAND2024AIPRESULTS

2021-2025FinancialTargets2024AIPResults2025AIPTargets SalesGrowthEx.Currency5%+5.1%3.9%($8,892M)* AdjustedEPSGrowth10%$9.35$10.00 AdjustedFreeCashFlowN/A$757M

* RepresentsAIPtargetforadjustedsalesgrowth

FinancialModifiers

AIPfinancialmodifiersarecappedat200%. Indeterminingfinancialmodifiers,theCommitteehasthediscretionto excludetheimpact,positiveornegative,ofextraordinaryitemssuchasforeigncurrencytranslationfluctuations; acquisitionsanddivestitures;certainrestructuringandintegrationactions;changesinaccountingprinciples,taxcodesor relatedregulationsandrulings;extraordinaryeventssuchasnaturaldisasters,outbreaksofepidemiologicaldisease, terrorismandwar;theimpactfromearlyextinguishmentofdebtandpensionplanterminations;costsoflitigationoutside thenormalcourseofbusiness;andnon-cashchargesassociatedwiththeimpairmentoflong-livedassetssuchas goodwill.

Thetablebelowshowsthefinancialmodifiersforthe2025AIP. ForCorporateNEOs,thetargetlevelof performancewasnotachievedforanyofthethreeperformanceobjectives;forourBusinessNEO,thetargetlevelof performancewasexceededforoneofthefourperformanceobjectives.

2025AIPFINANCIALMODIFIERS

PerformanceObjectiveWeighting

Mr.Stander

Mr.Lovins

Mr.Allouche

Ms.Baker-Nel

Mr.Walker

AdjustedSalesGrowth(2) 20%$8,714M$8,892M$9,248M$8,620M0%0%

AdjustedEPS(3) 60%$9.30$10.00$10.70$9.5542%25%

AdjustedFreeCashFlow(4) 20%$675M$750M$870M$705M70%14%

CorporateNEOFinancialModifier

Mr.Yost

MaterialsAdjustedSalesGrowth(2) 20%$5,831M$5,950M$6,188M$5,736M0%0%

MaterialsAdjustedEBITDA(5) 45%$986.9M$1,052.7M$1,122.9M$1,004.2M39%18%

MaterialsAdjustedFreeCashFlow(5) 20%$576M$621M$711M$632M112%22%

AdjustedEPS(3) 15%$9.30$10.00$10.70$9.5542%6%

(1) AdjustedEPSandadjustedEBITDAthresholdssetat0%;thresholdsforallotherperformanceobjectivessetat50%.

(2) ForCorporateNEOs,reflectsnetsalesof$8,855.5million,removingthe$217.8millionimpactofforeigncurrencytranslationandthe$18.2million impactof acquisitionscompletedaftertheAIPtargetswereset.ForourBusinessNEO,reflectsnetsalesof$6,093.3million,removingthe$200.0millionimpactofforeign currencytranslationandthe$18.2millionimpactofacquisitionscompletedaftertheAIPtargetsweresetandexcludingotheritemsof$138.7million.

(3) Reflectsadjustednetincomepercommonshare,assumingdilution,of$9.53,excludingthe$(.02)impactofacquisitionscompletedaftertheAIPtargetswereset.

(4) Reflectsnetcashprovidedbyoperatingactivitiesof$881.4million,minuspurchasesofproperty,plantandequipmentof$169.0millionandpurchasesof softwareandotherdeferredchargesof$31.4million,plusproceedsfromsalesofproperty,plantandequipmentof$22.6million,plusproceedsfrominsurance andsales(purchases)ofinvestments,net,of$3.5million,lessthe$1.9millionimpactofacquisitionscompletedaftertheAIPtargetswereset.

(5) AdjustedEBITDAandadjustedfreecashflowatthebusinesslevelareinternalfinancialmeasuresthatexcludeormakesimplifyingassumptionsforitemsthat cannotbeallocatedpreciselybybusiness,suchasinterestandincometaxexpenses,andrelatedbalancesheetaccounts,suchasdeferredtaxassetsand liabilities,incometaxpayablesandreceivables,andshort-andlong-termdebt.Certainbalancesheetaccountssuchaspensionandotherpostretirementbenefits andinsurancethataregenerallymanagedatthecorporatelevel,aswellastheimpactofforeigncurrencytranslation,arealsoexcludedfromthecalculationof thesefinancialmeasuresforthebusinesses.Theimpactofintercompanysalesisincludedinthesefinancialmeasures.

NEOPerformanceEvaluationsandIndividualModifiers

OurNEOsareevaluatedontheirindividualperformancefortheyear.TheCommitteeapprovedthestrategic objectivesofourCEO,andourCEOapprovedtheannualgoalsofotherNEOs.InFebruary2026,theCommittee evaluatedtheperformanceofourCEOagainsthispredeterminedstrategicobjectives;forourotherNEOs,this assessmentconsideredourCEO’sevaluationbasedonthetotalityoftheirperformance.

IndividualmodifiersforallAIPparticipantsarecappedat150%,subjecttothetotalcaponAIPawardsof200%.The CommitteehasdeterminedthattheindividualmodifiersforourNEOsshouldgenerallybecappedat100%.

TheCommitteeevaluatedthe2025performanceofourCEO,givingconsiderationtohisleadershipinmaintaining marginsandgeneratingsubstantialcashflowdespiteheadwindsfromlowerdemanddrivenbytariff-related uncertaintyandsofterconsumersentiment;ourfinancialresultsfortheyear;hisperformanceagainsthisstrategic objectivesestablishedinFebruary2025;andhisself-assessmentdiscussedwiththeCommitteeinFebruary2026. TheCommitteedeterminedtheindividualmodifierforourCEObasedonitsassessmentofhisperformance.

OurCEOhadthestrategicobjectivesfor2025shownbelowwiththeCommittee’sevaluationofhisperformance. Thesestrategicobjectivesdidnothaveassignedweightings,reflectingtheCommittee’sexpectationthathedeliveronall fronts.

2025CEOPERFORMANCEEVALUATION

StrategicObjectiveEvaluation

Driveoutsizedgrowthinhigh-valuecategoriesthroughmarketdriveninnovation –DelivergrowthinenterprisesalesofIntelligent Labelswithintargetedrange,includingtargetsinfood/logistics marketsegmentsandconverterchannel;achieveabove-average organicgrowthinMaterials’industrialtapesandadhesives;and delivertargetedlevelsoforganicsalesgrowthinSolutions’ externalembellishmentsandVestcom,includingcompleteshelfedgelabelproductivityrolloutwithlargepharmacyretailer

Deliveredabove-averagegrowthinenterprisehigh-value categories,whichnowrepresent~45%ofourrevenuemix; achievedlow-singledigitorganicgrowthinIntelligentLabels, lessthantargetedamountduetolowervolumesinappareland generalmerchandisedrivenbytariffs;exceededgrowthtargetin food/logisticsmarketsegments;achievedabove-averageorganic growthinMaterials’high-valuecategories,includingacross industrialtapesandadhesives;deliveredabove-averageorganic growthinSolutions’high-valuecategories,exceedinggrowth targetinVestcomandcompletingshelf-edgelabelproductivity rolloutwithlargepharmacyretailer,butnotreachinggrowth targetinexternalembellishments

Growprofitablyinbasebusinesses –Delivernetimpactofpricing andcostsconsistentwithannualoperatingplan

Leadatintersectionofphysicalanddigital –Deliverfood segmentIntelligentLabels/digitalidentityprogramrolloutand advanceproteinrolloutwithlargegroceryretailers;commercialize proteinandsmartmaterialsinnovations;andexpandOpticaand Storelinkcustomertraction

Focusrelentlesslyonproductivity –Achievetargetedsavings fromrestructuringactionsanddelivertargetedamountofgeneral productivityacrossMaterialsandSolutions

Allocatecapitaleffectively –Investtargetedamountincapital expenditures;maintainprior-yearoperatingworkingcapital productivity;investtargetedamountinacceleratedgrowth platformsofIntelligentLabels,innovationanddigitalinfrastructure; andstrategicallyexecutesharerepurchasesand/orvalueaccretive acquisitionsthatincreaseexposuretohigh-valuecategories

Leadinenvironmentallyandsociallyresponsiblemanner –Expandnewproductdevelopmentwithemphasisonsustainable anddigitalproducts/solutions;achieveannualobjectivesto advancecybersecuritypreparedness;deliver2025sustainability goals;andfurtherenhanceleadershiprepresentation

Refineleadershipsuccession/developmentandenhance organizationalcapability –Executedevelopmentplansforkey leadershiproles;recruit,hireandonboardChiefDigitalOfficer;and furtherdeveloptalentbyenhancingorganizationalcapabilityand targetedcollaboration

Deliverednetimpactofpricingandcostsconsistentwithannual operatingplan

Deliveredfoodsegmentprogramrolloutandadvancedprotein rolloutwithlargegroceryretailersconsistentwithplan; commercializedproteinandsmartmaterialsinnovations; increasedStorelinktractionandmaintainedbutdidnotexpand Opticatraction

Substantiallyexceededtargetedamountofsavingsfrom restructuringactions,withmorethan$60millioninenterprise savings,anddeliveredgeneralproductivityacrossMaterialsand Solutionslowerthantargetedamountduetotariff-impacted networkinefficiencies

Investedlessthantargetedamountincapitalexpenditures, strategicallyexecutingmorevalue-accretivecapitalallocation priorities;deliveredoperatingworkingcapitalproductivitylower thanprioryear;exceededtargetedamountofinvestmentin acceleratedgrowthplatforms;strategicallyacceleratedshare repurchases;completedacquisitionofTaylorAdhesives

Expandeddevelopmentofnewsustainableproductsandnew digitalproducts/solutions;achievedtargetcybersecurity objectives;delivered2025environmentalsustainabilitygoals; andfurtherenhancedleadershiprepresentation

AdvanceddevelopmentplansformembersofCompany LeadershipTeam;appointednewleadersforMaterialsGroup Europe,MiddleEastandNorthAfricaandLabelandPackaging MaterialsNorthAmerica;recruited,hiredandonboardednew ChiefDigitalOfficer;andcontinuedadvancingorganizational capabilityandtargetedcollaboration

TheCommitteeChair,togetherwithourChairmanandLeadIndependentDirector,discussedwithourCEOthe feedbackfromdiscussionsoftheCommitteeandourfullBoardregardinghis2025performance.

OurCEOrecommendedtotheCommitteetheindividualmodifiersforourotherNEOsbasedonhisassessmentof their2025performance.TheCommitteeconsideredourCEO’srecommendations,retainingthediscretiontoapprove individualmodifiersdifferentthanwhatourCEOhadrecommended.OtherthandiscussingwithourCEOtheirindividual performance,ourotherNEOsplayednoroleintheircompensationdeterminations.TheCommitteenotedthehighlightsof ourotherNEOs’2025performancedescribedbelow.

Mr.Lovins

•Led enterprisefinance,includingoverseeingcontrollership,tax,treasury,financialplanningandoperationalfinance teams

•Delivered strongadjustedfreecashflow of$707millionandadjustedfreecashflowconversionof103%

•Maintained strongbalancesheet,whilecontinuingtoinvestinbusinessestosupportorganicgrowth,acquiringTaylor Adhesivesandreturning$861millionincashtostockholdersthroughdividendsandsharerepurchases

•Ensured effectivecapitalallocation todeliverstrongreturnsandEVAgrowth,deliveringROTCof15%in2025

•Drove significantproductivity benefitstomitigateimpactoftariff-relatedlowerdemand,includingrestructuring savingsofmorethan$60million

•Continueddriving strongglobalcontrollership,includingsuccessfullytransitioningchangeinfiscalyear,and finance systemstandardization throughenterpriseresourceplanningsystemrolloutsacrossbusinessunits

•Ledongoing scenarioplanning toensuredeliveryof2025-2028financialtargetsthroughvariousmacroeconomic environments

Mr.Allouche

•Led enterprisestrategy,includingevolvingstrategicprioritiesandadvancingportfolioshiftobjectives

•Refreshedandexpanded M&Apipeline,executingmultiplelettersofintent,completingacquisitionofTaylorAdhesives, refreshingventurecapitalprogramandmakingfiveventureinvestments

•Servedas primarystrategicadvisortoCEO,buildingonnewframeworkforportfolioevolutionandenhancingcrossbusinesscollaborationinpartnershipwithMaterialsPresidentandIntelligentLabelsPresident

•Progressedfunctional succession andcapabilities

•Servedas InterimCFO throughMarch2025

•Finalized2024auditanddeveloped2025annualoperatingplan

•Maintainedstrongbalancesheetanddisciplinedcapitalallocation,balancingfirstquarterinvestmentsinbusinesses, dividendsandsharerepurchases

Mr.Yost

•Led MaterialsGroup inadvancinglong-termstrategies

•Delivered above-averagegrowthinhigh-valuecategories,implementingmulti-yearstrategiestodrivefuturegrowth andbeginningtointegrateTaylorAdhesives

•Navigatedchallengingexternalmarketconditions,includingimpactoftariffs,todeliver volumegrowthinbase businesses byimplementingproductivityactionsandpricingstrategiestodeliverearningsgrowth

•Generated strongadjustedfreecashflow despitechallengingoperatingenvironment

•Evolved Materialsleadershipteam withdeeperexpertiseininnovation,operations,procurementandstrategyusing regionaloperatingmodeltodrivetargetedexecution

•Led FutureofPackagingAdvisoryCouncil,informinginnovationprioritiestohelpsolvechallengesinconsumer packagedgoodsecosystem

•Expanded SustainableADvantageportfolio toimproverecyclingofwasteandhelpbrandscomplywithincreasing recyclabilityrequirements

Ms.Baker-Nel

•Led enterprisehumanresources,communicationsandcommunityinvestmentteams

•Coordinated newdirectorsearchprocess,whichculminatedinBoardappointmentofDavidFlitmaninJuly2025

•Guided seniorleaderorganizationaltransitions,includinghiringandonboardingnewChiefDigitalOfficer

•AdvancedCompanyLeadershipTeam successionplanninganddevelopment

•Continuedtoenhance workplaceculture,includingbyembeddingenterprisecompetencymodelinkeypeoplepractices andimplementingnew,morerobustglobaltalentmanagementsystem

•SupportedCompensationCommitteeinevaluating executivecompensation programandpreparingtoimplement aligned-uponchangesfor2026

•Developedenterprise HRscorecard ofexpectedstrategicoutcomes,providingtransparencyandenablingcontinuous evaluationofprogress

Mr.Walker

•Led enterpriselaw,includinglegal,riskmanagement,compliance,environmental,healthandsafety,andgovernment relationsteams

•Advisedon M&Aandotherstrategictransactions,marketexpansionandinvestments,intellectualpropertystrategy andportfoliovaluecreation,footprintoptimizationandlitigationmanagement

•Advancedfunctional operationalexcellence byimplementingcontractlifecyclemanagementsystem,accelerating digitalenablementandoptimizingoutsidecounselspend

•Strengthened productandsocialcompliance, dataprivacy,third-partyriskmanagementandphysicalsecuritytobetter protectpeople,assetsandoperations

•Developed,engagedandbuilt legalsuccession benchstrength

BasedontheseassessmentsandaftergivingconsiderationtotherecommendationsofourCEO(otherthanwith respecttohimself), theCommitteeapprovedAIPindividualmodifiersof100%forallNEOs

AIPAwards

OurNEOsreceivedtheAIPawardsfor2025shownbelow.

2025AIPAWARDS

Stander$1,150,000135%$1,552,50039%100%$605,475

Lovins$838,50075%$628,87539%100%$245,261

Allouche(1) $587,46660%$352,48039%100%$137,467

Yost$567,00060%$340,20046%100%$156,492

Baker-Nel$570,00060%$342,00039%100%$133,380

Walker$562,05750%$281,02939%100%$109,601

(1) AmountsforMr.AllouchewereconvertedfromIsraelishekelsusingtheaveragemonthlyexchangerateforDecember2025.

OtherCashAwards

Mr.Allouchereceivedaone-timecashbonusof$250,000forhiscontributionsasInterimCFO.

LTIAwards

OurLTIprogramprovidesvariableincentivecompensationtoenhancealignmentofexecutiveinterestswith stockholderinterestsanddrivelong-termvaluecreation. TheannualLTIawardsgrantedtoNEOswerefully performancebased anddeliveredthroughtheequityvehiclesdescribedbelow.

•50%inPUsthatcliff-vestattheendofathree-yearperiodsubjecttotheachievementoftherespective cumulativeEVAandrelativeTSRperformanceobjectivesestablishedfortheaward

•50%inMSUsthatvestattheendoftheone-,two-,three-andfour-yearperformanceperiods,withanaverage performanceperiodof2.5years,basedonourabsoluteTSR

Amounts,ifany,realizedfromthevestingoftheseLTIawardswillbebasedonourperformanceandstockpriceat thetimeofvesting.TheCommitteedoesnotoffsetthelossorgainofprioryeargrantsindeterminingcurrentyeargrants, asdoingsowouldcompromisetheintendedrisk/rewardnatureoftheseincentives.

SpecialLTIawardsmaybegrantedbytheCommitteeforhiring,promotion,retentionandotherincentivepurposes.

TargetLTIOpportunity

ChangestoNEOtargetLTIawardopportunitiesapprovedbytheCommitteearedescribedinthe2025Executive CompensationSummary.

2025TARGETLTIOPPORTUNITIES

PerformanceUnits(PUs)

PUscliff-vestinsharesofourcommonstockaftertheendofathree-yearperiodatthreshold(50%payout),target (100%payout)andmaximum(200%payout)levelsbasedonourachievementoftheperformanceobjectivesestablished fortheaward.PUsdonotaccruedividendequivalentsandarenotcountedforpurposesofourstockownershippolicy.

TheCommitteeestablishedthefollowingperformanceobjectivesforthe2025-2027PUs.TheCommitteebelieves thattheseobjectivesalignexecutivecompensationwiththelong-terminterestsofourstockholdersbecausedelivering cumulativeEVAandstrongTSRrelativetopeercompaniesreflectsthevaluewecreateforourinvestors.

• CumulativeEVA,weighted50%forCorporateNEOs(basedoncompanyEVA)and75%forourBusiness NEO(basedonMaterials’EVA). EVAiscalculatedbydeductingtheeconomiccostassociatedwiththeuseof capital(weightedaveragecostofcapitalmultipliedbyaverageinvestedcapital)fromafter-taxoperatingprofit, withthecostofcapitalfixedovertheperformanceperiod. ForcompanycumulativeEVA,thetargetpayoutwas basedonachievingour2021-2025saleschangeex.currencyandadjustedEBITDAmargingoals,withthe maximumpayoutbasedonachievingallofour2021-2025goalsgivingconsiderationtotheimpactof inventorydestockingin2023. EVAtargetsforourBusinessNEOfocusedonMaterials’EVAchangecompared tothepriorthree-yearperiod.Whetherlinkedtocompanyorbusinessresults,achievementof2025-2027 cumulativeEVAtargetsrequiressignificantimprovementinfinancialperformance.

• RelativeTSR,weighted50%forCorporateNEOsand25%forourBusinessNEO. TheCommitteedesigned theTSRobjectivetoproviderealizedcompensationonlyifourstockholdervaluecreationcomparesfavorably relativetothedesignatedpeergroup,thenamesofwhicharelistedunder PeerGroups laterinthisCD&A.The CommitteesetthethresholdpayoutatTSRatthe40th percentile,targetpayoutatTSRatthe50th percentileand maximumpayoutatTSRatthe80th percentile,whichwerethesamelevelsusedforthe2024-2026PUs. PayoutsfortherelativeTSRcomponentofPUsarecappedat100%oftargetifourabsoluteTSRoverthe performanceperiodisnegative. InassessingtherigoroftheTSRobjectives,theCommitteenotedthat performingatthemedianrelativetopeersoverthe2025-2027periodwouldrepresentsolidperformancein lightofthen-anticipatedheadwindsfromforeigncurrencyfluctuationsandtheunknowntimingoflabeland apparelindustryrecovery.

2025-2027PUs

NEOsPerformanceObjectivesWeighting

Market-leveragedStockUnits(MSUs)

MSUsareperformance-basedLTIawardstiedtoourabsoluteTSR.MSUsvestbasedontheperformanceperiods shownbelow,withthenumberofsharespaidoutatvestingbasedonourabsoluteTSRandthevaluerealizedreflecting boththenumberofsharespaidoutaswellasourstockprice.AlthoughdividendequivalentsaccrueonMSUsduringthe performanceperiod,theyareearnedandpaidonlyatvesting;ifthethresholdlevelofperformanceisnotachieved,any dividendequivalentsaccruedduringtheperformanceperiodarecancelledwiththetrancheofawardssubjecttovesting.

TheperformancecriteriaforMSUsareshownbelow.TheCommitteedeterminedtomaintainthesameMSU performanceobjectivesfor2025becausetheyhadbeenachievingtheCommittee’sgoalofincentingstrongperformance andvaluecreation. MSUswillnolongerbepartoftheannualLTIprogrambeginningin2026.

MSUPERFORMANCEPERIODS

First25% 1-Year

Second25% 2-Year

Third25% 3-Year

Fourth25% 4-Year

AVERAGEPERFORMANCEPERIOD=2.5YEARS

AnnualLTIAwards

MSUPERFORMANCECRITERIA

OurNEOsweregrantedtheannualLTIawardsshowninthetablebelowinMarch2025.Unlessotherwiseindicated, thenumberofawardsgrantedwasbasedontherespectiveNEO’s2024year-endbasesalaryandtargetLTIopportunity.

ThenumberofPUsgrantedfortheEVAcomponentwasbasedontheaverageclosingpriceforsharesofour commonstockduringthefirsttentradingdaysofFebruary2025andthenumbersofPUsgrantedfortherelativeTSR componentandMSUsgrantedwerebasedongrantdatefairvalueusingtheMonte-Carlosimulationmethoddescribed infootnote(3)ofthe2025SummaryCompensationTable.

2025ANNUALLTIAWARDS

YE2024 BaseSalary TargetLTI OpportunityPUs(#)PUs($)MSUs(#)MSUs($)LTIValue Stander$1,100,000700%21,052$3,799,24720,226$3,850,183$7,649,430 Lovins$806,250250%5,511$994,5665,295$1,008,024$2,002,590 Allouche(1)(2)

$520,839180%2,564$462,7252,463$468,939$931,664 Yost$525,000180%3,109$555,8082,979$567,162$1,122,970 Baker-Nel(2)

$570,000180%2,805$506,2192,695$513,101$1,019,320 Walker$510,960130%1,816$327,7331,745$332,201$659,934

(1) AmountsforMr.AllouchewereconvertedfromIsraelishekelsusingtheaveragemonthlyexchangerateforDecember2024. (2) ThebasesalariesshownandusedtocalculatetheawardsgrantedtoMr.AlloucheandMs.Baker-Nelwereasofthegrantdateratherthanatyear-end2024.

SpecialLTIAwardsforPromotions

InconnectionwiththeirpromotiontoLevel2NEOs,Mr.AlloucheandMs.Baker-Nelwereeachgrantedaspecial one-timeawardofRSUswithatargetgrantdatefairvalueof$500,000thatcliff-vestsonthethirdanniversaryofthe grantdate.ThenumberofRSUsgrantedwasdeterminedbasedontheclosingpriceofourcommonstockonthegrant date,adjustedforforegonedividends.

2025SPECIALLTIAWARDS

RSUs(#)LTIValue Allouche2,673$473,353 Baker-Nel2,673$473,353

2023-2025PUs

TheannualawardofPUsgrantedtoourNEOsforthethree-yearperformanceperiodendingin2025wereeligibleto vestbased(i)forourCorporateNEOs,50%oncompanycumulativeEVAand50%onrelativeTSRcomparedtoapeer groupofcompaniesthenamesofwhicharelistedunder PeerGroups laterinthisCD&A;and(ii)forourBusinessNEO, whowasthenaleaderinwhatisnowSolutionsGroup,75%onthatbusiness’cumulativeEVAand25%onrelativeTSR. Thekeygoal-settingprincipleinsettingcompanycumulativeEVAtargetswasconsistencywithour2021-2025 financialtargetsforearningsgrowthandROTC,whichtheCommitteebelievestranslatesintodeliveringaboveaverageTSR.

ThecompanycumulativeEVAtargetof$1,379millionwasconsistentwithourlong-termfinancialgoalsforsales growthandoperatingmarginexpansionandrecognizedthatincreasingsalesandoperatingmargin,togetherwith balancesheetefficiency,arekeydriversofEVAimprovement.OurcompanycumulativeEVAtargetwas12%higherthan thecumulativeEVAwedeliveredinthethree-yearperiodendingin2022.ThecompanycumulativeEVAof $1,509millionrequiredformaximumpayoutrequiredachievementofour2021-2025financialtargets.Asshownbelow, wedeliveredcompanycumulativeEVAof$1,085millionforthe2023-2025performanceperiod,notachievingthe $1,249millionthresholdlevelofperformanceandresultinginnopayoutforthatperformanceobjectiveforCorporate NEOs

2023-2025PUs:COMPANYCUMULATIVEEVA

(1) AdjustedEBITisanon-GAAPfinancialmeasuredefinedandreconciledfromGAAPinAppendixAofthisproxystatement.

(2) GAAPtaxratesfor2023,2024and2025were27.6%,26.1%and25.6%,respectively.Taxesareshownbasedon adjustedtaxratesof25.8%,25.9%and25.5%for2023,2024and2025,respectively.Theadjustedtaxraterepresentsthe full-yearGAAPtaxrate,adjustedtoexcludecertainunusualor infrequenteventsthatsignificantlyimpactthatrate,suchas effectsofcertaindiscretetaxplanningactions,impactsrelatingtoenactmentsofcomprehensivetaxlawchanges,andother items.

(3) 8.5%ofaverageinvestedcapitalof$5.27billionin2023,$5.24billionin2024and$5.45billionin2025,ineachcaseusing anannualfive-pointaverage(DecemberofprioryearandMarch,June,SeptemberandDecemberofcurrentyear)ofshortandlong-termdebtplusequity,adjustedtoexcludetheimpactofacquisitionscompletedsincethetargetwasset.

Solutions’cumulativeEVAforthe2023-2025performanceperiodalsodidnotachievethethresholdlevelof performance,resultinginnopayoutonthatperformanceobjectiveforourBusinessNEO.EVAtargetsandresultsatthe businesslevelarenotdisclosedduetotheircompetitivelysensitivenature.

RelativeTSRforthe2023-2025performanceperiodwasatthe54th percentileofthedesignatedpeergroup, whichresultedinapayoutof112%oftargetforthatperformanceobjectiveforallNEOs.

2023-2025PUs:

2023-2025PUs:

The2023-2025PUspaidoutat56%oftargetforCorporateNEOsand28%oftargetforourBusinessNEO.

MSUsEligibleforVestingatYE2025

FourtranchesofMSUswereeligibleforvestingattheendof2025basedonourabsoluteTSRforthefour-,three-, two-andone-yearperformanceperiodsshownbelow,withthenumberofsharespaidoutatvestingdeterminedin accordancewiththeformulashownbelow.

Stockpriceatsettlement(avg.closing pricefortradingdaysofJanuary2026) + reinvesteddividendsduringperiod

Stockpriceatgrant(avg.closingpricefor tradingdaysofJanuaryofyearofgrant) = Payoutatvesting

4TH TRANCHEOFMSUsGRANTEDIN20223RD TRANCHEOFMSUsGRANTEDIN2023

Performanceperiodof4yearsPerformanceperiodof3years 2022-2025AbsoluteTSRof(3.4%)2023-2025AbsoluteTSRof4.0% Paidoutat92%oftargetPaidoutat96%oftarget

2ND TRANCHEOFMSUsGRANTEDIN20241ST TRANCHEOFMSUsGRANTEDIN2025

Performanceperiodof2yearsPerformanceperiodof1year 2024-2025AbsoluteTSRof(2.8%)2025AbsoluteTSRof0.2% Paidoutat92%oftargetPaidoutat94%oftarget

2022-2025SpecialPUsforBusinessNEO

In2022,Mr.YostwasgrantedaspecialLTIawardof2022-2025PUswithatargetgrantdatefairvalueof $1,000,000,whichwaseligibletocliff-vestatyear-end2025basedonenterpriseIntelligentLabelscompoundannual salesgrowthex.currencyandcumulativeadjustedEBITA.Thethresholdlevelofperformancewasnotachievedforeither oftheperformanceobjectives,resultinginnopayoutforthesePUs.Targetsandresultsforthisawardarenotdisclosed duetotheircompetitivelysensitivenature.

Perquisites

OurNEOsreceivetheperquisitesshowninthechartbelow.Wedonotreimbursethemforthetaxconsequencesof theirreceiptoftheseperquisites.

LIMITEDPERQUISITES

ExecutiveBenefitAllowance

FinancialPlanning

ExecutivePhysical

GeneralBenefits

NonqualifiedDeferredCompensationBenefits

Annualallowanceof$70,000forCEO,$65,000forLevel2NEOsand $50,000forLevel3NEO;amountstaxablewithnogross-up

Annualreimbursementofupto$25,000forCEOand$15,000forLevel2 NEOs;taxablewithnogross-up

Paidupto$7,500/yeardirectlytoserviceprovider;nottaxable

OurU.S.NEOsareeligibletoparticipateinournonqualifieddeferredcompensationplan,whichallowseligibleU.S. employeestodeferupto75%oftheirbasesalaryandupto90%oftheirAIPaward.Theplanprovidesparticipantswith along-termcapitalaccumulationopportunitybecausedeferredamountsaccumulateonapre-taxbasis.Participantsmay selectfromanumberofinvestmentoptions,withdeferrals100%vested. Ourdeferredcompensationplandoesnot offerabove-marketinterestrates.

Ourcompanymadeacontributioneffectiveasofthefirstbusinessdayof2025tothedeferredcompensation accountsofeligibleparticipantsfor(i)401(k)eligiblepayin2024inexcessoftheInternalRevenueCodeof1986,as amended(the“Code”)compensationlimitand(ii)theirrespectivedeferredcompensationdeferrals.Thisannual contribution,whichisdesignedtosupplement401(k)contributionsthatarelimitedundertheCode,providesan automaticcontributionof3%ofdeferredandeligiblepayandamatchingcontributionofupto50%ofthefirst7%of deferrableandeligiblepayabovetheCodecompensationlimit.

ForadditionalinformationregardingourdeferredcompensationplanandaccruedNEObenefitsthereunder,seethe 2025NonqualifiedDeferredCompensationtable.

Pension/RetirementBenefits

SubjecttothesametermsandconditionsasourothereligibleU.S.employees,Mr.LovinsisouronlyNEOeligiblefor pensionbenefitsunderourbenefitrestorationplan,anonqualifiedexcessbenefitplan.Becausetheaccrualofbenefits underthebenefitrestorationplanwasfrozenasofyear-end2010,hedidnotaccrueadditionalpensionbenefitsduring 2025.ForadditionalinformationregardingthebenefitrestorationplanandaccruedNEObenefitsthereunder,seethe 2025PensionBenefitstable.

Mr.Allouchehasnon-pensionretirementbenefitsundercertainfundsrequiredbyIsraelilaw.Companycontributions tothesefundsaredisclosedintheAllOtherCompensationcolumnofthe2025SummaryCompensationTable.

DefinedContributionBenefits

OurU.S.NEOsareeligibletoparticipateinouremployeesavingsplan,aqualified401(k)planthatallowsU.S. employeestodeferupto100%oftheireligibleearningslesspayrolldeductionsonapre-taxbasisand25%oftheir eligibleearningsonanafter-taxbasis,subjecttotheannuallimitprescribedbytheInternalRevenueServiceforthe aggregateofcompanycontributionsandemployeepre-andpost-taxcontributions.Employeecontributionsare immediatelyvested.In2025,wecontributedupto6.5%ofanemployee’seligiblecompensation,3%ofwhichwasan automaticcontributionandupto3.5%ofwhichwasamatchingcontributionof50%oftheemployee’scontributionsup to7%ofpay,subjecttotheCodecompensationlimit.Participantsvestincompanycontributionsaftertwoyearsof service.

AllU.S.NEOsparticipatedinthesavingsplanin2025,subjecttothesametermsandconditionsasourotherU.S. employees,andarefullyvested.

ExecutiveLifeInsuranceBenefits

Inadditiontothe$50,000inlifeinsurancebenefitsweprovidetoallU.S.employees,ourU.S.executivesareprovided withsupplementallifeinsurancebenefitsequaltothreetimestheirbasesalaryless$50,000,uptoamaximumcoverage amountof$1million.

ExecutiveLong-TermDisabilityInsuranceBenefits

Iftheyelecttoenrollinexecutivelong-termdisabilitycoverage,ourU.S.executiveshavelong-termdisabilitybenefits equalto65%oftheireligiblepre-disabilitymonthlyearningsuptoamaximumof$25,000permonth.Coverageis availableonlyfortheindividual;dependentsarenotcovered.

ExecutiveExcessLiabilityInsuranceBenefits

Weprovide$3millionofpersonalexcessliabilityinsurancecoveragetoourU.S.executives.Personalexcessliability coveragesupplementstheindividual’spersonalliabilityinsuranceprovidedthattheymaintaincertainminimumcoverage requirements.

CharitableMatchBenefits

Wematchupto$10,000ofourCEO’sand$5,000ofourotherNEOs’annualdocumentedcontributionstocharitable organizationsoreducationalinstitutions.

TerminationBenefits

Consistentwithmarketpractices,theCommitteebelievesthatprovidingexecutiveswithterminationbenefitshelps ensurethattheyactinthebestinterestsofourcompanyandstockholders,evenwheredoingsomaybecontrarytotheir personalinterests,suchaswhereitcouldleadtoachangeofcontrolofourcompany.

SubjecttoourExecutiveOfficerCashSeverancePolicy,thecompensationofourNEOsintheeventofterminationnot forcauseisgovernedbyourAmendedandRestatedExecutiveSeverancePlan(the“SeverancePlan”)and,asapplicable, ourAmendedandRestatedKeyEmployeeChangeofControlSeverancePlan(the“COCSeverancePlan”).Weusethese plansratherthanindividuallynegotiatedagreementstoallowustochangetheterminationbenefitsforwhichapplicable NEOsareeligiblewithouttheneedtoobtaintheirindividualconsent.Inaddition,thisplan-basedapproacheliminatesthe needtoindividuallynegotiatearrangementsandensuresthateligibleNEOsreceiveseveranceandotherbenefitsonthe

sametermsandconditionsasemployeeswithsimilarlevelsofresponsibility.Receiptofbenefitsundertheseplansis conditionedontheexecutivesigningawaiverandgeneralreleaseofclaimsagainstourcompany,aswellasagreeingto certainrestrictivecovenantsinfavorofourcompany.Anyviolationofthesecovenantscouldresultinourcompany seekingtorecoversomeorallseverancebenefitspreviouslypaidorpursuinganyotherclaimsthatmaybeappropriate underthecircumstances.

Unvestedequityawardsoutstandingonthedateofterminationaregenerallycancelled,exceptforemployeeswho qualifyasretirementeligibleunderthetermsofourequityplan,whoseawardsareaccelerateduponterminationof service.Mr.StanderandMs.Baker-NelweretheonlyNEOswhoqualifiedasretirementeligibleatyear-end2025.

ForadditionalinformationregardingourExecutiveOfficerCashSeverancePolicyandpotentialNEObenefitsunder theseplans,includingthetreatmentofequityawardsundervariousterminationscenarios,seethePaymentsUpon TerminationasofDecember31,2025table.

BenefitsFollowingInvoluntaryTerminationNotforCause

OurNEOsareeligibletoreceiveseveranceandotherbenefitsuponinvoluntaryterminationnotfor“cause”in accordancewiththetermsandconditionsoftheSeverancePlan. Intheeventofaqualifyingtermination,ourCEO wouldreceiveseveranceoftwotimesthesumofhisannualsalaryandtargetAIPaward;ourotherNEOswould receiveseveranceofonetimetheirrespectivesumoftheseamounts. Inaddition,theywouldreceivenon-severance benefitsof(i)twotimesandonetime,respectively,ofthecashvalueof12monthsoftheirqualifiedmedicalanddental insurancepremiumsand(ii)upto$25,000inoutplacementservicesforoneyearfollowingterminationofemployment. AnypaymentsmadeundertheSeverancePlanwouldbeoffsetbyanypaymentsreceivedbytheNEOunderany statutory,legislativeandregulatoryrequirementor,ifapplicable,theCOCSeverancePlan.

BenefitsFollowingChangeofControl

OnlyourCEOandLevel2NEOsareeligibletoreceiveenhancedseveranceandotherbenefitsuponterminationnot forcauseorbytheexecutiveforgoodreasonwithin24monthsofachangeofcontrolofourcompany,inaccordance withthetermsandconditionsoftheCOCSeverancePlan. Intheeventofaqualifyingterminationfollowingachange ofcontrol,ourCEOwouldreceiveseveranceof2.99timesthesumofhisannualsalaryandtargetAIPawardandour Level2NEOswouldreceiveseveranceoftwotimestheirrespectivesumoftheseamounts. Inaddition,theywould receivenon-severancebenefitsof(i)theirproratedtargetAIPawardfortheyearoftermination;(ii)2.99andtwotimes, respectively,ofthecashvalueof12monthsoftheirqualifiedmedicalanddentalinsurancepremiums;and(iii)upto $25,000inoutplacementservicesforoneyearfollowingterminationofemployment.AnypaymentsundertheCOC SeverancePlanwouldbeoffsetbyanypaymentsreceivedbytheNEOundertheSeverancePlanandanyotherstatutory, legislativeandregulatoryrequirement.Intheeventofterminationfollowingachangeofcontrol,ourLevel3NEOwould beentitledtoreceivebenefitsundertheSeverancePlandescribedabove.

NEOsarenoteligibletoreceiveanyexcisetaxgross-uponamountspayableundertheCOCSeverancePlan.Ifthe NEOwouldotherwiseincurexcisetaxesunderSection4999oftheCode,paymentsundertheCOCSeverancePlan wouldbereducedsothatnoexcisetaxeswouldbedueifthereductionresultsinagreaterafter-taxbenefittotheNEO.

Underourequityplan,unvestedawardswouldgenerallyvestifourNEOsareterminatedwithoutcauseorresignfor goodreasonwithin24monthsafterthechangeofcontrol.OutstandingPUsandMSUsvestbasedonactual performance,ifdeterminable,andotherwisebasedontargetperformance.

COMPENSATION-SETTINGTOOLS

MarketData

TheCommitteeannuallyconsidersmarketsurveydataofbasesalary,incentivecompensationandtargetTDC, consideringcompaniesofsimilarsizebasedonannualrevenuesacrossallindustriestoreflectthebroadtalentmarket acrosswhichweseekourexecutives.TheCommitteereviewsresultsfromathirdpartytoassessmarket competitiveness,narrowingthescopeoftheresultstoaccountforvariationscausedbycompanysize.TheCommittee reviewsthedataonanaggregatedbasis,withnoconsiderationofthesurvey’scomponentcompanies,whicharenot determinedorknownbytheCommittee.

InFebruary2025,theCommitteeutilizeddatafromthemostrecentWTWGeneralIndustryExecutiveCompensation Surveyforcompanieswithannualrevenuesbetween$6billionand$10billion.Inaddition,recognizingourcompany’s growthtrajectoryandtop-quartileperformanceinrecentyears,attheCommittee’srequest,WTWusedregression analysistoprojectmarketratesforcorporateleadershiprolesatcompanieswithannualrevenuesof$10billion.

InassessingmarketcompetitivenesstosettargetTDC,theCommitteeusedtheregressionanalysisdataforourCEO; boththebroadersurveyandregressionanalysisdataforourotherCorporateNEOs;andbroadersurveydataforU.S.basedleadersofbusinesseswithannualrevenuesofgreaterthan$5billionforourBusinessNEO.

TallySheets

TheCommitteeannuallyreviewstallysheetsthatreflectthecomponentsofeachNEO’scompensation.Thetally sheetsreviewedinFebruary2026includedtheinformationshownbelowforeachofourmostrecentthreefiscalyears.

•Cashcompensation(basesalaryandAIPawards),LTIawards,valueofvestedLTIawards,andcostofbenefits andperquisites

•Valueofannualcompensation,includingbasesalary,AIPawardandgrantdatefairvalueofLTIawards

•Accumulatedvalueofcompensation,includingoutstandingLTIawards,compliancewithourstockownership policy,andaccumulatedbenefitvaluesunderpensionanddeferredcompensationplans

•Potentialpaymentsundervariousterminationscenarios

PeerGroups

ForpurposesofidentifyingthedesignatedpeergrouptodeterminerelativeTSRforthe2023-2025PUsand20252027PUs,theCommitteeusedthefollowingobjectivecriteria:publiccompaniesprimarilylistedonaU.S.stockexchange (i)insimilarindustriesbasedontheirclassificationinfiveGICSgroups(diversifiedchemicals,specialtychemicals,metal andglasscontainers,paperandplasticpackagingproducts,andpaperproducts);(ii)withmarketcapitalizationofatleast $1.5billionandrevenuesduringthelast12monthsbetween$3billionand$30billion;and(iii)nobankruptciesinthelast threeyears.

RELATIVETSRPEERGROUP*

AlbermarleCorporation

AmcorPLC

AptarGroup,Inc.

ArdaghMetalPackagingS.A.

AvientCorporation

AxaltaCoatingSystemsLtd.

BallCorporation

CelaneseCorporation

CrownHoldings,Inc. DupontdeNemours,Inc. EastmanChemicalCompany EcolabInc.

GraphicPackagingInternationalLLC Greif,Inc.

H.B.FullerCompany HuntsmanCorporation InternationalFlavors&Fragrances,Inc. InternationalPaperCompany O-IGlass,Inc. PackagingCorporationofAmerica PPGIndustries,Inc. RPMInternationalInc.

SealedAirCorporation SilganHoldingsInc. SonocoProductsCompany

SylvamoCorporation TheChemoursCompany

TheSherwin-WilliamsCompany

*Thepeergroupforthe2025-2027PUsalsoincludedSmurfit-WestrockplcandSociedadQuimicayMinera deChileS.A.

INDEPENDENTOVERSIGHTANDEXPERTISE

OurBoardbelievesthatretainingourexecutivesandprovidingthemwithmarket-competitivecompensationare criticaltothesuccessofourcompanyandadvancingtheinterestsofourstockholders.TheCommittee,whichis composedsolelyofindependentdirectors,isresponsibleforapprovingexecutivecompensation.

Underitscharter,theCommitteemayretainandterminateanycompensationconsultantorotherexternaladvisorat ourexpenseandhassoleauthoritytoapprovetheadvisor’sfeesandothertermsandconditionsoftheretention.The Committeeannuallyconsiderstheindependenceofitsadvisors.

CompensationConsultantServices

During2025,theCommittee’sprimarycompensationconsultantwasWTW,withthefirmperformingtheregular servicesdescribedbelowfororattherequestoftheCommitteeandreceiving$161,350incompensation.WTWalso received$323,485forbilledservicesinconnectionwiththeCommittee’sexecutivecompensationprogramreview,as wellasreimbursementofitsreasonableout-of-pocketexpenses.SemlerBrossy,anotherindependentcompensation consultantengagedtosupporttheCommittee’sreviewofourexecutivecompensationprogram,received$109,738in compensation,aswellasreimbursementofitsreasonableout-of-pocketexpenses.

2025WTWREGULARSERVICES

•BenchmarkedCEOcompensationandprovideddatatobenchmarkcompensationofothercorporateleaders,includingInterimCFO

•AssessedChairmancompensation(includingunvestedequityanalysis)andnon-employeedirectorCommitteeandAdvisoryCouncilcompensation

•Providedincentivecompensationadvice(includingrecommendingpeergroupformeasuringrelativeTSRcomponentofPUs)

•ConductedanalysesofshareutilizationandstockholdervaluetransferrelatedtoLTIcompensation

•CommentedonCD&Aandcertainotherproxystatementdisclosures

•Analyzedproxyadvisoryfirm’sprojectedpay-for-performanceanalysis

•Reviewedchangeofcontrolseveranceplansinlightofshareholderproposal

•Assessedourclawbackpolicy

•Preparedfor,attendedandrevieweddocumentationforCommitteemeetings

TheCommitteeperformeditsannualassessmentofWTW’sperformanceinNovember2025,whichincludedan evaluationoftheservicedeliveryprovidedbythefirmandengagementteamduringtheyear,aswellastheirexperience, independence,preparationandrelationshipwiththeCommittee.TheCommitteeChairdiscussedwiththeleadmembers oftheengagementteamtheCommittee’sfeedbackontheirperformance.

AfterworkingwithbothWTWandSemlerBrossyinconductingits2025executivecompensationprogram review–andrecognizingthat,whileWTWhadperformedwellduringits20-yeartenureastheCommittee’s compensationconsultant,goodgovernanceprinciplessupportperiodicadvisortransition–theCommittee determinedtochangeitsindependentcompensationconsultant,engagingSemlerBrossyinNovember2025, withWTWprovidingtransitionsupportasneededthroughMarch2026.

CompensationConsultantIndependence

TheCommitteehasthefollowingprotocolstoensureitsconsultants’independencefrommanagement:the Committeehasthesoleauthoritytoselect,retainandterminateanyconsultantand,actingthroughitsChair,authorize thefirm’sfees,determinethetermsandconditionsthatgoverntheengagementanddirectanyconsultantonthedelivery andcommunicationofitsworkproduct;intheperformanceandevaluationofitsduties,anyconsultantisaccountable, andreportsdirectly,totheCommittee;andmembersoftheCommitteemayconsultwithanyconsultantatanytime,with orwithoutmembersofmanagementpresent,intheirsolediscretion.

TheCommitteeconsideredtheindependenceofitsadvisorsinNovember2025,notingthebelowfactorsregarding theindependenceofthecompensationconsultantsengagedduringtheyear.

COMPENSATIONCONSULTANTINDEPENDENCE

ConsiderationsWTWSemlerBrossy

AnyotherservicesprovidedtoourcompanyWTWperformedminimalotherservicesfor ourcompanyin2025outsideofthe servicesitperformedfororattherequestof theCommittee

Ourcompany’sfeesaspercentageoffirm’s totalrevenue

Advisor’spoliciesandprocedurestoprevent conflictsofinterest

Feesfromourcompanyrepresentedless than0.005%ofits2025revenue

Haspoliciesandprocedurestoensureits adviceisobjectiveandindependent, includingacomprehensivecodeofconduct, ethicsandqualitypoliciesthatmandate rigorousworkreviewsandperiodic compliancereviews,andconsulting protocolstoensureobjectivity

None

Feesfromourcompanyrepresentedless than1%ofits2025revenue

Maintainsformalpoliciesandproceduresto preventconflictsofinterestandensurethe objectivityofitscompensationconsulting work

Businessorpersonalrelationshipsbetween membersofadvisor’sengagementteam withCommitteemembers None*None*

Ownershipbymembersofadvisor’s engagementteaminourcompany,other thanpotentiallythroughinvestmentsin mutualorotherfundsmanagedwithoutthe member’sinput NoneNone

Knownbusinessorpersonalrelationships betweenmembersofadvisor’sengagement teamoritsfirmwithourexecutiveofficers None*None*

*Basedondisclosuresfromtherespectivefirm,membersoftheCommitteeandourexecutiveofficers.

COMPENSATIONCLAWBACKPOLICIES

OurPolicyforRecoveryofErroneouslyAwardedCompensation(“Section16Clawback”)appliestoourcurrentand formerexecutiveofficers,includingallNEOs,andsubjectstheirincentive-basedcompensationreceivedonorafter October2,2023toclawbackintheeventourcompanyisrequiredtoprepareanaccountingrestatementtocorrect materialnoncompliancewithanyfinancialreportingrequirementunderU.S.securitieslaws,includingrestatementsthat correctanerrorinpreviouslyissuedfinancialstatementsthat(i)ismaterialtothepreviouslyissuedfinancialstatements or(ii)wouldresultinamaterialmisstatementiftheerrorwerecorrectedorleftuncorrectedinthecurrentperiod.Inthese circumstances,theSection16Clawbackrequiresourcompanytorecover,reasonablypromptly,theportionofincentivebasedcompensationthatisdeemedtohavebeenerroneouslyawarded,unlesstheCommittee(whichadministersthe policy)determinesthatrecoverywouldbeimpracticableandthatoneormoreoftheallowableimpracticabilityconditions underSECruleshasbeenmet.Recoveryisrequiredwhetherornottheapplicableofficerengagedinmisconductor otherwisecausedorcontributedtotherequirementfortherestatement. Eachofourexecutiveofficers,includingall NEOs,hasagreedtothetermsoftheSection16Clawbackandacknowledgedthattheircompensationmaybe subjecttoreduction,cancellation,forfeitureand/orrecoupment.

AtthetimeitrecommendedtoourBoardtheadoptionoftheSection16Clawback,theCommitteerecommended thatourexistingclawbackpolicyremainineffect.ThisclawbackpolicyapplicabletoallAIPandLTIrecipientsrequires that,intheeventoffraudorotherintentionalmisconductonthepartofanawardeethatnecessitatesarestatementof ourfinancialresults(including,withoutlimitation,anyaccountingrestatementduetomaterialnoncompliancewithany financialreportingrequirement),theCommitteemayrequirethattheawardeereimburseourcompanyforanyAIPorLTI awards,includingtime-vestingLTIawards,paidorissuedinexcessoftheamountthatwouldhavebeenpaidorissued basedontherestatedfinancialresults. Thismorewidelyapplicableclawbackpolicyhasbeenexpresslyincorporated intoourAIPandLTIplansandiscontractuallyagreedtobyLTIrecipients,includingallNEOs,intheirannualaward agreements.

EQUITYGRANTPRACTICES

Wedonotgrantequityawardsinanticipationofthereleaseofmaterialnonpublicinformationortimethereleaseof materialnonpublicinformationforthepurposeofaffectingthevalueofexecutivecompensation.Intheeventmaterial nonpublicinformationweretobecomeknowntotheCommitteebeforethegrantofanequityaward,theCommittee wouldconsidertheinformationanduseitsbusinessjudgmenttodeterminewhethertodelaythegranttoavoidany appearanceofimpropriety.

WegenerallygrantourannualLTIawardsonthefirstdayofMarch;specialLTIawardsaregrantedonthefirstdayof March,June,SeptemberandDecember.In2025,wedidnotgrantanystockoptions,stockappreciationrightsorsimilar option-likeinstrumentstoourNEOs.

TALENTANDCOMPENSATIONCOMMITTEEREPORT

TheTalentandCompensationCommittee(referredtointhisreportasthe“Committee”)ofourBoardhasreviewed anddiscussedtheCompensationDiscussionandAnalysis(CD&A)requiredbyItem402(b)ofRegulationS-Kwith managementand,basedonitsreviewandthosediscussions,hasrecommendedtoourBoardthattheCD&Abeincluded inour2026proxystatementandincorporatedbyreferenceintoour2025AnnualReport.

TheCommitteewelcomesfeedbackregardingourexecutivecompensationprogram.Stockholdersmaycommunicate withtheCommitteebywritingtotheCompensationCommitteeChair,c/oCorporateSecretary,8080NortonParkway, Mentor,Ohio44060.

BradleyAlford,ChairDavidFlitmanAndresLopezFrancescaReverberi

Thisreportisnot“solicitingmaterial,”isnotdeemed“filed”withtheSEC,andisnottobeincorporatedbyreference intoanyfilingbyourcompanyundertheSecuritiesActof1933(the“SecuritiesAct”)ortheExchangeAct,whethermade beforeorafterthedateofthisproxystatementandregardlessofanygeneralincorporationlanguageinanysuchfiling.

EXECUTIVECOMPENSATIONTABLES

2025SUMMARYCOMPENSATIONTABLE

DeonM.Stander

2025$1,136,538–$7,649,430–$605,475–$146,932$9,538,375 President&2024$1,100,000–$6,643,355–$1,960,200–$149,817$9,853,372 ChiefExecutiveOfficer2023$844,231–$2,071,369$3,000,025$0–$155,337$6,070,962

GregoryS.Lovins(6) 2025$810,867–$2,002,590–$245,261$1,724$120,618$3,181,060 SVP&2024$730,056–$1,887,374–$665,130$1,721$136,045$3,420,326 ChiefFinancialOfficer2023$736,539–$3,156,886–$0$821$156,649$4,050,895

DannyG.Allouche(6)(7) 2025$547,592$250,000$1,405,017–$137,467–$160,905$2,500,981 SVP&ChiefStrategyand2024$448,530–$517,283–$298,916–$125,422$1,390,151 CorporateDevelopment Officer;formerInterimCFO

RyanD.Yost(6) 2025$555,692–$1,122,970–$156,492–$114,581$1,949,735 President,MaterialsGroup2024$501,442–$1,928,833–$472,500–$97,710$3,000,485 DeenaBaker-Nel(6) 2025$562,154–$1,492,673–$133,380–$151,513$2,339,720 SVP&Chief2024$518,646–$690,688–$349,272–$197,506$1,756,112 HumanResourcesOfficer2023$481,277–$1,120,641–$0–$114,973$1,716,891 IgnacioJ.Walker(6) 2025$548,300–$659,934–$109,601–$92,141$1,409,976 SVP&ChiefLegalOfficer

(1) SalaryincreasesgenerallybecomeeffectiveinAprilunlessarolechangeoccursatadifferenttimeofyear.The2025basesalaryincreasesforMr.Alloucheand Ms.Baker-NelbecameeffectiveinMarchinconnectionwiththeirpromotiontoLevel2NEOs.

(2) Amountin2025forMr.Allouchereflectsaone-timecashbonusforhiscontributionsasInterimCFO.

(3) Amountsin2025includethegrantdatefairvalueofPUs,whichareeligibletovestattheendofathree-yearperiodbasedontheachievementofthe designatedperformanceobjectivesasoftheendoftheperiod.Thenumberofsharesvestingcanrangefrom0%to200%ofthetargetunitsonthegrantdate TheperformanceobjectivesthatdeterminethenumberofsharesearnedatvestingforthePUsgrantedtoCorporateNEOs(Ms.Baker-NelandMessrs.Stander, Lovins,AlloucheandWalker)arecompanycumulativeEVA(weighted50%),whichisaperformanceconditionunderASC718,andrelativeTSR(weighted 50%),comparedtoadesignatedpeergroup,whichisamarketconditionunderASC718,ineachcasecalculatedoverthe2025-2027performanceperiod.For ourBusinessNEO(Mr.Yost),theperformanceobjectivesareMaterials’cumulativeEVA(weighted75%)andrelativeTSR(weighted25%),ineachcase calculatedoverthe2025-2027performanceperiod.Grantdatefairvaluesoftheperformanceconditioncomponentweredeterminedbasedonthefairmarket valueofourcommonstockonthegrantdate,adjustedforforegonedividendsduringtheperformanceperiod.Maximumgrantdatefairvaluesofthe performanceconditioncomponentofPUswere$499,385,$3,748,573,$981,415,$456,530,$828,058and$323,361forMs.Baker-NelandMessrs.Stander, Lovins,Allouche,YostandWalker,respectively.GrantdatefairvaluesofthemarketconditioncomponentweredeterminedusingtheMonte-Carlosimulation method,whichutilizesmultipleinputvariablestoestimatetheprobabilityofachievingtheperformanceobjectivesestablishedfortheaward,includingthe expectedvolatilityofourstockpricerelativetothedesignatedpeergroupattheendoftheperformanceperiodandarisk-freeinterestrateof4.24% derived fromlinearinterpolationofthetermstructureofTreasuryConstantMaturitiesyieldratesfortheperiod.BasedontheMonte-Carlosimulationmethod,grantdate fairvaluesofthemarketconditioncomponentofPUswere99.96%ofouraveragestockpriceonthegrantdate.Grantdatefairvaluesofthemarketcondition componentofPUswere$256,527,$1,924,961,$503,859,$234,460,$141,779and$166,053forMs.Baker-NelandMessrs.Stander,Lovins,Allouche,Yost andWalker,respectively.

Amountsin2025alsoincludethegrantdatefairvalueofMSUs,whichareeligibletovestoverone-,two-,three-andfour-yearperformanceperiodsprovided thatthedesignatedperformanceobjectiveisachievedasoftheendofeachperiod.Thenumberofsharesearnedatvestingcanrangefrom0%to200%of one-quarterofthetargetunitsonthegrantdatebasedonabsoluteTSR,whichisamarketconditionunderASC718.ThegrantdatefairvalueofMSUswas 103.47%ofouraveragestockpriceonthegrantdatedeterminedusingtheMonte-Carlosimulationmethodbasedonrisk-freeinterestratesof4.17%,4.20%, 4.24%and4.27%forthefirst,second,thirdandfourthMSUtranches,respectively.GrantdatefairvaluesofMSUswere$513,101,$3,850,183,$1,008,024, $468,939,$567,162and$332,201forMs.Baker-NelandMessrs.Stander,Lovins,Allouche,YostandWalker,respectively.Maximumgrantdatefairvalues werethesameastargetgrantdatefairvalues.

Amountsin2025forMs.Baker-NelandMr.AlloucheincludethegrantdatefairvalueofRSUs,whichcliff-vestonthethirdanniversaryofthegrantdate.These RSUshadagrantdatefairvalueof$473,353basedontheclosingpriceofourcommonstockonthegrantdate,adjustedforforegonedividends.

(4) AmountsreflectAIPawardsfortheapplicableyear,whicharedeterminedinFebruaryandpaidinMarchofthefollowingyear.

(5) Thetablebelowshowsthecomponentsoftheseamountsfor2025.

Stander$70,000$3,024–$22,750$37,713$2,066$2,619$6,726$2,034$146,932 Lovins$65,000––$22,750$22,773$1,500$2,619$3,942$2,034$120,618 Allouche–$6,340$27,288$122,277**–$5,000–––$160,905 Yost$65,000$2,534–$22,750$17,284–$533$4,446$2,034$114,581 Baker-Nel$62,115$7,490$31,469$22,750$11,310$5,000$2,619$6,726$2,034$151,513 Walker$50,000–$3,075$22,750$10,466–$282$3,534$2,034$92,141

*AmountforMr.Allouchereflectsautomobileallowanceof$21,730andpaymentforexecutivephysicalof$5,558.AmountforMs.Baker-Nelreflectstaxservicesandtax equalizationpaymentsrelatedtoher2018-2020internationalassignmentintheNetherlands,ontermsandconditionssubstantiallysimilartothoseforourotherexpatriate employees.AmountforMr.Walkerreflectspaymentforexecutivephysical.

**AmountsrepresentcompanycontributionsintoretirementfundsrequiredbyIsraelilaw.

(6) Mr.WalkerreturnedasanNEOfor2025(havinglastbeenanNEOfor2022)andMessrs.AlloucheandYostfirstbecameNEOsfor2024.AspermittedbySEC rules,thetableshowstheircompensationbeginningintheyearinwhichtheyreturnedasorbecameNEOs.Mr.LovinswentonmedicalleaveinNovember2024 andreturnedtohisroleasCFOinApril2025;Mr.AlloucheceasedservingasInterimCFOinMarch2025.BecauseMs.Baker-NelwasalsoanNEOfor2023,her compensationfor2024,whilenotpreviouslyreported,hasbeenincludedinaccordancewithSECrules.

(7) Exceptforthebonusdescribedinfootnote(2)above,amountsforMr.AllouchewereconvertedfromIsraelishekelsusingtheaveragemonthlyexchange ratefor 2025.

EstimatedFuturePayouts UnderNon-Equity IncentivePlanAwards($)(1)

EstimatedFuturePayouts UnderEquity IncentivePlanAwards(#)(2)

AllOther Stock Awards: Numberof Sharesof Stockor Units(#)(3) Exerciseor BasePrice ofOption Awards($)

GrantDate FairValue ofStock andOption Awards($)(4)

Name Award Type Grant DateThresholdTargetMaximumThresholdTargetMaximum DeonM.Stander MSUs3/1/25–––17,19220,22640,452––$3,850,183 PUs3/1/25–––10,52621,05242,104––$3,799,247 AIPAward–$310,500$1,552,500$3,105,000––––––GregoryS.Lovins MSUs3/1/25–––4,5015,29510,590––$1,008,024 PUs3/1/25–––2,7565,51111,022––$994,566 AIPAward–$125,775$628,875$1,257,750––––––DannyG.Allouche MSUs3/1/25–––2,0942,4634,926––$468,939 PUs3/1/25–––1,2822,5645,128––$462,725 RSUs3/1/25––––––2,673–$473,353 AIPAward–$70,496$352,480$704,960––––––RyanD.Yost MSUs3/1/25–––2,5322,9795,958––$567,162 PUs3/1/25–––1,5553,1096,218––$555,808 AIPAward–$68,040$340,200$680,400––––––DeenaBaker-Nel MSUs3/1/25–––2,2912,6955,390––$513,101 PUs3/1/25–––1,4032,8055,610––$506,219 RSUs3/1/25––––––2,673–$473,353 AIPAward–$68,400$342,000$684,000––––––

IgnacioJ.Walker MSUs3/1/25–––1,4831,7453,490––$332,201 PUs3/1/25–––9081,8163,632––$327,733 AIPAward–$56,206$281,029$562,058––––––(1) Amountsrepresentthreshold,targetandmaximumopportunitiesunderthe2025AIP.TargetAIPawardsweredeterminedbymultiplyingeachNEO’s2025 year-endbasesalarybythefollowingtargetopportunities:135%forMr.Stander;75%forMr.Lovins;60%forMs.Baker-NelandMessrs.AlloucheandYost;and 50%forMr.Walker.TheAIPpayoutforCorporateNEOs(Ms.Baker-NelandMessrs.Stander,Allouche,LovinsandWalker)rangesfromzeroforbelow-threshold performancewithrespecttoeachoftheperformanceobjectives;20%forthresholdperformancebasedonathresholdof0%fortheadjustedEPSperformance objectiveandathresholdof50%fortheadjustedsalesgrowthandadjustedfreecashflowperformanceobjectives;100%fortargetperformancewithrespectto eachoftheperformanceobjectives;and200%formaximumperformancewithrespecttoeachoftheperformanceobjectives.TheAIPpayoutforMr.Yostranges fromzeroforbelow-thresholdperformancewithrespecttoeachoftheperformanceobjectives;20%forthresholdperformancebasedonthresholdsof0%forthe adjustedEPSandadjustedEBITDAperformanceobjectivesand50%fortheadjustedsalesgrowthandadjustedfreecashflowperformanceobjectives;100%for targetperformancewithrespecttoeachoftheperformanceobjectives;and200%formaximumperformancewithrespecttoeachoftheperformanceobjectives. AmountsforMr.AllouchewereconvertedfromIsraelishekelsusingtheaveragemonthlyexchangerateforDecember2025.

(2) AmountsforMSUsrepresentthreshold,targetandmaximumopportunities,whicharepaidoutinsharesofourcommonstockoverone-,two-,three-andfouryearperformanceperiodsprovidedthattheabsoluteTSRperformanceobjectiveisachievedasoftheendofeachperiod.Thenumberofsharesvestingranges from0%to200%ofone-quarterofthetargetnumberofunitsonthegrantdate,withathresholdpayoutof85%.MSUsaccruedividendequivalentsduringthe performanceperiod,whichareearnedonlyatvesting.

AmountsforPUsrepresentthreshold,targetandmaximumopportunities,whicharepaidoutinsharesofourcommonstockattheendofthethree-year performanceperiodprovidedthattherespectivecumulativeEVAandrelativeTSRperformanceobjectivesareachievedattheendoftheperiod.CumulativeEVA isweighted50%forCorporateNEOs(basedoncompanyEVA)and75%forourBusinessNEO(basedonMaterials’EVA);relativeTSRisweighted50%for CorporateNEOsand25%forourBusinessNEO.Thenumberofsharesvestingrangesfrom0%to200%ofthetargetnumberofunitsonthegrantdate,witha payoutof50%ifthresholdperformanceisachievedwithrespecttoeachoftheperformanceobjectives.

(3) AmountsrepresentRSUsawardedtoMs.Baker-NelandMr.AlloucheinconnectionwiththeirpromotiontoLevel2NEOs,whichcliff-vestonthethird anniversaryofthegrantdate.

(4) Formoreinformationonhowwedeterminegrantdatefairvalues,seefootnote(3)ofthe2025SummaryCompensationTable.Additionalinformationregarding theassumptionsweuseforstock-basedcompensationcanbefoundinNote12,“Long-TermIncentiveCompensation,”totheconsolidatedfinancialstatements containedinour2025AnnualReport.

Name Grant Date

Numberof Securities Underlying Unexercised Options–Exercisable(#)

Numberof

Number ofShares orUnits ofStock That HaveNot Vested (#) Market Valueof Sharesor Unitsof StockThat HaveNot Vested($)(1) Equity Incentive PlanAwards: Numberof Unearned Shares,Unitsor OtherRights ThatHaveNot Vested(#) Equity Incentive PlanAwards: Marketor PayoutValue ofUnearned Shares,Unitsor OtherRightsThat HaveNot Vested($)(1)

DeonM.Stander 3/1/22––––––1,836(2) $333,932 3/1/23––––––3,100(3) $563,828 3/1/23––––––2,827(2) $514,175 9/1/23–62,955$190.5409/01/33––––3/1/24––––––14,497(3) $2,636,714 3/1/24––––––9,701(2) $1,764,418 3/1/25––––––31,520(3) $5,732,857 3/1/25––––––40,578(2) $7,380,327 –62,955––104,059$18,926,251

GregoryS.Lovins 3/1/22––––––1,446(2) $262,999 3/1/23––––––2,584(3) $469,978 3/1/23––––––2,356(2) $428,509 3/1/23––––8,230(4) $1,496,872––3/1/24––––––4,119(3) $749,164 3/1/24––––––2,756(2) $501,261 3/1/25––––––8,251(3) $1,500,692 3/1/25––––––10,623(2) $1,932,111 ––8,230$1,496,87232,135$5,844,714

DannyG.Allouche 3/1/22––––––469(2) $85,302 3/1/23––––––791(3) $143,867 3/1/23––––––722(2) $131,317 3/1/24––––––1,129(3) $205,343 3/1/24––––––750(2) $136,410 3/1/25––––––3,839(3) $698,237 3/1/25––––––4,941(2) $898,669 3/1/25––––2,673(4) $486,165––––2,673$486,16512,641$2,299,145

RyanD.Yost 3/1/22––––––5,274(3) $959,235 3/1/22––––––168(2) $30,556 3/1/23––––––250(3) $45,470 3/1/23––––––456(2) $82,937 3/1/24––––––3,961(3) $720,427 3/1/24––––––1,318(3) $239,718 3/1/24––––––1,390(2) $252,813 3/1/24––––3,234(4) $588,200––3/1/25––––––3,880(3) $705,694 3/1/25––––––5,977(2) $1,087,097 ––3,234$588,20022,674$4,123,947

DeenaBaker-Nel

3/1/22––––––434(2) $78,936 3/1/23––––––811(3) $147,505 3/1/23––––––740(2) $134,591 3/1/24––––––1,507(3) $274,093 3/1/24––––––1,009(2) $183,517 3/1/25––––––4,200(3) $763,896 3/1/25––––––5,407(2) $983,425 3/1/25––––2,673(4) $486,165––––2,673$486,16514,108$2,565,963

IgnacioJ.Walker 3/1/22––––––446(2) $81,118 3/1/23––––––829(3) $150,778 3/1/23––––––757(2) $137,683 3/1/24––––––1,295(3) $235,535 3/1/24––––––867(2) $157,690 3/1/25––––––2,719(3) $494,532 3/1/25––––––3,501(2) $636,762 ––––10,414$1,894,098

(1) Marketvaluecalculatedusingthe$181.88closingpriceofourcommonstockonDecember31,2025.

(2) MSUsareeligibletovestoverone-,two-,three-andfour-yearperformanceperiods,subjecttoachievementoftheabsoluteTSRperformanceobjective.Amountsareshownat (i)92%,96%,92%and94%oftargetforthetranchesoftheMSUsgrantedin2022,2023,2024and2025,respectively,vestingatfiscalyear-end,whichwerethepayouts basedonperformanceasdeterminedbytheCompensationCommitteeinFebruary2026,and(ii)thetargetlevelofperformancefortheremainingtranchesoftheMSUs grantedin2023,2024and2025asperformancethroughfiscal-yearendwouldresultinbelow-targetpayouts.

(3) PUsareeligibletovestattheendofathree-yearperformanceperiod,subjecttoachievementoftherespectivecumulativeEVAandrelativeTSRperformanceobjectives, exceptforMr.Yost’sspecialawardof2022-2025PUs,whichwassubjecttoachievementofcompoundsalesgrowthex.currencyandcumulativeadjustedEBITAperformance objectivestiedtoourIntelligentLabelsbusinessandeligibletovestattheendofafour-yearperformanceperiod.AmountsfortherespectivecumulativeEVAcomponentof 2023-2025PUsreflect0%oftargetforallNEOs,whichwasthepayoutbasedonperformancedeterminedbytheCompensationCommitteeinFebruary2026.Amountsfor therespectivecumulativeEVAcomponentof(i)2024-2026PUsreflectthetargetlevelofperformanceforCorporateNEOsasperformancethroughfiscal-yearendwould resultinbelow-targetpayoutsandthemaximumlevelofperformanceforourBusinessNEOasperformancethroughfiscal-yearendwouldresultinanabove-targetpayout and(ii)2025-2027PUsreflectthetargetlevelofperformanceforallNEOsasperformancethroughfiscal-yearendwouldresultinbelow-targetpayouts.Amountsforthe relativeTSRcomponentof2023-2025PUsreflect112%oftargetforallNEOs,whichwasthepayoutbasedonperformancedeterminedbytheCompensationCommitteein February2026.AmountsfortherelativeTSRcomponentof2024-2026PUsforallNEOsandMr.Yost’sspecialawardof2024-2026PUsreflectthetargetlevelof performanceasperformancethroughfiscalyear-endwouldresultinatorbelow-targetpayouts.AmountsfortherelativeTSRcomponentof2025-2027PUsforallNEOs reflectthemaximumlevelofperformanceasperformancethroughfiscalyear-endwouldresultinabove-targetpayouts.Mr.Yost’sspecialawardof2022-2025PUsare excludedfromthetablebecausethethresholdlevelofperformancewasnotachievedforeitheroftheperformanceobjectives,resultinginapayoutof 0%oftarget,as determinedbytheCompensationCommitteeinFebruary2026.

(4) RSUsawardedtoMs.Baker-NelandMessrs.Lovins,AlloucheandYostcliff-vestonthethirdanniversaryofthegrantdate.

2025OPTIONEXERCISESANDSTOCKVESTED

ThetablebelowprovidesinformationregardingthenumberofsharesacquiredandthevaluerealizedbyourNEOs upontheexerciseofoptionawardsandvestingofstockawardsduring2025.

DeonM.Stander ––18,900$3,535,434

GregoryS.Lovins ––7,108$1,329,622

DannyG.Allouche ––5,515$1,002,897

RyanD.Yost ––4,025$752,917

DeenaBaker-Nel ––5,517$1,003,271

IgnacioJ.Walker ––2,228$416,770

(1) Amountsreflectthenumberofsharesacquiredonvestingmultipliedbythefairmarketvalueofourcommonstockonthevestingdate.ForvestingMSUs, amountsincludethepayoutofaccrueddividendequivalents.

2025PENSIONBENEFITS

Thepresentvalueofaccumulatedpensionbenefitshowninthetablebelowreflectsthelump-sumpresentvalueof pensionbenefitsaccumulatedasofDecember31,2025usingtheassumptionsweusedtocalculateourpensionbenefit obligationsintheconsolidatedfinancialstatementscontainedinour2025AnnualReport.OurotherNEOsareexcluded fromthetablebecausetheyhavenoaccumulatedpensionbenefits.

GregoryS.Lovins BenefitRestorationPlan15.58$33,899–

BenefitRestorationPlan

OurBenefitRestorationPlan(BRP)isanonqualifiedexcessbenefitplanthatprovidessupplementalretirement benefitstoeligibleparticipantsequaltotheamountbywhichtheirbenefitspayableunderourformerU.S.pensionplan wouldhavebeenreducedundertheCode.Mr.LovinsisouronlyNEOeligibletoreceivebenefitsundertheBRP.No accrualsweremadeduring2025astheplanwasfrozenin2010.

CompensationcoveredbytheBRPincludesbasesalaryandAIPawardsthroughthedatetheplanwasfrozen,upto applicablestatutorylimitationseachplanyear.EligibleemployeesvestedintheBRPafterfiveyearsofservice,oratage 55uponterminationofemployment.BenefitsundertheBRParebasedonpensionableearnings,lengthofservice,when benefitscommenceandhowtheyarepaid.Benefitsarecalculatedseparatelyforeachyearofapplicableserviceusinga formulaequalto1.25%timescompensationuptothebreakpoint(whichforeachyearpriortoourfreezingtheaccrualof additionalbenefitswastheaverageoftheSocialSecuritywagebasesforthepreceding35years)plus1.75%times compensationinexcessofthebreakpoint.Theresultsofthecalculationforeachyearofserviceareaddedtogetherto determinetheannualsinglelifeannuitybenefitundertheBRPforanemployeeatretirementatage65,whichisnot subjecttoreductionforSocialSecuritypayments.Paymentsaremadeinalump-sumdistributiongenerallypayableupon thelaterofseparationfromserviceandage55,unlessatimelyelectionismadeformonthlypaymentsoverthelifetimeof theparticipantand,ifapplicable,adesignatedbeneficiary.

2025NONQUALIFIEDDEFERREDCOMPENSATION

ThetablebelowprovidesinformationregardingexecutiveandcompanycontributionstoourExecutiveVariable DeferredRetirementPlan(EVDRP).UndertheEVDRP,participantsmaychooseamongpubliclyavailablefundsranging frommoneymarketandbondfundstoindexandotherequity/mutualfunds.Theirrateofreturndependsonthefunds theyselect.

Asanon-U.S.NEO,Mr.AlloucheisnotcurrentlyeligibletoparticipateintheEVDRP;however,hehasabalancefrom whenhelivedintheU.S.

Name

DeonM.Stander

Balanceat LastFYE($)(2)

$505,694$37,713$366,896$2,882,340

GregoryS.Lovins –$22,773$160,722$1,152,993

DannyG.Allouche ––$38,036$195,440

RyanD.Yost

$37,235$17,284$13,364$169,525

DeenaBaker-Nel $91,742$11,310$168,036$1,361,346

IgnacioJ.Walker –$10,466$21,384$205,929

(1) CompanycontributionstotheEVDRPareincludedintheAllOtherCompensationcolumnofthe2025SummaryCompensationTable.

(2) AmountsreflectEVDRPvestedaccountbalancesasofDecember31,2025.Becausetheamountsdonotrepresentabove-marketearnings,theyarenotreported inthe2025SummaryCompensationTable.TheamountsshownbelowwerereportedintheAllOtherCompensationcolumnofSummaryCompensationTables inpreviousproxystatements.

Name AggregateCompanyContributions PreviouslyReported($)

Stander$272,200

Lovins$309,892

Yost$10,881

Baker-Nel$90,383 Walker$62,724

ExecutiveVariableDeferredRetirementPlan

UndertheEVDRP,eligibleU.S.employeescandeferupto75%oftheirsalaryand90%oftheirAIPaward.Deferrals areimmediatelyvested.Earningsarebasedonafixedrateand/ortheperformanceofvariablebondandequityfunds selectedbytheparticipantfromtheavailableoptions. TheEVDRPdoesnotofferinvestmentoptionsthatprovide above-marketinterestrates.

Eligibleemployeesareabletodefertaxesuntiltheirdeferralsarewithdrawn,providingthemanopportunityto accumulatesavingsonapre-taxbasis.Wealsobenefitfromthisarrangementbecausewecanusethiscashforother purposesuntiladeferredcompensationaccountispaidtoaparticipantbasedonhisorherelectiontoreceive withdrawalseitherin-serviceorafterterminationofemployment. Alldeferredcompensationaccountsareunfunded obligationsofourcompanyandsubjecttothesamerisksasanyofourgeneraldebtsandobligations.Asaresult, theseaccountshelpmitigaterisk-seekingbehaviorbymanagementthatcouldbedetrimentaltothelong-termhealth ofourcompany.

Asofthefirstbusinessdayofour2025fiscalyear,wemadeacontributiontothedeferredcompensationaccountsof eligibleparticipants,includingallU.S.NEOs,basedon401(k)eligiblepayinexcessofthefederalcompensationlimitand deferredcompensationin2024.Thisannualcontribution,whichisdesignatedtosupplement401(k)contributionsthat arelimitedundertheCode,providesanautomaticcontributionof3%ofdeferredandeligiblepayplusamatching contributionofupto50%onthefirst7%ofdeferrableandeligiblepaynotcoveredbycompanycontributionstoour 401(k)Plan.

Contributionstodeferredcompensationaccountsarerequiredtobedistributedfollowinganeligibleemployee’s separationfromservice.SubjecttoSection409AoftheCode,eligibleemployeesmayelecttoreceiveseparationfrom servicewithdrawalsintheformofalump-sumpaymentormonthlyinstallmentsovertwoto20years.Eligibleemployees maychangethemethodinwhichpaymentsaredistributedprovidedthattheydosoatleast12monthsbeforethedate ofdistribution;however,anychangeresultsinthedistributionoccurringorbeginningfiveyearslaterthanitwouldhave otherwise.AllNEOssubjecttoU.S.taxesare“specifiedemployees”underSection409A;asaresult,theirdistributions cannotbemadeuntilsevenmonthsafterseparationfromservice,exceptintheeventofdeath.

ThetablebelowshowsthepotentialbenefitsthatwouldhavebeenpayabletoourNEOshadtheybeenterminated onthelastdayofour2025fiscalyear.

TerminationScenariosasofEndofFiscalYear2025

Involuntary Termination Notfor Cause

Involuntary Termination within24Months ofChangeof Control

DeonM.Stander SeverancePayment–––$5,405,000$8,080,475 Medical/DentalPayment–––$63,526$94,971 Outplacement–––$25,000$25,000 UnvestedStockOptions(1) UnvestedPUs(1)

$1,757,810$1,757,810$663,404$663,404$6,465,652 UnvestedMSUs(1)

Total

$896,363$896,363$832,522$832,522$4,279,399

$2,654,173$2,654,173$1,495,926$6,989,452$18,945,497 EliminationofExciseTaxLiability––––$(3,123,203)

ForfeitedEquity(1)

$(8,090,878)$(8,090,878)$(9,249,125)$(9,249,125)–

GregoryS.Lovins SeverancePayment–––$1,467,375$2,934,750 Medical/DentalPayment–––$31,763$63,526 Outplacement–––$25,000$25,000 UnvestedRSUs(1)

$1,496,872$1,496,872––$1,496,872 UnvestedPUs(1) $499,442$499,442––$1,751,504 UnvestedMSUs(1) $362,623$362,623––$1,297,010

Total $2,358,937$2,358,937–$1,524,138$7,568,662

ForfeitedEquity(1) $(2,186,448)$(2,186,448)–$(4,545,387)–

DannyG.Allouche SeverancePayment–––$939,946$1,879,892 Medical/DentalPayment–––$9,591$19,182 Outplacement–––$25,000$25,000 UnvestedRSUs(1) ––––$486,165 UnvestedPUs(1) $136,895$136,895––$671,683 UnvestedMSUs(1) $104,938$104,938––$503,954

Total $241,833$241,833–$974,537$3,585,876 ForfeitedEquity(1) $(1,419,970)$(1,419,970)–$(1,661,802)–

RyanD.Yost SeverancePayment–––$907,200$1,814,400 Medical/DentalPayment–––$31,763$63,526 Outplacement–––$25,000$25,000 UnvestedRSUs(1) $588,200$588,200––$588,200 UnvestedPUs(1) $427,418$427,418––$1,206,592 UnvestedMSUs(1) $132,132$132,132––$629,590

Total $1,147,750$1,147,750–$963,963$4,327,308 EliminationofExciseTaxLiability––––$(2,992,896) ForfeitedEquity(1) $(1,276,632)$(1,276,632)–$(2,424,382)–

DeenaBaker-Nel SeverancePayment–––$912,000$1,824,000 Medical/DentalPayment–––$23,217$46,434 Outplacement–––$25,000$25,000 UnvestedRSUs(1) ––––$486,165 UnvestedPUs(1) $182,729$182,729$68,973$68,973$784,267 UnvestedMSUs(1) $124,373$124,373$116,486$116,486$569,151

Total

$307,102$307,102$185,459$1,145,676$3,735,017

ForfeitedEquity(1) $(1,532,482)$(1,532,482)$(1,654,124)$(1,654,124)–IgnacioJ.Walker SeverancePayment–––$843,086$843,086 Medical/DentalPayment–––$31,763$31,763 Outplacement–––$25,000$25,000

UnvestedPUs(1) $157,023$157,023––$565,829 UnvestedMSUs(1) $115,361$115,361––$420,884

Total

$272,384$272,384–$899,849$1,886,562

ForfeitedEquity(1) $(714,329)$(714,329)–$(986,713)–

(1) Valuesforequityawardsweredeterminedasfollows:(i)forstockoptions,thenumberofsharesthatwouldhavebeenexercisablemultipliedbythedifference betweenthe$181.88closingpriceofourcommonstockonDecember31,2025andtheexerciseprice;and(ii)forRSUs,PUsandMSUs,thenumberofshares thatwouldhavebeenacquiredorforfeitedonvestingmultipliedby$181.88.Mr.Stander’sstockoptionswerenotinthemoneyasofDecember31,2025.

(2) Ms.Baker-NelandMr.StanderweretheonlyNEOsthathadreachedtheageof55andhadover10yearsofservicewithourcompanyattheendoffiscalyear 2025.Becausetheyqualifiedasretirementeligible,ineveryterminationscenario,alloftheirunvestedequityawardswouldvest,withPUsandMSUs vestingona proratedbasisaftertheendoftheirrespectiveperformanceperiodbasedonactualperformance.

Intheeventoftermination,ourNEOswouldbeentitledtoreceiveanyaccruedbalanceundertheEVDRP,subjectto Section409AoftheCode.Theseamounts,whicharenotincludedinthetableabove,wouldbedistributedinaccordance withtheparticipant’sdistributionelectionandthetermsandconditionsoftheplan.See 2025NonqualifiedDeferred Compensation formoreinformation.

Theotherpotentialpaymentsuponterminationaredescribedbelow.

ExecutiveOfficerCashSeverancePolicy

TheCompensationCommitteeadoptedanExecutiveOfficerCashSeverancePolicyeffectiveJanuary31,2025 providingthatwewillnot(i)enterintoanynewemploymentagreementorseverancearrangementwithanexecutive officer(asdefinedundertheExchangeAct)ofourcompanyor(ii)establishanynewseveranceagreement,plan, arrangementorpolicycoveringanysuchofficer,ineachcaseafterthatdatethatprovidesforacashseverancepayment inconnectionwithanyterminationofhisorheremploymentexceeding2.99timesthesumofsuchofficer’sbasesalary plustargetAIPawardwithoutseekingstockholderratificationofsuchagreement,plan,arrangementorpolicy.

ExecutiveSeverancePlan

AllNEOsareeligibleparticipantsundertheSeverancePlan.Uponinvoluntaryterminationnotforcause,theywould beeligiblefortheseveranceandotherbenefitsshownbelow.

Severanceofbasesalary+targetAIPaward foryearoftermination

Non-severancebenefitofcashvalue of12monthsofmedicalanddental insurancepremiums

2 ForCEO

Outplacementservices ofupto$25,000 foruptooneyear ×+

1 ForotherNEOs

BenefitsNotSubjecttoGross-up. Benefitsaresubjecttowithholdingforallapplicabletaxesandnotgrossed-upfor taxes.

TriggerforBenefits. Involuntarytermination,whichexcludesterminationforcauseorduetodisability,death, voluntaryresignation,oranexecutivedecliningsimultaneousorcontinuingemploymentinacomparableposition.

DefinitionofCause. Causeisdefinedas(i)commissionofacrimeorotheractthatcouldmateriallydamagethe reputationofourcompanyoritssubsidiaries;(ii)theft,misappropriationorembezzlementofcompanyorsubsidiary property;(iii)falsificationofcompanyorsubsidiaryrecords;(iv)substantialfailuretocomplywithwrittenpoliciesand procedures;(v)misconduct;or(vi)substantialfailuretoperformmaterialjobdutiesnotcuredwithin30daysafterwritten notice.

KeyExecutiveChangeofControlSeverancePlan

TheCOCSeverancePlanprovidesenhancedterminationbenefitsforkeyexecutivestoincenttheirretentionduringa periodinwhichachangeofcontroltransactionisbeingnegotiatedorahostiletakeoverisbeingattempted.OurLevel1 and2NEOsaretheonlyeligibleparticipantsintheCOCSeverancePlan, whichentitlesthemtobenefitsonlyiftheyare terminatednotfor“cause”orterminateemploymentfor“goodreason”within24monthsofthechangeofcontrol(a “doubletrigger”).Inthesecircumstances,theseNEOswouldbeeligiblefortheseveranceandotherbenefitsshown below.Intheeventofterminationfollowingachangeofcontrol,ourLevel3NEOwouldbeeligiblefortermination benefitsundertheSeverancePlandescribedabove.

Severanceofbasesalary+targetAIPaward foryearoftermination

Non-severancebenefitofcashvalue of12monthsofmedicalanddental insurancepremiums × 2.99 ForCEO + ProratedtargetAIP awardforyearin whichtermination occurs + Outplacement servicesofupto $25,000forupto oneyear

2 ForLevel2NEOs

BenefitsNotSubjecttoGross-up. Benefitsaresubjecttowithholdingforallapplicabletaxesandnotgrossed-up forexciseorothertaxes. However,ifthepaymentwouldtriggeranexcisetax,theNEOcanelecttoreceive(i)full benefits,retainingresponsibilityforpayinganyapplicableexcisetaxes,or(ii)reducedbenefitstoanamountsufficientto eliminateanyexcisetaxliability.Inthe2025terminationpaymentstable,COCpaymentswouldhavetriggeredanexcise taxonlyforMessrs.StanderandYost.

DefinitionofChangeofControl. Changeofcontrolisdefinedas(i)replacementofamajorityofourBoardduringany 12-monthperiodbydirectorswhoseappointmentorelectionwasnotendorsedbyamajorityofthemembersofour Board;or(ii)acquisitionbyanyperson,grouporcorporationthathasenteredintoamerger,acquisition,consolidation, purchase,stockacquisition,assetacquisitionorsimilarbusinesstransactionwithourcompany,of(A)togetherwithany ofourcompany’sstockpreviouslyheld,morethan50%ofthetotalfairmarketvalueorthetotalvotingpowerofour company’sstock;(B)30%ormoreofthetotalvotingpowerofourcompany’sstockduringany12-monthperiod;or (C)assetsofourcompanyhavingatotalgrossfairmarketvalueof40%ormoreofthetotalgrossfairmarketvalueofall ofourcompany’sassetsduringany12-monthperiod.

DefinitionofCause. CauseisdefinedasitisundertheSeverancePlan.

DefinitionofGoodReason. Goodreasonisdefinedas(i)materialdiminutioninbasecompensation;(ii)material diminutioninauthority,dutiesorresponsibilitiesorsupervisor’sauthority,dutiesorresponsibilities;(iii)materialchangein geographicjoblocation;or(iv)anyotheractionorinactionthatconstitutesamaterialbreachbyourcompany.

EquityIncentivePlans

Underour2017IncentiveAwardPlanandequityawardagreements,unvestedawardsgrantedthrough December31,2025wouldvestonthedateofterminationasshownbelow,subjecttotheplan’sone-yearminimum vestingrequirement.Ms.Baker-NelandMr.StanderweretheonlyNEOswhoqualifiedasretirementeligibleatyear-end 2025.ThevestingofRSUsondeath,qualifyingdisabilityandqualifyingretirementwillbeproratedforeachapplicable vestingtrancheforawardsgrantedbeginningin2026.

VESTINGOFEQUITYAWARDSOUTSTANDINGATYE2025ONTERMINATIONEVENTS

Resignationor InvoluntaryTermination, WhetherorNotforCause

Death

QualifyingDisability

QualifyingRetirement

Vestattimeofevent onproratedbasis basedontarget performance

Vestattimeofevent onproratedbasis basedontarget performance

Vestafterendof performanceperiodon proratedbasisbased onactualperformance

Vestattimeofevent onproratedbasis basedontarget performance

Vestattimeofevent onproratedbasis basedontarget performance VestCancelled

Vestafterendof performanceperiodon proratedbasisbased onactualperformance

ChangeofControl(COC)

Vestbasedonactual, ifdeterminable,and otherwisetarget performanceif terminatedwithout causeorforgood reasonwithin 24monthsafterCOC

Vestbasedonactual, ifdeterminable,and otherwisetarget performanceif terminatedwithout causeorforgood reasonwithin 24monthsafterCOC

Vest Vestandexercisable fortermofoption

Vestifterminated withoutcauseorfor goodreasonwithin 24monthsafterCOC

Vestifterminated withoutcauseorfor goodreasonwithin 24monthsafterCOC

NumberofSecurities toBeIssuedUpon Exerciseof Outstanding Options,Warrants andRights(A)

Weighted-Average ExercisePriceof OutstandingOptions, WarrantsandRights(B)

NumberofSecurities RemainingAvailablefor FutureIssuanceUnder EquityCompensationPlans (ExcludingSecurities ReflectedinColumn(A))(C) Equitycompensationplansapprovedbysecurityholders 2017IncentiveAwardPlan(1)

552,719$190.541,906,101

Total552,719$190.541,906,101

(1) Webeganissuingawardsunderthe2017IncentiveAwardPlaninMay2017followingstockholderapprovaloftheplaninAprilofthatyear.Sharesissuableunder outstandingequityawardsgrantedundertheplaninclude(i)RSUsandDSUsfornon-employeedirectorsand(ii)RSUs,PUs,MSUsandstockoptionsforofficers andothereligibleemployees.Amountincolumn(A)includes100,443RSUs,26,593DSUs,172,870MSUs(reflectingtheawardsgrantedin2022,2023,2024 and2025andincludingaccrueddividendequivalents),189,858PUs(reflectingtheawardsgrantedin2023,2024and2025)and62,955stockoptions.For awardssubjecttovestingonDecember31,2025,payoutswerebasedonactualperformance.Forunvestedawardsasofthatdate,awardswithprojected performanceatorbelowtargetwerecalculatedatthetargetlevelofperformanceandawardswithprojectedperformanceabovetargetwerecalculated atthe maximumlevelofperformance.Amountincolumn(C)representstheaggregatenumberofsharesavailableforfutureissuance,witheachfull-valueaward reducingthenumberofsharesavailableforfutureissuanceby1.5shares.

PAYVS.PERFORMANCEDISCLOSURE

ThetablebelowshowsinformationregardingthecompensationofourNEOsandourfinancialperformanceforthe lastfivefiscalyearsinaccordancewithSECrules.

Year

2025

Summary Compensation TableTotal for Stander($)(1) Compensation ActuallyPaid to Stander($)(2) Summary Compensation TableTotal for Butier($)(1) Compensation ActuallyPaid to Butier($)(2) Average Summary Compensation TableTotal forNon-CEO NEOs($)(1)

Compensation ActuallyPaidto Non-CEO NEOs($)(2) ValueofInitialFixed$100 InvestmentsBasedon:

$9,538,375$6,257,992––$2,276,294$1,913,247$127.47$101.03$687,954,000$9.53

2024 $9,853,372$7,425,336––$3,102,488$1,321,463$155.20$136.22$704,936,000$9.43 2023 $6,070,962$7,216,077$9,700,108$10,879,032$2,107,852$351,353$165.02$118.91$502,988,000$7.90

2022 ––$9,107,739$7,588,568$2,405,277$2,220,289$145.19$110.49$757,092,000$9.15 2021 ––$12,433,721$31,508,041$2,342,467$5,263,092$170.89$134.41$740,087,000$8.91 (1) Foreachfiscalyear,representsamountreportedforourCEO(s)andaverageamountreportedforournon-CEONEOs,ineachcaseintheTotalcolumnofthe SummaryCompensationTable.OurNEOsforeachofthesefiscalyearsareshownbelow.

YearCEO(s)Non-CEONEOs 2025DeonStanderGregoryLovins,DannyAllouche,RyanYost,DeenaBaker-NelandIgnacioWalker 2024DeonStanderDannyAllouche,GregoryLovins,MitchellButier,FranciscoMeloandRyanYost 2023DeonStander/MitchellButierGregoryLovins,FranciscoMelo,DeenaBaker-NelandNicholasColisto 2022MitchellButierDeonStander,GregoryLovins,DeenaBaker-NelandIgnacioWalker 2021MitchellButierDeonStander,GregoryLovins,DeenaBaker-NelandIgnacioWalker

(2) AmountsrepresentCompensationActuallyPaidtoourCEO(s)ortheaverageCompensationActuallyPaidtoournon-CEONEOs,ineachcaseasreportedinthe TotalcolumnoftheSummaryCompensationTablefortheapplicablefiscalyear.For2025,amountswereadjustedasshownbelow.Fairvalueorchangeinfair value,asapplicable,ofequityawardswasdeterminedasfollows:(i)forRSUs,theclosingpriceofourcommonstockonthefiscalyear-enddate,or,in thecaseof vestingRSUs,theclosingpriceofourcommonstockontheapplicablevestingdate;(ii)fortheperformanceconditioncomponentofPUs,thesamevaluation methodologyasRSUsexceptthatyear-endvaluesweremultipliedbyafactorreflectingachievementoftheprobableoutcomeoftherespectivecumulativeEVA performanceobjectiveasoftheapplicablemeasurementdate;(iii)forthemarketconditioncomponentofPUsandforMSUs,usingtheMonte-Carlosimulation methodtoestimatetheprobabilityofachievingtherelativeandabsoluteTSRperformanceobjective,respectively,asoftheapplicablemeasurementdate;and (iv)forstockoptions,usingtheBlack-Scholespricingmodelasoftheapplicablemeasurementdate.ForinformationontheinputstoourMonte-Carlo simulations, seefootnote(3)toour2025SummaryCompensationTable.Forpurposesoftheseadjustments,awardstoretirement-eligibleNEOsareconsideredvestedonlyat thetimeofretirement.

2025AdjustmentsStander

Averageof Non-CEONEOs

DecreaseforamountsreportedunderStockAwardsandOptionAwardscolumnsin2025SummaryCompensationTable$(7,649,430)$(1,336,637)

IncreasebasedonASC718fairvalueofawardsgrantedduringfiscalyear2025thatremainedunvestedasoffiscalyear-end2025, determinedasoffiscalyear-end2025

Increase/DecreasebasedonASC718fairvalueofawardsgrantedduringfiscalyear2025thatvestedduringfiscalyear,determined asofvestingdate

7,559,9411,308,410

Decreaseforawardsgrantedduringpriorfiscalyearsthatwereoutstandingandunvestedasoffiscalyear-end2025,determined basedonchangeinASC718fairvaluefrompriorfiscalyear-endtofiscalyear-end2025(3,307,935)(320,592)

Increase/Decreaseforawardsgrantedduringpriorfiscalyearsthatvestedduringfiscalyear2025,determinedbasedonchangein ASC718fairvaluefrompriorfiscalyear-endtovestingdate

117,041(13,883)

DecreaseforchangeintheactuarialpresentvaluesreportedunderChangeinPensionValueandNQDCEarningscolumnof2025 SummaryCompensationTable –(345)

Increase/Decreaseforservicecostand,ifapplicable,priorservicecost,forpensionplans––TotalAdjustments $(3,280,383)$(363,047)

(3) PeerGrouprepresentstheDowJonesU.S.ContainersandPackagingIndex.

(4) AdjustedEPSisanon-GAAPfinancialmeasurereconciledfromGAAPinAppendixAofthisproxystatement.

RelationshipBetweenCompensationActuallyPaid(CAP)andFinancialPerformanceMeasures

ThegraphsbelowcomparetheCAPtoourCEO(s)andtheaverageCAPtoournon-CEONEOswithour(i)TSRand PeerGroupTSR,(ii)netincomeand(iii)adjustedEPS,ineachcaseforthelastfivefiscalyears.TSRamountsassume $100investedonDecember31,2020andreinvestmentofdividends.

ReflectingtheCompensationCommittee’sphilosophyofpayingforperformanceanddeliveringthemajorityof executivecompensationusingLTIawardsprimarilytiedtoourstockpriceandTSR,theCAPtoourNEOswas generallyalignedwithourTSRperformance. From2021to2022,CEOandaveragenon-CEONEOCAPwerealigned withourTSR.WhileourTSRmodestlyincreasedin2023andtheCAPtoMr.Butierincreasedaswell,theaverageCAP toournon-CEONEOsdecreasedduetotheimpactoftherequiredequityandpensionadjustments.OurTSRmodestly decreasedin2024,withtheCAPtoMr.StanderslightlyincreasinginhisfirstfullyearasCEOandtheaverageCAPto ournon-CEONEOssignificantlyincreasingprimarilyasaresultoftheinclusionofourExecutiveChairman,whose compensationwassubstantiallyhigherthanthatofourothernon-CEONEOs.In2025,Mr.Stander’sCAPandourTSR bothdecreased,whiletheaverageCAPtonon-CEONEOsmodestlyincreasedprimarilyduetothepromotionoftwo NEOs.WebelievethattheinclusionofbothabsoluteandrelativeTSRasperformanceobjectivesinourannualLTI awards,whichcomprisethemajorityoftheirtargetTDC,ensuresgeneralalignmentofCAPtoNEOswithourTSR performance.

Netincomeduringthe2021-2025perioddidnotdirectlyalignwithCAP,includingasaresultoftheimpacts describedabove.CAPislesssensitivetonetincomebecauseourexecutivecompensationprogramprioritizesLTIawards primarilytiedtoourstockpriceandTSRandsecondarilytocumulativeEVA,eachofwhichweexpectwillcontinueto haveamuchgreaterimpactonCAP.

OutsideofourTSRperformance,webelievethatadjustedEPSisthemostimportantfinancialmeasurethattiesthe compensationofNEOstoourperformance.AdjustedEPSistheprimarydriverofstockholdervaluecreation,themeasure weusetoprovideguidancetoourinvestors,andtheperformanceobjectivethatcomprises60%oftheAIPfinancial modifierforCorporateNEOs.Despiteitsimportance,theimpactofadjustedEPSonCAPismoderatedbythemuch strongercorrelationCAPhaswithourstockpriceandTSRperformanceasaresultofourexecutivecompensation program’semphasisonLTIawards.

Payvs.PerformanceFinancialPerformanceMeasures

Webelievethefinancialperformancemeasuresshownbelow,allofwhichareperformanceobjectivesusedinour executivecompensationprogram,werethemostimportantinlinkingCAPtoNEOstoourcompany’sfinancial performancefor2025.Foradditionalinformationregardingthesemeasures,includingreconciliationsofnon-GAAP financialmeasuresfromGAAP,seetheCD&AandAppendixAsectionsofthisproxystatement.

•AbsoluteandrelativeTSR

•AdjustedEPS

•CumulativeEVA

•Adjustedsalesgrowth

•Adjustedfreecashflow

CEOPAYRATIO

With69%ofour2025revenuesoriginatingoutsidetheU.S.andapproximately40%originatinginemergingmarkets (LatinAmerica,EasternEurope,MiddleEast/NorthernAfricaandmostcountriesinAsiaPacific),ouremployeesare locatedinmorethan50countriestobestserveourcustomers.Atyear-end2025,83%ofouremployeeswerelocated outsidetheU.S.and67%werelocatedinemergingmarkets,wheremediancompensationissubstantiallylowerthanitis intheU.S.

Thechartsbelowshowthedemographicsofourglobalworkforcebyregionandfunction.Atyear-end2025,nearly 20,000ofourapproximately35,000employeeswereinAsiaPacific,servingourcustomersintheregion.Inaddition, morethan24,000employeesatthattimeworkedintheoperationsofourmanufacturingfacilitiesorinpositionsdirectly supportingthemfromotherlocations.

WORKFORCE BY REGIONWORKFORCE BY FUNCTION*

*Reflects2025reclassificationofapproximately2,500 employeesfromNon-OperationstoOperations.

Weoffermarket-based,competitivewagesandbenefitsinthemarketswherewecompetefortalent.Allofour employeeswerepaidatleasttheapplicablelegalminimumwage,and98%ofouremployeeswerepaid above the applicablelegalminimumwage,atyear-end2025.

2025PAYRATIO

•The2025totalcompensationofourmedianemployee(amongallemployeesexceptourCEO)was$17,158.

•The2025totalcompensationofourCEO,asreportedintheTotalcolumnofthe2025SummaryCompensation Table,was$9,538,375.

•Basedonthisinformation,areasonableestimateofthe2025ratiooftheannualtotalcompensationofourCEO totheannualtotalcompensationofourmedianemployeeisapproximately556to1.

WecalculatedthisratiobasedonSECrulesandguidance,whichallowforcompaniestousevaryingmethodologies toidentifytheirmedianemployee.Othercompaniesmayhavedifferentworkforcedemographicsandemploymentand compensationpracticesandmayutilizedifferentmethodologies,exclusions,estimatesandassumptions.Asaresult,their CEOpayratiosmaynotmeaningfullycomparetoours.

IDENTIFICATIONOFMEDIANEMPLOYEE

Sincetherewerechangestoouremployeepopulationin2025,weidentifiedanewmedianemployeetocalculateour CEOpayratio.Toidentifythisemployee,weconsideredannualbasecompensation,whichistheprincipalcompensation elementforthevastmajorityofouremployees.WeselectedDecember15,2025asthedateonwhichtodetermineour medianemployee.Asofthatdate,wehad34,416employees,28,625ofwhichwerelocatedoutsidetheU.S.and22,998 ofwhichwerelocatedinemergingmarkets.Weutilizedthedeminimisexemptiontoexcludethefollowingcountries representingnomorethan5%ofourglobalpopulationintheaggregate:Kenya(16employees),Mauritius(18 employees),Pakistan(379employees),Indonesia(539employees)andSriLanka(551employees),representing approximately0.05%,0.05%,1.10%,1.57%and1.60%,respectively,ofourworkforceonthatdate.

Todetermineourmedianablegroup,weusedastatisticalsamplingapproachknownasstratifiedsamplingto concentrateonmedianableemployees,whichwerethosewithinanarrowrangeoftheestimatedmedianannualsalaryof $12,461,becausetheseemployeeswereallreasonablylikelytobeourmedianemployee.Weidentified389employees withanannualsalarywithin$500ofthisamount.BecauseemployeesfromChinarepresentedapproximately45%ofthe medianablegroup,wenarrowedthemedianablegrouptothose172employees.Finally,weidentifiedthe11employees whohadthepotentialtobeourmedianemployeebyanalyzingadditionalqualitativeandquantitativecharacteristics, includingpayvolatility.

MEDIANEMPLOYEECOMPENSATION

Wemeasuredourmedianemployee’scompensationfortheyearendedDecember31,2025makingnocost-of-living adjustments.Ourmedianemployeewasafull-time,salariedemployeeworkingatamanufacturingfacilityinChina,with 2025basecompensationof$12,675.Forpurposesofthisdisclosure,weconvertedtheemployee’sbasecompensation fromChineseYuantoU.S.dollarsusingtheaveragemonthlyexchangerateduring2025of0.13887368.

Todeterminethe2025totalcompensationof$17,158forourmedianemployee,wecalculatedtheemployee’s compensationconsistentwithhowwedeterminedourCEO’stotalcompensationinthe2025SummaryCompensation Table.

PROPOSAL3–RATIFICATIONOFAPPOINTMENTOF INDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TheAuditCommittee–whichisdirectlyresponsiblefortheappointment,compensation(includingauditand non-auditfees)andevaluationoftheindependentregisteredpublicaccountingfirmthatauditsourfinancialstatements andinternalcontroloverfinancialreporting–hasappointedPricewaterhouseCoopersLLP(PwC)forfiscalyear2026and ourBoardisseekingstockholderratificationoftheappointment.

StockholderratificationisnotrequiredbyourBylawsorapplicablelawsandregulations.However,ourBoard annuallysubmitstheappointmentforstockholderratificationaspartofourstronggovernanceprogram.Ifstockholders werenottoratifytheappointment,theAuditCommitteewouldreconsiderwhetherornottoretainPwC,butcould determinetodosoinitsdiscretion.Inaddition,eveniftheappointmentisratified,theAuditCommitteecould subsequentlyappointadifferentindependentregisteredpublicaccountingfirmwithoutstockholderratificationifthe committeeweretodeterminethatdoingsowasinthebestinterestsofourcompanyandstockholders.

RepresentativesofPwCwillbeavailableduringtheAnnualMeetingtoanswerquestionsfromstockholders.

AuditCommitteeEvaluation

IndeterminingwhethertoreappointPwC,theAuditCommitteeconsideredthefirm’squalifications,performance, independenceandtenure,aswellastheperformanceoftheengagementteamservingourcompany;thequalityofits discussionswithrepresentativesofPwC;andthefeeschargedbyPwCforthequalityandscopeofservicesprovided.In connectionwiththe2026appointment,theAuditCommitteeconsidered,amongotherthings,thefactorsdescribed below.

• AuditQuality –ThequalityofPwC’sauditandnon-auditworkbasedonitsoversightofitsworkproduct, consideringthefirm’s(i)compliancewithaccountingandauditingprofessionalstandardsandregulatory requirements;(ii)applicationofitsunderstandingofourbusinessesandthemarketsinwhichweoperatein identifyingandrespondingtorisksrelevanttoitsaudit;(iii)identificationandresolutionofissuesinatimely manner;and(iv)integrity,objectivityandprofessionalskepticisminperformingitsaudits,aswellasthefirm’s 2025AuditQualityReportprovidedtotheAuditCommitteeinFebruary2026

• Performance –PwC’seffectivenessduringitsprior-yearaudits,notingitsstrongperformancein2025,having takenactionstoimprovethetimelinessofitsauditplanningandincreasecommunicationandengagementwith relevantcompanypersonnel

• QualitativeReview –TheresultsofoursurveyofmembersofmanagementandtheAuditCommitteeevaluating PwC’s(i)expertiseandresources;(ii)qualityandtimelinessofauditplanning;(iii)communicationandinteraction; (iv)independence,objectivityandprofessionalskepticism;and(v)valuefromfees,whichreflectedimproved overallsatisfactionandidentifiedstrengths,accomplishedimprovementsandsuggestionsforfurther improvement

• Self-Assessment –PwC’sself-assessmentofitsperformanceanditssatisfactionoftheneedsandexpectations oftheAuditCommitteeandmanagementduringthe2025audit,includingitshuman-led,technology-powered approachthatenhancedauditqualityandresultedinamorestreamlinedexperienceanditscommitmentto bringingacontinuousimprovementmindsettoitswork

• RegulatoryReviews –ExternaldataonPwC’sauditqualityandperformance,includingthemostrecentPublic CompanyAccountingOversightBoard(PCAOB)reportonthefirmprovidedtotheAuditCommitteeinOctober 2025

• Fees –ThereasonablenessofPwC’sfeesforauditandnon-auditservices,bothonanabsolutebasisandrelative topeerfirms,includingmanagement’s2025benchmarkingofourauditfeesrelativetothoseofpeercompanies usingdataprovidedbyanindependentthirdparty,thekeydriversofvariancesandthefirm’stargetedareasfor improvedproductivity

• Independence –PwC’sprocessestoensureitmaintainsindependence,includingrequiredindependencetraining forallpartnersandstaffandaglobalindependencesystemthatmonitorstheirpersonalaffiliations;written disclosuresfromthefirm;andtheindependencelettersrequiredbythePCAOB

• Tenure –PwC’stenureasourindependentauditor,reflectingonthefeedbackfromcertainofourinvestors counterbalancedagainstthebenefitsofhavingalonger-tenuredauditor,aswellasthecontrolstheAudit CommitteeandPwChaveinplacetomitigatepotentialindependencerisk.InJuly2025,theAuditCommittee deliberatedonwhethertoconductaformalprocesstoselectanewindependentauditor,determiningnottodo sogivenitscontinuedsatisfactionwithPwC’seffectivenessandperformance;ourmultipleengagementsofother registeredpublicaccountingfirmstoperformvariousnon-auditservicesforourcompany,whichcouldimpair theirindependenceandlimittheirabilitytoserveasourindependentauditor;theregularrotationofPwC’slead engagementpartnerandleadrelationshippartner;andpotentialriskstoauditqualityandtimeliness.

Havingdeterminedthatitisinthebestinterestofourcompanyandstockholders,theAuditCommitteehas appointedPwCasourindependentregisteredpublicaccountingfirmforfiscalyear2026.

BoardRecommendation

OurBoardrecommendsthatyouvoteFORratificationoftheappointmentofPwCas ourindependentregisteredpublicaccountingfirmforfiscalyear2026.

Properlydatedandsignedproxieswillbesovotedunlessyouspecifyotherwise.

AUDITMATTERS

AUDITORQUALIFICATIONSANDTENURE

PwChasbeenourindependentregisteredpublicaccountingfirmsince1998andservedinthatcapacityduringfiscal year2025.Throughitspredecessorentities,thefirmhasservedasourindependentauditorsinceatleast1954basedon recordswehavebeenabletolocate;wehavebeenunabletodeterminetheexactyearPwCbeganservinginthis capacity.PwCiswell-qualifiedtocontinueservingasourindependentregisteredpublicaccountingfirm,understandsour operationsandaccountingpractices,andmaintainsrigorousprocedurestoensureauditorindependence.

Initsannualconsiderationoftheappointmentoftheindependentregisteredpublicaccountingfirm,theAudit CommitteeconsiderswhetherPwCisbestpositionedtoprovidetheserviceseffectivelyandefficientlyduetoits familiaritywithouroperations,businesses,accountingpoliciesandpractices,internalcontrols,andfinancialand informationtechnologysystems,aswellaswhethertheservicesenhanceourabilitytomanagecontrolrisksandmaintain auditquality.ThecommitteereappointedPwCfor2026becauseitcontinuestobelievethatPwCprovideshigh-quality auditservicesonthescaleandwiththeeffectivenessandindependencethecommitteerequires,givingconsiderationto thefactorsshownbelow.

• AuditQualityandPerformance –PwChasdeepinstitutionalknowledgeregardingouroperations,businesses, andaccountingpoliciesandpractices,optimizingitspeopleandtechnologytodeliverenhancedquality assuranceandprovidegreatercustomization,timesavingsandinsightsfromtheaudit

• GlobalScale –PwChasapresencewithresourcesinvirtuallyallofthecountriesinwhichwedobusiness, enablingthefirmtoleverageitsauditprocedurestocost-effectivelyperformstatutoryauditworkonour subsidiaryaccounts

• Capability –PwC’scapabilityandexperienceunderstandingthebreadthandcomplexityofourglobaloperations

• FreshPerspective –Therecentappointmentsofanewleadengagementpartnerandanewleadrelationship partner,eachofwhomhasbroughtfreshperspectiveandstrongengagement

• Efficiency –PwCbringscustomizedknowledgeusingjudgmenttailoredtoouraudits,allowingforsignificant timesavings

• Cost-Effectiveness –PwC’sabilitytocost-effectivelyperformaudit,audit-related,taxcomplianceandtax planningservices

TheAuditCommittee’sconsiderationofPwC’stenureasourindependentauditorisdiscussedunder Audit CommitteeEvaluation above.Inconductingitsregularreviewofwhethertoappointanewindependentregisteredpublic accountingfirm,amongotherthings,theAuditCommitteeconsidersthefactthatonboardinganewfirmwouldrequirea significanttimecommitmentonthepartofmanagement,potentiallydistractingfromtheparamountfocusonfinancial reportingandinternalcontrols,withoutnecessarilyenhancingauditquality.

PwCregularlyprovidestheAuditCommitteeandmanagementwithaccounting/financialreportinginsightsand bestpracticesrelevanttoourbusiness,aswellasadvancenoticeoflegislativeandregulatorydevelopmentsthat couldhaveasignificantimpactonourcompany.In2025,thisknowledgesharingcoveredtopicsincluding cybersecurity,sustainabilitystandards,climatedisclosureregulationsandartificialintelligence.

TheAuditCommitteehasseveralcontrolsinplacetomitigateanypotentialindependenceriskrelatedtoauditor tenure,includingthosedescribedbelow.

• AnnualReviewofPerformanceandIndependence –Inadditiontoitsongoingassessmentandfeedback providedtoPwC,theAuditCommitteeevaluatesthefirm’sperformanceandindependence,aswellasother factorssuchasauditortenure,indeterminingwhethertoreappointthefirmforthefollowingyear.

• LimitsonNon-AuditServices –TheAuditCommitteeassessestheimpactprovidingnon-auditservicesmay haveonPwC’sindependenceinapprovingthefirm’slimitedprovisionoftheseservices,aswellasduringits annualassessmentofthefirm’sindependence;ourcompanyregularlyusesotherindependentregisteredpublic accountingfirmstoprovidestatutoryauditandnon-auditservices,engagingPwConlyifpermissibleandwhere doingsoconferstimeandcostsavingsgivenitsroleasourindependentauditor.

90 2026ProxyStatement | AveryDennisonCorporation

• RegularConsiderationofAuditorRotation –TheAuditCommitteeregularlyevaluateswhethertoconducta processformallytoselectanewindependentregisteredpublicaccountingfirm,havingmostrecentlydonesoin 2025.

• ExecutiveSessions –TheAuditCommitteemeetsregularlybothwithPwCwithoutmanagementpresentand withmanagementwithoutPwCpresent.

• LeadEngagementPartnerRotationandSelection –Anewleadengagementpartnerisdesignatedatleast everyfiveyears,withthecurrentpartnerhavingbeendesignatedinadvanceofthe2024audit.TheAudit Committeeinterviewedthepartnerpriortohisdesignationandwasdirectlyresponsibleformakingtheselection, inconsultationwithmanagementandrepresentativesfromPwC.

• OversightbyLeadRelationshipPartner –PwCdesignatesaseparateleadrelationshippartnertoprovide additionalassuranceandobjectiveoversightwhomeetsatleastannuallywiththeAuditCommitteeandis availableasneededfordirectconsultation.Anewleadrelationshippartnerwasdesignatedin2022,havingbeen selectedbytheAuditCommitteeinconsultationwithPwCleadership. Theadditionaloversightandescalation providedbytheleadrelationshippartnerallowthefirmtoaddressissuesthatmayarise,strengthenthe independenceoftheauditengagementteamandhelpensurecontinuousimprovementinservicequality.

AUDITORINDEPENDENCE

PwChasadvisedusthatneitherthefirmnoranymemberthereofhasanyfinancialinterest,directorindirect,inour companyoroursubsidiaries,confirmingtotheAuditCommitteethatitisincompliancewiththerules,standardsand policiesofthePCAOBandtheregulationsoftheSECgoverningauditorindependence.InFebruary2026,theAudit Committeereviewedthenon-auditservicesprovidedbyPwCduring2025,includingtherelatedfeesassociatedwith previouslypre-approvedservices,inassessingwhetherthefirm’sprovisionoftheseservicesimpairedPwC’s independence.

TheAuditCommitteediscussedwithPwCitsindependencefromourcompany,Boardandmanagementand concludedthatPwCwasindependentduring2025.

AUDITORCOMPENSATION

TheAuditCommitteehasadoptedproceduresforthepre-approvalofallauditandnon-auditservicesandfees providedbytheindependentregisteredpublicaccountingfirm.Pre-approvalproceduresincludereviewingand approvingaplanforauditandpermittednon-auditservices,whichincludesadescriptionof,andestimatedfeesfor,each categoryofauditandnon-auditservices.AdditionalAuditCommitteeapprovalisrequiredforservicesnotpre-approved intheinitialplanandfeesexceedingthebudgetedamountforaparticularcategoryofservices.TheAuditCommitteehas delegatedinterimapprovalauthoritytoitsChairforadditionalservicesthatmaybecomenecessary,withapprovalbythe entirecommitteeatasubsequentmeeting.

Inthefourthquarterof2024,theAuditCommitteeapprovedthe(i)audit,audit-relatedandotherservicesPwCcould performin2025and(ii)permissibletaxservicesthefirmcouldprovideduringtheyear.TheAuditCommittee pre-approvedPwC’sfeesforaudit,audit-related,taxcomplianceandtaxplanningservicesinFebruary2025;receivedan updateonfeeadjustmentsinDecember2025;andassessedthefinalfeesinconnectionwithitsreviewofauditresultsin February2026.

AUDITFEES

Infiscalyears2025and2024,PwCprovidedtheservicesshownbelowforourcompany–allofwhichwere approvedbytheAuditCommitteeinaccordancewiththeproceduresdescribedabove–forwhichwepaidthefirmthe feesindicated.

20252024

AuditFees(1) $10,569,000$10,137,000

Audit-RelatedFees(2) 164,000375,000 TaxFees:

1,747,0001,045,000 AllOtherFees(5) 16,00017,000

Total$15,190,000$14,377,000

(1) FeesforservicesperformedtocomplywiththestandardsestablishedbythePCAOB,includingtheauditsofour financialstatementsandinternalcontroloverfinancialreporting;auditsinconnectionwithstatutoryfilings;andother servicesthattheprincipalindependentregisteredpublicaccountingfirmcanmosteffectivelyandefficientlyprovide, suchasproceduresrelatedtocomfortletters,consentsandreviewsofourSECfilings.

(2) Feesassociatedwithassuranceandrelatedservicestraditionallyperformedbytheindependentregisteredpublic accountingfirmandreasonablyrelatedtotheperformanceoftheauditorreviewofourfinancialstatements,including assistanceinfinancialduediligencerelatedtoacquisitionsanddivestituresandtheauditorcomplianceservicesnot requiredbyapplicablestatutesorregulations.Thiscategoryalsoincludesauditsofpensionandotheremployeebenefit plans,aswellastheauditorreviewofinformationtechnologysystemsandinternalcontrolsunrelatedtotheauditof thefinancialstatements.

(3) Feesassociatedwithtaxcompliancesuchaspreparationoftaxreturnsinforeignjurisdictions,taxauditsandtransfer pricingdocumentation.

(4) FeesforU.S.andnon-U.S.taxplanning,aswellastaxplanningrelatedtorestructuringactions,acquisitionsand divestitures.

(5) Feesforanyservicesotherthanthosedescribedintheabovecategories.Inbothyears,includedsubscriptionsand licensestoaccountingandtaxresourcesandotherpermissibleservices.

AUDITCOMMITTEEREPORT

COMPOSITIONANDQUALIFICATIONS

TheAuditCommittee(referredtointhisreportasthe“Committee”)ofourBoardiscomposedofthedirectorsnamed attheendofthisreport,eachofwhommeetstheenhancedindependenceandexperiencestandardsforauditcommittee membersrequiredbySECrulesandNYSElistingstandards.OurBoardhasdeterminedallmemberstobefinancially literateanddesignatedWardDicksonandPatrickSiewerteachasan“auditcommitteefinancialexpert”underapplicable SECregulations.MembersoftheCommitteeareprohibitedfromsittingontheauditcommitteeofmorethantwoother publiccompanies,andallmembersareincompliancewiththisrestriction.

PRIMARYRESPONSIBILITIES

TheCommitteehasawrittencharterapprovedbyourBoard,whichisavailableunder GovernanceDocuments inthe investorssectionofourwebsite.TheCommitteeannuallyreviewsitscharterandconsiderswhethertorecommend changestoourBoardforapproval.ThecharterwasmostrecentlyamendedinJanuary2026.

Duringfiscalyear2025,theCommitteeprimarilyperformedtheactivitiesdescribedbelowonbehalfofourBoard.

•Reviewedanddiscussedwithmanagementandtheindependentregisteredpublicaccountingfirmourquarterly andannualfinancialresults,earningsreleasedocumentationandtherelatedreportswefilewiththeSEC

•Reviewedanddiscussedwithmanagementandtheindependentregisteredpublicaccountingfirmourinternal controlsreportandtheindependentregisteredpublicaccountingfirm’sattestationthereof

•Evaluatedthequalifications,performanceandindependenceoftheindependentregisteredpublicaccounting firmandmetwithitsrepresentativestodiscussthescope,budget,staffingandprogressoftheaudit

•Maintainedresponsibilityforthecompensationandoversightoftheworkoftheindependentauditorforthe purposeofpreparingorissuingitsauditreportorrelatedwork,aswellasthecompensationandengagementof anyotherregisteredpublicaccountingfirmpreparingorissuinganauditreportorrelatedworkorperforming otherauditorattestservices

•SupervisedourInternalAuditleaderwithrespecttothescope,budget,staffingandprogressoftheinternalaudit andevaluatedhisindividualperformance,aswellastheperformanceofthefunction

•Discussedsignificantfinancialriskexposures,includingourcybersecurityriskmanagementprogram,risks relatedtoourcompany’sinformationtechnologycontrolsandsecurity,andthestepstakenbymanagementto monitorandcontroltheseexposures

OVERSIGHTOFCONSOLIDATEDFINANCIALSTATEMENTS

Managementisresponsibleforourconsolidatedfinancialstatements,accountingandfinancialreportingpolicies, internalcontroloverfinancialreporting,anddisclosurecontrolsandprocedures.TheCommitteeappointedthe independentregisteredpublicaccountingfirmofPricewaterhouseCoopersLLP(PwC)toprovideaudit,audit-relatedand taxcomplianceservices,withlimitedtaxplanningandotherservicestotheextentapprovedbytheCommittee.PwC performedindependentauditsofour2025consolidatedfinancialstatementsandinternalcontroloverfinancialreporting inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(PCAOB),issuinganopiniononthe conformityofthosefinancialstatementswithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica (GAAP).TheCommittee’sresponsibilityistomonitorandoverseeouraccountingandfinancialreportingprocessesand theauditsofourconsolidatedfinancialstatementsandinternalcontroloverfinancialreporting.Themembersofthe Committeearenotprofessionallyengagedinthepracticeofauditingoraccountingandrelywithoutindependent verificationontheinformationprovidedandrepresentationsmadebymanagementandPwC.

TheCommitteereviewedourconsolidatedfinancialstatementsandrelatedfootnotesforthefiscalyearended December31,2025–includingourcriticalaccountingpoliciesandmanagement’ssignificantestimatesandjudgments–withmanagementandPwC,aswellasPwC’sreportandunqualifiedopiniononitsaudits.Managementrepresentedto theCommitteeandPwCthatourconsolidatedfinancialstatementswerepreparedinaccordancewithGAAP,andPwC discussedthemattersrequiredbyAuditingStandardNo.1301, CommunicationswithAuditCommittees

BasedontheCommittee’sreviewanddiscussionswithmanagementandPwC,aswellastheCommittee’sreviewof therepresentationsofmanagementandtheauditreportandunqualifiedopinionofPwC,theCommitteerecommended thatourBoardapproveourAnnualReportonForm10-KforthefiscalyearendedDecember31,2025.

OVERSIGHTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TheCommitteeisresponsibleforappointingtheindependentregisteredpublicaccountingfirmandmonitoringand overseeingitsqualifications,compensation,performanceandindependence.Inthiscapacity,theCommitteereviewed withPwCtheoverallscopeofservicesandfeesforitsauditandmonitoredtheprogressoftheauditinassessingour compliancewithSection404oftheSarbanes-OxleyActof2002,includingthefirm’sfindingsandrequiredresources.

PwCprovidedtotheCommitteethewrittendisclosuresandindependencelettersrequiredbythePCAOBregarding communicationsconcerningindependence–includingRule3524, AuditCommitteePre-approvalofCertainTaxServices, andRule3526, CommunicationwithAuditCommitteesConcerningIndependence.TheCommitteehasapolicyrequiring pre-approvaloffeesforaudit,audit-related,taxcomplianceandtaxplanningservicesandhasconcludedthatPwC’s provisionoflimitednon-auditservicestoourcompanyin2025didnotimpairitsindependence.TheCommittee discussedwithPwCitsindependencefromourcompany,BoardandmanagementandconcludedthatPwCwas independentduringfiscalyear2025.

Underitscharter,theCommitteeisrequiredtoregularlyconsiderwhetheritisappropriatetochangethe independentregisteredpublicaccountingfirm.TheCommitteetodatehasdeterminedtoretainPwCnotingthatthefirm hascontinuedtoexerciseindependenceinchallengingmanagement,effectivelyconductedhigh-qualityauditsand consistentlyimprovedservicedelivery.

TheCommitteehasdeterminedthattheappointmentofPwCasourindependentregisteredpublicaccountingfirm forfiscalyear2026isinthebestinterestofourcompanyandstockholders.TheCommitteehasappointedPwCinthis capacity,andourBoardhasrecommendedthatstockholdersratifytheappointment.

OVERSIGHTOFINTERNALAUDIT

TheCommittee’sresponsibilityistomonitorandoverseeourinternalauditfunction,reviewingthesignificantaudit resultsreportedtomanagementandmanagement’sresponsesthereto.Inthiscapacity,theCommitteereviewswithour InternalAuditleadertheoverallscopeandbudgetfortheinternalauditandregularlymonitorstheprogressofthe internalauditinassessingourcompliancewithSection404oftheSarbanes-OxleyActof2002,includingkeyfindings.

EXECUTIVESESSIONS

TheCommitteeregularlymeetsseparatelyinexecutivesessionwithoutmanagementpresentwitheachofour InternalAuditleaderandPwCtoreviewanddiscusstheirevaluationsoftheoverallqualityofouraccountingand financialreportingandinternalcontrol.TheCommitteealsomeetsregularlywithourCFOandasneededwithother membersofmanagementwithoutotherspresenttodiscusssignificantmattersimpactingourfinancialstatementsand accountingpolicies.

STOCKHOLDERFEEDBACK

TheCommitteehasestablishedproceduresforthereceipt,retentionandtreatment,onaconfidentialbasis,of complaintsregardingouraccounting,internalcontrolsandauditingmatters.See ComplaintProceduresforAccounting andAuditingMatters intheGovernancesectionofthisproxystatement.TheCommitteewelcomesfeedbackregarding itsoversightofourauditprogram.StockholdersmaycommunicatewiththeCommitteebywritingtotheAudit CommitteeChair,c/oCorporateSecretary,8080NortonParkway,Mentor,Ohio44060.

WilliamWagnerservedontheCommitteethroughApril2025anddidnotparticipateinthereview,discussionsand recommendationreflectedinthisAuditCommitteeReport.

WardDickson,ChairAndresLopezMariaFernandaMejiaPatrickSiewert

Thisreportisnot“solicitingmaterial,”isnotdeemed“filed”withtheSEC,andisnottobeincorporatedbyreference intoanyfilingbyourcompanyundertheSecuritiesActortheExchangeAct,whethermadebeforeorafterthedateof thisproxystatementandregardlessofanygeneralincorporationlanguageinanysuchfiling.

94 2026ProxyStatement | AveryDennisonCorporation

PROPOSAL4–VOTEONSTOCKHOLDERPROPOSALFOR

INDEPENDENTBOARDCHAIRMAN

JohnR.Chevedden,astockholderresidingat2215NelsonAvenue,No.205,RedondoBeach,California90287who hasbeneficiallyownednofewerthan15sharesofourcommonstocksinceSeptember20,2022(the“Proponent”),has informedusthatheintendstopresenttheproposalsetforthbelowduringtheAnnualMeeting.IftheProponentorhis qualifiedrepresentativeattendsandproperlypresentstheproposalforavote,thenthestockholderproposalwillbe voteduponduringtheAnnualMeeting.

InaccordancewithSECrules,theproposalandsupportingstatementassubmittedbytheProponentarepresented verbatimbelow.Theproposalandsupportingstatementmaycontainassertionsthatwebelieveareincorrect.Wehave notattemptedtorefuteallassertionsorcorrectanyerrorsintheproposalorsupportingstatement,andwedisclaimall responsibilityfortheircontent,includingthesourcesreferencedtherein.

ForthereasonssetforthintheoppositionstatementfollowingtheProponent’sproposal,ourBoardopposesits approvalandrecommendsthatyouvote AGAINST it.

Proposal4–IndependentBoardChairman

ShareholdersrequestthattheBoardofDirectorsadoptanenduringpolicy,andamendthegoverningdocuments asnecessaryinorderthat2separatepeopleholdtheofficeoftheChairmanandtheofficeoftheCEOassoonas possible.

TheChairmanoftheBoardshallbeanIndependentDirector.ALeadDirectorshallnotbeasubstituteforan independentBoardChairman.

TheBoardshallhavethediscretiontoselectaninterimChairmanoftheBoard,whoisnotanIndependent Director,toservewhiletheBoardisrequiredtoseekanIndependentChairmanoftheBoardonanacceleratedbasis. ThispolicycouldbephasedinwhenthereisacontractrenewalforourcurrentCEOorforthenextCEOtransition althoughitisbettertoadoptitnow.

AnindependentBoardChairmanatalltimesimprovescorporategovernancebybringingimpartiality,objective oversight,andexternalexpertisetoboarddecisions,mitigatingconflictsofinterest,enhancingtransparency,and boostingshareholderconfidence.

Thisdetachedperspectiveallowsthechairmantofocusonshareholderinterests,strengthenmanagement accountability,andprovidecriticalchecksandbalances,ultimatelycontributingtolong-termsustainabilityand credibility.

Thismaybeaparticularlygoodtimetoconsiderthemeritsofthisproposal.AveryDennisonstockwasat$229in 2021andfellto$160inlate2025despitearobuststockmarket.

ReportsthroughouttheyearhighlightedsignsofweaknessinAveryDennison’sfinancialperformancecompared topreviousyears.Oneanalysisnotedthatwhilethecompanyperformedstronglyin2024,itsrevenueand profitabilityslippedin2025despitecost-cuttingefforts.

Initsfirst-quarter2025earningsreport,AveryDennisonmissedanalystexpectationsforbothearningspershare andrevenue.Thiswasrepeatedinthesecondquarter,whenthecompanyagainmissedrevenueexpectations.

AveryDennison’sshareshaveunderperformed,withitsstockdecliningsignificantlywhilethebroaderS&P500 hasincreased.MultiplearticlesinOctober2025alsonotedthestockreachinganew52-weeklow.InJanuary2025, AveryDennisonforecastitsfull-yearprofitbelowanalystestimates,citingastrongU.S.dollarasacontributing factor.

Throughouttheyear,marketanalystsdowngradedthestock,changedtheirratingsto“Hold,”andloweredtheir pricetargetsduetoweakeningfundamentals,risk,andmacroeconomicuncertainty.

Trade-policyimpactsresultedinlowersourcingdemandintheapparelandretailsectorsinQ22025.Organic salesdeclinedintheMaterialsGroup,andtheSolutionsGroupexperiencedlowervolumeinapparelcategories.

OurBoard’sGovernanceCommitteehascarefullyconsideredtheproposalandbelievesthatitisunnecessaryandnot inthebestinterestsofourcompanyandstockholders.AsrecommendedbytheGovernanceCommittee,ourBoard recommendsthatyouvote AGAINST thisproposalforthereasonsstatedbelow.

ItiscriticalthatourBoardcontinuestomaintainthediscretiontodetermineitsappropriateleadership structureconsistentwiththebusinessjudgmentaffordedtoitunderDelawarelawandourGovernance Guidelines.

OurGovernanceGuidelinesgiveourBoardthediscretiontoseparateorcombinetherolesofChairmanandCEOasit deemsappropriatebasedontheneedsofourcompanyatanygiventime.Tofacilitatethisdecision-making,the GovernanceCommitteeannuallyreviewsourBoardleadershipstructure,givingconsiderationto,amongotherthings,our financialposition,businessstrategies,governanceprofile,theresultsofourannualBoard/Committeeevaluationprocess, andanyfeedbackreceivedfromourinvestors;recommendstoourBoardwhethertoseparateorcombinethepositionsof ChairmanandCEO;andrecommendstoourBoardtheLeadIndependentDirectorincaseswheretheChairmanisnot independent.OurBoardbelievesthatitscurrentleadershipstructure,withMitchellButierservingasnon-executive ChairmanandPatrickSiewertservingasLeadIndependentDirector,ismosteffectiveforourcompanyatthistime.

BeforeceasingtobeanemployeeinApril2025,Mr.Butierservedourcompanyformorethan25yearsinrolesof increasingresponsibility,includingCFO,COO,CEOand,mostrecently,ExecutiveChairman.Hehasadeepfamiliarity withourbusinessoperations,strategicprioritiesandtheindustriesweserve.Mr.Butier’spriorexperienceasasenior executiveofourcompanysignificantlyenhancestheBoard’seffectivenessinoverseeingourlong-termgoalsand performance,providingkeyinsightsthatstrengthenourBoard’sexecutionofitsduties.Inaddition,wehaveexperienced significantBoardandleadershipchangesinrecentyears;havingaChairmanwithsubstantialexperiencewithboth managementandourBoardduringthisperiodhasbeenextremelyvaluabletoourCEO,independentdirectorsand stockholders.

Mr.Butier’sleadershipasChairman,whichbegansevenyearsagowhenhewasCEO,hasbeeninstrumentaltoour success,andourBoardbelievesthatheremainsbestpositionedtoleadtheBoardinoverseeingmanagement’sexecution ofourstrategiesandmitigationofrelatedrisks.AlthoughwerecognizethatadifferentBoardleadershipstructuremaybe moreappropriateforourcompanyinthefuture,webelievethatrequiringourBoardtodesignateanindependent ChairmanatalltimeswouldpreventourBoardfromexercisingitsbusinessjudgmenttodetermineitsoptimalleadership structurethatovertimehasservedourcompanyandstockholderswell.

WhenourcompanydoesnothaveanindependentChairman,aLeadIndependentDirectoriselectedsolelybyour independentdirectorstoperformkeydutiesinandoutsidetheboardroomtoprovideacheckandbalancethathelps ensureobjectiveoversightandadvancestockholderinterests.AsourcurrentLeadIndependentDirector,PatrickSiewert presidesoverexecutivesessionsofindependentdirectors;approvesmeetingschedules,agendasandotherinformation senttoourBoard;callsmeetingsofindependentdirectorsifandasappropriate;andconsultswithourindependent directors,providingfeedbacktoourChairmanandourCEOduringhisregularone-on-onemeetingswitheachofthem.In addition,Mr.Siewertleadsouroff-seasonstockholderengagementprogram,directlyspeakingwithinvestorsonBoard andgovernancematters,whichprovidesenhancedtransparencyandaccountability.

AdditionalinformationonourBoardleadershipstructurecanbefoundonpages28-29ofthisproxystatement.

InadditiontoarobustLeadIndependentDirectorrole,wehaveaBoardandgovernanceprofilethathelps ensureindependentoversightofmanagementandaccountabilitytoourstockholders.

OurBoardandgovernanceprofileincludesthefollowingfeatures:

• SubstantialMajorityofBoardIndependent. 80%ofourdirectorsareindependent,withthetwoexceptionsbeing Mr.ButierandDeonStander,ourCEO.

• KeyBoardCommitteesFullyIndependent.TheChairsandallmembersoftheAuditCommittee,Compensation CommitteeandGovernanceCommitteeareindependentdirectors.

• AnnualBoard/CommitteeEvaluations. OurBoardandeachofitscommitteesannuallyevaluatetheirperformance toensurethattheyarefunctioningeffectively.TheseevaluationsincludeanassessmentofourChairmanand LeadIndependentDirector,eachofwhomhasreceivedconsistentlypositivefeedback.

• IndependentDirectorExecutiveSessions.Ourindependentdirectorsholdexecutivesessionsatleastonceayear andasoftenasneededduringwhichtheydiscusstheperformanceofourChairmanandourCEO,management asawholeandourcompany.OurLeadIndependentDirectorpresidesoverthesesessions.

OurstockholdersbroadlysupportourcurrentBoardleadershipstructure.

Wesemiannuallyengagewithstockholderstoseekfeedbackon,amongotherthings,ourBoardandgovernance practices.OurBoardbelievesthatongoingengagementwithkeyinvestorsenhancestransparencyandaccountabilityto ourstockholders.

OurBoardleadershipstructurehasbeenatopicofdiscussionincertainofourannualoff-seasonstockholder engagements.WhilesomeinvestorshaveexpressedapreferenceforanindependentBoardChairman,overalltheyhave broadlyexpressedsupportforourcurrentstructureandannualreviewprocess,includingduringMr.Butier’stimeas Chairman.Inthefallof2025,wecontactedholdersofnearly65%ofouroutstandingcommonstockandengagedwith holdersowning28%ofouroutstandingcommonstock,discussingrecentBoardandgovernancedevelopmentsduringall engagements.InthoseinwhichBoardleadershipstructurewasatopic,weexplainedtherationaleforourcurrent structurefollowingoursuccessfulsuccessionplanningprocessandCEOtransitioninSeptember2023,aswellasthe differingrolesandresponsibilitiesandworkingrelationshipamongourChairman,CEOandLeadIndependentDirector, withinvestorsseekingtobetterunderstandhowourstructureoperatesinpracticeratherthansuggestingthatadifferent structurewouldbemoreappropriateatthecurrenttime.TheseengagementsreaffirmedourviewthatourBoard’s currentleadershipstructureisappropriateandeffectiveatthistime,particularlyinlightofthesignificantBoardand leadershipchangesweexperiencedinrecentyears.Weremaincommittedtotransparentengagementonthistopicand tomaintainingastructurethatwebelievebestservesourcompanyandstockholders.

Wehavealonghistoryofbeingresponsivetostockholderconcernsandhaveastrongstockholderrightsprofile, includingproxyaccess,nosupermajorityvotingrequirementsandtherightforstockholderstocallspecialmeetings.In lightofourstrongcorporategovernancepracticesandthebenefitsoftheBoardmaintainingthediscretiontodetermine theleadershipstructurethatbestservesourcompanyatanyparticulartime,ourBoardbelievestheadoptionofthe proposalisunnecessaryandnotinthebestinterestsofourstockholders.

BoardRecommendation

OurBoardrecommendsthatyouvoteAGAINSTtheproposal foranindependentBoardChairman,ifproperlypresentedduringthemeeting.

Properlydatedandsignedproxieswillbesovotedunlessyouspecifyotherwise.

SECURITYOWNERSHIPINFORMATION

SECURITYOWNERSHIPOFMANAGEMENTANDSIGNIFICANTSTOCKHOLDERS

Thetablebelowshowsthenumberofsharesofourcommonstockbeneficiallyownedbyour(i)current directors,NEOs,andcurrentdirectorsandexecutiveofficersasagroupasoftheMarch2,2026recorddateforthe AnnualMeetingand(ii)ourgreater-than-five-percent,or“significant,”stockholdersasoftherespectivedatesindicated.

NameofBeneficialOwnerCommonStock(1)

NumberofRightsExercisableandVesting within60Days(2)

NumberofShares BeneficiallyOwned Percentof Class(3)

Currentdirectors

BradleyA.Alford26,85925,79952,658*

MitchellR.Butier315,4591,763317,222*

WardH.Dickson7531,0871,840*

DavidE.Flitman–––*

AndresA.Lopez4,0602,9677,027*

MariaFernandaMejia9761,0872,063*

FrancescaReverberi1,3771,0872,464*

PatrickT.Siewert18,5241,08719,611*

DeonM.Stander73,351–73,351*

WilliamR.Wagner2,3251,0873,412*

Non-directorNEOs

GregoryS.Lovins83,928–83,928*

DannyG.Allouche23,153–23,153*

RyanD.Yost6,167–6,167*

DeenaBaker-Nel8,846–8,846*

IgnacioJ.Walker9,914–9,914*

Allcurrentdirectorsandexecutive officersasagroup(17persons) 587,84935,964623,813*

Significantstockholders

(1) Eachcurrentdirector,non-directorNEOandcurrentexecutiveofficerhassolevotingandinvestmentpowerwithrespecttotheirrespectivesharesand noshareshavebeenpledgedassecuritybyanysuchperson.IncludesthefollowingsharesheldinouremployeesavingsplanasofMarch2,2026: Butier–4,312,Lovins–2,243,Yost–3,Baker-Nel–1,721,Walker–587,andallcurrentdirectorsandexecutiveofficersasagroup–8,656.The businessaddressforalltheseindividualsis8080NortonParkway,Mentor,Ohio44060.

(2) NumbersreportedinthiscolumnarenotentitledtovoteduringtheAnnualMeeting.Includes24,712and1,880DSUsdeferredthroughtheDDECPby Messrs.AlfordandLopez,respectively,asofMarch2,2026,astowhichtheyhavenovotingorinvestmentpower.DSUsareincludedasbeneficially ownedbecause,ifeitherofthemweretoleaveourBoard,hisDDECPaccountwouldbevaluedasofthedateofseparationandtheequivalentnumberof sharesofourcommonstock,lessfractionalshares,wouldbeissuedtotheseparatingdirector.ForcurrentdirectorsotherthanMr.Stander,includes RSUsvestingwithin60daysofMarch2,2026.

(3) Percentofclassbasedon76,917,031sharesofourcommonstockoutstandingasofMarch2,2026.Individualsandgroupswithan(*)beneficiallyown lessthan1%ofouroutstandingcommonstock.

(4) NumberofsharesbeneficiallyownedbasedoninformationasofSeptember30,2025containedinAmendmentNo.14toSchedule13Gfiledwiththe SEConOctober30,2025.TheVanguardGrouphassolevotingpowerwithrespecttonoshares;sharedvotingpowerwithrespectto457,641shares; soledispositivepowerwithrespectto9,619,643shares;andshareddispositivepowerwithrespectto759,080shares.TheVanguardGroupisan investmentadviser,inaccordancewithRule13d-1(b)(1)(ii)(E)oftheExchangeAct,withabusinessaddressof100VanguardBoulevard,Malvern, Pennsylvania19355.

(5) NumberofsharesbeneficiallyownedbasedoninformationasofMarch31,2025containedinAmendmentNo.16toSchedule13GfiledwiththeSECon April24,2025.BlackRock,Inc.hassolevotingpowerwithrespectto5,808,754shares;sharedvotingpowerwithrespecttonoshares;soledispositive powerwithrespectto6,413,103shares;andshareddispositivepowerwithrespecttonoshares.BlackRock,Inc.isaparentholdingcompanyorcontrol person,inaccordancewithRule13d-1(b)(1)(ii)(G)oftheExchangeAct,withabusinessaddressof50HudsonYards,NewYork,NewYork10001.

(6) NumberofsharesbeneficiallyownedbasedoninformationasofJune30,2025containedinSchedule13GfiledwiththeSEConAugust12,2025. WellingtonManagementGroup(whichincludesWellingtonManagementGroupLLP,WellingtonGroupHoldingsLLP,WellingtonInvestmentAdvisors HoldingsLLPandWellingtonManagementCompanyLLP)hassolevotingpowerwithrespecttonoshares;sharedvotingpowerwithrespectto 4,941,599shares;soledispositivepowerwithrespecttonoshares;andshareddispositivepowerwithrespectto5,164,296shares(exceptthat WellingtonManagementCompanyLLPhasshareddispositivepowerwithrespectto4,941,599shares).EachentityintheWellingtonManagement Groupisaparentholdingcompanyorcontrolperson,inaccordancewithRule13d-1(b)(1)(ii)(G)oftheExchangeAct,exceptthatWellington ManagementCompanyLLPisaninvestmentadviser,inaccordancewithRule13d-1(b)(1)(ii)(E)oftheExchangeAct;alltheentitieshaveabusiness addressof280CongressStreet,Boston,Massachusetts02210.

RELATEDPERSONTRANSACTIONS

UnderourGovernanceGuidelines,BoardmembersareexpectedtocomplywithourCodeofConductandavoidany action,positionorinterestthatconflictsormayappeartoconflictwiththoseofourcompany.Inaddition,theGovernance Committeeoverseesourconflictofinterestpolicy,whichprohibitsourofficers(includingallexecutiveofficers)and employees–oranyoftheirimmediatefamilymembers–fromdirectlyorindirectlydoingbusiness,seekingtodobusiness orowninganinterestinanentitythatdoesbusinessorseekstodobusinesswithourcompanywithoutpriorwritten approval.Anyofficeroremployeewhohasaquestionastotheinterpretationofthepolicyoritsapplicationtoaspecific activity,transactionorsituationmaysubmitthequestioninwritingtoourlawdepartmentforanyfurtherreview necessarybytheGovernanceCommittee.

Allemployeesatthelevelofmanagerandaboveandallnon-supervisoryprofessionalsannuallycompletea compliancecertificationinwhichtheymust(i)disclose,amongotherthings,whethertheyoranyoftheirimmediate familymembershaveajob,contractorotherpositionwithanentitythathascommercialdealingswithourcompanyand (ii)certifythattheyhavecompliedwithourCodeofConductandkeycompanypolicies.Disclosuresarereviewedbyour complianceandlawdepartmentsinconsultationwithseniormanagementtodeterminewhethertheactivityhasthe potentialtosignificantlyinfluenceourbusiness.Intheeventthatanunresolveddisclosurepotentiallygivesrisetoa significantconflictofinterest,thecommitteewoulddeterminewhetheraconflictofinterestexistsorwhetherthereis reasonablelikelihoodthattheactivity,transactionorsituationwouldinfluencetheindividual’sjudgmentoractionsin performinghisorherduties.OurChiefComplianceOfficerreportedontheresultsofthe2025compliancecertificationto theGovernanceCommitteeinFebruary2026.

Inaddition,eachofourdirectorsandexecutiveofficersannuallycompletesaquestionnairedesignedtosolicit informationaboutanypotentialrelatedpersontransactions.Transactionsinvolvingdirectorsarereviewedbyour CorporateSecretarywiththeGovernanceCommitteeinconnectionwithitsannualassessmentofdirectorindependence. ResponsesfromexecutiveofficersarereviewedbyourCorporateSecretarywithoversightbytheGovernance Committeeintheeventanysuchtransactionsareidentified.

Wereviewinternalfinancialrecordstoidentifytransactionswithsecurityholdersknownbyusfrominformation containedinSchedules13Dor13GfiledwiththeSECtobebeneficialownersofmorethan5%ofourcommonstockto determinewhetherwehaveanyrelationshipswiththesecurityholdersthatmightconstituterelatedpersontransactions underItem404(a)ofRegulationS-K.OurCorporateSecretarydiscussesanysuchrelationshipsconstitutingrelated persontransactionswiththeGovernanceCommittee.

Duringfiscalyear2025,therewerenorelatedpersontransactionsrequiringdisclosureunderSECrulesand regulationsandallrelatedpersontransactionswerereviewedinaccordancewiththepoliciesandprocedures describedabove.

VOTINGANDMEETINGQ&A

ANNUALREPORTANDPROXYMATERIALS

HOWDOIACCESSTHE2025ANNUALREPORTAND2026PROXYMATERIALS?

Wehaveelectedtoprovideaccesstoourproxymaterialsontheinternet.Accordingly,wearesendingtheNoticeof InternetAvailabilityofProxyMaterials(the“Notice”)toourstockholdersofrecord.Brokers,banksandothernominees (collectively,“nominees”)whoholdsharesonbehalfofbeneficialowners(alsocalled“streetname”holders)willsenda similarnotice.YoucanaccessourproxymaterialsonthewebsitereferredtointheNotice.Instructionsonhowtorequest printedproxymaterialsbymail,includinganoptiontoreceivepapercopiesinthefuture,maybefoundintheNoticeand onthewebsitereferredtointheNotice.

OnoraboutMarch12,2026,wewillmakeour2025AnnualReportandthisproxystatementavailableonlineand beginmailingtheNoticetoallstockholdersentitledtovote. Onoraboutthesamedate,wewillbeginmailingour2025 IntegratedReport,whichincludesour2025AnnualReportand2026noticeandproxystatement,togetherwithaproxy cardtostockholdersentitledtovotewhohavepreviouslyrequestedpapercopies.Inaddition,ifyourequestpapercopies ofthesematerialsforthefirsttime,theywillbemailedwithinthreebusinessdays.Ifyouholdyoursharesinstreetname, youmayrequestpapercopiesoftheproxystatementandproxycardfromyournomineebyfollowingtheinstructionson thenoticeyournomineeprovidestoyou.

StockholdersofrecordmayobtainacopyofthisproxystatementwithoutchargebywritingtoourCorporate Secretaryat8080NortonParkway,Mentor,Ohio44060.

WHATISHOUSEHOLDING?

Wewillsendonlyone2025IntegratedReporttoanyaddressunlesswehavereceivedinstructionstothecontrary fromanystockholderatthataddress.Householdingallowsustoreduceourprintingandpostagecostsandprevents multipleproxymaterialsfrombeingreceivedatyourhousehold.Youcanrequestanadditionalcopyofour2025 IntegratedReportbywritingtoourCorporateSecretaryat8080NortonParkway,Mentor,Ohio44060.

Ifyoureceivemultiplecopiesandwanttoreceiveasinglecopyinthefuture,orifyouwanttorevokeyourconsentto householdingandreceiveseparatecopiesinfutureyears,youmaycallBroadridgeInvestorCommunicationsServices toll-freeat866.540.7095intheU.S.andCanadaorwritethemc/oHouseholdingDepartment,51MercedesWay, Edgewood,NewYork11717.

HOWCANIACCESSTHEANNUALREPORTANDPROXYMATERIALSELECTRONICALLY?

Insteadofreceivingpapercopiesofannualreportsandproxymaterialsbymailinthefuture,youcanelecttoreceive anemailwithalinktothesedocumentsontheinternet,whichallowsyoutoaccessthemmorequickly,savesusthecost ofprintingandmailingthemtoyou,reducestheamountofmailyoureceivefromusandhelpstoreduceour environmentalimpact.YoumayenrolltoaccessproxymaterialsandannualreportselectronicallyforfutureAnnual Meetingsbyregisteringonlineatthefollowingwebsite:https://enroll.icsdelivery.com/avy.Ifyouarevotingonline,youcan followthelinksonthevotingwebsitetoreachtheelectronicenrollmentwebsite.

VOTING

WHOISSOLICITINGMYVOTE?

OurBoardissolicitingyourvoteinconnectionwiththeAnnualMeeting.

WHOISENTITLEDTOVOTE?

StockholdersofrecordasofthecloseofbusinessonMarch2,2026areentitledtonoticeof,andtovotein connectionwith,theAnnualMeeting.Ourcommonstockistheonlyclassofsharesoutstandingandtherewere 76,917,031sharesofcommonstockoutstandingonthatdate. Thelistofstockholdersentitledtovotewillbeavailable forinspectionduringtheAnnualMeeting,aswellasstartingtendaysbeforetheAnnualMeetingduringregularbusiness hoursatourcompanyheadquarterslocatedat8080NortonParkway,Mentor,Ohio44060.Youareentitledtoonevote foreachshareofcommonstockyouheldontherecorddate.

HOWDOIVOTE?

YoumayvotebysubmittingaproxyorvotingduringtheAnnualMeetingatwww.virtualshareholdermeeting.com/ AVY2026.Ifyouareabeneficialholder,youmayonlyvoteduringthemeetingifyouproperlyrequestandreceivealegal proxyinyournamefromthenomineethatholdsyourshares.

Themethodofvotingbyproxydiffersdependingonwhetheryouareviewingthisproxystatementonlineor reviewingapapercopy.

•Ifyouareviewingthisproxystatementonline,youmayvoteyoursharesby(i)submittingaproxybytelephone oronlineusingtheinstructionsonthewebsiteor(ii)requestingapapercopyoftheproxymaterialsand followingoneofthemethodsdescribedbelow.

•Ifyouarereviewingapapercopyofthisproxystatement,youmayvoteyoursharesby(i)submittingaproxyby telephoneoronlineusingtheinstructionsontheproxycardor(ii)completing,datingandsigningtheproxycard includedwiththeproxystatementandreturningitinthepreaddressed,postage-paidenvelopeprovided.

WhetherornotyouplantoattendtheAnnualMeeting,weurgeyoutovotepromptly.Weencourageyoutovoteby telephoneoronlinesincethesemethodsimmediatelyrecordyourvoteandallowyoutoconfirmthatyourvoteshave beenproperlyrecorded.Telephoneandonlinevotesmustbereceivedby11:59p.m.EasternTimeonApril29,2026.

WHATIFMYSHARESWEREACQUIREDTHROUGHTHEDIRECTSHAREPURCHASEANDSALEPROGRAM?

SharesacquiredthroughourDirectSharePurchaseandSaleProgrammaybevotedbyfollowingtheprocedures describedabove.

WHATIFMYSHARESAREHELDINTHEEMPLOYEESAVINGSPLAN?

IfyouholdsharesasaparticipantinourEmployeeSavings(401(k))Plan,yourvoteservesasavotinginstructionto FidelityManagementTrustCompany,thetrusteeoftheplan,onhowtovoteyourshares.Yourvotinginstructionmustbe receivedbythetrusteeby11:59p.m.EasternTimeonApril27,2026.

Ifthetrusteedoesnotreceiveyourinstructioninatimelymanner,yourshareswillbevotedinthesameproportionas thesharesvotedbyplanparticipantswhotimelyfurnishinstructions.Sharesofourcommonstockthathavenotbeen allocatedtoparticipantaccountswillalsobevotedbythetrusteeinthesameproportionasthesharesvotedbyplan participantswhotimelyfurnishinstructions.

HOWDOIREVOKEMYPROXYORCHANGEMYVOTEAFTERIHAVEVOTED?

Ifyougiveaproxypursuanttothissolicitation,youmayrevokeitbeforeitisacteduponduringtheAnnualMeeting by(i)submittinganotherproxybytelephoneoronlinebythedeadlineindicatedabove(onlyyourlastinstructionswillbe counted);(ii)sendingalaterdatedpaperproxy;or(iii)ifyouareentitledtodoso,votingduringtheAnnualMeeting. SimplyattendingtheAnnualMeetingwillnotrevokeyourproxy.

Ifyoursharesareheldinstreetname,youmayonlychangeyourvotebysubmittingnewvotinginstructionstoyour nominee.Youmustcontactyournomineetofindouthowtochangeyourvote.SharesheldinourEmployeeSavingsPlan cannotbechangedorrevokedafter11:59p.m.EasternTimeonApril27,2026,norcantheybevotedduringtheAnnual Meeting.

ISMYVOTECONFIDENTIAL?

Exceptincontestedproxysolicitations,whenrequiredbylaworasauthorizedbyyou(suchasbymakingawritten commentonyourproxycard,inwhichcasethecomment,butnotyourvote,maybesharedwithourcompany),yourvote orvotinginstructionisconfidentialandwillnotbedisclosedotherthantothebroker,trustee,agentorinspectorof electiontabulatingyourvote.

HOWWILLVOTESBECOUNTED?

VotesfortheAnnualMeetingwillbetabulatedbyarepresentativefromBroadridgeFinancialSolutions,Inc.,the independentinspectorofelectionappointedbyourBoard.Theinspectorofelectionwillalsodeterminewhethera quorumispresent;sharesrepresentedbyproxiesthatreflectabstentionsorbrokernon-votes(whicharesharesheldby anomineethatarerepresented,butwithrespecttowhichthenomineeneitherhasdiscretionaryauthoritytovotenorhas

102 2026ProxyStatement | AveryDennisonCorporation

beengivenactualauthoritytovoteonaparticularproposal)willbecountedassharesthatarepresentandentitledto voteforpurposesofdeterminingthepresenceofaquorum.Proposals1,2and4arenon-routineundertherulesofthe NYSEandProposal3isroutine.Nomineesareprohibitedfromvotingonnon-routineproposalsintheabsenceof instructionsfromthebeneficialownersoftheshares;asaresult, ifyouholdyoursharesinstreetnameanddonot timelysubmitvotinginstructionstoyournominee,yourshareswillnotbevotedonProposal1,electionofdirectors; Proposal2,approval,onanadvisorybasis,ofexecutivecompensation;orProposal4,voteonstockholderproposal foranindependentBoardChairman. Weurgeyoutopromptlyprovidevotinginstructionstoyournomineesothatyour voteiscounted.

ThevoterequiredtoapproveeachoftheAnnualMeetingproposals,aswellastheimpactofabstentionsandbroker non-votes,isshowninthechartbelow.

PROPOSALVOTEREQUIREDIMPACTOFABSENTIONS IMPACTOF BROKERNON-VOTES

1 Electionofdirectors

2 Advisoryvotetoapproveexecutive compensation

3 RatificationofappointmentofPwCas independentregisteredpublicaccounting firmforfiscalyear2026

4 Voteonstockholderproposalfor independentBoardChairman,ifproperly presentedduringthemeeting

Majorityofvotescast

Notcountedasvotescast; noimpactonoutcome

Majorityofshares representedandentitled tovote Negativeimpactonoutcome

Majorityofshares representedandentitled tovote

Notcountedasvotescast; noimpactonoutcome

Notcountedasrepresentedand entitledtovote; noimpactonoutcome

NegativeimpactonoutcomeNotapplicable

Majorityofshares representedandentitled tovote Negativeimpactonoutcome Notcountedasrepresentedand entitledtovote; noimpactonoutcome

WHATIFTHEREISADDITIONALBUSINESSTOBEVOTEDON?

Asofthedateofthisproxystatement,weknowofnootherbusinesstobepresentedforconsiderationduringthe meeting.Ifanyotherbusinessproperlycomesbeforethemeeting,yourvotewillbecastonanysuchotherbusinessby theindividualsactingpursuanttoyourproxyintheirbestjudgment.

HOWDOIFINDVOTERESULTS?

WeplantoannouncepreliminaryvotingresultsduringtheAnnualMeetingandwillreportfinalvotingresultsina CurrentReportonForm8-KfiledwiththeSEConorbeforeMay6,2026.

ANNUALMEETINGINFORMATION

WHATISTHETIME,DATEANDFORMATOFTHEANNUALMEETING?

TheAnnualMeetingwilltakeplaceat12:00p.m.EasternTimeonApril30,2026.Toallowstockholderstoattend withoutthetimeandexpenseofdoingsoinperson,themeetingwillbeheldvirtually,withattendanceviatheinternet.

HOWCANIATTENDTHEVIRTUALMEETING?

ToattendthevirtualAnnualMeeting,youwillneedtologintothevirtualmeetingwebsiteat www.virtualshareholdermeeting.com/AVY2026usingthe16-digitcontrolnumberonyourNotice,proxycardorvoting instructionform.OnlineaccesstotheliveaudiowebcastoftheAnnualMeetingwillopenat11:45a.m.EasternTimeto allowtimeforyoutologinandtestyourdevice’saudiosystem.Weencourageyoutoaccessthemeetinginadvanceof itsstarttimeaswewillbeginpromptly.

HOWDOIASKQUESTIONSDURINGTHEMEETING?

WehavedesignedthevirtualAnnualMeetingtoensurethatyouhavethesamerightsandopportunitiesto participateasyouwouldatanin-personmeeting,usinganonlineplatformthatallowsyoutoattend,voteandask questions. Onlystockholdersasoftherecorddateortheirproperlyappointedproxiesmayaskquestionsduringthe meeting,andourChairmanmaylimitthelengthofdiscussiononanyparticularmatter.DuringtheAnnualMeeting,you canviewourGroundRulesforConductofMeetingandsubmitquestionsonthemeetingwebsite.

AfterthebusinessportionoftheAnnualMeetingconcludesandthemeetingisadjourned, wewillholdaQ&A sessionduringwhichweintendtoanswerallquestions submittedtimelythatarepertinenttoourcompanyandthe proposalsbeingbroughtbeforestockholdervote,astimepermitsandinaccordancewithourGroundRulesforConduct ofMeeting.Questionsandanswerswillbegroupedbytopicandsubstantiallysimilarquestionswillbeansweredonly once.Toensureallquestionsareabletobeaddressed,wewillrespondtonomorethanthreequestionsfromanysingle stockholder. Answerstoquestionsnotabletobeaddressed,ifany,willbepostedpromptlyafterthemeetingonthe investorssectionofourwebsite.

Asaresultoftimeconstraintsandotherconsiderations,wecannotassureyouthateverystockholderwishingto addressthemeetingwillhavetheopportunitytodoso.However,stockholdersareinvitedtodirectinquiriesorcomments regardingbusinessmatterstoourInvestorRelationsdepartmentbyemailtoinvestorcom@averydennison.comorbymail to8080NortonParkway,Mentor,Ohio44060.Inaddition,stockholderswishingtoaddressmatterstoourBoardorany ofitsmembersmaydosoasdescribedunder ContactingOurBoard intheOurBoardofDirectorssectionofthisproxy statement.

WHATDOIDOIFIAMHAVINGTECHNICALISSUESACCESSINGORPARTICIPATINGINTHEMEETING?

Beginning15minutespriorto,andduring,theAnnualMeeting,wewillhavesupportavailabletoassiststockholders withanytechnicaldifficultiestheymayhaveaccessingorhearingthevirtualmeeting.Ifyouencounteranydifficulty accessing,orduring,thevirtualmeeting,pleasecallthesupportteamat1.844.986.0822(toll-freeintheU.S.and Canada)or+1.303.562.9302(forallotherattendees).

HOWAREPROXIESBEINGSOLICITED?

Wewillpaythecostsrelatedtooursolicitationofproxiesandreimbursebanks,brokersandothercustodians, nomineesandfiduciariesforreasonableout-of-pocketexpensestheyincurinforwardingourproxymaterialstobeneficial stockholders.WehaveretainedSodali&Co.toassistinsolicitingproxiesforafeeof$12,000,plusreimbursementof out-of-pocketexpenses.Certainofouremployeesthatmaysolicitproxiesbytelephoneoremailwillnotreceive additionalcompensationfortheirefforts.Youcanhelpreduceoursolicitationcostsbyconsentingtoaccessourproxy materialselectronicallyandvotingpromptly.

MATTERSRELATEDTO2027ANNUALMEETING

HOWDOISUBMITPROPOSALSFORPOTENTIALCONSIDERATIONATTHE2027ANNUALMEETING?

ToproposebusinesssatisfyingtheeligibilityrequirementsofSECRule14a-8tobeconsideredforinclusioninour proxystatementforthe2027AnnualMeeting,youmustprovidenoticesoitisreceivedatourprincipalexecutiveoffices onorbeforeNovember12,2026.IfyouwishtonominatepersonsforelectiontoourBoardorbringanyotherbusiness beforeanannualmeetingundertheadvancenoticeprovisionsorourBylaws,youmustprovidewrittennoticetoour CorporateSecretaryatourprincipalexecutiveofficesinwriting90to120dayspriortothefirstanniversaryofthe precedingyear’sannualmeeting(withrespecttothe2027AnnualMeeting,noearlierthanDecember31,2026andno laterthanJanuary30,2027)andcomplywiththeotherrequirementssetforthinourBylaws.

Yournoticemustinclude,amongotherthings,theinformationsummarizedbelowanddescribedingreaterdetailin ArticleII,Section14ofourBylaws,whichareavailableunder GovernanceDocuments intheinvestorssectionofour website.

•Astoeachpersonwhoyouproposetonominateforelectionorreelectionasadirector:

•Allinformationrelatingtothepersonthatisrequiredtobedisclosedinsolicitationsofproxiesforelectionof directorsinanelectioncontestorisotherwiserequiredpursuanttoRegulation14undertheExchangeAct

•Theperson’swrittenconsenttobenamedinourproxystatementandaccompanyingproxycardasa nomineeandserveasadirectorifelectedforthefulltermuntilthenextmeetingatwhichsuchnominee wouldfacereelection

•Allinformationwithrespecttosuchpersonthatwouldberequiredtobesetforthinastockholder’snotice pursuanttoourBylawsifsuchpersonwereastockholder

•Adescriptionofalldirectandindirectmaterialinterestinanymaterialcontractoragreementbetweenor amonganystockholder,ontheonehand,andthenominee,nominee’saffiliatesoranyotherparticipantsin thesolicitation,ontheotherhand,asmoreparticularlysetforthinourBylaws

2026ProxyStatement | AveryDennisonCorporation

•Astoanyotherproposalyouplantobringbeforethemeeting,abriefdescriptionofthebusiness;thereasonsfor conductingthebusinessduringthemeeting;areasonablydetaileddescriptionofallagreements,arrangements andunderstandingsbetweenoramonganystockholdersandbetweenoramonganystockholderandother personorentityinconnectionwiththeproposalofsuchbusinessbysuchstockholder;andanyotherinformation relatingtosuchproposalthatwouldberequiredtobedisclosedinaproxystatementorotherfilingrequiredto bemadeinconnectionwithsolicitationsofproxiesinsupportofthebusinessproposedtobebroughtbeforethe meetingpursuanttoSection14(a)oftheExchangeAct

•Yourname,address,andtheclassandnumberofsharesyouownbeneficiallyandasofrecord,aswellas informationrelatingtoyoursecurityownershipinourcompany

Stockholderproposalsthatdonotfullycomplywiththeadvancenoticeandotherrequirementscontainedinour Bylawswillnotbepermittedtobebroughtbeforethe2027AnnualMeeting.Inadditiontosatisfyingtherequirements underourBylaws,tocomplywiththeSEC’suniversalproxyrules,stockholderswhointendtosolicitproxiesinsupportof directornomineesotherthanourBoard’snomineesmustprovidewrittennoticenolaterthanMarch1,2027toour CorporateSecretaryatourprincipalexecutiveofficesthatincludestheinformationrequiredbyRule14a-19underthe ExchangeAct.

WeintendtofileaproxystatementandawhiteproxycardwiththeSECinconnectionwithoursolicitationofproxies forthe2027AnnualMeeting.

HOWDOINOMINATEDIRECTORSFORINCLUSIONINTHE2027PROXYSTATEMENT?

OurBylawspermitastockholder,oragroupofnomorethan20stockholders,owningatleast3%ofourcompany’s outstandingsharesofcommonstockcontinuouslyforatleastthreeyearstonominateandincludeinourannualmeeting proxymaterialsdirectornomineesconstitutinguptothegreateroftwonomineesor20%ofourBoard.Writtennoticeof proxyaccessdirectornomineesforthe2027AnnualMeetingmustbedeliveredtoourCorporateSecretaryatour principalexecutiveofficesnoearlierthanOctober13,2026andnolaterthanNovember12,2026andmustcomplywith therequirementssetforthinArticleII,Section17ofourBylaws,whichareavailableunder GovernanceDocuments inthe investorssectionofourwebsite.

[THISPAGEINTENTIONALLYLEFTBLANK]

APPENDIXA–RECONCILIATIONOFNON-GAAPFINANCIALMEASURES FROMGAAP

WereportourfinancialresultsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesof America,orGAAP,andalsocommunicatewithinvestorsusingcertainnon-GAAPfinancialmeasures.Thesenon-GAAP financialmeasuresarenotinaccordancewith,noraretheyasubstitutefororsuperiorto,thecomparableGAAPfinancial measures.Thesenon-GAAPfinancialmeasuresareintendedtosupplementthepresentationofourfinancialresults preparedinaccordancewithGAAP.Weusethesenon-GAAPfinancialmeasuresinternallytoevaluatetrendsinour underlyingperformance,aswellastofacilitatecomparisonswiththeresultsofcompetitorsforquartersandyear-to-date periods,asapplicable.Basedonfeedbackfrominvestorsandfinancialanalysts,webelievethatthesupplemental non-GAAPfinancialmeasuresweprovidearealsousefultotheirassessmentsofourperformanceandoperatingtrends, aswellasliquidity.

Ournon-GAAPfinancialmeasuresexcludetheimpactofcertainevents,activitiesorstrategicdecisions.The accountingeffectsoftheseevents,activitiesordecisions,whichareincludedintheGAAPfinancialmeasures,maymake itmoredifficulttoassessourunderlyingperformanceinasingleperiod.Byexcludingtheaccountingeffects,positiveor negative,ofcertainitems(e.g.,restructuringcharges,outcomesofcertainlegalmattersandsettlements,certaineffectsof strategictransactionsandrelatedcosts,lossesfromdebtextinguishments,gainsorlossesfromcurtailmentorsettlement ofpensionobligations,gainsorlossesonsalesofcertainassets,gainsorlossesonventureandotherinvestments, currencyadjustmentsduetohighlyinflationaryeconomies,andotheritems),webelievethatweareprovidingmeaningful supplementalinformationthatfacilitatesanunderstandingofourcoreoperatingresultsandliquiditymeasures.While someoftheitemsweexcludefromGAAPfinancialmeasuresrecur,theytendtobedisparateinamount,frequencyor timing.

Weusethenon-GAAPfinancialmeasuresdefinedbelowinthisproxystatement,whicharereconciledfromGAAP onthefollowingpages.

• Saleschangeex.currency referstotheincreaseordecreaseinnetsales,excludingtheestimatedimpactof foreigncurrencytranslation,and,whereapplicable,currencyadjustmentsfortransitionalreportingofhighly inflationaryeconomies,andthereclassificationofsalesbetweensegments.Additionally,whereapplicable,sales changeex.currencyisalsoadjustedfortheestimatedimpactofextradaysinourfiscalyearandthecalendar shiftresultingfromextradaysinthepriorfiscalyear.Theestimatedimpactofforeigncurrencytranslationis calculatedonaconstantcurrencybasis,withprior-periodresultstranslatedatcurrent-periodaverageexchange ratestoexcludetheeffectofforeigncurrencyfluctuations.

Our2025fiscalyearbeganonDecember29,2024andendedonDecember31,2025;fiscalyears2026and beyondwillbecoincidentwiththecalendaryearbeginningonJanuary1andendingonDecember31.

• Organicsaleschange referstosaleschangeex.currency,excludingtheestimatedimpactofacquisitionsand productlinedivestitures.

Webelievethatsaleschangeex.currencyandorganicsaleschangeassistinvestorsinevaluatingthesales changefromtheongoingactivitiesofourbusinessesandenhancetheirabilitytoevaluateourresultsfromperiod toperiod.

• AdjustedEBITDA referstoadjustedoperatingincomebeforedepreciationandamortization.Adjustedoperating incomeisnetincomeadjustedfortaxes;otherexpense(income),net;interestexpense;othernon-operating expense(income),net;andotheritems.

• AdjustedEBITDAmargin referstoadjustedEBITDAasapercentageofnetsales.

• Adjustednetincomepercommonshare,assumingdilution(adjustedEPS),referstoadjustednetincomedivided bytheweightedaveragenumberofcommonsharesoutstanding,assumingdilution.Adjustednetincomeis incomebeforetaxes,tax-effectedattheadjustedtaxrate,andadjustedfortax-effectedrestructuringcharges andotheritems.Adjustedtaxrateisthefull-yearGAAPtaxrate,adjustedtoexcludecertainunusualor infrequenteventsthatsignificantlyimpactthatrate,suchaseffectsofcertaindiscretetaxplanningactions, impactsrelatedtoenactmentsofcomprehensivetaxlawchanges,andotheritems.

WebelievethatadjustedEBITDA,adjustedEBITDAmarginandadjustedEPSassistinvestorsinunderstanding ourcoreoperatingtrendsandcomparingourresultswiththoseofourcompetitors.

• Adjustedfreecashflow referstocashflowprovidedbyoperatingactivities,lesspaymentsforproperty,plant andequipment,lesspaymentsforsoftwareandotherdeferredcharges,plusproceedsfromcompany-ownedlife insurancepolicies,plusproceedsfromsalesofproperty,plantandequipment,plus(minus)netproceedsfrom insuranceandsales(purchases)ofinvestments,lessnetcashusedforArgentineBlueChipSwapsecurities. Whereapplicable,adjustedfreecashflowisalsoadjustedforcertainacquisition-relatedtransactioncosts.We believethatadjustedfreecashflowassistsinvestorsbyshowingtheamountofcashwehaveavailablefordebt reductions,dividends,sharerepurchases,andacquisitions.

• Adjustedfreecashflowconversion referstoadjustedfreecashflowdividedbynetincome.

• Returnontotalcapital (ROTC)referstonetincomeexcludinginterestexpenseandamortizationofintangible assetsfromacquisitions,netoftaxbenefit,dividedbytheaverageofbeginningandendinginvestedcapital.We believethatROTCassistsinvestorsinunderstandingourabilitytogeneratereturnsfromourcapital.

• Adjustedearningsbeforeinterestandtaxes (EBIT)referstoearningsbeforeinterestexpense,other non-operatingexpense(income),taxes,excludingnon-cashrestructuringcostsandotheritems.Weuse adjustedEBITtocalculateeconomicvalueadded(EVA),oneoftheperformanceobjectivesusedinourlong-term incentivecompensationprogram.WebelievethatadjustedEBITassistsinvestorsinunderstandingourcore operatingtrendsandcomparingourresultswiththoseofourcompetitors.

SALESCHANGEEX.CURRENCYANDORGANICSALESCHANGE

($inmillions,except%)

20212022202320242025

2021-2025

Netsales$8,408.3$9,039.3$8,364.3$8,755.7$8,855.54.9%2.9%

Reportednetsaleschange20.6%7.5%(7.5)%4.7%1.1% Foreigncurrencytranslation(3.4)%5.6%0.6%0.4%(0.3)% Impactofextradays1.4%–––(0.4)%

Saleschangeex.currency(non-GAAP)(3) 18.6%13.1%(6.9)%5.1%0.4%5.7%2.7% Acquisitionsandproductlinedivestiture(3.1)%(3.6)%(0.8)%(0.6)%(0.2)%(1.6)%(0.4)% Organicsaleschange(non-GAAP)(3) 15.6%9.5%(7.7)%4.5%0.2%4.1%2.3%

(1) Reflectsfive-yearcompoundannualgrowthrates,with2020asthebaseperiod.

(2) Reflectstwo-yearcompoundannualgrowthrates,with2023asthebaseperiod.

(3) Totalsmaynotsumduetorounding.

ADJUSTEDEBITDAANDADJUSTEDEBITDAMARGINS

($inmillions,except%)

20212022202320242025

Netsales$8,408.3$9,039.3$8,364.3$8,755.7$8,855.5

Asreportednetincome$740.1$757.1$503.0$704.9$688.0

Adjustments:

Interestexpense70.284.1119.0117.0135.4

Othernon-operatingexpense (income),net(4.1)(9.4)(30.8)(26.7)(14.2)

Provisionforincometaxes248.6242.2191.7248.6237.1

Equitymethodinvestmentlosses3.9

2021-2025 5-YRCAGR(1)

2024-2025 2-YRCAGR(2)

Operatingincomebeforeinterestexpense, othernon-operatingexpense(income), net,provisionforincometaxes,and equitymethodinvestmentlosses$1,058.7$1,074.0$782.9$1,043.8$1,046.35.3%15.6%

Operatingmargins12.6%11.9%9.4%11.9%11.8%

Non-GAAPadjustments:

Restructuringcharges,netofreversals:

Severanceandrelatedcosts, netofreversals$10.5$7.6$70.8$35.4$43.2

Assetimpairmentandlease cancellationcharges3.10.18.66.54.0

Otheritems(3) (8.0)(8.3)101.536.430.3

Adjustedoperatingincome(non-GAAP)$1,064.3$1,073.4$963.8$1,122.1$1,123.8

Adjustedoperatingmargins(non-GAAP)12.7%11.9%11.5%12.8%12.7%

Depreciationandamortization$244.1$290.7$298.4$312.2$328.2

AdjustedEBITDA(non-GAAP)$1,308.4$1,364.1$1,262.2$1,434.3$1,452.06.3%7.3%

AdjustedEBITDAmargins(non-GAAP)15.6%15.1%15.1%16.4%16.4%

(1) Reflectsfive-yearcompoundannualgrowthrates,with2020asthebaseperiod.

(2) Reflectstwo-yearcompoundannualgrowthrates,with2023asthebaseperiod.

(3) Includespre-tax(gain)/lossonventureandotherinvestments,net,gainonsaleofproductline,(gain)/lossonsalesofassets,outcomesoflegalmattersand settlements,net,transactionandrelatedcosts,andlossesfromArgentinepesoremeasurementandBlueChipSwaptransactions.

ADJUSTEDEPS

($inmillions,exceptpershareamounts)

20212022202320242025

2021-2025 5-YRCAGR(1)

2024-2025 2-YRCAGR(2)

Asreportednetincome$740.1$757.1$503.0$704.9$688.04.4%17.0%

Asreportednetincomepercommonshare, assumingdilution$8.83$9.21$6.20$8.73$8.795.9%19.1%

Non-GAAPadjustmentspercommonshare, netoftax:

Restructuringchargesandotheritems(3) 0.05(0.06)1.850.750.75

Argentineinterestincome––(0.15)(0.05)(0.01) Pensionplansettlementandcurtailmentlosses0.03

Adjustednetincomepercommonshare, assumingdilution(non-GAAP)$8.91$9.15$7.90$9.43$9.536.1%9.8%

Adjustedtaxrateswere25%,24.7%,25.8%,25.9%and25.5%for2021,2022,2023,2024and2025,respectively.

(1) Reflectsfive-yearcompoundannualgrowthrates,with2020asthebaseperiod.

(2) Reflectstwo-yearcompoundannualgrowthrates,with2023asthebaseperiod.

(3) Otheritemsinclude(gain)/lossonventureandotherinvestments,net,gainonsaleofproductline,(gain)/lossonsalesofassets,outcomesoflegal mattersand settlements,net,transactionandrelatedcosts,andlossesfromArgentinepesoremeasurementandBlueChipSwaptransactions.

ADJUSTEDFREECASHFLOWANDADJUSTEDFREECASHFLOWCONVERSION

($inmillions)

202320242025

Netcashprovidedbyoperatingactivities$826.0$938.8$881.4 Purchasesofproperty,plantandequipment(265.3)(208.8)(169.0) Purchasesofsoftwareandotherdeferredcharges(19.8)(31.0)(31.4) Proceedsfromcompany-ownedlifeinsurancepolicies48.1––PurchasesofArgentineBlueChipSwapsecurities–(34.2)–ProceedsfromsalesofArgentineBlueChipSwapsecurities–24.0–Proceedsfromsalesofproperty,plantandequipment1.00.622.6 Proceedsfrominsuranceandsales(purchases)ofinvestments,net1.910.13.5

Adjustedfreecashflow(non-GAAP)$591.9$699.5$707.1

Asreportednetincome $503.0$704.9$688.0

Adjustedfreecashflowconversion(non-GAAP)118%99%103%

RETURNONTOTALCAPITAL(ROTC)

202320242025

Netincome,excludinginterestexpenseandintangibleamortization,netoftaxbenefit$651.7$857.5$857.7

ADJUSTEDEARNINGSBEFOREINTERESTANDTAXES(EBIT)

Operatingincomebeforeinterestexpense,othernon-operatingexpense(income),andtaxes$782.9$1,043.8$1,046.3 Reconcilingitems:

8.36.03.0

175.6108.5113.9

Adjustedearningsbeforeinterestexpense,othernon-operatingexpense(income),taxes,non-cash restructuringcostsandotheritems(non-GAAP)$966.8$1,158.3$1,163.2 (1) Includespretaximpactofacquisitionscompletedafterour2023-2025financialtargetswereset,intangibleamortization,(gain)/lossonventure andother investments,net,(gain)/lossonsalesofassets,outcomesoflegalmattersandsettlements,net,transactionandrelatedcosts,andlossesfromArgentinepeso remeasurementandBlueChipSwaptransactions.

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