Acco Brands | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 343.7 M

Revenue: As of FY2026 Q1, the actual value is USD 343.7 M, beating the estimate of USD 319.93 M.

EPS: As of FY2026 Q1, the actual value is USD 0.2, beating the estimate of USD -0.17.

EBIT: As of FY2026 Q1, the actual value is USD -1.1 M.

Consolidated Financial Performance

Net Sales

For the three months ended March 31, 2026, net sales increased by $26.3 million, or 8.3%, to $343.7 million, compared to $317.4 million in the prior year’s first quarter. This increase included $19.1 million from favorable foreign exchange and $15.2 million from the EPOS acquisition. Comparable net sales decreased by 2.5%, driven by a - $12.6 million, or 4.0%, decrease in volume due to lower global demand for consumer and business products, partially offset by price increases.

Gross Profit

Gross profit increased by $7.2 million, or 7.2%, to $106.8 million for the three months ended March 31, 2026, up from $99.6 million in the prior year. The gross profit margin was 31.1% in 2026, a slight decrease from 31.4% in 2025.

Selling, General and Administrative Expenses (SG&A)

SG&A increased by $6.4 million, or 6.9%, to $99.1 million for the three months ended March 31, 2026, compared to $92.7 million in the prior year.

Operating Loss

The company reported an operating loss of - $10.4 million for the three months ended March 31, 2026, compared to an operating loss of - $6.7 million in the prior year. The operating loss margin was -3.0% in 2026, compared to -2.1% in 2025.

Bargain Purchase Gain

A preliminary bargain purchase gain of - $37.6 million was recorded for the three months ended March 31, 2026, related to the acquisition of EPOS.

Net Income (Loss)

Net income for the three months ended March 31, 2026, was $19.4 million, a significant improvement from a net loss of - $13.2 million in the prior year.

Cash Flow from Operating Activities

Cash provided by operating activities was $3.5 million for the three months ended March 31, 2026, a decrease from $5.5 million in the prior year.

Cash Flow from Investing Activities

Cash used in investing activities was - $3.2 million for the three months ended March 31, 2026, compared to - $12.3 million in the prior year, including - $1.1 million for the EPOS acquisition, net of cash acquired, and capital expenditures.

Cash Flow from Financing Activities

Cash provided by financing activities was $53.9 million for the three months ended March 31, 2026, down from $64.0 million in the prior year.

Total Debt

As of March 31, 2026, total debt was $901.0 million, compared to $840.9 million as of December 31, 2025. Long-term debt, net, was $848.0 million as of March 31, 2026, up from $806.0 million as of December 31, 2025.

Consolidated Leverage Ratio

As of March 31, 2026, the Consolidated Leverage Ratio was approximately 4.14 to 1.00.

ACCO Brands Americas Segment

Net Sales

For the three months ended March 31, 2026, net sales increased by $4.6 million, or 2.6%, to $178.5 million. This included $5.1 million from favorable foreign exchange and $3.5 million from the EPOS acquisition. Comparable net sales decreased by 2.3%, driven by a - $7.6 million, or 4.4%, decrease in volume, partially offset by growth in Latin America and computer accessories. Price, net of customer programs, increased sales by $3.6 million, or 2.1%.

Segment Operating Income

Operating income for the three months ended March 31, 2026, increased by $2.5 million to $3.4 million, compared to $0.9 million in the prior year. The segment operating income margin was 1.9% in 2026, up from 0.5% in 2025.

Segment Assets

As of March 31, 2026, segment assets were $393.8 million, decreasing from $445.9 million as of December 31, 2025.

Property, Plant and Equipment, Net

As of March 31, 2026, property, plant and equipment, net, was $72.9 million, slightly down from $73.5 million as of December 31, 2025.

Capital Spend

Capital spend for the three months ended March 31, 2026, was $1.5 million, significantly lower than $13.4 million for the year ended December 31, 2025.

Depreciation Expense

Depreciation expense for the three months ended March 31, 2026, was $3.0 million, down from $4.5 million in the prior year.

ACCO Brands International Segment

Net Sales

For the three months ended March 31, 2026, net sales increased by $21.7 million, or 15.1%, to $165.2 million. This included $14.0 million from favorable foreign exchange and $11.7 million from the EPOS acquisition. Comparable net sales decreased by 2.8%, driven by a - $5.0 million, or 3.5%, decrease in volume, partially offset by price increases of $1.0 million, or 0.7%.

Segment Operating Income

Operating income for the three months ended March 31, 2026, decreased by - $2.7 million to $2.4 million, compared to $5.1 million in the prior year. The segment operating income margin was 1.5% in 2026, down from 3.6% in 2025.

Segment Assets

As of March 31, 2026, segment assets were $239.9 million, increasing from $202.9 million as of December 31, 2025.

Property, Plant and Equipment, Net

As of March 31, 2026, property, plant and equipment, net, was $65.6 million, slightly up from $65.3 million as of December 31, 2025.

Capital Spend

Capital spend for the three months ended March 31, 2026, was $1.8 million, significantly lower than $6.1 million for the year ended December 31, 2025.

Depreciation Expense

Depreciation expense for the three months ended March 31, 2026, was $2.4 million, up from $2.2 million in the prior year.

Outlook and Strategy

ACCO Brands Corporation anticipates continued impact from softer global demand, weak macroeconomic conditions, and geopolitical instability. The company is implementing a multi-year restructuring and cost savings program, targeting approximately $100.0 million in annualized pre-tax cost savings by the end of 2026, with $70.0 million realized since inception. Priorities for cash flow use include debt reduction, dividends, funding strategic acquisitions, and share repurchases, subject to market conditions and a 2026 restriction on dividend payments or share repurchases.