ACCO Brands reported third-quarter sales of $380.3 million, slightly below a year earlier, as growth from acquisitions and currency effects was outweighed by weaker comparable sales. Earnings improved, but a $15.1 million benefit from tariff refunds was a significant contributor. The company also completed its acquisition of technology-peripherals company Trust on Oct. 1 and raised its 2026 outlook to reflect the refunds and the acquisition.
Third-quarter results
- Sales slipped 0.9% to $380.3 million from $383.7 million. The EPOS acquisition added 4.9% to sales and favorable currency added 0.4%, but comparable sales fell 6.2%.
- Technology peripherals remained a weak spot, with ACCO citing softness tied to broader industry challenges. The company said its back-to-school season was positive in North America and Mexico, though more sales were recognized in the second quarter.
- Operating income rose to $30.3 million from $26.0 million. Results included $15.1 million in net tariff refunds and $5.9 million in one-time charges, compared with $1.5 million in one-time charges a year earlier.
- Adjusted operating income increased to $47.8 million from $39.2 million, reflecting cost savings partly offset by a less favorable sales mix. The tariff refunds added 400 basis points to the adjusted operating margin.
- Net income was $11.5 million, or 12 cents per share, versus $4.0 million, or 4 cents, a year earlier. Adjusted net income rose to $27.2 million from $19.5 million, and adjusted earnings per share increased to 28 cents from 21 cents. Both reported and adjusted per-share earnings included an 11-cent net benefit from tariff refunds.
Segment performance
- ACCO Brands Americas: Sales fell 3.4% to $219.8 million. EPOS contributed 2.0% growth and currency 1.0%, but comparable sales declined 6.4%. Operating income was $25.4 million versus $24.7 million; adjusted operating income rose to $38.1 million from $32.7 million, with tariff refunds helping offset lower mix and volume.
- ACCO Brands International: Sales increased 2.8% to $160.5 million, including a 9.2% contribution from EPOS, despite comparable sales declining 6.0%. The company cited weaker technology-peripherals demand and softness in Australia. Operating income rose to $12.4 million from $10.5 million, while adjusted operating income increased to $17.0 million from $15.9 million, reflecting pricing and cost savings partly offset by lower mix.
Nine-month results and acquisition
- Sales for the first nine months rose 3.9% to $1.14 billion. EPOS added $56.4 million and favorable currency added $27.6 million, while comparable sales fell 3.7%. ACCO attributed the decline mainly to technology-peripherals trends, partly offset by stronger learning and creative demand in the Americas.
- Adjusted operating income increased to $107.6 million from $93.2 million. Reported operating income edged down to $50.2 million from $52.3 million, with this year’s results including $23.2 million in restructuring and other non-recurring items; the prior-year period included a $6.9 million asset-sale gain.
- Nine-month net income was $45.0 million, or 47 cents per share, compared with $20.0 million, or 21 cents, a year earlier. The current-year result included a $33.8 million bargain-purchase gain related to the EPOS acquisition. Adjusted net income rose to $56.4 million from $43.3 million, and adjusted earnings per share increased to 59 cents from 46 cents.
- ACCO completed its acquisition of Trust on Oct. 1. The company said the deal will expand its technology-peripherals portfolio to nearly $500 million in pro forma annual sales. It plans to integrate Trust with its Kensington, PowerA and EPOS brands and pursue cost and other synergies.
- The company raised its full-year 2026 outlook, citing the tariff refunds and Trust acquisition. ACCO also said it generated strong cash flow, continued to pay down debt and ended September with a consolidated leverage ratio of 3.6 times.
The quarter’s sales decline reflects weaker comparable demand beneath the contribution from acquisitions and currency. Profit measures improved, but the tariff refunds materially boosted quarterly earnings and margins. Trust’s addition expands ACCO’s technology-peripherals business, which management identified as its strongest long-term growth opportunity.