Key Highlights

  • ACCO shares trading up 20.18% to $5.24 today.
  • Third-quarter adjusted EPS rose to $0.28 from $0.21 a year earlier.
  • Adjusted EBITDA reached $55.4 million, a 14.6% Margin versus 11.9% last year.
  • Free Cash Flow reached $127.6 million in the third quarter, with $89.0 million for the first nine months of 2026.
  • Full-year adjusted EPS guidance was raised to a range of $0.98 to $1.02.

Higher Margins and Tariff Refunds Lift Third-Quarter Earnings

ACCO Brands (NYSE:ACCO) shares are trading up 20.18% today after the company reported third-quarter results that showed a clear improvement in profitability. Adjusted Earnings came in at $0.28 per share, compared with $0.21 a year earlier, and included about $0.11 per share from net tariff refunds.

ACCO Brands makes and sells everyday workplace and school products, including office supplies and computer accessories, through its Americas and International segments. Net sales slipped 0.9% to $380.3 million, as a 6.2% drop in comparable sales was largely offset by a 4.9% lift from the EPOS Acquisition and a small currency benefit.

Adjusted Operating Income climbed to $47.8 million, a 12.6% margin, up from 10.2% last year. Reported Net Income was $11.5 million, or $0.12 per diluted share, versus $4.0 million, or $0.04, a year earlier.

Cash Flow Surge and Lower Net Debt Frame the Quarter

Free cash flow reached $127.6 million in the quarter and $89.0 million for the first nine months, which included $21.3 million of tariff refunds. The company reported a comparison figure of $25.8 million from a year earlier.

Cash stood at $174.7 million at the end of September, including funds held for the Trust acquisition. Net debt fell to $706.5 million from $795.3 million a year earlier, while the consolidated Leverage Ratio was 3.6 times.

Over the first nine months, net sales rose 3.9% to $1,139.1 million and adjusted EPS reached $0.59, up from $0.46. Reported net income of $45.0 million, or $0.47 per share, included a $33.8 million bargain purchase gain.

Trust Deal Closes and 2026 Guidance Moves Higher

ACCO Brands completed the Trust acquisition on October 1, adding to its technology accessories business. Management expects pro forma annual tech peripherals sales to approach $500 million.

The company raised its 2026 outlook to reported sales growth of 4.0% to 6.0%, which includes one quarter of Trust. Adjusted EPS is now expected between $0.98 and $1.02, including $0.12 from the tariff refund, with free cash flow of about $100 million and year-end leverage near 3.5 times.

The board also declared a quarterly Dividend of $0.075 per share, payable December 9 to holders of record on November 20.

Shares Break Above Recent 52-Week High as Debt Reduction Stays in Focus

Market data from last week showed a market Capitalization of about $432 million, a trailing price-to-earnings ratio near 7.5 and a 52-week range of $2.81 to $4.74. Today's price sits above that previous high. A single research-firm consensus target of $8.00 was also listed, shown here as a data point only.

Investors will likely watch how Trust performs in its first full quarter, whether comparable sales stabilize after the 6.2% decline, and how much of the tariff refund benefit carries into fourth-quarter results. The next dividend payment and progress toward the 3.5 times leverage target are the other dated markers. The company is also hosting its earnings webcast today.