Key Highlights

● Net sales were US$415.1 million, up 5.1%, with EPOS contributing 5.7 percentage points.

● Americas adjusted operating margin improved to 21.2% from 17.4%.

● International comparable sales declined 9.3%, with an operating loss of US$4.8 million.

● Free cash outflow for the first six months was US$38.6 million.

ACCO Brands Corporation (NYSE:ACCO), a Lake Zurich, Illinois-based maker of office, school and technology accessories whose common stock trades on the New York Stock Exchange as ACCO, reported second-quarter 2026 results on 30 July 2026. The company is a separate issuer from Acco Group Holdings Limited (NASDAQ:ACCL), a Hong Kong corporate-services business listed on Nasdaq. All figures below are US dollars, historical unless labelled as outlook, and taken from the company's own release.

Net sales were US$415.1 million, up 5.1 per cent from US$394.8 million a year earlier. The increase was driven by the acquisition of EPOS, which contributed 5.7 percentage points, and favourable currency movements, worth 1.7 points. Comparable sales, which strip those effects out, fell 2.3 per cent.

Profit measures diverged

Reported operating income fell to US$30.3 million from US$33.0 million, and the latest quarter included US$5.2 million of one-off charges while the prior year benefited from a US$6.9 million asset-sale gain. Adjusted operating income, a non-GAAP measure, edged up to US$48.1 million, although the adjusted margin eased to 11.6 per cent from 11.9 per cent. Net income was US$14.1 million, or US$0.15 per diluted share, compared with US$29.2 million, or US$0.31, last year, when a US$13.4 million discrete tax benefit flattered the result. Adjusted earnings per share rose to US$0.29 from US$0.28.

Two regions, different stories

The Americas segment delivered sales of US$262.9 million, up 5.8 per cent, with comparable sales up 1.8 per cent on learning and creative products. Its adjusted operating margin improved to 21.2 per cent from 17.4 per cent. The International segment was weaker: sales of US$152.2 million rose 4.0 per cent only because of EPOS and currency, while comparable sales declined 9.3 per cent on softer office-product demand in EMEA and Australia, and disruption from a planned warehouse-system upgrade. It recorded an operating loss of US$4.8 million. Management says that upgrade is now complete.

Balance sheet and cash flow

At 30 June 2026 cash was US$106.4 million and total debt US$930.4 million, giving net debt of US$827.4 million and a consolidated leverage ratio of 4.3 times. Free cash outflow for the first six months was US$38.6 million compared with US$40.2 million a year earlier. A quarterly dividend of US$0.075 per share was declared on 24 July, payable on 9 September 2026.

Management outlook

Management raised its 2026 outlook: reported sales growth of 2.0 to 5.0 per cent, previously flat to 3.0 per cent, and adjusted earnings per share of US$0.87 to US$0.91, up from US$0.84 to US$0.89. It reiterated free cash flow of US$75 million to US$85 million and a year-end leverage ratio of 3.7 to 3.9 times. For the third quarter it guided to reported sales between a 1.0 per cent decline and a 2.0 per cent rise, and adjusted earnings per share of US$0.17 to US$0.21. These are management expectations.

Acquisition and Currency Lift Sales While International Demand Stays Soft

The quarter illustrates the tension in the story: acquisition and currency lifted headline sales, while underlying demand in International remained under pressure. Delivery of the planned free cash flow and the fall in leverage from 4.3 times matter at least as much as the earnings guidance. The company continues a US$100 million multi-year cost-reduction programme and says EPOS integration and synergy targets are on track.

The release cites risks including tariffs and the timing of any tariff refunds, supply-chain disruption, currency and litigation. Adjusted figures exclude items that the company chooses to adjust in its reconciliations.