Key Highlights

  • Third quarter net sales fell 0.9% to $380.3 million from $383.7 million a year earlier.
  • Diluted EPS was $0.12 and adjusted EPS was $0.28, each including $0.11 of net Tariff refunds.
  • Net tariff refunds lifted Operating Income by $15.1 million, adding 400 basis points to the adjusted operating margin.
  • Comparable sales declined 6.2% as technology peripherals softened.
  • Full-year adjusted EPS is now expected at $0.98 to $1.02, including $0.12 from the tariff refund.

Tariff refunds lift Earnings while comparable sales slip 6.2%

ACCO Brands (NYSE:ACCO), a maker of branded technology peripherals, workspace solutions, and education and creative products, reported third quarter 2026 results on October 29, 2026. Net sales were $380.3 million, a decline of 0.9% from $383.7 million in 2025. The EPOS Acquisition added 4.9% and favorable foreign exchange added 0.4%, but a 6.2% fall in comparable sales more than offset both.

Net income rose to $11.5 million, or $0.12 per share, from $4.0 million, or $0.04 per share, a year earlier. Adjusted Earnings Per Share climbed to $0.28 from $0.21, while adjusted Net Income increased to $27.2 million from $19.5 million.

The company said net tariff refunds benefited consolidated operating income by $15.1 million in the quarter. That equated to $0.11 per diluted share and 400 basis points of improvement in the adjusted operating margin. Management said underlying operations were in line with its outlook.

Technology peripherals soften in both segments

ACCO Brands Americas posted net sales of $219.8 million, down 3.4% from $227.6 million. EPOS added 2.0% and foreign currency added 1.0%, but comparable sales fell 6.4%. Lower Demand for technology peripherals was partly offset by growth in Latin America. Adjusted operating income rose to $38.1 million from $32.7 million, helped by the tariff refunds and partly offset by lower mix and volume.

ACCO Brands International reported net sales of $160.5 million, up 2.8% from $156.1 million. EPOS contributed 9.2%, while comparable sales declined 6.0% on lower technology peripherals demand and softness in Australia. Adjusted operating income was $17.0 million versus $15.9 million, reflecting pricing and cost savings.

The company called back-to-school positive in North America and Mexico and said Workspace Solutions trends were stabilizing.

Nine-month results and cash generation

Operating income was $30.3 million, compared with $26.0 million in 2025, after one-time charges of $5.9 million. Adjusted operating income increased to $47.8 million from $39.2 million on cost savings.

For the nine months, net sales rose 3.9% to $1,139.1 million from $1,095.9 million, including $56.4 million from EPOS. Comparable sales decreased 3.7%. Net income was $45.0 million, or $0.47 per share, compared with $20.0 million, or $0.21 per share, with the latest period including a $33.8 million bargain purchase gain tied to the preliminary purchase price allocation.

Free Cash Flow for the nine months was $89.0 million, including $21.3 million of tariff refunds, up from $25.8 million a year earlier. The consolidated Leverage Ratio stood at 3.6 times at September 30, 2026.

Trust deal closes and the 2026 outlook moves up

ACCO Brands closed its acquisition of Trust on October 1, 2026. The company said the deal expands its technology peripherals portfolio, which includes Kensington, PowerA and EPOS, to approach $500 million of pro forma annual sales. Management called technology peripherals its strongest Long-term Growth opportunity.

The updated full-year outlook now includes one quarter of expected sales from Trust. ACCO Brands expects reported sales to rise 4.0% to 6.0%, adjusted EPS of $0.98 to $1.02 including $0.12 from the tariff refund, free cash flow of about $100 million and a year-end leverage ratio of about 3.5 times.

A regular quarterly Dividend of $0.075 per share was declared on October 23, 2026, payable on December 9, 2026 to holders of record on November 20, 2026.