Key Highlights

  • Third quarter net sales slipped 0.9% to $380.3 million from $383.7 million a year earlier.
  • Diluted EPS came in at $0.12 and adjusted EPS at $0.28, each including $0.11 of net Tariff refunds.
  • Net tariff refunds boosted Operating Income by $15.1 million, adding 400 basis points to the adjusted operating margin.
  • Comparable sales dropped 6.2% as technology peripherals weakened.
  • Full-year adjusted EPS is now projected 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, released third quarter 2026 results on October 29, 2026. Net sales came to $380.3 million, a 0.9% decrease from $383.7 million in 2025. EPOS contributed 4.9% and favorable foreign exchange added 0.4%, yet a 6.2% comparable sales decline more than cancelled out both.

Net income climbed 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 rose to $0.28 from $0.21, while adjusted Net Income grew to $27.2 million from $19.5 million.

Management said net tariff refunds added $15.1 million to consolidated operating income during the quarter. That translated into $0.11 per diluted share and a 400 basis point improvement in the adjusted operating margin. Underlying operations matched its outlook.

Technology peripherals weaken in both segments

ACCO Brands Americas recorded net sales of $219.8 million, down 3.4% from $227.6 million. EPOS contributed 2.0% and foreign currency 1.0%, but comparable sales decreased 6.4%. Weaker technology peripherals Demand was partly offset by Latin America growth. Adjusted operating income increased to $38.1 million from $32.7 million, supported by the tariff refunds and held back somewhat by lower mix and volume.

ACCO Brands International posted net sales of $160.5 million, up 2.8% from $156.1 million. EPOS added 9.2%, while comparable sales fell 6.0% on softer technology peripherals demand and weakness in Australia. Adjusted operating income was $17.0 million compared with $15.9 million, reflecting pricing and cost savings.

Management described back-to-school as positive in North America and Mexico and said Workspace Solutions trends were stabilizing.

Nine-month results and cash generation

Operating income reached $30.3 million, up from $26.0 million in 2025, after one-time charges of $5.9 million. Adjusted operating income rose to $47.8 million from $39.2 million, driven by cost savings.

Over the nine months, net sales grew 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, versus $20.0 million, or $0.21 per share. The latest period included a $33.8 million bargain purchase gain linked to the preliminary purchase price allocation.

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

Trust deal closes and the 2026 outlook moves higher

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

The revised full-year outlook includes one quarter of expected sales from Trust. ACCO Brands now 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.