ACCO Brands Reports Q2 2025 Financial Results with 9.9% Sales Decline

ACCO Brands Corporation reported its financial results for the second quarter of 2025, revealing a net sales decline of $394.8 million, a decrease of 9.9% compared to $438.3 million in the same period last year. For the first half of 2025, net sales totaled $712.2 million, down 10.7% from $797.2 million in the prior year. The company attributed the decline to lower consumer and office spending, disruptions in customer purchasing due to tariff uncertainties, and a general softening in global demand for its products. Despite the sales drop, ACCO Brands achieved an operating income of $33.0 million for the quarter, a significant recovery from an operating loss of $111.2 million in the prior year, which was primarily impacted by a non-cash goodwill impairment charge.

The company’s gross profit for the second quarter was $129.7 million, down 15.0% from $152.6 million a year earlier, reflecting a gross margin of 32.9%. The decrease in gross profit was attributed to lower sales volume and unfavorable fixed-cost absorption, partially offset by cost reduction initiatives. Selling, general, and administrative expenses decreased by 6.1% to $82.6 million, aided by global cost reduction efforts and lower incentive compensation expenses. The company also reported a net income of $29.2 million for the quarter, compared to a net loss of $125.2 million in the same quarter of 2024.

In terms of strategic developments, ACCO Brands completed the acquisition of Buro Seating Limited Partnership on February 28, 2025, for approximately $10.1 million. This acquisition is expected to enhance the company's product offerings in the ergonomic seating market in Australia and New Zealand. The company continues to focus on restructuring efforts aimed at achieving annualized pre-tax cost savings of approximately $100 million by the end of 2026, with over $40 million in savings realized to date.

Operationally, ACCO Brands reported a total employee headcount of 90,132,531 shares of common stock outstanding as of July 24, 2025. The company’s cash and cash equivalents increased to $133.3 million as of June 30, 2025, compared to $74.1 million at the end of 2024. The company’s total assets rose to $2.38 billion, up from $2.23 billion at the end of the previous fiscal year, driven by increases in inventories and goodwill.

Looking ahead, ACCO Brands anticipates continued challenges due to macroeconomic conditions and evolving trade policies, particularly regarding tariffs. The company has implemented several measures to mitigate these impacts, including price increases and sourcing adjustments. Management remains cautious about the outlook for the remainder of 2025, emphasizing the need for ongoing adaptation to market conditions and consumer demand.