Adhesive paper market: Results at Avery Dennison and UPM-Kymmene

Research evidence excerpt

Adhesive paper market: Results at Avery Dennison and UPM-Kymmene

Adhesive paper market: Results at Avery Global Markets Research

Dennison and UPM-Kymmene 31 July 2026

EQUITY: JAPAN CHEMICALS & TEXTILES

Neutral with respect to expectations for earnings Research Analysts

at Lintec Japan chemicals & textiles

Japan small cap - chemicals &

We assume favorable conditions for raising prices for products for textiles

converters Yusho Yoshitake - NSC

yusho.yoshitake@nomura.com

Spreads appear unlikely to narrow q-q in Jul–Sep +81 3 6703 1169

Avery Dennison, a major US producer of adhesive paper and films (which we estimate to Shigeki Okazaki - NSC

have the top share of the US market), released Apr–Jun 2026 results on 30 July local shigeki.okazaki@nomura.com

time, and UPM-Kymmene Oyj (which we estimate ranks second) announced results on 23 +81 3 6703 1170

July. Profits rose q-q at both companies. Avery Dennison noted that there was

frontloading of shipments in Asia and Europe, which we think suggests no major changes

in demand or the competitive environment in the US. Although input costs are rising, our

forecasts already assume that sector companies will pass through some of the additional

costs to prices. We consider earnings at No. 3 ranked MACtac, a US subsidiary of Lintec

[7966] (Buy) that sells adhesive paper and films, to be in line with expectations. While

costs are expected to rise q-q in Jul–Sep as well, Avery Dennison said it plans to raise

selling prices by a similar amount. We think Lintec will be able to maintain spreads (selling

prices minus input costs) by following Avery Dennison's lead.

It was noted that Avery Dennison's customers in Europe and Asia (we assume these are

probably converters) are concerned about material procurement. We see this as