Highlights

  • Third-quarter 2026 net sales slipped 0.9% to US$380.3 million, with comparable sales down 6.2% year on year.
  • Diluted earnings per share rose to US$0.12 from US$0.04, helped by US$15.1 million in net Tariff refunds.
  • ACCO completed its Acquisition of Trust, a Netherlands-based computer and gaming accessories brand, on 1 October 2026.
  • The company now expects 2026 adjusted earnings per share of US$0.98 to US$1.02 and free Cash Flow near US$100 million.

ACCO Brands Corporation (NYSE:ACCO) reported higher third-quarter earnings and much stronger cash generation on 29 October 2026, while adding a European gaming and computer accessories Brand to the technology peripherals Business it sees as its main Long-term Growth opportunity.

Net sales for Q3 2026 were US$380.3 million, down 0.9% from US$383.7 million. The EPOS acquisition added 4.9% and currency 0.4%, leaving comparable sales 6.2% lower.

Tariff Refunds and Cost Savings Widen Margins

Gross Margin improved to 35.7% from 33.0%. Operating Income rose to US$30.3 million from US$26.0 million, and adjusted operating income climbed to US$47.8 million, a 12.6% margin, from US$39.2 million. The quarter included US$15.1 million of net tariff refunds, which added 400 basis points to the adjusted Operating Margin and US$0.11 to earnings per share.

Net income reached US$11.5 million, or US$0.12 per diluted share, against US$4.0 million, or US$0.04, a year earlier. Adjusted earnings per share were US$0.28 versus US$0.21, and adjusted EBITDA grew 21.0% to US$55.4 million.

Chief Executive Tom Tedford pointed to back-to-school Demand in North America and Mexico and stabilizing Workspace Solutions trends, while technology peripherals faced industry-wide softness. Americas sales fell 3.4% to US$219.8 million, and International sales rose 2.8% to US$160.5 million.

Stronger Cash Flow Lowers Net Debt

Free cash flow reached US$127.6 million in the quarter, up from US$66.0 million, and US$89.0 million for the first nine months, including US$21.3 million of tariff refunds. Net Debt stood at US$706.5 million on 30 September 2026, down from US$795.3 million a year earlier, with a consolidated Leverage Ratio of 3.6 times.

The board declared a quarterly Dividend of US$0.075 per share on 23 October 2026. No shares have been repurchased so far in 2026.

Trust Joins Kensington, PowerA and EPOS

ACCO closed its purchase of Trust, acquired from Investment firm Egeria, on 1 October 2026, funding it with revolving Credit Facility borrowings. Founded in 1983, Trust sells keyboards, mice, headsets, webcams and gaming accessories across Europe and Latin America through an asset-light, outsourced Manufacturing model, generating about US$100 million in annual revenue.

Management expects US$5 million to US$8 million of cost synergies within 18 months of closing and modest accretion to adjusted earnings in the first year. The combined technology peripherals portfolio is expected to approach US$500 million in pro forma annual sales.

Updated Outlook for Full-Year 2026

Now including one quarter of Trust, ACCO expects 2026 reported net sales to grow 4.0% to 6.0%, adjusted earnings per share of US$0.98 to US$1.02, including US$0.12 from tariff refunds, free cash flow of about US$100 million and a year-end leverage ratio near 3.5 times. Integration and synergy capture are stated priorities.