ACCO: 3 Key Takeaways for Long-Term Investors

ACCO reported strong earnings on its third-quarter 2026 call, highlighting its shift toward tech accessories. This strategic pivot is driven by acquisitions like Trust and EPOS, which aim to bolster higher-margin computer peripherals and offset declines in traditional office products. The company is targeting $500 million in pro forma revenue, comprising about 30% of future sales, from these new acquisitions.

Management emphasizes that traditional paper and school product categories still make up roughly 70% of revenue, offering a stable cash flow base to pay down debt and fund business transitions. Tom Tedford, President and CEO, noted that these established categories are stabilizing and generating meaningful cash flow, providing a solid foundation for the company.

ACCO's cost reduction strategy is also advancing, with the company achieving over $10 million in savings in the quarter, bringing year-to-date savings to over $30 million. Deb O'Connor, Executive Vice President and CFO, highlighted that these multi-year efforts streamline operating platforms and cut overhead, protecting earnings during soft demand periods.

Despite cautious consumer spending affecting demand for tech accessories, ACCO is optimistic about a recovery fueled by normalized hardware costs. The company is expanding its global channels, both in enterprise and retail markets, to capture future demand. Tom Tedford stated that with efficiency gains and a stronger brand position, ACCO is well-positioned to capture upside as markets improve.

Deb O'Connor added that the company's established brands, broader global channels, and more efficient operating platform position ACCO to capitalize on market recovery through new product innovation and expanded distribution.