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CCL Industries (CCL-B) investor relations material

CCL Industries Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary14 Aug, 2025

Executive summary

  • Q2 2025 sales rose to $1.93B, up 4.8% year-over-year, with 2% organic growth, 1% from acquisitions, and 1.8% from FX tailwinds.

  • Operating income increased 5–6% to $322.1M, and adjusted EBITDA grew 6% to $414.8M.

  • Net earnings were $213.1M, down from $279.5M last year due to a prior-year $78.1M non-cash gain; adjusted net earnings rose to $201.4M.

  • Free cash flow from operations more than doubled to $226M in Q2 2025.

  • $312.1M returned to shareholders YTD via $200M in share repurchases and $112.1M in dividends, with a 27% payout ratio.

Financial highlights

  • Six-month sales reached $3.82B, up 4–6.7% year-over-year; operating income up 7–9.1% to $639M.

  • Adjusted basic EPS for Q2 2025 was $1.22, up 8%; six-month adjusted EPS rose to $2.40.

  • Effective tax rate increased to 25.3% from 18.8%, reflecting the absence of the prior year’s non-taxable gain.

  • Leverage ratio at 1.04x adjusted EBITDA; cash and cash equivalents at $963M.

  • Free cash flow for the first half was $265.1M; $800M undrawn credit facility available.

Outlook and guidance

  • CCL segment backlog remains solid and stable for Q3.

  • Avery expected to improve sequentially, but back-to-school replenishment is a risk.

  • Checkpoint ALS volume anticipated to pick up for the fall/winter season.

  • Innovia expected to post gains, but German plant costs will persist through year-end.

  • FX expected to be a modest tailwind or neutral in the next quarter.

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Frequently asked questions

Labels and Packaging

CCL Industries is an American-Canadian company focused on the production of specialty labels and packaging. The company produces labeling and packaging materials for a variety of sectors, including healthcare, home & personal care, food & beverage, and consumer products. Its product range encompasses pressure-sensitive labels, shrink sleeves, aluminum containers, and more. The company has dual headquarters in Toronto, Canada, and Framingham, Massachusetts, and its shares are listed on the TSX.

Connecticut Chemicals Limited

The company was founded in 1951 as Connecticut Chemicals Limited, eventually changing its name to CCL, and it focused on custom manufacturing for the Canadian consumer products industry. However, the company expanded its scope to include labels and other packaging solutions. This expansion was not just in terms of product lines but also geographically, as it began operations in the United States and the United Kingdom, eventually going public on the Toronto Stock Exchange in 1980. In the 2000s, CCL Industries started shifting its focus from custom manufacturing towards labels and packaging through divestiture of various assets.

The Products

CCL’s product portfolio includes pressure-sensitive labels, which are designed for various applications in a range of sectors. It also produces shrink sleeves, aluminum, and film materials used for both decorative and functional packaging. Additionally, the company produces extruded and labeled plastic tubes, aluminum aerosols, and specialty bottles. Its portfolio also encompasses folded instructional leaflets, precision decorated and die-cut components as well as electronic displays. Some other companies operating in the packaging sector are Avery Dennison, Ball Corporation, and WestRock Company.

The Customers

Its clientele primarily includes companies in the consumer products industry, particularly those in the food and beverage, home and personal care, healthcare, and pharmaceutical sectors. Additionally, CCL caters to businesses in the automotive and electronics sectors, providing high-quality labeling and packaging solutions. Their products are also in demand among companies requiring innovative and secure label solutions for promotional, security, and RFID applications.

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