CCL Industries (CCL-B) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales rose 4.8% year-over-year to $1,934.6 million, with 2% organic growth, 1% from acquisitions, and 1.8% from currency translation.

• Operating income increased 6.1% to $322.1 million, and EBITDA grew 6% year-over-year, with a 16.6% margin.

• Net earnings were $213.1 million, down from $279.5 million in Q2 2024 due to a $78.1 million non-cash revaluation gain in the prior year; excluding this, net earnings rose from $201.4 million.

• Adjusted basic EPS increased 8% to $1.22, a record, driven by improved operating income, favorable currency, and lower finance costs.

• $312.1 million returned to shareholders year-to-date via $200 million share buybacks and $112.1 million in dividends.

Financial highlights

• Free cash flow from operations more than doubled to $226 million in Q2 2025 from $118.8 million in Q2 2024.

• Six-month sales grew 6.7% to $3.8 billion, with operating income up 9.1% to $639 million.

• Adjusted EBITDA for Q2 was $414.8 million, up from $386.7 million in Q2 2024; six-month adjusted EBITDA reached $822.8 million.

• Cash and cash equivalents at June 30, 2025, were $962.5 million, with a leverage ratio of 1.04x adjusted EBITDA.

• Dividend payout ratio at 27%.

Outlook and guidance

• CCL segment order backlog is solid for Q3, with stable year-on-year orders.

• Avery expected to improve sequentially; July results were positive, but August replenishment remains a risk.

• Checkpoint ALS volume anticipated to pick up for the busy fall/winter season as customers adapt to tariffs.

• Innovia expected to post gains next quarter, though German plant startup costs will persist.

• FX expected to be a modest tailwind or neutral.