CCL Industries (CCL-B) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales rose 6.3% year-over-year to $1,965.9 million, with 3.7% organic growth and 2.5% from FX; nine-month sales reached $5.8 billion.

• Operating income increased 11.4% to $321.8 million in Q3, with a 16.4% margin; net earnings were $210.8 million, up from $191.7 million in Q3 2024.

• Free cash flow from operations was $333.4 million in Q3, up from $233 million in Q3 2024; nine-month free cash flow was $598.5 million.

• $467.9 million was returned to shareholders year-to-date through dividends and share repurchases.

• Basic and adjusted basic EPS for Q3 were $1.21, up 11% from Q3 2024.

Financial highlights

• Adjusted EBITDA for Q3 was $416.1 million, up from $380.7 million in Q3 2024.

• Effective tax rate rose to 25.5% from 24.5% due to higher income in higher-tax jurisdictions.

• Net finance expense decreased to $18.2 million from $19.3 million year-over-year.

• Dividend payout ratio at 27%.

• For the trailing 12 months, free cash flow from operations was $860.2 million, up from $618.6 million.

Outlook and guidance

• CCL segment orders remain stable; CPG customer volumes are soft, but CCL Design is strong.

• Avery expects a seasonally slow quarter, except for Horticulture.

• Innovia's German plant startup costs expected to persist for another quarter or two, with improvement in the second half of 2026.

• CapEx for 2026 expected to be around $450 million, pending budget finalization.

• Modest currency tailwind expected for Q4 if current exchange rates persist.