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 tailwinds.

• Net earnings for Q3 2025 were $210.8 million, up from $191.7 million in Q3 2024; basic and adjusted EPS were $1.21, up 11% from $1.09 in Q3 2024.

• Free cash flow from operations increased to $333.4 million in Q3 2025 from $233 million in Q3 2024.

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

• Operating income reached $321.8 million, up 11.4% year-over-year, with a margin of 16.4%.

Financial highlights

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

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

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

• Dividend payout ratio at 27%.

• Basic and adjusted EPS for the nine months was $3.61, up from $3.30 (excluding prior year revaluation gain).

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.

• Checkpoint faces ongoing tariff risks, especially in MAS and ALS product lines.

• Innovia's German plant will continue to incur start-up costs in Q4; label materials markets remain slow.

• Modest currency tailwind expected for Q4 2025 if current exchange rates persist.