CCL Industries (CCL-B) Q4 2025 earnings summary

Executive summary

• Sales for 2025 reached $7.66 billion, up 5.8% year-over-year, with Q4 sales rising 3.5% to nearly $1.88 billion; organic growth was 0.6% in Q4, with positive currency and acquisition impacts.

• Operating income for 2025 increased 8.7% to $1,241.5 million, with Q4 operating income at $280.7 million, up 2% excluding currency effects.

• Adjusted basic EPS for 2025 was $4.64, up 7.4%, and $1.03 in Q4, up 1% year-over-year.

• Net earnings declined in 2025 due to higher tax expense and absence of a prior-year non-cash gain.

• Returned $523.7 million to shareholders through dividends and share repurchases, a 29% increase year-over-year.

Financial highlights

• Adjusted EBITDA for 2025 was $1,622.5 million, up from $1,497.1 million in 2024; Q4 EBITDA was $383.6 million, up 3%.

• Free cash flow from operations reached a record $891.3 million, up 47% year-over-year.

• Net debt at year-end 2025 was $1.26 billion, with a leverage ratio of 0.78x Adjusted EBITDA.

• Effective tax rate increased to 28.5% in Q4 and 25.9% for the year, mainly due to higher withholding taxes.

• Nearly $1 billion in cash on hand and $1 billion undrawn credit capacity at year-end.

Outlook and guidance

• Expecting low to mid-single-digit organic growth in 2026, with Q1 likely more challenging due to weather-related freight disruptions.

• RFID business at Checkpoint anticipated to return to double-digit growth in 2026, driven by normalization in apparel inventory and new applications.

• Tax rate for 2026 projected around 25%, with less volatility from withholding taxes.

• CapEx for 2026 estimated at $470 million, focused on greenfield projects and capacity expansion.

• No margin expansion planned for 2026 in the CCL segment; margins expected to remain within historical ranges.