CCL Industries Announces 2025 Fourth Quarter and Record Annual Results

Executive Summary

• CCL Industries reported Q4 2025 sales of $1.876 billion (+3.5% YoY) and full‑year 2025 sales of $7.664 billion (+5.8% YoY).
• Adjusted basic earnings per Class B share rose to $1.03 in Q4 (up 1.0%) and $4.64 for the year (up 7.4%).
• The company returned $523.7 million to shareholders ($223.7 M dividends, $300 M share repurchases) and announced a 12.5% dividend increase to $0.36 per Class B share (payable March 31 2026).

Key Details

• Q4 2025 Financial Highlights
• Sales: $1,876.2 M (↑3.5% YoY); organic growth 0.6%, acquisition growth 0.2%, FX +2.7%.
• Operating income: $280.7 M (↑4.8% YoY); operating margin 15.0% (+20 bps).
• Adjusted basic EPS: $1.03 (↑1.0%); basic EPS: $0.99 (↓2.0%).
• Net earnings: $171.1 M (down from $179.8 M YoY).

• Tax expense rose to $67.8 M (effective rate 28.5%).

• FY 2025 Financial Highlights

• Sales: $7,663.8 M (↑5.8% YoY); organic growth 2.5%, acquisition growth 0.7%, FX +2.6%.
• Operating income: $1,241.5 M (↑8.7% YoY); operating margin 16.2% (+40 bps).
• Adjusted basic EPS: $4.64 (↑7.4%); basic EPS: $4.59 (↓3.0%).

• Net earnings: $802.4 M (down from $843.1 M YoY).

• Segment Performance

• CCL Segment: Sales $1,192.1 M (+6.8%); operating income $173.2 M (+4.3%).
• Avery: Sales $258.0 M (+7.6%); operating income $54.7 M (+22.6%).
• Checkpoint: Sales $260.2 M (‑6.2%); operating income $42.9 M (+5.9%).

• Innovia: Sales $165.9 M (‑7.4%); operating income $9.9 M (‑40.7%).

• Cash & Capital Structure

• Free cash flow from operations: $891.3 M (record level).
• Total cash & equivalents year‑end: $998.2 M.
• Debt at year‑end: $2,260.2 M; net debt $1,262.0 M.

• Leverage ratio (net debt/Adjusted EBITDA): 0.78×.

• Capital Expenditures & Outlook

• FY 2025 capex: $441.2 M; FY 2026 budgeted capex: $470.0 M for greenfield projects, technology and capacity upgrades.

• Management expects continued FX tailwinds into Q1 2026 and steady order flow despite market uncertainties.

• Shareholder Returns

• Dividends paid FY 2025: $223.7 M.
• Share repurchases FY 2025: $300.0 M (3.9 M Class B shares).

• Board declared quarterly dividend increase to $0.36 per Class B share (payable March 31 2026).

• Webcast – Live webcast scheduled for Feb 26 2026, 7:30 a.m. ET; replay available through Mar 29 2026.

Notable Quotes

“Fourth quarter results were solid… $1.03 adjusted earnings per Class B share moderated by a notably higher tax rate, partly offset by a foreign currency translation tailwind, contributed to a record $4.64 for 2025, up 7.4%.” – Geoffrey T. Martin, President & CEO

“The Company delivered outstanding $891.3 M free cash flow from operations in 2025… despite returning $523.7 M to shareholders, the balance sheet remains strong with almost $1 B cash‑on‑hand and ample credit capacity.” – Geoffrey T. Martin, President & CEO