from CCL Industries Inc. (CVE:CCL.B)
CCL Industries Announces 2025 Fourth Quarter and Record Annual Results
Fourth Quarter Highlights
Per Class B share(3): $1.03 adjusted basic earnings up 1.0%; $0.99 basic earnings down 2.0%; currency translation positive $0.04 per share
Sales increased 3.5% on 0.6% organic growth, 0.2% acquisition growth and 2.7% positive currency translation
CCL Segment and Avery posted organic sales growth of 3.6% and 3.8%, respectively, partly offset by organic declines for Checkpoint and Innovia of 8.1% and 9.1%, respectively
Operating income(1) improved 4.8%, with a 15.0% operating margin(1) up 20 bps
2025 Highlights
Per Class B share(3): $4.64 adjusted basic earnings up 7.4%; $4.59 basic earnings down 3.0%; $0.44 revaluation gain included in 2024 basic earnings; currency translation positive $0.10 per share on an adjusted basis
Sales increased 5.8% on 2.5% organic growth, 0.7% acquisition growth and 2.6% positive currency translation
Operating income(1) improved 8.7%, with a 16.2% operating margin(1) up 40 bps
Returned $523.7 million to shareholders: $223.7 million in dividends and repurchased 3.9 million Class B shares for $300.0 million.
TORONTO, ON / ACCESS Newswire / February 25, 2026 / CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B) ("the Company"), a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, today reported fourth quarter and annual financial results for 2025.
Sales for the fourth quarter of 2025 increased 3.5% to $1,876.2 million compared to $1,812.5 million for the fourth quarter of 2024, with an organic growth rate of 0.6%, acquisition-related growth of 0.2% and a 2.7% positive impact from foreign currency translation.
Operating income(1) for the fourth quarter of 2025 improved 4.8% to $280.7 million compared to $267.9 million for the comparable quarter of 2024. Foreign currency translation had a 3.0% positive impact on operating income(1) for the comparable quarter.
The Company recorded expenses for restructuring and other items of $7.4 million, primarily due to severance charges for operational restructuring at Avery.
Tax expense for the fourth quarter of 2025 was $67.8 million compared to $52.7 million in the prior year period. The effective tax rate for the 2025 fourth quarter was 28.5% resulting in an annual effective tax rate of 25.9% compared to 22.9% for the 2024 fourth quarter and 22.4% for the year 2024. The increase in the fourth quarter tax rate had a negative impact of $0.08 on adjusted earnings per Class B share(3). This change in the 2025 effective tax rates can be attributed to an increase in dividend withholding taxes in 2025, particularly in the fourth quarter of this year and the non-taxable revaluation gain recorded in the 2024 second quarter lowering the 2024 annualized effective tax rate.
For the fourth quarter of 2025, net earnings were $171.1 million compared to $179.8 million for the 2024 fourth quarter. Basic and adjusted basic earnings per Class B share(3) were $0.99 and $1.03 respectively, compared to basic and adjusted basic earnings per Class B share(3) of $1.01 and $1.02, respectively, in the prior year fourth quarter. Foreign currency translation had a positive impact of $0.04 on adjusted basic earnings per Class B share(3).
For 2025, sales, operating income(1) and adjusted net earnings(6) improved 5.8%, 8.7% and 5.3% to $7,663.8 million, $1,241.5 million and $810.4 million, respectively, compared to December 31, 2024. The year ending December 31, 2025, included results from three acquisitions completed since January 1, 2024, delivering acquisition-related sales growth for the year of 0.7%, coupled with organic sales growth of 2.5% and 2.6% positive impact from foreign currency translation. For the year ended December 31, 2025, basic and adjusted basic earnings per Class B share(3) were $4.59 and $4.64, respectively, compared to basic and adjusted basic earnings per Class B share(3) of $4.73 and $4.32, respectively, in the prior year. Foreign currency translation had a positive impact of $0.10 on adjusted basic earnings per Class B share(3).
Geoffrey T. Martin, President and Chief Executive Officer, commented, "Fourth quarter results were solid, given soft consumer end markets especially when compared to a very strong prior year period; $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% compared to 2024."
Mr. Martin stated, "The CCL Segment posted 3.6% fourth quarter organic sales growth. Home & Personal Care delivered solid results in labels globally and tubes in the United States, offsetting lower profitability for aluminum aerosols and bottles. CCL Design recorded exceptional profitability in electronics markets driven by double digit organic growth over very strong gains in the prior year period, alongside solid progress in automotive. Healthcare & Specialty performance improved as strong results internationally more than compensated for a decline in North America. Food & Beverage performance was mixed with strong profitability improvement for Closures offset by slow end markets and new plant start-up costs in other product lines. CCL Secure profitability declined compared to a good prior year period."
Mr. Martin continued, "Avery posted solid organic sales growth and strong profitability improvement driven by strength in direct-to-consumer channels in North America plus good results from international markets and horticulture. Checkpoint delivered improved profitability driven by cost savings and RFID gains in apparel markets despite lower sales, while MAS results were strong in Europe and Asia but offset by weakness in North America, in part due to tariffs. Innovia results for legacy operations in Europe and Australia were solid including good progress for EcoFloat and in mould label films, more than offset by lower volumes and reduced profitability in North America compared to a very strong prior year period. Start-up cost at the new plant in Germany was approximately $4.0 million for the quarter."
Mr. Martin added, "Foreign currency translation had a positive $0.04 impact on earnings per Class B share for the fourth quarter of 2025 and a modest tailwind is expected to continue for the first quarter of 2026 at current exchange rates. Orders are steady so far but the external environment remains full of uncertainties in which we must find opportunity to grow."
Mr. Martin concluded, "The Company delivered outstanding $891.3(4) million free cash flow from operations in 2025, a record by a significant margin in absolute terms and approximately 110% of net earnings. Despite returning $223.7 million in annualized dividends and $300.0 million of stock buybacks to shareholders, the Company's consolidated leverage ratio(5) ended 2025 at 0.78 times Adjusted EBITDA(2) after financing $441.2 million of new capital spending. The balance sheet at year end included almost $1 billion cash-on-hand and with approximately US$1.0 billion undrawn capacity on our syndicated revolving credit the Company is well placed to fund its global ambitions. Total capital expenditures for 2026 are budgeted at $470 million, for the completion of greenfield initiatives, as well as technology and capacity additions across our global footprint. Given the strong 2025 earnings, balance sheet capacity and anticipated free cash flow in 2026, the Board of Directors declared a 12.5% increase in the quarterly dividend to $0.36 per Class B non-voting share and $0.3575 per Class A voting share, payable to shareholders of record at the close of business on March 17, 2026, to be paid on March 31, 2026."
2025 Fourth Quarter Highlights
CCL Segment
Sales increased 6.8% to $1,192.1 million on 3.6% organic growth and 3.2% positive impact from currency translation
Regional organic sales growth: double digit in Asia Pacific and Middle East, mid-single digit in Europe, low single digit in North America and mid-single digit decline in Latin America
Operating income(1) $173.2 million, up 4.3%, 14.5% operating margin(1) down 40 bps
Label joint ventures added $0.01 earnings per Class B share
Avery
Sales increased 7.6% to $258.0 million on 3.8% organic growth, 1.8% contribution from acquisitions and a 2.0% positive impact from currency translation
Operating income(1) $54.7 million, up 22.6%, 21.2% operating margin(1), up 260 bps
Checkpoint
Sales decreased 6.2% to $260.2 million on 8.1% organic decline and 1.9% positive impact from foreign currency translation
Operating income(1) $42.9 million, up 5.9%, 16.5% operating margin(1), up 190 bps
Innovia
Sales decreased 7.4% to $165.9 million with 9.1% organic decline and 1.7% positive impact from foreign currency translation
Operating income(1) $9.9 million, down 40.7%, 6.0% operating margin(1), down 330 bps
The Company will host a live webcast at 7:30 a.m. ET on February 26, 2026, to discuss these results.
The quarterly results review presentation, including outlook commentary, are posted on the Company's website at https://www.cclind.com/investors/investor-presentations/
To access the webcast or webcast replay, please use the following webcast link:
https://www.webcaster5.com/Webcast/Page/2807/53514
To access the audio/listen only live webcast, please use the following numbers:
Toll Free: 1-877-545-0320
International: 1-973-528-0002
Conference Entry Code (CEC): 948821
Replay for the webcast will be available Thursday, February 26, 2026, until Sunday, March 29, 2026.
For more information on CCL, visit our website - www.cclind.com or contact:
Sean Washchuk
Senior Vice President and Chief Financial Officer
416-756-8526
Forward-looking Statements
This press release contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as "forward-looking statements") that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the Company's planned capital expenditures of $470.0 million for 2026; the adequacy of the Company's financial liquidity including the availability of sufficient cash from operations and available credit capacity to fund the Company's future financial obligations for the next few years; and the Company's expectations regarding general business and economic conditions.
Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological changes; changes in government regulations; risks associated with operating and product hazards; and the Company's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: consumer spending; customer demand for the Company's products; market growth in specific sectors and entrance into new markets; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum and resin costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; and economic conditions. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the 2025 and 2024 Annual Report, Management's Discussion and Analysis, particularly under Section 4: "Risks and Uncertainties." CCL Industries Inc.'s annual and quarterly reports can be found online at www.cclind.com and www.sedarplus.ca or are available upon request.
Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on the Company's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depend on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.
The financial information presented herein has been prepared on the basis of IFRS for financial statements and is expressed in Canadian dollars unless otherwise stated.
Financial Information
CCL Industries Inc.
Consolidated statements of financial position
Unaudited
In millions of Canadian dollars
As at December 31, 2025 | As at December 31, 2024 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 998.2 | $ | 828.7 | ||||
Trade and other receivables | 1,293.4 | 1,251.4 | ||||||
Inventories | 805.0 | 819.9 | ||||||
Prepaid expenses | 61.0 | 62.1 | ||||||
Assets held for sale | - | 23.5 | ||||||
Income taxes recoverable | 67.6 | 51.8 | ||||||
Derivative instruments | 8.7 | 0.1 | ||||||
Total current assets | 3,233.9 | 3,037.5 | ||||||
Non-current assets | ||||||||
Property, plant and equipment | 2,844.3 | 2,698.1 | ||||||
Right-of-use assets | 206.3 | 215.4 | ||||||
Goodwill | 2,591.4 | 2,554.1 | ||||||
Intangible assets | 1,045.7 | 1,109.7 | ||||||
Deferred tax assets | 78.9 | 94.7 | ||||||
Equity-accounted investments | 72.8 | 60.9 | ||||||
Other assets | 28.2 | 31.7 | ||||||
Derivative instruments | - | 57.0 | ||||||
Total non-current assets | 6,867.6 | 6,821.6 | ||||||
Total assets | $ | 10,101.5 | $ | 9,859.1 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Trade and other payables | $ | 1,467.2 | $ | 1,416.9 | ||||
Current portion of long-term debt | 687.0 | 4.2 | ||||||
Lease liabilities | 49.6 | 47.2 | ||||||
Income taxes payable | 34.7 | 42.2 | ||||||
Derivative instruments | 38.1 | - | ||||||
Total current liabilities | 2,276.6 | 1,510.5 | ||||||
Non-current liabilities | ||||||||
Long-term debt | 1,370.8 | 2,232.5 | ||||||
Lease liabilities | 152.8 | 163.7 | ||||||
Deferred tax liabilities | 329.3 | 347.3 | ||||||
Employee benefits | 293.0 | 307.7 | ||||||
Provisions and other long-term liabilities | 16.1 | 16.7 | ||||||
Derivative instruments | 22.5 | - | ||||||
Total non-current liabilities | 2,184.5 | 3,067.9 | ||||||
Total liabilities | 4,461.1 | 4,578.4 | ||||||
Equity | ||||||||
Share capital | 613.5 | 607.8 | ||||||
Contributed surplus | 121.7 | 101.1 | ||||||
Retained earnings | 4,795.0 | 4,492.3 | ||||||
Accumulated other comprehensive income | 110.2 | 79.5 | ||||||
Total equity attributable to shareholders of the Company | 5,640.4 | 5,280.7 | ||||||
Total liabilities and equity | $ | 10,101.5 | $ | 9,859.1 | ||||
CCL Industries Inc.
Consolidated income statements
Unaudited
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||
In millions of Canadian dollars, except per share information | 2025 | 2024 | 2025 | 2024 | ||||||||||||
Sales | $ | 1,876.2 | $ | 1,812.5 | $ | 7,663.8 | $ | 7,245.0 | ||||||||
Cost of sales | 1,335.4 | 1,292.8 | 5,367.6 | 5,107.3 | ||||||||||||
Gross profit | 540.8 | 519.7 | 2,296.2 | |||||||||||||