CCL Industries Announces Record 2025 Results Driven by Strong Cash Flow, Margin Expansion and Dividend Growth

Toronto, February 25, 2026 – CCL Industries Inc. reported solid fourth quarter performance and record annual results for 2025, reflecting disciplined execution, resilient operating margins and exceptional free cash flow generation despite softer consumer end markets.

Fourth Quarter Overview

Sales for the fourth quarter of 2025 increased 3.5% to $1.88 billion compared to $1.81 billion in the prior year period. Growth was driven by a 0.6% organic increase, 0.2% acquisition contribution and a 2.7% favorable impact from foreign currency translation.

Operating income improved 4.8% to $280.7 million, with operating margin expanding 20 basis points to 15.0%. Adjusted basic earnings per Class B share were $1.03, up 1.0% year over year, while basic earnings per share were $0.99. Foreign currency translation contributed $0.04 per share in the quarter.

Net earnings for the quarter were $171.1 million compared to $179.8 million last year, primarily reflecting a higher effective tax rate of 28.5% versus 22.9% in the prior-year quarter. The increased tax rate reduced adjusted earnings per share by approximately $0.08.

The Company recorded $7.4 million in restructuring and other charges during the quarter, largely related to severance costs associated with operational restructuring initiatives at Avery.

Segment Performance

The CCL segment posted 6.8% sales growth in the fourth quarter, supported by strong demand in Asia Pacific and Europe. CCL Design delivered exceptional profitability in electronics markets, while automotive showed continued progress. Performance in Food & Beverage was mixed, with strength in closures offset by softer end markets and start-up costs in certain operations.

Avery reported solid results, with sales increasing 7.6% and operating income rising 22.6%. Growth was driven by direct-to-consumer channels in North America and improving international markets.

Checkpoint experienced a 6.2% sales decline, reflecting lower volumes, but delivered improved profitability through cost savings initiatives and RFID growth in apparel markets.

Innovia sales declined 7.4%, impacted by lower volumes in North America compared to a strong prior-year period. Legacy operations in Europe and Australia performed well, and the segment incurred approximately $4.0 million of start-up costs at its new plant in Germany during the quarter.

Record Full Year 2025 Results

For the year ended December 31, 2025, CCL Industries delivered record financial performance.

Annual sales increased 5.8% to $7.66 billion, supported by 2.5% organic growth, 0.7% acquisition growth and a 2.6% favorable foreign exchange impact.

Operating income rose 8.7% to $1.24 billion, with operating margin expanding 40 basis points to 16.2%. Adjusted net earnings were $810.4 million.

Adjusted basic earnings per Class B share reached a record $4.64, up 7.4% compared to 2024. Basic earnings per share were $4.59.

Exceptional Free Cash Flow and Balance Sheet Strength

The Company generated record free cash flow from operations of $891.3 million in 2025, representing approximately 110% of net earnings. Cash provided by operating activities totaled $1.30 billion.

Capital expenditures amounted to $441.2 million in 2025, supporting greenfield projects, capacity expansions and technology investments across the global platform.

Despite returning significant capital to shareholders and funding capital investments, CCL ended the year with a strong financial position. Cash on hand totaled $998.2 million, and the Company maintained approximately US$1.0 billion of undrawn capacity under its syndicated revolving credit facility.

Net debt stood at $1.26 billion, and the leverage ratio remained conservative at 0.78 times Adjusted EBITDA.

Shareholder Returns and Dividend Increase

During 2025, CCL returned $523.7 million to shareholders, including $223.7 million in dividends and $300.0 million through the repurchase of 3.9 million Class B shares.

Reflecting confidence in the Company’s earnings strength, balance sheet capacity and expected free cash flow generation in 2026, the Board of Directors approved a 12.5% increase in the quarterly dividend to $0.36 per Class B share and $0.3575 per Class A share, payable March 31, 2026.

Capital Investment Outlook for 2026

Total capital expenditures for 2026 are budgeted at $470 million. Spending will focus on completing greenfield initiatives and expanding technology and production capacity across CCL’s global operations.

Management indicated that while the external environment remains uncertain, orders have been steady entering the first quarter of 2026, and current exchange rates are expected to provide a modest foreign exchange tailwind.

Strategic Positioning

CCL Industries continues to demonstrate operational resilience, diversified end-market exposure and disciplined capital allocation. With strong free cash flow, low leverage and substantial liquidity, the Company remains well positioned to pursue organic growth initiatives, strategic acquisitions and continued shareholder returns in 2026 and beyond.