Specialty packaging firm CCL Industries Q2 sales beat estimates

Overview

• CCL Industries Q2 sales rise 4.8% to C$1.93 bln, beating estimates

• Adjusted EPS up 8% to C$1.22, basic EPS down 22.4%

• The Toronto-headquartered company returned C$155.8 mln to shareholders in dividends and buybacks

Outlook

• Company expects modest currency translation tailwind for Q3 2025 earnings

• Company well positioned for global expansion with C$962.5 mln cash-on-hand

• CCL expects continued profitability improvements in CCL Design and Innovia segments

• Company anticipates challenging conditions for Avery due to US tariffs

Result Drivers

• SALES GROWTH - Sales increased 4.8% driven by 2.0% organic growth, 1.0% acquisition growth, and 1.8% positive currency translation

• SEGMENT PERFORMANCE - Strong results in CCL, Checkpoint, and Innovia segments, with CCL benefiting from aluminum container demand and electronics market gains

• TARIFF IMPACT - Avery's sales declined due to unplanned tariff costs and lower back-to-school shipments, impacting profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

• Wall Street's median 12-month price target for CCL Industries Inc is C$91.50, about 12.4% above its August 13 closing price of C$80.13

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nACSwP8Bqa