Canada's CCL Industries Q4 adjusted profit misses estimates

Overview

• Canada's specialty label maker's Q4 sales rose 3.5%, meeting analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company returned $523.7 mln to shareholders via dividends and share buybacks in 2025

Outlook

• CCL Industries plans $470 mln in capital expenditures for 2026

• Company expects modest foreign currency tailwind in Q1 2026

Result Drivers

• CURRENCY TRANSLATION - Positive currency translation contributed 2.7% to sales growth and 3.0% to operating income

• SEGMENT PERFORMANCE - CCL Segment and Avery posted organic sales growth of 3.6% and 3.8%, respectively, partly offset by declines in Checkpoint and Innovia

• HIGHER TAXES - Increased tax expenses negatively impacted adjusted EPS by $0.08

Company press release: ID:nACSRm9gna

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "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$99.00, about 11.2% above its February 25 closing price of C$89.01

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

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