Specialty packaging firm CCL Industries Q2 sales beat estimates

CCL Industries

13/08/2025 22:39

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
C$1.93 bln
C$1.91 bln (9 Analysts)
Q2 Net Income
C$213.10 mln
Q2 Gross Profit
C$588.30 mln
Q2 Pretax Profit
C$284.50 mln


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

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)