CCL Industries Announces 2026 Third Quarter Results

Geoffrey T. Martin, President and Chief Executive Officer of CCL Industries

“In light of the many geopolitical-related challenges our business faces, I'm pleased with the results our team delivered for the third quarter. Strong 6.9% organic sales growth and solid operational execution drove a 10.7% increase in operating income(1) on solid gains at Avery and our CCL Segment with significant improvement at Innovia plus modest progress at Checkpoint. We posted record quarterly $1.36 adjusted basic earnings per Class B share(3) compared to $1.21 in the prior year period.”

Geoffrey T. Martin, President and Chief Executive Officer of CCL Industries

“The CCL Segment delivered strong 6.7% organic sales growth with solid profit gains. Home & Personal Care profitability declined modestly, largely driven by tariff-related inflation challenges at our North American aluminum container operations; label results were solid globally. Healthcare & Specialty performance improved markedly in both North America and Europe. Food & Beverage sales and profitability were especially robust in sleeves, both organically, plus a solid first full quarter from the Sleever acquisition; pressure sensitive label results were also strong. As expected, soft automotive markets and memory chip shortages for consumer electronics customers modestly reduced overall demand at CCL Design while CCL Secure results fell below an unusually strong prior year period.”

Geoffrey T. Martin, President and Chief Executive Officer of CCL Industries

“Avery posted good results on a much improved back-to-school season and solid gains in direct-to-consumer channels especially in North America. Checkpoint delivered modest gains for both MAS and ALS operations, including good volume growth in RFID. Innovia posted significant profit progress driven by strong Ecofloat and label films performance in Poland plus exceptional results in the Americas. The recently acquired Sleever films plant in France posted solid profitability. Our U.K. and German operations faced a sharp drop in European pressure sensitive films demand following rapid escalation during the second quarter in advance of inflation recovery related price increases. This destocking correction continues so far in the fourth quarter.”

Geoffrey T. Martin, President and Chief Executive Officer of CCL Industries

“Foreign currency translation had a $0.04 positive impact on adjusted earnings per Class B share for the third quarter of 2026. At today's Canadian dollar exchange rates, currency translation impact would be a modest tailwind to earnings, if sustained, for the fourth quarter of 2026.”

Geoffrey T. Martin, President and Chief Executive Officer of CCL Industries

“The Company delivered particularly strong free cash flow year-to-date September. The consolidated leverage ratio(5) was just 1.03 times Adjusted EBITDA(2), despite returning $692.1 million to shareholders in dividends and share repurchases under the Normal Course Issuer Bid in the first nine months of 2026. With $1.0 billion cash-on-hand and US$0.7 billion undrawn capacity on our syndicated revolving credit facility, we are well placed to fund global expansion initiatives. The Board of Directors declared the quarterly dividend at $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 December 16, 2026, to be paid on December 30, 2026.”