CCL Industries (CCL-B) investor relations material

Executive summary

• Sales grew 2.8% year-over-year to $1,939.0 million, driven by 1.9% organic growth, 0.3% from acquisitions, and 0.6% from FX; adjusted basic EPS increased 1.7% to $1.20; net earnings were $204.9 million, slightly down from last year.

• Free cash flow from operations for the last twelve months reached $889.5 million, with quarterly free cash flow at $37.3 million after $99.3 million in capex.

• $129.8 million was returned to shareholders via dividends and stock buybacks; board authorized up to $1.2 billion in share repurchases over the next 12 months.

• Adjusted EBITDA reached $415.0 million, up from $408.0 million in Q1 2025.

• Operating income was $317.5 million, nearly flat year-over-year.

Financial highlights

• Operating margin was 16.4%, down 40 bps year-over-year; adjusted EBITDA margin was 21.4%.

• Effective tax rate increased to 25.4% from 24.7% due to higher taxable income in higher-tax jurisdictions.

• Net debt at March 31, 2026 was $1,377.3 million, up from year-end due to capex and buybacks; leverage ratio at 0.85x EBITDA.

• Nearly $1 billion cash on hand and $949.5 million undrawn credit facility.

• Average finance rate stable at 2.5%.

Outlook and guidance

• Orders remain solid across segments, but inflationary pressures, especially in aluminum and resin, are significant; management expects to mitigate input cost inflation through supply chain actions and surcharges.

• Sleever acquisition expected to close in Q2 2026; Avery direct-to-consumer growth to continue; Checkpoint apparel orders anticipated to improve.

• Innovia demand strong in April due to buy-forward activity, potentially aiding Q2 but possibly impacting Q3.

• Expectation of resolving the insurable equipment outage at the Pennsylvania facility within the year.

• FX impact expected to be neutral in Q2 at current rates.