CCL Industries (CCL-B) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales rose 9.1% year-over-year to $2,110.2 million, driven by 5% organic growth, 1.8% from acquisitions, and 2.3% from currency translation; six-month sales reached $4.0 billion.

• Operating income increased 8.8% year-over-year to $350.6 million, with net earnings at $223.8 million, up from $213.1 million.

• Adjusted basic EPS for Q2 was $1.35, up 10.7% year-over-year; YTD adjusted EPS was $2.55.

• $455.1 million returned to shareholders YTD, including $331.6 million in share repurchases and $123.5 million in dividends.

• Four acquisitions since January 2025 contributed to sales growth.

Financial highlights

• Adjusted EBITDA for Q2 was $450.0 million, up 6% year-over-year; operating margin steady at 16.6%.

• Free cash flow from operations for Q2 was $226.0 million, with trailing 12-month free cash flow near record levels.

• Effective tax rate for Q2 2026 was 26%, up from 25.3% last year.

• Leverage ratio at June 30, 2026, was 1.05x Adjusted EBITDA; net debt at $1,741.6 million.

• Cash and cash equivalents at June 30, 2026, were $975.6 million.

Outlook and guidance

• CCL segment orders remain solid, with close monitoring of memory chip supply impacts.

• Avery expects continued direct-to-consumer growth and a strong back-to-school season.

• Checkpoint anticipates sequential improvement in H2, though comps remain tough due to last year’s tech rollouts.

• Innovia may see some inflation reversal and inventory unwinding in Europe.

• Management expects a modest FX tailwind to earnings in Q3 2026 if current rates persist.