CCL Industries Inc. (CCL.A) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to CCL Industries' 2026 Second Quarter Investor Update. Please note that there will be a question and answer session after the call. The moderator for today is Mr. Geoff Martin, President and Chief Executive Officer, and joining him is Mr. Sean Washchuk, Senior Vice President and Chief Financial Officer. Please go ahead, gentlemen. Thank you, Holly. Good morning, everyone. I'll draw everyone's attention to our second page of this presentation. I'll remind everyone that our business faces known and unknown risks and opportunities. For further details of these key risks, please take a look at our 2026 second quarter report and our 2025 annual report under the section Risks and Uncertainties. Our annual and quarterly reports can be found online at the company's website, CCLIND.com, or on cdarplus.ca. Moving to slide three, our summary of financial results. For the second quarter of 2026, sales increased 9.1% with 5% organic growth, 1.8% acquisition-related growth and 2.3% positive impact from foreign currency translation, resulting in sales of $2.11 billion, compared to approximately $1.93 billion in the second quarter of 2025. Operating income was $350.6 million for the 2026 second quarter compared to $322.1 million for the second quarter of 2025, an improvement of approximately 7% excluding currency translation. This, however, did not include $1.7 million of non-cash acquisition accounting related adjustments to fair value in the inventory from the Sleba transaction. Excluding these non-cash adjustments, operating income excluding foreign exchange increased more than 7%. Geoff will expand on the segmented operating results of our CCL, Avery, Check Point, and Inovia segments momentarily. Corporate expenses were up for the 2026 second quarter co...