Sonoco Reports Second Quarter 2025 Results
HARTSVILLE, S.C., July 23, 2025 (GLOBE NEWSWIRE) -- Sonoco Products Company ("Sonoco" or the "Company") (NYSE:SON), a global leader in high-value sustainable packaging, today reported financial results for the second quarter ended June 29, 2025.
Summary:
Grew second quarter net sales to $1.9 billion, up 49.4% from the prior-year quarter primarily from acquisitions
Reported second quarter GAAP net income attributable to Sonoco of $493 million, up from $91 million in the same period in 2024, and diluted earnings per share attributable to Sonoco of $4.96; $425 million of the increase, net of tax, was attributable to the sale of the Company's Thermoformed and Flexibles Packaging and global Trident businesses ("TFP") in April 2025 to TOPPAN Holdings Inc.
Improved quarterly adjusted net income attributable to Sonoco by 7.4% year over year to $136 million, and reported adjusted diluted earnings per share of $1.37
Achieved second quarter adjusted EBITDA of $328 million, up 25.1% from the prior-year quarter
Generated $193 million of operating cash flow in the second quarter, and used $15 million of operating cash flow year-to-date
Reduced total debt and net debt by approximately $1.7 billion and $1.9 billion, respectively, during the quarter, using divestiture proceeds and operating cash flow
Delivered $15 million in favorable productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives over the prior-year quarter
Invested $94 million of net capital in future growth and productivity projects during Q2 2025
Maintaining full year 2025 guidance for adjusted EBITDA of between $1.3 billion to $1.4 billion and updated expected adjusted diluted earnings per share to a target of approximately $6.00 or the low end of previous full-year guidance
*Note: References in today's news release to consolidated "net sales," "operating profit," and "adjusted operating profit," and Consumer Packaging "segment operating profit" and "segment adjusted EBITDA" along with the corresponding year-over-year comparable results, do not include results of TFP, which was sold in April 2025 and is being accounted for as discontinued operations in prior periods.
Second Quarter 2025 Consolidated Results
(Dollars in millions except per share data)
Three Months Ended
Six Months Ended
GAAP Results
June 29, 2025
June 30, 2024
Change
June 29, 2025
June 30, 2024
Change
Net sales1
$
1,910
$
1,279
49
%
$
3,620
$
2,587
40
%
Net sales related to discontinued operations
$
—
$
345
(100
)%
$
321
$
674
(52
)%
Operating profit1
$
176
$
96
83
%
$
303
$
168
80
%
Operating profit related to discontinued operations
$
626
$
45
1304
%
$
664
$
84
686
%
Net income attributable to Sonoco
$
493
$
91
443
%
$
548
$
156
251
%
EPS (diluted)
$
4.96
$
0.92
439
%
$
5.51
$
1.57
251
%
Three Months Ended
Six Months Ended
Non-GAAP Results2
June 29, 2025
June 30, 2024
Change
June 29, 2025
June 30, 2024
Change
Adjusted operating profit1
$
247
$
142
74
%
$
460
$
272
69
%
Adjusted EBITDA
$
328
$
262
25
%
$
666
$
507
31
%
Adjusted net income attributable to Sonoco
$
136
$
127
7
%
$
273
$
238
15
%
Adjusted EPS (diluted)
$
1.37
$
1.28
7
%
$
2.74
$
2.40
14
%
1Excludes results of discontinued operations.
2See the Company's definitions of non-GAAP financial measures, explanations as to why they are used, and reconciliations to the most directly comparable U.S. generally accepted accounting principles ("GAAP") financial measures later in this release.
Second quarter net sales of $1.9 billion reflect an increase of 49.4% compared to the corresponding prior-year quarter, driven by sales added from our Metal Packaging Europe, Middle East and Africa ("EMEA") business following the December 4, 2024 acquisition of Titan Holdings I B.V. ("Eviosys"). Additionally, sales benefited from price increases implemented to offset inflation and tariffs and from the favorable impact of foreign exchange rates. Overall, the impact of changes in sales volumes (excluding the impact of the Eviosys acquisition) was essentially flat as solid Consumer Packaging segment volume growth was offset by year-over-year volume declines in Industrial Paper Packaging segment results.
GAAP operating profit for the second quarter increased to $176 million due to operating profit from our Metal Packaging EMEA business, a positive price/cost environment, lower restructuring costs, and strong productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives. These positive factors were partially offset by a negative product mix in certain businesses.
Effective tax rates on GAAP net income attributable to Sonoco and adjusted net income attributable to Sonoco were 37.3% and 25.6%, respectively, in the second quarter, compared to 23.3% and 26.2%, respectively, in the same period in 2024.
"We continued to make progress on our transformation journey in the second quarter with the successful divestiture of TFP and the utilization of proceeds to substantially reduce leverage. We achieved strong growth in top-line and bottom-line performance along with margin expansion in the quarter even though results were impacted by global macroeconomic pressures and seasonal factors which affected consumer and industrial demand and higher than expected interest costs," said Howard Coker, Sonoco President and Chief Executive Officer. "Consumer Packaging segment sales grew 110% and adjusted EBITDA jumped 115%. Most of the improvement came from the addition of Metal Packaging EMEA (Eviosys acquisition) along with strong performance from our Metal Packaging U.S. business which achieved greater than 10% growth in volume/mix in the quarter. Our Industrial Paper Packaging segment improved adjusted EBITDA by 16% and EBITDA margin by approximately 300 basis points driven by year-over-year improvement in price/cost and productivity."
Second Quarter 2025 Segment Results(Dollars in millions except per share data)
Sonoco reports its financial results in two reportable segments: Consumer Packaging ("Consumer") and Industrial Paper Packaging ("Industrial"), with all remaining businesses reported as All Other.
Three Months Ended
Six Months Ended
Consumer
June 29, 2025
June 30, 2024
Change
June 29, 2025
June 30, 2024
Change
Net sales1
$
1,227
$
583
110
%
$
2,294
$
1,165
97
%
Segment operating profit1
$
160
$
74
117
%
$
301
$
132
128
%
Segment operating profit margin1
13
%
13
%
13
%
11
%
Segment Adjusted EBITDA1, 2
$
213
$
99
115
%
$
403
$
182
121
%
Segment Adjusted EBITDA margin1, 2
17
%
17
%
18
%
16
%
Consumer segment net sales grew 110%, driven by sales attributable to Metal Packaging EMEA following the acquisition of Eviosys, strong year-over-year volume growth in Metal Packaging U.S., and the favorable impact of foreign exchange rates.
Segment operating profit and segment adjusted EBITDA grew primarily as a result of profits from Metal Packaging EMEA, productivity improvements, and volume/mix gains in our U.S. metal packaging business.
Three Months Ended
Six Months Ended
Industrial
June 29, 2025
June 30, 2024
Change
June 29, 2025
June 30, 2024
Change
Net sales
$
588
$
601
(2
)%
$
1,146
$
1,194
(4
)%
Segment operating profit
$
81
$
67
21
%
$
152
$
133
15
%
Segment operating profit margin
14
%
11
%
13
%
11
%
Segment Adjusted EBITDA2
$
113
$
98
16
%
$
215
$
193
11
%
Segment Adjusted EBITDA margin2
19
%
16
%
19
%
16
%
Industrial segment net sales decreased 2% to $588 million as volume declined across the segment, and the loss of net sales related to the 2024 divestiture of two production facilities in China was only partially offset by year-over-year price increases and the favorable impact of foreign exchange rates.
Segment operating profit margin increased to 14% and adjusted EBITDA margin increased to 19% due to the positive impact of price/cost and productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives, which were only partially offset by lower volume/mix.
Three Months Ended
Six Months Ended
All Other
June 29, 2025
June 30, 2024
Change
June 29, 2025
June 30, 2024
Change
Net sales
$
95
$
95
—
%
$
180
$
229
(21
)%
Operating profit
$
13
$
14
(5
)%
$
25
$
31
(19
)%
Operating profit margin
14
%
15
%
14
%
14
%
Adjusted EBITDA2
$
16
$
17
(5
)%
$
30
$
37
(19
)%
Adjusted EBITDA margin2
17
%
17
%
17
%
16
%
Net sales were flat as volume gains in temperature-assured packaging were essentially offset by lower volume from industrial plastics.
Operating profit and adjusted EBITDA both declined 5% year over year due to lower volumes from industrial plastics and negative price/cost.
1Excludes results of discontinued operations.2Segment and All Other adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See the Company's reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures later in this release.
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents, including discontinued operations, were $330 million as of June 29, 2025, compared to $443 million as of December 31, 2024, with the decrease primarily related to changes in net working capital.
Total debt, including discontinued operations, and net debt were $5.4 billion and $5.1 billion, respectively, as of June 29, 2025, decreases of $(1.7) billion and $(1.5) billion compared to December 31, 2024, primarily related to the repayment of the outstanding $1.5 billion principal amount of borrowings under the Company's 364-day term loan facility at the beginning of the second quarter using proceeds from the sale of TFP.
On June 29, 2025, the Company had available liquidity of $1,225 million, comprising available borrowing capacity under its revolving credit facility of $895 million and cash on hand.
Cash flow from operating activities for the six months ended June 29, 2025 was an outflow of $(15) million, compared to an inflow of $275 million in the same period of 2024. The main driver of the year-over-year change in operating cash flow was the increased seasonal need for working capital during the first half of the calendar year related to Metal Packaging EMEA. This working capital build is expected to reverse during the second half of the year.
Capital expenditures, net of proceeds from sales of fixed assets, for the first half of 2025 were $186 million, compared to $179 million for the same period last year.
Free Cash Flow for the first six months of 2025 was $(201) million compared to $96 million for the same period of 2024. Free Cash Flow is a non-GAAP financial measure. See the Company's definition of Free Cash Flow, the explanation as to why it is used, and the reconciliation to net cash provided by operating activities later in this release.
Dividends paid during the first half of the year ended June 29, 2025 increased to $104 million compared to $101 million in the same period of the prior year.
Guidance(1)
Full-Year 2025
Adjusted EPS(2): target of approximately $6.00 or the lower end of previous guidance of $6.00 to $6.20
Cash flow from operating activities: target of approximately $800 million or the lower end of previous guidance of $800 million to $900 million
Adjusted EBITD(2): $1,300 million to $1,400 million or in line with previous guidance
Commenting on the Company's outlook, Sonoco's Coker, said, "As we enter the second half of 2025, we are encouraged by our trajectory as we enter the busiest quarter of the year. We expect continued strong performance in our Consumer Packaging segment with our U.S. Metal Packaging operations capitalizing on commercial wins to organically grow above industry growth rates and with the continued integration of our new Metal Packaging EMEA operations which is projected to exceed our targeted synergy savings. Our iconic Rigid Paper Containers business is introducing new all-paper packaging for customers looking to differentiate their products on the shelf by exhibiting quality, sustainability and value. And our legacy Industrial Paper Packaging segment should have another strong quarter as it continues to benefit from improved market conditions while focusing on driving margin expansion through operational and commercial excellence initiatives.
"Finally, we remain mindful of external risks which are leading to global macroeconomic uncertainty that may affect our customers and consumers. We must remain flexible and focused on meeting the changing needs of our customers while consciously controlling costs, capital and reducing leverage while creating long-term value to our shareholders."
(1) Sonoco's 2025 guidance includes actual first quarter results from the TFP business. Guidance excludes any impact of potential divestitures. Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the future performance of the overall economy, the effects of tariffs, trade policy and inflation, the challenges in global supply chains, potential changes in raw material prices, other costs, and the Company's effective tax rate, as well as other risks and uncertainties, including those described below, actual results could vary substantially. Further information can be found in the section entitled "Forward-looking Statements" in this release.
(2) Full year 2025 GAAP guidance is not provided in this release due to the likely occurrence of one or more of the following, the timing and magnitude of which we are unable to reliably forecast without unreasonable efforts: restructuring costs and restructuring-related impairment charges, acquisition/divestiture-related costs, gains or losses from the sale of businesses or other assets, and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company's future GAAP financial results. Accordingly, quantitative reconciliations of Adjusted EPS and Adjusted EBITDA guidance and net debt/Adjusted EBITDA targets to the nearest comparable GAAP measures have been omitted in reliance on the exception provided by Item 10 of Regulation S-K.
Investor Conference Call WebcastThe Company will host a conference call to discuss the second quarter 2025 results. A live audio webcast of the call along with supporting materials will be available on the Sonoco Investor Relations website at https://investor.sonoco.com/. A webcast replay will be available on the Company's website for at least 30 days following the call.
Time:
Thursday, July 24, 2025, at 8:00 a.m. Eastern Time
AudienceDial-In:
To listen via telephone, please register in advance at https://registrations.events/direct/Q4I122823028After registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call.
Webcast Link:
https://events.q4inc.com/attendee/793969096
Contact Information: Roger SchrumInterim Head of Investor Relations and
About SonocoSonoco (NYSE:SON) is a global leader in high-value sustainable metal and fiber consumer and industrial packaging. The Company is now a multi-billion-dollar enterprise with approximately 23,400 employees working in 285 operations in 40 countries, serving some of the world's best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of America's Most Trustworthy and Responsible Companies by Newsweek in 2025. For more information on the Company, visit our website at www.sonoco.com.
Forward-looking StatementsStatements included herein that are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also "forward-looking statements." Words such as "achieve," "anticipate," "assume," "believe," "can," "consider," "committed," "continue," "could," "develop," "estimate," "expect," "forecast," "focus," "future," "goal," "guidance," "intend," "is designed to," "likely," "maintain," "may," "might," "objective," "ongoing," "opportunity," "outlook," "persist," "plan," "positioned," "possible," "potential," "predict," "project," "remain," "seek," "should," "strategy," "target," "will," "would," or the negative thereof, and similar expressions identify forward-looking statements.
Forward-looking statements in this communication include statements regarding, but not limited to: the Company's future operating and financial performance, including full year 2025 outlook and the anticipated drivers thereof; expectations regarding the need for working capital; the Company's ability to support its customers and manage costs; opportunities for productivity and other operational improvements; price/cost, customer demand and volume outlook; expected benefits from divestitures, and the timing thereof; the effectiveness of the Company's strategy and strategic initiatives, including with respect to capital expenditures, portfolio simplification and capital allocation priorities; the resilience of the Company's portfolio; the effects of the changing macroeconomic environment, including trade policies and tariffs, on the Company, its supply chain and its customers, and the Company's ability to manage risks related thereto; and the Company's ability to generate continued value and return capital to shareholders.
Such forward-looking statements are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements.
Such risks, uncertainties and assumptions include, without limitation, those related to: the Company's ability to execute on its strategy, including with respect to the integration of the Eviosys operations, divestitures, cost management, productivity improvements, restructuring and capital expenditures, and achieve the benefits it expects therefrom; conditions in the credit markets; the ability to retain key employees and successfully integrate Eviosys; the ability to realize estimated cost savings, synergies or other anticipated benefits of the Eviosys acquisition, or that such benefits may take longer to realize than expected; diversion of management's attention; the potential impact of the consummation of the Eviosys acquisition on relationships with clients and other third parties; the operation of new manufacturing capabilities; the Company's ability to achieve anticipated cost and energy savings; the availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariff or other trade policies or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine as well as the economic sanctions related thereto, and the ongoing conflicts in the Middle East), and the Company's ability to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks; the costs of labor; the effects of inflation, changes related to tariffs or other trade policies and global regulations, as well as the overall uncertainty surrounding international trade relations; fluctuations in consumer demand, volume softness, and other macroeconomic factors on the Company and the industries in which it operates and that it serves; impact of changing laws and regulations, including the One Big Beautiful Bill Act in the United States, on the Company; the Company's ability to meet its environmental, sustainability and similar goals; and to meet other social and governance goals, including challenges in implementation thereof; and the other risks, uncertainties and assumptions discussed in the Company's filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q, particularly under the heading "Risk Factors." The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur.
References to our Website Address
References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission's rules or the New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our website by reference into this release.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars and shares in thousands except per share data)
Three Months Ended
Six Months Ended
June 29, 2025
June 30, 2024
June 29, 2025
June 30, 2024
Net sales
$
1,910,441
$
1,278,801
$
3,619,669
$
2,587,437
Cost of sales
1,504,164
993,558
2,859,705
2,031,029
Gross profit
406,277
285,243
759,964
556,408
Selling, general, and administrative expenses
218,775
175,947
427,838
343,530
Restructuring/Asset impairment charges
9,752
17,963
23,333
48,973
(Loss)/gain on divestiture of business and other assets
(2,083
)
4,478
(6,266
)
4,478
Operating profit
175,667
95,811
302,527
168,383
Non-operating pension costs
2,982
4,170
6,103
7,465
Interest expense
64,367
28,674
120,394
58,838
Interest income
4,122
3,059
11,470
6,192
Other (expense)/income, net
(6,559
)
5,867
(13,076
)
5,867
Income from continuing operations before income taxes
105,881
71,893
174,424
114,139
Provision for income taxes
39,500
16,756
60,647
24,627
Income before equity in earnings of affiliates
66,381
55,137
113,777
89,512
Equity in earnings of affiliates, net of tax
2,270
2,274
4,191
3,411
Net income from continuing operations
68,651
57,411
117,968
92,923
Net income from discontinued operations
424,548
33,540
429,720
63,301
Net income
493,199
90,951
547,688
156,224
Net loss/(income) from continuing operations attributable to noncontrolling interests
224
(110
)
164
(158
)
Net income from discontinued operations attributable to noncontrolling interests
—
(30
)
—
(78
)
Net income attributable to Sonoco
$
493,423
$
90,811
$
547,852
$
155,988
Weighted average common shares outstanding, diluted
99,539
99,241
99,453
99,199
Diluted earnings from continuing operations per common share
$
0.69
$
0.58
$
1.19
$
0.93
Diluted earnings from discontinued operations per common share
4.27
0.34
4.32
0.64
Diluted earnings attributable to Sonoco per common share
$
4.96
$
0.92
$
5.51
$
1.57
Dividends per common share
$
0.53
$
0.52
$
1.05
$
1.03
CONDENSED STATEMENTS OF INCOME FOR DISCONTINUED OPERATIONS (Unaudited)
(Dollars and shares in thousands except per share data)
Three Months Ended
Six Months Ended
June 29, 2025
June 30, 2024
June 29, 2025
June 30, 2024
Net sales
$
—
$
344,678
$
320,678
$
673,585
Cost of sales
—
272,567
250,854
535,086
Gross profit
—
72,111
69,824
138,499
Selling, general, and administrative expenses
—
26,263
31,607
52,162
Restructuring/Asset impairment charges
—
1,287
426
1,895
Gain on divestiture of business and other assets
625,773
—
625,773
