Sonoco Products Co

Latest Results (20.11.2025):

Sonoco Products Co. reported results for the third quarter of 2025 (ended September 28, 2025). The company delivered strong top- and bottom-line growth driven largely by the December 2024 Eviosys (Metal Packaging EMEA) acquisition and pricing actions: consolidated net sales rose to $2.13 billion (up 57.3% year‑over‑year), GAAP net income attributable to Sonoco was $122.9 million (diluted EPS $1.23), adjusted net income was $191.2 million (adjusted diluted EPS $1.92), and adjusted EBITDA was $386 million. Sonoco also announced an agreement to sell its ThermoSafe business for up to $725 million, with proceeds expected to reduce debt, and revised full‑year adjusted EPS guidance to $5.65–$5.75.

Revenue and drivers

Consolidated net sales were $2.13 billion in Q3 2025, a 57.3% increase versus Q3 2024, driven primarily by the Metal Packaging EMEA (Eviosys) acquisition, price realizations to offset inflation and tariffs, and favorable foreign exchange. Discontinued operations (TFP) are excluded from these comparisons.

Profitability and margins

GAAP operating profit rose to $195 million and GAAP net income attributable to Sonoco was $122.9 million (EPS $1.23). Adjusted operating profit was $308 million and adjusted EBITDA was $386 million (up 37.3% y/y), reflecting improved price/cost dynamics, procurement savings, production efficiencies and fixed cost reductions.

Cash flow and working capital

Operating cash flow for Q3 2025 was $292 million (up about 80% y/y) and year‑to‑date operating cash flow was $277 million; management expects continued strong cash generation in Q4 as seasonal working capital reverses.

Guidance update

Sonoco narrowed full‑year adjusted diluted EPS guidance to $5.65–$5.75 (previously ~ $6.00). Full‑year adjusted EBITDA is expected to be $1.30–$1.35 billion (near prior range), and projected cash flows from operations were lowered to $700–$750 million (from ~ $800 million).

Segment performance

Consumer Packaging (Q3) net sales grew 117% to $1,438 million, with segment adjusted EBITDA of $260 million (18% margin), driven by Metal Packaging EMEA and improved U.S. metal packaging results. Industrial Paper Packaging net sales were $585 million (flat y/y) with operating profit up 28% and adjusted EBITDA up 21% (21% margin) due to price recovery, productivity and cost actions.

Portfolio and balance‑sheet actions

On September 7, 2025, Sonoco agreed to sell its ThermoSafe business to Arsenal Capital Partners for up to $725 million; proceeds are expected to be used to repay existing debt and to further simplify the company into two core global segments (Consumer and Industrial), lowering net leverage when the transaction closes (anticipated before year‑end).