Sonoco Reports Second Quarter 2025 Results

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

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 acquisitionsReported 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 $1.37Achieved second quarter adjusted EBITDA of $328 million, up 25.1% from the prior-year quarterGenerated $193 million of operating cash flow in the second quarter, and used $15 million of operating cash flow year-to-dateReduced total debt and net debt by approximately $1.7 billion and $1.9 billion, respectively, during the quarter, using divestiture proceeds and operating cash flowDelivered $15 million in favorable productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives over the prior-year quarterInvested $94 million of net capital in future growth and productivity projects during Q2 2025Maintaining 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 ResultsJune 29,

2025June 30,

2024Change June 29,

2025June 30,

2024Change          Net sales1$1,910$1,27949% $3,620$2,58740% Net sales related to discontinued operations$-$345(100)% $321$674(52)% Operating profit1$176$9683% $303$16880% Operating profit related to discontinued operations$626$451304% $664$84686% Net income attributable to Sonoco$493$91443% $548$156251% EPS (diluted)$4.96$0.92439% $5.51$1.57251%                      Three Months Ended  Six Months Ended  Non-GAAP Results2June 29,

2025June 30,

2024Change June 29,

2025June 30,

2024Change          Adjusted operating profit1$247$14274% $460$27269% Adjusted EBITDA$328$26225% $666$50731% Adjusted net income attributable to Sonoco$136$1277% $273$23815% Adjusted EPS (diluted)$1.37$1.287% $2.74$2.4014%          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,

2024Change June 29,

2025 June 30,

2024Change            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,

2024Change June 29,

2025 June 30,

2024Change            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 OtherJune 29,

2025 June 30,

2024Change June 29,

2025 June 30,

2024Change              Net sales$95  $95 -% $180  $229