Sonoco Reports Second Quarter 2025 Results
Sonoco (NYSE:SON) reported strong Q2 2025 financial results, with net sales growing 49.4% to $1.9 billion. The company posted GAAP net income of $493 million ($4.96 per share), up from $91 million in Q2 2024, largely due to a $425 million gain from the sale of its TFP business.
Key highlights include adjusted EBITDA of $328 million (up 25.1% YoY), adjusted net income of $136 million (up 7.4%), and successful debt reduction of $1.7 billion using divestiture proceeds. The Consumer Packaging segment showed remarkable growth with sales up 110%, while Industrial Paper Packaging saw a 2% decline.
The company maintained its full-year 2025 adjusted EBITDA guidance of $1.3-1.4 billion but updated its adjusted EPS target to approximately $6.00, at the lower end of previous guidance.
Sonoco (NYSE:SON) ha riportato solidi risultati finanziari per il secondo trimestre 2025, con vendite nette in crescita del 49,4% a 1,9 miliardi di dollari. L'azienda ha registrato un utile netto GAAP di 493 milioni di dollari (4,96 dollari per azione), in aumento rispetto ai 91 milioni del secondo trimestre 2024, principalmente grazie a un guadagno di 425 milioni di dollari derivante dalla vendita della sua attività TFP.
I punti salienti includono un EBITDA rettificato di 328 milioni di dollari (in crescita del 25,1% anno su anno), un utile netto rettificato di 136 milioni di dollari (in aumento del 7,4%) e una riduzione del debito di 1,7 miliardi di dollari ottenuta con i proventi delle cessioni. Il segmento Consumer Packaging ha mostrato una crescita notevole con vendite in aumento del 110%, mentre l'Industrial Paper Packaging ha registrato un calo del 2%.
L'azienda ha confermato la guida sull'EBITDA rettificato per l'intero anno 2025 tra 1,3 e 1,4 miliardi di dollari, aggiornando però l'obiettivo sull'utile per azione rettificato a circa 6,00 dollari, posizionandolo nella parte bassa della precedente previsione.
Sonoco (NYSE:SON) reportó sólidos resultados financieros en el segundo trimestre de 2025, con ventas netas creciendo un 49,4% hasta 1.900 millones de dólares. La compañía registró un ingreso neto GAAP de 493 millones de dólares (4,96 dólares por acción), frente a los 91 millones del segundo trimestre de 2024, principalmente debido a una ganancia de 425 millones de dólares por la venta de su negocio TFP.
Los aspectos destacados incluyen un EBITDA ajustado de 328 millones de dólares (un aumento del 25,1% interanual), un ingreso neto ajustado de 136 millones de dólares (un incremento del 7,4%) y una exitosa reducción de deuda de 1.700 millones de dólares utilizando los ingresos de desinversiones. El segmento de Consumer Packaging mostró un crecimiento notable con ventas que aumentaron un 110%, mientras que Industrial Paper Packaging tuvo una disminución del 2%.
La compañía mantuvo su guía de EBITDA ajustado para todo el año 2025 en 1.300-1.400 millones de dólares, pero actualizó su objetivo de EPS ajustado a aproximadamente 6,00 dólares, en el extremo inferior de la guía previa.
Sonoco (NYSE:SON)는 2025년 2분기 강력한 재무 실적을 보고했으며, 순매출은 49.4% 증가한 19억 달러를 기록했습니다. 회사는 GAAP 순이익 4억 9,300만 달러 (주당 4.96달러)을 기록했으며, 이는 2024년 2분기 9,100만 달러에서 크게 증가한 수치로, 주로 TFP 사업 매각에서 발생한 4억 2,500만 달러의 이익 덕분입니다.
주요 하이라이트로는 조정 EBITDA 3억 2,800만 달러 (전년 대비 25.1% 증가), 조정 순이익 1억 3,600만 달러 (7.4% 증가), 그리고 매각 대금으로 17억 달러의 부채를 성공적으로 감축한 점이 포함됩니다. 소비자 포장 부문은 매출이 110% 증가하며 눈에 띄는 성장을 보였고, 산업용 종이 포장 부문은 2% 감소했습니다.
회사는 2025년 연간 조정 EBITDA 가이던스를 13억~14억 달러로 유지했으나, 조정 주당순이익 목표는 이전 가이던스 하단인 약 6.00달러로 업데이트했습니다.
Sonoco (NYSE:SON) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec un chiffre d'affaires net en hausse de 49,4 % à 1,9 milliard de dollars. La société a enregistré un bénéfice net GAAP de 493 millions de dollars (4,96 dollars par action), contre 91 millions au deuxième trimestre 2024, principalement grâce à un gain de 425 millions de dollars provenant de la vente de son activité TFP.
Les points clés incluent un EBITDA ajusté de 328 millions de dollars (en hausse de 25,1 % sur un an), un bénéfice net ajusté de 136 millions de dollars (en hausse de 7,4 %) et une réduction réussie de la dette de 1,7 milliard de dollars grâce aux produits des cessions. Le segment Consumer Packaging a affiché une croissance remarquable avec des ventes en hausse de 110 %, tandis que le segment Industrial Paper Packaging a connu une baisse de 2 %.
La société a maintenu ses prévisions d'EBITDA ajusté pour l'année complète 2025 entre 1,3 et 1,4 milliard de dollars, mais a mis à jour son objectif de BPA ajusté à environ 6,00 dollars, dans la partie basse de la fourchette précédente.
Sonoco (NYSE:SON) meldete starke Finanzergebnisse für das zweite Quartal 2025, mit einem Nettoumsatzanstieg von 49,4 % auf 1,9 Milliarden US-Dollar. Das Unternehmen erzielte einen GAAP-Nettogewinn von 493 Millionen US-Dollar (4,96 US-Dollar pro Aktie), verglichen mit 91 Millionen im zweiten Quartal 2024, hauptsächlich aufgrund eines Gewinns von 425 Millionen US-Dollar aus dem Verkauf seines TFP-Geschäfts.
Wichtige Highlights sind ein bereinigtes EBITDA von 328 Millionen US-Dollar (plus 25,1 % gegenüber dem Vorjahr), ein bereinigter Nettogewinn von 136 Millionen US-Dollar (plus 7,4 %) sowie eine erfolgreiche Schuldenreduzierung von 1,7 Milliarden US-Dollar durch Erlöse aus Veräußerungen. Das Segment Consumer Packaging verzeichnete ein bemerkenswertes Wachstum mit einem Umsatzanstieg von 110 %, während Industrial Paper Packaging einen Rückgang von 2 % verzeichnete.
Das Unternehmen bestätigte seine Prognose für das bereinigte EBITDA im Gesamtjahr 2025 von 1,3 bis 1,4 Milliarden US-Dollar, aktualisierte jedoch sein Ziel für das bereinigte Ergebnis je Aktie auf etwa 6,00 US-Dollar, am unteren Ende der bisherigen Prognose.
- Net sales increased 49.4% to $1.9 billion year-over-year
- GAAP net income rose to $493 million from $91 million in Q2 2024
- Adjusted EBITDA grew 25.1% to $328 million
- Reduced total debt by $1.7 billion during the quarter
- Consumer Packaging segment sales grew 110% with strong Metal Packaging performance
- Delivered $15 million in favorable productivity savings
- Industrial segment operating profit margin improved to 14% from 11%
- Operating cash flow showed negative $15 million YTD versus positive $275 million in 2024
- Industrial segment sales decreased 2% due to volume declines
- Free Cash Flow declined to negative $201 million from positive $96 million in 2024
- Lowered full-year adjusted EPS guidance to $6.00, the lower end of previous range
- Higher than expected interest costs impacted results
Insights
Sonoco reported strong Q2 2025 with 49.4% sales growth, significant debt reduction, and reaffirmed EBITDA guidance despite macroeconomic challenges.
Sonoco delivered an impressive Q2 2025 performance with net sales surging 49.4% year-over-year to $1.9 billion, primarily driven by the December 2024 Eviosys acquisition. The company reported GAAP net income of $493 million ($4.96 per share), a substantial increase from $91 million in Q2 2024, though $425 million of this gain came from the divestiture of its Thermoformed and Flexibles Packaging businesses to TOPPAN Holdings.
Adjusting for one-time items, adjusted net income rose 7.4% to $136 million ($1.37 per share), while adjusted EBITDA increased 25.1% to $328 million. The company generated $193 million in quarterly operating cash flow but reported a $15 million operating cash outflow year-to-date, primarily due to seasonal working capital requirements in the newly acquired Metal Packaging EMEA business.
Sonoco's financial position strengthened considerably as it reduced total debt by approximately $1.7 billion during the quarter by using proceeds from the TFP divestiture to repay its $1.5 billion term loan. The company maintained strong liquidity of $1.2 billion as of quarter-end.
By segment, Consumer Packaging saw sales jump 110% to $1.2 billion with adjusted EBITDA growing 115% to $213 million, primarily from the Eviosys acquisition and strong U.S. metal packaging performance. Industrial Paper Packaging reported a 2% sales decline to $588 million but improved adjusted EBITDA margin by 300 basis points to 19% through better price/cost relationships and productivity initiatives.
Management narrowed its full-year 2025 guidance, targeting adjusted EPS of approximately $6.00 (the lower end of previous guidance), operating cash flow of around $800 million, while maintaining its adjusted EBITDA forecast of $1.3-1.4 billion. This slight downward adjustment suggests some caution regarding macroeconomic headwinds despite the company's transformation progress.
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 , up49.4% 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 , up25.1% 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 of49.4% 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% and25.6% , respectively, in the second quarter, compared to23.3% and26.2% , 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
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 to19% 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 t o$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 Webcast
The 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 |
| Audience Dial-In: | To listen via telephone, please register in advance at https://registrations.events/direct/Q4I122823028 After 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 Schrum
Interim Head of Investor Relations and Communications
roger.schrum@sonoco.com
843-339-6018
About Sonoco
Sonoco (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 Statements
Statements 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 | — | |||||||||||
| Operating profit | 625,773 | 44,561 | 663,564 | 84,442 | |||||||||||
| Other income, net | — | — | 182 | — | |||||||||||
| Interest expense | — | 967 | 24,911 | 2,023 | |||||||||||
| Interest income | — | 497 | 281 | 922 | |||||||||||
| Income from discontinued operations before income taxes | 625,773 | 44,091 | 638,752 | 83,341 | |||||||||||
| Provision for income taxes | 201,225 | 10,551 | 209,032 | 20,040 | |||||||||||
| Net income from discontinued operations | 424,548 | 33,540 | 429,720 | 63,301 | |||||||||||
| Net income from discontinued operations attributable to noncontrolling interests | — | (30 | ) | — | (78 | ) | |||||||||
| Net income attributable to discontinued operations | $ | 424,548 | $ | 33,510 | $ | 429,720 | $ | 63,223 | |||||||
| Weighted average common shares outstanding – diluted | 99,539 | 99,241 | 99,453 | 99,199 | |||||||||||
| Diluted earnings from discontinued operations per common share | $ | 4.27 | $ | 0.34 | $ | 4.32 | $ | 0.64 | |||||||
| FINANCIAL SEGMENT INFORMATION (Unaudited) | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | ||||||||||||||
| Net sales: | |||||||||||||||||
| Consumer Packaging | $ | 1,227,033 | $ | 583,051 | $ | 2,293,626 | $ | 1,164,721 | |||||||||
| Industrial Paper Packaging | 588,239 | 600,770 | 1,145,948 | 1,193,830 | |||||||||||||
| Total reportable segments | 1,815,272 | 1,183,821 | 3,439,574 | 2,358,551 | |||||||||||||
| All Other | 95,169 | 94,980 | 180,095 | 228,886 | |||||||||||||
| Net sales | $ | 1,910,441 | $ | 1,278,801 | $ | 3,619,669 | $ | 2,587,437 | |||||||||
| Operating profit: | |||||||||||||||||
| Consumer Packaging | $ | 160,353 | $ | 73,756 | $ | 301,124 | $ | 132,323 | |||||||||
| Industrial Paper Packaging | 81,231 | 66,958 | 152,355 | 132,802 | |||||||||||||
| Segment operating profit | 241,584 | 140,714 | 453,479 | 265,125 | |||||||||||||
| All Other | 13,109 | 13,865 | 25,035 | 30,990 | |||||||||||||
| Corporate | |||||||||||||||||
| Restructuring/Asset impairment charges | (9,752 | ) | (17,963 | ) | (23,333 | ) | (48,973 | ) | |||||||||
| Amortization of acquisition intangibles | (44,193 | ) | (17,479 | ) | (86,154 | ) | (35,373 | ) | |||||||||
| (Loss)/Gain on divestiture of business and other assets | (2,083 | ) | 4,478 | (6,266 | ) | 4,478 | |||||||||||
| Acquisition, integration, and divestiture-related costs | (11,161 | ) | (22,092 | ) | (38,427 | ) | (27,596 | ) | |||||||||
| Other corporate costs | (7,755 | ) | (12,634 | ) | (18,853 | ) | (23,722 | ) | |||||||||
| Other operating (charges)/income, net | (4,082 | ) | 6,922 | (2,954 | ) | 3,454 | |||||||||||
| Operating profit | $ | 175,667 | $ | 95,811 | $ | 302,527 | $ | 168,383 | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
| (Dollars in thousands) | |||||||||
| Six Months Ended | |||||||||
| June 29, 2025 | June 30, 2024 | ||||||||
| Net income | $ | 547,688 | $ | 156,224 | |||||
| Net (gain)/loss on asset impairments, disposition of assets and divestiture of business and other assets | (612,543 | ) | 11,509 | ||||||
| Depreciation and amortization | 250,967 | 180,045 | |||||||
| Pension and postretirement plan contributions, net of non-cash expense | (1,727 | ) | (282 | ) | |||||
| Changes in working capital | (263,420 | ) | (29,202 | ) | |||||
| Changes in tax accounts | 142,031 | (5,048 | ) | ||||||
| Other operating activity | (77,649 | ) | (37,757 | ) | |||||
| Net cash (used)/provided by operating activities | (14,653 | ) | 275,489 | ||||||
| Purchases of property, plant and equipment, net | (186,393 | ) | (179,361 | ) | |||||
| Proceeds from the sale of business, net | 1,814,930 | 81,517 | |||||||
| Cost of acquisitions, net of cash acquired* | 16,528 | (3,281 | ) | ||||||
| Net debt repayments | (1,668,876 | ) | (71,244 | ) | |||||
| Cash dividends | (103,558 | ) | (101,310 | ) | |||||
| Payments for share repurchases | (10,576 | ) | (9,162 | ) | |||||
| Other inflow/(outflow), including effects of exchange rates on cash | 39,338 | (4,352 | ) | ||||||
| Net decrease in cash and cash equivalents | (113,260 | ) | (11,704 | ) | |||||
| Cash and cash equivalents at beginning of period | 443,060 | 151,937 | |||||||
| Cash and cash equivalents at end of period | $ | 329,800 | $ | 140,233 | |||||
| *During 2025, the Company received | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
| (Dollars in thousands) | |||||||
| June 29, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 329,800 | $ | 431,010 | |||
| Trade accounts receivable, net of allowances | 1,055,765 | 907,526 | |||||
| Other receivables | 211,963 | 175,877 | |||||
| Inventories | 1,283,234 | 1,016,139 | |||||
| Prepaid expenses | 155,856 | 197,134 | |||||
| Current assets of discontinued operations | — | 450,874 | |||||
| Total Current Assets | 3,036,618 | 3,178,560 | |||||
| Property, plant and equipment, net | 2,883,135 | 2,718,747 | |||||
| Right of use asset-operating leases | 318,036 | 307,688 | |||||
| Goodwill | 2,678,045 | 2,525,657 | |||||
| Other intangible assets, net | 2,755,292 | 2,586,698 | |||||
| Other assets | 299,298 | 226,130 | |||||
| Noncurrent assets of discontinued operations | — | 964,310 | |||||
| Total Assets | $ | 11,970,424 | $ | 12,507,790 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Current Liabilities: | |||||||
| Payable to suppliers and other payables | $ | 1,815,248 | $ | 1,734,955 | |||
| Notes payable and current portion of long-term debt | 436,880 | 2,054,525 | |||||
| Accrued taxes | 171,046 | 6,755 | |||||
| Current liabilities of discontinued operations | — | 242,056 | |||||
| Total Current Liabilities | 2,423,174 | 4,038,291 | |||||
| Long-term debt, net of current portion | 4,986,643 | 4,985,496 | |||||
| Noncurrent operating lease liabilities | 268,181 | 258,735 | |||||
| Pension and other postretirement benefits | 183,926 | 180,827 | |||||
| Deferred income taxes and other | 857,667 | 644,317 | |||||
| Noncurrent liabilities of discontinued operations | — | 113,911 | |||||
| Total equity | 3,250,833 | 2,286,213 | |||||
| $ | 11,970,424 | $ | 12,507,790 | ||||
NON-GAAP FINANCIAL MEASURES
The Company’s results, determined in accordance with U.S. generally accepted accounting principles (“GAAP”), are referred to as “as reported” or “GAAP” results. The Company uses certain financial performance measures, both internally and externally, that are not in conformity with GAAP (referred to as “non-GAAP financial measures”) to assess and communicate the financial performance of the Company. These non-GAAP financial measures, which are identified using the term “adjusted” (for example, “adjusted operating profit,” “adjusted net income attributable to Sonoco,” and “adjusted diluted EPS”), reflect adjustments to the Company’s GAAP operating results to exclude amounts, including the associated tax effects where applicable, relating to:
- restructuring/asset impairment charges1;
- acquisition, integration and divestiture-related costs;
- gains or losses from the divestiture of businesses and other assets;
- losses from the early extinguishment of debt;
- non-operating pension costs;
- amortization expense on acquisition intangibles;
- changes in last-in, first-out (“LIFO”) inventory reserves;
- certain income tax events and adjustments;
- derivative gains/losses;
- other non-operating income and losses; and
- certain other items, if any.
1Restructuring and restructuring-related asset impairment charges are a recurring item as the Company’s restructuring programs usually require several years to fully implement, and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, the inherent imprecision in the estimates used to recognize the impairment of assets, and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur.
The Company’s management believes the exclusion of the amounts related to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business.
In addition to the “adjusted” results described above, the Company also uses Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Net Leverage. Adjusted EBITDA is defined as net income excluding the following: interest expense; interest income; provision for income taxes; depreciation and amortization expense; non-operating pension costs; net income/loss attributable to noncontrolling interests; restructuring/asset impairment charges; changes in LIFO inventory reserves; gains/losses from the divestiture of businesses and other assets; acquisition, integration and divestiture-related costs; other income; derivative gains/losses; and other non-GAAP adjustments, if any, that may arise from time to time. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Net debt is defined as the total of the Company’s short and long-term debt less cash and cash equivalents. Net leverage is defined as Net Debt divided by Adjusted EBITDA.
Adjusted EBITDA by segment is reconciled to the closest GAAP measure of segment profitability, segment operating profit as the Company does not calculate net income by segment. Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with Accounting Standards Codification 280 - “Segment Reporting,” as prescribed by the Financial Accounting Standards Board.
Segment results, which are reviewed by the Company’s management to evaluate segment performance, do not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in LIFO inventory reserves; gains/losses from the sale of businesses or other assets; gains/losses from derivatives; or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. Accordingly, the term “segment operating profit” is defined as the segment’s portion of “operating profit” excluding those items. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and the All Other group of businesses, except for costs related to discontinued operations.
The Company’s non-GAAP financial measures are not calculated in accordance with, nor are they an alternative for, measures conforming to GAAP, and they may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles.
The Company presents these non-GAAP financial measures to provide investors with information to evaluate Sonoco’s operating results in a manner similar to how management evaluates business performance. The Company consistently applies its non-GAAP financial measures presented herein and uses them for internal planning and forecasting purposes, to evaluate its ongoing operations, and to evaluate the ultimate performance of management and each business unit against plans/forecasts. In addition, these same non-GAAP financial measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community.
Material limitations associated with the use of such measures include that they do not reflect all period costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, the calculations of these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently.
To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in evaluating the Company’s results to review both GAAP information, which includes all of the items impacting financial results, and the related non-GAAP financial measures that exclude certain elements, as described above. Further, Sonoco management does not, nor does it suggest that investors should, consider any non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever reviewing a non-GAAP financial measure, investors are encouraged to review and consider the related reconciliation to understand how it differs from the most directly comparable GAAP measure.
Free Cash Flow
The Company uses the non-GAAP financial measure of “Free Cash Flow,” which it defines as cash flow from operations minus net capital expenditures. Net capital expenditures are defined as capital expenditures minus proceeds from the disposition of capital assets. Free Cash Flow may not represent the amount of cash flow available for general discretionary use because it excludes non-discretionary expenditures, such as mandatory debt repayments and required settlements of recorded and/or contingent liabilities not reflected in cash flow from operations.
QUARTERLY RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures for the three-month periods ended June 29, 2025 and June 30, 2024.
Adjusted Operating Profit, Adjusted Income Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted Earnings Per Share (“EPS”)
| For the three-month period ended June 29, 2025 | |||||||||||||
| Dollars in thousands, except per share data | Operating Profit | Income Before Income Taxes | Provision for Income Taxes | Net Income Attributable to Sonoco | Diluted EPS | ||||||||
| As Reported (GAAP)1 | $ | 175,667 | $ | 105,881 | $ | 39,500 | $ | 493,423 | $ | 4.96 | |||
| Acquisition, integration and divestiture-related costs2 | 11,161 | 11,161 | 2,120 | 9,041 | 0.09 | ||||||||
| Changes in LIFO inventory reserves | 1,193 | 1,193 | 291 | 902 | 0.01 | ||||||||
| Amortization of acquisition intangibles | 44,193 | 44,193 | 9,401 | 34,792 | 0.35 | ||||||||
| Restructuring/Asset impairment charges | 9,752 | 9,752 | 2,197 | 7,173 | 0.07 | ||||||||
| Loss/(Gain) on divestiture of business | 2,083 | 2,083 | 514 | (422,979 | ) | (4.25 | ) | ||||||
| Non-operating pension costs | — | 2,982 | 761 | 2,221 | 0.02 | ||||||||
| Net losses from derivatives | 2,154 | 2,154 | 548 | 1,606 | 0.02 | ||||||||
| Other adjustments3 | 735 | 735 | (9,201 | ) | 9,936 | 0.10 | |||||||
| Total adjustments | 71,271 | 74,253 | 6,631 | (357,308 | ) | (3.59 | ) | ||||||
| Adjusted | $ | 246,938 | $ | 180,134 | $ | 46,131 | $ | 136,115 | $ | 1.37 | |||
| Due to rounding, individual items may not sum appropriately. | |||||||||||||
| 1 Operating profit, income before income taxes, and provision for income taxes exclude results related to discontinued operations of | |||||||||||||
| 2 Acquisition, integration and divestiture-related costs relate mostly to the Company’s December 2024 acquisition of Eviosys and the divestiture of TFP, which was completed on April 1, 2025. | |||||||||||||
| 3 Other adjustments include discrete tax items primarily related to tax rate changes on accumulated other comprehensive income (“AOCI”) and rate differences between non-U.S. jurisdictions related to acquisitions/divestitures. | |||||||||||||
| For the three-month period ended June 30, 2024 | |||||||||||||||
| Dollars in thousands, except per share data | Operating Profit | Income Before Income Taxes | Provision for Income Taxes | Net Income Attributable to Sonoco | Diluted EPS | ||||||||||
| As Reported (GAAP)1 | $ | 95,811 | $ | 71,893 | $ | 16,756 | $ | 90,811 | $ | 0.92 | |||||
| Acquisition, integration and divestiture-related costs | 22,092 | 22,092 | 5,656 | 16,563 | 0.17 | ||||||||||
| Changes in LIFO inventory reserves | (1,418 | ) | (1,418 | ) | (356 | ) | (1,062 | ) | (0.01 | ) | |||||
| Amortization of acquisition intangibles | 17,479 | 17,479 | 4,336 | 16,975 | 0.17 | ||||||||||
| Restructuring/Asset impairment charges | 17,963 | 17,963 | 2,862 | 16,116 | 0.16 | ||||||||||
| Gain on divestiture of business | (4,478 | ) | (4,478 | ) | 1,222 | (5,700 | ) | (0.06 | ) | ||||||
| Other income, net | — | (5,867 | ) | — | (5,867 | ) | (0.06 | ) | |||||||
| Non-operating pension costs | — | 4,170 | 1,032 | 3,138 | 0.03 | ||||||||||
| Net gains from derivatives | (3,485 | ) | (3,485 | ) | (876 | ) | (2,609 | ) | (0.03 | ) | |||||
| Other adjustments | (2,019 | ) | (1,598 | ) | (20 | ) | (1,608 | ) | (0.01 | ) | |||||
| Total adjustments | 46,134 | 44,858 | 13,856 | 35,946 | 0.36 | ||||||||||
| Adjusted | $ | 141,945 | $ | 116,751 | $ | 30,612 | $ | 126,757 | $ | 1.28 | |||||
| Due to rounding, individual items may not sum appropriately. | |||||||||||||||
1 Operating profit, income before income taxes, and provision for income taxes exclude results related to discontinued operations of
| Adjusted EBITDA1 | ||||||
| Three Months Ended | ||||||
| Dollars in thousands | June 29, 2025 | June 30, 2024 | ||||
| Net income attributable to Sonoco | $ | 493,423 | $ | 90,811 | ||
| Adjustments: | ||||||
| Interest expense | 64,367 | 29,640 | ||||
| Interest income | (4,122 | ) | (3,555 | ) | ||
| Provision for income taxes | 240,725 | 27,307 | ||||
| Depreciation and amortization | 129,475 | 89,486 | ||||
| Non-operating pension costs | 2,982 | 4,170 | ||||
| Net (loss)/income attributable to noncontrolling interests | (224 | ) | 140 | |||
| Restructuring/Asset impairment charges | 9,752 | 19,250 | ||||
| Changes in LIFO inventory reserves | 1,193 | (1,418 | ) | |||
| Gain on divestiture of business | (623,690 | ) | (4,478 | ) | ||
| Acquisition, integration and divestiture-related costs | 11,161 | 22,269 | ||||
| Other income, net | — | (5,867 | ) | |||
| Net losses/(gains) from derivatives | 2,154 | (3,485 | ) | |||
| Other non-GAAP adjustments | 735 | (2,056 | ) | |||
| Adjusted EBITDA | $ | 327,931 | $ | 262,214 | ||
1Adjusted EBITDA is calculated on a total Company basis, including both continuing operations and discontinued operations.
| Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation | |||||||||||||||
| For the Three Months Ended June 29, 2025 | |||||||||||||||
| Excludes results of discontinued operations | |||||||||||||||
| Dollars in thousands | Consumer | Industrial | All Other | Corporate | Total | ||||||||||
| Segment and Total Operating Profit | $ | 160,353 | $ | 81,231 | $ | 13,109 | $ | (79,026 | ) | $ | 175,667 | ||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization1 | 52,801 | 29,838 | 2,643 | 44,193 | 129,475 | ||||||||||
| Other expense2 | — | — | — | (6,559 | ) | (6,559 | ) | ||||||||
| Equity in earnings of affiliates, net of tax | 170 | 2,100 | — | — | 2,270 | ||||||||||
| Restructuring/Asset impairment charges3 | — | — | — | 9,752 | 9,752 | ||||||||||
| Changes in LIFO inventory reserves4 | — | — | — | 1,193 | 1,193 | ||||||||||
| Acquisition, integration and divestiture-related costs5 | — | — | — | 11,161 | 11,161 | ||||||||||
| Loss on divestiture of business6 | — | — | — | 2,083 | 2,083 | ||||||||||
| Net loss from derivatives7 | — | — | — | 2,154 | 2,154 | ||||||||||
| Other non-GAAP adjustments | — | — | — | 735 | 735 | ||||||||||
| Segment Adjusted EBITDA | $ | 213,324 | $ | 113,169 | $ | 15,752 | $ | (14,314 | ) | $ | 327,931 | ||||
| Net Sales | $ | 1,227,033 | $ | 588,239 | $ | 95,169 | |||||||||
| Segment Operating Profit Margin | 13.1 | % | 13.8 | % | 13.8 | % | |||||||||
| Segment Adjusted EBITDA Margin | 17.4 | % | 19.2 | % | 16.6 | % | |||||||||
1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of
2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle primarily within the Consumer segment.
3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of
4Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of
5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of
6Included in Corporate is a
7Included in Corporate are net losses from derivatives associated with the Consumer segment of
| Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation | |||||||||||||||
| For the Three Months Ended June 30, 2024 | |||||||||||||||
| Excludes results of discontinued operations | |||||||||||||||
| Dollars in thousands | Consumer | Industrial | All Other | Corporate | Total | ||||||||||
| Segment and Total Operating Profit | $ | 73,756 | $ | 66,958 | $ | 13,865 | $ | (58,768 | ) | $ | 95,811 | ||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization1 | 25,232 | 28,641 | 2,717 | 17,479 | 74,069 | ||||||||||
| Equity in earnings of affiliates, net of tax | 35 | 2,239 | — | — | 2,274 | ||||||||||
| Restructuring/Asset impairment charges2 | — | — | — | 17,963 | 17,963 | ||||||||||
| Changes in LIFO inventory reserves3 | — | — | — | (1,418 | ) | (1,418 | ) | ||||||||
| Acquisition, integration and divestiture-related costs4 | — | — | — | 22,092 | 22,092 | ||||||||||
| Gain on divestiture of business5 | — | — | — | (4,478 | ) | (4,478 | ) | ||||||||
| Net gains from derivatives6 | — | — | — | (3,485 | ) | (3,485 | ) | ||||||||
| Other non-GAAP adjustments | — | — | — | (2,019 | ) | (2,019 | ) | ||||||||
| Segment Adjusted EBITDA | $ | 99,023 | $ | 97,838 | $ | 16,582 | $ | (12,634 | ) | $ | 200,809 | ||||
| Net Sales | $ | 583,051 | $ | 600,770 | $ | 94,980 | |||||||||
| Segment Operating Profit Margin | 12.7 | % | 11.1 | % | 14.6 | % | |||||||||
| Segment Adjusted EBITDA Margin | 17.0 | % | 16.3 | % | 17.5 | % | |||||||||
1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of
2Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of
3Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of
4Included in Corporate are acquisition, integration and divestiture-related costs associated with the Industrial segment of
5Included in Corporate are gains from the divestiture of businesses, including
6Included in Corporate are net gains from derivatives associated with the Consumer segment of
YEAR-TO-DATE RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures for the six-month period ended June 29, 2025 and June 30, 2024.
Adjusted Operating Profit, Adjusted Income Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted Earnings Per Share (“EPS”)
| For the six-month period ended June 29, 2025 | |||||||||||||||
| Dollars in thousands, except per share data | Operating Profit | Income Before Income Taxes | Provision for Income Taxes | Net Income Attributable to Sonoco | Diluted EPS | ||||||||||
| As Reported (GAAP)1 | $ | 302,527 | $ | 174,424 | $ | 60,647 | $ | 547,852 | $ | 5.51 | |||||
| Acquisition, integration and divestiture-related costs2 | 38,427 | 38,427 | 8,757 | 39,336 | 0.40 | ||||||||||
| Changes in LIFO inventory reserves | 1,755 | 1,755 | 433 | 1,322 | 0.01 | ||||||||||
| Amortization of acquisition intangibles | 86,154 | 86,154 | 19,005 | 66,936 | 0.67 | ||||||||||
| Restructuring/Asset impairment charges | 23,333 | 23,333 | 5,397 | 17,888 | 0.18 | ||||||||||
| Loss/(Gain) on divestiture of business3 | 6,266 | 6,266 | 886 | (419,168 | ) | (4.21 | ) | ||||||||
| Non-operating pension costs | — | 6,103 | 1,559 | 4,544 | 0.05 | ||||||||||
| Net gains from derivatives | (795 | ) | (795 | ) | (196 | ) | (599 | ) | (0.01 | ) | |||||
| Other adjustments4 | 1,994 | 1,994 | (9,804 | ) | 14,844 | 0.14 | |||||||||
| Total adjustments | 157,134 | 163,237 | 26,037 | (274,897 | ) | (2.77 | ) | ||||||||
| Adjusted | $ | 459,661 | $ | 337,661 | $ | 86,684 | $ | 272,955 | $ | 2.74 | |||||
| Due to rounding, individual items may not sum appropriately. | |||||||||||||||
| 1 Operating profit, income before income taxes, and provision for income taxes exclude results related to discontinued operations of | |||||||||||||||
| 2 Acquisition, integration and divestiture related costs relate mostly to the Company’s December 2024 acquisition of Eviosys and April 2025 divestiture of TFP. | |||||||||||||||
| 3 Loss/(gain) on divestiture of business primarily consists of the gain on the sale of the Company’s Thermoformed and Flexibles Packaging business, included in “Net income from discontinued operations” in the Company’s Condensed Consolidated Statements of Income. | |||||||||||||||
| 4 Other adjustments include discrete tax items primarily related to tax rate changes on AOCI and rate differences between non-U.S. jurisdictions related to acquisitions/divestitures. | |||||||||||||||
| For the six-month period ended June 30, 2024 | |||||||||||||||
| Dollars in thousands, except per share data | Operating Profit | Income Before Income Taxes | Provision for Income Taxes | Net Income Attributable to Sonoco | Diluted EPS | ||||||||||
| As Reported (GAAP) 1 | $ | 168,383 | $ | 114,139 | $ | 24,627 | $ | 155,988 | $ | 1.57 | |||||
| Acquisition, integration and divestiture-related costs | 27,596 | 27,596 | 7,064 | 20,772 | 0.21 | ||||||||||
| Changes in LIFO inventory reserves | (987 | ) | (987 | ) | (248 | ) | (739 | ) | (0.01 | ) | |||||
| Amortization of acquisition intangibles | 35,373 | 35,373 | 8,703 | 34,342 | 0.35 | ||||||||||
| Restructuring/Asset impairment charges | 48,973 | 48,973 | 9,841 | 40,702 | 0.41 | ||||||||||
| Gain on divestiture of business | (4,478 | ) | (4,478 | ) | 1,222 | (5,700 | ) | (0.06 | ) | ||||||
| Other income, net | — | (5,867 | ) | — | (5,867 | ) | (0.06 | ) | |||||||
| Non-operating pension costs | — | 7,465 | 1,855 | 5,610 | 0.06 | ||||||||||
| Net gains from derivatives | (3,771 | ) | (3,771 | ) | (948 | ) | (2,823 | ) | (0.03 | ) | |||||
| Other adjustments2 | 1,304 | 1,726 | 5,635 | (4,035 | ) | (0.04 | ) | ||||||||
| Total adjustments | 104,010 | 106,030 | 33,124 | 82,262 | 0.83 | ||||||||||
| Adjusted | $ | 272,393 | $ | 220,169 | $ | 57,751 | $ | 238,250 | $ | 2.40 | |||||
| Due to rounding, individual items may not sum appropriately. | |||||||||||||||
| 1 Operating profit, income before income taxes, and provision for income taxes exclude results related to discontinued operations of | |||||||||||||||
| 2 Other adjustments includes discrete tax items primarily related to a | |||||||||||||||
| Adjusted EBITDA1 | ||||||
| Six Months Ended | ||||||
| Dollars in thousands | June 29, 2025 | June 30, 2024 | ||||
| Net income attributable to Sonoco | $ | 547,852 | $ | 155,988 | ||
| Adjustments: | ||||||
| Interest expense | 145,305 | 60,860 | ||||
| Interest income | (11,751 | ) | (7,113 | ) | ||
| Provision for income taxes | 269,679 | 44,667 | ||||
| Depreciation and amortization | 250,967 | 180,045 | ||||
| Non-operating pension costs | 6,103 | 7,465 | ||||
| Net (income)/loss attributable to noncontrolling interests | (164 | ) | 236 | |||
| Restructuring/Asset impairment charges | 23,759 | 50,868 | ||||
| Changes in LIFO inventory reserves | 1,755 | (987 | ) | |||
| Gain on divestiture of business | (619,507 | ) | (4,478 | ) | ||
| Acquisition, integration and divestiture-related costs | 51,103 | 27,930 | ||||
| Other income, net | — | (5,867 | ) | |||
| Net gains from derivatives | (795 | ) | (3,771 | ) | ||
| Other non-GAAP adjustments | 1,381 | 1,124 | ||||
| Adjusted EBITDA | $ | 665,687 | $ | 506,967 | ||
| Net Sales | $ | 3,619,669 | $ | 2,587,437 | ||
| Net sales related to discontinued operations | $ | 320,678 | $ | 673,585 | ||
1Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.
The following tables reconcile segment operating profit, the closest GAAP measure of profitability, to segment adjusted EBITDA.
| Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation | |||||||||||||||
| For the Six Months Ended June 29, 2025 | |||||||||||||||
| Excludes results of discontinued operations | |||||||||||||||
| Dollars in thousands | Consumer | Industrial | All Other | Corporate | Total | ||||||||||
| Segment and Total Operating Profit | $ | 301,124 | $ | 152,355 | $ | 25,035 | $ | (175,987 | ) | $ | 302,527 | ||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization1 | 101,756 | 58,171 | 5,197 | 86,154 | 251,278 | ||||||||||
| Other expense2 | — | — | — | (13,076 | ) | (13,076 | ) | ||||||||
| Equity in earnings of affiliates, net of tax | 119 | 4,072 | — | — | 4,191 | ||||||||||
| Restructuring/Asset impairment charges3 | — | — | — | 23,333 | 23,333 | ||||||||||
| Changes in LIFO inventory reserves4 | — | — | — | 1,755 | 1,755 | ||||||||||
| Acquisition, integration and divestiture-related costs5 | — | — | — | 38,427 | 38,427 | ||||||||||
| Loss on divestiture of business6 | — | — | — | 6,266 | 6,266 | ||||||||||
| Net gains from derivatives7 | — | — | — | (795 | ) | (795 | ) | ||||||||
| Other non-GAAP adjustments | — | — | — | 1,994 | 1,994 | ||||||||||
| Segment Adjusted EBITDA | $ | 402,999 | $ | 214,598 | $ | 30,232 | $ | (31,929 | ) | $ | 615,900 | ||||
| Net Sales | $ | 2,293,626 | $ | 1,145,948 | $ | 180,095 | |||||||||
| Segment Operating Profit Margin | 13.1 | % | 13.3 | % | 13.9 | % | |||||||||
| Segment Adjusted EBITDA Margin | 17.6 | % | 18.7 | % | 16.8 | % | |||||||||
1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of
2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle primarily within the Consumer segment.
3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of
4Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of
5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of
6Included in Corporate are net losses on the divestitures of businesses associated with the Industrial segment of
7Included in Corporate are net gains from derivatives associated with the Consumer segment of
| Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation | |||||||||||||||
| For the Six Months Ended June 30, 2024 | |||||||||||||||
| Excludes results of discontinued operations | |||||||||||||||
| Dollars in thousands | Consumer | Industrial | All Other | Corporate | Total | ||||||||||
| Segment and Total Operating Profit | $ | 132,323 | $ | 132,802 | $ | 30,990 | $ | (127,732 | ) | $ | 168,383 | ||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization1 | 50,129 | 57,144 | 6,369 | 35,373 | 149,015 | ||||||||||
| Equity in earnings of affiliates, net of tax | 47 | 3,364 | — | — | 3,411 | ||||||||||
| Restructuring/Asset impairment charges2 | — | — | — | 48,973 | 48,973 | ||||||||||
| Changes in LIFO inventory reserves3 | — | — | — | (987 | ) | (987 | ) | ||||||||
| Acquisition, integration and divestiture-related costs4 | — | — | — | 27,596 | 27,596 | ||||||||||
| Gain on divestiture of business5 | — | — | — | (4,478 | ) | (4,478 | ) | ||||||||
| Net gains from derivatives6 | — | — | — | (3,771 | ) | (3,771 | ) | ||||||||
| Other non-GAAP adjustments | — | — | — | 1,304 | 1,304 | ||||||||||
| Segment Adjusted EBITDA | $ | 182,499 | $ | 193,310 | $ | 37,359 | $ | (23,722 | ) | $ | 389,446 | ||||
| Net Sales | $ | 1,164,721 | $ | 1,193,830 | $ | 228,886 | |||||||||
| Segment Operating Profit Margin | 11.4 | % | 11.1 | % | 13.5 | % | |||||||||
| Segment Adjusted EBITDA Margin | 15.7 | % | 16.2 | % | 16.3 | % | |||||||||
1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of
2Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of
3Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of
4Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of
5Included in Corporate are gains from the divestiture of businesses, including
6Included in Corporate are net gains from derivatives associated with the Consumer segment of
Free Cash Flow
| Six Months Ended | |||||||
| FREE CASH FLOW | June 29, 2025 | June 30, 2024 | |||||
| Net cash (used)/provided by operating activities | $ | (14,653 | ) | $ | 275,489 | ||
| Purchase of property, plant and equipment, net | (186,393 | ) | (179,361 | ) | |||
| Free Cash Flow | $ | (201,046 | ) | $ | 96,128 | ||
FAQ
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