Sonoco Reports Second Quarter 2025 Results

Sonoco Products Company (“Sonoco” or the “Company”), a global leader in high-value sustainable packaging, 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 this 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.
“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.”
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.
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About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global leader in value-added, 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.
Contact:
Roger Schrum – Media Contact – (843) 339-6018 – roger.schrum@sonoco.com
Source: Sonoco Products Company