Sonoco Reports Fourth Quarter and Full-Year 2025 Results, Completes Portfolio Transformation and Provides 2026 Outlook

Hartsville, S.C., February 16, 2026 – Sonoco Products Company (NYSE: SON), a global leader in high-value sustainable metal and paper consumer and industrial packaging, today reported financial results for the fourth quarter and full year ended December 31, 2025, highlighting significant earnings growth, major portfolio transformation milestones and substantial debt reduction.

Fourth quarter net sales increased 29.7% year-over-year to $1.8 billion, primarily driven by acquisition activity, including the addition of Metal Packaging EMEA following the December 2024 acquisition of Eviosys. For the quarter, the Company reported GAAP net income attributable to Sonoco of $332.2 million, compared to a loss of $(43.0) million in the same period last year. GAAP operating profit rose to $520.2 million from $56.1 million in the prior-year quarter, and diluted earnings per share were $3.33 compared to $(0.44) in fourth quarter 2024.

On an adjusted basis, fourth quarter net income attributable to Sonoco increased 5.1% to $104.7 million, while adjusted diluted earnings per share rose to $1.05. Adjusted operating profit grew 47.1% year-over-year to $187 million, and adjusted EBITDA increased 10.2% to $272 million.

For the full year 2025, net sales totaled $7.5 billion, up 41.7% from 2024. GAAP net income attributable to Sonoco was $1.0 billion, compared to $164 million in the prior year, while adjusted EPS increased 16.8% to $5.71. Adjusted EBITDA for the year rose 27.9% to $1.324 billion.

Howard Coker, President and Chief Executive Officer, said, “Our Sonoco team executed well despite a difficult macroeconomic environment, delivering strong operating results, reducing net debt by approximately 40% year-over-year and lowering the Company’s net leverage ratio to approximately 3.0x. In addition, we substantially concluded our portfolio transformation following the successful divestiture of ThermoSafe and further simplified our Consumer Packaging segment by consolidating our global Metal Packaging and Rigid Paper Containers businesses into a single integrated structure.”

Paul Joachimczyk, Chief Financial Officer, added, “Our Consumer Packaging segment achieved record fourth quarter sales, operating profit and adjusted EBITDA while expanding margins. The addition of Metal Packaging EMEA and strong U.S. metal packaging performance were key drivers. Our Industrial Paper Packaging segment also improved profitability and expanded margins for the ninth consecutive quarter driven by productivity improvements.”

Portfolio Transformation and Strategic Actions

During 2025, Sonoco completed significant portfolio reshaping initiatives. The Company finalized the sale of its ThermoSafe business unit on November 3, 2025, generating $656 million in gross cash proceeds. Earlier in the year, Sonoco completed the divestiture of its Thermoformed and Flexibles Packaging (TFP) business.

Proceeds from these divestitures were primarily used to strengthen the balance sheet. Sonoco reduced net debt by $965 million in the fourth quarter and by $2.7 billion for the full year, ending 2025 with net debt of $3.9 billion and a net leverage ratio of approximately 3.0x. Total liquidity at year-end stood at $1.6 billion.

Operating cash flow for 2025 was $690 million, including $196 million in one-time taxes paid on gains from the sale of the divested TFP business. Capital expenditures for the year were $297 million, compared to $378 million in 2024. Free cash flow totaled $393 million.

The Company continued its commitment to shareholder returns, paying $208 million in dividends during 2025, up from $203 million in the prior year. Dividends per common share increased to $2.11 from $2.07 in 2024.

Segment Performance

Consumer Packaging delivered fourth quarter net sales of $1.14 billion, up 62.1% year-over-year, primarily due to the inclusion of Metal Packaging EMEA and pricing actions to offset inflation and tariffs. Segment operating profit increased 77% to $117 million, while adjusted EBITDA rose 74.9% to $174 million, reflecting strong integration execution and improved margins.

Industrial Paper Packaging reported fourth quarter net sales of $568 million, relatively flat year-over-year. Segment operating profit improved 2.3% to $70 million, while adjusted EBITDA increased 1.3% to $103 million, with continued margin expansion supported by productivity initiatives.

Beginning in 2026, Sonoco will simplify its reporting structure to two segments: Consumer Packaging and Industrial Paper Packaging. The industrial plastics packaging business, previously reported within All Other, will be integrated into the Industrial Paper Packaging segment to better reflect the Company’s streamlined portfolio.

2026 Outlook

For full-year 2026, Sonoco expects:

• Net revenue of $7.25 billion to $7.75 billion

• Adjusted diluted EPS of $5.80 to $6.20

• Adjusted EBITDA of $1.25 billion to $1.35 billion

• Operating cash flow of $700 million to $800 million

Management indicated that, excluding results from divested businesses in 2025, the Company is targeting approximately 20% improvement in adjusted earnings in 2026.

The Company also announced the implementation of a multi-year profitability performance plan aimed at driving significant cost savings over the next three years through operational improvements, commercial excellence and structural transformation initiatives.

Coker concluded, “Over the past several years, we have aligned and scaled our portfolio around the strengths of Sonoco’s core metal and paper consumer and industrial packaging businesses. We believe our foundation positions us to deliver improved financial performance in 2026 and beyond, while continuing to invest in innovation, maintain a strong balance sheet and return capital to shareholders.”

About Sonoco

Founded in 1899, Sonoco is a global leader in high-value sustainable metal and paper consumer and industrial packaging. With 2025 sales of $7.5 billion, the Company has approximately 22,000 employees working in 265 operations in 37 countries, serving many of the world’s best-known brands. For more information, visit www.sonoco.com.