Sonoco Reports Strong FY2025 Results, Completes Portfolio Transformation and Targets 20% Earnings Growth in 2026

Sonoco (NYSE: SON), a global leader in sustainable packaging, reported strong financial results for the full year 2025, highlighting significant portfolio transformation, improved profitability, and a strengthened balance sheet.

The company posted net sales of $7.8 billion, with revenue from continuing operations reaching $7.5 billion, up 42% year-over-year. Adjusted EBITDA rose 28% to $1.324 billion, with margins expanding to 16.9%, while adjusted earnings per share increased 17% to $5.71.

Transformation and Strategic Milestones

In 2025, Sonoco completed a multi-year transformation to simplify its portfolio and focus on core packaging businesses. The company reduced its operations from approximately 20 business units to two core segments: Consumer Packaging and Industrial Paper Packaging.

As part of this strategy, Sonoco:

• Divested its Thermoformed and Flexibles Packaging (TFP) and Trident businesses for ~$1.8 billion

• Sold its ThermoSafe business for ~$0.7 billion

• Reduced total debt by approximately 40%, or $2.7 billion

These actions significantly strengthened the balance sheet and improved financial flexibility.

Segment Performance

• Consumer Packaging (≈67% of sales): Delivered strong growth driven by metal packaging and rigid paper containers, supported by the integration of Eviosys (acquired in December 2024).

• Industrial Paper Packaging (≈33% of sales): Generated $2.3 billion in revenue, supported by a vertically integrated recycled paperboard platform and growing demand in wire, cable, and infrastructure markets.

Profitability and Cash Flow

GAAP operating profit surged to $1.018 billion (vs. $327 million in 2024), largely driven by gains from divestitures and acquisitions. Operating cash flow reached $690 million, or $906 million on a normalized basis, demonstrating strong cash generation capabilities.

Capital Allocation and Shareholder Returns

Sonoco continued its long-standing commitment to shareholders, returning approximately $1.2 billion through dividends and share repurchases since 2020, while maintaining its 100-year track record of dividend payments.

Sustainability and Energy Initiatives

During the year, Sonoco advanced its sustainability agenda by:

• Signing a 15-year virtual power purchase agreement (VPPA) for 140 MW of renewable energy from the Big Sampson Wind Project

• Targeting a 25% reduction in Scope 1 and 2 emissions by 2030

• Establishing a Global Energy Council to drive energy efficiency and emissions reduction initiatives

2026 Outlook

Looking ahead, Sonoco is targeting:

• ~20% growth in adjusted earnings in 2026

• Implementation of a multi-year profitability improvement plan focused on cost savings, operational efficiency, and structural optimization

• Continued integration and simplification of its global packaging operations

Management expressed confidence in the company’s ability to deliver consistent earnings growth, supported by a streamlined portfolio, strong market positions, and disciplined capital allocation.

Management Commentary

CEO R. Howard Coker stated that the company now has “clarity around our portfolio, our strategy and our ability to execute,” positioning Sonoco for sustained long-term value creation.