Summary:
Grew fourth quarter net sales to $1.8 billion, up 29.7% from the prior-year quarter, primarily from acquisition activity
Reported fourth quarter U.S. generally accepted accounting principles ("GAAP") net income attributable to Sonoco of $332.2 million, up from a loss of $(43.0) million in the same period in 2024, GAAP operating profit of $520.2 million, up from $56.1 million in the same period in 2024, and diluted earnings/(loss) per share ("EPS") attributable to Sonoco of $3.33, up from $(0.44) in the same period in 2024, primarily due to the gain on the sale of business
Improved quarterly adjusted net income attributable to Sonoco by 5.1% year-over-year to $104.7 million, and reported adjusted diluted earnings per share of $1.05
Achieved fourth quarter adjusted operating profit of $187 million, up 47.1%, and adjusted EBITDA of $272 million, up 10.2% from the prior-year quarter
Generated $413 million and $690 million of operating cash flow in the fourth quarter and full year, respectively, which included $196 million in one-time taxes paid during the year on gains from the sale of the divested TFP business
Completed the sale of the ThermoSafe business unit ("ThermoSafe"), a leading provider of temperature-assured packaging, to Arsenal Capital Partners on November 3, 2025, and received $656 million in gross cash proceeds at closing
Reduced net debt by $965 million and $2.7 billion in the fourth quarter and full year 2025, respectively, ending the year with net leverage of approximately 3.0x. (Net debt/adjusted EBITDA)
2026 Guidance:
Targeting full-year adjusted diluted earnings per share of $5.80 to $6.20. Full-year adjusted EBITDA is expected to be $1.25 billion to $1.35 billion. Cash flows from operating activities are expected to be $700 million to $800 million.
The Company will continue to simplify its operating and reporting structure in 2026 and will only report its results in two segments, Consumer Packaging and Industrial Paper Packaging. The Company's industrial plastics packaging business, which was the only remaining business in All Other, will be included in the Industrial Paper Packaging segment. The Company believes this reporting structure appropriately represents the management of its business portfolio going forward.
*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 the Company's Thermoformed and Flexibles Packaging and global Trident businesses ("TFP"), which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale.
Fourth Quarter2025Consolidated Results
(Dollars in millions except per share data)
Three Months Ended
Twelve Months Ended
GAAP Results
December 31, 2025
December 31, 2024
Change
December 31, 2025
December 31, 2024
Change
Net sales1
$
1,768
$
1,363
29.7
%
$
7,519
$
5,305
41.7
%
Net sales related to discontinued operations
—
297
NM
321
1,291
(75.2
)%
Operating profit1
520
56
827.6
%
1,018
327
211.6
%
Operating (loss)/profit related to discontinued operations
(19
)
18
NM
644
128
403.3
%
Net income/(loss) attributable to Sonoco
332
(43
)
NM
1,003
164
511.8
%
EPS (diluted)
3.33
(0.44
)
NM
10.07
1.65
510.3
%
Three Months Ended
Twelve Months Ended
Non-GAAP Results2
December 31, 2025
December 31, 2024
Change
December 31, 2025
December 31, 2024
Change
Adjusted operating profit1
$
187
$
127
47.1
%
$
955
$
573
66.6
%
Adjusted EBITDA
272
247
10.2
%
1,324
1,035
27.9
%
Adjusted net income attributable to Sonoco
105
100
5.1
%
569
486
17.1
%
Adjusted EPS (diluted)
1.05
1.00
5.0
%
5.71
4.89
16.8
%
NM = Not Meaningful
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 GAAP financial measures later in this release.
Fourth quarter 2025 net sales of $1.8 billion reflect an increase of 29.7% 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 higher prices implemented to offset the effects of inflation and tariffs and from the favorable impact of foreign exchange rates.
GAAP operating profit for the fourth quarter increased to $520 million due to the gain on the sale of ThermoSafe, operating profit from our Metal Packaging EMEA business following the Eviosys acquisition, a positive price/cost environment, solid productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives. These positive factors were partially offset by the impact of divestitures and lower volume/mix.
Effective tax rates on GAAP income from continuing operations before income taxes and adjusted income from continuing operations before income taxes, were 24.9% and 22.5%, respectively, in the fourth quarter, compared to 36.6% and 24.8%, respectively, in the same period in 2024.
"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," said Howard Coker, President and Chief Executive Officer. "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, driven geographically, which we believe enhances our consumer go-to-market strategy, focuses our technology expertise and drives additional synergies across our global channels."
Paul Joachimczyk, Sonoco's Chief Financial Officer, added, "Our Consumer Packaging segment achieved record fourth quarter sales, operating profit and adjusted EBITDA while growing adjusted EBITDA margin by 110 basis points. The addition of Metal Packaging EMEA and strong results from our Metal Packaging U.S. business in the quarter drove the increase. Our Industrial Paper Packaging segment also slightly improved operating profit and adjusted EBITDA, while expanding operating profit and adjusted EBITDA margins for the ninth consecutive quarter driven by year-over-year productivity improvements."
"Operating cash flow for 2025 was $690 million, which included $196 million in one-time taxes paid during the year on gains from the sale of the divested TFP business."
Fourth 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
Twelve Months Ended
Consumer
December 31, 2025
December 31, 2024
Change
December 31, 2025
December 31, 2024
Change
Net sales1
$
1,142
$
705
62.1
%
$
4,874
$
2,532
92.5
%
Segment operating profit1
$
117
$
66
77.0
%
$
627
$
295
112.6
%
Segment operating profit margin1
10.2
%
9.4
%
12.9
%
11.6
%
Segment Adjusted EBITDA1, 2
$
174
$
100
74.9
%
$
837
$
405
106.8
%
Segment Adjusted EBITDA margin1, 2
15.2
%
14.1
%
17.2
%
16.0
%
Consumer segment net sales grew 62.1%, attributable to Metal Packaging EMEA following the acquisition of Eviosys, price increases implemented to offset the effects of inflation and tariffs, and the favorable impact of foreign exchange rates. These increases were partially offset by the impact of divestitures and softer volumes in the rigid paper packaging business.
Segment operating profit and segment adjusted EBITDA grew primarily as a result of profits from Metal Packaging EMEA partially offset by the softer volumes in the rigid paper packaging business.
Three Months Ended
Twelve Months Ended
Industrial
December 31, 2025
December 31, 2024
Change
December 31, 2025
December 31, 2024
Change
Net sales
$
568
$
571
—
%
$
2,299
$
2,349
(2.1
)%
Segment operating profit
$
70
$
69
2.3
%
$
312
$
272
15.0
%
Segment operating profit margin
12.4
%
12.0
%
13.6
%
11.6
%
Segment Adjusted EBITDA2
$
103
$
102
1.3
%
$
441
$
397
11.0
%
Segment Adjusted EBITDA margin2
18.2
%
17.9
%
19.2
%
16.9
%
Industrial segment net sales remained relatively flat at $568 million, as year-over-year price gains were offset by the loss of sales from the 2024 divestiture of two production facilities in China and modest volume declines across the segment.
Segment operating profit margin was 12.4%, up slightly from the prior period, and adjusted EBITDA margin increased slightly to 18.2% as productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives were only partially offset by lower volume/mix.
Three Months Ended
Twelve Months Ended
All Other
December 31, 2025
December 31, 2024
Change
December 31, 2025
December 31, 2024
Change
Net sales
$
57
$
88
(34.9
)%
$
345
$
424
(18.6
)%
Operating profit
$
7
$
5
47.6
%
$
51
$
53
(4.6
)%
Operating profit margin
13.1
%
5.8
%
14.7
%
12.6
%
Adjusted EBITDA2
$
9
$
8
10.5
%
$
60
$
65
(8.7
)%
Adjusted EBITDA margin2
15.3
%
9.0
%
17.2
%
15.4
%
Net sales declined due to the divestiture of ThermoSafe along with lower volume from industrial plastics.
Operating profit and adjusted EBITDA improved 47.6% and 10.5%, respectively, year-over-year as solid productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives offset lower volumes from industrial plastics.
The Company will continue to simplify its operating and reporting structure in 2026 and will only report its results in two segments, Consumer Packaging and Industrial Paper Packaging. The Company's industrial plastics packaging business, which was the only remaining business in All Other, will be included in the Industrial Paper Packaging segment. The Company believes this reporting structure appropriately represents the management of its business portfolio going forward.
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 were $378 million as of December 31, 2025, compared to $443 million, including discontinued operations, as of December 31, 2024, with the decrease primarily related to changes in net working capital and net debt reduction.
Total debt and net debt were $4.3 billion and $3.9 billion, respectively, as of December 31, 2025, reflecting decreases of $2.7 billion and $2.7 billion, respectively, compared to December 31, 2024, including discontinued operations. These decreases were primarily related to the repayment of borrowings under the Company's term loan facility using proceeds from the sales of TFP and ThermoSafe.
On December 31, 2025, the Company had available liquidity of $1.6 billion, comprising available borrowing capacity under its revolving credit facility of $1.3 billion and cash on hand.
Cash flow from operating activities for the period ended December 31, 2025 was an inflow of $690 million, compared to an inflow of $834 million in the same period of 2024. The main driver of the year-over-year change in operating cash flow was the increased need for working capital during the year related to Metal Packaging EMEA.
Capital expenditures, net of proceeds from sales of fixed assets, for 2025 were $297 million, compared to $378 million last year.
Free Cash Flow for 2025 was $393 million compared to $456 million 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 twelve months ended December 31, 2025 increased to $208 million compared to $203 million in the same period of the prior year.
Guidance(1)
Full-Year 2026
Net Revenue: $7.25 billion to $7.75 billion
Adjusted EPS(2): Adjusted to $5.80 to $6.20 per diluted share
Adjusted EBITDA(2): $1.25 billion to $1.35 billion
Cash flow from operating activities: $700 million to $800 million, including projected payments of taxes on gains from divestitures and restructuring costs
Commenting on Sonoco's outlook, Joachimczyk said, "Excluding results from divested businesses in 2025, we are targeting a 20% improvement in adjusted earnings in 2026. In addition to our planned growth initiatives, we are working to achieve our financial targets by implementing a profitability performance plan which is focused on driving significant costs savings over the next three years through operational improvement, commercial excellence and structural transformation."
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. As a result of this transformation, we significantly grew our top-line and bottom-line while expanding margins and generating significant normalized cash flow. We believe our foundation has the potential to deliver improved financial performance in 2026 and beyond. While we expect to face an uncertain market environment near term, we believe we can deliver on our strategic priorities by driving sustainable growth, further expanding margins and efficiently allocating capital by investing in ourselves through technology and innovation, maintaining a strong balance sheet and returning capital to shareholders."
(1)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 related to the integration of Eviosys and 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 2026 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 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 Day Conference Call WebcastThe Company is hosting an Investor Day meeting on Tuesday, February 17, 2026, at the Lotte New York Palace (455 Madison Avenue, New York, NY) starting at 8:00 a.m. Eastern Time. Management will provide prepared remarks, slide presentations and host a question-and-answer session that will review its 2025 Fourth Quarter and Full-year Results along with a discussion of strategy and financial targets. A live audio webcast of the meeting 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:
Tuesday, February 17, 2026, at 8:00 a.m. Eastern Time
AudienceDial-In:
To listen via telephone, please register in advance at:https://registrations.events/direct/Q4I122820After 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/160534306
Contact Information: Roger SchrumHead of Investor Relations and Communications[email protected] 843-339-6018
About SonocoSonoco (NYSE:SON) is a global leader in high-value sustainable metal and paper consumer and industrial packaging. With sales of $7.5 billion in 2025, the Company has approximately 22,000 employees working in 265 operations in 37 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 the World's Most Admired Companies by Fortune in 2026 as well as America's Most Trustworthy and Responsible Companies by Newsweek and USA Today's Climate Leaders in 2025. For more information on the Company, visit our website at www.sonoco.com.
Forward-looking StatementsStatements 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," "believe," "can," "continue," "continuing," "could," "deliver," "drive," "enhance," "estimate," "expect," "forecast," "focus," "future," "goal," "guidance," "improvement," "intend," "likely," "maintain," "may," "might," "ongoing," "outlook," "plan," "potential," "predict," "project," "projected," "remain," "seek," "should," "strategy," "target," "will," "would," "working," 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 2026 outlook and the anticipated drivers thereof, capital spending in 2026, cash flow in 2026, and projected payments of taxes; the Company's ability to deliver on its strategic priorities; the Company's ability to improve its competitive position and drive cost savings, including through its profitability performance plan; price/cost, customer demand and volume outlook; the effectiveness of and expected benefits from the Company's strategy and strategic initiatives, including with respect to portfolio simplification, integration and capital allocation priorities; the Company's expectations about its integrated structure to enhance its go-to-market strategy, focus its technology expertise and drive additional synergies across its global channels; the effects of the changing macroeconomic environment, including trade policies and tariffs, market conditions and interest costs 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 long-term shareholder 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; lower-than-projected financial performance of the Company's European business, including as a result of loss or reduction in business from key customers, changes in our pricing model, or adverse changes in the macroeconomic or competitive environment in European markets; risks related to the impairment of goodwill and other intangible; 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 uncertainty in the Middle East), and the Company's ability to continue 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; the impact of changing laws and regulations, in the United States, on the Company; the Company's ability to meet its environmental, sustainability and similar goals and 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
Twelve Months Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Net sales
$
1,767,976
$
1,363,276
$
7,518,753
$
5,305,365
Cost of sales
1,420,878
1,080,303
5,944,340
4,166,132
Gross profit
347,098
282,973
1,574,413
1,139,233
Selling, general and administrative expenses
213,376
220,479
862,180
723,833
Restructuring/Asset impairment (income)/charges, net
(5,506
)
10,248
66,215
65,370
Gain/(Loss) on divestiture of business and other assets
381,014
3,840
371,717
(23,452
)
Operating profit
520,242
56,086
1,017,735
326,578
Non-operating pension costs
3,058
3,431
12,215
13,842
Interest expense
51,848
53,138
233,485
172,620
Interest income
4,443
15,794
20,547
27,570
Other expense, net
(6,864
)
(110,067
)
(27,481
)
(104,200
)
Income/(Loss) from continuing operations before income taxes
462,915
(94,756
)
765,101
63,486
Provision for/(Benefit from) income taxes
115,222
(34,637
)
183,586
5,509
Income/(Loss) before equity in earnings of affiliates
347,693
(60,119
)
581,515
57,977
Equity in earnings of affiliates, net of tax
2,312
3,370
9,523
9,588
Net income/(loss) from continuing operations
350,005
(56,749
)
591,038
67,565
Net (loss)/income from discontinued operations
(17,372
)
13,256
412,348
96,375
Net income/(loss)
332,633
(43,493
)
1,003,386
163,940
Net (income)/loss from continuing operations attributable to noncontrolling interests
(392
)
579
(375
)
180
Net income from discontinued operations attributable to noncontrolling interests
—
(46
)
—
(171
)
Net income/(loss) attributable to Sonoco
$
332,241
$
(42,960
)
$
1,003,011
$
163,949
Weighted average common shares outstanding, diluted
99,729
98,700
99,571
99,290
Diluted earnings/(loss) from continuing operations per common share
$
3.50
$
(0.57
)
$
5.93
$
0.68
Diluted (loss)/earnings from discontinued operations per common share
(0.17
)
0.13
4.14
0.97
Diluted earnings/(loss) attributable to Sonoco per common share
$
3.33
$
(0.44
)
$
10.07
$
1.65
Dividends per common share
$
0.53
$
0.52
$
2.11
$
2.07
CONDENSED STATEMENTS OF INCOME FOR DISCONTINUED OPERATIONS (Unaudited)
(Dollars and shares in thousands except per share data)
Three Months Ended
Twelve Months Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Net sales
$
—
$
296,663
$
320,678
$
1,291,461
Cost of sales
—
239,769
250,854
1,037,196
Gross profit
—
56,894
69,824
