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Jun 29
Sonoco Q2 2025 Earnings Report
Sonoco reported strong financial results for the second quarter ended June 29, 2025, driven by acquisitions and improved operational performance.
Key Takeaways
Sonoco delivered a robust second quarter in 2025, with net sales increasing significantly due to acquisitions, particularly the Metal Packaging EMEA business. The company reported a substantial increase in GAAP net income and diluted EPS, largely attributable to the sale of its Thermoformed and Flexibles Packaging and global Trident businesses. Adjusted net income and adjusted EBITDA also saw healthy year-over-year growth, reflecting improved price/cost dynamics and productivity initiatives. The company successfully reduced its total debt and net debt using divestiture proceeds and operating cash flow.
Net sales grew to $1.9 billion, a 49.4% increase year-over-year, primarily driven by the acquisition of Eviosys.
GAAP net income attributable to Sonoco surged to $493 million, up 443% from the prior year, significantly boosted by the sale of the TFP business.
Adjusted diluted earnings per share increased by 7.4% to $1.37, and adjusted EBITDA rose by 25.1% to $328 million.
Total debt and net debt were reduced by approximately $1.7 billion and $1.9 billion, respectively, during the quarter, leveraging divestiture proceeds.
Sonoco
Sonoco
Sonoco Revenue by Segment
Revenue by Segment
Consumer Packaging Revenue
CapyFin.comIndustrial Paper Packaging Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Sonoco is maintaining its full-year 2025 guidance for adjusted EBITDA and has updated its expected adjusted diluted earnings per share to the lower end of previous guidance, reflecting continued confidence in its strategic trajectory despite macroeconomic uncertainties.
Positive Outlook
- Expected continued strong performance in the Consumer Packaging segment.
- U.S. Metal Packaging operations are anticipated to grow organically above industry rates due to commercial wins.
- Continued integration of the new Metal Packaging EMEA operations is projected to exceed targeted synergy savings.
- Rigid Paper Containers business is introducing new all-paper packaging for product differentiation.
- Industrial Paper Packaging segment is expected to have another strong quarter, benefiting from improved market conditions and margin expansion initiatives.
Challenges Ahead
- Global macroeconomic uncertainty may affect customers and consumers.
- Higher than expected interest costs impacted Q2 results.
- Full-year adjusted diluted EPS guidance updated to the lower end of the previous range ($6.00).
- Cash flow from operating activities guidance updated to the lower end of the previous range ($800 million).
- Need to remain flexible and focused on meeting changing customer needs while controlling costs and reducing leverage.
Revenue & Expenses
Visualization of income flow from segment revenue to net income