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Sep 28
Sonoco Q3 2025 Earnings Report
Sonoco reported strong third quarter 2025 results with significant growth in net sales, GAAP net income, and adjusted EPS, primarily driven by acquisitions and improved segment performance.
Key Takeaways
Sonoco delivered a robust third quarter, with net sales surging by 57.3% to $2.1 billion, largely due to strategic acquisitions. The company reported a substantial increase in GAAP net income attributable to Sonoco, reaching $122.9 million, and adjusted diluted EPS of $1.92, up 29.3% year-over-year. Operating cash flow also saw significant improvement, reaching $292 million for the quarter.
Net sales increased by 57.3% to $2.131 billion, primarily driven by the acquisition of Eviosys and price increases.
GAAP net income attributable to Sonoco rose to $122.9 million, a 141% increase from the prior-year quarter.
Adjusted diluted EPS improved by 29.3% year-over-year to $1.92, reflecting strong operational performance.
Operating cash flow for the quarter was $292 million, an 80% increase over the prior year, driven by improved working capital.
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 adjusted its full-year adjusted diluted EPS guidance downwards due to anticipated volume weakness in the fourth quarter, particularly in its Metal Packaging and Industrial EMEA businesses. However, full-year adjusted EBITDA guidance remains substantially in line with previous expectations, and the company is implementing restructuring activities to improve efficiency and cash flow.
Positive Outlook
- Full-year adjusted EBITDA guidance of $1.30 billion to $1.35 billion is substantially in line with previous guidance.
- Expected strong cash flow generation in the fourth quarter as seasonal working capital build reverses.
- Implementation of targeted restructuring activities to better leverage market capabilities and generate strong cash flow.
- Both Consumer and Industrial businesses have solid growth funnels with new product and market launches planned in 2026 and beyond.
- The planned divestiture of the ThermoSafe unit is expected to further reduce Sonoco’s net leverage ratio and simplify its business structure.
Challenges Ahead
- Full-year adjusted diluted EPS guidance adjusted downwards to between $5.65 and $5.75 from approximately $6.00.
- Anticipated continuing volume weakness in the fourth quarter, especially from Metal Packaging and Industrial EMEA businesses.
- Difficult macroeconomic conditions are expected to persist.
- Cash flow from operating activities guidance adjusted downwards to between $700 million to $750 million from approximately $800 million.
- Higher than expected interest costs impacted performance in the third quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income