Sonoco Reports Second Quarter 2025 Results

Core Viewpoint - Sonoco Products Company reported strong financial results for the second quarter of 2025, with significant increases in net sales and net income, primarily driven by acquisitions and operational efficiencies [5][10][19]. Financial Performance - Consolidated net sales reached $1.91 billion, a 49% increase from the prior year, largely due to acquisitions [4][5]. - GAAP net income attributable to Sonoco was $493 million, up 443% from $91 million in the same period in 2024 [4][5]. - Diluted earnings per share (EPS) increased to $4.96, a 439% rise compared to $0.92 in the previous year [4][5]. - Adjusted operating profit for the quarter was $247 million, a 74% increase year-over-year [4][5]. - Adjusted EBITDA was $328 million, reflecting a 25% increase from the prior year [4][5]. Segment Performance - Consumer Packaging segment net sales grew by 110% to $1.23 billion, driven by the acquisition of Metal Packaging EMEA and strong performance in the U.S. [9][11]. - Industrial Paper Packaging segment net sales decreased by 2% to $588 million, impacted by volume declines [12][16]. - The Consumer Packaging segment achieved an adjusted EBITDA margin of 17%, while the Industrial segment's adjusted EBITDA margin increased to 19% [9][12]. Cash Flow and Debt Management - Operating cash flow for the second quarter was $193 million, with a year-to-date outflow of $15 million [5][18]. - Total debt was reduced by approximately $1.7 billion during the quarter, primarily through divestiture proceeds [5][18]. - The company maintained available liquidity of $1.225 billion, consisting of cash and borrowing capacity [18]. Guidance and Outlook - Sonoco expects continued strong performance in the Consumer Packaging segment for the second half of 2025, with adjusted EBITDA guidance set between $1.3 billion to $1.4 billion [5][19]. - The company anticipates adjusted diluted EPS to target approximately $6.00 for the full year [5][19].