Core Viewpoint - Sonoco Products Company is consolidating its Metal Packaging and Rigid Paper Containers businesses into a unified structure based on two geographical segments: Consumer Packaging EMEA/APAC and the Americas [1][3]. Group 1: Business Structure and Leadership Changes - The new structure aims to create a simpler and more efficient operating model, allowing teams to be agnostic about the substrates offered to customers, which is expected to foster innovation and growth opportunities [3][12]. - Seán Cairns has been appointed as President of Consumer Packaging for EMEA/APAC, responsible for all operations in those regions [4][5]. - Ernest Haynes has been named President of Consumer Packaging for the Americas, overseeing operations in North and South America [4][9]. Group 2: Leadership Backgrounds - Seán Cairns has over 30 years of experience in packaging, previously serving as President of Global Rigid Paper Containers and has been with Sonoco since 2008 [5][6]. - Ernest Haynes has held various leadership roles since joining Sonoco in 1997, including President of Sonoco Metal Packaging NA, and has a strong focus on operational excellence and quality [9][10]. Group 3: Operational Continuity - Rodger Fuller will continue as Chief Operating Officer and will support the transition while stepping back from his interim role as CEO of Metal Packaging EMEA [11][12]. - The transition for the Consumer Packaging segment is expected to conclude in the first quarter of 2026 [12].

Quarterly Financial Review 3rd Quarter 2025 October 23, 2025 FORWARD-LOOKING STATEMENTS / NON-GAAP FINANCIAL MEASURES Statements 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 statem ...

Financial Data and Key Metrics Changes - Net sales increased by 49% to $1.9 billion, driven by the acquisition of S and P EMEA and strong volume in the U.S. business [6][22] - Adjusted EBITDA rose by 25% to $328 million, with adjusted EBITDA margin improving by 101 basis points to 17.2% [6][22] - Adjusted EPS was $1.37, reflecting a 7% year-over-year increase, impacted by higher interest expenses [21][22] Business Line Data and Key Metrics Changes - Consumer Packaging segment saw a 115% growth in adjusted EBITDA, attributed to a 10% volume mix gain in the U.S. metal business and the acquisition of EVOSA [7][23] - Industrial segment adjusted EBITDA increased by 15% to $113 million, despite a 2% decline in sales to $588 million due to lower volumes [24][25] - All Other segment sales were flat at $95 million, with adjusted EBITDA declining by 8% [26] Market Data and Key Metrics Changes - EMEA sales were impacted by a delay in the European vegetable packaging season, with approximately 40% of sales being seasonal [15][16] - Demand for pet food and certain premium food categories remained resilient despite macroeconomic pressures [16] - The company expects a solid vegetable harvest in the third quarter, which is typically the strongest quarter [16] Company Strategy and Development Direction - The company is focused on businesses where it can leverage advanced material science and technology to drive competitive advantage [9][10] - Recent divestitures, including Thermoform and Flexible Packaging, are aimed at reallocating capital to core businesses [10][11] - The company is targeting $100 million in cost savings through synergies from the S and P EMEA acquisition by 2026 [12][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged global macroeconomic pressures affecting consumer and industrial demand, but remains optimistic about strong performance in the Consumer segment [6][28] - The company is maintaining its full-year guidance for net sales between $7.75 billion and $8 billion, with adjusted EBITDA guidance of $1.3 billion to $1.4 billion [28][29] - Management is focused on controlling costs and reducing leverage while creating long-term value for shareholders [36] Other Important Information - The company has invested $188 million in capital for the first half of 2025, with expectations to reach $360 million by year-end [30] - The integration of S and P EMEA is progressing well, with projected synergies of $40 million to $50 million by the end of the year [12][19] - The company is preparing for the sale of ThermoSafe, with expectations to use proceeds to further reduce net leverage [11][12] Q&A Session Summary Question: Can you discuss the volume run rate across major businesses and expectations for SMT EMEA? - Management indicated slight volume declines in Q2 but expects mid to upper single-digit increases in Q3 due to a late start in the vegetable harvest [41][48] Question: What are the reasons for the relatively light incremental margin in the consumer segment? - Management attributed the light margin to seasonal mix impacts and noted that the business is performing well despite volume shortfalls [50][51] Question: How will stranded costs improve moving forward? - Management expects improvements in stranded costs in the second half of the year and is focused on eliminating these costs [61][63] Question: What are the expectations for EBITDA in the EVO business? - Management confirmed expectations for year-over-year EBITDA growth in the EVO business, with significant incremental business opportunities identified [68][70] Question: How are tariffs impacting the business? - Management acknowledged that tariffs are a concern but noted that they are managing the impact effectively and expect to recover costs on the P&L side [76][78] Question: Can you clarify the factors affecting revised guidance? - Management indicated that the lower EPS guidance is primarily due to higher-than-anticipated interest expenses, while revenue and EBITDA guidance remains strong [102][104]

Financial Performance - Revenue, excluding discontinued operations, increased by 31% to $1.71 billion in Q1 2025[14] - Total Adjusted EBITDA increased by 38% to $338 million, with a margin of 16.6%, up 170 bps[15, 16] - Adjusted Earnings Per Share (EPS) increased by 23% to $1.38[16] - Consumer Packaging Adjusted EBITDA increased significantly by 127%[19] - Industrial Paper Packaging Adjusted EBITDA increased by 6%[19] Strategic Actions and Outlook - The sale of TFP (likely Thermo Fisher Scientific) closed as expected for $1.8 billion, approximately 10 times TTM Adjusted EBITDA, and the $1.5 billion term loan was paid off[20] - The company reaffirms its 2025 Adjusted EBITDA guidance of $1.3 billion to $1.4 billion and Adjusted EPS guidance of $6.00 to $6.20[45] - The company is on track to achieve net leverage of 3.3x to 3.0x by the end of 2026[44] Segment Results - Consumer Packaging sales increased by 83% from $582 million in Q1 2024 to $1.066 billion in Q1 2025[30] - Industrial Paper Packaging sales decreased by 6% from $593 million in Q1 2024 to $558 million in Q1 2025[36] - All Other segment sales decreased by 36.6% from $134 million in Q1 2024 to $85 million in Q1 2025[39, 79]