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Sonoco lowers full-year guidance, notes ‘targeted restructuring’ in Mexico, Europe
Yahoo Finance· 2025-10-24 10:00
Financial Performance - Net sales for Q3 2025 reached $2.13 billion, representing a 57.3% increase year over year [1] - Consumer packaging net sales were $1.44 billion, up 117.2% year over year [1] - Industrial packaging net sales remained flat at $585 million year over year [1] - Net income increased to $123.1 million from $51.2 million in Q3 2024 [1] Business Segments - The growth in revenue was attributed to increased metal packaging sales following the acquisition of Eviosys in December 2024 and price increases to counteract tariffs and inflation [1] - In the U.S., food can volumes rose by 5%, while aerosol volumes slightly declined [1] - Total food can units increased by 3.5% year over year, with diversification efforts into pet food and seafood in Eastern Europe planned for 2026 [1] Strategic Initiatives - Sonoco is targeting $100 million in annual run rate synergies from the Eviosys acquisition by the end of 2026, with procurement synergies expected to be realized in 2026 [1] - The company is launching new all-paper cans and paper bottom cans to meet customer demand for sustainable packaging alternatives [1] - Sonoco announced the sale of its ThermoSafe temperature-assured packaging business for up to $725 million, aimed at simplifying its business structure [1][2] Outlook and Guidance - Sonoco has lowered parts of its full-year guidance due to subdued market conditions outside the U.S., with adjusted EBITDA expected between $1.3 billion and $1.35 billion [2] - Cash flows from operating activities are projected to fall between $700 million and $750 million, down from previous guidance of $800 million [2] - Revenue projections are now between $7.8 billion and $7.9 billion, with an investor day scheduled for February 17 [2]