Sonoco Q2 2025 Results: Net Income Reaches $493 Million

Sonoco reported strong performance for the second quarter of 2025, with with net income reached $ 493 million, which was over $ 91 million the previous year. The benefit includes $ 425 million in net income from its thermal and flexible packaging and trident businesses from April 2025.

Solid Growth in Core Business

In December 2024, net sales of the second quarter, inspired by the acquisition of Metal Packaging EMEA, increased to $ 1.91 billion. Adjusted EBITDA climbed to $ 328 million, 2nd quarter from 2024 to 25.1%. The adjusted net income was $ 136 million, an increase of 7.4% a year.

Consumer packaging led the results with a net turnover of $ 1.23 billion, which was more than twice the previous year. The segment adjusted EBITDA rose 115% to $ 213 million. Sales of industrial paper packaging fell slightly to $ 588 million, but adjusted EBITDA rose $ 16% to $ 113 million, with cost savings and productivity benefits supported marginal margin.

Financial Strength and Guidance

Operating cash flow for the quarter was $193 million. Sonoco used proceeds from the TFP divestiture to reduce total debt by $1.7 billion and net debt by $1.9 billion.

The company reaffirmed full-year 2025 adjusted EBITDA guidance of $1.3 billion to $1.4 billion and updated its adjusted EPS target to approximately $6.00, narrowing to the low end of its previous range.

Segment Highlights

U.S. In consumer packaging segments and EMEA, an increase in the crowd saw. Profit benefits were attributed to Eviosy's procurement and organic development in American metal packaging. The industrial part improved the 300 base point in the adjusted EBITDA margin, despite the decline in 2% sales, assisted by the procurement and production efficiency programs.

Until June 29, cash and cash pieces were $ 330 million, while the available liquidity reached $ 1,225 billion. Free cash flow for the first half of 2025 was negative $ 201 million, influenced by the needs of seasonal work capital, which Sonoko expects to turn around in the second half.

Sonoco Q2 2025 Results confirm the company's positive speed and change strategy, supported by strong development of consumer packaging, low profits and disciplined cost control.