Sonoco reported sharply improved financial results for the fourth quarter and full year 2025, supported by acquisition-driven sales growth, portfolio simplification and significant debt reduction.
Fourth-quarter net sales rose to $1.8 billion, up nearly 30% year over year, largely reflecting the integration of the Metal Packaging EMEA business following the acquisition of Eviosys. GAAP net income attributable to Sonoco reached $332 million, compared with a loss in the prior-year period, while adjusted EBITDA increased 10% to $272 million.
For the full year, Sonoco generated $7.5 billion in net sales and $1.32 billion in adjusted EBITDA. Operating cash flow totaled $690 million, despite $196 million in one-time tax payments related to divestitures.
Portfolio moves drive balance-sheet reset
A key driver of the year’s performance was Sonoco’s portfolio transformation. In November 2025, the company completed the sale of its ThermoSafe business, generating $656 million in gross proceeds. Combined with earlier divestments, the transaction enabled Sonoco to reduce net debt by $2.7 billion in 2025, lowering net leverage to approximately 3.0x adjusted EBITDA by year-end.
Chief Executive Officer Howard Coker said the company executed well in a difficult macroeconomic environment. He pointed to disciplined capital allocation, productivity gains and the simplification of the Consumer Packaging business as central to the company’s progress.
Segment performance
The Consumer Packaging segment posted record fourth-quarter results, with sales rising 62% year over year and adjusted EBITDA nearly doubling. Growth was driven by Metal Packaging EMEA, higher pricing and favorable currency effects, partly offset by softer volumes in rigid paper containers.
Industrial Paper Packaging delivered stable fourth-quarter sales and modest margin expansion, marking the ninth consecutive quarter of adjusted EBITDA margin improvement. Productivity gains and cost controls helped offset lower volumes and the impact of prior divestitures.
Simpler structure from 2026
Beginning in 2026, Sonoco will report results in two segments only—Consumer Packaging and Industrial Paper Packaging. Its remaining industrial plastics packaging activities will be folded into the Industrial segment, further simplifying reporting and management oversight.
Chief Financial Officer Paul Joachimczyk said the company is targeting a 20% improvement in adjusted earnings in 2026, excluding divested businesses. Sonoco expects adjusted EPS of $5.80 to $6.20, adjusted EBITDA of $1.25 billion to $1.35 billion, and operating cash flow of $700 million to $800 million.
Management said upcoming cost-saving initiatives, operational improvements and structural changes are expected to support margin expansion, even as market conditions remain uncertain.
Sonoco will outline its strategy and financial targets in more detail at its Investor Day in New York on February 17.
Sonoco is a global provider of sustainable metal and paper consumer and industrial packaging solutions. Headquartered in Hartsville, South Carolina, the company operates 265 facilities in 37 countries and employs approximately 22,000 people worldwide. In 2025, Sonoco reported sales of $7.5 billion, serving leading consumer and industrial brands across food, consumer goods and industrial markets.
Source: Sonoco
