Sonoco Returns to Q4 Profit, Lowers Leverage After Portfolio Overhaul

Overview

• Attributable net income reached $332.2 million in Q4 2025, reversing a $43 million loss a year earlier, with diluted EPS at $3.33 largely reflecting divestiture gains.
• Quarterly net sales rose 29.7% to $1.8 billion, as consumer segment sales jumped 62.1% on Metal Packaging EMEA growth following the Eviosys acquisition and pricing actions, while industrial sales held at $568 million.
• Sonoco closed the ThermoSafe sale for $656 million, reduced net debt by $965 million in the quarter and $2.7 billion for 2025, and ended the year at roughly 3.0x net debt to adjusted EBITDA.
• For 2026, the company guides to adjusted EPS of $5.80–$6.20, adjusted EBITDA of $1.25–$1.35 billion, and operating cash flow of $700–$800 million, following $196 million in one-time tax payments in 2025 tied to asset sales.
• The company completed its shift to two core segments and consolidated global metal packaging and rigid paper containers under one structure, maintaining a goal of roughly 200 basis points of adjusted EBITDA margin expansion by 2028 driven by $150–$200 million in savings.