Sonoco reports 57% revenue surge in Q3 2025, driven by acquisitions, strong packaging demand

USA – Sonoco Products Company has reported a 57% year-over-year increase in revenue for the third quarter of 2025, reaching US$2.1 billion, fueled largely by its recent acquisition of Metal Packaging EMEA and improved price–cost management across key business units.

The South Carolina–based global packaging leader posted net income of US$122.9 million, more than doubling the US$50.9 million recorded in the same period last year, a 142% increase.

Adjusted EBITDA rose 37% to US$386 million, while adjusted diluted earnings per share (EPS) climbed 29% to US$1.92.

CEO Howard Coker said the quarter reflected “record top-line and bottom-line performance along with margin expansion despite challenging market conditions and higher-than-expected interest costs.”

The company’s Consumer Packaging segment was the key growth driver, reporting a 117% surge in sales following the integration of Metal Packaging EMEA.

The acquisition not only boosted Sonoco’s footprint in metal packaging for food and beverage markets but also supported margin improvement amid strong pricing and favorable foreign exchange dynamics.

Meanwhile, the Industrial Paper Packaging segment reported flat sales at US$585 million, as volume declines and the sale of two Chinese facilities offset price gains.

Nonetheless, profitability improved, with the operating margin rising to 15% and adjusted EBITDA margin to 21%, supported by productivity gains and pricing recovery efforts.

Cash flow from operations jumped 80% to US$292 million in the quarter, benefiting from tighter working capital management.

Year-to-date, operating cash flow totaled US$277 million, generating free cash flow of US$29 million.

The company revised its full-year 2025 guidance, narrowing adjusted EPS to between US$5.65 and US$5.75, down from prior expectations of around US$6.00.

Adjusted EBITDA guidance remains steady at US$1.30–1.35 billion, while cash flow projections were reduced to US$700–750 million from approximately US$800 million, reflecting higher financing costs and investment activity.

In a related move, Sonoco announced plans to divest its ThermoSafe temperature-assurance packaging business for up to US$725 million, with proceeds earmarked for debt reduction and balance sheet strengthening.

The company’s results reinforce its position as one of the world’s largest diversified packaging manufacturers, leveraging acquisitions and innovation to navigate inflationary pressures and evolving global demand for sustainable packaging solutions.

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