Sonoco Forges New Path with Major Portfolio Overhaul, Reports Surging Profits

HARTSVILLE, S.C. – February 16, 2026 – Sonoco Products Company (NYSE: SON) today announced robust fourth-quarter and full-year 2025 financial results, capping a landmark year of strategic transformation that saw the packaging giant divest non-core businesses, integrate a major European acquisition, and slash its net debt by nearly 40%.

The Hartsville-based company reported a 29.7% increase in fourth-quarter net sales to $1.8 billion, a surge largely attributed to its recent acquisition of Metal Packaging EMEA (Eviosys). The bottom line showed an even more dramatic turnaround, with GAAP net income attributable to Sonoco reaching $332.2 million, or $3.33 per diluted share. This stands in stark contrast to the loss of $43.0 million, or $(0.44) per share, reported in the same period of 2024, with the gain primarily fueled by the successful sale of a business unit.

“Our Sonoco team executed well despite a difficult macroeconomic environment, delivering strong operating results, reducing net debt by approximately 40% year-over-year and lowering the Company’s net leverage ratio to approximately 3.0x,” said Howard Coker, President and Chief Executive Officer, in a statement. He noted the company had "substantially concluded" its portfolio transformation.

A Year of Strategic Transformation

Sonoco's impressive 2025 performance was the culmination of a deliberate and aggressive strategy to reshape its business portfolio. The company focused on shedding non-core assets to concentrate on its primary strengths in metal and paper packaging, using the proceeds to fortify its balance sheet.

A key move was the December 2024 acquisition of Eviosys, a leading European metal packaging manufacturer, for approximately $3.9 billion. This acquisition significantly expanded Sonoco's global footprint in metal food and aerosol cans, building on its 2022 purchase of Ball Metalpack. The integration of Eviosys, which operates 44 facilities across 17 countries, is already paying dividends, contributing heavily to the year's revenue growth. The company anticipates generating over $100 million in synergies from the deal within two years through supply chain optimization and other efficiencies.

To finance this expansion and streamline operations, Sonoco executed two major divestitures. In April 2025, it completed the sale of its Thermoformed and Flexibles Packaging (TFP) business to TOPPAN Holdings Inc. for roughly $1.8 billion. This was followed by the November sale of its ThermoSafe temperature-assured packaging unit to private equity firm Arsenal Capital Partners for $656 million in gross cash proceeds at closing.

Together, these strategic sales generated significant cash, which was immediately deployed to pay down debt. For the full year, Sonoco reduced its net debt by a staggering $2.7 billion, a critical step that strengthened its financial foundation and provided greater flexibility for future investments.

Navigating an Uncertain Horizon

Despite the strong results, Sonoco's leadership remains cautious, projecting an "uncertain market environment near term." The global packaging industry faces a complex mix of challenges, including volatile raw material costs for paper and metal, persistent supply chain pressures, and shifting consumer spending habits amid affordability concerns.

In response, the company has unveiled a "profitability performance plan" aimed at driving significant cost savings over the next three years through operational improvements and commercial excellence. This proactive stance is reflected in its confident 2026 guidance. Sonoco is targeting full-year adjusted diluted earnings per share of $5.80 to $6.20 and adjusted EBITDA of $1.25 billion to $1.35 billion. Excluding the results from the divested businesses, this represents a targeted 20% improvement in adjusted earnings.

"Excluding results from divested businesses in 2025, we are targeting a 20% improvement in adjusted earnings in 2026," stated Paul Joachimczyk, Sonoco’s Chief Financial Officer.

This outlook positions Sonoco competitively. Wall Street analysts have largely adopted a "moderate buy" or "hold" stance, acknowledging the company's resilient new business mix focused on consumer staples while watching for potential impacts from input costs. Other industry giants, such as Amcor and the newly merging WestRock and Smurfit Kappa, are also adapting their strategies to navigate similar economic headwinds and capitalize on long-term trends.

A Simplified Future Built on Sustainability

A cornerstone of Sonoco's new strategy is a simplified operating structure. Beginning in 2026, the company will report its results in just two segments: Consumer Packaging and Industrial Paper Packaging. The industrial plastics business, previously reported under "All Other," will be absorbed into the Industrial segment. This move is designed to create a more efficient operating model, enhance transparency for investors, and allow teams to be more agile in the solutions they offer customers.

This structural simplification directly supports Sonoco's guiding purpose of "Better Packaging. Better Life." and its deep commitment to sustainability. By focusing on its core paper and metal packaging businesses, the company can better direct capital toward innovation in sustainable solutions. Its EnviroSense initiative is a testament to this, promoting packaging that is optimized for product-to-package ratio, contains higher recycled content, and is more easily recyclable or compostable.

The company is a major consumer of recovered fiber, producing over 2 million tons of uncoated recycled paperboard annually. Recent innovations include the Ecopeel metal can, which reduces raw material use and CO2 emissions by up to 20%. This focus is critical in a market where sustainability is no longer a niche but a primary driver of consumer choice and regulatory action. Competitors like Sealed Air and WestRock have also set aggressive targets, such as making 100% of their products reusable, recyclable, or compostable by 2025, turning the sustainable packaging space into a key competitive arena.

As Coker concluded in his statement, Sonoco's transformation has built a new foundation. "We believe our foundation has the potential to deliver improved financial performance in 2026 and beyond," he said, emphasizing the company's ability to drive growth and expand margins while navigating market uncertainties.