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• Net Sales: Increased 31% to $1.7 billion.

• Adjusted EBITDA: Up 38% to $338 million; margin improved 170 basis points to 16.6%.

• Adjusted Earnings Per Share (EPS): $1.38, a 23% increase year-over-year.

• Consumer Segment Adjusted EBITDA: Grew 127% year-over-year.

• Industrial Segment Sales: Decreased 6% to $558 million.

• Industrial Segment Adjusted EBITDA: Increased 6% to $101 million.

• Debt Reduction: Net leverage reduced to under 4 times net debt to adjusted EBITDA.

• Full Year Guidance: Adjusted EPS expected between $6 to $6.20; operating cash flow projected between $800 million and $900 million.

• Free Cash Flow: Projected between $50 million to $550 million.

• Divestiture Proceeds: Approximately $1.56 billion in after-tax proceeds used to reduce debt.

• Global Metal Packaging Sales: Tracking at expectations with adjusted EBITDA margins near 16%.

• Warning! GuruFocus has detected 8 Warning Signs with SON.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sonoco Products Co (NYSE:SON) achieved record top line and adjusted EBITDA performance, with net sales growing by 31% and adjusted EBITDA up by 38%.

• The Consumer Packaging segment saw a 127% growth in adjusted EBITDA, driven by the Eviosys acquisition and strong volume mix from legacy metal and rigid paper can businesses.

• The company completed the sale of its thermoform and flexibles business, receiving approximately $1.8 billion in cash, which was used to significantly reduce debt.

• Sonoco Products Co (NYSE:SON) is on track to achieve approximately $40 million in synergy savings in 2025 from the integration of Eviosys, with a two-year target of $100 million.

• The US metal packaging business experienced strong year-over-year results, with a 10% organic volume mix improvement, driven by growth in aerosols and food cans.

Negative Points

• Higher-than-expected interest expenses, taxes, and negative currency translation impacted adjusted earnings, which were up by 23%.

• Volume in the Industrial segment was down low single digits, with flat results in South America offset by declines in other markets.

• The European metal packaging business faced slower market conditions, with can volumes reflecting a decline, although new customer wins are expected to benefit future performance.

• The Industrial segment saw a 6% decrease in sales, impacted by lower volumes, the planned exit from China, and unfavorable currency translation.

• The company anticipates headwinds from a higher effective tax rate and softness in the industrial volume mix, although these are expected to be offset by favorable price/cost dynamics.