Sonoco Products Company (SON) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $1.8B, up 29.7% year-over-year, with operating profit up 47% and adjusted EBITDA up 10%.

• Full-year 2025 net sales were $7.52B, a 42% increase, and adjusted EPS rose 17% to $5.71.

• GAAP net income for Q4 was $332.2M, reversing a prior-year loss, driven by a gain on the sale of ThermoSafe.

• Divestiture of ThermoSafe closed, generating $656M in cash and reducing net leverage to ~3.0x from ~6.4x in 2024.

• Portfolio transformation included the divestiture of ThermoSafe and integration of Metal Packaging EMEA.

Financial highlights

• Q4 adjusted operating profit was $187M (margin 10.6%), and adjusted EBITDA was $272M (margin 15.4%).

• Full-year adjusted EBITDA was $1.32B, up 27.9% year-over-year, with margin improving by 120bps to 16.9%.

• Operating cash flow for Q4 was $413M, up 4% year-over-year; full-year operating cash flow was $690M, including $196M in one-time taxes.

• Free cash flow for 2025 was $393M, down from $456M in 2024.

• Net debt reduced by ~$2.7B year-over-year, ending with net leverage of 3.0x.

Outlook and guidance

• 2026 revenue guidance is $7.25–$7.75B, adjusted EBITDA $1.25–$1.35B, and adjusted EPS $5.80–$6.20.

• Operating cash flow for 2026 expected at $700M–$800M, including ~$100M in capital gain taxes.

• Targeting a 20% improvement in adjusted EPS versus 2025 proforma, excluding divested businesses.

• Continued focus on cost savings, operational improvement, and structural transformation.