Sonoco

SON Q1 2025 Earnings

Reported Apr 29, 2025 at 4:42 PM ET · SEC Source

Q1 25 EPS

$1.38

MISS 1.89%

Est. $1.41

Q1 25 Revenue

$1.71B

MISS 16.23%

Est. $2.04B

vs S&P Since Q1 25

-18.6%

TRAILING MARKET

SON +13.7% vs S&P +32.3%

Market Reaction

Did SON Beat Earnings? Q1 2025 Results

Sonoco Products delivered a mixed first quarter for 2025, posting record net sales of $1.71 billion, up 30.6% year over year, yet falling short of the $2.04 billion consensus estimate by 16.23%, while adjusted diluted EPS of $1.38 missed the $1.41 Wa… Read more Sonoco Products delivered a mixed first quarter for 2025, posting record net sales of $1.71 billion, up 30.6% year over year, yet falling short of the $2.04 billion consensus estimate by 16.23%, while adjusted diluted EPS of $1.38 missed the $1.41 Wall Street forecast by 1.89%. The headline growth story was almost entirely written by the December 2024 acquisition of Eviosys, now rebranded Sonoco Metal Packaging EMEA, which powered the Consumer Packaging segment to an 83% surge in net sales and helped lift adjusted EBITDA 38% to a record $338 million. On a GAAP basis, however, net income slipped 16.5% to $54.4 million, weighed down by acquisition-related amortization, integration costs, and elevated interest expense. The April 1 completion of the $1.80 billion TFP business sale to TOPPAN Holdings provided meaningful debt relief, pushing net leverage below 4.0x. Management reaffirmed full-year 2025 guidance for adjusted EPS of $6.00 to $6.20 and adjusted EBITDA of $1.30 billion to $1.40 billion, projecting roughly 20% adjusted net income growth for the year.

Key Takeaways

  • Full quarter contribution from Eviosys acquisition (Metal Packaging EMEA)
  • Approximately 10% organic volume/mix growth in Metal Packaging U.S.
  • $17 million in favorable productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives
  • Favorable price/cost environment across both Consumer and Industrial segments
  • Consumer Packaging segment adjusted EBITDA margin expanded to 18% from 14% year over year
  • Industrial Paper Packaging adjusted EBITDA margin expanded approximately 200 basis points
24/7 Wall St

SON YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

SON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our first quarter results demonstrated the strength of the new Sonoco as our global team achieved record top-line and adjusted EBITDA performance, growing 31% and 38%, respectively, while adjusted earnings per share rose 23% despite higher-than-expected interest expense, taxes and the negative impact of currency exchange rates.”

— Howard Coker, Q1 2025 Earnings Press Release