Sonoco Products Company Q2 net sales rises 49.4%

Sonoco Products

23/07/2025 21:52

Overview

Sonoco Q2 net sales rise 49.4% yr/yr to $1.9 bln, in-line with analyst expectations, per LSEG data

Adjusted EPS for Q2 misses analyst expectations, per LSEG data

Co reduces total debt and net debt by $1.7 bln using divestiture proceeds and operating cash flow

Outlook

Sonoco maintains full-year adjusted EBITDA guidance of $1.3 bln to $1.4 bln

Company targets full-year adjusted EPS of approximately $6.00 or the lower end of previous guidance of $6.00 to $6.20

Sonoco expects 2025 operating cash flow around $800 mln or the lower end of previous guidance of $800 mln to $900 mln

Company anticipates "strong" Consumer Packaging segment performance in H2 2025

Result Drivers

ACQUISITIONS - Sales growth driven by acquisition of Titan Holdings I B.V. (Eviosys)

PRICE INCREASES - Implemented to offset inflation and tariffs impact, boosting sales

PRODUCTIVITY GAINS - Achieved through procurement savings and production efficiencies

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
In-line
$1.91 bln
$1.91 bln (9 Analysts)
Q2 Adjusted EPS
Miss
$1.37
$1.45 (9 Analysts)
Q2 EPS
$4.96
Q2 Net Income
$493 mln
Q2 Operating profit
$176 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the paper packaging peer group is "buy"

Wall Street's median 12-month price target for Sonoco Products Co is $55.00, about 13.4% above its July 22 closing price of $47.65

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX3mXJd8

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)