Sonoco Products Company Reports 49.4% Revenue Growth to $1.91 Billion in Q2 2025

Sonoco Products Company reported significant financial growth in its latest quarterly results, with consolidated net sales reaching $1.91 billion for the second quarter of 2025, marking a 49.4% increase from $1.28 billion in the same period last year. This surge was primarily driven by the acquisition of Eviosys, which contributed approximately $601.3 million to net sales, alongside increased selling prices across both the Industrial Paper Packaging and Consumer Packaging segments. The company's operating profit also saw a substantial rise, climbing to $175.7 million, an 83.3% increase from $95.8 million in the prior year.

In terms of profitability, Sonoco's net income attributable to the company soared to $493.4 million, or $4.96 per diluted share, compared to $90.8 million, or $0.92 per diluted share, in the second quarter of 2024. This increase was bolstered by a gain from the divestiture of its Thermoformed and Flexibles Packaging business, which was completed on April 1, 2025. Adjusted net income for the quarter was $136.1 million, or $1.37 per diluted share, reflecting a slight increase from $126.8 million, or $1.28 per diluted share, in the same quarter of the previous year.

Operationally, Sonoco's Consumer Packaging segment reported a 110.5% increase in net sales, driven largely by the Eviosys acquisition. The segment's operating profit margin improved to 13.1%, up from 12.7% in the prior year, while the Industrial Paper Packaging segment experienced a slight decline in net sales by 2.1%, attributed to lower volumes and the divestiture of certain operations. The overall operating profit for the reportable segments increased by 71.7%, highlighting the effectiveness of Sonoco's strategic initiatives.

The company also noted a significant change in its balance sheet, with total assets decreasing to $11.97 billion from $12.51 billion at the end of 2024. Current liabilities saw a notable reduction, dropping from $4.04 billion to $2.42 billion, primarily due to the repayment of debt following the TFP divestiture. Sonoco's total equity increased to $3.25 billion, reflecting strong retained earnings and comprehensive income gains.

Looking ahead, Sonoco remains focused on its strategic transformation, including the integration of Eviosys and potential divestitures of non-core businesses. The company anticipates continued growth driven by its core segments and is committed to enhancing operational efficiencies and capital investments. The outlook for the remainder of 2025 suggests a cautious optimism, with expectations of maintaining profitability and managing costs effectively amidst ongoing market challenges.