Sonoco Products Company Reports 57.3% Revenue Growth to $2.13 Billion in Q3 2025

Sonoco Products Company reported significant financial growth in its latest quarterly results, with consolidated net sales reaching $2.13 billion for the third quarter of 2025, marking a 57.3% increase from $1.35 billion in the same period last year. This surge was primarily driven by the inclusion of $758.2 million in sales from the recently acquired Metal Packaging EMEA business, following the acquisition of Eviosys in December 2024. Additionally, the company experienced a $63.9 million increase in selling prices across its Industrial Paper Packaging and Consumer Packaging segments, although this was partially offset by a decline in volume/mix of $39.9 million and a loss of $14.1 million in sales due to the divestiture of two production facilities in China.

The company's operating profit for the third quarter was reported at $195 million, a 90.9% increase from $102.1 million in the prior year. This increase was attributed to a $167.5 million rise in gross profit, largely due to the addition of the Metal Packaging EMEA business, and the absence of a $30 million loss on the sale of the aforementioned facilities. However, selling, general, and administrative expenses rose by $61.1 million, primarily due to costs associated with the Eviosys acquisition and increased restructuring-related costs. Net income attributable to Sonoco for the quarter was $122.9 million, or $1.23 per diluted share, compared to $50.9 million, or $0.51 per diluted share, in the previous year.

In terms of strategic developments, Sonoco completed the sale of its Thermoformed and Flexibles Packaging business to Toppan Holdings in April 2025 for approximately $1.8 billion. The company also announced a definitive agreement to sell its ThermoSafe business to Arsenal Capital Partners for up to $725 million, with the transaction expected to close by the end of 2025. These divestitures are part of Sonoco's strategy to streamline its operations and focus on its core Consumer Packaging and Industrial Paper Packaging segments.

Operationally, Sonoco's workforce included approximately 900 associates in the ThermoSafe business, which is now classified as held for sale. The company has also been actively managing its cash flow, reporting cash provided by operating activities of $276.9 million for the first nine months of 2025, down from $437.6 million in the same period last year. This decrease was attributed to increased net working capital requirements, particularly in inventory and accounts payable. The company’s total debt stood at $5.16 billion as of September 28, 2025, with a significant portion repaid using proceeds from the TFP divestiture.

Looking ahead, Sonoco anticipates continued growth driven by its strategic focus on core segments and operational efficiencies. The company is committed to improving its cost structure and productivity while managing the impacts of inflation and supply chain challenges. The outlook remains positive, with expectations for further integration of the Eviosys acquisition and the successful completion of the ThermoSafe divestiture, which are expected to enhance the company's market position and financial performance in the coming quarters.