Sonoco Q4 Sales Soar 29.7% to $1.8B; EPS Swings to $3.33
Sonoco posted Q4 net sales of $1.8B, up 29.7% year-over-year, with GAAP net income of $332.2M and EPS of $3.33 versus a $43M loss a year earlier. It collected $656M from ThermoSafe's sale, cut net debt by $965M and ended 2025 with net leverage near 3.0x.
1. Fourth Quarter Financial Performance
Sonoco’s fourth quarter net sales rose to $1.768 billion, a 29.7% increase driven by the Eviosys acquisition, price adjustments and favorable FX. GAAP operating profit jumped to $520.2 million from $56.1 million, net income reached $332.2 million versus a $43 million loss, and EPS climbed to $3.33. Adjusted operating profit was $187 million (up 47.1%) and adjusted EBITDA hit $272 million (up 10.2%).
2. Cash Flow Generation and Debt Reduction
The company generated $413 million of operating cash flow in Q4 and $690 million for the full year, which included $196 million in one-time tax payments. Proceeds of $656 million from the ThermoSafe divestiture helped reduce net debt by $965 million in the quarter and by $2.7 billion for the year, bringing net leverage to approximately 3.0x.
3. 2026 Guidance and Segment Structure
For 2026, Sonoco targets adjusted diluted EPS of $5.80–$6.20 and adjusted EBITDA of $1.25 billion–$1.35 billion, with operating cash flow of $700 million–$800 million. The company will report in two segments—Consumer Packaging and Industrial Paper Packaging—with its industrial plastics business folded into the latter to streamline operations.