Sonoco Targets $1.5B EBITDA, 200bps Margin Expansion by 2028
Sonoco expects to reach adjusted EBITDA of about $1.5 billion by end-2028 alongside a 200 basis-point margin expansion and $2.5 billion in cumulative operating cash flow from 2026 to 2028. It plans to capex at roughly 4% of sales, lower net leverage below 2.5× and continue dividends and buybacks.
1. Investor Day Overview
On Feb. 17, Sonoco’s leadership outlined its simplified two-business model and long-term growth strategy during an Investor Day presentation, emphasizing sustainable metal and paper packaging operations and a focus on value creation through productivity and strategic priorities.
2. 2026-2028 Financial Targets
The company set goals to achieve adjusted EBITDA of about $1.5 billion, expand EBITDA margins by roughly 200 basis points, generate $2.5 billion in operating cash flow, maintain capex at 4% of sales, and reduce net leverage below 2.5× by end-2028.
3. Strategic Priorities and Capital Allocation
Sonoco plans to continue over 100 years of consecutive dividends, pursue share repurchases, and allocate capital toward sustainable growth, margin enhancement and efficient spending, driven by an enterprise-wide productivity system to deliver consistent earnings growth.