HARTSVILLE, S.C. (News release) -- Sonoco Products Company, a global leader in high-value sustainable metal and paper packaging, on Feb. 17 hosted an Investor Day in which it provided investors with an update on its value creation strategy, financial targets and capital allocation plan, led by President and Chief Executive Officer Howard Coker and members of the senior leadership team.
2026-2028 Financial Targets and Capital Allocation Priorities
During its Investor Day, Sonoco discussed its financial targets over the next three years (2026-2028), including:
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Achieving adjusted EBITDA of ~$1.5 billion by the end of 2028
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Expanding adjusted EBITDA margins by approximately ~200 basis points by the end of 2028
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Targeting cumulative Cash Flow from Operations of ~$2.5 billion (2026-2028)
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Maintaining capital expenditures of ~4% of sales (2026 to 2028)
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Targeting long-term net leverage to below 2.5x by the end of 2028
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Growing capital return to shareholders including:
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Continuing over 100 years of consecutive dividend payments
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Future share repurchases
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Key Comments from Howard Coker, President and CEO:
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"Today, Sonoco is a simpler company, running two market leading businesses, with clearer priorities. We believe we are positioned for consistent earnings growth, strong cash flow generation, and a management team focused on executing our strategic priorities - sustainable growth, margin improvement and efficient capital allocation."
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"While 2025 was a strong year, we were setting the foundation for a better 2026 and beyond. We believe we are in the best position to deliver consistent earnings growth going forward."
Comments from Paul Joachimczyk, Chief Financial Officer:
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"Margin expansion remains one of the most important value drivers in our financial outlook, and we are approaching it with the same discipline that has underpinned our performance over the last five years. We are targeting approximately 200 basis points of margin expansion by 2028, which equates to $150 million to $200 million of incremental value. We believe this is not dependent on a single initiative or a step-change in market conditions, but rather the result of a coordinated, enterprise-wide productivity system that is already embedded in how we operate."
Replay and Presentation Information
A replay of Sonoco's 2026 Investor Day webcast along with a presentation will be accessible on the Company's website at www.sonoco.com.
