Sonoco Products Company reported net income of $122.9 million for the third quarter of 2025, up from $50.9 million in the same period last year, according to the company's earnings release. The 142% increase was driven by the acquisition of Metal Packaging EMEA and improved price/cost dynamics.
The company's third-quarter net sales grew 57% to $2.1 billion, primarily from acquisitions. Adjusted EBITDA increased 37% to $386 million, while adjusted diluted earnings per share reached $1.92, up 29% year-over-year.
The Consumer Packaging segment reported a 117% increase in net sales, driven by the Metal Packaging EMEA acquisition, price increases to offset inflation and tariffs, and favorable foreign exchange rates. Segment operating profit and adjusted EBITDA showed significant improvement due to profits from Metal Packaging EMEA and strong price/cost conditions in U.S. metal packaging.
Industrial Paper Packaging segment net sales remained flat at $585 million as volume declines and the divestiture of two Chinese production facilities offset price increases. Segment operating profit margin improved to 15% and adjusted EBITDA margin reached 21% due to price recovery and productivity initiatives.
Cash flow from operating activities was $292 million in the quarter, an 80% increase over the prior year period due to working capital improvements. For the first nine months, operating cash flow totaled $277 million, with free cash flow of $29 million.
The company adjusted its full-year 2025 guidance, now expecting adjusted diluted EPS between $5.65 and $5.75, down from previous guidance of approximately $6.00. Adjusted EBITDA guidance remains substantially unchanged at $1.30 billion to $1.35 billion, while cash flow from operating activities guidance was reduced to $700-$750 million from approximately $800 million.
President and CEO Howard Coker attributed the strong performance to "record top-line and bottom-line performance along with margin expansion despite challenging market conditions and higher than expected interest costs." The company also announced the planned sale of its ThermoSafe business unit for up to $725 million, with proceeds expected to reduce debt.
