Sonoco Products Company (NYSE: SON) reported record-breaking first-quarter results today, fueled by the successful integration of its major European metal packaging acquisition and a strategic pivot toward consumer-focused markets.

The global packaging leader saw net sales surge 30.6% to a record $1.7 billion for the quarter ending March 30, 2025. This growth was largely driven by the December 2024 acquisition of Eviosys, now rebranded as Sonoco Metal Packaging EMEA, which helped propel the Consumer Packaging segment to an 83% revenue increase.

A Transformed Portfolio

The earnings report follows a period of significant structural change for the company. On April 1, 2025—just after the quarter’s close—Sonoco completed the $1.8 billion sale of its Thermoformed and Flexibles Packaging (TFP) business to TOPPAN Holdings Inc.

The company used approximately $1.5 billion in after-tax proceeds from that sale to immediately pay down debt, including a $1.5 billion term loan used to finance the Eviosys deal.

“Our first quarter results demonstrate the strength of the ‘new Sonoco,'” said Howard Coker, President and CEO. “Our transformed portfolio is significantly more resilient, with over two-thirds of our sales now coming from consumer food packaging—a segment that historically performs well regardless of economic cycles.”

Q1 2025 Financial Highlights

Note: GAAP net income was impacted by one-time costs related to acquisition and divestiture activities.

Segment Performance

• Consumer Packaging: This segment was the standout performer, with operating profit jumping 140%. Beyond the Eviosys acquisition, the U.S. metal packaging business saw 10% organic growth in volume and mix.
• Industrial Paper Packaging: Despite a 6% decline in sales due to lower volumes and currency headwinds, the segment improved its profit margins by 200 basis points through aggressive productivity initiatives and procurement savings.

100 Years of Dividends

In a milestone for shareholders, Sonoco raised its quarterly common stock dividend to $0.53. This marks 100 consecutive years of dividend payments, a rare feat that underscores the company’s long-term financial stability.

Outlook for 2025

Sonoco reaffirmed its full-year 2025 guidance, projecting:

• Adjusted EPS: $6.00 to $6.20
• Adjusted EBITDA: $1.3 Billion to $1.4 Billion

Despite global economic uncertainty and potential tariff-related risks, CEO Howard Coker remains confident. “Our manufacturing network is designed to serve local markets, reducing exposure to cross-border disruptions,” Coker noted. “We remain on track to achieve our targeted leverage ratio of 3.0x to 3.3x by the end of 2026.”