Overview

* Sonoco Q2 net sales rise 49.4% yr/yr to $1.9 bln, in-line with analyst expectations, per LSEG data

* Adjusted EPS for Q2 misses analyst expectations, per LSEG data

* Co reduces total debt and net debtby $1.7 bln using divestiture proceeds and operating cash flow

Outlook

* Sonoco maintains full-year adjusted EBITDA guidance of $1.3 bln to $1.4 bln

* Company targets full-year adjusted EPS of approximately $6.00 or the lower end of previousguidanceof $6.00 to $6.20

* Sonoco expects 2025 operating cash flow around $800 mln or the lower end of previousguidanceof $800 mln to $900 mln

* Company anticipates "strong" Consumer Packaging segment performance in H2 2025

Result Drivers

* ACQUISITIONS - Sales growth driven by acquisition of Titan Holdings I B.V. (Eviosys)

* PRICE INCREASES - Implemented to offset inflation and tariffs impact, boosting sales

* PRODUCTIVITY GAINS - Achieved through procurement savings and production efficiencies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales In-line $1.91 $1.91

bln bln (9

Analysts

)

Q2 Miss $1.37 $1.45 (9

Adjusted Analysts

EPS )

Q2 EPS $4.96

Q2 Net $493 mln

Income

Q2 $176 mln

Operatin

g profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the paper packaging peer group is "buy"

* Wall Street's median 12-month price target for Sonoco Products Co ( SON ) is $55.00, about 13.4% above its July 22 closing price of $47.65

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)