Sonoco Products Company · NYSE:SON
Sonoco Products — Q2 2025 Earnings Presentation
29 slides from Sonoco Products's earnings presentation, Jul 24, 2025
Slide 1: Quarterly Financial Review 2nd Quarter 2025
Quarterly Financial Review 2nd Quarter 2025 July 24, 2025
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS / NON-GAAP FINANCIAL MEASURES Statements included herein that are not historical in nature, are intended to be, and are hereby identified as “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amen
Slide 3: Today's Attendees
Today’s Attendees Roger Schrum Howard Coker Rodger Fuller Jerry Cheatham Paul Joachimczyk Interim Head of President and CEO Chief Operating Interim Chief Chief Investor Relations Officer Financial Officer Financial Officer and Communications Interim CEO, Sonoco Metal Packaging EMEA 3
Slide 4: Business Update
Business Update Howard Coker President and Chief Executive Officer 4
Slide 5: Metal Packaging and Industrial Drive Improvement
Revenue Q2 2025 Results Q2 Highlights Summary $1.91B • Strong top-line and bottom-line growth Up 49%* • Metal Packaging Global macroeconomic pressures and seasonal factors impacted demand and Industrial Total Adjusted Operating Profit • Consumer Packaging sales up 110%, Adjusted EBITDA Drive up 115%
Slide 6: Value-added Packaging
Value-added Packaging Principles Central To Where We Play Advanced Market Material Science Dynamics High Product Large / Global Functionality Customers Continuous Process Manufacturing How We Win Guiding Principle Serving Operational Innovation Culture People Build Customers Execution Businesses 6
Slide 7: Portfolio Realignment
Portfolio Realignment We Have Aligned Our Portfolio With Our Value-added Packaging Competitive Strengths TFP ThermoSafe Industrial Paper Packaging Sonoco Metal Packaging Rigid Paper Containers (Divested) (Divest) Advanced Material Science High Product Functionality Continuous Process Manufacturing L
Slide 8: Continuing the Transformation Journey
Continuing the Transformation Journey Second Quarter Actions Preparing ThermoSafe for second half process Further optimizing operations network and support organizations • Actioned $20 million in annual cost savings associated with stranded cost • Lower cost structure to serve our Divested Thermofor
Slide 9: SMP EMEA Update
SMP EMEA Update Rodger Fuller Chief Operating Officer Interim CEO, Sonoco Metal Packaging EMEA 9
Slide 10: SMP EMEA Update: 3Q Outlook and Future Growth
SMP EMEA Update 3Q Outlook and Future Growth • Projecting solid 3Q vs. last year • Delayed harvest season just starting and could extend into early Q4 • Strong growth projects and opportunities Food can and end unit volumes • New 5-year pet food contract signed in 2Q impacted in 2Q • Projecting up t
Slide 11: Q2 2025 Financial Results
Q2 2025 Financial Results Jerry Cheatham Interim Chief Financial Officer 11
Slide 12: Q2 Financial Results
Q2 Financial Results Q2 2025 Q2 2024 YOY Change % Net Sales 1 $1,910 $1,279 49% Net Sales 2 $345 Adj. OP 3 $247 $142 74% Adj. EBITDA4 $328 $262 25% Adj. EBITDA Margin (% of Sales) 5 17.2% 16.2% 101bps Adj. EPS6 $1.37 $1.28 7% (Dollars in Millions, Except EPS) 1) Excluding discontinued operations 5)
Slide 13: SMP US Growth, EMEA Acquisition Drives Strong Consumer Results
SMP US Growth, EMEA Acquisition Drives Strong Consumer Results Sales ($M)1 Adj. EBITDA ($M) 2 Consumer Segment: +110% +115% Q2-25 Results $1,227 $213 • Higher volumes and favorable price drove strong performance from Metal Packaging U.S $583 $99 17% • Global Rigid Paper saw unfavorable price/cost an
Slide 14: Margin Protection Drives Industrial Improvement
Margin Protection Drives Industrial Improvement Sales ($M) Adj. EBITDA ($M) -2% +16% Industrial Segment: $601 $588 113 Q2-25 Results 98 • Favorable price in Global Paper and Reels partially offset by unfavorable 19% volume/mix 16% • Selling prices increased due to higher TBC index and lumber costs w
Slide 15: Delivering On Costs Savings
Delivering On Costs Savings Sales ($M) Adj. EBITDA ($M) All Other Segment: Q2-25 Results 0% -8% 95 95 17 16 • Higher volumes in Thermosafe partially offset by volume softness in Industrial Plastics • Favorable purchasing and fixed productivity 18% 17% • Execution on S&A and fixed costs control Q2 20
Slide 16: Business Update
Business Update Paul Joachimczyk Chief Financial Officer 16
Slide 17: Full Year Financial Outlook
Update 2025 Guidance Full Year Net Revenue Maintained $7.75 - $8B Financial Outlook Adjusted EBITDA Maintained $1.3B - $1.4B Upside/Downside Risk Weaker US Dollar Price/Cost Outlook Adjusted EPS Updated ~$6.00 Fixed Cost Controls Sales Volumes Operating Cash Interest Expense Updated ~$800 Flow Net W
Slide 18: Investing In Ourselves
Investing In Ourselves Gross Capital Spending YTD Upfitting Automation For Growth Projects $188 Million Productivity Savings • Project $360 million for 2025 • $30 million investment for • Autonomous forklifts and adhesive & sealants tubes robotic assembly (Jackson, TN) • Projected productivity ~$65M
Slide 19: New Consumer Growth Projects
New Consumer Growth Projects RPC launching new SMP U.S. projecting 12% all-paper and paper- SMP EMEA food can/15% aerosol bottom cans Growth Projects growth in 2025 for substituting for plastic packaging in Europe 19
Slide 20: Sonoco Named Sustainable Packaging Company of the Year
Sonoco Named Sustainable Packaging Company of the Year Won three awards for Recognized for helping Packaging Business, major brands transition to Sustainable Brand more sustainable and Sustainable packaging solutions Investment Projects 20
Slide 21: Why Invest In Sonoco?
Why Invest In Sonoco? Demonstrated track-record We have #1 global of leveraging our competitive positions in all three of strengths to grow and Strong cash Capital allocation strategy our core franchises improve profitability flow conversion oriented to shareholders • Metal and Paper Cans, • 10% CAG
Slide 22: Looking Forward: The New SONOCO
Looking Forward: The New SONOCO Proforma 2025 Sales $7.75 - $8.0B * Employees 23,400 Plants 285 Countries 40 22 *Includes 1Q of TFP and full year ThermoSafe
Slide 23: Roger Schrum
& Roger Schrum Interim Head of Investor Relations Email: roger.schrum@sonoco.com Office Phone: 843-339-6018 Mobile Phone: 843-615-8650 23
Slide 24: Appendix
Appendix Quarter-ending: June 30, 2025 24
Slide 25: EPS Summary | 2025 vs. 2024
EPS Summary | 2025 vs. 2024 Second Quarter Year To Date 2025 2024 2025 2024 GAAP EPS $ 4.96 $ 0.92 $ 5.51 $ 1.57 Addback for: Acquisition and divestiture related costs, net 0.09 0.17 0.40 0.21 LIFO Reserve change 0.01 (0.01) 0.01 (0.01) Acquisition intangibles amortization expense 0.35 0.17 0.67 0.3
Slide 26: P&L Summary (Adjusted) | Second Quarter: 2025 vs. 2024
P&L Summary (Adjusted) | Second Quarter: 2025 vs. 2024 (Dollars in millions) Better / (Worse) 2025 2024 $ % Net sales $ 1,910 $ 1,279 $ 631 49.3 % Gross profit 407 284 123 43.3 % SG&A Expenses (160) (142) (18) (12.7)% Operating profit $ 247 $ 142 $ 105 73.9 % Other non-operating expense (6) — (6) (1
Slide 27: Sales and Adj. EBITDA Bridge | Second Quarter: 2025 vs. 2024
Sales and Adj. EBITDA Bridge | Second Quarter: 2025 vs. 2024 (Dollars in millions) Sales Consumer Industrial All Other DO/Stranded Adj. Total Q2 2024 Sales $583 $601 $95 $0 $1,279 Volume / Mix 24 -25 1 0 (0) Price 15 30 1 0 45 Acq / Divestitures 585 -13 0 0 573 FX / Other 20 -5 -1 0 14 Q2 2025 Sales
Slide 28: Segment Analysis | Second Quarter: 2025 vs. 2024
Segment Analysis | Second Quarter: 2025 vs. 2024 (Dollars in millions) Net Sales1 Segment Operating Profit1 2025 2024 % Chg 2025 2024 % Chg Consumer Packaging $ 1,227 $ 583 110.5 % $ 160 $ 74 116.8 % Industrial Paper Packaging 588 601 (2.1)% 81 67 21.3 % All Other 95 95 0.2 % 13 14 (5.5)% Total Sono
Slide 29: Balance Sheet
Balance Sheet (Dollars in millions) 6/29/2025 12/31/2024 Change $ Cash and cash equivalents $ 330 $ 431 $ (101) Trade accounts receivable, net of allowances 1,056 908 148 Other receivables 212 176 36 Inventories 1,283 1,016 267 Prepaid expenses 156 197 (41) Current assets of discontinued operations
Sonoco Products Company — Q2 2025 Earnings Presentation on 6ix