*Note: References in today's news release to consolidated "net sales," "operating profit," and "adjusted operating profit," and Consumer Packaging "segment operating profit" and "segment adjusted EBITDA," along with the corresponding year-over-year comparable results, do not include results of the Company's Thermoformed and Flexibles Packaging and global Trident businesses ("TFP"), which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale.

• Fourth quarter 2025 net sales of $1.8 billion reflect an increase of 29.7% compared to the corresponding prior-year quarter, driven by sales added from our Metal Packaging Europe, Middle East and Africa ("EMEA") business following the December 4, 2024 acquisition of Titan Holdings I B.V. ("Eviosys"). Additionally, sales benefited from higher prices implemented to offset the effects of inflation and tariffs and from the favorable impact of foreign exchange rates.

• GAAP operating profit for the fourth quarter increased to $520 million due to the gain on the sale of ThermoSafe, operating profit from our Metal Packaging EMEA business following the Eviosys acquisition, a positive price/cost environment, solid productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives. These positive factors were partially offset by the impact of divestitures and lower volume/mix.

• Effective tax rates on GAAP income from continuing operations before income taxes and adjusted income from continuing operations before income taxes, were 24.9% and 22.5%, respectively, in the fourth quarter, compared to 36.6% and 24.8%, respectively, in the same period in 2024.
  
  

"Our Sonoco team executed well despite a difficult macroeconomic environment, delivering strong operating results, reducing net debt by approximately 40% year-over-year and lowering the Company's net leverage ratio to approximately 3.0x," said Howard Coker, President and Chief Executive Officer. "In addition, we substantially concluded our portfolio transformation following the successful divestiture of ThermoSafe and further simplified our Consumer Packaging segment by consolidating our global Metal Packaging and Rigid Paper Containers businesses into a single integrated structure -- driven geographically -- which we believe enhances our consumer go-to-market strategy, focuses our technology expertise and drives additional synergies across our global channels."

Paul Joachimczyk, Sonoco's Chief Financial Officer, added, "Our Consumer Packaging segment achieved record fourth quarter sales, operating profit and adjusted EBITDA while growing adjusted EBITDA margin by 110 basis points. The addition of Metal Packaging EMEA and strong results from our Metal Packaging U.S. business in the quarter drove the increase. Our Industrial Paper Packaging segment also slightly improved operating profit and adjusted EBITDA, while expanding operating profit and adjusted EBITDA margins for the ninth consecutive quarter driven by year-over-year productivity improvements."

"Operating cash flow for 2025 was $690 million, which included $196 million in one-time taxes paid during the year on gains from the sale of the divested TFP business."

Fourth Quarter 2025 Segment Results
(Dollars in millions except per share data)

Sonoco reports its financial results in two reportable segments: Consumer Packaging ("Consumer") and Industrial Paper Packaging ("Industrial"), with all remaining businesses reported as All Other.

• Consumer segment net sales grew 62.1%, attributable to Metal Packaging EMEA following the acquisition of Eviosys, price increases implemented to offset the effects of inflation and tariffs, and the favorable impact of foreign exchange rates. These increases were partially offset by the impact of divestitures and softer volumes in the rigid paper packaging business.

• Segment operating profit and segment adjusted EBITDA grew primarily as a result of profits from Metal Packaging EMEA partially offset by the softer volumes in the rigid paper packaging business.
  
  

• Industrial segment net sales remained relatively flat at $568 million, as year-over-year price gains were offset by the loss of sales from the 2024 divestiture of two production facilities in China and modest volume declines across the segment.

• Segment operating profit margin was 12.4%, up slightly from the prior period, and adjusted EBITDA margin increased slightly to 18.2% as productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives were only partially offset by lower volume/mix.
  
  

• Net sales declined due to the divestiture of ThermoSafe along with lower volume from industrial plastics.

• Operating profit and adjusted EBITDA improved 47.6% and 10.5%, respectively, year-over-year as solid productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives offset lower volumes from industrial plastics.

• The Company will continue to simplify its operating and reporting structure in 2026 and will only report its results in two segments, Consumer Packaging and Industrial Paper Packaging. The Company's industrial plastics packaging business, which was the only remaining business in All Other, will be included in the Industrial Paper Packaging segment. The Company believes this reporting structure appropriately represents the management of its business portfolio going forward.
  
  

¹Excludes results of discontinued operations.
²Segment and All Other adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See the Company's reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures later in this release.

Balance Sheet and Cash Flow Highlights

• Cash and cash equivalents were $378 million as of December 31, 2025, compared to $443 million, including discontinued operations, as of December 31, 2024, with the decrease primarily related to changes in net working capital and net debt reduction.

• Total debt and net debt were $4.3 billion and $3.9 billion, respectively, as of December 31, 2025, reflecting decreases of $2.7 billion and $2.7 billion, respectively, compared to December 31, 2024, including discontinued operations. These decreases were primarily related to the repayment of borrowings under the Company's term loan facility using proceeds from the sales of TFP and ThermoSafe.

• On December 31, 2025, the Company had available liquidity of $1.6 billion, comprising available borrowing capacity under its revolving credit facility of $1.3 billion and cash on hand.

• Cash flow from operating activities for the period ended December 31, 2025 was an inflow of $690 million, compared to an inflow of $834 million in the same period of 2024. The main driver of the year-over-year change in operating cash flow was the increased need for working capital during the year related to Metal Packaging EMEA.

• Capital expenditures, net of proceeds from sales of fixed assets, for 2025 were $297 million, compared to $378 million last year.

• Free Cash Flow for 2025 was $393 million compared to $456 million 2024. Free Cash Flow is a non-GAAP financial measure. See the Company's definition of Free Cash Flow, the explanation as to why it is used, and the reconciliation to net cash provided by operating activities later in this release.

• Dividends paid during the twelve months ended December 31, 2025 increased to $208 million compared to $203 million in the same period of the prior year.
  
  

Guidance⁽¹⁾

Full-Year 2026

• Net Revenue: $7.25 billion to $7.75 billion

• Adjusted EPS⁽²⁾: Adjusted to $5.80 to $6.20 per diluted share

• Adjusted EBITDA⁽²⁾: $1.25 billion to $1.35 billion

• Cash flow from operating activities: $700 million to $800 million, including projected payments of taxes on gains from divestitures and restructuring costs
  
  

Commenting on Sonoco's outlook, Joachimczyk said, "Excluding results from divested businesses in 2025, we are targeting a 20% improvement in adjusted earnings in 2026. In addition to our planned growth initiatives, we are working to achieve our financial targets by implementing a profitability performance plan which is focused on driving significant costs savings over the next three years through operational improvement, commercial excellence and structural transformation."

Coker concluded, "Over the past several years, we have aligned and scaled our portfolio around the strengths of Sonoco's core metal and paper consumer and industrial packaging businesses. As a result of this transformation, we significantly grew our top-line and bottom-line while expanding margins and generating significant normalized cash flow. We believe our foundation has the potential to deliver improved financial performance in 2026 and beyond. While we expect to face an uncertain market environment near term, we believe we can deliver on our strategic priorities by driving sustainable growth, further expanding margins and efficiently allocating capital by investing in ourselves through technology and innovation, maintaining a strong balance sheet and returning capital to shareholders."

⁽¹⁾Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the future performance of the overall economy, the effects of tariffs, trade policy and inflation, the challenges in global supply chains, potential changes in raw material prices, other costs, and the Company's effective tax rate, as well as other risks and uncertainties, including those related to the integration of Eviosys and described below, actual results could vary substantially. Further information can be found in the section entitled "Forward-looking Statements" in this release.

⁽²⁾ Full year 2026 GAAP guidance is not provided in this release due to the likely occurrence of one or more of the following, the timing and magnitude of which we are unable to reliably forecast without unreasonable efforts: restructuring costs and restructuring-related impairment charges, acquisition/divestiture-related costs, gains or losses from the sale of businesses and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company's future GAAP financial results. Accordingly, quantitative reconciliations of Adjusted EPS and Adjusted EBITDA guidance and net debt/Adjusted EBITDA targets to the nearest comparable GAAP measures have been omitted in reliance on the exception provided by Item 10 of Regulation S-K.