Sonoco reaffirms FY25 adjusted EPS view $6.00-$6.20, consensus $5.93

Reaffirms FY25 cash flow from operating activities $800M-$900M, adjusted EBITDA $1.3B-$1.4B. Commenting on the Company’s reaffirmed outlook, Sonoco’s (SON) Coker, said, “Our operational and financial targets for 2025 have not changed despite economic uncertainty. Our focus continues to be to ‘mind the store’ to continue to drive improved performance from our core Consumer and Industrial businesses while managing risk associated with changing macroeconomic conditions. We believe Sonoco is well-positioned to weather the evolving geopolitical landscape for three reasons. First, our manufacturing network is designed to serve local markets, reducing our exposure to cross-border disruptions and tariff-related risks. Second, while we are actively working with our customers to help manage the impacts of higher input costs driven by tariffs, our business model allows for pricing adjustments when necessary. Finally, we believe our transformed portfolio is significantly more resilient, with over two-thirds of our sales now coming from consumer food packaging, a segment that has historically demonstrated strong performance across economic cycles. Despite seasonal working capital changes, Sonoco remains a strong cash generator and our capital deployment priorities remain focused on investing in ourselves to drive growth and productivity improvements. Further, we intend to use proceeds from divestitures, along with projected free cash flow, to reduce debt and we are continuing to reward our shareholders with cash dividends as we have for an extraordinary 100 consecutive years.”