SONOCO PRODUCTS CO

Previous wording

Statements included in this Quarterly Report on Form 10-Q that are not historical in nature, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, 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 amended (the “Exchange Act”). In addition, Sonoco Products Company (the “Company” or “Sonoco”) and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “aim,” “anticipate,” “assume,” “believe,” “can,” “committed,” “consider,” “continue,” “could,” “develop,” “estimate,” “expect,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “intend,” “is designed to,” “likely,” “maintain,” “may,” “might,” “objective,” “ongoing,” “opportunity,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “strategy,” “target,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding:

Current wording

Statements included in this Quarterly Report on Form 10-Q that are not historical in nature, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, 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 amended (the “Exchange Act”). In addition, Sonoco Products Company (the “Company” or “Sonoco”) and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “aim,” “achieve,” “anticipate,” “assume,” “believe,” “can,” “commit,” “consider,” “continue,” “could,” “develop,” “estimate,” “expect,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “intend,” “is designed to,” “likely,” “maintain,” “may,” “might,” “objective,” “ongoing,” “opportunity,” “outlook,” “persist,” “plan,” “position,” “possible,” “potential,” “predict,” “project,” “remain,” “seek,” “should,” “strategy,” “target,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding:

Previous wording

•availability and supply of raw materials and energy, and offsetting high raw material and energy costs;

Current wording

•supply chain disruptions and availability and supply of raw materials and energy, and offsetting high raw material and energy costs;

Previous wording

•effects and timing of, and anticipated gains and costs, of the Company’s restructuring and portfolio simplification activities, including with respect to streamlining of the Company’s organizational structure and the Company’s contemplated, pending, and completed divestitures, including the Company’s sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”), and the potential divestiture of the Company’s ThermoSafe business;

Current wording

•effects and timing of, and anticipated gains and costs, of the Company’s restructuring and portfolio simplification activities, including with respect to streamlining of the Company’s organizational structure and the Company’s contemplated, pending, and completed divestitures, including the Company’s sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”), and the pending sale of the Company’s ThermoSafe business (“ThermoSafe”);

Previous wording

•creation of near-term and long-term value and returns for shareholders;

Current wording

•creation of near-term and long-term value and returns for shareholders, including through the continued payment of dividends; and

Previous wording

•ability to manage the mix of business and execute on the Company’s portfolio simplification strategy, including with respect to divestitures, such as the potential divestiture of its ThermoSafe business;

Current wording

•ability to manage the mix of business and execute on the Company’s portfolio simplification strategy, including with respect to divestitures, such as the pending divestiture of ThermoSafe;

Previous wording

•availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariffs or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine as well as the economic sanctions related thereto, and the ongoing conflicts in the Middle East), and the Company’s ability to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks;

Current wording

•availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariffs or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine as well as the economic sanctions related thereto, and uncertainty in the Middle East), and the Company’s ability to continue to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks;

Previous wording

•costs of labor and employment, including the cost of employee and retiree medical, health, and life insurance benefits;

Current wording

•costs of labor and employment, including the cost of employee and retiree medical, health, and life insurance benefits and the impact of any work stoppages due to labor disputes;

Previous wording

•success of implementation of new manufacturing technologies and installation of manufacturing equipment, including the startup of new facilities and lines;

Current wording

•success of new product development, introduction and sales, including successful timing of new product or product innovation introductions, success of implementation of new manufacturing technologies and installation of manufacturing equipment, including the startup of new facilities and lines;

Previous wording

•changes in laws and regulations relating to packaging for food products and foods packaged therein, other actions and public concerns about products packaged in our containers, or chemicals or substances used in raw materials or in the manufacturing process;

Current wording

•loss of consumer or investor confidence, including as a result of public concerns about products packaged in our containers, or chemicals or substances used in raw materials or in the manufacturing process;

Previous wording

•actions of domestic or foreign government agencies, the impact of new and evolving laws, regulations, rules and standards affecting the Company, and increased costs of compliance;

Current wording

•actions of domestic or foreign government agencies, the impact of new and evolving laws, regulations, rules and standards affecting the Company, including laws and regulations relating to packaging for food products and foods packaged therein, and increased costs of compliance;

Previous wording

•economic disruptions resulting from changing tariff policies and trade wars, the overall uncertainty surrounding international trade relations, war,and other geopolitical tensions (such as the ongoing military conflict between Russia and Ukraine and the ongoing conflicts in the Middle East), public health events, terrorist activities, and natural disasters, and our ability to successfully mitigate any negative impacts of such disruptions; and

Current wording

•economic disruptions resulting from changing tariff policies and trade wars, the overall uncertainty surrounding international trade relations, war, and other geopolitical tensions (such as the ongoing military conflict between Russia and Ukraine and uncertainty in the Middle East), public health events, terrorist activities, and natural disasters, and our ability to successfully mitigate any negative impacts of such disruptions; and

Previous wording

More information about the risks, uncertainties, and assumptions that may cause actual results to differ materially from those expressed or forecasted in forward-looking statements is provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 under Item 1A - “Risk Factors” and throughout other sections of that report and in other reports filed with the Securities and Exchange Commission. In light of these various risks, uncertainties and assumptions, the forward-looking events discussed in this Quarterly Report on Form 10-Q might not occur.

Current wording

More information about the risks, uncertainties, and assumptions that may cause actual results to differ materially from those expressed or forecasted in forward-looking statements is provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 under Item 1A - “Risk Factors” and throughout other sections of that report and in other reports filed with the Securities and Exchange Commission (“SEC”). In light of these various risks, uncertainties and assumptions, the forward-looking events discussed in this Quarterly Report on Form 10-Q might not occur.

Previous wording

The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. You are, however, advised to review any further disclosures we make on related subjects, and about new or additional risks, uncertainties and assumptions, in our future filings with the Securities and Exchange Commission on Forms 10-K, 10-Q, and 8-K.

Current wording

The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. You are, however, advised to review any further disclosures we make on related subjects, and about new or additional risks, uncertainties and assumptions, in our future filings with the SEC on Forms 10-K, 10-Q, and 8-K.

Previous wording

As previously disclosed, the Company has initiated a review of strategic alternatives for ThermoSafe, its leading temperature-assured packaging business. On a standalone basis, ThermoSafe, which is part of the All Other group of businesses, had revenue of $245 million in 2024. The Company expects to complete its review of strategic alternatives for ThermoSafe in the second half of 2025.

Current wording

On September 7, 2025, following the completion of the Company’s previously disclosed review of strategic alternatives for ThermoSafe, its temperature-assured packaging business, the Company entered into a definitive agreement to sell ThermoSafe to Arsenal Capital Partners, a private equity firm, for a total purchase price of up to $725 million. The purchase price consists of $650 million on a cash-free and debt-free basis payable at closing and subject to customary adjustments, and additional consideration of up to $75 million if certain performance measures for calendar year 2025 are met. The transaction is subject to customary closing conditions, including regulatory review, and is expected to be completed by the end of 2025. On a standalone basis, ThermoSafe, which is part of the All Other group of businesses, had revenue of $245 million in 2024. The pending sale of ThermoSafe represents the next step in the Company’s portfolio transformation goal of streamlining its operations from a large portfolio of diversified businesses into two core global business segments.

Previous wording

The Company believes that these completed and potential divestitures will enable greater strategic and operational focus while also generating proceeds to fund deleveraging and further focus capital investments in our core Consumer Packaging and Industrial Paper Packaging businesses.

Current wording

The Company believes that its simplified structure will enable greater strategic and operational focus while also helping to generate proceeds to fund deleveraging and further focus capital investments in the Company’s core Consumer Packaging and Industrial Paper Packaging businesses.

Previous wording

Recent developments in U.S. and foreign trade policy have increased uncertainty for the global economy and the Company’s business. On March 4, 2025, the U.S. Government (the “Administration”) imposed a 25% tariff on all imports from Canada or Mexico. After imposing this tariff, the Administration allowed for the temporary exemption from the tariff for any goods that comply with the United States-Mexico-Canada Agreement (“USMCA”), which has helped mitigate the impact of the tariff on the Company’s operations in North America. On February 10, 2025, the Administration announced the expansion of Section 232 steel and aluminum tariffs (“Section 232 Tariffs”) on steel and aluminum imported into the United States, effective March 12, 2025, and the termination of the granting of new exclusions to mitigate these tariffs. As a result, imported steel and aluminum is currently subject to a 50% duty.

Current wording

Recent developments in U.S. and foreign trade policy have increased uncertainty for the global economy and the Company’s business. On March 4, 2025, the U.S. Government (the “Administration”) imposed a 25% tariff on all imports from Canada or Mexico. After imposing this tariff, the Administration allowed for the temporary exemption from the tariff for any goods that comply with the United States-Mexico-Canada Agreement (“USMCA”), which has helped mitigate the impact of the tariff on the Company’s operations in North America. On February 10, 2025, the Administration announced the expansion of Section 232 steel and aluminum tariffs (“Section 232 Tariffs”) on steel and aluminum imported into the United States, effective March 12, 2025, and the termination of the granting of new exclusions to mitigate these tariffs. As a result, imported steel and aluminum originating from most countries is currently subject to a 50% duty.

Previous wording

While the exact scope of any tariffs or other trade policy changes that will ultimately be implemented is not known at this time, the Company does not currently expect these recently announced tariffs and proposed future tariffs to have a material direct effect on the Company’s profitability or cash flows over the remainder of 2025 because the Company’s manufacturing network is designed to serve local markets, reducing its exposure to cross-border disruptions and tariff-related risks, and while the Company is actively working with its customers to help manage the impacts of higher input costs driven by tariffs, its business model allows for pricing adjustments when necessary. In addition, the Company believes its transformed portfolio following the Eviosys acquisition and the sale of TFP is significantly more resilient, with nearly two-thirds of the Company’s sales for the six-month period ended June 29, 2025 coming from the Consumer Packaging segment, a segment that has historically demonstrated strong performance across economic cycles. In addition, while the Section 232 Tariffs impact input costs for the Company’s U.S.-based metal packaging and rigid paper container businesses (part of the Consumer Packaging segment), which source a portion of their steel and aluminum purchases from outside the United States, the Company intends, and has the contractual ability, to pass such increases in cost due to tariffs to its customers.

Current wording

The Administration also imposed reciprocal tariffs at a baseline rate of 10%, effective April 5, 2025, and later set firmly established tariff rates for various countries at the beginning of August 2025. For the most part, these reciprocal tariffs were incremental increases over the previously established 10% temporary reciprocal tariffs. While future changes in tariff and trade policy may result in additional changes, and the exact scope of any such additional changes is not known at this time, the Company does not currently expect the current tariff environment to have a material direct effect on the Company’s profitability or cash flows over the remainder of 2025 because the Company’s manufacturing network is designed to serve local markets, reducing its exposure to cross-border disruptions and tariff-related risks. While the Company is actively working with its customers to help manage the impacts of higher input costs driven by tariffs, its business model allows for pricing adjustments when necessary. In addition, the Company believes its transformed portfolio following the Eviosys acquisition and the sale of TFP is significantly more resilient, with nearly two-thirds of the Company’s sales for the nine-month period ended September 28, 2025 coming from the Consumer Packaging segment, a segment that has historically demonstrated strong performance across economic cycles. In addition, while the Section 232 Tariffs impact input costs for the Company’s U.S.-based metal packaging and rigid paper container businesses (part of the Consumer Packaging segment), which source a portion of their steel and aluminum purchases from outside the United States, the Company intends, and has the contractual ability, to pass such increases in cost due to tariffs to its customers.

Previous wording

On July 4, 2025, subsequent to the end of the quarter, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law in the United States. The OBBBA includes a broad range of tax reform provisions, including the extension of key provisions of the Tax Cuts and Jobs Act of 2017. While the Company is continuing to assess the potential impact of this new legislation, it currently does not expect the OBBBA to have a material impact on its results of operations.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law in the United States. The OBBBA includes a broad range of tax reform provisions, including the extension of key provisions of the Tax Cuts and Jobs Act of 2017. While the Company is continuing to assess the potential impact of this new legislation, it currently does not expect the OBBBA to have a material impact on its results of operations.

Previous wording

The Company’s financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Sonoco’s management considers a variety of both GAAP and non-GAAP financial and operating measures in assessing the Company’s financial performance. The key GAAP measures used are net sales, operating profit, gross profit margin, net income attributable to Sonoco and diluted earnings per share. The key non-GAAP measures used are Adjusted operating profit, Adjusted net income attributable to Sonoco, Adjusted diluted earnings per share, Adjusted EBITDA and Adjusted EBITDA margin. For information about the Company’s use of non-GAAP measures and reconciliations of these measures to the most directly comparable GAAP measures see “Non-GAAP Financial Measures” below.

Current wording

The Company’s financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Sonoco’s management considers a variety of both GAAP and non-GAAP financial and operating measures in assessing the Company’s financial performance. The key GAAP measures used are net sales, operating profit, gross profit margin, net income attributable to Sonoco and diluted earnings per share (“EPS”). The key non-GAAP measures used are Adjusted operating profit, Adjusted net income attributable to Sonoco, Adjusted diluted EPS, Adjusted EBITDA, Segment Adjusted EBITDA and Segment Adjusted EBITDA margin. For information about the Company’s use of non-GAAP measures and reconciliations of these measures to the most directly comparable GAAP measures see “Non-GAAP Financial Measures” below.

Previous wording

On December 18, 2024, the Company announced that it had entered into an agreement to sell TFP to Toppan. This sale was completed on April 1, 2025. In accordance with applicable accounting guidance, the results of TFP are presented as discontinued operations in the Condensed Consolidated Statements of Income and, as such, have been excluded from both continuing operations and segment results for all periods presented in this Quarterly Report on Form 10-Q. Further, the Company reclassified the assets and liabilities of TFP as assets and liabilities of discontinued operations in the Condensed Consolidated Balance Sheets as of June 29, 2025 and December 31, 2024. The Condensed Consolidated

Current wording

On December 18, 2024, the Company announced that it had entered into an agreement to sell TFP to Toppan. This sale was completed on April 1, 2025. In accordance with applicable accounting guidance, the results of TFP are presented as discontinued operations in the Condensed Consolidated Statements of Income and, as such, have been excluded from both continuing operations and segment results for all periods prior to the completion of the sale presented in this Quarterly Report on Form 10-Q. Further, the Company reclassified the assets and liabilities of TFP as assets and liabilities of discontinued operations in the Condensed Consolidated Balance Sheets as of December 31, 2024. The Condensed Consolidated Statements of Comprehensive Income, Changes in Total Equity, and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. All amounts, percentages and disclosures for all periods presented in this Quarterly Report on Form 10-Q reflect only the continuing operations of Sonoco unless otherwise noted.

Previous wording

Consolidated net sales for the second quarter of 2025 were $1.9 billion, a $631.6 million or 49.4% increase from the second quarter of 2024. The increase was primarily driven by $601.3 million in net sales from the December 2024 Eviosys acquisition including the impact of foreign exchange rates and increased net sales of $44.7 million as a result of increased selling prices across the Industrial Paper Packaging and Consumer Packaging segments.

Current wording

Consolidated net sales for the third quarter of 2025 were $2.1 billion, a $776.5 million or 57.3% increase from the third quarter of 2024. The increase was primarily driven by $758.2 million in net sales from the Metal Packaging EMEA business following the December 2024 Eviosys acquisition, including the impact of foreign exchange rates, and $63.9 million from increased selling prices across the Industrial Paper Packaging and Consumer Packaging segments, partially offset by an overall decline in volume/mix of $39.9 million and the loss of $14.1 million in net sales related to the 2024 divestiture of two production facilities in China.

Previous wording

GAAP operating profit for the second quarter of 2025 was $175.7 million, an increase of 83.3% from the $95.8 million reported in the second quarter of 2024. The increase in GAAP operating profit was primarily due to a $121.0 million increase in gross profit, primarily related to the Eviosys acquisition, and a decrease in restructuring related costs of $8.2 million from the prior year, partially offset by an increase of $42.8 million in selling, general and administrative expenses. Adjusted Operating Profit for the second quarter of 2025 was $246.9 million, an increase of 74.0% from the $141.9 million reported for the same period in 2024.

Current wording

GAAP operating profit for the third quarter of 2025 was $195.0 million, an increase of 90.9% from the $102.1 million reported in the third quarter of 2024. The increase in GAAP operating profit was primarily due to a $167.5 million increase in gross profit, primarily attributable to the addition of the Metal Packaging EMEA business following the Eviosys acquisition, and the absence of a $30.0 million loss on the sale of two production facilities in China, partially offset by increased selling, general and administrative expenses of $61.1 million primarily related to the Eviosys acquisition and increased restructuring-related costs of $42.2 million. Adjusted Operating Profit for the third quarter of 2025 was $308.3 million, an increase of 77.6% from the $173.6 million reported for the same period in 2024.

Previous wording

GAAP net income attributable to Sonoco for the second quarter of 2025 increased to $493.4 million, or $4.96 per diluted share, compared to $90.8 million, or $0.92 per diluted share, for the second quarter of 2024. This increase was primarily due to the increase in GAAP operating profit as described above, and the increase in GAAP net income from discontinued operations due to the gain on the sale of the TFP divestiture. Adjusted net income attributable to Sonoco and Adjusted diluted earnings per share for the second quarter of 2025 were $136.1 million ($1.37 per diluted share), compared with $126.8 million ($1.28 per diluted share) for the same period in 2024.

Current wording

GAAP net income attributable to Sonoco for the third quarter of 2025 increased to $122.9 million, or $1.23 per diluted share, compared to $50.9 million, or $0.51 per diluted share, for the third quarter of 2024. This increase was primarily due to the increase in GAAP operating profit as described above, and the decrease in GAAP net income from discontinued operations due to the sale of TFP in 2025. Adjusted net income attributable to Sonoco and Adjusted diluted EPS for the third quarter of 2025 were $191.2 million ($1.92 per diluted share), compared with $147.9 million ($1.49 per diluted share) for the same period in 2024.

Previous wording

Cost of goods sold increased by $510.6 million, or 51.4%, in the second quarter of 2025 compared with the second quarter of 2024. This increase was primarily driven by the Eviosys acquisition. Gross profit margins decreased from 22.3% in the second quarter of 2024 to 21.3% in the second quarter of 2025.

Current wording

Cost of goods sold increased by $609.0 million, or 57.7%, in the third quarter of 2025 compared with the third quarter of 2024. This increase was primarily driven by additional costs attributable to the Metal Packaging EMEA business following the Eviosys acquisition. Gross profit margins decreased from 22.1% in the third quarter of 2024 to 21.9% in the third quarter of 2025.

Previous wording

Selling, general and administrative costs increased by $42.8 million, or 24.3%, and were 11.5% of sales in the second quarter of 2025, compared to 13.8% of sales in the second quarter of 2024. This increase reflects a $61.5 million impact from the Eviosys acquisition, partially offset by an $11.0 million decrease in acquisition, integration and divestiture related costs and $7.1 million decrease in employee-related costs.

Current wording

Selling, general and administrative costs increased by $61.1 million, or 38.3%, and were 10.4% of sales in the third quarter of 2025, compared to 11.8% of sales in the third quarter of 2024. This increase reflects a $70.8 million impact from the Eviosys acquisition, partially offset by declines of $6.4 million in acquisition, integration and divestiture-related costs and $3.8 million related to divested businesses.

Previous wording

Restructuring/Asset impairment charges totaled $9.8 million in the second quarter of 2025, compared with $18.0 million during the same period last year. The decrease was primarily related to the higher cost of restructuring actions in 2024, including the closure of a metal plant in Memphis, Tennessee, part of the Consumer Packaging segment. Additional information regarding restructuring and asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

Restructuring/Asset impairment charges totaled $48.4 million in the third quarter of 2025, compared with $6.1 million during the same period last year. The increase was primarily related to the higher cost of restructuring actions in 2025, including restructuring projects related to Metal Packaging EMEA, part of the Consumer Packaging segment, and the closure of the Atizapán, Mexico paper mill, part of the Industrial Paper Packaging segment. Additional information regarding restructuring and asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

Net interest expense for the second quarter of 2025 increased to $60.2 million, compared with $25.6 million during the second quarter of 2024. The increase was primarily due to higher year-over-year debt levels resulting from financing transactions related to the Eviosys acquisition.

Current wording

Net interest expense for the third quarter of 2025 increased to $56.6 million, compared with $55.1 million during the third quarter of 2024, primarily driven by the Eviosys acquisition.

Previous wording

The effective tax rates for continuing operations reflected in GAAP net income and Adjusted net income attributable to Sonoco in the second quarter of 2025 were 37.3% and 25.6%, respectively, compared with 23.3% and 26.2%, respectively, in the corresponding prior year quarter. The increase in the GAAP effective tax rate was primarily due to tax rate changes on deferred taxes and various other unfavorable tax adjustments.

Current wording

The effective tax rates on GAAP income from continuing operations before income taxes and Adjusted income from continuing operations before income taxes in the third quarter of 2025 were 6.0% and 22.9%, respectively, compared with 35.2% and 21.1%, respectively, in the corresponding prior year quarter. The decrease in the GAAP effective tax rate was primarily from the recording of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale.

Previous wording

The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. The following table summarizes net sales attributable to each of the Company’s segments and the All Other group of businesses for the second quarters of 2025 and 2024:

Current wording

The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. The following table summarizes net sales attributable to each of the Company’s segments and the All Other group of businesses for the third quarters of 2025 and 2024:

Previous wording

The following table summarizes operating profit attributable to each of the Company’s reportable segments, the All Other group of businesses, and Corporate-related activity during the second quarters of 2025 and 2024:

Current wording

The following table summarizes operating profit attributable to each of the Company’s reportable segments, the All Other group of businesses, and Corporate-related activity during the third quarters of 2025 and 2024:

Previous wording

Segment net sales increased $644.0 million over the corresponding prior year quarter primarily as a result of $601.3 million of net sales, including the impact of foreign exchange rates, from the December 2024 Eviosys acquisition, as well as increased volume/mix of $24.1 million and higher sales prices of $14.8 million.

Current wording

Segment net sales increased $775.9 million over the corresponding prior year quarter primarily as a result of $758.2 million of net sales, including the impact of foreign exchange rates, attributable to Metal Packaging EMEA following the December 2024 acquisition of Eviosys, and price increases of $37.8 million implemented to offset the effects of inflation and tariffs, partially offset by softer volumes across the segment.

Previous wording

The following discussion provides a review of results for the six-month period ended June 29, 2025 compared with the six-month period ended June 30, 2024.

Current wording

The following discussion provides a review of results for the nine-month period ended September 28, 2025 compared with the nine-month period ended September 29, 2024.

Previous wording

Consolidated net sales for the first six months of 2025 were $3.6 billion, a $1.0 billion or 39.9% increase from the same period last year. The increase was driven by $1.1 billion in net sales from the December 2024 Eviosys acquisition, including the impact of foreign currency exchange rates, and a $66.8 million favorable impact as a result of selling price increases across the Industrial Paper Packaging and Consumer Packaging segments. These increases were partially offset by the year-over-year loss of $63.1 million in sales due to divestitures not accounted for as discontinued operations.

Current wording

Consolidated net sales for the first nine months of 2025 were $5.8 billion, a $1.8 billion or 45.9% increase from the same period last year. The increase was driven by $1.8 billion in net sales attributable to Metal Packaging EMEA following the December 2024 Eviosys acquisition, including the impact of foreign currency exchange rates, and a $132.0 million favorable impact as a result of selling price increases across the business. These increases were partially offset by the year-over-year loss of $78.4 million in sales due to divestitures (excluding the divestiture of TFP, which is accounted for as discontinued operations) and an unfavorable impact from decline in volume/mix of $49.3 million.

Previous wording

GAAP operating profit for the first six months of 2025 was $302.5 million, an increase of 79.7% from the $168.4 million reported for the first six months of 2024. The increase in GAAP operating profit reflected a $203.6 million increase in gross profit primarily related to the Eviosys acquisition and a decrease in restructuring related costs of $25.6 million from the prior year, partially offset by an increase of $84.3 million in selling, general and administrative expenses, including the amortization of intangible assets, and acquisition and integration costs. Adjusted operating profit for the first six months of 2025 was $459.7 million, an increase of 68.7% from the $272.4 million reported for the same period in 2024.

Current wording

GAAP operating profit for the first nine months of 2025 was $497.5 million, an increase of 83.9% from the $270.5 million reported for the first nine months of 2024. The increase in GAAP operating profit reflected a $371.1 million increase in gross profit primarily attributable to Metal Packaging EMEA following the Eviosys acquisition and the absence of $18.0 million of net losses related to divestitures, partially offset by increases of $145.4 million in selling, general and administrative expenses, including the amortization of intangible assets, and $16.6 million of restructuring costs. Adjusted operating profit for the first nine months of 2025 was $768.0 million, an increase of 72.2% from the $446.0 million reported for the same period in 2024.

Previous wording

GAAP net income attributable to Sonoco for the first six months of 2025 increased to $547.9 million, or $5.51 per diluted share, compared to $156.0 million, or $1.57 per diluted share, reported for the same period of 2024. This increase reflects the increase in GAAP operating profit as described above and the gain on sale from the TFP divestiture. Adjusted net income attributable to Sonoco and Adjusted diluted earnings per share for the six-month period ended June 29, 2025 decreased 14.6% to $273.0 million, or $2.74 per diluted share, from $238.3 million, or $2.40 per diluted share, in the six-month period ended June 30, 2024.

Current wording

GAAP net income attributable to Sonoco for the first nine months of 2025 increased to $670.8 million, or $6.74 per diluted share, compared to $206.9 million, or $2.09 per diluted share, reported for the same period of 2024. This increase reflects the increase in GAAP operating profit as described above and the gain on sale from the TFP divestiture, offset by lower sales following the completion of the TFP divestiture. Adjusted net income attributable to Sonoco and Adjusted diluted EPS for the nine-month period ended September 28, 2025 increased 20.2% to $464.1 million, or $4.66 per diluted share, from $386.1 million, or $3.89 per diluted share, in the nine-month period ended September 29, 2024.

Previous wording

Cost of goods sold increased by $828.7 million, or 40.8%, in the first six months of 2025 compared with the first six months of 2024. This increase was primarily driven by the Eviosys acquisition, partially offset by lower materials pricing and the decline in costs from the sale of the Protexic business in April 2024. Gross profit margins were 21.0% for the first six months of 2025 and 21.5% for the first six months of 2024.

Current wording

Cost of goods sold increased by $1.4 billion, or 46.6%, in the first nine months of 2025 compared with the first nine months of 2024. This increase was primarily driven by increased costs attributable to Metal Packaging EMEA following the Eviosys acquisition, partially offset by lower costs after the sales of the Protexic business and two production facilities in China in 2024. Gross profit margins were 21.3% for the first nine months of 2025 and 21.7% for the first nine months of 2024.

Previous wording

Selling, general and administrative costs for the first six months of 2025 increased $84.3 million, or 24.5%, year over year. This increase reflected $99.5 million of additional costs related to the Eviosys acquisition, partially offset by an $11.0 million decrease in employee-related costs and a $7.2 million decrease in acquisition, integration and divestiture costs.

Current wording

Selling, general and administrative costs for the first nine months of 2025 increased $145.4 million, or 28.9%, year over year. This increase reflected $188.5 million of higher costs attributable to Metal Packaging EMEA following the Eviosys acquisition, partially offset by $14.5 million lower costs related to divested businesses, a $13.7 million decrease in acquisition, integration and divestiture-related costs and decreased labor and consulting fees.

Previous wording

Restructuring/Asset impairment charges totaled $23.3 million during the first six months of 2025, compared with $49.0 million during the same period last year. The decrease was primarily related to the higher cost of restructuring actions in 2024, including the closures of a paper mill in Sumner, Washington, part of the Industrial Paper Packaging segment, and a metal plant in Memphis, Tennessee, part of the Consumer Packaging segment. Additional information regarding restructuring and asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

Restructuring/Asset impairment charges totaled $71.7 million during the first nine months of 2025, compared with $55.1 million during the same period last year. The increase was primarily related to the higher cost of restructuring actions in 2025, including Metal Packaging EMEA restructuring projects in the Consumer Packaging segment and the closure of the Atizapán, Mexico paper mill in the Industrial Paper Packaging segment. Additional information regarding restructuring and asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

Loss on divestiture of business of $6.3 million during the first six months of 2025 reflected losses from the sales of the Company’s tube and core operations in Venezuela and the Asheville recycling operations, partially offset by a gain from the sale of a small construction tube operation in France, all part of the Industrial Paper Packaging segment. Gain on divestiture of businesses during the first six months of 2024 resulted from the sales of the Protexic and S3 businesses. See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Current wording

Loss on divestiture of business of $9.3 million during the first nine months of 2025 reflected losses from the sales of the Company’s tube and core operations in Venezuela and the recycling operations in Asheville and a charge on the pending sale of ThermoSafe, partially offset by a gain from the sale of a small construction tube operation in France. Loss on divestiture of business during the first nine months of 2024 primarily resulted from the sales oftwo production facilities in China. See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Previous wording

Other expense, net during the first six months of 2025 was $13.1 million, reflecting charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle primarily within our Consumer Packaging segment. Other income, net during the first six months of 2024 reflected the $5.9 million gain upon the fair value remeasurement of one of the Company’s affiliate investments. See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information related to the 2024 gain.

Current wording

Other expense, net during the first nine months of 2025 was $20.6 million, reflecting charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle primarily within our Consumer Packaging segment. Other income, net during the first nine months of 2024 reflected the $5.9 million gain upon the fair value remeasurement of one of the Company’s affiliate investments. See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information related to the 2024 gain.