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NEW YORK - Sonoco Products Company (NYSE:SON) reported first quarter results that fell short of expectations, but saw its shares rise 2.6% as the packaging company’s full-year guidance came in ahead of Wall Street expectations.
The Hartsville, South Carolina-based company posted adjusted earnings of $1.38 per share for Q1, missing analyst estimates of $1.42. Revenue of $1.71 billion also fell short of the $2.02 billion consensus forecast.
However, Sonoco reaffirmed its full-year 2025 outlook, projecting adjusted earnings per share of $6.00 to $6.20, above the $5.93 analyst consensus. The company also expects cash flow from operations of $800 million to $900 million and adjusted EBITDA of $1.3 billion to $1.4 billion for the year.
"Our first quarter results demonstrated the strength of the new Sonoco as our global team achieved record top-line and adjusted EBITDA performance," said Howard Coker, President and CEO.
Q1 net sales grew 30.6% YoY to $1.71 billion, driven by the acquisition of Eviosys in December 2024. Adjusted EBITDA rose 38% to $338 million.
The Consumer Packaging (NYSE:PKG) segment saw sales surge 83.4% and adjusted EBITDA jump 127%, benefiting from the Eviosys deal and strong organic growth in metal packaging volumes.
Sonoco completed the $1.8 billion sale of its Thermoformed and Flexibles Packaging business on April 1, using $1.5 billion in after-tax proceeds to reduce debt.
The company maintained its target of achieving a net leverage ratio of 3.0x to 3.3x by the end of 2026.
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