Sonoco Products Company Is Capitalizing On Favorable Price-Cost Dynamics—Is Margin Expansion To Be Expected In The Coming Years?

Sonoco Products Company recently conducted its first-quarter earnings call for 2025, revealing critical insights into its operational and financial performance. The company’s results highlighted an overall impressive financial performance driven by strategic acquisitions and divestitures amidst ongoing global economic challenges. Sonoco’s financial results for the quarter showed robust growth. Net sales increased by 31% to $1.7 billion, accompanied by a remarkable 38% increase in adjusted EBITDA, with margins improving by 170 basis points to 16.6%. Adjusted EPS rose by 23%, reaching $1.38, primarily driven by favorable pricing environments and efficiency gains. The Consumer Packaging segment saw a significant 127% rise in adjusted EBITDA, thanks largely to the full integration of the Eviosys acquisition, with noted strength in legacy metal and rigid paper can businesses. Meanwhile, the Industrial Packaging segment achieved a modest 6% improvement in adjusted EBITDA despite seeing a low single-digit decline in volume.