Sonoco Products 2025 Q1 Earnings Revenue Surges 30.6% Amid Net Income Decline

Generated by AI AgentAinvest Earnings Report Digest
Wednesday, Apr 30, 2025 5:36 am ET1min read
Sonoco Products (SON) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. demonstrated robust revenue growth, increasing by 30.6% to $1.71 billion compared to Q1 2024. However, the company faced a decline in net income, recording $54.49 million, down 16.5% from the previous year. Despite the net income drop, Sonoco maintained its 20-year streak of profitability, showcasing operational resilience. Sonoco reaffirmed its full-year 2025 guidance, projecting adjusted EPS between $6.00 and $6.20, and adjusted EBITDA ranging from $1.3 billion to $1.4 billion, in line with expectations.

Revenue

Sonoco Products experienced a substantial revenue increase of 30.6% in Q1 2025, reaching $1.71 billion, compared to $1.31 billion in the same quarter of the previous year.

Earnings/Net Income

Sonoco Products' EPS declined 16.8% to $0.55 in 2025 Q1 from $0.66 in 2024 Q1, while net income fell 16.5% to $54.49 million from $65.27 million. The EPS performance was disappointing.

Post Earnings Price Action Review

The earnings report metrics for Sonoco Products (SON) have shown varied impacts on the stock price. While specific revenue data's influence on the stock price remains unclear, it's likely significant as an indicator of sales performance and growth. Despite the net income decline, the market tends to respond positively, evidenced by a 3-Day win rate of 55.00%. EPS figures drive a sustained positive market reaction with a 30-Day win rate of 70.00%, reflecting the market's favorable perception of financial health. Investors should consider these factors when evaluating the potential impact of earnings reports on SON's stock price.

CEO Commentary

“Our first quarter results demonstrated the strength of the new Sonoco as our global team achieved record top-line and adjusted EBITDA performance, growing 31% and 38%, respectively, while adjusted earnings per share rose 23% despite higher-than-expected interest expense, taxes, and the negative impact of currency exchange rates,” said Howard Coker, President and Chief Executive Officer.

Guidance

Sonoco reaffirmed its full-year 2025 guidance, targeting adjusted EPS of $6.00 to $6.20 and adjusted EBITDA of $1.3 billion to $1.4 billion. Cash flow from operating activities is projected to be between $800 million and $900 million.

Additional News

Sonoco Products completed the sale of its Thermoformed and Flexibles Packaging business to TOPPAN Holdings Inc. for $1.8 billion on April 1, 2025. This strategic move allowed Sonoco to utilize approximately $1.5 billion of the after-tax proceeds to reduce debt, aligning with the company’s strategy to streamline its portfolio and enhance financial stability. The divestiture marks a significant step in Sonoco's transformation into a simpler, stronger, and more sustainable company. Additionally, Sonoco raised its quarterly dividend to $0.53, marking 100 consecutive years of dividend payments, reflecting confidence in its financial resilience.

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