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- **Revenue and Margin Records**: 57% net sales growth to $2.1B, 37% EBITDA increase to $386M, and 18.1% margin, driven by consumer packaging acquisition and industrial productivity.
- **Strategic Divestiture**: ThermoSafe sale to reduce leverage to 3.4x, enabling future share buybacks.
- **2026 Synergy Target**: $100M annual savings from EMEA integration, with $60M from procurement and $20M from support functions.
- **European Challenges**: Q4 EMEA volumes expected to decline, with actions to optimize footprint and reduce costs.
- **Industrial Resilience**: U.S. industrial packaging margins expanded 360 bps, supported by price discipline and capacity rationalization.

**【CEO Summary Section】**
- **Record Performance**: Q3 2025 net sales grew 57% to $2.1 billion, with adjusted EBITDA up 37% to $386 million. Adjusted EBITDA margin improved to 18.1%, driven by strong pricing and productivity.
- **Consumer Packaging Growth**: Consumer segment sales surged 117% due to the EMEA metal packaging acquisition, with adjusted EBITDA up 112%. Food can volumes in the U.S. rose 5%, offsetting volume softness in Europe.
- **Industrial Packaging Strength**: Industrial segment operating profit increased 28%, with EBITDA up 21%. Margins expanded 360 basis points, benefiting from price discipline and footprint rationalization.
- **Strategic Divestiture**: Sale of ThermoSafe to Arsenal Capital for up to $72 million, expected to close in Q4, reducing net leverage to ~3.4x.
- **2026 Outlook**: Targeting $100 million in annual synergies from EMEA integration, with $40 million realized by year-end 2025. Focus on cost optimization, including $25 million in stranded cost savings.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EPS of $1.92, up 29% YoY. Operating cash flow of $292 million, up 80% YoY. Capital spending tracking below $360 million annual target.
- **Segment Performance**: Consumer Packaging EBITDA up 112% due to acquisition and price cost management. Industrial Packaging margins expanded 360 bps, driven by productivity and fixed cost savings.
- **Guidance Update**: Narrowed net sales guidance to $7.8-$7.9 billion, adjusted EBITDA to $1.3-$1.35 billion, and EPS to $5.65-$5.75, reflecting European market softness.

**【Q&A Highlights】**
- **European Market Challenges**: EMEA food can volumes expected to decline in Q4 due to macroeconomic headwinds and seafood availability issues. Actions include footprint rightsizing and procurement synergies.
- **Synergy Progress**: $40 million in annual synergies realized year-to-date, targeting $100 million by end-2026. $60 million from procurement, $20 million from support functions, and $20 million from paper can supply chain.
- **Capital Allocation**: Debt reduction prioritized, with share buybacks contingent on leverage targets. 2026 capital spending to focus on growth projects in pet and seafood packaging in Europe.
- **ThermoSafe Impact**: Q4 guidance includes $50 million contribution from ThermoSafe, with proceeds used to reduce debt and lower interest expense.
- **Industrial Packaging Resilience**: U.S. industrial packaging expected to remain strong, with OCC price management and capacity rationalization (e.g., 25,000-ton mill closure in Mexico).

Sonoco Products (SON)-23 Oct 25-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SON

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