What changed in this filing

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Item 1. Financial Statements

2025-07-28 compared with 2025-05-02 · 437 added, 229 removed, 952 unchanged (41% of the section changed)

41 unchanged sentences

Authorized 300,000 shares;

98,628 and 98,260 shares issued and outstanding at March 30, 2025 and December 31, 2024, respectively

98,628 and 98,260 shares issued and outstanding at June 29, 2025 and December 31, 2024, respectively

Capital in excess of stated value 183,339 183,250

Accumulated other comprehensive loss ( 324,569 ) ( 502,734 )

Accumulated other comprehensive income/(loss) 17,363 ( 502,734 )

Retained earnings 3,027,647 2,583,923

8 unchanged sentences

(Dollars and shares in thousands except per share data)

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Net sales $ 1,910,441 $ 1,278,801 $ 3,619,669 $ 2,587,437

3 unchanged sentences

Restructuring/Asset impairment charges 9,752 17,963 23,333 48,973

Loss on divestiture of business and other assets ( 4,183 ) —

(Loss)/Gain on divestiture of business ( 2,083 ) 4,478 ( 6,266 ) 4,478

Operating profit 175,667 95,811 302,527 168,383

Other expense, net ( 6,517 ) —

Other (expense)/income, net ( 6,559 ) 5,867 ( 13,076 ) 5,867

Non-operating pension costs 2,982 4,170 6,103 7,465

8 unchanged sentences

Net income 493,199 90,951 547,688 156,224

Net income from continuing operations attributable to noncontrolling interests ( 60 ) ( 48 )

Net loss/(income) from continuing operations attributable to noncontrolling interests 224 ( 110 ) 164 ( 158 )

Net income from discontinued operations attributable to noncontrolling interests — ( 30 ) — ( 78 )

17 unchanged sentences

(Dollars in thousands)

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Net income $ 493,199 $ 90,951 $ 547,688 $ 156,224

5 unchanged sentences

Comprehensive income 836,910 57,961 1,069,539 103,660

232,629 45,699

Net income attributable to noncontrolling interests-continuing operations ( 60 ) ( 48 )

Net loss/(income) attributable to noncontrolling interests-continuing operations 224 ( 110 ) 164 ( 158 )

Net income attributable to noncontrolling interests-discontinued operations — ( 30 ) — ( 78 )

Other comprehensive loss attributable to noncontrolling interests 25 467

Other comprehensive (income)/loss attributable to noncontrolling interests ( 1,779 ) 42 ( 1,754 ) 509

Comprehensive income attributable to Sonoco $ 835,355 $ 57,863 $ 1,067,949 $ 103,933

7 unchanged sentences

Comprehensive

Loss Retained

Income/(Loss) Retained

Earnings Noncontrolling

7 unchanged sentences

Other comprehensive income/(loss) 178,140 178,165 ( 25 )

Divestiture of noncontrolling interests ( 637 ) ( 637 )

Divestiture of non-controlling interest ( 637 ) ( 637 )

Dividends ( 51,558 ) ( 51,558 )

4 unchanged sentences

March 30, 2025 $ 2,461,932 98,628 $ 7,175 $ 178,778 $ ( 324,569 ) $ 2,586,794 $ 13,754

Net income/(loss) 493,199 493,423 ( 224 )

Other comprehensive income/(loss):

Translation gain 339,452 337,673 1,779

Defined benefit plan adjustment, net of tax 2,935 2,935

Derivative financial instruments, net of tax 1,324 1,324

Other comprehensive income 343,711 341,932 1,779

Dividends ( 52,570 ) ( 52,570 )

Issuance of stock awards 298 — 298

Shares repurchased ( 3 ) — ( 3 )

Share-based compensation 4,145 4,145

Other 121 121

June 29, 2025 $ 3,250,833 3,250,833 98,628 $ 7,175 $ 183,339 $ 17,363 $ 3,027,647 $ 15,309

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)

SONOCO PRODUCTS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF

CHANGES IN TOTAL EQUITY (unaudited)

(Dollars and shares in thousands)

Total Equity Common Shares Capital in

17 unchanged sentences

March 31, 2024 $ 2,427,482 98,255 $ 7,175 $ 159,343 $ ( 385,369 ) $ 2,639,209 $ 7,124

Net income 90,951 90,811 140

Other comprehensive (loss)/income:

Translation loss ( 33,408 ) ( 33,366 ) ( 42 )

Defined benefit plan adjustment, net of tax 2,079 2,079

Derivative financial instruments, net of tax ( 1,661 ) ( 1,661 )

Other comprehensive loss ( 32,990 ) ( 32,948 ) ( 42 )

Dividends ( 51,347 ) ( 51,347 )

Issuance of stock awards 181 4 181

Shares repurchased ( 23 ) ( 1 ) ( 23 )

Share-based compensation 6,656 6,656

Other 957 957

June 30, 2024 $ 2,441,867 98,258 $ 7,175 $ 167,114 $ ( 418,317 ) $ 2,678,673 $ 7,222

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)

2 unchanged sentences

(Dollars in thousands)

Three Months Ended

March 30, 2025 March 31, 2024

Six Months Ended

June 29, 2025 June 30, 2024

Cash Flows from Operating Activities:

2 unchanged sentences

Asset impairments 6,329 22,956

Depreciation, depletion and amortization 121,492 90,559

Depreciation and amortization 250,967 180,045

Share-based compensation expense 9,973 14,981

1 unchanged sentence

Cash dividends from affiliated companies 5,731 5,458

Net loss on disposition of assets 277 18

Net loss on divestiture of business and other assets 4,183 —

Net loss/(gain) on disposition of assets 635 ( 957 )

Net gain on divestiture of business and other assets ( 619,507 ) ( 4,478 )

Gain on remeasurement of investment in affiliated companies — ( 6,012 )

Pension and postretirement plan expense 8,731 8,843

12 unchanged sentences

Cost of acquisitions, net of cash acquired 1

16,528 ( 3,281 )

Proceeds from the sale of business, net 1,814,930 81,517

Proceeds from the sale of assets, net 1,090 333

Proceeds from settlement of net investment hedge — 9,068

Investment in affiliated companies — ( 10,000 )

Other net investing activities 242 5,448

Net cash used by investing activities ( 88,582 ) ( 81,732 )

Net cash provided/(used) by investing activities 1,645,307 ( 96,609 )

Cash Flows from Financing Activities:

2 unchanged sentences

Net change in commercial paper 354,600 28,000

Net increase/(decrease) in book cash overdrafts 12,448 ( 1,614 )

Net increase in book cash overdrafts 6,476 3,725

Payment of loan financing costs — ( 19,000 )

Dividends paid to noncontrolling interests ( 243 ) —

1 unchanged sentence

Payments for share repurchases ( 10,576 ) ( 9,162 )

Net cash provided/(used) by financing activities 29,589 ( 62,671 )

Net cash used by financing activities ( 1,776,777 ) ( 177,991 )

Effects of Exchange Rate Changes on Cash 32,863 ( 12,593 )

Net (Decrease)/Increase in Cash and Cash Equivalents ( 251,345 ) 20,276

Net Decrease in Cash and Cash Equivalents ( 113,260 ) ( 11,704 )

Cash and cash equivalents at beginning of period 443,060 151,937

Cash and cash equivalents at end of period $ 329,800 $ 140,233

1 During 2025, the Company received $ 16,528 in a final net working capital settlement related to the acquisition of Eviosys .

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)

3 unchanged sentences

Basis of Interim Presentation

On April 1, 2025, subsequent to the three-month period ended March 30, 2025, Sonoco Products Company (the “Company” or “Sonoco”) completed the previously announced sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”) to TOPPAN Holdings Inc.

(“Toppan”) for approximately $ 1,800,000 on a cash-free and debt-free basis and subject to customary adjustments.

On April 1, 2025, Sonoco Products Company (the “Company” or “Sonoco”) completed the previously announced sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”) to TOPPAN Holdings Inc.

(“Toppan”) for $ 1,807,493 on a cash-free and debt-free basis and subject to customary adjustments.

In accordance with applicable accounting guidance, the results of TFP, previously part of the Company’s Consumer Packaging segment, 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 March 30, 2025 and December 31, 2024.

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.

2 unchanged sentences

In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein.

Operating results for the three-month period ended March 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Operating results for the three- and six-month periods ended June 29, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

1 unchanged sentence

As disclosed in Note 1 , the Company completed the previously announced sale of TFP o n April 1, 2025 .

The following table presents the assets and liabilities that are classified as discontinued operations in the Condensed Consolidated Balance Sheets as of March 30, 2025 and December 31, 2024:

The following table presents the assets and liabilities that are classified as discontinued operations in the Condensed Consolidated Balance Sheets as of December 31, 2024:

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

2025 December 31,

Cash and cash equivalents $ 12,050

Trade accounts receivable, net of allowances of $ 2,190 at March 30, 2025 and $ 2,582 at December 31, 2024

213,627 209,379

Trade accounts receivable, net of allowances of $ 2,582 at December 31, 2024

Other receivables 46,001

4 unchanged sentences

Current assets of discontinued operations $ 450,874

Property, plant and equipment, net of accumulated depreciation of $ 457,621 at March 30, 2025 and $ 465,923 at December 31, 2024

271,237 262,662

Property, plant and equipment, net of accumulated depreciation of $ 465,923 at December 31, 2024

Goodwill 502,621

Other intangible assets, net of accumulated amortization of $ 206,601 at March 30, 2025 and $ 206,437 and December 31, 2024

104,428 103,593

Other intangible assets, net of accumulated amortization of $ 206,437 and December 31, 2024

Long-term deferred income taxes 262

14 unchanged sentences

(Dollars and shares in thousands except per share data)

The following table presents key components of “Net income from discontinued operations” for the three months ended March 30, 2025 and March 31, 2024:

Three Months Ended

March 30, 2025 March 31, 2024

The following table presents key components of “Net income from discontinued operations” for the three- and six-month periods ended June 29, 2025 and June 30, 2024:

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Net sales $ — $ 344,678 $ 320,678 $ 673,585

3 unchanged sentences

Restructuring/Asset impairment charges — 1,287 426 1,895

Gain on divestiture of business 625,773 — 625,773 —

Operating profit 625,773 44,561 663,564 84,442

14 unchanged sentences

Diluted $ 4.27 $ 0.34 $ 4.32 $ 0.64

The following table presents significant cash flow items from discontinued operations for the three months ended March 30, 2025 and March 31, 2024:

Three Months Ended

March 30, 2025 March 31, 2024

Depreciation, depletion and amortization (a)

The following table presents significant cash flow items from discontinued operations for the six months ended June 29, 2025 and June 30, 2024:

Six Months Ended

June 29, 2025 June 30, 2024

Depreciation and amortization (a)

$ ( 311 ) $ 31,030

Capital expenditures $ ( 5,572 ) $ ( 12,569 )

Purchases of property, plant and equipment $ ( 5,572 ) $ ( 27,567 )

(a) Subsequent to entering the agreement on December 8, 2024 to sell TFP, depreciation was not recognized on TFP’s property, plant and equipment, and amortization was not recognized on TFP’s other intangible assets or right of use assets-operating leases, in accordance with Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.”

20 unchanged sentences

ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted.

The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

During the three-month period ended March 30, 2025, there were no other newly issued or newly applicable accounting pronouncements that had, or are expected to have, a material impact on the Company’s condensed consolidated financial statements.

Further, at March 30, 2025, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s condensed consolidated financial statements.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The Company will begin providing the required income tax disclosures starting with its Annual Report on Form 10-K for the year ending December 31, 2025.

During the six-month period ended June 29, 2025, there were no other newly issued or newly applicable accounting pronouncements that had, or are expected to have, a material impact on the Company’s condensed consolidated financial statements.

Further, at June 29, 2025, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s condensed consolidated financial statements.

Acquisitions and Divestitures

1 unchanged sentence

On December 4, 2024, the Company completed the acquisition of all issued and outstanding equity interests in Titan Holdings I B.V.

(“Eviosys”) from an affiliate of KPS Capital Partners, LP for net cash consideration of $ 3,789,826 .

Eviosys is a global supplier of metal packaging that produces food cans and ends, aerosol cans, metal closures and promotional packaging with a large metal food can manufacturing footprint in the Europe, Middle East, and Africa region.

(“Eviosys”) from an affiliate of KPS Capital Partners, LP for net cash consideration of $ 3,773,298 , net of a final working capital settlement for which the Company received $ 16,528 during the second quarter of 2025, Eviosys is a global supplier of metal packaging that produces food cans and ends, aerosol cans, metal closures and promotional packaging with a large metal food can manufacturing footprint in the Europe, Middle East, and Africa region.

The Company funded the Eviosys acquisition, including related fees and expenses, with the net proceeds from the registered public offering of senior unsecured notes, borrowings from two term loan facilities, and cash on hand.

1 unchanged sentence

The financial results of Eviosys are included in the Company’s Consumer Packaging segment.

The Company’s preliminary fair values of the assets acquired and liabilities assumed in the acquisition of Eviosys, are as follows:

Initial Allocation Measurement Period Adjustments Preliminary Allocation

The Company’s initial preliminary fair values of the assets acquired and liabilities assumed in the Eviosys acquisition, as well as updated preliminary fair values reflecting adjustments made during the measurement period, are as follows:

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Initial Preliminary Allocation

Measurement Period Adjustments Updated Preliminary Allocation

Trade accounts receivable $ 300,385 — $ 300,385

14 unchanged sentences

Pension and other postretirement benefits ( 51,849 ) — ( 51,849 )

Long-term debt — ( 34 ) ( 34 )

Deferred income taxes ( 599,941 ) 32,947 ( 566,994 )

3 unchanged sentences

Net assets acquired $ 3,789,826 $ ( 16,528 ) $ 3,773,298

The preliminary allocation of the purchase price of Eviosys to the tangible and intangible assets acquired and liabilities assumed, as reflected in the table above, is based on the Company’s preliminary allocations of their respective fair values, based on information currently available.

The allocation of the purchase price of Eviosys to the tangible and intangible assets acquired and liabilities assumed, as reflected under the heading “Updated Preliminary Allocation” in the table above, is based on the Company’s preliminary estimates of their respective fair values, based on information currently available.

Management is continuing to finalize its valuation of certain assets and liabilities including, but not limited to:

property, plant and equipment;

inventories, property, plant and equipment;

other intangible assets;

operating leases;

and deferred income taxes, and expects to complete its valuations within one year of the date of acquisition.

Factors comprising goodwill for Eviosys, none of which is expected to be deductible for income tax purposes, include increased access to certain markets and the value of the assembled workforce.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The following table presents the Company’s pro forma consolidated results for the three-month period ended March 31, 2024, assuming the acquisition of Eviosys had occurred on January 1, 2023.

The following table presents the Company’s pro forma consolidated results for the three- and six-month periods ended June 30, 2024, assuming the acquisition of Eviosys had occurred on January 1, 2023.

This pro forma information is presented for informational purposes only and does not purport to represent the results of operations that would have been achieved if the acquisition had been completed at the beginning of 2023, nor is it necessarily indicative of future consolidated results.

Pro Forma Supplemental Information Three Months Ended

Consolidated March 31, 2024

Pro Forma Supplemental Information Three Months Ended Six Months Ended

Consolidated June 30, 2024 June 30, 2024

Net sales $ 1,880,085 $ 3,719,655

1 unchanged sentence

Net income attributable to Sonoco 1

$ 111,725 $ 149,584

1 Includes results of discontinued operations

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The pro forma information above does not project the Company’s expected results for any future period and gives no effect to any future synergistic benefits that may result from the combination or the costs of integrating the acquired operations with those of the Company.

Pro forma information for the period ended March 31, 2024 includes adjustments to depreciation, amortization, and income taxes based upon the preliminary fair value allocation of the purchase price to Eviosys’ tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2023.

Pro forma information for the period ended June 30, 2024 includes adjustments to depreciation, amortization, and income taxes based upon the updated fair value allocation of the purchase price to Eviosys’ tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2023.

Interest expense on the additional debt issued by the Company to fund the acquisition and retention bonuses incurred related to the acquisition are also included in the pro forma information as if the acquisition had occurred on January 1, 2023.

Acquisition-related costs are excluded from 2024 pro forma net income and are instead reflected in 2023 pro forma net income as though the acquisition had occurred on January 1, 2023.

Divestiture of Businesses

On April 1, 2025, subsequent to the three-month period ended March 30, 2025, the Company completed the previously announced sale of its TFP businesses to Toppan for approximately $ 1,800,000 on a cash-free and debt-free basis and subject to customary adjustments.

The Company preliminarily expects to recognize an estimated gain on the divestiture of TFP of at least $ 375,000 , net of tax, in the second quarter of 2025.

Acquisition-related costs are excluded from 2024 pro forma net income and were instead reflected in 2023 pro forma net income as though the acquisition had occurred on January 1, 2023.

Other Acquisitions

On June 1, 2024, the Company completed the purchase of a small tube and paper cone manufacturer in Brazil for $ 2,660 .

The financial results of this business are included in the Company’s Industrial Paper Packaging segment.

TFP Divestiture

On April 1, 2025, the Company completed the sale of TFP to Toppan for net cash consideration of $ 1,807,493 on a cash-free and debt-free basis and subject to customary adjustments.

This sale was the result of the Company’s continuing evaluation of its business portfolio and was consistent with the Company’s strategic and investment priorities.

In connection with the TFP divestiture, the Company wrote off net assets totaling $ 1,108,560 , reclassified $ 47,955 of cumulative translation adjustment losses from accumulated other comprehensive income/(loss) and incurred transaction fees of $ 25,205 , re sulting in a net pretax gain of $ 625,773 .

The Company recognized a related tax provision of $ 201,225 , for an after-tax gain of $ 424,548 .

The after tax gain is included in “Net income from discontinued operations” in the Company’s Condensed Consolidated Statements of Income for the three- and six-month periods ended June 29, 2025.

The majority of cash proceeds generated from this transaction were used to repay debt, as further described in Note 10.

Other Divestitures

On April 30, 2025, the Company completed the sale of a recycling facility in Asheville, NC, part of the Industrial Paper Packaging segment, for cash proceeds of $ 3,924 .

The sale resulted in a loss of $ 2,083 , which is included in “(Loss)/Gain on divestiture of business” in the Company’s Condensed Consolidated Statements of Income.

On March 2, 2025, the Company completed the sale of its tube and core operations in Venezuela, part of the Industrial Paper Packaging segment, in exchange for a receivable in the amount of $ 145 .

The sale resulted in a loss of $ 5,390 , including $ 3,792 of cumulative translation losses that were reclassified from accumulated other comprehensive income.

This loss is included in “Loss on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income.

This loss is included in “(Loss)/Gain on divestiture of business” in the Company’s Condensed Consolidated Statements of Income.

In February 2025, the remaining $ 2,000 of proceeds from the July 1, 2023 sale of the Company’s U.S.

BulkSak business were released to the Company from escrow.

On January 17, 2025, the Company completed the sale of a small construction tube operation in France, part of the Industrial Paper Packaging segment, for cash proceeds of $ 1,513 and recognized a gain of $ 1,207 , which is included in “Loss on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income.

The sales of the operations in Venezuela and France do not represent a strategic shift for the Company and did not have a major effect on its operations or financial results.

On January 17, 2025, the Company completed the sale of a small construction tube operation in France, part of the Industrial Paper Packaging segment, for cash proceeds of $ 1,513 and recognized a gain of $ 1,207 , which is included in “(Loss)/Gain on divestiture of business” in the Company’s Condensed Consolidated Statements of Income.

On April 1, 2024, the Company completed the sale of its Protective Solutions business (“Protexic”), part of the All Other group of businesses, to Black Diamond Capital Management, LLC for cash proceeds of $ 80,267 .

This business provided foam components and integrated material solutions for various industrial end markets.

This sale was the result of the Company’s continuing evaluation of its business portfolio and is consistent with the Company’s strategic and investment priorities.

In connection with the Protexic divestiture, the Company wrote off net assets totaling $ 74,126 , including $ 16,559 of allocated goodwill, and reclassified $ 2,913 of cumulative translation adjustment losses from accumulated other comprehensive loss, recognizing a preliminary pretax gain on the divestiture of $ 3,228 , which is included in “(Loss)/Gain on divestiture of business” in the Company’s Condensed Consolidated Statements of Income.

The Company used the majority of the cash proceeds from the sale to pay down debt.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

On January 26, 2023, the Company completed the sale of its Sonoco Sustainability Solutions (“S3”) business, a provider of customized waste and recycling management programs and part of the Company’s Industrial Paper Packaging segment, to Northstar Recycling Co.

In the second quarter of 2024, upon resolution of certain contingencies, the Company received cash proceeds and recognized an additional pretax gain of $ 1,250 on the sale.

These gains are included in “(Loss)/Gain on divestiture of business and other assets” in the Company’s Condensed Consolidated Statements of Income for their respective periods.

The sales of these operations did not represent a strategic shift for the Company and did not have a major effect on its operations or financial results.

Consequently, these sales did not meet the criteria for reporting as discontinued operations.

Additional Ownership Investment

During the second quarter of 2024, the Company increased its ownership interest in a small South Carolina-based designer and manufacturer of sustainable protective packaging solutions from 20.5 % to 39.9 %.

The Company acquired its initial ownership interest in June 2022.

The Company’s preferred stock investment increased by $ 18,512 , which included a $ 10,000 cash payment, a $ 5,400 remeasurement of the fair value of the existing investment, and a $ 2,500 conversion of the carrying value of the out standing convertible notes into a preferred stock investment, which yielded a $ 467 fair value increase and a $ 145 increase for interest income earned.

The outstanding preferred stock investment at both June 29, 2025 and December 31, 2024 was $ 21,212 and is included within “Other assets” in the Company’s Condensed Consolidated Balance Sheet.

The remeasurement of the carrying value of the historical investment to fair value resulted i n a gain of $ 5,867 and interest income of $ 145 , which are included in “Other (expenses)/income, net” and “Inte rest income,” respectively, in the Company’s Condensed Consolidated Statements of Income for the three- and six-month periods ended June 30, 2024 .

Acquisition, Integration, and Divestitur e-Related Costs

Acquisition, integration, and divestiture-related costs from continuing operations during the three- and six-month periods ended June 29, 2025 and June 30, 2024 were recorded in the Company’s Condensed Consolidated Statements of Income as follows:

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Cost of sales $ 91 $ — $ 18,041 $ —

Selling, general and administrative expenses 11,070 22,092 20,386 27,596

Total acquisition, integration, and divestiture-related costs $ 11,161 $ 22,092 $ 38,427 $ 27,596

Acquisition, integration, and divestiture-related costs included in “Selling, general and administrative expenses” consist primarily of legal and professional fees, representation and warranty insurance premiums, as well as employee-related costs, and other integration activity costs, while such costs included in “Cost of sales” consist primarily of amortization of the fair value step-up of finished goods inventory.

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

Acquisition, Integration, and Divestiture-Related Costs

Acquisition, integration, and divestiture-related costs from continuing operations totaled $ 27,266 and $ 5,504 during the three-month periods ended March 30, 2025 and March 31, 2024, respectively.

These costs included $ 9,317 and $ 5,504 during the three-month periods ended March 30, 2025 and March 31, 2024, respectively, for legal and professional fees, representation and warranty insurance premiums, as well as employee-related costs, and other integration activity costs that are included in “Selling, general and administrative expenses.” In addition, amortization of the fair value step-up of finished goods inventory totaled $ 17,949 during the three-month period ended March 30, 2025 and is included in “Cost of sales” in the Company’s Condensed Consolidated Statements of Income.

Shareholders’ Equity

1 unchanged sentence

The following table sets forth the computation of basic and diluted earnings per share:

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Net income from continuing operations $ 68,651 $ 57,411 $ 117,968 $ 92,923

Net income from continuing operations attributable to noncontrolling interests ( 60 ) ( 48 )

Net loss/(income) from continuing operations attributable to noncontrolling interests 224 ( 110 ) 164 ( 158 )

Net income from continuing operations attributable to Sonoco 68,875 57,301 118,132 92,765

16 unchanged sentences

These SARs may become dilutive in the future if the market price of the Company’s common stock appreciates.

The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three- and six-month periods ended June 29, 2025 and June 30, 2024 were as follows (in thousands):

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Anti-dilutive stock appreciation rights 515 338 532 339

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three-month periods ended March 30, 2025 and March 31, 2024 were as follows (in thousands):

Three Months Ended

March 30, 2025 March 31, 2024

Anti-dilutive stock appreciation rights 548 340

Stock Repurchases

3 unchanged sentences

The Company regularly repurchases shares of its common stock to satisfy employee tax withholding obligations in association with certain share-based compensation awards.

These repurchases, which are not part of a publicly announced plan or program, totaled 220 shares during the three-month period ended March 30, 2025, at a cost of $ 10,573 , and 162 shares during the three-month period ended March 31, 2024, at a cost of $ 9,139 .

These repurchases, which are not part of a publicly announced plan or program, totaled 220 shares during the six-month period ended June 29, 2025, at a cost of $ 10,576 , and 163 shares during the six-month period ended June 30, 2024, at a cost of $ 9,162 .

Dividend Declarations

2 unchanged sentences

On April 16, 2025, the Board declared a regular quarterly dividend of $ 0.53 per share.

This dividend is payable on

This dividend was paid on

June 10, 2025 to all shareholders of record as of May 9, 2025.

On July 16, 2025, the Board declared a regular quarterly dividend of $ 0.53 per share.

This dividend is payable on September 10, 2025 to all shareholders of record as of August 8, 2025.

Restructuring and Asset Impairments

3 unchanged sentences

Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Restructuring and restructuring-related asset impairment charges $ 9,752 $ 17,963 $ 23,333 $ 48,973

5 unchanged sentences

The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Severance and Termination Benefits $ 6,367 $ 5,480 $ 13,365 $ 23,271

3 unchanged sentences

The table below sets forth restructuring and restructuring-related asset impairment charges attributable to each reportable segment, the All Other group of businesses, and Corporate-related activity:

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Consumer Packaging $ 1,509 $ 9,876 $ 2,738 $ 14,193

5 unchanged sentences

The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets:

and Termination

Benefits Asset

Impairments/ Disposal

of Assets Other

5 unchanged sentences

Foreign currency translation 903 — 318 1,221

Liability at March 30, 2025 $ 21,988 $ — $ 1,213 $ 23,201

“Severance and Termination Benefits” during the three-month period ended March 30, 2025 includes the cost of severance for approximately 80 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, including severance related to the closures of a cone facility in China, a cone facility in Mexico, and a partitions facility in Scarborough, Maine, all part of the Industrial Paper Packaging segment.

“Asset Impairment/Disposal of Assets” during the three-month period ended March 30, 2025 consists primarily of asset write-offs related to the closures of the cone facilities in China and Mexico, and the partitions facility in Scarborough, Maine, all part of the Industrial Paper Packaging segment.

Liability at June 29, 2025 $ 18,932 $ — $ 1,841 $ 20,773

“Severance and Termination Benefits” during the six-month period ended June 29, 2025 includes the cost of severance for approximately 120 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, as well as severance related to the closures of cone facilities in China and Mexico, and partitions facilities in Scarborough, Maine and Santa Fe Springs, California, all part of the Industrial Paper Packaging segment, and the closure of a metal can facility in Spain, part of the Consumer Packaging segment.

“Asset Impairment/Disposal of Assets” during the six-month period ended June 29, 2025 consists primarily of asset write-offs related to the closures of the cone facilities in China and Mexico and the partitions facilities in Maine and California, all part of the Industrial Paper Packaging segment.

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

“Other Costs” during the three-month period ended March 30, 2025 consists primarily of equipment removal, utilities, plant security, property taxes, insurance and environmental remediation costs related to the prior year’s closure of the Company’s paper mill in Sumner, Washington, and ongoing facility carrying costs of previously announced plant closures.

“Other Costs” during the six-month period ended June 29, 2025 consists primarily of equipment removal, utilities, plant security, property taxes, insurance and environmental remediation costs related to the prior year’s closure of the Company’s paper mill in Sumner, Washington, legal costs related to the closure of the metal can facility in Spain, and ongoing facility carrying costs of previously announced plant closures.

The Company expects to pay the majority of the remaining restructuring reserves by the end of 2025 using cash generated from operations.

1 unchanged sentence

The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken.

Accumulated Other Comprehensive Loss

The following table summarizes the components of accumulated other comprehensive loss and the changes in the balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the three-month periods ended March 30, 2025 and March 31, 2024:

Accumulated Other Comprehensive Income/(Loss)

The following table summarizes the components of accumulated other comprehensive income/(loss) and the changes in the balances of each component of accumulated other comprehensive income/(loss), net of tax as applicable, for the six-month periods ended June 29, 2025 and June 30, 2024:

Pension Items

1 unchanged sentence

Comprehensive

Income/(Loss)

Balance at December 31, 2024 $ ( 410,931 ) $ ( 90,613 ) $ ( 1,190 ) $ ( 502,734 )

Other comprehensive income/(loss) before reclassifications 172,072 ( 265 ) 2,024 173,831

Amounts reclassified from accumulated other comprehensive loss to net income 3,792 809 ( 267 ) 4,334

Other comprehensive income before reclassifications 461,790 2,032 4,246 468,068

Amounts reclassified from accumulated other comprehensive income/(loss) to net income 51,747 1,447 ( 1,165 ) 52,029

Other comprehensive income 513,537 3,479 3,081 520,097

Balance at March 30, 2025 $ ( 235,067 ) $ ( 90,069 ) $ 567 $ ( 324,569 )

Balance at June 29, 2025 $ 102,606 $ ( 87,134 ) $ 1,891 $ 17,363

Balance at December 31, 2023 $ ( 267,578 ) $ ( 99,627 ) $ 943 $ ( 366,262 )

Other comprehensive (loss)/income before reclassifications ( 19,319 ) ( 932 ) 518 ( 19,733 )

Amounts reclassified from accumulated other comprehensive loss to net income — 975 ( 349 ) 626

Other comprehensive loss before reclassifications ( 55,598 ) ( 181 ) ( 1,124 ) ( 56,903 )

Amounts reclassified from accumulated other comprehensive income/(loss) to net income 2,913 2,303 ( 368 ) 4,848

Other comprehensive (loss)/income ( 52,685 ) 2,122 ( 1,492 ) ( 52,055 )

Balance at March 31, 2024 $ ( 286,897 ) $ ( 99,584 ) $ 1,112 $ ( 385,369 )

Balance at June 30, 2024 $ ( 320,263 ) $ ( 97,505 ) $ ( 549 ) $ ( 418,317 )

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three-month periods ended March 30, 2025 and March 31, 2024:

The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive income/(loss) for the three- and six-month periods ended June 29, 2025 and June 30, 2024:

Amount Reclassified from Accumulated

Other Comprehensive Loss

Three Months Ended

Other Comprehensive Income/(Loss)

Three Months Ended Six Months Ended

Details about Accumulated Other

Comprehensive

Loss Components March 30,

2025 March 31,

Income/(Loss) Components June 29,

2025 June 30,

2024 June 29,

2025 June 30,

2024 Affected Line Item in

2 unchanged sentences

Foreign currency items

Currency translation adjustment loss on TFP sale (a)

$ ( 47,955 ) $ — $ ( 47,955 ) $ — Net income from discontinued operations

Currency translation adjustment loss on Venezuela sale (a)

$ ( 3,792 ) $ — Loss on divestiture of business and other assets

— — ( 3,792 ) — (Loss)/Gain on divestiture of business

Currency translation adjustment loss on Protexic sale (a)

— ( 2,913 ) — ( 2,913 ) (Loss)/Gain on divestiture of business

( 47,955 ) ( 2,913 ) ( 51,747 ) ( 2,913 ) Net income

4 unchanged sentences

( 151 ) ( 64 ) ( 192 ) ( 139 ) Cost of sales

358 361 Income before income taxes

1,217 166 1,575 527 Income from continuing operations before income taxes

Income tax impact ( 319 ) ( 147 ) ( 410 ) ( 159 ) Provision for income taxes

1 unchanged sentence

Defined benefit pension items

Effect of settlement loss (c)

— ( 511 ) — ( 511 ) Non-operating pension costs

Amortization of defined benefit pension items (c)

( 842 ) ( 1,199 ) ( 1,898 ) ( 2,429 ) Non-operating pension costs

( 1,056 ) ( 1,230 ) Income before income taxes

( 842 ) ( 1,710 ) ( 1,898 ) ( 2,940 ) Income from continuing operations before income taxes

Income tax impact 204 382 451 637 Provision for income taxes

7 unchanged sentences

(Dollars and shares in thousands except per share data)

The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended March 30, 2025 and March 31, 2024:

Three Months Ended

March 30, 2025

Three Months Ended

March 31, 2024

The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the three-month periods ended June 29, 2025 and June 30, 2024:

Three Months Ended June 29, 2025 Three Months Ended June 30, 2024

Benefit After Tax

3 unchanged sentences

Net other comprehensive income/(loss) from foreign currency items $ 241,272 $ 48,446 $ 289,718 $ ( 35,280 ) $ ( 999 ) $ ( 36,279 )

Amounts reclassified from accumulated other comprehensive loss to net income (a)

Amounts reclassified from accumulated other comprehensive income/(loss) to net income (a)

47,955 — 47,955 2,913 — 2,913

2 unchanged sentences

Other comprehensive income/(loss) before reclassifications 3,025 ( 728 ) 2,297 671 80 751

Amounts reclassified from accumulated other comprehensive loss to net income (b)

Amounts reclassified from accumulated other comprehensive income/(loss) to net income (b)

842 ( 204 ) 638 1,710 ( 382 ) 1,328

Net other comprehensive income/(loss) from defined benefit pension items

3,867 ( 932 ) 2,935 2,381 ( 302 ) 2,079

Gains and losses on cash flow hedges:

Other comprehensive income/(loss) before reclassifications

2,528 ( 306 ) 2,222 ( 2,144 ) 502 ( 1,642 )

Amounts reclassified from accumulated other comprehensive income/(loss) to net income (c)

( 1,217 ) 319 ( 898 ) ( 166 ) 147 ( 19 )

Net other comprehensive income/(loss) from cash flow hedges 1,311 13 1,324 ( 2,310 ) 649 ( 1,661 )

Other comprehensive income/(loss) $ 294,405 $ 47,527 $ 341,932 $ ( 32,296 ) $ ( 652 ) $ ( 32,948 )

(a) See Note 4 for additional details.

(b) See Note 13 for additional details.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The following table summarizes the before and after tax amounts for the various components of other comprehensive income/(loss) for the six-month periods ended June 29, 2025 and June 30, 2024:

Six Months Ended June 29, 2025 Six Months Ended June 30, 2024

Benefit After Tax

Amount Before Tax

Benefit After Tax

Foreign currency items:

Net other comprehensive income/(loss) from foreign currency items $ 403,100 $ 58,690 $ 461,790 $ ( 52,068 ) $ ( 3,530 ) $ ( 55,598 )

Amounts reclassified from accumulated other comprehensive income/(loss) to net income (a)

51,747 — 51,747 2,913 — 2,913

Net other comprehensive income/(loss) from foreign currency items 454,847 58,690 513,537 ( 49,155 ) ( 3,530 ) ( 52,685 )

Defined benefit pension items:

Other comprehensive income/(loss) before reclassifications 2,679 ( 647 ) $ 2,032 ( 205 ) 24 ( 181 )

Amounts reclassified from accumulated other comprehensive income/(loss) to net income (b)

1,898 ( 451 ) 1,447 2,940 ( 637 ) 2,303

Net other comprehensive (loss)/income from defined benefit pension items 4,577 ( 1,098 ) 3,479 2,735 ( 613 ) 2,122

1 unchanged sentence

Other comprehensive (loss)/income before reclassifications 5,243 ( 997 ) $ 4,246 ( 1,608 ) 484 ( 1,124 )

Amounts reclassified from accumulated other comprehensive loss to net income (c)

Amounts reclassified from accumulated other comprehensive income/(loss) to net income (c)

( 1,575 ) 410 ( 1,165 ) ( 527 ) 159 ( 368 )

8 unchanged sentences

Goodwill and Other Intangible Assets

A summary of the changes in goodwill for the three-month period ended March 30, 2025 is as follows:

A summary of the changes in goodwill for the six-month period ended June 29, 2025 is as follows:

Packaging Industrial Paper Packaging All Other Total

Goodwill at December 31, 2024 $ 1,807,971 $ 486,636 $ 231,050 $ 2,525,657

Divestitures — ( 2,043 ) — ( 2,043 )

Measurement period adjustments ( 32,335 ) — — ( 32,335 )

Foreign currency translation 166,865 22,215 ( 2,314 ) 186,766

Goodwill at March 30, 2025 $ 1,867,007 $ 494,179 $ 228,017 $ 2,589,203

Goodwill activity reflected under the caption “Measurement period adjustments” relates to the prior year acquisition of Eviosys.

Goodwill at June 29, 2025 $ 1,942,501 $ 506,808 $ 228,736 $ 2,678,045

Goodwill activity reflected under the caption “Measurement period adjustments” relates to the December 2024 acquisition of Eviosys.

Goodwill activity reflected under the caption “Divestitures” relates to the April 2025 sale of a small recycling business in Asheville, North Carolina.

See Note 4 for additional information.

5 unchanged sentences

Although no reporting units failed the annual impairment test, in management’s opinion, the goodwill balance of the Metal Packaging - US reporting unit is at risk of impairment in the near term if the reporting unit’s operations do not perform in line with management’s expectations, or if there is a negative change in the long-term financial outlook for the reporting unit or in other factors such as the discount rate.

The total goodwill associated with the Metal Packaging - US reporting unit was $ 384,315 at March 30, 2025.

During the time subsequent to the annual evaluation, and at March 30, 2025, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired.

The total goodwill associated with the Metal Packaging - US reporting unit was $ 384,315 at June 29, 2025.

During the time subsequent to the annual evaluation, and at June 29, 2025, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired.

It is management’s opinion that no such events and/or changes in circumstances have occurred.

3 unchanged sentences

Other Intangible Assets

A summary of other intangible assets as of March 30, 2025 and December 31, 2024 is as follows:

A summary of other intangible assets as of June 29, 2025 and December 31, 2024 is as follows:

2025 December 31,

14 unchanged sentences

Other Intangible Assets, net $ 2,755,292 $ 2,586,698

During the first quarter of 2025, the Company recorded measurement period adjustments related to the December 4, 2024 acquisition of Eviosys that reduced the previously reported fair value of customer lists by $ 5,253 .

During the six-month period ended June 29, 2025, the Company recorded measurement period adjustments related to the December 2024 acquisition of Eviosys that increased the previously reported fair value of customer lists by $ 10,859 .

The effect on amortization expense in the prior period was immaterial.

In addition, the Company wrote off other intangible assets, primarily customer lists, with a net book value of $ 1,455 as a result of the divestiture of a small recycling business in Asheville, North Carolina.

See Note 4 for additional information.

2 unchanged sentences

The Company has no intangible assets with indefinite lives.

Aggregate amortization expense was $ 41,961 and $ 17,894 for the three-month periods ended March 30, 2025 and March 31, 2024, respectively.

Aggregate amortization expense was $ 44,193 and $ 17,479 for the three-month periods ended June 29, 2025 and June 30, 2024, respectively, and $ 86,154 and $ 35,373 for the six-month periods ended June 29, 2025 and June 30, 2024, respectively.

Amortization expense on other intangible assets is expected to total approximately $ 173,400 in 2025, $ 171,800 in 2026, $ 171,200 in 2027, $ 170,900 in 2028 and $ 168,500 in 2029.

9 unchanged sentences

(Dollars and shares in thousands except per share data)

The following table sets forth the balance sheet location and values of the obligations under the Company’s SCF Programs at March 30, 2025 and December 31, 2024:

Balance Sheet Line Item March 30, 2025 December 31, 2024

The following table sets forth the balance sheet location and values of the obligations under the Company’s SCF Programs at June 29, 2025 and December 31, 2024:

Balance Sheet Line Item June 29, 2025 December 31, 2024

Payable to suppliers (a)

1 unchanged sentence

(a) The payment of these obligations is included in net cash provided by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows.

Details of the Company’s debt at March 30, 2025 and December 31, 2024 are as follows:

Details of the Company’s debt at June 29, 2025 and December 31, 2024 are as follows:

2025 December 31, 2024

24 unchanged sentences

Long-term debt $ 4,986,643 $ 4,985,496

Included in “Other foreign denominated debt” at March 30, 2025 and December 31, 2024 are $ 51,949 and $ 73,487 , respectively, of transfers of certain trade receivables of Eviosys to third-party financial institutions for which the requirements to be accounted for as true sale in accordance with the guidance under ASC 860, “Transfers and Servicing,” were not met.

Additions to and settlements of these obligations are reflected as “Proceeds from issuance of debt” and “Principal repayment of debt,” respectively, in “Net cash provided/(used) by financing activities” in the Company’s Condensed Consolidated Statements of Cash Flows.

Included in “Other foreign denominated debt” at June 29, 2025 and December 31, 2024 are $ 4,597 and $ 73,487 , respectively, of transfers of certain trade receivables of Eviosys to third-party financial institutions for which the requirements to be accounted for as true sale in accordance with the guidance under ASC 860, “Transfers and Servicing,” were not met.

Additions to and settlements of these obligations are reflected as “Proceeds from issuance of debt” and “Principal repayment of debt,” respectively, in “Net c ash used by fi nancing activities” in the Company’s Condensed Consolidated Statements of Cash Flows.

On February 3, 2025, the Company repaid the $ 400,000 aggregate principal amount of its 1.800 % notes due February 2025 upon maturity using proceeds from the issuance of commercial paper.

On April 3, 2025, the Company repaid the outstanding $ 1,500,000 principal amount of borrowings under its 364 -day term loan facility using a portion of the cash proceeds from the sale of TFP.

The Company maintains a revolving credit facility with total commitments of $ 1,250,000 and a maturity date of May 3, 2029.

The Company’s $ 1,250,000 commercial paper program is supported by the revolving credit facility.

At March 30, 2025 , the Company had $ 528,000 in commercial paper balances outstanding;

accordingly, the committed capacity available for drawdown under its revolving credit facility at March 30, 2025 was $ 722,000 .

On April 1, 2025, subsequent to the end of the three-month period ended March 30, 2025 , the Company completed the sale of TFP.

On April 3, 2025, the Company used a portion of the cash proceeds from the sale to repay the outstanding $ 1,500,000 principal amount of borrowings under its 364 -day term loan facility.

At June 29, 2025 , the Company had $ 354,600 in commercial paper balances outstanding;

accordingly, the committed capacity available for drawdown under its revolving credit facility at June 29, 2025 was $ 895,400 .

SONOCO PRODUCTS COMPANY

3 unchanged sentences

The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements.

As of March 30, 2025, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.

As of June 29, 2025, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.

Financial Instruments and Derivatives

The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value.

March 30, 2025 December 31, 2024

June 29, 2025 December 31, 2024

Value Carrying

3 unchanged sentences

Cash Flow Hedges

At March 30, 2025 and December 31, 2024, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows.

These contracts, w hich have maturities ranging from April 2025 to December 2025, qualify as cash flow hedges under GAAP.

At June 29, 2025 and December 31, 2024, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows.

These contracts, w hich have maturities ranging from July 2025 to December 2025, qualify as cash flow hedges under GAAP.

For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item.

2 unchanged sentences

Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as cash flow hedges.

At March 30, 2025, there were no natural gas swaps covering anticipated natural gas usage in 2025, and aluminum swaps covering 4,179 metric tons of aluminum represented approximately 38.0 % of anticipated aluminum usage for 2025.

The fair value of the Company’s commodity cash flow hedges netted to gain positions of $ 116 and $ 652 at March 30, 2025 and December 31, 2024, respectively.

The amount of the gain included in accumulated other comprehensive income at March 30, 2025 expected to be reclassified to the income statement during the next twelve months is $ 116 .

The Company also has certain natural gas hedges that it does not treat as cash flow hedges.

At June 29, 2025, there were no designated natural gas swaps covering anticipated natural gas usage in 2025.

The Company has designated swap contracts covering 8,740 metric tons of aluminum as cash flow hedges.

These contracts represented approximately 68 % of anticipated aluminum usage for 2025.

The fair value of the Company’s commodity cash flow hedges netted to a loss position of $( 258 ) and a gain position of $ 652 at June 29, 2025 and December 31, 2024, respectively.

The amount of the loss included in accumulated other comprehensive income at June 29, 2025 expected to be reclassified to the income statement during the next twelve months is $( 258 ).

The Company also has certain natural gas derivatives contracts that are not designated as cash flow hedges.

See “Non-Designated Derivatives” below for a discussion of these hedges.

4 unchanged sentences

The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases expected to occur in 2025.

The net positions of these contracts at March 30, 2025 were as follows (in thousands):

The net positions of these contracts at June 29, 2025 were as follows (in thousands):

Currency Action Quantity

15 unchanged sentences

Hungarian forint sell ( 2,556,665 )

The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $ 1,120 and a loss position of $( 1,841 ) at March 30, 2025 and December 31, 2024, respectively.

The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $ 1,171 and a loss position of $( 1,841 ) at June 29, 2025 and December 31, 2024, respectively.

Gains of $ 1,171 are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months.

7 unchanged sentences

dollars at a fixed rate and to make semi-annual interest payments in euros at a fixed rate.

The risk management objective of entering into the swap agreements was to manage foreign currency risk relating to net investments in certain European subsidiaries denominated in euros.

The agreements were designated as net investment hedges for accounting purposes.

On April 15, 2024, as a result of the strengthening of the U.S.

2 unchanged sentences

The foreign currency translation gain of approximately $ 3,143 , net of tax, is included as a component of “Accumulated other comprehensive loss.”

Following the unwind of the swaps, the Company entered into new cross-currency swap agreements with a total notional amount of $ 500,000 in April 2024 to effectively convert a portion of the Company’s fixed-rate U.S.

Following the unwind of the swaps, in April 2024 the Company entered into new cross-currency swap agreements with a total notional amount of $ 500,000 , maturing on May 1, 2027, to effectively convert a portion of the Company’s fixed-rate U.S.

dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt.

The new swap agreements, which have a maturity of May 1, 2027, share the same risk management objective as the terminated cross-currency swap agreements and are also designated as net investment hedges for accounting purposes.

In December 2024, the Company entered into additional cross-currency swap agreements with a total notional amount of $ 1,500,000 , including $ 500,000 maturing on September 1, 2026, $ 500,000 maturing on September 1, 2029, and $ 500,000 maturing on May 1, 2030.

1 unchanged sentence

dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.

The new swap agreements share the same risk management objective as the Company’s previously existing cross-currency swap agreements and are also designated as net investment hedges for accounting purposes.

On June 30, 2025, subsequent to the end of the second quarter, the Company entered into additional cross-currency swap agreements with a total notional amount of $ 285,000 , maturing on February 1, 2027.

The swaps effectively convert a portion of the Company’s fixed-rate U.S.

dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.

All of the Company’s cross-currency swap agreements are designated as net investment hedges for accounting purposes and have the risk management objective of managing foreign currency risk relating to net investments in certain European subsidiaries denominated in euros.

The gain or loss on the net investment hedge derivative instruments is included in the “Foreign currency translation” component of “Accumulated other comprehensive loss” until the net investment is sold, diluted, or liquidated.

Interest payments received for the cross-currency swaps are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income.

Net interest receivables for the cross-currency swaps totaling $ 9,088 and $ 18,080 for the three and six months ended June 29, 2025 are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income.

The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S.

dollar exchange rate market.

The fair value of the Company’s net investment hedges was a loss position of $ 49,242 and a gain position of $ 11,919 at March 30, 2025 and December 31, 2024, respectively.

A foreign currency translation loss of $ 36,685 (net of income taxes of $ 12,557 ) and a gain of $ 8,880 (net of income taxes of $ 3,039 ) were reported as components of “Accumulated other comprehensive loss” within “Foreign currency items” at March 30, 2025 and December 31, 2024, respectively.

The fair value of the Company’s net investment hedges was a loss position of $( 218,240 ) and a gain position of $ 11,919 at June 29, 2025 and December 31, 2024, respectively.

A foreign currency translation loss of $( 162,589 ) (net of income taxes of $ 55,651 ) and a gain of $ 8,880 (net of income taxes of $ 3,039 ) were reported as components of “Accumulated other comprehensive income/(loss)” within “Foreign currency items” at June 29, 2025 and December 31, 2024, respectively.

Non-Designated Derivatives

6 unchanged sentences

The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables.

The net currency positions of these non-designated contracts at March 30, 2025, were as follows (in thousands):

The net currency positions of these non-designated contracts at June 29, 2025, were as follows (in thousands):

Currency Action Quantity

4 unchanged sentences

Thai baht sell ( 20,283 )

Euro purchase 426

Euro sell ( 11 )

Canadian dollar purchase 4,212

Turkish lira purchase 28,304

British pound sell ( 110 )

Euro Contracts

4 unchanged sentences

The Company has entered into non-designated derivative contracts to manage the cost of a nticipated purchases of natural gas.

At March 30, 2025, these contracts consisted of natural gas swaps covering approximately 3.8 million metric million British thermal units (“MMBTUs”) and represented approximately 74.5 % of anticipated usage in North America for the remainder of 2025.

The fair value of the Company’s non-designated deriva tives position was a gain of $ 2,955 and a loss of $( 2,694 ) at March 30, 2025 and December 31, 2024, respectively.

The following table sets forth the location and fair values of the Company’s derivative instruments at March 30, 2025 and December 31, 2024:

Description Balance Sheet Location March 30, 2025 December 31, 2024

At June 29, 2025, these contracts consisted of natural gas swaps covering approximately 3.9 million metric million British thermal units (“MMBTUs”) and represented approximately 89.6 % of anticipated usage in North America for the remainder of 2025.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The fair value of the Company’s non-designated deriva tives position was a gain of $ 4,342 and a loss of $( 2,694 ) at June 29, 2025 and December 31, 2024, respectively.

The following table sets forth the location and fair values of the Company’s derivative instruments at June 29, 2025 and December 31, 2024:

Description Balance Sheet Location June 29, 2025 December 31, 2024

Derivatives designated as hedging instruments:

8 unchanged sentences

Commodity Contracts Prepaid expenses 1,365 961

Commodity Contracts Other assets 168 —

Commodity Contracts Accrued expenses and other ( 216 ) ( 574 )

Commodity Contracts Other liabilities ( 14 ) —

Foreign Exchange Contracts Prepaid expenses 3,275 ( 59 )

5 unchanged sentences

(Dollars and shares in thousands except per share data)

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended March 30, 2025 and March 31, 2024, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended June 29, 2025 and June 30, 2024, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive income/(loss) to the carrying value of the capitalized expenditures:

Description Amount of Gain or

8 unchanged sentences

Derivatives in Cash Flow Hedging Relationships:

Three-month period ended March 30, 2025

Three-month period ended June 29, 2025

Foreign Exchange Contracts $ 2,902 Net sales $ 1,368

1 unchanged sentence

Commodity Contracts ( 374 ) Cost of sales —

Three-month period ended March 31, 2024

Three-month period ended June 30, 2024

Foreign Exchange Contracts $ 2,206 Net sales $ 230

5 unchanged sentences

Derivatives not Designated as Hedging Instruments:

Three-month period ended March 30, 2025

Three-month period ended June 29, 2025

Commodity Contracts $ ( 1,889 ) Cost of sales

Foreign Exchange Contracts 3,543 Selling, general and administrative

Three-month period ended March 31, 2024

Three-month period ended June 30, 2024

Commodity Contracts $ 470 Cost of sales

Foreign Exchange Contracts ( 2,771 ) Selling, general and administrative

Three-month period ended June 29, 2025 Three-month period ended June 30, 2024

Description Revenue Cost of sales Revenue Cost of sales

4 unchanged sentences

Commodity contracts:

Amount of gain reclassified from accumulated other comprehensive loss into net income $ — $ — $ — $ —

Amount of gain reclassified from accumulated other comprehensive income/(loss) into net income $ — $ — $ — $ —

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the six-month periods ended June 29, 2025 and June 30, 2024, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive income/(loss) to the carrying value of the capitalized expenditures:

Description Amount of Gain or

(Loss) Recognized

Derivatives Location of Gain

Reclassified from

Accumulated OCI

Into Income Amount of Gain or

(Loss) Reclassified

from Accumulated

OCI Into Income

Derivatives in Cash Flow Hedging Relationships:

Six-month period ended June 29, 2025

Foreign Exchange Contracts $ 6,153 Net sales $ 1,767

Cost of sales ( 192 )

Commodity Contracts ( 910 ) Cost of sales —

Six-month period ended June 30, 2024

Foreign Exchange Contracts $ ( 1,645 ) Net sales $ 666

Cost of sales ( 139 )

Commodity Contracts 37 Cost of sales —

Description Gain or (Loss)

Recognized Location of Gain or (Loss) Recognized in

Income Statement

Derivatives not Designated as Hedging Instruments:

Six-month period ended June 29, 2025

Commodity Contracts $ 1,448 Cost of sales

Foreign Exchange Contracts 7,111 Selling, general and administrative

Six-month period ended June 30, 2024

Commodity Contracts $ ( 2,088 ) Cost of sales

Foreign Exchange Contracts ( 2,466 ) Selling, general and administrative

Six-month period ended June 29, 2025 Six-month period ended June 30, 2024

Description Revenue Cost of

sales Revenue Cost of

Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 1,767 $ ( 192 ) $ 666 $ ( 139 )

Gain or (loss) on cash flow hedging relationships:

Foreign exchange contracts:

Amount of gain/(loss) reclassified from accumulated other comprehensive income into net income $ 1,767 $ ( 192 ) $ 666 $ ( 139 )

Commodity contracts:

Amount of gain reclassified from accumulated other comprehensive income into net income $ — $ — $ — $ —

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Fair Value Measurements

7 unchanged sentences

The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis:

Description March 30, 2025 Assets measured

Description June 29, 2025 Assets measured

at NAV Level 1 Level 2 Level 3

18 unchanged sentences

None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs.

There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three-month period ended March 30, 2025.

There were no transfers in or out of Level 1 or Level 2 fair value measurements during the six-month period ended June 29, 2025.

The Company has an investment in the preferred stock of a nonaffiliated private company.

1 unchanged sentence

Observable price changes would consist of Lev el 2 inputs based on privately negotiated transactions with the nonaffiliated company.

The total investment in p referred stock of $ 21,212 is included in “Other assets” in the Company’s Condensed Consolidated Balance Sheet as of March 30, 2025.

The total investment in p referred stock of $ 21,212 is included in “Other assets” in the Company’s Condensed Consolidated Balance Sheet as of June 29, 2025.

SONOCO PRODUCTS COMPANY

3 unchanged sentences

See Note 4 for a discussion of assets acquired and liabilities assumed in acquisitions and sold in dispositions, and Note 6 for a discussion of asset impairments associated with restructuring activities.

The fair value of assets determined based on third-party appraisals and classified as Level 3 measurements due to the use of significant unobservable inputs was not material at March 30, 2025 or December 31, 2024.

The fair value of assets determined based on third-party appraisals and classified as Level 3 measurements due to the use of significant unobservable inputs was not material at June 29, 2025 or December 31, 2024.

Employee Benefit Plans

3 unchanged sentences

The Company also sponsors contributory defined benefit pension plans covering certain of its employees in the United Kingdom, Canada and the Netherlands, and provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements.

The components of net periodic benefit cost include the following:

Three Months Ended

March 30, 2025 March 31, 2024

The components of net periodic benefit cost/(income) include the following:

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Retirement Plans

4 unchanged sentences

Amortization of net actuarial loss 899 1,169 1,887 2,244

Effect of settlement loss — 511 — 511

Net periodic benefit cost $ 4,502 $ 4,800 $ 8,802 $ 8,748

3 unchanged sentences

Expected return on plan assets ( 104 ) ( 97 ) ( 204 ) ( 195 )

Amortization of prior service credit 94 96

Amortization of prior service cost 91 96 185 192

Amortization of net actuarial gain ( 357 ) ( 301 ) ( 571 ) ( 447 )

Net periodic benefit cost $ 56 $ 156

Net periodic benefit (income)/cost $ ( 127 ) $ ( 61 ) $ ( 71 ) $ 95

Settlement Charges

The Company recognized settlement ch arges of $ 511 during the six-month period ended June 30, 2024.

These charges resulted from payments made to certain participants in the Company’s non-union Canadian pension plan who elected a lump sum distribution option upon retirement.

Contributions

The Company made aggregate contributions of $ 4,223 and $ 3,989 to its defined benefit retirement and retiree health and life insurance plans during the three-month periods ended March 30, 2025 and March 31, 2024, respectively.

The Company made aggregate contributions of $ 10,458 and $ 9,125 to its defined benefit retirement and retiree health and life insurance plans during the six-month periods ended June 29, 2025 and June 30, 2024, respectively.

The Company expects to make additional aggregate contributions of approximately $ 11,700 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2025.

2 unchanged sentences

(Dollars and shares in thousands except per share data)

The Company’s effective tax rates for the three-month periods ended March 30, 2025 and March 31, 2024 were 30.9 % and 18.6 %, respectively.

The Company’s effective tax rates for the three- and six-month periods ended June 29, 2025 were 37.3 % and 34.8 %, respectively, and its effective tax rates for the three- and six-month periods ended June 30, 2024 were 23.3 % and 21.6 %, respectively.

The Company’s effective tax rates varied from the U.S.

3 unchanged sentences

With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2019.

The Company’s reserve for uncertain tax benefits decreased by $ 358 from December 31, 2024 to March 30, 2025 due primarily to a decrease in reserves related to existing tax positions.

The Company’s reserve for uncertain tax benefits increased by $ 100 from December 31, 2024 to June 29, 2025 due primarily to an increase in reserves related to existing tax positions.

Although the Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for.

10 unchanged sentences

The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years.

The Company completed the divestiture of Protexic on April 1, 2024.

The divestiture included operating lease assets of $ 21,989 and operating lease liabilities of $ 22,396 .

The Company completed the Eviosys acquisition on December 4, 2024.

The acquisition included operating lease liabilities of $ 42,468 with a weighted-average remaining lease maturity term of 8.1 years and a weighted-average discount rate of 4.5 % .

For additional information about this acquisition, see Note 4.

The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at March 30, 2025 and December 31, 2024:

For additional information about the Company’s acquisitions and divestitures, see Note 4.

The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at June 29, 2025 and December 31, 2024:

SONOCO PRODUCTS COMPANY

1 unchanged sentence

(Dollars and shares in thousands except per share data)

Classification Balance Sheet Location March 30, 2025 December 31, 2024

Classification Balance Sheet Location June 29, 2025 December 31, 2024

Operating lease assets Right of Use Asset - Operating Leases $ 318,036 $ 307,688

13 unchanged sentences

Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet for certain leases with rate or index-related terms result in variable expenses being incurred when paid during the lease term.

The following table sets forth the components of the Company’s total lease cost for the three-month periods ended March 30, 2025 and March 31, 2024:

Three Months Ended

Lease Cost March 30, 2025 March 31, 2024

The following table sets forth the components of the Company’s total lease cost for the three- and six-month periods ended June 29, 2025 and June 30, 2024:

Three Months Ended Six Months Ended

Lease Cost June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Operating lease cost (a) $ 16,340 $ 10,913 $ 31,824 $ 24,283

13 unchanged sentences

(Dollars and shares in thousands except per share data)

The following table sets forth certain lease-related information for the three-month periods ended March 30, 2025 and March 31, 2024:

Three Months Ended

March 30, 2025 March 31, 2024

The following table sets forth certain lease-related information for the six-month periods ended June 29, 2025 and June 30, 2024:

Six Months Ended

June 29, 2025 June 30, 2024

Cash paid for amounts included in the measurement of lease liabilities:

6 unchanged sentences

Modification to leased assets for increase in operating lease liabilities 10,090 3,456

Modification to leased assets for increase/(decrease) in finance lease liabilities $ ( 10,440 ) $ —

Modification to leased assets for (decrease)/increase in finance lease liabilities ( 10,440 ) 51

Termination reclasses to decrease operating lease assets ( 7,651 ) ( 2,075 )

18 unchanged sentences

Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, in the Company’s Condensed Consolidated Balance Sheets.

March 30, 2025 December 31, 2024

June 29, 2025 December 31, 2024

Contract Assets $ 98,907 $ 67,062

3 unchanged sentences

(Dollars and shares in thousands except per share data)

Significant changes in the contract assets and liabilities balances during the three-month period ended March 30, 2025 and the year ended December 31, 2024 were as follows:

March 30, 2025 December 31, 2024

Significant changes in the contract assets and liabilities balances during the six-month period ended June 29, 2025 and the year ended December 31, 2024 were as follows:

June 29, 2025 December 31, 2024

Asset Contract

14 unchanged sentences

Contract assets and liabilities are generally short in duration given the nature of products produced by the Company.

The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended March 30, 2025 and March 31, 2024.

The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended June 29, 2025 and June 30, 2024.

The tables also include a reconciliation of disaggregated revenue with reportable segments.

The Company’s reportable segments are aligned by product nature as disclosed in Note 17 .

Three-month period ended March 30, 2025 Consumer Packaging Industrial Paper Packaging All Other Total

Three-month period ended June 29, 2025 Consumer Packaging Industrial Paper Packaging All Other Total

Primary Geographical Markets:

8 unchanged sentences

(Dollars and shares in thousands except per share data)

Three-month period ended March 31, 2024 Consumer Packaging Industrial Paper Packaging All Other Total

Three-month period ended June 30, 2024 Consumer Packaging Industrial Paper Packaging All Other Total

Primary Geographical Markets:

United States $ 429,490 $ 363,215 $ 79,732 $ 872,437

Europe, Middle East and Africa (EMEA) 105,136 97,700 14,390 217,226

EMEA 101,543 96,428 14,628 212,599

Canada 4,620 25,415 — 30,035

2 unchanged sentences

Total $ 583,051 $ 600,770 $ 94,980 $ 1,278,801

The following tables set forth information about revenue disaggregated by primary geographic regions for the six-month periods ended June 29, 2025 and June 30, 2024.

The tables also include a reconciliation of disaggregated revenue with reportable segments.

Six-month period ended June 29, 2025 Consumer Packaging Industrial Paper Packaging All Other Total

Primary Geographical Markets:

United States $ 915,182 $ 730,927 $ 148,692 $ 1,794,801

EMEA 1,274,351 181,141 29,823 1,485,315

Canada 8,269 44,746 — 53,015

Asia Pacific 48,314 72,419 596 121,329

Other 47,510 116,715 984 165,209

Total $ 2,293,626 $ 1,145,948 $ 180,095 $ 3,619,669

Six-month period ended June 30, 2024 Consumer Packaging Industrial Paper Packaging All Other Total

Primary Geographical Markets:

United States $ 852,082 $ 717,581 $ 189,300 $ 1,758,963

EMEA 206,679 194,128 29,018 429,825

Canada 8,523 50,186 — 58,709

Asia Pacific 47,754 110,886 712 159,352

Other 49,683 121,049 9,856 180,588

Total $ 1,164,721 $ 1,193,830 $ 228,886 $ 2,587,437

Segment Reporting

6 unchanged sentences

The primary products produced within the All Other group of businesses consist of a variety of packaging materials, including plastic, paper, foam, and various other specialty materials.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The Company’s chief operating decision maker (“CODM”) is the chief executive officer.

11 unchanged sentences

All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and the All Other group of businesses, except for costs related to discontinued operations.

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

The following table sets forth financial information about each of the Company’s reportable segments:

SEGMENT FINANCIAL INFORMATION

Three-month period ended March 30, 2025 Consumer Packaging Industrial Paper Packaging Total Reportable Segments

Three-month period ended June 29, 2025 Consumer Packaging Industrial Paper Packaging Total Reportable Segments

Sales from external customers $ 1,227,033 $ 588,239 $ 1,815,272

12 unchanged sentences

Other segment disclosures:

Equity in (loss)/earnings of affiliates, net of tax $ ( 51 ) $ 1,972

Depreciation, depletion and amortization (6)

Equity in earnings of affiliates, net of tax $ 170 $ 2,100

Depreciation and amortization (6)

$ 52,801 $ 29,838

Intersegment sales are recorded at a market-related transfer price.

Sales from businesses below the quantitative threshold are attributable to the group of businesses within All Other.

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

Cost of sales of reportable segments excludes certain costs, primarily changes in LIFO inventory reserves, net gains or losses from derivatives, and acquisition, integration and divestiture-related costs.

Other segment items consists of:

Consumer Packaging:

Labor and benefits, consulting and professional services, travel, communication, facilities and supplies.

Industrial Paper Packaging:

Labor and benefits, consulting and professional services, travel, communication, facilities and supplies.

Represents significant segment expenses that are regularly provided to the CODM and are included in cost of sales and other segment items within segment operating profit.

SONOCO PRODUCTS COMPANY

4 unchanged sentences

(Dollars and shares in thousands except per share data)

Three-month period ended March 31, 2024 Consumer Packaging Industrial Paper Packaging Total Reportable Segments

Three-month period ended June 30, 2024 Consumer Packaging Industrial Paper Packaging Total Reportable Segments

Sales from external customers $ 583,051 $ 600,770 $ 1,183,821

13 unchanged sentences

Equity in earnings of affiliates, net of tax $ 35 $ 2,239

Depreciation, depletion and amortization (6)

Depreciation and amortization (6)

$ 25,232 $ 28,641

Six-month period ended June 29, 2025 Consumer Packaging Industrial Paper Packaging Total Reportable Segments

Sales from external customers $ 2,293,626 $ 1,145,948 $ 3,439,574

Intersegment sales (1)

5,317 53,537 58,854

2,298,943 1,199,485 3,498,428

Reconciliation of sales

Other sales (2)

Elimination of intersegment sales ( 61,389 )

Total consolidated sales 3,619,669

Cost of sales (4)

( 1,843,216 ) ( 864,954 )

Other segment items(5) ( 154,603 ) ( 182,176 )

Segment operating profit $ 301,124 $ 152,355 $ 453,479

Other segment disclosures:

Equity in earnings of affiliates, net of tax $ 119 $ 4,072

Depreciation and amortization (6)

$ 101,756 $ 58,171

SONOCO PRODUCTS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in thousands except per share data)

Six-month period ended June 30, 2024 Consumer Packaging Industrial Paper Packaging Total Reportable Segments

Sales from external customers $ 1,164,721 $ 1,193,830 $ 2,358,551

Intersegment sales (1)

3,824 55,304 59,128

1,168,545 1,249,134 2,417,679

Reconciliation of sales

Other sales (2)

Elimination of intersegment sales ( 62,778 )

Total consolidated sales 2,587,437

Cost of sales (4)

( 942,057 ) ( 925,471 )

Other segment items(5) ( 94,165 ) ( 190,861 )

Segment operating profit $ 132,323 $ 132,802 $ 265,125

Other segment disclosures:

Equity in earnings of affiliates, net of tax $ 47 $ 3,364

Depreciation and amortization (6)

$ 50,129 $ 57,144

Intersegment sales are recorded at a market-related transfer price.

12 unchanged sentences

The following table sets forth the reconciliation of segment operating profit to “Income from continuing operations before income taxes” for the periods presented.

Three Months Ended

March 30, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Segment operating profit $ 241,584 $ 140,714 $ 453,479 $ 265,125

4 unchanged sentences

Amortization of acquisition intangibles ( 44,193 ) ( 17,479 ) ( 86,154 ) ( 35,373 )

Loss from divestiture of business and other assets

(Loss)/Gain from divestiture of business ( 2,083 ) 4,478 ( 6,266 ) 4,478

Acquisition, integration and divestiture-related costs ( 11,161 ) ( 22,092 ) ( 38,427 ) ( 27,596 )

Changes in LIFO inventory reserves ( 1,193 ) 1,418 ( 1,755 ) 987

Derivative gains 2,949 286

Derivative (losses)/gains ( 2,154 ) 3,485 795 3,771

Other corporate costs (2)

( 7,755 ) ( 12,634 ) ( 18,853 ) ( 23,722 )

Other operating charges, net (3)

Other operating (charges)/income, net (3)

( 735 ) 2,019 ( 1,994 ) ( 1,304 )

Other expenses, net (4)

Other (expenses)/income, net (4)

( 6,559 ) 5,867 ( 13,076 ) 5,867

Non-operating pension costs ( 2,982 ) ( 4,170 ) ( 6,103 ) ( 7,465 )

5 unchanged sentences

Primarily consists of highly inflationary accounting in Turkey and other miscellaneous charges in both 2025 and 2024.

These expenses relate to charges from third-party financial institutions related to the Company’s centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer Packaging segment.

In 2025, these expenses relate to charges from third-party financial institutions related to the Company’s centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer Packaging segment.

In 2024, the income related primarily to the fair value remeasurement of an equity investment.

SONOCO PRODUCTS COMPANY

2 unchanged sentences

The following table sets forth the reconciliation of other segment disclosures to consolidated totals for the periods presented.

Three Months Ended

March 30, 2025 March 31, 2024

Equity in (loss)/earnings of affiliates, net of tax

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Equity in earnings of affiliates, net of tax

Consumer Packaging $ 170 $ 35 $ 119 $ 47

3 unchanged sentences

Consolidated Total $ 2,270 $ 2,274 $ 4,191 $ 3,411

Depreciation, depletion and amortization

Depreciation and amortization

Consumer Packaging $ 52,801 $ 25,232 $ 101,756 $ 50,129

3 unchanged sentences

Consolidated Total $ 129,475 $ 74,069 $ 251,278 $ 149,015

Other represents depreciation, depletion and amortization expense for the All Other group of businesses and total amortization of acquisition intangibles for Sonoco, excluding discontinued operations.

Other represents depreciation and amortization expense for the All Other group of businesses and total amortization of acquisition intangibles for Sonoco, excluding discontinued operations.

Commitments and Contingencies

5 unchanged sentences

In connection with its acquisition of Tegrant in November 2011, the Co mpany identified potential environmental contamination at a site in Spartanburg, South Carolina.

Since the acquisition, the Company has spent a total of $ 2,345 on remediation of the Spartanburg site.

At March 30, 2025 and December 31, 2024, the Company’s accrual for environmental contingencies related to the Spartanburg site totaled $ 5,055 and $ 5,096 , respectively.

The Spartanburg site and related environmental liabilities were part of the sale of TFP to Toppan, which was completed on April 1, 2025, subsequent to the end of the first quarter.

Accordingly, these accruals are reflected in “Current liabilities of discontinued operations” on the Company’s Condensed Consolidated Balance Sheets.

At December 31, 2024, the Company’s accrual for environmental contingencies related to the Spartanburg site totaled $ 5,096 .

The Spartanburg site and related environmental liabilities were part of the sale of TFP to Toppan, which was completed on April 1, 2025.

This accrual is reflected in “Current liabilities of discontinued operations” on the Company’s Condensed Consolidated Balance Sheet at December 31, 2024 .

Other environmental matters

The Company has been named as a potentially responsible party at several other environmentally contaminated sites.

The Company has been named as a potentially responsible party at several environmentally contaminated sites.

All of the sites are also the responsibility of other parties.

1 unchanged sentence

However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s fi nancial statements.

At March 30, 2025 and December 31, 2024, the Company’s accrual for these other sites totaled $ 1,807 and $ 1,933 , respectively , and are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets.

At June 29, 2025 and December 31, 2024, the accruals for these other sites

SONOCO PRODUCTS COMPANY

totaled $ 1,773 and $ 1,933 , respectively , and are included in “Accrued expenses and other” on the Company’s Condensed Consolidated Balance Sheets.

Other Legal Matters

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements