SONOCO PRODUCTS CO 10-Q

Item 1. Financial Statements. SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars and shares in thousands) June 29, 2025 December 31, 2024* Assets Current Assets Cash and cash equivalents $ 329,800 $ 431,010 Trade accounts receivable, net of allowances 1,055,765 907,526 Other receivables 211,963 175,877 Inventories, net: Finished and in process 651,460 494,090 Materials and supplies 631,774 522,049 Prepaid expenses 155,856 197,134 Current assets of discontinued operations — 450,874 Total Current Assets 3,036,618 3,178,560 Property, Plant and Equipment, Net 2,883,135 2,718,747 Goodwill 2,678,045 2,525,657 Other Intangible Assets, Net 2,755,292 2,586,698 Deferred Income Taxes 94,408 17,371 Right of Use Asset-Operating Leases 318,036 307,688 Other Assets 204,890 208,759 Non-current assets of discontinued operations — 964,310 Total Assets $ 11,970,424 $ 12,507,790 Liabilities and Equity Current Liabilities Payable to suppliers $ 1,214,260 $ 1,130,500 Accrued expenses and other 600,988 604,455 Notes payable and current portion of long-term debt 436,880 2,054,525 Accrued taxes 171,046 6,755 Current liabilities of discontinued operations — 242,056 Total Current Liabilities 2,423,174 4,038,291 Long-term Debt, Net of Current Portion 4,986,643 4,985,496 Noncurrent Operating Lease Liabilities 268,181 258,735 Pension and Other Postretirement Benefits 183,926 180,827 Deferred Income Taxes 573,916 583,470 Other Liabilities 283,751 60,847 Non-current liabilities of discontinued operations — 113,911 Total Liabilities 8,719,591 10,221,577 Commitments and Contingencies (See Note 18) Sonoco Shareholders’ Equity Common stock, no par value Authorized 300,000 shares; 98,628 and 98,260 shares issued and outstanding at June 29, 2025 and December 31, 2024, respectively 7,175 7,175 Capital in excess of stated value 183,339 183,250 Accumulated other comprehensive income/(loss) 17,363 ( 502,734 ) Retained earnings 3,027,647 2,583,923 Total Sonoco Shareholders’ Equity 3,235,524 2,271,614 Noncontrolling Interests 15,309 14,599 Total Equity 3,250,833 2,286,213 Total Liabilities and Equity $ 11,970,424 $ 12,507,790 * The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (the “United States” or “U.S.”). See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 3 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars and shares in thousands except per share data) 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 Cost of sales 1,504,164 993,558 2,859,705 2,031,029 Gross profit 406,277 285,243 759,964 556,408 Selling, general and administrative expenses 218,775 175,947 427,838 343,530 Restructuring/Asset impairment charges 9,752 17,963 23,333 48,973 (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)/income, net ( 6,559 ) 5,867 ( 13,076 ) 5,867 Non-operating pension costs 2,982 4,170 6,103 7,465 Interest expense 64,367 28,674 120,394 58,838 Interest income 4,122 3,059 11,470 6,192 Income from continuing operations before income taxes 105,881 71,893 174,424 114,139 Provision for income taxes 39,500 16,756 60,647 24,627 Income before equity in earnings of affiliates 66,381 55,137 113,777 89,512 Equity in earnings of affiliates, net of tax 2,270 2,274 4,191 3,411 Net income from continuing operations 68,651 57,411 117,968 92,923 Net income from discontinued operations 424,548 33,540 429,720 63,301 Net income 493,199 90,951 547,688 156,224 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 ) Net income attributable to Sonoco $ 493,423 $ 90,811 $ 547,852 $ 155,988 Weighted average common shares outstanding: Basic 99,171 98,671 99,055 98,583 Diluted 99,539 99,241 99,453 99,199 Per common share: Basic earnings per common share: Continuing operations $ 0.69 $ 0.58 $ 1.19 $ 0.94 Discontinued operations 4.28 0.34 4.34 0.64 Basic earnings per share attributable to Sonoco $ 4.97 $ 0.92 $ 5.53 $ 1.58 Diluted earnings per common share: Continuing operations $ 0.69 $ 0.58 $ 1.19 $ 0.93 Discontinued operations 4.27 0.34 4.32 0.64 Diluted earnings per share attributable to Sonoco $ 4.96 $ 0.92 $ 5.51 $ 1.57 See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 4 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Dollars in thousands) 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 Other comprehensive income/(loss): Foreign currency translation adjustments 339,452 ( 33,408 ) 515,291 ( 53,194 ) Changes in defined benefit plans, net of tax 2,935 2,079 3,479 2,122 Changes in derivative financial instruments, net of tax 1,324 ( 1,661 ) 3,081 ( 1,492 ) Other comprehensive income/(loss) 343,711 ( 32,990 ) 521,851 ( 52,564 ) Comprehensive income 836,910 57,961 1,069,539 103,660 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 (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 See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 5 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY (unaudited) (Dollars and shares in thousands) Total Equity Common Shares Capital in Excess of Stated Value Accumulated Other Comprehensive Income/(Loss) Retained Earnings Noncontrolling Interests Outstanding Amount December 31, 2024 $ 2,286,213 98,260 $ 7,175 $ 183,250 $ ( 502,734 ) $ 2,583,923 $ 14,599 Net income 54,489 54,429 60 Other comprehensive income/(loss): Translation gain/(loss) 175,839 175,864 ( 25 ) Defined benefit plan adjustment, net of tax 544 544 Derivative financial instruments, net of tax 1,757 1,757 Other comprehensive income/(loss) 178,140 178,165 ( 25 ) Divestiture of non-controlling interest ( 637 ) ( 637 ) Dividends ( 51,558 ) ( 51,558 ) Dividends paid to noncontrolling interests ( 243 ) ( 243 ) Issuance of stock awards 273 588 273 Shares repurchased ( 10,573 ) ( 220 ) ( 10,573 ) Share-based compensation 5,828 5,828 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) 6 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY (unaudited) (Dollars and shares in thousands) Total Equity Common Shares Capital in Excess of Stated Value Accumulated Other Comprehensive Loss Retained Earnings Noncontrolling Interests Outstanding Amount December 31, 2023 $ 2,431,835 97,957 $ 7,175 $ 159,047 $ ( 366,262 ) $ 2,624,380 $ 7,495 Net income 65,273 65,177 96 Other comprehensive (loss)/income: Translation loss ( 19,786 ) ( 19,319 ) ( 467 ) Defined benefit plan adjustment, net of tax 43 43 Derivative financial instruments, net of tax 169 169 Other comprehensive loss ( 19,574 ) ( 19,107 ) ( 467 ) Dividends ( 50,348 ) ( 50,348 ) Issuance of stock awards 204 460 204 Shares repurchased ( 9,139 ) ( 162 ) ( 9,139 ) Share-based compensation 8,325 8,325 Other 906 906 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) 7 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Dollars in thousands) Six Months Ended June 29, 2025 June 30, 2024 Cash Flows from Operating Activities: Net income $ 547,688 $ 156,224 Adjustments to reconcile net income to net cash (used)/provided by operating activities: Asset impairments 6,329 22,956 Depreciation and amortization 250,967 180,045 Share-based compensation expense 9,973 14,981 Equity in earnings of affiliated companies, net ( 4,191 ) ( 3,411 ) Cash dividends from affiliated companies 5,731 5,458 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 Pension and postretirement plan contributions ( 10,458 ) ( 9,125 ) Net decrease in deferred tax liabilities ( 55,633 ) ( 11,602 ) Change in assets and liabilities, net of effects from acquisitions, divestitures and foreign currency adjustments: Trade accounts receivable ( 67,668 ) ( 102,497 ) Inventories ( 203,808 ) 15,366 Payable to suppliers 8,056 57,929 Prepaid expenses 9,000 ( 51,103 ) Income taxes payable and other income tax items 197,664 6,554 Accrued expenses and other assets and liabilities ( 98,162 ) ( 3,682 ) Net cash (used)/provided by operating activities ( 14,653 ) 275,489 Cash Flows from Investing Activities: Purchases of property, plant and equipment ( 187,483 ) ( 179,694 ) 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 provided/(used) by investing activities 1,645,307 ( 96,609 ) Cash Flows from Financing Activities: Proceeds from issuance of debt 36,969 32,615 Principal repayment of debt ( 2,060,445 ) ( 112,859 ) Net change in commercial paper 354,600 28,000 Net increase in book cash overdrafts 6,476 3,725 Payment of loan financing costs — ( 19,000 ) Dividends paid to noncontrolling interests ( 243 ) — Cash dividends ( 103,558 ) ( 101,310 ) Payments for share repurchases ( 10,576 ) ( 9,162 ) Net cash used by financing activities ( 1,776,777 ) ( 177,991 ) Effects of Exchange Rate Changes on Cash 32,863 ( 12,593 ) 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) 8 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 1: Basis of Interim Presentation 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 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. All amounts, percentages and disclosures for all periods presented in this Quarterly Report on Form 10-Q reflect only the continuing operations of Sonoco unless otherwise noted. See Note 2 for additional information. 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- 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. Note 2: Discontinued Operations 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 December 31, 2024: 9 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) December 31, 2024 Cash and cash equivalents $ 12,050 Trade accounts receivable, net of allowances of $ 2,582 at December 31, 2024 209,379 Other receivables 46,001 Inventories, net: Finished and in process 80,573 Materials and supplies 94,083 Prepaid expenses 8,788 Current assets of discontinued operations $ 450,874 Property, plant and equipment, net of accumulated depreciation of $ 465,923 at December 31, 2024 262,662 Goodwill 502,621 Other intangible assets, net of accumulated amortization of $ 206,437 and December 31, 2024 103,593 Long-term deferred income taxes 262 Right of use asset-operating leases 75,855 Other assets 19,317 Non-current assets of discontinued operations $ 964,310 Payable to suppliers 172,720 Accrued expenses and other 62,562 Notes payable and current portion of long-term debt 6,774 Current liabilities of discontinued operations $ 242,056 Long-term debt 29,850 Noncurrent operating lease liabilities 67,789 Deferred income taxes 15,928 Other liabilities 344 Non-current liabilities of discontinued operations $ 113,911 10 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 Cost of sales — 272,567 250,854 535,086 Gross profit — 72,111 69,824 138,499 Selling, general and administrative expenses — 26,263 31,607 52,162 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 Other income, net — — 182 — Interest expense — 967 24,911 2,023 Interest income — 497 281 922 Income from discontinued operations before income taxes 625,773 44,091 638,752 83,341 Provision for income taxes 201,225 10,551 209,032 20,040 Net income from discontinued operations 424,548 33,540 429,720 63,301 Net income from discontinued operations attributable to noncontrolling interests — ( 30 ) — ( 78 ) Net income attributable to discontinued operations $ 424,548 $ 33,510 $ 429,720 $ 63,223 Weighted average common shares outstanding: Basic 99,171 98,671 99,055 98,583 Diluted 99,539 99,241 99,453 99,199 Per common share: Net income attributable to discontinued operations: Basic $ 4.28 $ 0.34 $ 4.34 $ 0.64 Diluted $ 4.27 $ 0.34 $ 4.32 $ 0.64 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 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.” 11 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 3: New Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires companies to disclose disaggregated amounts relating to (a) inventory purchases; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization. Further, this guidance will require companies to include certain amounts that are already required to be disclosed under current U.S. generally accepted accounting principles (“GAAP”) in the same disclosure as the other disaggregation requirements, disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The standard is intended to benefit investors by providing more detailed expense disclosures that would be useful in making capital allocation decisions. This guidance is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027 but early adoption is permitted. ASU 2024-03 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. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which modifies the rules on income tax disclosures to require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. 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. Note 4: Acquisitions and Divestitures Eviosys Acquisition 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 $ 3,773,298 , 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. See Note 11 to the Company’s Consolidated Financial Statements included in Part IV, Item 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for more information. The financial results of Eviosys are included in the Company’s Consumer Packaging segment. 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: 12 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Initial Preliminary Allocation Measurement Period Adjustments Updated Preliminary Allocation Trade accounts receivable $ 300,385 — $ 300,385 Other receivables 114,634 1,079 115,713 Inventories 445,945 404 446,349 Prepaid expenses 47,509 ( 2,977 ) 44,532 Property, plant and equipment 1,057,779 ( 28,434 ) 1,029,345 Right of use asset - operating leases 43,566 — 43,566 Other intangible assets 1,967,678 10,859 1,978,537 Goodwill 1,285,518 ( 32,335 ) 1,253,183 Long-term deferred income taxes 39,023 ( 388 ) 38,635 Other assets 3,330 24 3,354 Payable to suppliers ( 518,766 ) 1,672 ( 517,094 ) Accrued expenses and other ( 168,529 ) 324 ( 168,205 ) Accrued wages and other compensation ( 41,749 ) ( 57 ) ( 41,806 ) Notes payable and current portion of long-term debt ( 76,438 ) ( 5 ) ( 76,443 ) Noncurrent operating lease liabilities ( 32,022 ) — ( 32,022 ) Pension and other postretirement benefits ( 51,849 ) — ( 51,849 ) Long-term debt — ( 34 ) ( 34 ) Deferred income taxes ( 599,941 ) 32,947 ( 566,994 ) Other long-term liabilities ( 16,714 ) 393 ( 16,321 ) Noncontrolling interests ( 9,533 ) — ( 9,533 ) Net assets acquired $ 3,789,826 $ ( 16,528 ) $ 3,773,298 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: inventories, property, plant and equipment; goodwill; other intangible assets; 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. 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 Six Months Ended Consolidated June 30, 2024 June 30, 2024 Net sales $ 1,880,085 $ 3,719,655 Net income from continuing operations $ 78,215 $ 86,361 Net income attributable to Sonoco 1 $ 111,725 $ 149,584 1 Includes results of discontinued operations 13 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 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 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)/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)/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. 14 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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. 15 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 5: Shareholders’ Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Numerator: Net income from continuing operations $ 68,651 $ 57,411 $ 117,968 $ 92,923 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 Net income attributable to Sonoco $ 493,423 $ 90,811 $ 547,852 $ 155,988 Denominator: Weighted average common shares outstanding 99,171 98,671 99,055 98,583 Dilutive effect of shared-based compensation 368 570 398 616 Diluted outstanding shares 99,539 99,241 99,453 99,199 Per common share: Basic earnings per common share: Net income from continuing operations $ 0.69 $ 0.58 $ 1.19 $ 0.94 Net income attributable to Sonoco $ 4.97 $ 0.92 $ 5.53 $ 1.58 Diluted earnings per common share: Net income from continuing operations $ 0.69 $ 0.58 $ 1.19 $ 0.93 Net income attributable to Sonoco $ 4.96 $ 0.92 $ 5.51 $ 1.57 Cash dividends $ 0.53 $ 0.52 $ 1.05 $ 1.03 No adjustments were made to “Net income attributable to Sonoco” in the computations of net income attributable to Sonoco per common share. Anti-dilutive Securities Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (“SARs”) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were anti-dilutive. 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 16 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Stock Repurchases On April 20, 2021, the Company’s Board of Directors (the “Board”) authorized the repurchase of the Company’s common stock in an aggregate amount of up to $ 350,000 . Following several repurchase transactions in 2021, a total of $ 137,972 remained available for share repurchases under this authorization as of December 31, 2021. Subsequent to 2021, no additional shares have been repurchased under this authorization. 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 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 On February 12, 2025, the Board declared a regular quarterly dividend of $ 0.52 per share. This dividend was paid on March 10, 2025 to all shareholders of record as of February 26, 2025. On April 16, 2025, the Board declared a regular quarterly dividend of $ 0.53 per share. 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. Note 6: Restructuring and Asset Impairments Due to its geographic footprint and the cost-competitive nature of its businesses, the Company is continually seeking more cost-effective means and structures to serve its customers and to respond to significant changes in its markets. As such, plant closures in connection with footprint rationalization and headcount reductions are an important component of the Company’s cost control initiatives. The amount of these costs can vary significantly from quarter to quarter and from year to year depending upon the scope, nature, and location of the restructuring activities. Following are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented: 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 Other asset impairments — — — — Restructuring/Asset impairment charges $ 9,752 $ 17,963 $ 23,333 $ 48,973 17 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: 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 Asset Impairment/Disposal of Assets 1,381 10,898 6,482 19,020 Other Costs 2,004 1,585 3,486 6,682 Total restructuring and restructuring-related asset impairment charges $ 9,752 $ 17,963 $ 23,333 $ 48,973 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 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 Industrial Paper Packaging 8,234 7,737 20,769 30,340 All Other 16 214 ( 16 ) 1,362 Corporate ( 7 ) 136 ( 158 ) 3,078 Total restructuring and restructuring-related asset impairment charges $ 9,752 $ 17,963 $ 23,333 $ 48,973 Restructuring and restructuring-related asset impairment charges are included in “Restructuring/Asset impairment charges” in the Company’s Condensed Consolidated Statements of Income. 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: Severance and Termination Benefits Asset Impairments/ Disposal of Assets Other Costs Total Accrual Activity Liability at December 31, 2024 $ 24,034 $ — $ 909 $ 24,943 2025 charges 13,365 6,482 3,486 23,333 Cash (payments)/receipts ( 19,370 ) 88 ( 2,872 ) ( 22,154 ) Asset write downs/disposals — ( 6,570 ) — ( 6,570 ) Foreign currency translation 903 — 318 1,221 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. 18 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) “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. The Company also expects to recognize future additional charges totaling approximately $ 3,800 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2025. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. Note 7: 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: Foreign Currency Items Defined Benefit Pension Items Gains and Losses on Cash Flow Hedges Accumulated Other Comprehensive Income/(Loss) Balance at December 31, 2024 $ ( 410,931 ) $ ( 90,613 ) $ ( 1,190 ) $ ( 502,734 ) 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 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 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 June 30, 2024 $ ( 320,263 ) $ ( 97,505 ) $ ( 549 ) $ ( 418,317 ) 19 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 Income/(Loss) Three Months Ended Six Months Ended Details about Accumulated Other Comprehensive Income/(Loss) Components June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Affected Line Item in the Condensed Consolidated Statements of Income 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)/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 Gains/(losses) on cash flow hedges Foreign exchange contracts (b) 1,368 230 1,767 666 Net sales Foreign exchange contracts (b) ( 151 ) ( 64 ) ( 192 ) ( 139 ) Cost of sales 1,217 166 1,575 527 Income from continuing operations before income taxes Income tax impact ( 319 ) ( 147 ) ( 410 ) ( 159 ) Provision for income taxes 898 19 1,165 368 Net income 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 ( 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 ( 638 ) ( 1,328 ) ( 1,447 ) ( 2,303 ) Net income Total reclassifications for the period $ ( 47,695 ) $ ( 4,222 ) $ ( 52,029 ) $ ( 4,848 ) Net income (a) See Note 4 for additional details. (b) See Note 11 for additional details. (c) See Note 13 for additional details. 20 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 Before Tax Amount Tax (Expense) Benefit After Tax Amount Before Tax Amount Tax (Expense) Benefit After Tax Amount Foreign currency items: 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 income/(loss) to net income (a) 47,955 — 47,955 2,913 — 2,913 Net other comprehensive income/(loss) from foreign currency items 289,227 48,446 337,673 ( 32,367 ) ( 999 ) ( 33,366 ) Defined benefit pension items: Other comprehensive income/(loss) before reclassifications 3,025 ( 728 ) 2,297 671 80 751 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. (c) See Note 11 for additional details. 21 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 Before Tax Amount Tax (Expense) Benefit After Tax Amount Before Tax Amount Tax (Expense) Benefit After Tax Amount 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 Gains and losses on cash flow hedges: Other comprehensive (loss)/income before reclassifications 5,243 ( 997 ) $ 4,246 ( 1,608 ) 484 ( 1,124 ) Amounts reclassified from accumulated other comprehensive income/(loss) to net income (c) ( 1,575 ) 410 ( 1,165 ) ( 527 ) 159 ( 368 ) Net other comprehensive income/(loss) from cash flow hedges 3,668 ( 587 ) 3,081 ( 2,135 ) 643 ( 1,492 ) Other comprehensive income/(loss) $ 463,092 $ 57,005 $ 520,097 $ ( 48,555 ) $ ( 3,500 ) $ ( 52,055 ) (a) See Note 3 for additional details. (b) See Note 12 for additional details. (c) See Note 10 for additional details. 22 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 8: Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill for the six-month period ended June 29, 2025 is as follows: Consumer 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 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. The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2024 and analyzed certain qualitative and quantitative factors in determining whether a goodwill impairment existed. The Company’s assessments reflected a number of significant management assumptions and estimates including the Company’s forecast of sales growth, gross profit margins, and discount rates. Changes in these assumptions could materially impact the Company’s conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units. 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 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. 23 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Other Intangible Assets A summary of other intangible assets as of June 29, 2025 and December 31, 2024 is as follows: June 29, 2025 December 31, 2024 Other Intangible Assets, gross: Patents $ 29,596 $ 28,941 Customer lists 2,929,093 2,679,372 Trade names 40,543 38,623 Proprietary technology 244,220 226,936 Other 2,842 2,339 Total Other Intangible Assets, gross $ 3,246,294 $ 2,976,211 Accumulated Amortization: Patents $ ( 17,230 ) $ ( 15,955 ) Customer lists ( 418,524 ) ( 332,680 ) Trade names ( 15,526 ) ( 13,239 ) Proprietary technology ( 37,876 ) ( 26,203 ) Other ( 1,846 ) ( 1,436 ) Total Accumulated Amortization ( 491,002 ) ( 389,513 ) Other Intangible Assets, net $ 2,755,292 $ 2,586,698 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. Other intangible assets are amortized using the straight-line method over their respective useful lives when management has determined that the straight-line method approximates the pattern of consumption of the respective intangible assets or in relation to the asset’s specific pattern of consumption if management has determined that the straight-line method does not provide a fair approximation of the consumption of benefits. These lives generally range from three to forty years . The Company has no intangible assets with indefinite lives. 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. Note 9: Supply Chain Financing The Company facilitates voluntary supply chain financing programs (the “SCF Programs”) to provide certain of its suppliers with the opportunity to sell receivables due from the Company to the participating financial institutions in the programs. Such sales are conducted at the sole discretion of both the suppliers and the financial institutions on a nonrecourse basis at a rate that leverages the Company’s credit rating and thus might be more beneficial to the supplier. No guarantees are provided by the Company or any of its subsidiaries under the SCF Programs. The Company’s responsibility under the agreements is limited to making payment to the financial institutions for confirmed invoices based on the terms originally negotiated with its suppliers. Both the Company and the financial institutions have the right to terminate the SCF Programs by providing 30 days prior written notice to the other party. The Company does not enter into any agreements with suppliers regarding their participation in the SCF Programs. 24 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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) $ 28,341 $ 28,496 (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. Note 10: Debt Details of the Company’s debt at June 29, 2025 and December 31, 2024 are as follows: June 29, 2025 December 31, 2024 Commercial paper $ 354,600 $ — 364-Day term loan due December 2025 — 1,493,568 Term loan due December 2026 698,759 698,167 Syndicated term loan due August 2028 497,993 497,674 1.800 % notes due February 2025 — 399,933 4.450 % notes due September 2026 497,796 496,869 2.250 % notes due February 2027 299,183 298,930 4.600 % notes due September 2029 595,099 594,519 3.125 % notes due May 2030 597,239 596,958 2.850 % notes due February 2032 496,559 496,302 5.000 % notes due September 2034 690,322 689,802 5.750 % notes due November 2040 536,298 536,282 Other foreign denominated debt 73,514 155,048 Finance lease obligations 68,925 67,628 Other debt 17,236 18,341 Total debt 5,423,523 7,040,021 Less: Notes payable and current portion of long-term debt ( 436,880 ) ( 2,054,525 ) Long-term debt $ 4,986,643 $ 4,985,496 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 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 . 25 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. 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 June 29, 2025, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants. Note 11: 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. June 29, 2025 December 31, 2024 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, net of current portion $ 4,986,643 $ 4,865,699 $ 4,985,496 $ 4,800,455 The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement. Cash Flow Hedges 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. Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Commodity Cash Flow Hedges 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 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. 26 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Foreign Currency Cash Flow Hedges 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 June 29, 2025 were as follows (in thousands): Currency Action Quantity USD Contracts Colombian peso purchase 13,705,531 Mexican peso purchase 205,163 Danish krone purchase 78,453 Polish zloty purchase 69,392 Czech koruna purchase 57,865 Turkish lira purchase 63,099 Euro purchase 1,870 Canadian dollar purchase 1,425 Swedish krona sell ( 2,788 ) British pound sell ( 6,274 ) Euro Contracts Euro purchase 23,511 British pound sell ( 722 ) USD sell ( 2,588 ) Hungarian forint sell ( 2,556,665 ) Swiss franc sell ( 216 ) 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. 27 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Net Investment Hedge In 2023, the Company became a party to cross-currency swap agreements with a total notional amount of $ 500,000 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 swap agreements, which had a maturity of December 18, 2026, provided for the Company to receive semi-annual interest payments in U.S. dollars at a fixed rate and to make semi-annual interest payments in euros at a fixed rate. On April 15, 2024, as a result of the strengthening of the U.S. dollar against the euro, as well as a reduction in the differential between U.S. and European interest rates, the Company terminated its swap agreements and received a net cash settlement of $ 9,068 . 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, 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. 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. 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. 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. 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 $( 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 The Company routinely enters into other derivative contracts which are not designated for hedge accounting treatment under ASC 815, “Derivatives and Hedging.” As such, changes in fair value of these non-designated derivatives are recorded directly to income and expense in the periods that they occur. Cash flows from derivative financial instruments not designated as hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. 28 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Foreign Currency Hedges 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 June 29, 2025, were as follows (in thousands): Currency Action Quantity USD Contracts Colombian peso purchase 68,259,025 Mexican peso purchase 290,402 Indonesian rupiah purchase 8,449,165 Thai baht sell ( 20,283 ) Euro sell ( 11 ) Canadian dollar purchase 4,212 Turkish lira purchase 28,304 British pound sell ( 110 ) Euro Contracts British pound sell ( 97,648 ) Polish zloty sell ( 143,810 ) Thai baht sell ( 536,362 ) Commodity Hedges The Company has entered into non-designated derivative contracts to manage the cost of a nticipated purchases of natural gas. 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. 29 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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: Commodity Contracts Prepaid expenses $ 1,311 $ 671 Commodity Contracts Accrued expenses and other ( 1,569 ) ( 19 ) Foreign Exchange Contracts Prepaid expenses 3,134 2,068 Foreign Exchange Contracts Accrued expenses and other ( 1,963 ) ( 3,909 ) Net investment hedge Prepaid expenses 21,821 26,833 Net investment hedge Other assets — 1,845 Net investment hedge Other liabilities ( 240,061 ) ( 16,759 ) Derivatives not designated as hedging instruments: 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 ) Foreign Exchange Contracts Accrued expenses and other ( 236 ) ( 3,022 ) While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements. 30 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income Derivatives in Cash Flow Hedging Relationships: Three-month period ended June 29, 2025 Foreign Exchange Contracts $ 2,902 Net sales $ 1,368 Cost of sales ( 151 ) Commodity Contracts ( 374 ) Cost of sales — Three-month period ended June 30, 2024 Foreign Exchange Contracts $ 2,206 Net sales $ 230 Cost of sales ( 64 ) Commodity Contracts 62 Cost of sales — Description Gain or (Loss) Recognized Location of Gain or (Loss) Recognized in Income Statement Derivatives not Designated as Hedging Instruments: 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 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 Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ 1,368 $ ( 151 ) $ 230 $ ( 64 ) Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net income $ 1,368 $ ( 151 ) $ 230 $ ( 64 ) Commodity contracts: Amount of gain reclassified from accumulated other comprehensive income/(loss) into net income $ — $ — $ — $ — 31 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 in OCI on Derivatives Location of Gain or (Loss) 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 sales 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 $ — $ — $ — $ — 32 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 12: Fair Value Measurements Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 – Observable inputs such as quoted market prices in active markets; Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 – Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets that are calculated at Net Asset Value per share (“NAV”) are not required to be categorized within the fair value hierarchy. 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 June 29, 2025 Assets measured at NAV Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ ( 258 ) $ — $ — $ ( 258 ) $ — Foreign exchange contracts 1,171 — — 1,171 — Net investment hedge ( 218,240 ) — — ( 218,240 ) — Non-hedge derivatives, net: Commodity contracts 1,303 — — 1,303 — Foreign exchange contracts 3,039 — — 3,039 — Description December 31, 2024 Assets measured at NAV Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 652 $ — $ — $ 652 $ — Foreign exchange contracts ( 1,841 ) — — ( 1,841 ) — Net investment hedge 11,919 — — 11,919 — Non-hedge derivatives, net: Commodity contracts 387 — — 387 — Foreign exchange contracts ( 3,081 ) — — ( 3,081 ) — As discussed in Note 11 , the Company uses derivatives to mitigate the effect of commodity fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates. 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 six-month period ended June 29, 2025. The Company has an investment in the preferred stock of a nonaffiliated private company. This investment is accounted for under the measurement alternative of cost less impairment, adjusted for any qualifying observable price changes on a non-recurring basis. 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 June 29, 2025. 33 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The Company measures certain non-financial assets and non-financial liabilities at fair value on a non-recurring basis. 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 June 29, 2025 or December 31, 2024. Note 13: Employee Benefit Plans Retirement Plans and Retiree Health and Life Insurance Plans The Company provides non-contributory defined benefit pension plans for certain of its employees in the United States, Mexico, Belgium, Germany, France, and Turkey. Following the acquisition of Eviosys on December 4, 2024, the Company now also provides non-contributory defined benefit pension plans for certain of its employees in Italy, Switzerland, Spain, and Ireland. 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/(income) include the following: Three Months Ended Six Months Ended June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Retirement Plans Service cost $ 1,366 $ 535 $ 2,562 $ 1,290 Interest cost 5,448 5,126 10,581 9,835 Expected return on plan assets ( 3,420 ) ( 2,776 ) ( 6,625 ) ( 5,572 ) Amortization of prior service cost 209 235 397 440 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 Retiree Health and Life Insurance Plans Service cost $ 27 $ 34 $ 66 $ 88 Interest cost 216 207 453 457 Expected return on plan assets ( 104 ) ( 97 ) ( 204 ) ( 195 ) Amortization of prior service cost 91 96 185 192 Amortization of net actuarial gain ( 357 ) ( 301 ) ( 571 ) ( 447 ) 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 $ 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. 34 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 14: Income Taxes 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. statutory rate due primarily to rate differences between U.S. and non-U.S. jurisdictions and the relative amounts earned in those jurisdictions, state income taxes, and discrete tax adjustments that were not consistent year over year. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. 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 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. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations and pays taxes in many countries outside of the U.S. and taxes on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that the loss of such benefit would have a material effect on the Company’s overall effective tax rate. Note 15: Leases The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company’s lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842, “Leases.” Most of the Company’s real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years . The Company’s leases do not have any significant residual value guarantees or restrictive covenants. As the implicit rate in the Company’s leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. 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 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: 35 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Classification Balance Sheet Location June 29, 2025 December 31, 2024 Lease Assets Operating lease assets Right of Use Asset - Operating Leases $ 318,036 $ 307,688 Finance lease assets Other Assets 73,487 76,831 Total lease assets $ 391,523 $ 384,519 Lease Liabilities Current operating lease liabilities Accrued expenses and other $ 56,851 $ 52,648 Current finance lease liabilities Notes payable and current portion of long-term debt 24,846 22,284 Total current lease liabilities $ 81,697 $ 74,932 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 268,181 $ 258,735 Noncurrent finance lease liabilities Long-term Debt, net of current portion 44,079 45,344 Total noncurrent lease liabilities $ 312,260 $ 304,079 Total lease liabilities $ 393,957 $ 379,011 Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. 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- 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 Finance lease cost: Amortization of lease asset (a) 3,285 3,126 6,287 6,211 Interest on lease liabilities (b) 793 887 1,493 1,808 Variable lease cost (a) (c) 11,269 8,704 23,691 15,301 Impairment charges (d) 545 — 1,178 — Total lease cost $ 32,232 $ 23,630 $ 64,473 $ 47,603 (a) Production-related costs are included in “Cost of sales” and administrative costs are included in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Income. (b) Included in “Interest expense” in the Condensed Consolidated Statements of Income. (c) Also includes short term lease costs, which are deemed immaterial . (d) Impairment charges are included in “Restructuring/asset impairment charges” in the Company’s Condensed Consolidated Statements of Income. See Note 6 for additional information. 36 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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: Operating cash flows used by operating leases $ 29,599 $ 23,365 Operating cash flows used by finance leases 1,493 1,808 Financing cash flows used by finance leases 7,075 7,495 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities 15,305 42,998 Leased assets obtained in exchange for new finance lease liabilities 13,903 4,652 Modification to leased assets for increase in operating lease liabilities 10,090 3,456 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 ) Termination reclasses to decrease operating lease liabilities ( 7,756 ) ( 2,304 ) Termination reclasses to decrease finance lease assets ( 82 ) ( 163 ) Termination reclasses to decrease finance lease liabilities ( 84 ) ( 164 ) Note 16: Revenue Recognition The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer’s designated carrier. The Company commonly enters into Master Supply Arrangements with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in “Cost of sales,” and freight charged to customers is included in “Net sales” in the Company’s Condensed Consolidated Statements of Income. The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in “Accrued expenses and other” in the Company’s Condensed Consolidated Balance Sheets. Payment terms under the Company’s sales arrangements are short term, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of estimated revenue and are determinable within a short time period following the sale. The following table sets forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other,” respectively, in the Company’s Condensed Consolidated Balance Sheets. June 29, 2025 December 31, 2024 Contract Assets $ 98,907 $ 67,062 Contract Liabilities ( 42,515 ) ( 60,024 ) 37 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 Contract Asset Contract Liability Contract Asset Contract Liability Beginning Balance $ 67,062 $ ( 60,024 ) $ 14,754 $ ( 15,252 ) Acquired as part of a business combination — — 62,439 ( 47,478 ) Revenue deferred or rebates accrued — ( 18,369 ) — ( 25,736 ) Recognized as revenue — 477 — 2,341 Rebates paid to customers — 35,401 — 26,101 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 98,907 — 67,062 — Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combination ( 67,062 ) — ( 77,193 ) — Ending Balance $ 98,907 $ ( 42,515 ) $ 67,062 $ ( 60,024 ) Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and receipts of advance payments. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the second half of the contract term. 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 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 June 29, 2025 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 467,148 $ 373,341 $ 79,214 $ 919,703 Europe, Middle East and Africa (EMEA) 707,327 95,032 15,350 817,709 Canada 4,404 23,312 — 27,716 Asia Pacific 23,675 36,582 345 60,602 Other 24,479 59,972 260 84,711 Total $ 1,227,033 $ 588,239 $ 95,169 $ 1,910,441 38 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 EMEA 101,543 96,428 14,628 212,599 Canada 4,620 25,415 — 30,035 Asia Pacific 23,290 53,937 359 77,586 Other 24,108 61,775 261 86,144 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 Note 17: Segment Reporting The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. The products produced and sold within the Consumer Packaging segment are generally used to package a variety of consumer products and consist primarily of round and shaped rigid paper, steel and plastic containers; and metal and peelable membrane ends, closures, and components. The primary products produced and sold within the Industrial Paper Packaging segment include paperboard tubes, cones, and cores; paper-based protective packaging; and uncoated recycled paperboard. 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. 39 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM assesses segment performance and allocates resources to each segment by using each segment’s operating profit. The CODM uses operating profit for each segment in the annual budgeting and forecasting process and reviews segment operating profit quarterly when making decisions about allocating capital and operating resources to segments. Disaggregated assets by segment are not disclosed since segment assets are not regularly provided to the CODM. Segment operating profit viewed by the Company to evaluate segment performance does not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; gains/losses from the sale of businesses or other assets; acquisition, integration and divestiture-related costs; changes in last-in, first-out (“LIFO”) inventory reserves; derivative gains/losses; or certain other items, if any, the exclusion of which the Company’s management believes improves the comparability and analysis of the ongoing operating performance of the business. 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. The following table sets forth financial information about each of the Company’s reportable segments: SEGMENT FINANCIAL INFORMATION 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 Intersegment sales (1) 2,548 26,522 29,070 1,229,581 614,761 1,844,342 Reconciliation of sales Other sales (2) 96,341 Elimination of intersegment sales ( 30,242 ) Total consolidated sales 1,910,441 Less: (3) Cost of sales (4) ( 989,484 ) ( 442,971 ) Other segment items (5) ( 79,744 ) ( 90,559 ) Segment operating profit $ 160,353 $ 81,231 $ 241,584 Other segment disclosures: Equity in earnings of affiliates, net of tax $ 170 $ 2,100 Depreciation and amortization (6) $ 52,801 $ 29,838 40 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 41 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 Intersegment sales (1) 2,050 26,887 28,937 585,101 627,657 1,212,758 Reconciliation of sales Other sales (2) 96,839 Elimination of intersegment sales ( 30,796 ) Total consolidated sales 1,278,801 Less: (3) Cost of sales (4) ( 462,567 ) ( 466,337 ) Other segment items (5) ( 48,778 ) ( 94,362 ) Segment operating profit $ 73,756 $ 66,958 $ 140,714 Other segment disclosures: Equity in earnings of affiliates, net of tax $ 35 $ 2,239 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) 182,630 Elimination of intersegment sales ( 61,389 ) Total consolidated sales 3,619,669 Less: (3) 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 42 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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) 232,536 Elimination of intersegment sales ( 62,778 ) Total consolidated sales 2,587,437 Less: (3) 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 (1) Intersegment sales are recorded at a market-related transfer price. (2) Sales from businesses below the quantitative threshold are attributable to the group of businesses within All Other. (3) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (4) 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. (5) 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. (6) 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. 43 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 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 Other operating profits (1) 13,109 13,865 25,035 30,990 Unallocated amounts: Restructuring/Asset impairment charges ( 9,752 ) ( 17,963 ) ( 23,333 ) ( 48,973 ) Amortization of acquisition intangibles ( 44,193 ) ( 17,479 ) ( 86,154 ) ( 35,373 ) (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 (losses)/gains ( 2,154 ) 3,485 795 3,771 Other corporate costs (2) ( 7,755 ) ( 12,634 ) ( 18,853 ) ( 23,722 ) Other operating (charges)/income, net (3) ( 735 ) 2,019 ( 1,994 ) ( 1,304 ) 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 ) Interest expense ( 64,367 ) ( 28,674 ) ( 120,394 ) ( 58,838 ) Interest income 4,122 3,059 11,470 6,192 Income from continuing operations before income taxes $ 105,881 $ 71,893 $ 174,424 $ 114,139 (1) Operating profit from segments below the quantitative threshold are attributable to the group of businesses within All Other. (2) Other corporate costs represent recurring operating expenses previously allocated to TFP that will remain with Sonoco subsequent to the divestiture. (3) Primarily consists of highly inflationary accounting in Turkey and other miscellaneous charges in both 2025 and 2024. (4) 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. 44 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The following table sets forth the reconciliation of other segment disclosures to consolidated totals for the periods presented. 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 Industrial Paper Packaging 2,100 2,239 4,072 3,364 Reportable Segment Total 2,270 2,274 4,191 3,411 Adjustments — — — — Consolidated Total $ 2,270 $ 2,274 $ 4,191 $ 3,411 Depreciation and amortization Consumer Packaging $ 52,801 $ 25,232 $ 101,756 $ 50,129 Industrial Paper Packaging 29,838 28,641 58,171 57,144 Reportable Segment Total 82,639 53,873 159,927 107,273 Other (1) 46,836 20,196 91,351 41,742 Consolidated Total $ 129,475 $ 74,069 $ 251,278 $ 149,015 (1) Other represents depreciation and amortization expense for the All Other group of businesses and total amortization of acquisition intangibles for Sonoco, excluding discontinued operations. Note 18: Commitments and Contingencies In accordance with the requirements of ASC 450, “Contingencies,” the Company records accruals for estimated losses at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material. Environmental Matters The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. Spartanburg In connection with its acquisition of Tegrant in November 2011, the Co mpany identified potential environmental contamination at a site in Spartanburg, South Carolina. 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 environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. 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 June 29, 2025 and December 31, 2024, the accruals for these other sites 45 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 In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. 46 SONOCO PRODUCTS COMPANY