Sonoco Q4 revenue rises 29.7%, beats estimates on Titan acquisition impact

Overview

• Sustainable packaging firm's Q4 revenue rose 29.7%, slightly beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company completed sale of ThermoSafe business, reducing net debt by $965 mln

Outlook

• Sonoco targets full-year adjusted EPS of $5.80 to $6.20

• Company expects 2026 adjusted EBITDA of $1.25 bln to $1.35 bln

• Sonoco projects 2026 cash flow from operations at $700 mln to $800 mln

Result Drivers

• ACQUISITION IMPACT - Revenue growth driven by acquisition of Titan Holdings I B.V., enhancing Metal Packaging EMEA business

• THERMOSAFE SALE - Gain from sale of ThermoSafe business unit boosted net income

• PRICE AND FX BENEFITS - Higher prices and favorable foreign exchange rates supported revenue growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the paper packaging peer group is "buy"

• Wall Street's median 12-month price target for Sonoco Products Co is $53.00, about 2.6% above its February 13 closing price of $51.67

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX6lVhMr

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