NYSE$SON

Sonoco Products Co · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Sonoco reported mixed results for Q4 2024, with a modest increase in revenue but a decline in GAAP net income due to acquisition-related costs.

Sonoco posted Q4 2024 revenue of $1.36 billion, up 2% year-over-year. The company reported a GAAP net loss of $43 million due to acquisition-related costs, but adjusted net income was $100 million. Adjusted EPS came in at $1.00. Operating profit declined to $56 million, while adjusted EBITDA increased 4.6% to $247 million.

  • Q4 revenue increased 2% to $1.36 billion, driven by volume growth and the Eviosys acquisition.
  • GAAP net loss of $43 million due to acquisition-related costs, while adjusted net income was $100 million.
  • Adjusted EBITDA grew 4.6% year-over-year to $247 million.
  • Strong productivity initiatives offset cost headwinds, generating $41 million in savings.

Headline financials

Total Revenue

$1.36B

Previous: $1.64B-16.7%
EPS (adj)

$1.00

Previous: $1.02-2.0%
Capital Expenditures

-$106M

Previous: -$27.9M-281.3%
Free Cash Flow

$290M

No prior period
Net Income

-$43M

Previous: $81.2M-152.9%
Operating Income

$56.1M

Previous: $135M-58.6%
Gross Profit

$283M

Previous: $340M-16.7%

Revenue & EPS history

Sonoco · Revenue · Quarterly

$1.36B

Q4 2024-16.7%vs Q4 2023
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Sonoco · $1.52B total across 2 segments · Q3 2023

  • Consumer Packaging
    $938M-9.0%
  • Industrial Paper Packaging
    $580M-12.3%

Forward guidance

Sonoco expects approximately 20% growth in adjusted net income and a 30% increase in adjusted EBITDA in 2025, driven by cost synergies from the Eviosys acquisition and operational efficiency improvements.

Tailwinds

  • Projected 20% growth in adjusted net income for 2025.
  • Expected 30% increase in adjusted EBITDA.
  • Integration of Eviosys expected to generate $100 million in synergies over two years.
  • Continued focus on cost optimization and productivity improvements.
  • Strong free cash flow to support debt reduction and capital investments.

Headwinds

  • Higher interest expenses due to debt financing for Eviosys acquisition.
  • Potential macroeconomic uncertainties impacting raw material costs.
  • Continued pressure on margins from lower selling prices in key segments.
  • Integration challenges associated with the Eviosys acquisition.
  • Expected decline in revenue from divested TFP business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.5%

Avg return

Earnings day

-1.3%

Avg return

5 days after

-0.7%

Avg return

30 days after

40%

27 / 68 earnings

Positive

+9.7%

Q4 2025

Best reaction

-12.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.6%-0.6%-2.5%
Q4 2025+9.7%+9.3%+0.3%
Q3 2025-0.2%-3.2%-1.1%
Q1 2025-12.3%-3.8%-2.6%
Q4 2024-3.7%-3.2%-3.0%
Q3 2024-2.5%-4.2%-1.1%
Q2 2024-1.0%-6.8%+6.4%
Q1 2024-1.0%-0.8%+4.7%
Q4 2023+2.8%+0.0%+2.4%
Q3 2023+5.6%+7.5%+7.6%
Q2 2023+1.4%-2.1%-1.1%
Q1 2023-1.7%-0.8%-1.3%
Q4 2022-0.3%+0.4%-6.6%
Q3 2022-9.7%-10.6%-5.4%
Q2 2022+3.9%+5.3%+8.9%
Q1 2022-4.4%-8.5%-14.6%
Q4 2021-2.0%+0.4%-2.7%
Q3 2021-3.3%-3.7%-0.7%
Q2 2021-5.1%-4.1%-1.6%
Q1 2021+0.1%-0.4%+3.6%
Q4 2020-2.8%-3.0%+2.5%
Q3 2020-4.2%-9.2%+3.3%
Q2 2020+2.1%-0.1%+2.9%
Q1 2020+2.4%-4.4%-6.9%
Q4 2019+0.0%-0.1%-17.2%
Q3 2019-0.4%+0.1%+1.1%
Q2 2019-4.5%-5.0%-10.8%
Q1 2019-1.1%+0.6%+3.7%
Q4 2018-3.1%-1.3%-2.7%
Q3 2018+5.3%+1.8%+9.0%
Q2 2018+6.5%+5.2%+4.8%
Q1 2018+3.6%+3.6%+3.8%
Q4 2017-1.8%-3.3%-5.3%
Q3 2017+4.0%+2.4%+0.8%
Q2 2017-6.9%-6.7%-8.8%
Q1 2017+3.2%+2.9%-2.4%
Q4 2016-3.2%-2.1%-2.1%
Q3 2016-0.4%-2.2%+5.2%
Q2 2016+1.0%+1.8%+1.8%
Q1 2016-3.3%
Q4 2015+1.0%
Q3 2015+0.6%
Q2 2015-4.8%
Q1 2015-2.5%
Q4 2014+1.1%
Q3 2014+3.4%
Q2 2014-1.8%
Q1 2014+0.7%
Q4 2013+1.1%
Q3 2013+3.3%
Q2 2013+2.3%
Q1 2013-1.9%
Q4 2012+0.7%
Q3 2012+0.2%
Q2 2012-1.4%
Q1 2012+0.9%
Q4 2011+2.7%
Q3 2011+4.2%
Q2 2011-6.8%
Q1 2010-0.6%
Q1 2011-0.3%
Q4 2008-1.6%
Q4 2010-1.6%
Q3 2009-0.8%
Q3 2010-0.8%
Q4 2009-0.0%
Q2 2009-0.0%
Q2 2010-0.0%

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