Sonoco’s plastic divestitures, Eviosys scale, and self-help program support a defensive cash-flow re-rating, with an $86.66 probability-weighted five-year value versus a $57.49 share price.
Overview
Sonoco Products Company is a global packaging major with approximately 22,000 employees, 265 operations, and exposure split between the United States at 48% of sales and EMEA at 43%. Its strategic transformation is replacing volatile resin-based plastics with recyclable metal and fiber packaging: TFP was sold for $1.8 billion in April 2025, ThermoSafe for $656 million in November 2025, and Eviosys was acquired for $3.8 billion on December 4, 2024. **The result is a more focused, defensive platform** serving essential food, consumer, and industrial packaging demand. Q2 2026 sales were $1.885 billion, down 1.3% reported but up 2% organically, while adjusted EPS rose 10.2% to $1.51 and adjusted EBITDA was $324 million at a 17.2% margin. Record quarterly operating cash flow of $301 million and free cash flow of $237 million support deleveraging. **Valuation is supportive at approximately 7.1x 2027 estimated EBITDA versus a 7.5x-8.0x historical range.** Near-term catalysts are second-half price recovery, Eviosys synergies, the $150 million-$200 million savings program, and reel demand. The stock was near its $60.67 52-week high, versus an average analyst target of $61.78.