Sonoco Products Company announced a restructuring of its Consumer Packaging business, merging the Metal Packaging and Rigid Paper Containers units into two geographically focused segments—Consumer Packaging EMEA/APAC and Consumer Packaging Americas. The change, effective from the first quarter of 2026, will create a single “one‑can” business that offers steel, aluminum, and paper cans, closures, and components under one umbrella.
Seán Cairns will lead the EMEA/APAC segment, while Ernest Haynes will head the Americas. Both presidents report directly to CEO Howard Coker and will oversee all operations in their regions. The appointment of experienced leaders signals Sonoco’s intent to accelerate decision‑making and reduce duplication across the two markets.
The restructuring is part of a broader portfolio transformation that began with the sale of ThermoSafe to Arsenal Capital Partners for up to $725 million and the divestiture of the Thermo‑Formed and Flexibles Packaging business to TOPPAN Holdings for roughly $1.8 billion. These moves have lowered the company’s net leverage ratio to about 3.4× and freed capital for core growth.
Sonoco’s Q3 2025 results provide context for the shift. Net sales rose 57.3% to $2.1 billion, driven largely by the acquisition of Eviosys and strong demand in the metal packaging segment. GAAP net income climbed to $122.9 million, while diluted EPS of $1.23 fell short of the $1.58 consensus, a miss of $0.35 or 22%. Management attributed the miss to moderate demand in the paper‑container market and higher raw‑material costs, while adjusted EPS of $1.92 beat expectations by $0.34, reflecting disciplined cost management and a favorable mix shift toward higher‑margin steel cans.
CEO Howard Coker emphasized that the new structure will “enable a substrate‑agnostic customer offering and streamline operations.” He noted that the ThermoSafe sale “substantially concludes Sonoco’s portfolio transformation,” positioning the company to focus on sustainable metal and fiber packaging solutions amid industry pressures such as inflation and shifting consumer preferences.
Analysts have generally maintained a positive outlook, citing the company’s strong cash flow generation and the potential for cost savings from the consolidation. While the restructuring does not immediately alter financial statements, management expects the streamlined organization to deliver incremental operating margin improvement and accelerate growth in high‑margin segments.
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