Sonoco sets financial targets through 2028 at investor day

Sonoco Products Company (NYSE: SON) outlined financial targets for 2026-2028 during an investor day presentation. The packaging company aims to achieve adjusted EBITDA of approximately $1.5 billion by the end of 2028 and expand adjusted EBITDA margins by roughly 200 basis points during the same period.

The company targets cumulative cash flow from operations of about $2.5 billion from 2026-2028 while maintaining capital expenditures at approximately 4% of sales. Sonoco also plans to reduce long-term net leverage to below 2.5x by the end of 2028.

President and CEO Howard Coker stated that Sonoco operates two market-leading businesses with clearer priorities. "We believe we are positioned for consistent earnings growth, strong cash flow generation, and a management team focused on executing our strategic priorities – sustainable growth, margin improvement and efficient capital allocation," Coker said.

Chief Financial Officer Paul Joachimczyk noted that margin expansion represents a key value driver. "We are targeting approximately 200 basis points of margin expansion by 2028, which equates to $150 million to $200 million of incremental value," Joachimczyk said. He described this target as the result of an enterprise-wide productivity system already embedded in company operations.

The company plans to continue dividend payments, which have been made consecutively for over 100 years, and expects to conduct future share repurchases as part of its capital return strategy.

Sonoco reported net sales of $7.5 billion in 2025 and employs approximately 22,000 people across 265 operations in 37 countries. The company produces metal and paper packaging for consumer and industrial applications.

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