Sonoco Products Aims for $1.5B EBITDA by 2028

By Chris Stiles • Tuesday, February 17 13:36 • Permanent Link

Sonoco Products Company (NYSE: SON), a global leader in sustainable metal and paper packaging, has outlined its financial targets and capital allocation priorities during its recent investor day. The company aims to achieve adjusted EBITDA of approximately $1.5 billion by the end of 2028, with a goal of expanding adjusted EBITDA margins by around 200 basis points over the same period.

Furthermore, Sonoco is targeting cumulative cash flow from operations of about $2.5 billion from 2026 to 2028, while maintaining capital expenditures at approximately 4% of sales during the same period. The company also aims to reduce its long-term net leverage to below 2.5x by the end of 2028.

Additionally, Sonoco plans to continue its over 100 years of consecutive dividend payments and undertake future share repurchases as part of its capital return to shareholders.

In terms of leadership perspectives, Howard Coker, President and CEO of Sonoco, expressed confidence in the company's position for consistent earnings growth, strong cash flow generation, and a management team focused on executing its strategic priorities. Paul Joachimczyk, Chief Financial Officer, emphasized the importance of margin expansion as a key value driver in the company's financial outlook, targeting approximately 200 basis points of margin expansion by 2028, equivalent to $150 million to $200 million of incremental value.

Founded in 1899, Sonoco reported net sales of $7.5 billion in 2025 and operates in 37 countries with approximately 22,000 employees. The company aims to foster a culture of innovation, collaboration, and excellence to provide sustainable packaging solutions.

For those interested in accessing the full details of Sonoco's 2026 investor day webcast and presentation, a replay will be available on the company's website.

Sonoco was recognized as one of the world’s most admired companies by Fortune in 2026 and as one of America’s most admired and responsible companies by Fortune and Newsweek. Additionally, it was listed by USA Today as one of America’s climate leaders. As a result of these announcements, the company's shares have moved -0.81% on the market, and are now trading at a price of $48.71. For the full picture, make sure to review SONOCO PRODUCTS CO's 8-K report.

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