This report does not constitute a rating action. In 2026, we expect Sonoco to achieve modest deleveraging, with debt leverage declining to approximately 4x by the end of 2026. We expect the company to maintain revenue and EBITDA at levels consistent with 2025 as it offsets macroeconomic headwinds. We forecast S&P Global Ratings-adjusted EBITDA of roughly $1.23 billion, comparable to 2025, and anticipate a slight revenue decline of 1%-2%. This reflects challenges stemming from first-quarter winter weather disruptions, a fire at its South Carolina recycling plant, and elevated input cost inflation exacerbated by geopolitical instability in the Middle East that leads to temporary price/cost dislocations and muted consumer demand. We believe Sonoco will mitigate these headwinds through continued execution of
