54 added · 60 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
For example, during 2025, the U.S. government announced, delayed, re-imposed and revised a series of broad-based, as well as country-, bloc- and sector-specific, tariffs on imports, as well as other trade policy changes.
Protecting the health and safety of our employees is a priority, and we are committed to providing a safe and healthy working environment for all our employees. 6 FORM 10-K SONOCO 2025 ANNUAL REPORT We use global and local incident data, along with a strong set of leading indicators, to create program and safety improvement action plans to reduce exposures that lead to at-risk situations.
As discussed further elsewhere in this Annual Report on Form 10-K and in our other filings with the SEC, some of these risks have already affected us. 9 FORM 10-K SONOCO 2025 ANNUAL REPORT Global economic conditions and disruptions in the credit markets could adversely affect our business, financial condition, and results of operations.
This ruling and any future changes in tariffs or other trade policies may result in additional changes and have further direct and indirect adverse effects on our consolidated financial 10 FORM 10-K SONOCO 2025 ANNUAL REPORT condition and results of operations.
Furthermore, the duty preferential treatment for goods that qualify for the USMCA was temporarily exempted from the United States 25% tariff on Mexican and Canadian goods, and although Canada imposed retaliatory tariffs on goods coming from the United States that did not originally exempt USMCA-qualified goods, Canada lifted many of its retaliatory tariffs in September 2025, apart from those on steel, aluminum, and autos.
In August 2025, the U.S. government set firmly established reciprocal tariff rates for various countries that were, for the most part, incremental increases over the previously established baseline rate of 10%.
For example, in 2025, the U.S. government announced the expansion of Section 232 tariffs on steel and aluminum imported into the United States (“Section 232 Tariffs”).
For example, in 2025 we completed the divestitures of TFP and ThermoSafe, and in 2024, we completed the divestiture of Protexic.
We believe talent acquisition remained a strength for the organization in 2025 despite challenging labor market conditions globally.
Tariff increases have in the past had, and we expect that such measures and any additional measures will in the future have, an adverse effect on our costs of products sold and margins, including by increasing the cost of imported raw materials, which costs we may be unable to pass on to our customers without affecting demand, and potentially disrupting supply chains, causing delays and logistical challenges.
A portion of the steel and aluminum we purchase for our metal packaging and industrial paper packaging businesses is sourced from outside the United States, and although we generally negotiate agreements to share tariff costs with brokers from which we purchase certain raw materials and have the contractual ability to pass on cost increases due to tariffs to our customers, we may be unable to maintain such cost sharing and cost pass-on practices, and any price increases may cause our customers to find alternative suppliers and result in reduced demand for our products.
Since 2024, our VP-led Global Sustainability team, which leads the Company’s global sustainability programs, has been part of our Legal & Compliance department, allowing us to continue our focus on global sustainability efforts to provide our customers with a wide selection of sustainable products and support related disclosure requirements.
No longer disclosed
For example, in connection with our December 2024 acquisition of Eviosys, we issued $1.8 billion aggregate principal amount of senior unsecured notes and borrowed a total of $2.2 billion through two unsecured term loan facilities.
For example, in 2024 we completed the divestiture of Protexic, which manufactured molded expanded polypropylene and expanded polystyrene foam components serving the automotive, electronics, appliances, and other markets, reached an agreement to sell TFP, and we have initiated a review of strategic alternatives for our ThermoSafe business.
We expect this initiative to positively impact our safety, quality and productivity by increasing engagement using improved decision making techniques. 6 FORM 10-K SONOCO 2024 ANNUAL REPORT Other employee well-being resources include wellness courses and a variety of online training classes, as well as other programs to promote mental and physical health.
Potential effects on us include financial instability, inability to obtain credit to finance operations, and insolvency. 9 FORM 10-K SONOCO 2024 ANNUAL REPORT We are subject to governmental export and import control laws, economic sanctions, anti-corruption laws and other regulations in certain jurisdictions where we do business that could subject us to liability or impair our ability to compete in these markets.
Our inability to effectively manage the adverse impacts of changing U.S. and foreign trade policies could materially and adversely impact our consolidated financial condition and results of operations. 10 FORM 10-K SONOCO 2024 ANNUAL REPORT Currency exchange rate fluctuations may adversely affect our results of operations and shareholders’ equity.
Other variable-rate borrowings at December 31, 2024 were approximately $0.2 billion. 17 FORM 10-K SONOCO 2024 ANNUAL REPORT We may incur additional debt in the future, which could increase the risks associated with our leverage.
As of December 31, 2024, Sonoco had approximately 28,000 full-t ime equivalent employees, including approximately 6,500 who joined the Company effective December 4, 2024 in connection with the Eviosys acquisition.
For example, the United States and China have imposed significant tariffs on certain products in recent years, and the current administration has proposed and in some cases implemented further increase of tariffs on Chinese and other foreign imports into the United States.
We are continually evaluating and pursuing acquisition opportunities and, as we have in the past, we may from time to time incur additional indebtedness to finance any such acquisitions and to fund any resulting increased operating needs.
We made significant progress in talent acquisition during 2024 despite a challenging labor market.
We on occasion utilize debt instruments with a variable rate of interest, including term loan facilities, under which we had outstanding indebtedness tot aling $2.7 billion as of December 31, 2024.
In addition, in 2024, we permanently closed our uncoated paperboard mill operations in Sumner, Washington as part of our strategy to rationalize our mill network and lower operating costs.