Sonoco Products (SON) risk factors, FY2025 10-K

Risks Related to the Domestic and Global Economies and to Doing Business Globally

1. 01Our international operations subject us to various risks that could adversely affect our business operations and financial results26% rewritten
2. 02Global economic conditions and disruptions in the credit markets could adversely affect our business, financial condition, and results of operations
3. 03We 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 markets20% rewritten
4. 04Changes in United States trade policies and global regulations, as well as the overall uncertainty surrounding international trade relations, could materially and adversely affect our consolidated financial condition and results of operations96% rewritten
5. 0510 FORM 10-K SONOCO 2025 ANNUAL REPORT condition and results of operations. The Company is continuing to monitor and evaluate the full impact of the U.S. Supreme Court ruling and changing trade policies and regulationsNew
6. 06Currency exchange rate fluctuations may adversely affect our results of operations and shareholders’ equity
7. 07Changes in domestic and global economic conditions may have an adverse impact on our business operations and financial results29% rewritten

Risks Related to Manufacturing Operations

1. 08Raw materials, energy and other price increases or shortages may impact our results of operations
2. 09We depend on third parties for transportation services
3. 10We may be unable to achieve, or may be delayed in achieving, adequate returns from our efforts to optimize our operations, which could have an adverse effect on our financial condition and results of operations28% rewritten
4. 1112 FORM 10-K SONOCO 2025 ANNUAL REPORT business100% rewritten
5. 12Material disruptions in our business operations could adversely affect our financial results23% rewritten

Risks Related to Acquisitions, Divestitures and Joint Ventures

1. 13We may fail to realize expected benefits from our acquisitions, which could have an adverse effect on our financial condition and results of operations31% rewritten
2. 14We may not be able to identify suitable acquisition candidates, or complete acquisitions on our desired timing or terms, which could limit our potential for growth
3. 15In connection with acquisitions, joint ventures, divestitures, or other strategic transactions, we may become subject to liabilities and legal claims
4. 16We may encounter difficulties restructuring operations or closing or disposing of facilities, assets or businesses29% rewritten
5. 17We have investments in joint ventures that are not operated solely for our benefit

Risks Related to Competition, Customers and Suppliers

1. 18We face intense competition, and failure to compete effectively may have an adverse effect on our results of operations
2. 19Continuing consolidation of our customer base and suppliers may intensify pricing pressure
3. 20The loss of a key customer, or a reduction in its production requirements, could have a significant and adverse effect on our sales and profitability
4. 21Challenges to, or the loss of, our intellectual property rights could have an adverse effect on our ability to compete effectively
5. 22In addition, we are from time to time subject to claims from third parties suggesting that we may be infringing on their intellectual property rights. If we were held liable for infringement, we could be required to pay damages, obtain licenses, or cease making or selling certain products

Risks Related to Our Products

1. 23We may not be able to develop new products acceptable to the market
2. 24Product liability claims and other legal proceedings could adversely affect our operations and financial performance
3. 25Adverse weather and other effects of climate change may result in lower sales and higher costs. In addition, climate-related regulations may add cost and complexity to our operations
4. 26Expectations relating to ESG issues, including related reporting obligations, could expose us to potential liabilities, increased costs, reputational harm, and other adverse effects on our business
5. 27We are subject to costs and potential liabilities related to environmental, health and safety, and corporate social responsibility laws and regulations that could adversely affect our results of operations

Risks Related to Financing Activities

1. 28We, or our customers, may not be able to obtain necessary credit or, if so, on reasonable terms
2. 29Our significant indebtedness could adversely affect our cash flow, increase our vulnerability to economic conditions, and limit or restrict our business activities27% rewritten
3. 30Some of our indebtedness is subject to floating interest rates, which would result in our interest expense increasing if interest rates rise49% rewritten
4. 31We may incur additional debt in the future, which could increase the risks associated with our leverage

Risks Related to Information Technology and Cybersecurity

1. 32We rely on our information technology, and its failure or disruption could disrupt our operations and adversely affect our business, financial condition and results of operations
2. 33From time to time, we have been, and we will likely continue to be, subject to cybersecurity-related incidents35% rewritten
3. 34A security breach of customer, employee, supplier or company information may have a material and adverse effect on our business, financial condition and results of operations

Risks Related to Accounting, Human Resources, Financial, and Business Matters and Taxation

1. 35Changes in pension plan assets or liabilities may reduce our results of operations and shareholders’ equity29% rewritten
2. 36Our ability to attract, develop and retain talented executives, managers and employees is critical to our success
3. 37Labor disruptions and a rise in labor costs could impact our business, financial condition and results of operations
4. 38Changes in U.S. generally accepted accounting principles (“GAAP”) and SEC rules and regulations could materially impact our reported results
5. 39Our financial results are based upon estimates and assumptions that may differ from actual results
6. 40We have a significant amount of goodwill and other intangible assets, and a write down would adversely impact our results of operations and shareholders’ equity47% rewritten
7. 41Full realization of our deferred tax assets may be affected by a number of factors92% rewritten
8. 42Due to widely varying tax rates in the taxing jurisdictions applicable to our business, a change in income generation to higher taxing jurisdictions or away from lower taxing jurisdictions may also have an adverse effect on our financial condition and results of operations62% rewritten
9. 4321 FORM 10-K SONOCO 2025 ANNUAL REPORT99% rewritten
10. 44Our disclosure controls and procedures and internal controls may not prevent or detect all errors or acts of fraud