Revenue recognition

The following tables set forth information about revenue disaggregated by primary geographic regions for the years ended December 31, 2025, 2024 and 2023. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Company’s reportable segments are aligned by product nature as disclosed in Note 20.


Year Ended December 31, 2025	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary geographical markets:
United States	$	1,864,861	$	1,464,574	$	285,486	$	3,614,921
EMEA	2,789,400		361,878		56,160		3,207,438
Canada	18,539		85,875		—		104,414
APAC	100,482		148,012		1,065		249,559
Other	101,009		238,894		2,518		342,421
Total	$	4,874,291	$	2,299,233	$	345,229	$	7,518,753


Year Ended December 31, 2024	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary geographical markets:
United States	$	1,785,857	$	1,431,232	$	352,717	$	3,569,806
EMEA	524,699		371,896		58,925		955,520
Canada	17,486		95,863		—		113,349
APAC	96,154		213,127		1,771		311,052
Other	107,656		237,370		10,612		355,638
Total	$	2,531,852	$	2,349,488	$	424,025	$	5,305,365


Year Ended December 31, 2023	Consumer Packaging		Industrial Paper Packaging		All Other		Total
Primary geographical markets:
United States	$	1,817,268	$	1,389,492	$	494,112	$	3,700,872
EMEA	431,189		389,261		64,936		885,386
Canada	16,076		100,095		—		116,171
APAC	94,136		233,446		1,812		329,394
Other	112,379		261,819		35,405		409,603
Total	$	2,471,048	$	2,374,113	$	596,265	$	5,441,426

Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer, and therefore amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and receipts of advanced payments. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the initial term of the arrangement, and will release the deferral over the back half of the contract term. Contract assets and liabilities are generally short in duration given the nature of products produced by the Company.

The following table sets forth information about contract assets and liabilities from contracts with customers. The balances of the contract assets and liabilities are located in “Other receivables” and “Accrued expenses and other payables”, respectively, in the Consolidated Balance Sheets.


	December 31, 2025		December 31, 2024
Contract Assets	$	77,978	$	67,062
Contract Liabilities	$	(58,784)	$	(60,024)

Significant changes in the contract assets and liabilities balances during the twelve months ended December 31, 2025 and 2024 were as follows:


	December 31, 2025				December 31, 2024
	Contract Assets		Contract Liabilities		Contract Assets		Contract Liabilities
Beginning balance	$	67,062	$	(60,024)	$	14,754	$	(15,252)
Acquired/ sold as part of a business combination/ divestiture	(53)		(324)		62,439		(47,478)
Revenue deferred or rebates accrued	—		(94,947)		—		(25,736)
Recognized as revenue	—		1,183		—		2,341
Rebates paid to customers	—		95,328		—		26,101
Increases due to rights to consideration for customer specific goods produced, but not billed during the period	77,978		—		67,062		—
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combination	(67,009)		—		(77,193)		—

Ending balance	$	77,978	$	(58,784)	$	67,062	$	(60,024)

Historical Timeline

Fiscal Year	Filed
2025	Feb 26, 2026	Showing above
2024	Feb 28, 2025

2023	Feb 28, 2024

2022	Feb 28, 2023

2021	Feb 28, 2022

2020	Feb 26, 2021

2019	Feb 28, 2020

2018	Feb 28, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

SONOCO PRODUCTS CO Revenue Disclosure

Historical Timeline

About Revenue Disclosures

Other Available Disclosures