Sonoco Products Company

Thank you. I'd now like to turn the call over to Roger Schrum, Interim Head of Investor Relations and Communications. You may begin.

Thank you, Rob, and good morning, everyone. Yesterday evening, we issued a news release and posted an investor presentation that reviews Sunoco's fourth quarter and full year results, along with our 2025 guidance. Both are posted on the investor relations sections of our website at sunoco.com. A replay of today's conference call will be available on our website, and we'll post a transcript later this week. If you would turn to slide two, I would remind you that during today's call, we will discuss a number of forward-looking statements based on current expectations, estimates, and projections. These statements are not guarantees of future performance and are subject to certain risks and uncertainties. Therefore, actual results may differ materially. Additionally, today's presentation includes the use of non-GAAP financial measures, which management believes provides useful information to investors about the company's financial condition and results of operation. Further information about the company's use of non-GAAP financial measures, including definitions as well as reconciliation to GAAP measures, is available under the investor relations section of our website. Finally, references to certain financial metrics along with corresponding year-over-year comparable results made on this call, are on a full company basis, except when specifically referred to for continuing operations or for discontinued operations. Joining me this morning are Howard Coker, President and CEO, Roger Fuller, Chief Operating Officer, and Jerry Cheatham, Interim Chief Financial Officer. For today's call, we will have prepared remarks followed by Q&A. If you will turn to slide four in our presentation, I will now turn the call over to Howard.

Thank you, Roger, and welcome back. 2024 was a milestone year for Sunoco as we created global leadership in sustainable metal packaging following the December 4th acquisition of Eviosis, Europe's leading food, cans, inns, and closure manufacturer. As slide five shows, we jump started the integration process with day one celebrations with large groups of employees at several EVOSIS facilities. Our teams are now deep in the process of integrating into Sunoco Metal Packaging, EMEA, and achieving our two-year $100 million synergy target. Also on December 18th, we further transformed our portfolio through the announced investiture of our Thermoform and Flexible Packaging business to Topan Holdings for approximately $1.8 billion. We're on track to complete the sale during the second quarter, having now received approval from regulators in the U.S., Brazil, and the U.K. We're continuing a strategic review of our remaining cold chain temperature-assured packaging business to further focus on our metal and paper packaging consumer and industrial businesses. Moving to slide six, you see the key results for the fourth quarter. Despite persistent price-cost headwinds and the impact of two hurricanes earlier in the quarter, our team stayed focused on driving solid operating results. Share will provide the details and drivers for the quarter, but adjusted earnings per share, excluding ediosis, which we did not project in our guidance, are within our expectations. While ebiosis reported a loss in December, it was primarily due to interest expense that was incurred when operations were experiencing the normal year-end holiday season slowdown. Rest assured, ebiosis is a highly profitable, top-quality asset, and results so far in 2025 are certainly meeting our expectations. Overall, in the fourth quarter, Sunoco produced 5% improvement in adjusted EBITDA and adjusted EBITDA margin expanded to nearly 15%, driven primarily by strong productivity. For all of 2024, we achieved approximately $183 million in productivity savings, equally split between our consumer and industrial segments. As mentioned earlier, some of our operations were impacted by two hurricanes, which hit the southeast United States in the early fourth quarter including our largest summer planning facility in Florida, which had the roof destroyed by Hurricane Milton. Our employees went above and beyond to minimize downtime caused by the storms, while at the same time taking time to volunteer in their communities to help with cleanup and recovery efforts. Finally, Sunoco generated a better than expected $834 million in operating cash flow, and $456 million in free cash flow. This was the second largest operating cash flow year by Sunoco, and we invested a record $378 million on capital projects focused on growth and productivity. The results of our multi-year invest-in-ourself strategy are demonstrated through our improved productivity. Today's investments are more weighted towards growth. If you look at slide 7, you'll see where we're continuing to invest across our businesses, including expanding greenfield paper can production in Thailand, in Mexico, and in the U.S. All of these projects are sponsored by customers and will increase organic sales over the next several years. And I should add, the Thailand facility is expected to become one of the world's largest paper can production sites when fully completed over the next Also, we're recapitalizing cult tube production for adhesives and sealants for our customers who experience strong demand as contractors and homeowners repair their homes and businesses from unprecedented storms and fire-related damages. In metal packaging, we're adding capabilities to meeting rising demand for aerosol cans in the U.S. and wet pet food cans in both U.S. and Europe. along with customer-specific caps and closures projects. And finally, our industrial paper products businesses are continuing to capture targeted growth opportunities and productivity projects in the U.S. and Europe, but we continue to focus on right-sizing select markets. Now, with that brief introduction, let me turn the call over to Jerry Cheatham, who took over the interim CFO role in January and, frankly, is doing a great job. I won't go over Jerry's impressive resume, but I've worked with Jerry for most of my career, including when I headed Sunoco's industrial segment and Jerry served as the group's financial leader. Jerry knows our operations extremely well, and he has a trust and respect of our global finance organization. Jerry, welcome, and please take us through the numbers.