The folding machine comprises a first stage folding section, a gluing section, a second stage pocket forming section, and a delivery section. the first stage folding section includes an endless belt to receive and transport blanks to be folded. It also has at least one guide plate and bar to contact the side panels and the glue tabs to cause the side panels and the glue tabs to be folded along the score lines. The gluing section have glue dispensing device to dispense measured amounts of glue onto the glue tabs. The second stage pocket forming section includes pusher plate. There is a fold plate device to cooperate with the pusher plate device to form pockets on the blanks and a tipper plate device to cause the end flaps to contact the fold plate for folding. The delivery section has conveyor belt device to receive finished folders and transport them for packaging and shipping.