Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), a Mid-cap Value global packaging company, today reported financial results for the third quarter ended September 27, 2026.
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Company → report → quarter
Excluding divestitures, net sales were essentially flat
- Reported GAAP net loss of $(732) million, or $(7.36) diluted earnings per share, reflecting a non-cash goodwill impairment charge of $(829) million attributable to the Consumer EMEA/APAC and Industrial APAC businesses, compared to GAAP net income of $123 million, or $1.23 diluted earnings per share, in the same period in 2025
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sales → exclude → 2025
Third quarter adjusted net income was $167 million or $1.67 per adjusted diluted share, compared to $191 million or $1.92 per adjusted diluted share in the same period in 2025
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income → compare → 2025
Generated operating cash flow of $285 million in the third quarter, and provided $218 million of operating cash flow year-to-date, which was net of approximately $103 million in one-time taxes paid in 2026 on gains from the sales of the divested TFP and ThermoSafe businesses in 2025
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which → generate → 2025
Third quarter 2026 net sales of $2.0 billion were down (4.2)% compared to the corresponding prior-year quarter, driven primarily by the November 3, 2025 divestiture of the ThermoSafe business.
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sales → compare → business
Net sales benefited from higher selling prices implemented to offset the effects of inflation and tariffs, which was partially offset by lower volume/mix.
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which → benefit → mix
- GAAP operating loss for the third quarter was $(638) million, which includes non-cash goodwill impairment charges of $(802) million and $(27) million, attributable to the Consumer Packaging segment’s EMEA/APAC businesses and the Industrial Paper Packaging segment’s APAC business, respectively, for a total non-cash goodwill impairment charge of $(829) million.
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which → include → million
In addition to this charge, solid productivity savings stemming from fixed cost reduction initiatives and procurement savings were more than offset by significant price/cost headwinds and lower volume/mix.
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savings → stem → headwinds
- Effective tax rates on GAAP income from continuing operations before income taxes and adjusted income from continuing operations before income taxes, were (6.4)% and 24.6%, respectively, in the third quarter, compared to 6.0% and 22.9%, respectively, in the same period in 2025.
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rates → continue → 2025
During the third quarter, our businesses faced a combination of external challenges.
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businesses → face → challenges
Drought conditions across parts of Europe and the U.S. impacted crop yields and pressured food can demand, while the impact of inflation on raw materials, freight, energy, and other operating costs exceeded our expectations.
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impact → impact → expectations
Through strong productivity initiatives and rigorous cost control, our teams were able to mitigate a significant portion of this impact and deliver resilient operating results,” said Howard Coker, President and Chief Executive Officer.
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Coker → mitigate → results
“Our Industrial Paper Packaging segment delivered another strong quarter, with results essentially in line with the second quarter despite a challenging operating environment.
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segment → deliver → environment
Productivity improvements remained a key driver of performance, while North America URB trade ton sales increased 10% year over year and mill utilization remained strong at 94%.
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utilization → remain → %
Segment volume/mix was modestly positive, and additional URB pricing realized in September positions us to further offset inflationary pressures.
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pricing → realize → pressures
“Results in Consumer Packaging fell short of expectations, as volume/mix declined 3% year over year due primarily to adverse weather conditions and unfavorable price/cost dynamics.
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mix → fall → conditions
Encouragingly, international paper can operations performed well, with double-digit volume growth year over year driven by sustained demand for snack products across emerging markets.”
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operations → perform → markets
Paul Joachimczyk, Sonoco’s Chief Financial Officer, added, “Our businesses once again generated strong operating cash flow in the third quarter, delivering $285 million despite seasonal working capital headwinds.
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businesses → add → headwinds
Year-to-date operating cash flow includes $103 million of one-time tax payments related to gains on our 2025 divestitures.
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flow → include → divestitures
We continued to strengthen our balance sheet during the quarter, reducing total debt and net debt by $162 million and $176 million, respectively, while successfully refinancing an $800 million term loan.
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We → continue → loan
The refinancing extends our maturity profile and enhances our financial flexibility, positioning us well to continue executing our capital allocation priorities while maintaining our investment grade credit ratings.”
Third Quarter 2026 Segment Results
(Dollars in millions except per share data)
Sonoco reports its financial results in two reportable segments: Consumer Packaging (“Consumer”) and Industrial Paper Packaging (“Industrial”).
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Sonoco → refinance → segments
As previously announced, effective January 1, 2026, results of the Company’s industrial and specialty plastics business (“Industrial Plastics”), the only business remaining in the All Other group of businesses following the November 2025 divestiture of ThermoSafe, are now included in the Industrial segment.
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results → announce → segment
Therefore, the Company no longer provides results of the All Other group of businesses.
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Company → provide → businesses
- Consumer segment net sales were down (2.9)%, as adverse weather conditions impacted seasonal vegetable harvests in EMEA and Americas reducing metal cans volumes.
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conditions → impact → volumes
This headwind more than offset pricing actions implemented to recover inflation and tariff-related costs, along with the negative impact of foreign exchange.
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headwind → offset → exchange
- Segment operating profit and adjusted EBITDA declined as strong productivity savings and cost containment actions were more than offset by inflation-driven price/cost headwinds and the previously described negative volume/mix.
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savings → adjust → headwinds
- Consumer segment net sales were down (2.9)%, as adverse weather conditions impacted seasonal vegetable harvests in EMEA and Americas reducing metal cans volumes.
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conditions → impact → volumes
This headwind more than offset pricing actions implemented to recover inflation and tariff-related costs, along with the negative impact of foreign exchange.
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headwind → offset → exchange
- Segment operating profit and adjusted EBITDA declined as strong productivity savings and cost containment actions were more than offset by inflation-driven price/cost headwinds and the previously described negative volume/mix.
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savings → adjust → headwinds
- Industrial segment net sales increased 5.2% to $646 million, primarily due to successful pricing actions implemented to help offset rising costs.
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sales → increase → costs
- Segment operating profit and adjusted EBITDA declined as pricing actions and productivity initiatives were more than offset by rising raw material, freight and energy costs.
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actions → decline → costs
Operating margin remained resilient at 13.6%, compared with the second quarter but down from a record 2025 third quarter, while adjusted EBITDA margin was 18.8%.
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margin → operate → quarter
Net sales, segment operating profit, and segment adjusted EBITDA for the three months ended September 28, 2025 include results from Industrial Plastics of $29 million, $4 million, and $5 million, respectively, previously included in All Other, to provide clearer year-over-year comparisons.
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sales → end → comparisons
Balance Sheet and Cash Flow Highlights
- The Company maintained strong liquidity of $1.3 billion at September 27, 2026, consisting of $1.1 billion of available borrowing capacity under its revolving credit facility and cash on hand.
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Company → maintain → hand
- Cash and cash equivalents were $183 million as of September 27, 2026, compared to $378 million, as of December 31, 2025.
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Cash → compare → December
- Total debt and net debt were $4.3 billion and $4.1 billion, respectively, as of September 27, 2026, primarily reflecting seasonal working capital requirements within the Company’s metal packaging business.
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debt → reflect → business
- Year-to-date cash flow from operating activities for the period ended September 27, 2026 provided $218 million, compared to $277 million in the same period of 2025.
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flow → operate → 2025
The main drivers of the year-over-year change in operating cash flow were a one-time payment of taxes in 2026 on the gains from the 2025 divestitures of the TFP and ThermoSafe businesses and the seasonal need for working capital for the Company’s metal packaging business.
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drivers → operate → business
- Capital expenditures, net of proceeds from sales of fixed assets, for 2026 were $175 million, compared to $248 million last year.
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expenditures → compare → million
- Free Cash Flow for the period ended September 27, 2026 improved to $43 million compared to $29 million in the same period in 2025, reflecting the factors impacting operating cash flow discussed above.
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Flow → end → flow
…and 106 more, not listed.
The Aporia
