Electromechanic 3

Sonoco Products Q3 earnings call highlights. October 22, 2026 Key points. * Q3 performance weakened: Sonoco reported $2 billion in sales, down 4% year over year, while adjusted EBITDA fell 9% to $352 million and adjusted EPS declined 13% to $1.67. Results were pressured by higher input and freight costs, weather-related food-can demand weakness and an $829 million non-cash goodwill impairment. * Industrial demand remained resilient, with sales up 5% to $646 million and URB volumes increasing, while the Consumer segment declined 3% as drought and heat reduced crop yields and food-can volumes. Productivity initiatives generated $16 million in quarterly savings, and European site closures are expected to deliver $15 million-$20 million of annual savings in 2027. * Sonoco reduced debt and maintained its 2026 outlook, cutting total debt by $162 million and refinancing an $800 million term loan. The company expects full-year sales of $7.2 billion-$7.4 billion, adjusted EBITDA of $1.2 billion-$1.25 billion, adjusted EPS of $5.30-$5.50 and operating cash flow of $600 million-$650 million. * Tracking Sonoco Products through earnings season? MarketBeat All Access sends real-time alerts on ratings, earnings, and news - $149 a year, locked in for as long as you stay. Sonoco Products NYSE: SON reported third-quarter 2026 results that reflected higher input and freight costs, weather-related weakness in food-can demand and continued productivity gains. The company also reduced debt, refinanced an $800 million term loan and updated its full-year outlook. Net sales totaled $2 billion, down 4% from a year earlier. Excluding the 2025 divestiture of ThermoSafe, sales were essentially flat, Chief Financial Officer Paul Joachimczyk said. Adjusted EBITDA was $352 million, down 9% year over year, or down 4% excluding ThermoSafe, while adjusted earnings per share fell 13% to $1.67, or 7% excluding the divested business. The company recorded an $829 million non-cash goodwill impairment during the quarter, primarily related to its consumer EMEA business. Joachimczyk said the impairment resulted from the company's annual goodwill-testing process and reflected current market conditions and business performance. He said it did not affect adjusted results or alter Sonoco's long-term strategy for the business. Industrial demand remained resilient. Sonoco's Industrial segment posted a 5% sales increase to $646 million, supported by pricing and demand for uncoated recycled paperboard, or URB. North American URB trade-ton sales rose 10% year over year, while global trade-ton sales increased 6%. Mill utilization remained strong, with U.S. operating rates in the mid-90% range entering the fourth quarter. Chief Executive Officer Howard Coker said wire and cable reel sales recorded double-digit growth, aided by capacity investments, wood demand and broader infrastructure activity. He said the company expects similar growth rates in the reels business during 2027, though data-center construction has not yet been a major contributor to demand. Industrial adjusted EBITDA declined 5% year over year as higher costs for old corrugated containers, freight and diesel outpaced price recovery during the quarter. OCC, Sonoco's largest industrial raw-material input, increased another $25 per ton during the quarter and was 90% higher than a year earlier. Total URB production costs rose more than $60 per ton year over year. Discover more Order Custom Boxes Source Suppliers Source Polymers Sonoco implemented two Industrial price increases during 2026 totaling $110 per ton. Coker said the second increase was implemented late in the third quarter, meaning some benefits should be realized in the fourth quarter, with the full impact expected to be reflected in 2027. Management said it currently expects OCC costs to remain flat in the fourth quarter. Consumer results pressured by weather and costs. Consumer segment sales declined 3% year over year, including a 1% foreign-exchange impact tied largely to euro movements. Volume mix declined 3%, primarily because drought, high temperatures and other weather events affected crop yields and reduced food-can demand in North America and Europe. Consumer EBITDA declined 9% in the quarter. The company cited softer global metal food-can volumes and unfavorable price-cost relationships, although certain parts of the portfolio showed growth. International paper-can operations generated double-digit volume growth, U.S. aerosol-can demand increased 7%, and canned seafood volumes improved. Canned seafood now represents about 10% of Sonoco's consumer portfolio, according to management. Joachimczyk said the company views the food-can weakness as largely seasonal and related to the harvest rather than a structural demand shift. Management expects consumer volumes to be roughly flat year over year in the fourth quarter, while Industrial volumes are expected to rise slightly. In August, Sonoco combined its can businesses into one global consumer packaging segment with operations in the Americas, EMEA and Asia-Pacific. Ernest Haynes was named president of the approximately $5 billion segment. Coker said the change is intended to improve coordination across operations, technology, procurement, supply chain and commercial execution. The company is also closing two European sites as part of a footprint optimization effort. Sonoco expects those actions to generate $15 million to $20 million of savings in 2027. Productivity program and cash flow. Sonoco's Profitability Performance Plan, or PPP, generated $16 million of savings in the third quarter, up from $10 million in the second quarter and $8 million in the first quarter. Year-to-date savings reached $34 million, with annualized savings at $51 million. The three-year program targets $150 million to $200 million in savings through structural margin improvements, organizational simplification and commercial initiatives. Joachimczyk said Sonoco is targeting approximately $50 million of savings in 2026, followed by a higher contribution in 2027 and another increase in 2028. The company is targeting savings in the range of $180 million over the program's duration. Management said productivity and cost actions offset roughly $24 million of an estimated $40 million to $50 million combined impact from inflation and lower volumes during the third quarter. Freight expense alone rose $17 million from the prior-year period, while U.S. diesel prices climbed above $6.50 per gallon, according to Coker. Operating cash flow was $285 million in the quarter despite seasonal working-capital headwinds. Sonoco reduced total debt by $162 million and net debt by $176 million, while refinancing an $800 million term loan. Joachimczyk said the refinancing is expected to have an immaterial $2 million to $3 million effect on interest expense next year while extending maturities beyond 2027. Updated 2026 outlook. For full-year 2026, Sonoco now expects: * Net sales of $7.2 billion to $7.4 billion; * Adjusted EBITDA of $1.2 billion to $1.25 billion; * Adjusted EPS of $5.30 to $5.50; and * Operating cash flow of $600 million to $650 million. Coker said the fourth-quarter outlook remains subject to uncertainty surrounding inflation, the holiday period and broader macroeconomic conditions. Still, he said the company remains confident in its Industrial demand trends, consumer innovation pipeline, pricing actions and long-term strategy. About Sonoco Products (NYSE:SON). Sonoco Products Company is a global packaging company headquartered in Hartsville, South Carolina. Founded in 1899 as the Southern Novelty Company, it has developed from a producer of paper cones for the textile industry into a diversified provider of packaging solutions serving consumer, industrial and commercial customers. The company manufactures a broad range of products, including composite cans and tubes, paperboard packaging, flexible packaging, thermoformed packaging, rigid plastic containers, protective packaging and packaging components. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. 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Metal packaging excellence honoured at UK Packaging Awards 2026. 12 October 2026 14:35 Sonoco Consumer Packaging, Kusmi Tea Extraordinary Voyages tin. L-R: Jason Galley (MPMA); Aurélie Carré and Chris Law (Sonoco Consumer Packaging); Aurie Styla (Awards Host). Crown Packaging and Sonoco Consumer Packaging took the top awards in the 'Metal Pack of the Year' categories, sponsored by the Metal Packaging Manufacturers Association (MPMA), at the UK Packaging Awards 2026. Crown's Estrella Damm 150th Anniversary can was announced as the winner of 'Metal Pack of the Year - High Volume Food and Beverage' with Ardagh Metal Packaging awarded Highly Commended for the Guinness Limited Edition Winter Holiday can. Sonoco's Kusmi Tea Extraordinary Voyages tin took the top spot for 'Metal Pack of the Year - Promotional, Decorative & General Line' with P Wilkinson Containers & William Say receiving Highly Commended for the 100 Years of the Queen, Royal Tea tin. Held at the Hilton Park Lane, the awards ceremony brought together packaging professionals to celebrate 21 years of the UK Packaging Awards and its role in recognising innovation and creativity across the sector. The 'Metal Pack of the Year' awards were presented by Jason Galley, Director and Chief Executive of MPMA, alongside this year's ceremony host, award-winning comedian Aurie Styla. MPMA's Jason Galley explains: "The MPMA-sponsored awards celebrate the very best of metal packaging innovation, recognising product design and brand partnerships that are redefining what packaging can achieve with the unique circularity properties of steel and aluminium. With steel packaging achieving the highest recycling rate of any packaging material in the UK and aluminium, including the iconic beverage can, delivering consistently strong recycling performance, metal packaging is helping to build a true circular economy." Galley continues: "All of the finalists in the MPMA categories demonstrate how resource efficiency, brand creativity and commercial success can go hand in hand while pushing metal packaging beyond its traditional role. This year's winners impressed us with powerful, imaginative storytelling showing how metal packaging is an incredible tool for consumer connection and brand differentiation." Metal Pack of the Year - High Volume Food and Beverage To celebrate 150 years of Estrella Damm, the Barcelona-born brewery partnered with Crown Packaging to create a premium, limited-edition range exclusive to the UK market. The range featured seven distinctive designs which together formed a collectible series. Bold, colourful and highly detailed mixing opaque and transparent inks, each can had individual status while creating a striking billboard effect when displayed together. Produced at Crown's Cambridgeshire facility, using Crown's Accents(TM) Color technology, multiple designs within the same production were run by alternating visuals seamlessly during high-speed printing. Delivering this level of visual richness at scale demonstrates advanced decoration expertise. Véronique Curulla, Marketing and Business Development Director at CROWN Bevcan EMEA, says: "We are delighted to receive this recognition. Packaging plays a powerful role in storytelling, and this project demonstrates how design and manufacturing innovation can connect consumers with a brand's heritage. This innovative can range showcases how variable printing can deliver both creative impact and production efficiency at scale in a highly recyclable packaging format." Highly Commended was awarded to Ardagh Metal Packaging for the 'Guinness Limited Edition Winter Holiday' richly-illustrated, keepsake can. The distinctive execution, including a glossy finish, combined technical print excellence with cultural storytelling and consumer appeal which elevated shelf presence within the festive gifting season. Metal Pack of the Year - Promotional, Decorative and General Line For its 2025 festive collection, Kusmi Tea partnered with Sonoco to create a series of refillable, stackable, keepsake tins inspired by Jules Verne's legendary The Extraordinary Voyages. This refillable approach strongly aligns with Kusmi Tea's commitment to responsible consumption while the use of metal packaging was chosen to protect the tea from light, moisture and oxygen exposure - critical factors for preserving tea's aroma and freshness. The collection consists of three organic tea blends, each imagined as a different 'extraordinary' journey. Through the use of vibrant colours, intricate graphics and precise print execution, the storytelling collection delivered exceptional shelf stand-out while reinforcing premium brand identity. Chris Law, Key Account Manager at Sonoco Consumer Packaging, says: "Sustainable Packaging News is delighted to see its collaboration with Kusmi Tea recognised by the industry. It is a great example of how metal packaging can elevate the consumer experience, combining outstanding decoration with lasting value through reuse. "Alongside this recognition, Sonoco's CapOnCan reseal can, awarded Best New Concept, demonstrates the exciting potential of metal packaging beyond traditional formats. By bringing resealability to metal cans, we are opening new opportunities for fillers to differentiate and deliver greater convenience to consumers for many different markets. Together, these innovations show that metal packaging is not just about protecting what is inside, but creating new possibilities for brands, fillers and consumers." P Wilkinson Containers & William Say received Highly Commended for the 100 Years of the Queen, Royal Tea tin. The keepsake collection, made by the London-based manufacturer, comprised a tea tin and matching shortbread tin, featuring intricate pink and gold artwork, fine line work and subtle tonal variations developed specifically for the centenary celebrations.

Sonoco takes two awards at UK Packaging Awards 2026. Sonoco secured two wins at the UK Packaging Awards 2026, including Metal Pack of the Year for its Extraordinary Voyages packaging developed with Kusmi Tea. The awards, held at the Hilton Park Lane in London on 7 October, recognised achievements across 31 categories covering packaging design, manufacturing, materials and technology. Sonoco and Kusmi Tea won...