Sonoco Reports First Quarter 2026 Results (Form 8-K)

Sonoco Reports First Quarter 2026 Results

Hartsville, S.C., U.S. - Sonoco Products Company ("Sonoco" or the "Company") (NYSE: SON), a global leader in high-value sustainable packaging, today reported financial results for the first quarter ended March 29, 2026.

Summary:

•Net sales in the first quarter were $1.7 billion

•Reported first quarter U.S. generally accepted accounting principles ("GAAP") net income attributable to Sonoco of $67.6 million, up from $54.4 million in the same period in 2025; GAAP operating profit of $127.1 million, compared with $126.9 million in the same period in 2025

•Diluted earnings per share ("EPS") attributable to Sonoco was $0.68, up from $0.55 in the same period in 2025

•Achieved adjusted net income attributable to Sonoco in the first quarter of $119.4 million, and reported adjusted diluted earnings per share of $1.20

•Generated first quarter adjusted operating profit of $200.8 million and adjusted EBITDA of $276.5 million

•As expected, net cash used by operating activities totaled $(367.9) million in the first quarter, which included approximately $103 million in one-time taxes paid in 2026 on gains from the sales of the divested Thermoformed and Flexibles Packaging and global Trident ("TFP") and ThermoSafe businesses in 2025

•Officially opened a new paper can production facility in Nong Yai, Thailand, to serve the growing stacked chip market in Asia

•Investing approximately $20 million to add new nailed wood reel production capacity at the Company's Hartselle, AL, facility to meet growing wire and cable infrastructure demand to support artificial intelligence ("AI") data centers

2026 Guidance:

•Projected full-year adjusted EBITDA and cash flows from operating activities remain unchanged at $1.25 billion to $1.35 billion and $700 million to $800 million, respectively.

•Targeting the low end of previous full-year adjusted diluted EPS guidance of $5.80 to $6.20, stemming from projected inflationary pressures and lower demand due to the uncertain macroeconomic and geopolitical environment.

*Note: References in today's news release to 2025 consolidated "net sales," "operating profit," and "adjusted operating profit," and Consumer Packaging "segment operating profit" and "segment adjusted EBITDA," do not include results of TFP, which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale.

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Sonoco Reports First Quarter 2026 Results - Page 2

First Quarter 2026 Consolidated Results
(Dollars in millions except per share data)
						Three Months Ended
			GAAP Results			March 29, 2026			March 30, 2025			Change
			Net sales1			$	1,676		$	1,709		(1.9)		%
			Net sales related to discontinued operations			-			321			NM
			Operating profit1			127			127			0.2		%
			Operating profit related to discontinued operations			-			38			NM
			Net income attributable to Sonoco			68			54			24.2		%
			EPS (diluted)			0.68			0.55			23.6		%
						Three Months Ended
			Non-GAAP Results2			March 29, 2026			March 30, 2025			Change
			Adjusted operating profit1			$	201		$	213		(5.6)		%
			Adjusted EBITDA			277			338			(18.1)		%
			Adjusted net income attributable to Sonoco			119			137			(12.8)		%
			Adjusted EPS (diluted)			1.20			1.38			(13.0)		%
			NM = Not Meaningful
			1Excludes results of discontinued operations.
			2See the Company's definitions of non-GAAP financial measures, explanations as to why they are used, and reconciliations to the most directly comparable GAAP financial measures later in this release.

•First quarter 2026 net sales of $1.7 billion were down (1.9)% compared to the corresponding prior-year quarter, driven primarily by the November 3, 2025 divestiture of the ThermoSafe temperature assured packaging business. Additionally, net sales benefited from higher prices implemented to offset the effects of inflation and tariffs and from the favorable impact of foreign exchange rates, partially offset by lower volume/mix.

•GAAP operating profit for the first quarter was flat at $127 million due to productivity savings from fixed cost reduction initiatives and procurement savings along with a positive price/cost environment. These positive factors were offset by the absence of operating profit from the divested ThermoSafe business and lower volume/mix. Adjusted operating profit and adjusted EBITDA for the first quarter were $201 million and $277 million, respectively.

•Effective tax rates on GAAP income from continuing operations before income taxes and adjusted income from continuing operations before income taxes, were 12.4% and 25.5%, respectively, in the first quarter, compared to 30.9% and 25.7%, respectively, in the same period in 2025.

"We are proud of our team's solid performance in the first quarter despite disruptions from severe winter weather which impacted our customers and our operations, a fire that destroyed a recycling facility in South Carolina and the effects of rapidly changing macroeconomic and geopolitical conditions," said Howard Coker, President and Chief Executive Officer. "Results from our Consumer Packaging segment exceeded our expectations while our Industrial Paper Packaging segment faced operational and demand challenges. Overall, productivity and a favorable price/cost environment more than offset a decline in volume/mix."

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Sonoco Reports First Quarter 2026 Results - Page 3

Paul Joachimczyk, Sonoco's Chief Financial Officer, added, "By staying focused on controlling the controllables, our Consumer and Industrial businesses successfully drove strong productivity savings during the quarter. In addition, our Profitability Performance Plan realized $8 million in recurring cost savings during the period, which we believe provides us a line of sight to realizing at least $32 million of annual savings in 2026 and is a step towards our goal of achieving $150 million to $200 million in savings over the next three years."

First 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").

As previously announced, results of the Company's industrial and specialty plastics business ("Industrial Plastics") are now included in the Industrial segment, effective January 1, 2026; Industrial Plastics results were previously included in the All Other group of businesses. Thus, the Company will no longer provide the results of the All Other group of businesses going forward.

									Three Months Ended
			Consumer						March 29, 2026						March 30, 2025			Change
			Net sales1						$	1,097					$	1,066		2.9		%
			Segment operating profit1						$	126					$	141		(10.7)		%
			Segment operating profit margin1						11.5		%				13.2		%
			Segment Adjusted EBITDA1, 2						$	177					$	190		(6.9)		%
			Segment Adjusted EBITDA margin1, 2						16.1		%				17.8		%

•Consumer segment net sales grew 2.9%, attributable to price increases implemented to offset the effects of inflation and tariffs and the favorable impact of foreign exchange rates. These increases were partially offset by softer volumes.

•Segment operating profit and segment adjusted EBITDA decreased due to softer volumes, partially offset by benefits from productivity savings and a favorable price/cost environment.

									Three Months Ended
			Industrial						March 29, 2026						March 30, 2025			Change
			Net sales3						$	579					$	588		(1.4)		%
			Segment operating profit3						$	69					$	76		(9.3)		%
			Segment operating profit margin						12.0		%				13.0		%
			Segment Adjusted EBITDA2, 3						$	100					$	107		(7.2)		%
			Segment Adjusted EBITDA margin2						17.2		%				18.3		%

•Industrial segment net sales were down slightly at $579 million, as year-over-year price gains were more than offset by lower volume/mix across the segment.

•Segment operating profit margin was 12.0%, down 100 bps from the prior period, and adjusted EBITDA margin declined slightly to 17.2% due to unfavorable volume/mix and losses attributable to a fire at a recycling facility in Greenville, South Carolina.

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Sonoco Reports First Quarter 2026 Results - Page 4

1 Excludes results of discontinued operations.

2 Segment adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See the Company's reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures later in this release.

3 Net sales, segment operating profit, and segment adjusted EBITDA for the three months ended March 30, 2025 include results from Industrial Plastics of $30 million, $5 million, and $6 million, respectively, previously included in

All Other, to provide clearer year-over-year comparisons.

Balance Sheet and Cash Flow Highlights

•Cash and cash equivalents were $224 million as of March 29, 2026, compared to $378 million, as of December 31, 2025.

•Total debt and net debt were $4.7 billion and $4.5 billion, respectively, as of March 29, 2026, reflecting increases of $0.4 billion and $0.6 billion, respectively, compared to December 31, 2025. These increases were primarily related to the seasonal changes in net working capital in the Company's metal packaging business.

•On March 29, 2026, the Company had available liquidity of $1.1 billion, comprising available borrowing capacity under its revolving credit facility of $0.9 billion and cash on hand.

•Cash flow from operating activities for the period ended March 29, 2026 was a use of $(368) million, compared to a use of $(208) million in the same period of 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.

•Capital expenditures, net of proceeds from sales of fixed assets, for 2026 were $60 million, compared to $92 million last year.

•Free Cash Flow for the period ended March 29, 2026 was $(428) million compared to $(300) million in the same period in 2025. Free Cash Flow is a non-GAAP financial measure. See the Company's definition of Free Cash Flow, the explanation as to why it is used, and the reconciliation to net cash provided by operating activities later in this release.

•Dividends paid during the three months ended March 29, 2026 increased to $52 million compared to $51 million in the same period of the prior year.

Guidance(1)

Full-Year 2026

•Net Sales: Guidance of $7.25 billion to $7.75 billion is unchanged

•Adjusted EPS(2): Projecting the low end of previous guidance of $5.80 to $6.20 per diluted share

•Adjusted EBITDA(2): Guidance of $1.25 billion to $1.35 billion is unchanged

•Cash flow from operating activities: Guidance remains unchanged at $700 million to $800 million, including payments of prior year taxes on gains from divestitures and restructuring costs

Commenting on Sonoco's outlook, Joachimczyk said, "Current macroeconomic and geopolitical uncertainty is resulting in higher than expected inflation affecting energy, logistics, chemicals, resins and other input costs. While we are working hard to reduce the impact on our customers, we must continue to take appropriate actions to pass on these rising costs. In addition, we believe the changing market environment could impact industrial and consumer demand, and we are closely monitoring our operating costs with the goal of staying in line with projected volumes. Finally, we remain focused on planned structural and operational savings actions, including implementing our profitability performance plan, to achieve our long-term margin improvement goal."

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Coker concluded, "Sonoco's strategy is focused on sustainable growth, margin expansion and efficient capital allocation. As part of our growth strategy, we recently opened a new paper can operation in Thailand that will annually produce more than 200 million units for the growing stacked chip market in Asia. We believe that over the next several years, this facility could grow to become our largest paper can operation in Asia. In our industrial business, we are investing $20 million to add a new automated nailed wood reel production line at our Hartselle, AL facility, which, if operational at the end of the second quarter as planned, is expected to increase our capacity by 15% to meet the needs of the fast growing wire and cable industry as it supplies the power infrastructure for AI data center growth."

"In addition to funding our growth and promoting productivity savings, our disciplined capital allocation strategy remains focused on reducing debt and returning capital to our shareholders. Recently, our board authorized the 43rd consecutive annual increase of dividends to shareholders and Sonoco is one of only a few public companies that have paid dividends consecutively for more than 100 years. Despite current uncertainties, we remain confident in our portfolio, our strategy and our ability to execute through economic cycles."

(1)Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the future performance of the overall economy, the effects of tariffs, trade policy and inflation, the challenges in global supply chains, potential changes in raw material prices, other costs, and the Company's effective tax rate, as well as other risks and uncertainties, including those related to the integration of Eviosys and described below, actual results could vary substantially. Further information can be found in the section entitled "Forward-looking Statements" in this release.

(2) Full year 2026 GAAP guidance is not provided in this release due to the likely occurrence of one or more of the following, the timing and magnitude of which we are unable to reliably forecast without unreasonable efforts: restructuring costs and restructuring-related impairment charges, acquisition/divestiture-related costs, gains or losses from the sale of businesses and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company's future GAAP financial results. Accordingly, quantitative reconciliations of Adjusted EPS and Adjusted EBITDA guidance and net debt/Adjusted EBITDA targets to the nearest comparable GAAP measures have been omitted in reliance on the exception provided by Item 10 of Regulation S-K.

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Sonoco Reports First Quarter 2026 Results - Page 6

Earnings Conference Call Webcast

Sonoco's management will host a conference call to discuss its first quarter 2026 results on Wednesday, April 22, 2026, at 8:00 a.m. Eastern Time. The Company will provide prepared remarks, a presentation and host a question-and-answer session during the call. A live audio webcast of the call along with supporting materials will be available on the Sonoco Investor Relations website at https://investor.sonoco.com/. A webcast replay will be available on the Company's website for at least 30 days following the call.

Time:			Wednesday, April 22, 2026, at 8:00 a.m. Eastern Time
Audience Dial-In:			To listen via telephone, please register in advance at: https://registrations.events/direct/Q4I122827 After registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call.
Webcast Link:			https://events.q4inc.com/attendee/192737512

Contact Information:

Roger Schrum

Head of Investor Relations and Communications

[email protected]

843-339-6018

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Sonoco Reports First Quarter 2026 Results - Page 7

About Sonoco

Sonoco (NYSE: SON) is a global leader in high-value sustainable metal and paper consumer and industrial packaging. With sales of $7.5 billion from continuing operations in 2025, the Company has approximately 22,000 employees working in 265 operations in 37 countries, serving some of the world's best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. Sonoco was proudly named one of the World's Most Admired Companies by Fortune in 2026 as well as one of America's Most Trustworthy and Responsible Companies by Newsweek and USA Today's Climate Leaders in 2025. For more information on the Company, visit our website at www.sonoco.com.