SON

This article first appeared on GuruFocus. - Net Sales: $2 billion, down 4% year-over-year; essentially flat excluding the Thermosafe divestiture. - Adjusted EBITDA: $352 million with a 17.2% margin; down 9% year-over-year, or 4% excluding Thermosafe. - Adjusted EPS: $1.67, down 13% year-over-year, or 7% excluding Thermosafe. - Operating Cash Flow: $285 million in Q3 despite seasonal working capital headwinds; year-to-date cash flow above last year. - Free Cash Flow: Up 2% year-over-year; capital spending tracking at 3.3% of sales for the year. - Debt Reduction: Total debt reduced by $162 million and net debt by $176 million; $800 million term loan refinanced. - Goodwill Adjustment: $829 million non-cash goodwill adjustment, primarily related to the consumer EMEA business (does not affect adjusted results). - Industrial Segment Sales: Up 5% year-over-year to $646 million, supported by pricing and strong North American execution. - Industrial Adjusted EBITDA: Down 5% year-over-year as higher OCC, freight, and diesel costs preceded price recovery. - Industrial Volume/Mix: Modestly positive; North America URB trade ton sales up 10% year-over-year; mill utilization at 94%; global trade ton sales up 6%. - Consumer Segment Sales: Down 3% year-over-year, including a 1% foreign exchange impact; volume mix down 3% year-over-year. - Consumer EBITDA: Down 9% in the quarter. - Consumer Highlights: International paper can volumes up double digits; US aerosol can demand up 7%; canned seafood now 10% of consumer portfolio. - Input Costs: Freight costs up $17 million year-over-year; diesel topping $6.50 per gallon in the U.S.; OCC up $25 per ton in the quarter and 90% higher year-over-year; total URB production costs up more than $60 per ton year-over-year; over $30 million in input cost headwinds mitigated by productivity and cost actions. - Pricing Actions: Two industrial price increases totaling $110 per ton implemented in 2026; surcharges implemented across industrial and consumer businesses for freight and diesel costs. - Profitability Performance Plan (PPP): $16 million savings in Q3 (up from $10 million in Q2 and $8 million in Q1); year-to-date savings of $34 million; annualized savings of $51 million, one-third of the low end of the $150 million$200 million three-year target; contributed $0.12 to EPS. - Footprint Optimization: Closing two European sites expected to generate $15 million$20 million of savings in 2027. - Full-Year 2026 Outlook: Net sales of $7.2 billion$7.4 billion; adjusted EBITDA of $1.2 billion$1.25 billion; adjusted EPS of $5.30$5.50; operating cash flow of $600 million$650 million. - Warning! GuruFocus has detected 3 Warning Signs with SON. - Is SON fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Industrial segment delivered solid results with 10% year-over-year increase in North America URB trade ton sales and strong mill utilization at 94%. - Wire and cable reel sales continue to perform well with double-digit sales growth, driven by data center construction and infrastructure investments. - Productivity initiatives and cost control mitigated a significant portion of input cost inflation, with the PPP program delivering $60 million in savings, its strongest quarterly contribution to date. - The company generated strong operating cash flow of $285 million in Q3 and reduced total debt by $162 million, strengthening the balance sheet. - International paper can operations delivered double-digit volume growth, and US aerosol can demand was up 7%, showing resilience in certain consumer segments. - Consumer Packaging segment results were below expectations, with volume mix down 3% year-over-year due to unfavorable weather conditions and price-cost relationships. - Significant input cost inflation, including freight costs up $17 million year-over-year and OCC costs up 90% from a year ago, pressured margins. - Adjusted EBITDA declined 9% year-over-year, and adjusted EPS fell 13% year-over-year, reflecting the challenging operating environment. - A non-cash goodwill impairment of $829 million was recorded, primarily related to the consumer EMEA business, indicating weaker performance in that segment. - Full-year guidance was updated downward, with net sales expected at $7.2-$7.4 billion and adjusted EPS at $5.30-$5.50, reflecting current market conditions and softer volumes. Q: George Staphos (BofA) asked why the fourth-quarter guidance range remains wide and what drove the $829 million goodwill impairment tied to the consumer EMEA business.A: CEO Robert Coker said the wide range reflects macro uncertaintydiesel unexpectedly surged from about $4 to $6.50 per gallon after Q2, when the company thought inflation had peakedthough the quarter is tracking toward the midpoint. On the impairment, CFO Paul Joachimczyk said it stemmed from the normal annual goodwill testing cycle: the acquired business was passing with only a 3% margin in 2025, performed on track in the first half of 2026, but Q3 volume challenges and inflation headwinds triggered the charge. He stressed it does not change the long-term viability or global strategy, since the business must be tested on a standalone basis without capturing global synergies. Q: Michael Roxland (Truist) asked how much incremental cost the company faced in the quarter versus how much was offset by productivity and cost controls.A: CFO Paul Joachimczyk said the total impact was roughly $40 million to $50 million, split almost evenly between volume and inflation. Productivity offset about $0.24 of the $0.26 per-share headwind, leaving $0.26 to fall to the bottom line. Q: Michael Roxland (Truist) asked for the key buckets bridging to 2027 EBITDA from a lower 2026 base, and how the company will reach its $1.5 billion 2028 target.A: CFO Paul Joachimczyk cited $15 million to $20 million from the two European site closures, relatively flat volumes, PPP productivity gains, and carryover inflation. He expects positive price-cost recovery in Industrial by the first half of 2027, but said steel buy and consumer contract negotiations are still underway. Full 2027 and 2028 outlooks will be provided in February. Q: Anthony Pettinari (Citi) asked about the consumer volume mix outlook for Q4 and whether costs would be stable or inflationary sequentially.A: CEO Robert Coker said consumer volume is forecast roughly flat year-over-year in Q4, with industrial up slightly, and costs assumed to level out. He noted the first $50-per-ton industrial price increase was consumed by a $60 cost increase in Q3, and full recovery of the second increase won't come until Q1 2027. Consumer surcharges and price increases won't reset until the start of the year, leaving some inflation headwind. Q: Mark Weintraub (Seaport) asked how much of the 3% consumer volume decline was weather-related versus structural, and about a competitor reentering the URB market.A: CFO Paul Joachimczyk said drought impacts in the U.S. and Europe were largely a one-time seasonal effect that can't be recovered once harvest passes, but bright spots included U.S. aerosols, European fish and seafood, pet food, and international paper can growth in Europe, Asia, and Mexico. CEO Robert Coker said the reentering competitor isn't visible in Sonoco's markets and he sees no pricing impact. Q: John Dunigan (Jefferies) asked whether can business pricing includes PPI pass-throughs or is tied to annual steel negotiations, and about the cadence of the profitability performance plan (PPP).A: CFO Paul Joachimczyk said steel is negotiated annually, with customer price negotiations mainly at two points in Q1 and Q2, plus surcharge accelerators for tariffs and other items; paper cans work similarly. On PPP, he expects about $50 million in 2026, $15 million to $20 million from site closures in 2027, and a steady ramp toward roughly $180 millionthe middle of the $150 million to $200 million target. Q: Hillary Cacanando (Deutsche Bank) asked about OCC cost expectations for Q4 and 2027, and growth in the reels business amid data center demand questions.A: CEO Robert Coker expects OCC flat in Q4 and said further price actions are possible in the new year. For reels, he expects similar growth rates to recent years, supported by added capacity, with data center demand slower than many expected but grid greening and rural internet expansion driving the business. Q: Ghansham Panjabi (Baird) asked about full-year 2026 price-cost and whether the shortfall will be recovered in 2027, plus consumer affordability and GLP impacts.A: CFO Paul Joachimczyk said both consumer and industrial lagged on price-cost in 2026, with some costs forgone, but industrial should turn positive by late Q4 into Q1 2027 and consumer should be roughly neutral after 2027 pricing negotiations. CEO Robert Coker said he isn't expecting consumer deteriorationtrade-downs favor Sonoco's private-label exposure, and a tighter consumer wallet historically drives center-of-store demand. Q: Matt Roberts (Raymond James) questioned why consumer and industrial volumes shouldn't grow in 2027 given easy comparisons and reels strength, and asked about aerosol demand durability.A: CEO Robert Coker acknowledged the 2027 view may be conservative after 2026's unexpected macro shocks, with deeper guidance to come early next year. He remains bullish on aerosols, expecting no material step back from Q3's 5% to 7% growth given a strong customer mix. Q: Anojja Shah (UBS) asked about the interest expense impact of refinancing the $800 million term loan.A: CFO Paul Joachimczyk said the impact is roughly immaterial at $2 million to $3 million, but the refinancing provides optionality by pushing all current maturities out to 2028 and beyond. Q: George Staphos (BofA) asked about the OCC environment into Q4 and whether the secular volume outlook for the consumer business has changed.A: CEO Robert Coker expects normal seasonal OCC generation with no increase planned, and any pullback would be welcome. On consumer, weather/agriculture exposure has risen from 5% to 7% of the portfolio in 2019 to 15% to 17% today, but he is bullish on seafood (now 10% of the portfolio), infant formula, PET, and paper can growth in Southeast Asia, Europe, and new U.S. applications.

- Interested in Sonoco Products Company? Here are five stocks we like better. - 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. - GTA VI's Console Problem Isn't Take-Two's Problem 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. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - Sony and TSMC's $4.7 Billion Venture Is About More Than Camera Sensors 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. 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. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - Sony Is Going All-Digital—But Investors Should Watch This Instead 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. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price 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 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. 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. 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. 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]. The article "Sonoco Products Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Image source: The Motley Fool. Thursday, Oct. 22, 2026 - Head of Investor Relations and Global Marketing Communications - Roger Schrum - President and Chief Executive Officer - Howard Coker - Chief Financial Officer - Paul Joachimczyk Operator: Thank you for joining us, and welcome to the Sonoco Third Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Roger Schrum, Head of Investor Relations and Global Marketing Communications. Roger, please go ahead. Roger Schrum: Thank you, Warren, and good morning, everyone. Last evening, we issued a news release and posted an investor presentation that reviews Sonoco's third quarter 2026 financial results. Both are posted on the Investor Relations section of our website at sonoco.com. A replay of today's conference call will be available on our website later today and we'll also post a transcript. If you'll turn to Slide 2, I will 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 operations. Further information about the company's use of non-GAAP financial measures, including definitions as well as reconciliations to GAAP measures is available under the Investor Relations section of our website. Joining me this morning are Howard Coker, President and CEO; and Paul Joachimczyk, Chief Financial Officer. For today's call, we'll provide remarks followed by your questions. If you'll turn to Slide 4 in your presentation, I'll now turn the call over to Howard. Robert Coker: Thank you, Roger, and good morning, everyone. During the third quarter, our business has faced a combination of challenges. Through strong productivity initiatives and rigorous cost control, our teams were able to mitigate a significant portion of these issues and deliver resilient operating results. Paul will cover the detailed financial results. So if you'll turn to Slide 5, I'll focus my comments on the operating performance of our Industrial and Consumer Packaging segments, where we maintain leadership positions in uncoated recycled paperboard, metal and paper cans and closures. Our Industrial segment delivered another solid quarter with results essentially in line with the second quarter despite a dynamic operating environment. Productivity continued to be a key driver, while North America URB trade ton sales increased 10% year-over-year and mill utilizations remained strong at 94%. Wire and cable reel sales continue to perform well with double-digit sales growth. Overall, volume/mix in the Industrial segment was modestly positive. Additional URB pricing realized in September further strengthens our ability to recover rising input costs moving forward. Results from our Consumer Packaging segment were below our expectations. Volume/mix was down 3% year-over-year, primarily due to hot and dry weather conditions and unfavorable price/cost relationships during the quarter. There were several encouraging areas of performance in the Consumer segment. Our international paper can operations delivered double-digit volume growth, supported by continued solid demand for snack products across emerging markets. Also, U.S. aerosol can demand was up 7%, while productivity initiatives generated strong operational benefits across the businesses. As illustrated on Slide 6, we faced several external factors in the third quarter. Drought conditions across parts of both Europe and the United States negatively impacted crop yields, reducing demand for food cans. At the same time, inflationary pressures across raw materials, freight, energy and other operating inputs were simply beyond our expectations. As shown on Slide 7, we have spent much of 2026 managing a dynamic business environment. Freight costs alone increased $17 million year-over-year in the quarter, while diesel prices, which had stabilized in early July, accelerated to record levels, topping $6.50 per gallon in the U.S. Energy, raw materials and other operating costs also continued to rise. Old corrugated containers, or OCC, our largest industrial raw material input, increased another $25 per ton during the quarter and is now 90% higher than a year ago. As a result, total URB production costs have increased more than $60 per ton year-over-year. In addition, the euro adjusted relative to the U.S. dollar during the quarter, which reduced the translated value of our European sales and earnings. While these factors were significant, our focus has not changed. We're driving productivity. We're managing costs aggressively and implementing pricing actions where appropriate. With that brief summary, let me turn it over to Paul, and then I'll come back with some final comments. Paul Joachimczyk: Thank you, Howard. Before I review the quarter, 2 reminders. Unless otherwise noted, all metrics are adjusted. Reconciliations to the most directly comparable GAAP measures are included in our earnings materials. Also, third quarter 2025 results included ThermoSafe, which was divested in the fourth quarter of 2025. Where relevant, I will compare results both as reported and excluding ThermoSafe. During the quarter, we recorded an $829 million noncash goodwill adjustment, primarily related to the Consumer EMEA business. The adjustment reflects an updated assessment of the carrying value based on current market conditions and business performance. It does not affect adjusted results that I will be discussing today. Turning to the third quarter results on Slide 9. The third quarter reflected changing market conditions. We responded with targeted pricing, productivity and cost actions. Let me walk through the results. Net sales were $2 billion, down 4% year-over-year. Excluding the ThermoSafe divestiture last year, sales were essentially flat. Industrial contributed $32 million of growth, driven by healthy trade and URB demand, along with pricing realization in North America. Consumer offset those gains primarily because of the lower pack season volumes in North America and Europe reflected with the effects of high temperatures, rainfall and other weather events on crop yields. Adjusted EBITDA was $352 million with a margin of 17.2%. This was down 9% year-over-year or 4% excluding ThermoSafe. Productivity and cost actions mitigated a portion of more than $30 million in input costs. Adjusted EPS was $1.67, down 13% year-over-year or 7% excluding ThermoSafe. Higher input costs and softer global food can demand affected the reported results, while productivity and the Profitability Performance Plan, or PPP, benefits helped mitigate those pressures. Our businesses again generated strong operating cash flows in the third quarter, delivering $285 million despite seasonal working capital headwinds. We also strengthened the balance sheet by reducing total debt by $162 million and net debt by $176 million, while successfully refinancing an $800 million term loan. That refinancing extends our maturity profile and enhances financial flexibility, supporting our capital allocation priorities while maintaining our investment-grade credit ratings. Although volumes and related inventory affected quarterly cash generation, year-to-date cash flow remains above last year. We are taking significant actions to create advantageous financial outcomes. Industrial sales increased 5% and productivity initiatives helped offset input costs. Our PPP program delivered an additional $16 million of savings, its strongest quarterly contribution to date. These results demonstrate the disciplined execution and position us well as the market conditions improve. Turning to the EPS bridge on Slide 10. Adjusted EPS of $1.67 included $0.26 of operational performance headwinds. In Consumer, input costs and softer global food can demand affected earnings. In Industrial, higher OCC costs preceded contractual price resets during the quarter. Nonoperational items provided a net $0.02 benefit to EPS. Lower interest expense from debt reductions contributed $0.12, while SG&A savings added $0.06. Depreciation and amortization, tax rate impacts and other items offset these nonoperational benefits. PPP contributed an additional $0.12 to EPS, up from $0.07 in the second quarter. This was the third consecutive quarter of realized savings and the program's largest contribution to date. Year-to-date, these actions have delivered $0.25 of EPS benefit, offsetting some of the input costs through the first 9 months of 2026. Overall, productivity, disciplined cost management and PPP helped mitigate the effects of lower volume and higher input costs in the quarter. Turning to cash flow on Slide 11. We continue to generate solid free cash flow, up 2% year-over-year, even with softer sales and seasonal working capital increases. Disciplined capital spending now tracking at 3.3% of sales for the year demonstrates our fiscal responsibility. As a reminder, our year-to-date cash flow includes $103 million of onetime tax payments related to the gains of our 2025 divestitures, which will not repeat. We remain focused on delivering our cash flow commitments and maintaining our strong balance sheet. With that context, let's turn to Slide 12. This quarter, we added an additional detail to provide greater transparency into our balance sheet, liquidity and disciplined approach to managing financial cycles. We reduced total debt by $162 million and net debt by $176 million during the quarter. We also refinanced an $800 million term loan, extending our maturity profile, enhancing our financial flexibility and maintaining our low funding cost. The strong cash-generating power of this business allows us to reduce our debt, invest back into the company and continue our 43-year track record of increasing dividends paid to shareholders. Turning to the segment performance on Slide 13. Consumer sales were down 3% year-over-year, including a 1% foreign exchange impact primarily from euro movements, along with softer global metal food can volume. Harvesting quality and high temperatures affected crop yields across several key customers and end markets. Other parts of the portfolio remained resilient. Pricing in paper cans and international volume growth partially offset lower metal food can volumes. We expect paper can volume to remain steady through the end of the year. Improving canned seafood volumes also supported the segment with that market now representing 10% of our Consumer portfolio. Consumer EBITDA was down 9% in the quarter. The team is responding with urgency through productivity, operational excellence and pricing initiatives. Investments in plants efficiencies and asset utilizations are strengthening the segment's earnings profile. We are also accelerating footprint optimization by closing 2 sites in Europe, which we will expect to generate $15 million to $20 million of savings in 2027. Industrial sales increased 5% year-over-year to $646 million, supported by pricing and strong North American execution. Mill utilization also remained strong. Reels continue to grow, benefiting from the recent capacity investments and higher wood demand, particularly for wire and cable applications supporting data center construction and broader U.S. infrastructure investments. Industrial adjusted EBITDA was down 5% year-over-year as higher OCC, freight and diesel-related transportation costs preceded price recovery. Productivity and operational improvements mitigating a meaningful portion of these cost increases. The Industrial team continues to execute well through productivity and commercial initiatives. Demand across key end markets remains healthy and additional pricing actions are underway. On Slide 14, I'll review the progress on the Profitability Performance Plan. Our 3-year Profitability Performance Plan is a company-wide program designed to deliver structural margin improvement, simplify the organization and strengthen commercial effectiveness. The program is gaining momentum and directly offsetting input costs. Results through the first 9 months reinforce our confidence in the earnings and margin opportunities in 2027 and beyond. The plan delivered $16 million of savings in the third quarter, up from $10 million in the second quarter, $8 million in the first. Year-to-date savings reached $34 million and now annualized savings are at $51 million or 1/3 of the low end of the 3 -- range of our 3-year target of $150 million to $200 million. We remain on track and continue to pursue opportunities to accelerate savings toward the high end of that range. These structural savings create a durable foundation for continued profitability improvement. Turning to our full year outlook on Slide 15. We remain confident in our strategic direction, including the move to One Consumer business and in the progress of our productivity and profitability initiatives. We are driving additional improvements to offset higher input costs and softer volumes. Based on the current market conditions and the third quarter performance, we are updating our full year expectations. We now expect 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. Our updated outlook reflects current market conditions. The underlying pace and quality of our execution remains strong. In the third quarter, we delivered solid industrial growth, significant productivity gains and meaningful PPP benefits while accelerating select European footprint actions. These steps are building a more agile, efficient and profitable Sonoco, and we remain confident in our ability to expand margins, strengthen earnings power and create long-term shareholder value. With that, I'll turn the call back to Howard. Robert Coker: Thank you, Paul. If you'll turn to Slide 16, I want to spend a few minutes on what we're doing to improve performance and position the business for future growth. In August, we aligned our can businesses as one global Consumer Packaging segment. This creates one team focused on driving greater alignment across operations, technology, R&D, procurement, supply chain and commercial execution around the world. Ernest Haynes has been made President of our $5 billion Global Consumer segment with operations in America, EMEA and APAC. Ernest has 30 years of leadership experience at Sonoco and has already hit the ground running, building a strong global team and spending significant time with our operations and customers around the world. As Paul mentioned, we are accelerating actions to improve profitability, including optimizing facilities and taking additional cost saving initiatives under our PPP program. At the same time, we're staying focused on cost recovery while continuing to invest in opportunities that support long-term growth. Turning to Slide 17. Our industrial business continues to perform well despite rising input costs that we've managed throughout the year. URB demand remains healthy with global trade ton sales up 6% in the third quarter and operating rates in the U.S. continue to run in the mid-90s as we enter the fourth quarter. We also see strong demand drivers for wire and cable reels. Those positive trends give us confidence in the long-term outlook for our business, and we're evaluating additional investments to support further growth. On Slide 18, you can see the actions we're taking to address rising input costs. In the Industrial segment, we successfully implemented two price increases this year totaling $110 per ton. Because of the timing of the most recent increase, we will realize some of the benefit in the fourth quarter with the full impact showing up as we move into 2027. And finally, we've implemented surcharges across both our industrial and consumer business to help offset the input cost increases we've experienced in freight and diesel. As we wrap up on Slide 19, the third quarter was clearly dynamic, but we also believe we're entering an important period of opportunity. In Industrial, we're benefiting from strong URB demand and continued growth in reels. In Consumer, our innovation pipeline in both metal and paper cans positions us for future growth. Most importantly, we remain confident in our strategy, our market-leading positions and the ability of our team to execute through economic cycles. With that, operator, we'd be more than happy to answer any questions. Operator: [Operator Instructions] Your first question comes from the line of George Staphos with Bank of America. George Staphos: I appreciate the details. I guess for my two questions, Howard, I guess, to begin, the range implied for the fourth quarter is relatively wide. And I was wondering at this juncture, what's giving you the pause, if there is any, to narrowing the range since we're obviously now 9 months into the year. Where is most of the uncertainty if there is any, showing up? Is it inflation? Is it in volume? The second question, recognizing that it doesn't affect your cash flow, can you talk about what went into, as I understood it, the impairment charge related to the food can business and kind of what the considerations were and what it means or what your accountants thought in terms of what is going forward in terms of cash flow generation from that business that led to that charge? Robert Coker: Yes. Thanks, George. I'm going to flip over to Paul to get a little more color and depth to your question. But from a range perspective, after exiting Q2, as we were reaching the end of Q2, we thought we had peaked out in terms of inflation. Who would have thought that diesel would have run off from $4 at that point in time to, as I noted, $6.50? So it's wide, yes, but you also have to add in what's going to happen as it relates to the holiday seasons, et cetera, on the macro side of things. As we enter the quarter, things seem to be tracking to our midpoint type expectations. So it's really about the unknowns and what amount of surprises that we've seen from a macro. Let me talk just briefly about the impairment. And again, Paul can get into more of the technical side of it. But we're as bullish about the strategy as we've ever been. There's no doubt about it that if you look inside the 4 walls of the acquisition that we've had a sluggish type of start, and it starts with leadership. We were, unfortunately, we lost our key leader midway through the first year. But I'm really, really excited about the new structure and the benefit under Ernest and his team, global team that he's got in place. It's great assets that we have across the portfolio, not just in Europe, but in the U.S. as well, great team, great people, dynamic market. And we see just the same thing we saw from day 1. It's just taken us a little bit more time. And again, I'll pass it on to Paul, that the benefit that we've defined from the very beginning was that as we entered into this market 3, 4 years ago that scale mattered. And we felt like this acquisition was going to be a benefit on a global perspective. Well, that's not how you test. You test on performance within the 4 walls of the acquisition. But we've seen strong benefit in North America and other parts of the world that we're very happy with. And Paul talked to SG&A type savings, and I'm referring to more procurement, but SG&A savings that are now captured in PPP that we're moving forward. So strategy is intact, alive and well. We're excited about it. But Paul, if you would like to add any further color? Paul Joachimczyk: Absolutely. Yes. So George, the impairments, we annually test our goodwill in the third quarter, and this really is a normal cycle for us. And if I take you back to what happened in 2025, is a very narrow margin that we disclosed in our Q and our K that we were passing with a 3% margin. If we fast forward to the first half of this year, business is performing on track. And then really in Q3, battling the volume challenges that were over there and the inflation headwinds that really hit us did lead us into a space where we actually had to take the impairment charge. Nothing really changes on the long-term viability of the business, the overall global strategy for us. It is just the fact that we have to test this business still independently and as a stand-alone and we can't capture those global synergies across the portfolio. But really, it's just more of a, there was no triggering event. It's just our normal annual process that we have to go through. Operator: Your next question comes from the line of Mike Roxland with Truist Securities. Michael Roxland: First one, relative to your expectations, how much were incremental costs in the quarter? And how much were you able to offset with productivity initiatives and other cost control? Paul Joachimczyk: Yes. It's a good question. So really, if you break it into two parts, and that's really kind of the theme that happened in Q3 is there was a volume impact and there was an inflationary impact. And they were both relatively equal. And you could say roughly the total impact was around $40 million, $50 million almost split between volume and inflation. Productivity did offset some of that. You saw in our EPS bridge, call it, $0.26 of EPS headwinds that was there. You'd say of that $50 million headwinds that we did have and experience, $0.24 of it was offset and then $0.26 fell negatively to the bottom line. Michael Roxland: Got it. That's very clear, Paul. And then just in terms of how we think about maybe '27 and '28 EBITDA, obviously, for '27, could you provide us with some of maybe the larger buckets, key items to get to '27 EBITDA because now you're starting at a lower midpoint or low point, I should say, for 2026. You're down about $75 million. So obviously, starting from a lower base. So help us bridge to 2027 with some of the larger buckets or key items. And then also, if you don't mind, can you help us understand how you're going to achieve the $1.5 billion in EBITDA in 2028 that you targeted at your Analyst Day last year? Paul Joachimczyk: Yes. Good questions there on the 2027 bridge. And we gave a couple of snippets in there in the call. If you picked up on the 2 site closures that we're talking about in Europe, that's going to enhance our EPS or EBITDA by $15 million to $20 million that are out there. We are expecting relatively flat volumes year-over-year and then you add in some of the PPP productivity that's going to enhance some of the earnings that are there, but we do experience inflation that's going to carry through. But I'll say, as long as inflation holds, here are some of the positives. On the industrial side, we should be in a positive price/cost recovery mode into the first half of '27. And then we are still going through the negotiations on our steel buy in our Consumer business. And as you know that, that gets closed out as we close this year and then we go into those contract negotiations with our customers in the first quarter. Still too early to speculate on where that will land, and we'll give you the full '27 outlook as we get into February and we give that guide. Michael Roxland: And then just quickly, Paul, just in 2028, how do you expect to bridge that as well? Paul Joachimczyk: The '28, we'll give the context on that as well in February. Operator: Your next question comes from the line of John Dunigan with Jefferies. [Operator Instructions] Your next question comes from the line of Anthony Pettinari with Citi. Anthony Pettinari: Just following up on George's question earlier. Consumer volume mix was down 3%, I guess, year-over-year in 3Q. And looking at the guidance range for 4Q and just looking at kind of what, how October has played out, any thoughts on what that range might be? And then second question, from a cost perspective, are you expecting costs for 4Q to sequentially be kind of just stable with 3Q? Are you penciling in a little inflation or a little relief? Or just any finer point you can put on that? Robert Coker: Thanks, Anthony. Right now, what we're forecasting into Q4 is relatively flat year-over-year on Consumer. We think Industrial is going to be up slightly. And you're hitting on the issue is inflation. Right now, we're assuming that things are fairly well leveled out. So we're not expecting things to get worse from an inflationary perspective. But keep in mind, again, we talked through it in the prepared remarks that while we received good recognition on the two price increases we put in industrial, the second recognition, first off, we were $50 recognized with an increase in cost of $60. So it was consumed, first was consumed in the third quarter. Second one was recognized late in the quarter. So we will not get 100% recovery of that second $60 until January 1 or the first quarter of this coming year. On the Consumer side, as Paul just said, it's really, while we've got surcharges and price increases out there where available, contracts really don't reset until the beginning of the year. So there's still a bit of an inflation headwind, some improvement as it relates to the recovery I just talked to, but flat in Consumer and slightly up in Industrial. Operator: Your next question comes from the line of Mark Weintraub with Seaport Research Partners. Mark Weintraub: So I appreciate the flat in Consumer volume expectation for 4Q. Could you provide maybe a little bit more color on specifically for Europe and also in 3Q, I think you've talked about 3% kind of overall. And how much of, and if you could kind of talk through where -- why volume came out the way it did? I mean, because you referenced things about weather, et cetera. So trying to get a sense as to how much is quasi onetime versus thinking about the underlying structural growth in the business and things like that. Paul Joachimczyk: Yes, Mark, great question. And if we think about, I'll answer the 3Q first. The drought and impacts like that did impact our volumes across the globe. It doesn't matter if it's in the U.S. or Europe. I'd say those are all negatively impacted. We did have some bright spots though. And if you point to the bright spots, it was around our aerosol business in the U.S., it was around our fish and seafood business across the European primarily, our pet food business, the PIF business as well, too. Those were all strong volume gains. It really is, it goes to this onetime, I'll call it, a seasonal impact related to the drought that's there. I do not expect that to continue forward. If anything, I'd say that gives us more confidence as we go into the out years that more crops will have to be planted, more acreage will have to be in the ground, there will be canning opportunities for us as we go into '27 and beyond. So I really want to quantify Q3 as that kind of seasonal impact onetime. Unfortunately, you don't have the ability to go recover that in the fourth quarter because once the crop harvest is passed, you really do kind of get stale in that space. The other bright spots here, too, was around our snacking portfolio. If you think our paper can business internationally, that did grow strong both in Europe and in Asia. You're seeing really strong growth down in Mexico as well, too, those facilities are sold out. So this is a really strong opportunity for us on different fronts of our portfolio, but really the impact this quarter was our food can volumes. Mark Weintraub: Okay. Super. And then just if you could just update us with your thoughts. Obviously, you've had a competitor reenter the URB market. As you've gotten a little bit more color, thoughts on possible impact for you guys? Robert Coker: Yes. Mark, we're really not seeing that particular competitor in our space. I'm sure they're having some success in markets that we really don't participate in. So it's kind of business as usual as far as we're concerned. Mark Weintraub: And maybe just as a quick follow-up. The way your pricing contracts are set up, even if the competitor is not competing directly where you do, does it potentially have impact because perhaps contracts are tied to parts of the market where they do compete? Or are you able to insulate yourself from that risk? Robert Coker: Yes. Right now, even in those markets, it's hard for me to answer that question. I would say no. I think that the bigger players in the market are going to carry more weight than some of the smaller, less demanding sides of the business. So at this point in time, we're not concerned about it. And frankly, even in, we're just not even seeing a pricing issue in the market at this point in time. Operator: Your next question comes from the line of John Dunigan with Jefferies. John Dunigan: Can you hear me now? Robert Coker: Yes, John. John Dunigan: Sorry about the technical difficulties before, but I appreciate the time and all the details this morning. I just wanted to start off on the can businesses. Can you remind us if there's any aspect of a cost pass-through tied to PPI for those businesses? Or it's just really as you get to year-end, talking about the steel pricing and getting that re-upped? Paul Joachimczyk: Yes, John, really, if you go into how we do price this, there is those indexes that are out there. But going back to how the whole can business works is you go through your primary component of your steel, which gets negotiated annually. And then there is two opportunities kind of with some of the customers kind of at the Q1 point and Q2. But for other items that are ancillary, and if you think about tariffs or other surcharges, we do have those accelerators that can go through there. But it is primarily to 2 points in time where you go and negotiate prices with customers. Robert Coker: And very similar on those -- very similar on the paper can side of the business as well. John Dunigan: Okay. And just for the two sides of the pond, any differences in how those contracts are structured with some of those cost pass-throughs and material clauses? Robert Coker: Nothing materially different. No. John Dunigan: Okay. Appreciate it. And then, Paul, I think I heard you say you're tracking towards and targeting the high end of the PPP program. And you talked about trying to accelerate some of those initiatives now given the current environment. So I'm just wondering if you could update us on how you're thinking about the cadence over the remaining 3-year time frame. Appreciating that. Paul Joachimczyk: Absolutely, John, and great question. If you think about how we're going to end '26 is we're targeting right now right around $50 million. We've already identified $15 million to $20 million of the two site closures that are happening into '27, and we expect '27 to be incrementally higher than '26, kind of you can call it $10 million to $15 million to $20 million higher. As we get into '28, it will be higher than '27 because these are more of those structural investments that we have to make, optimizing the footprint, but also investing in our own facilities to get more productivity out of them and yielding better results. So we expect a steady ramp. You can call it $50 million, call it, $60 million, $70 million, if you wanted to, or you get in that ballpark. But we're targeting in the $180 million range right in the middle of the $150 million to $200 million. Operator: Your next question comes from the line of Hillary Cacanando with Deutsche Bank Securities. Hillary Cacanando: Could you talk about how you're thinking about the OCC cost for the fourth quarter and as we enter 2027? And if OCC remains elevated or moves higher from here, how effectively can you recover that additional inflation under your current pricing mechanism? Robert Coker: Yes. So right now, we're assuming OCC to be flat as we go into the fourth quarter. And if I understand your second part of your question, certainly, we talk through what the current market conditions are. Too soon for me to say, hey, are we going back out again or not? But those are certainly opportunities for us to take a look at as we enter into the new year. I think I had a little bit of difficulty understanding your second half. I hope that answered. Hillary Cacanando: Yes, you did. And then as a follow-up, in terms of your reels business, obviously, sales continue to be strong. As the additional capacity ramps, how are you thinking about growth in 2027? And I was just wondering if you've seen any change in data center demand just given some of the opposition to data center construction that we've seen in recent months? Robert Coker: Yes. As we're looking into next year, we're probably similar type growth rates that we've seen over the last couple of years. And we've added the capacity to support that growth, actually productivity as well to drive efficiencies as we grow. Data centers, it's hard for me to sit here today and say that's even been a big part of what we're seeing here, but just the entire greening of the grid to the Internet expansions into rural areas, et cetera, et cetera, et cetera. So I would say that the data center situation, while obviously, it's happening, there's, it's slower than I think most people have expected. And hey, if it happens in a big way, then that's just more opportunity for us going forward. But we're kind of saying we're going to be keeping the same kind of growth pace consistent with the investments we've made in the business. Operator: Your next question comes from the line of Ghansham Panjabi with Baird. Ghansham Panjabi: Yes. Sorry if I missed this, but for 2026 in total on an EPS basis, what do you estimate price/cost will be for the full year? And are you currently anticipating that you will recover the full extent of that shortfall in 2027, if possible at current levels? Paul Joachimczyk: Yes, Ghansham, that's a great question. So I'd say our price/cost for all 2026, it's really kind of, I'll say, we've been lagging behind in our Consumer business pretty substantially throughout the year. And then our Industrial business is also lagging behind. Unfortunately, some of that cost will be foregone. We will not be able to fully recover that because as you get through that quarter. But as we get through successive quarters, we will be able to fully recover that. As we talk to the industrial side, we're going to be call it, positive price/cost as we go into the end of, like call it, the end of fourth quarter and then starting into the Q1 of '27. And then as Ernest goes through his pricing negotiations for '27, we do expect to recover the inflation and be relatively neutral in the space. But I'd say the '26 was more of a onetime event and do not look forward to that trend to continue in the future. Ghansham Panjabi: Got it. And then as it relates to the variances for 2027, I mean, just high level, so is it basically the cost savings flow through that you kind of went through? I think you called out $50 million of incremental savings and then some of the price/cost recovery. And then as it relates to volumes, all the costs that you're absorbing, certainly, the consumer is going to be absorbing as well. And we already have this issue with affordability and obviously, that's impacted volumes for many different verticals, including yours on the Consumer side. How are you thinking about that dynamic in 2027? I understand the cyclical nature or the weather-dependent nature of some of the businesses that you're exposed to. But as it relates to the affordability compounding, are you, at this point, expecting any sort of deterioration in the Consumer volume business from a -- that standpoint? Robert Coker: Yes, Ghansham, we really aren't. We are seeing trade downs. We do participate fairly heavily in the private label side of things and have noted that shift. But staple food items really aren't concerned about, in fact, if history repeats itself, the tighter the market is or the tighter the consumers' wallet is, we see more benefit and more drive to the center of the store. We have seen that historically in our can business for a long, long time. So we're not building in that, basically, we're saying, look, things are going to kind of normalize itself out and flatten out post the harvest. In fact, there's another side of it says, hey, is there going to be more acreage planted next year, et cetera, et cetera. Right now, we're saying things are going to kind of stay stable. The other side of it is we're seeing some pretty exciting new launches in the paper can side of the business, you'll, hopefully, you'll be consuming your Cheez-Its in the future out of a Sonoco paper can. There's other SKUs that our customers are putting out to differentiate and drive traffic to the center of the store, to the aisles of the snack aisle. And then, of course, I talked about in detail, not in great detail, but what's happening in growth international, Southeast Asia and in Europe on the snacking side of the business. So sorry about the long-winded nature of it, but no, we don't think, if anything, while it's, or consumer becomes more stressed, it's going to potentially drive more positive to the business. Ghansham Panjabi: And just to clarify, you don't see any real offset from GLP usage, et cetera? Robert Coker: No. And again, if there is our portfolio, if you just look at it today, is much different than it was before. So we're less on the confectionery, hard baked goods side of things, QSR than we ever have been. So remains to be seen. But again, growth in international markets on the snack side, and we've got new launches that are rolling through on the snack side here in the U.S. that if there is a GLP impact, hopefully, or the expectation would be that it would mitigate that impact. Operator: Your next question comes from the line of Matt Roberts with Raymond James. Matthew Roberts: Howard, on the 2027 volumes, I might be regurgitating exactly what you said. But when I think about flat year-over-year, you just noted you're not expecting impacts from inflation on staples. We should have an easy comp in Europe given the pack season this year. And in the paper can both international growth and new products. Why should consumer not be up in that scenario? Similarly, on paper, it seems like you're exiting with some strength in URB and reels. Why should that not carry over and be positive in '27? Or are there other categories within industrial paper that are offsetting that? Could be better or worse in '27? Robert Coker: Well, Matt, we're really kind of early in the season in terms of forecasting for next year. So could it be, am I being conservative, I'd rather be that way based off of how optimistic I was going into 2026, not expecting the macro of the war, et cetera, et cetera, et cetera, that has hit us every corner you turn. So if anything, to your, I think to your point, are we being conservative? Possibly, but we'll certainly get deeper into this as we finish out the year and get into early next year. And you guys will be the first to know. Matthew Roberts: Fair enough. And those things weren't in my '26 preview either. So I give you there. And then on Consumers, maybe on the aerosols, you talked about, I think last quarter it was a restock that seemed to show up with strength this quarter. Is that onetime strength in 3Q given higher interest rates, potentially weaker housing outlook? What are you expecting for aerosols in 4Q and 2027 as far as the eye can see? Robert Coker: We're bullish on the aerosol side. We've got a good mix of customers that are doing the right things in the marketplace. So really strong in the third. Is it going to maintain itself at a 5% to 7%? I don't think so, but we're tied to some very good customers that continue to push forward. So we expect it to not step backwards in any material type of way, but should continue to flow through it. Operator: Your next question comes from the line of Anojja Shah with UBS. Anojja Shah: I just wanted to ask about the refi that you did, the $800 million term loan, I may have missed it. Can you talk about the impact to your interest expense next year? Paul Joachimczyk: Yes. The impact to our interest expense is going to be roughly immaterial, call it, $2 million to $3 million in total. That's there, but it does give us a lot more optionality with nothing coming current in the 2027 time period and pushes out all current maturities out into '28 and beyond. Operator: Your next question comes from the line of George Staphos with Bank of America. George Staphos: Appreciate you taking my follow-ons. One short-term, one longer-term question. In terms of the shorter term, Howard and Paul, we normally go into a period now where you have more OCC generation in the fourth quarter into early 1Q. How would you characterize the environment right now? Should we see continued inflation in OCC? Or will generation hopefully level things off? How would you characterize that? Robert Coker: George, I'd say it's kind of normal. At this point in time, we're not expecting and not planning for any increase. As you point out, it is through the holiday season, early part of next year, more generation could we see a decline pure speculation when you talk about OCC, but certainly could happen. The good news is we've got our first full look of all the pricing true-up January 1. So any pullback on OCC would certainly be highly welcome as always for the company. George Staphos: Okay. Understood. The second question, maybe quickly now, maybe more depth in kind of next Analyst Day or maybe the fourth quarter. As you think about the Consumer business, and there have been a lot of questions in terms of the volume growth for the business for Sonoco Consumer on this call, rightly so, if you think about your large categories, has your volume outlook changed at all on a secular basis? I know this year, you've been buffeted by things. But last year, the sardines didn't swim. And so every year, there can be something. As you look out, has the business and your volume outlook changed at all? Has it gotten better? Has it gotten worse? Any thoughts related to the end markets? Because remember with Eviosys and its predecessor, it was frequently an up and down performer volume-wise. Why should it be better on a going-forward basis? Good luck in the quarter. Robert Coker: Yes, sure. In fact, we dug pretty heavily into that going into the acquisition and even coming out. And if you look at Sonoco in our portfolio as recently as 2019, taking out COVID effect, we're probably 5% to 7% related to "weather, agriculture". And then today, we're probably around 15% to 17% in total company. So has there been an increase of exposure? Yes, slightly. But at the same time, we're pretty excited about the markets that we've already talked about, relatively flat in pet for the quarter, but it's been riding on an upward trajectory. Powdered infant formula up. When we talk about seafood, it is in massive demand right now. And our growth really is showing up 10% we saw in the third quarter is on the tuna side of things, which is a global supply chain, less of an issue than some others. So I think if you combine that then with on the can side of the -- paper can side of the business and what we're seeing on the snack side of things, growth there, as we've talked to in pretty solid detail as it relates to Southeast Asia, Europe sold out in South America, new applications showing up here in the U.S. We're extremely bullish about the go forward. And you can have weather issues. I was speaking to a large group of very interested Sonoco folks earlier in the week. And we were supposed to have the most hurricanes in the history of the country in the Atlantic, and we've had one. I don't wish for hurricanes, but it certainly helps our construction and caulking business when it's time to repair rooftops, et cetera. Weather-related is not just agriculture. So it can be a lot of different things. So we're again, very bullish, and we're focused on all of the markets that we serve today, and I think we got a pretty good mix. Operator: We have reached the end of the question-and-answer session. I will now turn the call back to Roger Schrum for closing remarks. Roger Schrum: I certainly want to thank everybody for their participation today and your interest in Sonoco. And as always, if you have any further questions, please don't hesitate to reach out. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management attributed the Consumer segment's underperformance to external factors, specifically drought conditions in Europe and the U.S. that reduced crop yields and subsequent food can demand. - Industrial segment resilience was driven by strong North American execution and 10% year-over-year growth in trade ton sales, supported by 94% mill utilization. - The company faced unprecedented inflationary pressures, with freight costs increasing $17 million and diesel prices reaching record levels of $6.50 per gallon during the quarter. - Strategic alignment of the can businesses into a single $5 billion Global Consumer segment is intended to drive better procurement, R&D, and commercial execution. - Management emphasized that the $829 million non-cash goodwill impairment in Consumer EMEA was a technical accounting adjustment and does not reflect a change in long-term strategy. - The Profitability Performance Plan (PPP) is gaining momentum, delivering $16 million in savings this quarter as part of a broader effort to simplify the organization. - Growth in the wire and cable reel business is being fueled by infrastructure investments and data center construction, offsetting softness in other industrial categories. - Full-year 2026 guidance was lowered to reflect current market volatility, assuming inflationary pressures level out but do not significantly retreat in Q4. - Management expects to achieve positive price/cost recovery in the Industrial segment by early 2027 as recent price increases of $110 per ton fully materialize. - The company is accelerating footprint optimization, including two site closures in Europe expected to generate $15 million to $20 million in savings in 2027. - The Profitability Performance Plan is on track to reach the middle of its $150 million to $200 million three-year target, with a focus on structural investments in 2028. - Consumer volume for Q4 is projected to be relatively flat, with management monitoring potential 'trade down' benefits to private label products in a stressed consumer environment. - Old corrugated container (OCC) costs increased $25 per ton in the quarter and are now 90% higher than the prior year, creating a significant lag in price recovery. - Foreign exchange headwinds, particularly the euro's adjustment against the dollar, reduced the translated value of European earnings. - The company successfully refinanced an $800 million term loan, extending its maturity profile to 2028 and enhancing financial flexibility. - One-time tax payments of $103 million related to 2025 divestitures impacted year-to-date cash flow but are not expected to repeat. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management noted that the range remains wide due to unpredictable macro factors like diesel price spikes and unknown holiday season demand. - Current tracking is toward the midpoint, but the company is maintaining a buffer for potential inflationary surprises. - Management remains committed to the target, citing that 2026 headwinds like the drought are seasonal 'one-time' events rather than structural shifts. - Future growth will be bridged by a steady ramp in PPP savings and positive price/cost dynamics as contracts reset. - Howard Coker stated that the company is not seeing the new competitor in their specific market space and is not concerned about pricing pressure from smaller players. - Management believes larger market participants carry more weight in contract negotiations, insulating Sonoco from this specific risk. - Growth is expected to remain consistent with recent years, driven by the 'greening of the grid' and rural internet expansion. - While data center demand is a factor, management noted its development has been slower than some market expectations, representing future upside.

HARTSVILLE, S.C., Oct. 21, 2026 (GLOBE NEWSWIRE) -- 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. Summary: - Net sales in the third quarter were $2.0 billion. 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 - 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 - 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 Third Quarter 2026 Consolidated Results | | | | (Dollars in millions except per share data) | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | GAAP Results | September 27, 2026 | September 28, 2025 | Change | | September 27, 2026 | September 28, 2025 | Change | Net sales1 | $ | 2,042 | | $ | 2,131 | (4.2)% | | $ | 5,604 | | $ | 5,751 | (2.6)% | Net sales related to discontinued operations | | — | | | — | | | | — | | | 321 | | Operating (loss)/profit1 | | (638 | ) | | 195 | (427.2)% | | | (318 | ) | | 497 | (163.9)% | Operating profit related to discontinued operations | | — | | | — | | | | — | | | 664 | | Net (loss)/income attributable to Sonoco | | (732 | ) | | 123 | (695.6)% | | | (560 | ) | | 671 | (183.4)% | EPS (diluted) | | (7.36 | ) | | 1.23 | (698.4)% | | | (5.63 | ) | | 6.74 | (183.5)% | | | | | | | | | | Three Months Ended | | Nine Months Ended | Non-GAAP Results2 | September 27, 2026 | September 28, 2025 | Change | | September 27, 2026 | September 28, 2025 | Change | Adjusted operating profit1 | $ | 268 | $ | 308 | (13.1)% | | $ | 711 | $ | 768 | (7.4)% | Adjusted EBITDA | | 352 | | 386 | (9.0)% | | | 952 | | 1,052 | (9.5)% | Adjusted net income attributable to Sonoco | | 167 | | 191 | (12.5)% | | | 437 | | 464 | (5.8)% | Adjusted EPS (diluted) | | 1.67 | | 1.92 | (13.0)% | | | 4.38 | | 4.66 | (6.0)% | 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. - 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. Net sales benefited from higher selling prices implemented to offset the effects of inflation and tariffs, which was partially offset by lower volume/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. 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. - 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. "During the third quarter, our businesses faced a combination of external 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. 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. "Our Industrial Paper Packaging segment delivered another strong quarter, with results essentially in line with the second quarter despite a challenging operating 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%. Segment volume/mix was modestly positive, and additional URB pricing realized in September positions us to further offset inflationary 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. 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." 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. Year-to-date operating cash flow includes $103 million of one-time tax payments related to gains on our 2025 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. 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"). 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. Therefore, the Company no longer provides results of the All Other group of businesses. | | Three Months Ended | | Nine Months Ended | Consumer | September 27, 2026 | | September 28, 2025 | Change | | September 27, 2026 | | September 28, 2025 | Change | | | | | | | | | | | Net sales1 | $ | 1,396 | | | $ | 1,438 | | (2.9)% | | $ | 3,735 | | | $ | 3,732 | | 0.1 | % | Segment operating profit1 | $ | 179 | | | $ | 209 | | (14.6)% | | $ | 456 | | | $ | 510 | | (10.6)% | Segment operating profit margin1 | | 12.8 | % | | | 14.5 | % | | | | 12.2 | % | | | 13.7 | % | | Segment Adjusted EBITDA1, 2 | $ | 237 | | | $ | 260 | | (8.8)% | | $ | 620 | | | $ | 663 | | (6.4)% | Segment Adjusted EBITDA margin1, 2 | | 17.0 | % | | | 18.0 | % | | | | 16.6 | % | | | 17.8 | % | - Consumer segment net sales were down (2.9)%, as adverse weather conditions impacted seasonal vegetable harvests in EMEA and Americas reducing metal cans volumes. This headwind more than offset pricing actions implemented to recover inflation and tariff-related costs, along with the negative impact of foreign 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. | | Three Months Ended | | Nine Months Ended | Industrial | September 27, 2026 | | September 28, 2025 | Change | | September 27, 2026 | | September 28, 2025 | Change | | | | | | | | | | | Net sales3 | $ | 646 | | | $ | 614 | | 5.2 | % | | $ | 1,869 | | | $ | 1,819 | | 2.7 | % | Segment operating profit3 | $ | 88 | | | $ | 94 | | (6.2)% | | $ | 247 | | | $ | 256 | | (3.7)% | Segment operating profit margin | | 13.6 | % | | | 15.3 | % | | | | 13.2 | % | | | 14.1 | % | | Segment Adjusted EBITDA2, 3 | $ | 122 | | | $ | 127 | | (4.6)% | | $ | 344 | | | $ | 354 | | (2.9)% | Segment Adjusted EBITDA margin2 | | 18.8 | % | | | 20.8 | % | | | | 18.4 | % | | | 19.4 | % | - Industrial segment net sales increased 5.2% to $646 million, primarily due to successful pricing actions implemented to help offset rising 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. 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%. 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 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. 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. - Cash and cash equivalents were $183 million as of September 27, 2026, compared to $378 million, as of December 31, 2025. - 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. - 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. 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 $175 million, compared to $248 million last year. - 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. - The Company returned $159 million to shareholders through dividends during the first nine months of 2026, compared to $156 million in the prior year period. - On September 25, 2026, Sonoco amended a credit agreement, resulting in the addition of $800 million in new term loan facilities. The Company drew $500 million from the new facilities to refinance an existing $500 million term loan which was to mature in 2028. The Company retained $300 million in delayed-draw term loan capacity, which it can use within 12 months. Guidance(1) Revised Full-Year 2026 - Net Sales: $7.20 billion to $7.40 billion - Adjusted EPS(2): Targeting diluted earnings per share between $5.30 to $5.50 - Adjusted EBITDA(2): Targeting $1.20 billion to $1.25 billion - Cash flow from operating activities: Guidance adjusted to $600 million to $650 million, including the effect of payments of prior year taxes on gains from divestitures and restructuring costs Commenting on Sonoco's outlook, Howard Coker said, "While our third-quarter performance fell short of our expectations, we are taking targeted actions through our Profitability Performance Plan to further reduce costs, improve productivity and address the impact of inflationary pressures. We believe these efforts will better position the Company when market conditions improve. We remain confident in our value-added packaging strategy, our market-leading portfolio of industrial and consumer assets, and the ability of our customer- and quality-focused employees to execute through economic cycles." Joachimczyk added, "In the fourth quarter of 2026, we expect continued strong performance from our Industrial segment, supported by continued robust URB demand in North America. We also anticipate more stable performance from our Consumer segment, driven by continued growth in international paper cans and a more balanced performance in aerosol and food can volumes. Finally, recovering raw material, freight, energy, and other operating costs remains a key priority as we close out 2026 and head into 2027." (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 those 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 to the nearest comparable GAAP measures have been omitted in reliance on the exception provided by Item 10 of Regulation S-K. About Sonoco Sonoco (NYSE: SON) is a Mid-cap Value global packaging company. 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. A Fortune 500 company, 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. Forward-looking Statements Statements included herein that are not historical in nature, are intended to be, and are hereby identified as "forward- looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also "forward-looking statements." Words such as "achieve," "anticipate," "believe," "can," "continue," "continuing," "could," "deliver," "enhance," "expect," "forecast," "focus," "future," "goal," "guidance," "improvement," "likely," "may," "might," "ongoing," "outlook," "plan," "position," "projected," "remain," "seek," "should," "strategy," "target," "will," "would," "working," or the negative thereof, and similar expressions identify forward-looking statements. Forward-looking statements in this communication include statements regarding, but not limited to: the Company's future operating and financial performance, including full year 2026 outlook and the anticipated drivers thereof and cash flow in 2026; the expected benefits of refinancing debt, including the Company's ability to continue executing on its capital allocation priorities while maintaining its investment grade credit ratings; the Company's ability to reduce costs, improve productivity and address the impact of inflationary pressures, including through its profitability performance plan, and the expected benefits thereof; the Company's ability to execute through economic cycles, including as a result of its packaging strategy, its portfolio of industrial and consumer assets, and the ability of its customer- and quality-focused employees; the continued strong performance of the Company's Industrial segment in the fourth quarter of 2026 and the anticipated drivers thereof; the performance of the Company's Consumer segment and the anticipated drivers thereof; the continued focus on recovering raw material, freight, energy and other operating costs; and the effects of the changing macroeconomic and geopolitical environment, including trade policies and tariffs, market conditions, inflation and interest costs on the Company, its supply chain and its customers, and the Company's ability to manage risks related thereto. Such forward-looking statements are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements. Such risks, uncertainties and assumptions include, without limitation, those related to: the Company's ability to execute on its strategy, including with respect to the integration of the Eviosys operations, divestitures, cost management, productivity improvements, restructuring and capital expenditures, and achieve the benefits it expects therefrom; conditions in the credit markets; the ability to retain key employees and successfully integrate Eviosys; the ability to realize estimated cost savings, synergies or other anticipated benefits of the Eviosys acquisition, or that such benefits may take longer to realize than expected; diversion of management's attention; the potential impact of the consummation of the Eviosys acquisition on relationships with clients and other third parties; lower-than-projected financial performance of the Company's European business, including as a result of loss or reduction in business from key customers, changes in our pricing model, or adverse changes in the macroeconomic or competitive environment in European markets; risks related to the impairment of goodwill and other intangibles; the operation of new manufacturing capabilities; the Company's ability to achieve anticipated cost and energy savings; the availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariff or other trade policies or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflicts between Russia and Ukraine and in the Middle East, the potential escalation of tensions between China and Taiwan and recent events in Venezuela), and the Company's ability to continue to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks; the costs of labor; the effects of inflation, changes related to tariffs or other trade policies and global regulations, as well as the overall uncertainty surrounding international trade relations; fluctuations in consumer demand, volume softness, and other macroeconomic factors on the Company and the industries in which it operates and that it serves; the impact of changing laws and regulations, in the United States, on the Company; the Company's ability to meet its environmental, sustainability and similar goals and other social and governance goals, including challenges in implementation thereof; natural disasters, severe weather events, and other unexpected disruptions to facility operations; and the other risks, uncertainties and assumptions discussed in the Company's filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q, particularly under the heading "Risk Factors." The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur. References to our Website Address References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission's rules or the New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our website by reference into this release. Earnings Conference Call Webcast Sonoco's management will host a conference call to discuss its third quarter 2026 results on Thursday, October 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: | Thursday, October 22, 2026, at 8:00 a.m. Eastern Time | Audience | To listen via telephone, please register in advance at: Dial-In: | https://events.q4inc.com/analyst/818434126?pwd=xd1mxKQr | | 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/616781198 Contact Information: Roger Schrum Head of Investor Relations and Communications [email protected] 843-339-6018 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars and shares in thousands except per share data) | | | | | | | | Three Months Ended | | Nine Months Ended | | September 27, 2026 | | September 28, 2025 | | September 27, 2026 | | September 28, 2025 Net sales | | $ | 2,041,575 | | | $ | 2,131,108 | | | $ | 5,603,502 | | | $ | 5,750,777 | Cost of sales | | | 1,636,255 | | | | 1,663,757 | | | | 4,460,177 | | | | 4,523,462 | Gross profit | | | 405,320 | | | | 467,351 | | | | 1,143,325 | | | | 1,227,315 | Selling, general and administrative expenses | | | 186,841 | | | | 220,966 | | | | 588,626 | | | | 648,804 | Restructuring/Asset impairment charges, net | | | 856,435 | | | | 48,388 | | | | 873,501 | | | | 71,721 | (Loss)/Gain on divestiture of business | | | — | | | | (3,031 | ) | | | 775 | | | | (9,297 | ) Operating (loss)/profit | | | (637,956 | ) | | | 194,966 | | | | (318,027 | ) | | | 497,493 | Non-operating pension costs | | | 2,749 | | | | 3,054 | | | | 8,165 | | | | 9,157 | Interest expense | | | 46,665 | | | | 61,243 | | | | 136,637 | | | | 181,637 | Interest income | | | 5,223 | | | | 4,634 | | | | 17,938 | | | | 16,104 | Other expense, net | | | (8,271 | ) | | | (7,541 | ) | | | (26,770 | ) | | | (20,617 | ) (Loss)/Income from continuing operations before income taxes | | | (690,418 | ) | | | 127,762 | | | | (471,661 | ) | | | 302,186 | Provision for income taxes | | | 44,138 | | | | 7,717 | | | | 93,199 | | | | 68,364 | (Loss)/Income before equity in earnings of affiliates | | | (734,556 | ) | | | 120,045 | | | | (564,860 | ) | | | 233,822 | Equity in earnings of affiliates, net of tax | | | 2,689 | | | | 3,020 | | | | 5,642 | | | | 7,211 | Net (loss)/income from continuing operations | | | (731,867 | ) | | | 123,065 | | | | (559,218 | ) | | | 241,033 | Net income from discontinued operations | | | — | | | | — | | | | — | | | | 429,720 | Net (loss)/income | | | (731,867 | ) | | | 123,065 | | | | (559,218 | ) | | | 670,753 | Net (income)/loss from continuing operations attributable to noncontrolling interests | | | (235 | ) | | | (147 | ) | | | (389 | ) | | | 17 | Net (loss)/income attributable to Sonoco | | $ | (732,102 | ) | | $ | 122,918 | | | $ | (559,607 | ) | | $ | 670,770 | | | | | | | | | Weighted average common shares outstanding – diluted | | | 99,502 | | | | 99,648 | | | | 99,432 | | | | 99,519 | | | | | | | | | Diluted (loss)/earnings from continuing operations per common share | | $ | (7.36 | ) | | $ | 1.23 | | | $ | (5.63 | ) | | $ | 2.42 | Diluted earnings from discontinued operations per common share | | | — | | | | — | | | | — | | | | 4.32 | Diluted (loss)/earnings attributable to Sonoco per common share | | $ | (7.36 | ) | | $ | 1.23 | | | $ | (5.63 | ) | | $ | 6.74 | Dividends per common share | | $ | 0.54 | | | $ | 0.53 | | | $ | 1.61 | | | $ | 1.58 | CONDENSED STATEMENTS OF INCOME FOR DISCONTINUED OPERATIONS (Unaudited) (Dollars and shares in thousands except per share data) | | | | Three Months Ended | | Nine Months Ended | September 28, 2025 | | September 28, 2025 | | | Net sales | $ | — | | $ | 320,678 Cost of sales | | — | | | 250,854 Gross profit | | — | | | 69,824 Selling, general, and administrative expenses | | — | | | 31,607 Restructuring/Asset impairment charges, net | | — | | | 426 Gain on divestiture of business | | — | | | 625,773 Operating profit | | — | | | 663,564 Other expense, net | | — | | | 182 Interest expense | | — | | | 24,911 Interest income | | — | | | 281 Income from discontinued operations before income taxes | | — | | | 638,752 Provision for income taxes | | — | | | 209,032 Net income from discontinued operations | | — | | | 429,720 Net income from discontinued operations attributable to noncontrolling interests | | — | | | — Net income attributable to discontinued operations | $ | — | | $ | 429,720 Weighted average common shares outstanding – diluted | | 99,648 | | | 99,519 Diluted earnings from discontinued operations per common share | $ | — | | $ | 4.32 FINANCIAL SEGMENT INFORMATION (Unaudited) (Dollars in thousands) | | | | Three Months Ended | | Nine Months Ended | | September 27, 2026 | | September 28, 2025 | | September 27, 2026 | | September 28, 2025 Net sales: | | | | | | | | Consumer Packaging | $ | 1,396,012 | | | $ | 1,438,246 | | | $ | 3,734,926 | | | $ | 3,731,872 | | Industrial Paper Packaging | | 645,563 | | | | 613,611 | | | | 1,868,576 | | | | 1,818,804 | | Total reportable segments | | 2,041,575 | | | | 2,051,857 | | | | 5,603,502 | | | | 5,550,676 | | All Other | | — | | | | 79,251 | | | | — | | | | 200,101 | | Net sales | $ | 2,041,575 | | | $ | 2,131,108 | | | $ | 5,603,502 | | | $ | 5,750,777 | | | | | | | | | | | | | | | | Operating profit: | | | | | | | | Consumer Packaging | $ | 178,563 | | | $ | 208,985 | | | $ | 455,917 | | | $ | 510,109 | | Industrial Paper Packaging | | 87,973 | | | | 93,773 | | | | 246,598 | | | | 256,038 | | Segment operating profit | | 266,536 | | | | 302,758 | | | | 702,515 | | | | 766,147 | | All Other | | — | | | | 14,386 | | | | — | | | | 29,511 | | Corporate | | | | | | | | Restructuring/Asset impairment charges, net | | (856,435 | ) | | | (48,388 | ) | | | (873,501 | ) | | | (71,721 | ) | Amortization of acquisition intangibles | | (45,633 | ) | | | (49,034 | ) | | | (135,523 | ) | | | (135,188 | ) | Gain/(Loss) on divestiture of business | | — | | | | (3,031 | ) | | | 775 | | | | (9,297 | ) | Acquisition, integration, and divestiture-related costs | | (2,161 | ) | | | (9,318 | ) | | | (10,582 | ) | | | (47,745 | ) | Other operating charges, net | | (263 | ) | | | (12,407 | ) | | | (1,711 | ) | | | (34,214 | ) | Operating (loss)/profit | $ | (637,956 | ) | | $ | 194,966 | | | $ | (318,027 | ) | | $ | 497,493 | 2025 consolidated "net sales," "operating profit," and Consumer Packaging "segment operating profit" do not include results of the Company's Thermoformed and Flexibles Packaging business and global Trident business (collectively, "TFP"), which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) | | Nine Months Ended | September 27, 2026 | | September 28, 2025 | | | Net (loss)/income | $ | (559,218 | ) | | $ | 670,753 | Net loss/(gain) on divestiture of business, disposition of assets, and asset impairments | | 842,991 | | | | (601,304 | ) Depreciation and amortization | | 390,982 | | | | 382,623 | Pension and postretirement plan contributions, net of non-cash expense | | (5,309 | ) | | | (3,589 | ) Changes in working capital | | (304,721 | ) | | | (299,650 | ) Changes in tax accounts | | (93,987 | ) | | | 127,412 | Other operating activity | | (53,190 | ) | | | 651 | Net cash provided by operating activities | | 217,548 | | | | 276,896 | | | | Purchases of property, plant and equipment, net | | (174,905 | ) | | | (248,251 | ) Proceeds from the sale of business, net1 | | (13,076 | ) | | | 1,814,899 | Cost of acquisitions, net of cash acquired2 | | — | | | | 16,528 | Net debt repayments | | (50,598 | ) | | | (1,938,409 | ) Cash dividends | | (159,182 | ) | | | (155,767 | ) Payments for share repurchases | | (7,192 | ) | | | (10,580 | ) Other (outflow)/inflow, including effects of exchange rates on cash | | (7,892 | ) | | | 47,490 | Net decrease in cash and cash equivalents | | (195,297 | ) | | | (197,194 | ) Cash and cash equivalents at beginning of period | | 378,398 | | | | 443,060 | Cash and cash equivalents at end of period | $ | 183,101 | | | $ | 245,866 | 12026 includes payments of $15,211 and $1,865 to the buyers of TFP and ThermoSafe, respectively, for final net working capital settlements on these 2025 divestitures. 22025 includes a cash receipt of $16,528 for the final net working capital settlement related to the 2024 acquisition of Eviosys. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) | September 27, 2026 | | December 31, 2025 Assets | | | Current Assets: | | | | Cash and cash equivalents | $ | 183,101 | | $ | 378,398 | Trade accounts receivable, net of allowances | | 1,117,958 | | | 842,810 | Other receivables | | 152,736 | | | 178,755 | Inventories, net | | 1,204,570 | | | 1,121,009 | Prepaid expenses | | 149,661 | | | 125,352 | | Total Current Assets | | 2,808,026 | | | 2,646,324 Property, plant and equipment, net | | 2,658,234 | | | 2,797,800 Goodwill | | 1,646,258 | | | 2,511,611 Other intangible assets, net | | 2,485,874 | | | 2,683,474 Right of use asset-operating leases | | 307,740 | | | 307,450 Deferred income taxes and other assets | | 228,809 | | | 215,675 | | Total Assets | $ | 10,134,941 | | $ | 11,162,334 Liabilities and Equity | | | Current Liabilities: | | | | Payable to suppliers, accrued expenses and other payables | $ | 1,803,816 | | $ | 1,861,904 | Notes payable and current portion of long-term debt | | 510,041 | | | 537,952 | Accrued taxes | | 69,218 | | | 128,821 | | Total Current Liabilities | | 2,383,075 | | | 2,528,677 Long-term debt, net of current portion | | 3,781,625 | | | 3,788,973 Noncurrent operating lease liabilities | | 263,779 | | | 263,192 Pension and other postretirement benefits | | 166,115 | | | 177,976 Deferred income taxes and other liabilities | | 721,084 | | | 771,684 | | Total Liabilities | | 7,315,678 | | | 7,530,502 | | Total Equity | | 2,819,263 | | | 3,631,832 | | Total Liabilities and Equity | $ | 10,134,941 | | $ | 11,162,334 NON-GAAP FINANCIAL MEASURES The Company's results, determined in accordance with U.S. generally accepted accounting principles, are referred to as "as reported" or "GAAP" results. The Company uses certain financial performance measures, both internally and externally, that are not in conformity with GAAP (referred to as "non-GAAP financial measures") to assess and communicate the financial performance of the Company. These non-GAAP financial measures, which are identified using the term "Adjusted" (for example, "Adjusted Operating Profit," "Adjusted Net Income Attributable to Sonoco," and "Adjusted Diluted EPS"), reflect adjustments to the Company's GAAP operating results to exclude amounts, including the associated tax effects where applicable, relating to: - restructuring/asset impairment charges1; - acquisition, integration and divestiture-related costs; - gains or losses from the divestiture of businesses; - losses from the early extinguishment of debt; - non-operating pension costs; - amortization expense on acquisition intangibles; - changes in last-in, first-out ("LIFO") inventory reserves; - certain income tax events and adjustments; - derivative gains/losses; - other non-operating income and losses; and - certain other items, if any. 1Restructuring and restructuring-related asset impairment charges are a recurring item as the Company's restructuring programs usually require several years to fully implement, and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, the inherent imprecision in the estimates used to recognize the impairment of assets, and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur. The Company's management believes the exclusion of the amounts related to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business. In addition to the "Adjusted" results described above, the Company also uses Adjusted EBITDA, Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin, and Net Debt. Adjusted EBITDA is defined as net income excluding the following: interest expense; interest income; provision for income taxes; depreciation and amortization expense; non-operating pension costs; net income/loss attributable to noncontrolling interests; restructuring/asset impairment charges; changes in LIFO inventory reserves; gains/losses from the divestiture of businesses; acquisition, integration and divestiture-related costs; other income; derivative gains/losses; and other non-GAAP adjustments, if any, that may arise from time to time. Segment Adjusted EBITDA is defined as segment operating profit plus depreciation and amortization expense and equity in earnings of affiliates, net of tax. Segment Adjusted EBITDA Margin is defined as Segment Adjusted EBITDA divided by segment net sales. Net Debt is defined as the total of the Company's short and long-term debt less cash and cash equivalents. Segment Adjusted EBITDA is reconciled to the closest GAAP measure of segment profitability, segment operating profit as the Company does not calculate net income by segment. Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with Accounting Standards Codification 280 - "Segment Reporting," as prescribed by the Financial Accounting Standards Board. Segment results, which are reviewed by the Company's management to evaluate segment performance, do not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in LIFO inventory reserves; gains/losses from the sale of businesses; gains/losses from derivatives; or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. Accordingly, the term "segment operating profit" is defined as the segment's portion of "operating profit" excluding those items. All other general corporate expenses have been allocated as operating costs to each of the Company's reportable segments, except for costs related to discontinued operations. The Company's non-GAAP financial measures are not calculated in accordance with, nor are they an alternative for, measures conforming to GAAP, and they may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. The Company presents these non-GAAP financial measures to provide investors with information to evaluate Sonoco's operating results in a manner similar to how management evaluates business performance. The Company consistently applies its non-GAAP financial measures presented herein and uses them for internal planning and forecasting purposes, to evaluate its ongoing operations, and to evaluate the ultimate performance of management and each business unit against plans/forecasts. In addition, these same non-GAAP financial measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community. Material limitations associated with the use of such measures include that they do not reflect all period costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, the calculations of these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently. To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in evaluating the Company's results to review both GAAP information, which includes all of the items impacting financial results, and the related non-GAAP financial measures that exclude certain elements, as described above. Further, Sonoco management does not, nor does it suggest that investors should, consider any non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever reviewing a non-GAAP financial measure, investors are encouraged to review and consider the related reconciliation to understand how it differs from the most directly comparable GAAP measure. References to 2025 consolidated "adjusted operating profit" and "segment adjusted EBITDA" in the following tables 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. QUARTERLY RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES The following tables reconcile the Company's non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company's Condensed Consolidated Statements of Income for the three-month periods ended September 27, 2026 and September 28, 2025. Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS | For the three-month period ended September 27, 2026 Dollars in thousands, except per share data | Operating (Loss)/Profit | (Loss)/Income from Continuing Operations Before Income Taxes | Provision for Income Taxes | Net (Loss)/Income Attributable to Sonoco | Diluted EPS As Reported (GAAP) | $ | (637,956 | ) | $ | (690,418 | ) | $ | 44,138 | | $ | (732,102 | ) | $ | (7.36 | ) Acquisition, integration and divestiture-related costs1 | | 2,161 | | | 2,161 | | | 318 | | | 1,843 | | | 0.01 | Amortization of acquisition intangibles | | 45,633 | | | 45,633 | | | 9,938 | | | 35,695 | | | 0.36 | Restructuring/Asset impairment charges, net2 | | 856,435 | | | 856,435 | | | 6,839 | | | 849,694 | | | 8.54 | Non-operating pension costs | | — | | | 2,749 | | | 712 | | | 2,037 | | | 0.02 | Net gains from derivatives | | (106 | ) | | (106 | ) | | (26 | ) | | (80 | ) | | — | Other adjustments3 | | 1,874 | | | 1,874 | | | (8,237 | ) | | 10,111 | | | 0.10 | Total adjustments | | 905,997 | | | 908,746 | | | 9,544 | | | 899,300 | | | 9.03 | Adjusted | $ | 268,041 | | $ | 218,328 | | $ | 53,682 | | $ | 167,198 | | $ | 1.67 | Due to rounding, individual items may not sum appropriately. | | | 1 Acquisition, integration and divestiture-related costs relate primarily to the Company's December 2024 acquisition of Eviosys. 2 Restructuring/Asset impairment charges, net, primarily reflect total goodwill impairment charges of $828,875 recognized during the third quarter of 2026, including $802,000 and $26,875 for the Consumer Packaging EMEA/APAC and Global Paper Products APAC reporting units, respectively. 3 Other adjustments include discrete tax items primarily related to provision-to-return adjustments for the TFP and ThermoSafe divestitures and a retroactive U.S. tax election. | For the three-month period ended September 28, 2025 Dollars in thousands, except per share data | Operating Profit | Income from Continuing Operations Before Income Taxes | Provision for Income Taxes | Net Income Attributable to Sonoco | Diluted EPS As Reported (GAAP) | $ | 194,966 | $ | 127,762 | $ | 7,717 | | $ | 122,918 | | $ | 1.23 | Acquisition, integration and divestiture-related costs1 | | 9,318 | | 9,318 | | 2,377 | | | 6,941 | | | 0.07 | Amortization of acquisition intangibles | | 49,034 | | 49,034 | | 10,581 | | | 38,453 | | | 0.39 | Restructuring/Asset impairment charges, net | | 48,388 | | 48,388 | | 11,117 | | | 37,221 | | | 0.37 | Loss/(Gain) on divestiture of business2 | | 3,031 | | 3,031 | | 27,569 | | | (24,538 | ) | | (0.25 | ) Non-operating pension costs | | — | | 3,054 | | 631 | | | 2,423 | | | 0.02 | Net losses from derivatives | | 2,035 | | 2,035 | | 502 | | | 1,533 | | | 0.02 | Other adjustments3 | | 1,568 | | 1,568 | | (4,652 | ) | | 6,220 | | | 0.07 | Total adjustments | | 113,374 | | 116,428 | | 48,125 | | | 68,253 | | | 0.69 | Adjusted | $ | 308,340 | $ | 244,190 | $ | 55,842 | | $ | 191,171 | | $ | 1.92 | Due to rounding, individual items may not sum appropriately. | | | 1 Acquisition, integration and divestiture-related costs relate primarily to the Company's December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP. 2 Loss/(Gain) on divestiture of business includes the recognition of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale. 3 Other adjustments include an adjustment to deferred taxes from the post-acquisition restructuring of the partitions business, provision-to-return adjustments related to the divested TFP business, and an increase in the valuation allowance on foreign tax credits. Adjusted EBITDA1 | | | Three Months Ended Dollars in thousands | September 27, 2026 | September 28, 2025 Net (loss)/income attributable to Sonoco | $ | (732,102 | ) | $ | 122,918 | Adjustments: | | Interest expense | | 46,665 | | | 61,243 | Interest income | | (5,223 | ) | | (4,634 | ) Provision for income taxes | | 44,138 | | | 7,717 | Depreciation and amortization | | 134,857 | | | 131,656 | Non-operating pension costs | | 2,749 | | | 3,054 | Net income attributable to noncontrolling interests | | 235 | | | 147 | Restructuring/Asset impairment charges, net | | 856,435 | | | 48,388 | Loss on divestiture of business | | — | | | 3,031 | Acquisition, integration and divestiture-related costs | | 2,161 | | | 9,318 | Net (gain)/loss from derivatives | | (106 | ) | | 2,035 | Other non-GAAP adjustments | | 1,874 | | | 1,568 | Adjusted EBITDA | $ | 351,683 | | $ | 386,441 | 1 For the three-month period ended September 28, 2025, adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations. Segment Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation For the Three Months Ended September 27, 2026 | | | | | | | Dollars in thousands | Consumer | Industrial | Corporate | Total Segment and Total Operating Profit/(Loss)1 | $ | 178,563 | | $ | 87,973 | | $ | (904,492 | ) | $ | (637,956 | ) Adjustments: | | | | Depreciation and amortization2 | | 58,048 | | | 31,176 | | | 45,633 | | | 134,857 | Other expense, net3 | | — | | | — | | | (8,271 | ) | | (8,271 | ) Equity in earnings of affiliates, net of tax | | 217 | | | 2,472 | | | — | | | 2,689 | Restructuring/Asset impairment charges, net4 | | — | | | — | | | 856,435 | | | 856,435 | Acquisition, integration and divestiture-related costs5 | | — | | | — | | | 2,161 | | | 2,161 | Net gain from derivatives6 | | — | | | — | | | (106 | ) | | (106 | ) Other non-GAAP adjustments | | — | | | — | | | 1,874 | | | 1,874 | Segment Adjusted EBITDA | $ | 236,828 | | $ | 121,621 | | $ | (6,766 | ) | $ | 351,683 | | | | | Net Sales | $ | 1,396,012 | | $ | 645,563 | | | Segment Operating Profit Margin | | 12.8 | % | | 13.6 | % | | Segment Adjusted EBITDA Margin | | 17.0 | % | | 18.8 | % | | 1As previously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment. The Company no longer reports the results of any of its businesses in All Other. 2Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $40,576 and the Industrial segment of $5,057. 3These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer segment. 4Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $835,670 and the Industrial segment of $20,196. 5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $433 and the Industrial segment of $7. 6Included in Corporate are net gains from derivatives associated with the Consumer segment of $3 and the Industrial segment of $(109). Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation For the Three Months Ended September 28, 2025 Excludes results of discontinued operations | | | | | Dollars in thousands | Consumer | Industrial | All Other | Corporate | Total Segment and Total Operating Profit | $ | 208,985 | | $ | 93,773 | | $ | 14,386 | | $ | (122,178 | ) | $ | 194,966 | Adjustments: | | | | | Depreciation and amortization1 | | 50,419 | | | 30,896 | | | 1,307 | | | 49,034 | | | 131,656 | Other expense, net2 | | — | | | — | | | — | | | (7,541 | ) | | (7,541 | ) Equity in earnings of affiliates, net of tax | | 190 | | | 2,830 | | | — | | | — | | | 3,020 | Restructuring/Asset impairment charges, net3 | | — | | | — | | | — | | | 48,388 | | | 48,388 | Acquisition, integration and divestiture-related costs4 | | — | | | — | | | — | | | 9,318 | | | 9,318 | Loss on divestiture of business5 | | — | | | — | | | — | | | 3,031 | | | 3,031 | Net loss from derivatives6 | | — | | | — | | | — | | | 2,035 | | | 2,035 | Other non-GAAP adjustments | | — | | | — | | | — | | | 1,568 | | | 1,568 | Segment Adjusted EBITDA | $ | 259,594 | | $ | 127,499 | | $ | 15,693 | | $ | (16,345 | ) | $ | 386,441 | | | | | | Net Sales | $ | 1,438,246 | | $ | 613,611 | | $ | 79,251 | | | Segment Operating Profit Margin | | 14.5 | % | | 15.3 | % | | 18.2 | % | | Segment Adjusted EBITDA Margin | | 18.0 | % | | 20.8 | % | | 19.8 | % | | 1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $43,397, the Industrial segment of $5,485, and the All Other group of businesses of $152. 2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer segment. 3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $35,027 and the Industrial segment of $11,181. 4Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $1,293 and the Industrial segment of $97. 5Included in Corporate is a loss on divestiture of business of $31 associated with the Industrial segment related to the sale of a recycling operation in Asheville, North Carolina, and a $3,000 charge related to the divestiture of ThermoSafe, previously part of the All Other group of businesses. 6Included in Corporate are net losses from derivatives associated with the Consumer segment of $196, the Industrial segment of $1,760, and the All Other group of businesses of $79. YEAR-TO-DATE RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES The following tables reconcile the Company's non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company's Condensed Consolidated Statements of Income for the nine-month periods ended September 27, 2026 and September 28, 2025. Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS | For the nine-month period ended September 27, 2026 Dollars in thousands, except per share data | Operating (Loss)/Profit | (Loss)/Income from Continuing Operations Before Income Taxes | Provision for Income Taxes | Net (Loss)/Income Attributable to Sonoco | Diluted EPS As Reported (GAAP) | $ | (318,027 | ) | $ | (471,661 | ) | $ | 93,199 | | $ | (559,607 | ) | $ | (5.63 | ) Acquisition, integration and divestiture-related costs1 | | 10,582 | | | 10,582 | | | 1,665 | | | 8,917 | | | 0.09 | Changes in LIFO inventory reserves | | 5,521 | | | 5,521 | | | 1,367 | | | 4,154 | | | 0.04 | Amortization of acquisition intangibles | | 135,523 | | | 135,523 | | | 29,738 | | | 105,785 | | | 1.06 | Restructuring/Asset impairment charges, net2 | | 873,501 | | | 873,501 | | | 10,344 | | | 863,267 | | | 8.68 | Gain on divestiture of business, net3 | | (775 | ) | | (775 | ) | | (188 | ) | | (587 | ) | | (0.01 | ) Other expense, net4 | | — | | | 6,592 | | | — | | | 6,592 | | | 0.07 | Non-operating pension costs | | — | | | 8,165 | | | 2,106 | | | 6,059 | | | 0.06 | Net losses from derivatives | | 61 | | | 61 | | | 15 | | | 46 | | | — | Other adjustments | | 4,901 | | | 4,901 | | | 2,450 | | | 2,451 | | | 0.02 | Total adjustments | | 1,029,314 | | | 1,044,071 | | | 47,497 | | | 996,684 | | | 10.01 | Adjusted | $ | 711,287 | | $ | 572,410 | | $ | 140,696 | | $ | 437,077 | | $ | 4.38 | Due to rounding, individual items may not sum appropriately. | | | 1 Acquisition, integration and divestiture-related costs relate primarily to the Company's December 2024 acquisition of Eviosys and the November 2025 divestiture of ThermoSafe. 2 Restructuring/Asset impairment charges, net, primarily reflect total goodwill impairment charges of $828,875 recognized during the third quarter of 2026, including $802,000 and $26,875 for the Consumer Packaging EMEA/APAC and Global Paper Products APAC reporting units, respectively. 3 Gain on divestiture of business, net reflects the gain of $2,640 from the sale of a recycling operation in Savannah, Georgia, partially offset by a charge of $1,865 from the final net working capital settlement related to the November 2025 divestiture of ThermoSafe. 4 Amount relates to certain pre-acquisition liabilities related to the Sonoco Metal Packaging EMEA business. | For the nine-month period ended September 28, 2025 Dollars in thousands, except per share data | Operating Profit | Income from Continuing Operations Before Income Taxes | Provision for Income Taxes | Net Income Attributable to Sonoco | Diluted EPS As Reported (GAAP)1 | $ | 497,493 | $ | 302,186 | $ | 68,364 | | $ | 670,770 | | $ | 6.74 | Acquisition, integration and divestiture-related costs2 | | 47,745 | | 47,745 | | 11,134 | | | 46,277 | | | 0.47 | Changes in LIFO inventory reserves | | 1,755 | | 1,755 | | 433 | | | 1,322 | | | 0.01 | Amortization of acquisition intangibles | | 135,188 | | 135,188 | | 29,586 | | | 105,389 | | | 1.06 | Restructuring/Asset impairment charges, net | | 71,721 | | 71,721 | | 16,514 | | | 55,109 | | | 0.55 | Loss/(Gain) on divestiture of business3 | | 9,297 | | 9,297 | | 28,455 | | | (443,706 | ) | | (4.46 | ) Non-operating pension costs | | — | | 9,157 | | 2,190 | | | 6,967 | | | 0.07 | Net losses from derivatives | | 1,240 | | 1,240 | | 306 | | | 934 | | | 0.01 | Other adjustments4 | | 3,562 | | 3,562 | | (14,456 | ) | | 21,064 | | | 0.21 | Total adjustments | | 270,508 | | 279,665 | | 74,162 | | | (206,644 | ) | | (2.08 | ) Adjusted | $ | 768,001 | $ | 581,851 | $ | 142,526 | | $ | 464,126 | | $ | 4.66 | Due to rounding, individual items may not sum appropriately. | | | 1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $663,564, $638,752, and $209,032, respectively. 2 Acquisition, integration and divestiture-related costs relate primarily to the Company's December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP. 3 Loss/(Gain) on divestiture of business primarily consists of the gain on the sale of TFP, included in "Net income from discontinued operations" in the Company's Condensed Consolidated Statements of Income, and the recognition of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale. 4 Other adjustments include discrete tax items primarily related to tax rate changes, an adjustment to deferred taxes from post-acquisition restructuring of the partitions business, provision-to-return adjustments related to the divested TFP business, and an increase in the valuation allowance on foreign tax credits. Adjusted EBITDA1 | | | Nine Months Ended Dollars in thousands | September 27, 2026 | September 28, 2025 | | Net (loss)/income attributable to Sonoco | $ | (559,607 | ) | $ | 670,770 | Adjustments: | | Interest expense | | 136,637 | | | 206,548 | Interest income | | (17,938 | ) | | (16,385 | ) Provision for income taxes | | 93,199 | | | 277,396 | Depreciation and amortization | | 390,982 | | | 382,623 | Non-operating pension costs | | 8,165 | | | 9,157 | Non-operating other expense | | 6,592 | | | — | Net income/(loss) attributable to noncontrolling interests | | 389 | | | (17 | ) Restructuring/Asset impairment charges, net | | 873,501 | | | 72,147 | Changes in LIFO inventory reserves | | 5,521 | | | 1,755 | Gain on divestiture of business | | (775 | ) | | (616,476 | ) Acquisition, integration and divestiture-related costs | | 10,582 | | | 60,421 | Net loss from derivatives | | 61 | | | 1,240 | Other non-GAAP adjustments | | 4,901 | | | 2,949 | Adjusted EBITDA | $ | 952,210 | | $ | 1,052,128 | | | Net Sales | $ | 5,603,502 | | $ | 5,750,777 | Net sales related to discontinued operations | $ | — | | $ | 320,678 | 1For the nine-month period ended September 28, 2025, Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations. The following tables reconcile segment operating profit, the closest GAAP measure of profitability, to segment adjusted EBITDA. Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation For the Nine Months Ended September 27, 2026 Excludes results of discontinued operations Dollars in thousands | Consumer | Industrial | Corporate | Total Segment and Total Operating Profit/(Loss)1 | $ | 455,917 | | $ | 246,598 | | $ | (1,020,542 | ) | $ | (318,027 | ) Adjustments: | | | | Depreciation and amortization2 | | 163,673 | | | 91,786 | | | 135,523 | | | 390,982 | Other expense, net3 | | — | | | — | | | (20,178 | ) | | (20,178 | ) Equity in earnings of affiliates, net of tax | | 491 | | | 5,151 | | | — | | | 5,642 | Restructuring/Asset impairment charges, net4 | | — | | | — | | | 873,501 | | | 873,501 | Changes in LIFO inventory reserves5 | | — | | | — | | | 5,521 | | | 5,521 | Acquisition, integration and divestiture-related costs6 | | — | | | — | | | 10,582 | | | 10,582 | Gain on divestiture of business7 | | — | | | — | | | (775 | ) | | (775 | ) Net loss from derivatives8 | | — | | | — | | | 61 | | | 61 | Other non-GAAP adjustments | | — | | | — | | | 4,901 | | | 4,901 | Segment Adjusted EBITDA | $ | 620,081 | | $ | 343,535 | | $ | (11,406 | ) | $ | 952,210 | | | | | Net Sales | $ | 3,734,926 | | $ | 1,868,576 | | | Segment Operating Profit Margin | | 12.2 | % | | 13.2 | % | | Segment Adjusted EBITDA Margin | | 16.6 | % | | 18.4 | % | | 1 As previously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment. The Company no longer reports the results of any of its businesses in All Other. 2 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $120,451 and the Industrial segment of $15,072. 3 These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle primarily within the Consumer segment. 4 Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $844,607 and the Industrial segment of $27,392. 5 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $4,996 and the Industrial segment of $525. 6 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $3,707 and the Industrial segment of $159. 7 Included in Corporate is a gain of $2,640 from the sale of a recycling facility in Savannah, Georgia, part of the Industrial segment, partially offset by a charge of $1,865 from the final net working capital settlement related to the divestiture of ThermoSafe, previously part of the All Other group of businesses. 8 Included in Corporate are net losses from derivatives associated with the Consumer segment of $7 and the Industrial segment of $54. Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation For the Nine Months Ended September 28, 2025 Excludes results of discontinued operations Dollars in thousands | Consumer | Industrial | All Other | Corporate | Total Segment and Total Operating Profit | $ | 510,109 | | $ | 256,038 | | $ | 29,511 | | $ | (298,165 | ) | $ | 497,493 | Adjustments: | | | | | Depreciation and amortization1 | | 152,175 | | | 90,764 | | | 4,807 | | | 135,188 | | | 382,934 | Other expense, net2 | | — | | | — | | | — | | | (20,617 | ) | | (20,617 | ) Equity in earnings of affiliates, net of tax | | 309 | | | 6,902 | | | — | | | — | | | 7,211 | Restructuring/Asset impairment charges, net3 | | — | | | — | | | — | | | 71,721 | | | 71,721 | Changes in LIFO inventory reserves4 | | — | | | — | | | — | | | 1,755 | | | 1,755 | Acquisition, integration and divestiture-related costs5 | | — | | | — | | | — | | | 47,745 | | | 47,745 | Loss on divestiture of business6 | | — | | | — | | | — | | | 9,297 | | | 9,297 | Net loss from derivatives7 | | — | | | — | | | — | | | 1,240 | | | 1,240 | Other non-GAAP adjustments | | — | | | — | | | — | | | 3,562 | | | 3,562 | Segment Adjusted EBITDA | $ | 662,593 | | $ | 353,704 | | $ | 34,318 | | $ | (48,274 | ) | $ | 1,002,341 | | | | | | Net Sales | $ | 3,731,872 | | $ | 1,818,804 | | $ | 200,101 | | | Segment Operating Profit Margin | | 13.7 | % | | 14.1 | % | | 14.7 | % | | Segment Adjusted EBITDA Margin | | 17.8 | % | | 19.4 | % | | 17.2 | % | | 1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $118,232, the Industrial segment of $16,405, and All Other of $551. 2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle primarily within the Consumer segment. 3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $37,736, the Industrial segment of $31,907, and All Other of $10. 4Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $1,755. 5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $22,502 and the Industrial segment of $528. 6Included in Corporate are net losses from the divestiture of businesses within the Industrial segment of $6,297, including a loss of $2,114 from the sale of a recycling facility in Asheville, N.C. and losses totaling $4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela. 7Included in Corporate are net gains from derivatives associated with the Consumer segment of $120, the Industrial segment of $1,072, and All Other of $48. FREE CASH FLOW The Company uses the non-GAAP financial measure of "Free Cash Flow," which it defines as cash flow from operations minus net capital expenditures. Net capital expenditures are defined as capital expenditures minus proceeds from the disposition of capital assets. Free Cash Flow may not represent the amount of cash flow available for general discretionary use because it excludes non-discretionary expenditures, such as mandatory debt repayments and required settlements of recorded and/or contingent liabilities not reflected in cash flow from operations. The reconciliation of the GAAP measure "Net cash provided by operating activities" to the non-GAAP measure "Free Cash Flow" is set forth in the table below: | Nine Months Ended | September 27, 2026 | | September 28, 2025 | | | Net cash provided by operating activities | $ | 217,548 | | | $ | 276,896 | Purchases of property, plant and equipment | | (188,664 | ) | | | (253,411 | ) Proceeds from the sale of assets, net | | 13,759 | | | | 5,160 | Net capital expenditures | | (174,905 | ) | | | (248,251 | ) Free cash flow | $ | 42,643 | | | $ | 28,645 | | | | NET DEBT The reconciliation of the GAAP measure "Total Debt" to the non-GAAP measure of "Net Debt" is set forth in the table below: | September 27, 2026 | | | Total Debt | $ | 4,291,666 | Less: Cash and cash equivalents | | 183,101 | Net Debt | $ | 4,108,565 | This press release was published by a CLEAR® Verified individual.

Amcor Plc AMCR has reported fourth-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.23, which beat the Zacks Consensus Estimate of $1.20. The bottom line grew 23% from the year-ago quarter. The results benefited from the Berry Global acquisition, strong synergy realization, organic volume growth and productivity gains, which helped offset a challenging macro environment and significant input-cost inflation.Including special items, the company reported diluted earnings per share of 83 cents against a loss of 10 cents in the prior-year quarter. Amcor PLC price-consensus-eps-surprise-chart | Amcor PLC Quote Total revenues increased 26% year over year to $6.40 billion in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $6.03 billion.The sales increase was largely driven by the Berry Global acquisition and the pass-through of higher raw-material costs. Organic volume increased around 0.5% from the year-ago period. The cost of sales rose 20.9% year over year to $5 billion. Gross profit rose 49.4% year over year to $1.34 billion. The gross margin was 20.9% compared with the year-ago quarter’s 17.6%.SG&A expenses were $568 million, up 39.2% year over year.Adjusted EBITDA was $1.05 billion, a 32% increase from $789 million in the prior-year quarter. The adjusted EBITDA margin expanded to 16.3% from 15.5% a year earlier.The improvement reflected benefits from the Berry Global acquisition, synergy realization, organic volume growth and productivity. Amcor delivered around $115 million in synergies in the fourth quarter, ahead of expectations. Global Flexible Packaging Solutions: Net revenues increased 18% year over year to $3.53 billion in the reported quarter. Acquisitions contributed 10% to growth, while the pass-through of higher raw-material costs primarily drove the balance of the increase. Volumes increased 1% from the year-ago period. Our model projected net sales of $3.32 billion based on an expectation of year-over-year volume growth of 1% and a favorable acquisition benefit of 7%.The segment’s adjusted operating income came in at $533 million, growing 23% from $435 million in the prior-year quarter. Global Rigid Packaging Solutions: The segment reported revenues of $2.87 billion in the quarter, marking a 38% increase from $2.09 billion in the year-ago period. Acquisitions contributed 32% to growth, while the pass-through of higher raw-material costs primarily accounted for the remaining increase. Volumes rose 0.5%. We projected revenues of $2.69 billion for the segment with positive impacts of the Berry Global acquisition of 32% and volume growth of 1%.The segment’s adjusted EBIT surged 61% to $352 million from $219 million in the prior-year quarter. As of the end of fiscal 2026, Amcor had $1.12 billion in cash and cash equivalents compared with $0.83 billion at the end of fiscal 2025. The company generated $2.15 billion in cash from operating activities in fiscal 2025 compared with $1.34 billion in the prior fiscal year.AMCR generated a free cash flow of $1.30 billion in fiscal 2026 compared with $926 million in fiscal 2025. The company noted that free cash flow was below expectations due to higher-than-expected working-capital impacts related to the Middle East conflict and the timing of integration costs.As of June 30, 2026, Amcor’s net debt totaled $12.90 billion. The company’s leverage stood at 3.5 times, in line with expectations. AMCR expects to recover more than $500 million in cash-flow impacts related to the Middle East conflict and the timing of integration costs over the next 12 months. Amcor reported an adjusted EPS of $4.02 in fiscal 2026, up 13% from $3.56 in fiscal 2025. However, the figure missed the Zacks Consensus Estimate of $3.97.Including special items, AMCR reported EPS of $2.38 compared with $1.60 in fiscal 2025.Total revenues rose 57% year over year to $23.51 billion and beat the consensus estimate of $23.20 billion, largely driven by the Berry Global acquisition. Adjusted EBITDA increased 68% to $3.67 billion from $2.19 billion. AMCR expects adjusted earnings of $1.80-$1.90 per share for the six-month transition period ending Dec. 31, 2026, as it changes its year-end from June to December.For the three months ending Sept. 30, 2026, adjusted earnings are expected between 92 cents and 98 cents per share. Looking toward calendar 2027, the company expects double-digit adjusted earnings growth and is targeting leverage of 3.0 times by the year-end. Amcor also reaffirmed its three-year synergy target of $650 million, after delivering $285 million in fiscal 2026. In the past year, the company’s shares have gained 1.3% compared with the industry’s 6.4% growth. Image Source: Zacks Investment Research AMCR currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Packaging Corporation of America PKG reported second-quarter 2026 adjusted earnings of $2.35 per share, falling 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above Packaging Corp’s guidance of $2.33.Packaging Corp’s revenues increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter. Crown Holdings, Inc. CCK posted second-quarter 2026 adjusted earnings of $2.49 per share, up 15.8% year over year. The figure surpassed the Zacks Consensus Estimate of $2.15 by 15.81%.Crown Holdings revenues increased 16.5% to $3.67 billion and beat the consensus estimate of $3.34 billion by 9.88%. Global beverage can volumes rose 5%, led by 6% growth in Europe and 5% growth in the Americas. This was partially offset by softer demand in Latin America.Sonoco Products Company SON reported adjusted earnings of $1.51 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.47 by 2.72%. The figure rose 10.2% from $1.37 in the year-ago quarter. Pricing actions, favorable foreign-exchange movements and productivity gains helped offset the softer volume/mix during the quarter. Sonoco’s revenues of $1.885 billion declined 1.3% year over year and missed the consensus mark of $1.886 billion by 0.05%. Sonoco’s top line declined from the prior-year period primarily due to the absence of sales from the ThermoSafe business, which was divested in November 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amcor PLC (AMCR) : Free Stock Analysis Report Sonoco Products Company (SON) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Amcor Plc AMCR is scheduled to report fourth-quarter fiscal 2026 results on Aug. 12, before the opening bell.The Zacks Consensus Estimate for AMCR’s fiscal fourth-quarter revenues is pegged at $6.06 billion, indicating a 19.3% rise from the year-ago reported figure.The consensus estimate for earnings is pegged at $1.20 per share. The consensus estimate indicates growth of 20% from the year-ago quarter's actual. The estimate has been unchanged in the past 60 days. Image Source: Zacks Investment Research Amcor’s earnings met the Zacks Consensus Estimate in two of the trailing four quarters, beat in one and missed in one, the average negative surprise being 0.29%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for Amcor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.AMCR’s Earnings ESP: The Earnings ESP for Amcor is -0.64%.Amcor’s Zacks Rank: The company currently carries a Zacks Rank of 4.You can see the complete list of today’s Zacks #1 Rank stocks here. Amcor’s total volume had been bearing the brunt of weak consumer demand across its key markets due to the inflationary environment. Customers have also been lowering their inventory, which has impacted demand. Nonetheless, Amcor is expected to have gained from the rise in e-commerce activities worldwide.We expect 1% growth in volumes in the fiscal fourth quarter. Overall price/mix benefits are expected to be a positive 0.6% for the quarter and currency impacts are likely to have added another 1%.Amcor has been facing intermittent supply shortages and price volatility of certain resins and raw materials because of market dynamics and higher rates of inflation impacting other costs. The impacts of this are expected to be reflected in the company’s fiscal fourth-quarter earnings results. We expect volume for the Global Flexible Packaging Solutions segment’s fiscal fourth quarter to be 1%. The price/mix and currency impacts are expected to be 1% each. Our sales projection for the Global Flexible Packaging Solutions segment is pegged at $3.32 billion, indicating 11% year-over-year growth. The effect of the merger is expected to have a positive impact of 7%. Our model estimates a 1% jump in volumes for the Global Rigid Packaging Solutions segment, a favorable currency impact of 1%. Price/mix is expected to be flat year over year. The sales projection for the segment is $2.69 billion, indicating a 29% year-over-year jump, including the positive impacts of the Berry Global acquisition, estimated at 32%. Over the past year, shares of Amcor have gained 5.4% compared with the industry’s 9.5% growth. Image Source: Zacks Investment Research Packaging Corporation of America PKG reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above Packaging Corp’s guidance of $2.33.Packaging Corp’s revenues increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter. Crown Holdings, Inc. CCK posted second-quarter 2026 adjusted earnings of $2.49 per share, up 15.8% year over year. The figure surpassed the Zacks Consensus Estimate of $2.15 by 15.81%.Crown Holdings revenues increased 16.5% to $3.67 billion and beat the consensus estimate of $3.34 billion by 9.88%. Global beverage can volumes rose 5%, led by 6% growth in Europe and 5% growth in the Americas. This was partially offset by softer demand in Latin America.Sonoco Products Company SON reported adjusted earnings of $1.51 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.47 by 2.72%. The figure rose 10.2% from $1.37 in the year-ago quarter. Pricing actions, favorable foreign-exchange movements and productivity gains helped offset softer volume/mix during the quarter. Sonoco’s revenues of $1.885 billion declined 1.3% year over year and missed the consensus mark of $1.886 billion by 0.05%. Sonoco’s top line declined from the prior-year period primarily due to the absence of sales from the ThermoSafe business, which was divested in November 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amcor PLC (AMCR) : Free Stock Analysis Report Sonoco Products Company (SON) : Free Stock Analysis Report Packaging Corporation of America (PKG) : Free Stock Analysis Report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research