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Sonoco ProductsA
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2026-09-03
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Earnings documents stored for SON.

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Investor releaseQuarter not tagged2026-09-03

Sonoco Products' Estimates Likely to Decline Over Coming Quarters, BofA Says

MT Newswires

Sonoco Products' (SON) earnings estimates are more likely to move lower than higher over the coming

Investor releaseQuarter not tagged2026-08-12

Amcor Q4 Earnings Beat Estimates on Berry Global Acquisition

Zacks
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…Read full document

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

Investor releaseQuarter not tagged2026-08-10

Amcor to Report Q4 Earnings: What's in the Cards for the Stock?

Zacks
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 po…Read full document

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

Investor releaseQuarter not tagged2026-08-05

AptarGroup Q2 Earnings Beat Estimates on Pharma & Beverage Growth

Zacks
AptarGroup, Inc. ATR reported second-quarter 2026 adjusted earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.34 by 5.97%. The bottom line fell 15.5% from $1.68 a year ago (including comparable exchange rates), reflecting weaker margins and a higher tax rate.On a reported basis, earnings per share were $1.36 compared with the year-ago quarter’s $1.67. AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote Revenues rose 6.3% year over year to $1.03 billion and surpassed the consensus estimate of $1 billion by 2.32%. The quarter marked the first time reporting revenues of more than $1 billion. Core sales increased 1%, aided by growth across all three segments and strength in consumer healthcare and beverage dispensing. We predicted core sales growth of 0.5% in the quarter. Cost of sales increased 10.3% year over year to $661 million. Gross profit decreased 0.4% year over year to $366 million. The gross margin was 35.6% in the reported quarter compared with the prior-year quarter’s 38%.Selling, research, development and administrative expenses rose 4.4% year over year to $158 million. Adjusted operating income declined 10.5% year over year to $133 million. The adjusted operating margin was 13% in the reported quarter, down from the year-ago quarter’s 15.4%. Adjusted EBITDA decreased 2.7% year over year to $213 million in the second quarter. Total revenues in the Pharma segment increased 3.5% year over year to $458 million. The reported figure beat our estimate of $446 million. Adjusted EBITDA declined 1.9% year over year to $153.9 million. The segment’s adjusted EBITDA margin contracted to 33.6% from 35.4% in the year-ago quarter. We predicted a quarterly adjusted operating income of $159 million. Demand remained healthy across the central nervous system, asthma and COPD therapies, eye care, biologics, GLP-1 therapies, and vaccines.Total revenues in the Beauty segment rose 9.7% year over year to $367.5 million. The upside was supported by prestige fragrance dispensing, color cosmetics and hair care applications. We estimated revenues of $357 million for the quarter. Adjusted EBITDA fell 5% year over year to $44.7 million. The reported figure beat our operating income prediction of $41.5 million. The adjusted EBITDA margin was 12.2% compared with the prior-year quarter’s 14.1%.Total revenues in the Closures segment incr…Read full document

AptarGroup, Inc. ATR reported second-quarter 2026 adjusted earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.34 by 5.97%. The bottom line fell 15.5% from $1.68 a year ago (including comparable exchange rates), reflecting weaker margins and a higher tax rate.On a reported basis, earnings per share were $1.36 compared with the year-ago quarter’s $1.67. AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote Revenues rose 6.3% year over year to $1.03 billion and surpassed the consensus estimate of $1 billion by 2.32%. The quarter marked the first time reporting revenues of more than $1 billion. Core sales increased 1%, aided by growth across all three segments and strength in consumer healthcare and beverage dispensing. We predicted core sales growth of 0.5% in the quarter. Cost of sales increased 10.3% year over year to $661 million. Gross profit decreased 0.4% year over year to $366 million. The gross margin was 35.6% in the reported quarter compared with the prior-year quarter’s 38%.Selling, research, development and administrative expenses rose 4.4% year over year to $158 million. Adjusted operating income declined 10.5% year over year to $133 million. The adjusted operating margin was 13% in the reported quarter, down from the year-ago quarter’s 15.4%. Adjusted EBITDA decreased 2.7% year over year to $213 million in the second quarter. Total revenues in the Pharma segment increased 3.5% year over year to $458 million. The reported figure beat our estimate of $446 million. Adjusted EBITDA declined 1.9% year over year to $153.9 million. The segment’s adjusted EBITDA margin contracted to 33.6% from 35.4% in the year-ago quarter. We predicted a quarterly adjusted operating income of $159 million. Demand remained healthy across the central nervous system, asthma and COPD therapies, eye care, biologics, GLP-1 therapies, and vaccines.Total revenues in the Beauty segment rose 9.7% year over year to $367.5 million. The upside was supported by prestige fragrance dispensing, color cosmetics and hair care applications. We estimated revenues of $357 million for the quarter. Adjusted EBITDA fell 5% year over year to $44.7 million. The reported figure beat our operating income prediction of $41.5 million. The adjusted EBITDA margin was 12.2% compared with the prior-year quarter’s 14.1%.Total revenues in the Closures segment increased 6.5% year over year to $201 million. We estimated revenues of $192 million for the quarter. Adjusted EBITDA decreased 6.4% year over year to $29.8 million. The reported figure beat our operating income prediction of $29.2 million. The segment’s adjusted EBITDA margin declined to 14.9% from 16.9% a year ago. AptarGroup reported cash and cash equivalents of $190 million as of June 30, 2026, down from $402 million as of Dec. 31, 2025. The company generated $222 million in cash flow from operations in the first six months of 2026 compared with $209 million in the year-ago period.The company returned $212 million to shareholders during the first half through dividends and buybacks, including $81 million in the second quarter. During the quarter, ATR repurchased 403,000 shares for $50 million. Its board also approved a quarterly dividend of 48 cents per share. ATR expects third-quarter 2026 adjusted earnings of $1.45-$1.53 per share. The company expects solid growth across all three segments. Pharma should benefit from injectables and consumer healthcare, with emergency medicine destocking expected to abate by the fourth quarter. Beauty growth is anticipated in fragrance and facial skincare, while Closures demand and operational performance are expected to improve. The company’s shares have lost 1.5% in the past year against the industry’s 8.4% growth. Image Source: Zacks Investment Research The company currently has a Zacks Rank #3 (Hold). 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, 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 AptarGroup, Inc. (ATR) : 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

Investor releaseQuarter not tagged2026-08-03

Silgan Holdings Q2 Earnings Top Estimates on Rise in Metal Containers

Zacks
Silgan Holdings Inc. SLGN reported second-quarter 2026 adjusted earnings of 98 cents per share, beating the Zacks Consensus Estimate of 96 cents by 2.08%. The bottom line declined 3% from $1.01 in the year-ago quarter.Including one-time items, earnings were 72 cents per share compared with earnings of 83 cents in the prior-year quarter. Silgan Holdings Inc. price-consensus-eps-surprise-chart | Silgan Holdings Inc. Quote Net revenues increased 6.8% year over year to $1.64 billion and surpassed the consensus estimate of $1.62 billion by 1.54%. Higher raw-material cost pass-throughs supported revenues, while high-single-digit growth in fragrance dispensing products and pet food metal containers stood out operationally. In second-quarter 2026, the cost of goods sold increased 8.7% year over year to $1.35 billion. Gross profit declined 1.4% to $295 million. The gross margin was 17.9% compared with the prior-year quarter’s 19.4%.Selling, general and administrative expenses were $127 million, up 4.1% year over year. The company reported an adjusted operating income of $185.3 million compared with $193 million in the prior-year quarter. The adjusted operating margin was 11.3% compared with the prior-year quarter’s 12.5%. Revenues in the Dispensing and Specialty Closures segment rose 1.7% year over year to $714 million. Results benefited from the pass-through of higher raw-material and other costs and favorable foreign currency translation but were partially offset by lower volumes and an unfavorable product mix. The segment’s adjusted EBITDA was $146.9 million compared with $145.5 million in second-quarter 2025.The Metal Containers segment’s revenues improved 13% year over year to $764 million due to the contractual pass-through of higher raw-material and manufacturing costs. Volumes were comparable with the prior-year quarter, as growth in pet food markets was offset by weaker fruit, vegetable and soup volumes. The segment’s adjusted EBITDA was $86.2 million compared with $84.4 million in the prior-year quarter.In the Custom Containers segment, revenues increased 2.9% year over year to $165.5 million. Favorable price and product mix aided revenues, partially offset by a 4% decline in volumes. The segment reported adjusted EBITDA of $35.2 million, up from the previous-year quarter’s $33.6 million. Silgan had cash and cash equivalents of $0.35 billion at June 30, 202…Read full document

Silgan Holdings Inc. SLGN reported second-quarter 2026 adjusted earnings of 98 cents per share, beating the Zacks Consensus Estimate of 96 cents by 2.08%. The bottom line declined 3% from $1.01 in the year-ago quarter.Including one-time items, earnings were 72 cents per share compared with earnings of 83 cents in the prior-year quarter. Silgan Holdings Inc. price-consensus-eps-surprise-chart | Silgan Holdings Inc. Quote Net revenues increased 6.8% year over year to $1.64 billion and surpassed the consensus estimate of $1.62 billion by 1.54%. Higher raw-material cost pass-throughs supported revenues, while high-single-digit growth in fragrance dispensing products and pet food metal containers stood out operationally. In second-quarter 2026, the cost of goods sold increased 8.7% year over year to $1.35 billion. Gross profit declined 1.4% to $295 million. The gross margin was 17.9% compared with the prior-year quarter’s 19.4%.Selling, general and administrative expenses were $127 million, up 4.1% year over year. The company reported an adjusted operating income of $185.3 million compared with $193 million in the prior-year quarter. The adjusted operating margin was 11.3% compared with the prior-year quarter’s 12.5%. Revenues in the Dispensing and Specialty Closures segment rose 1.7% year over year to $714 million. Results benefited from the pass-through of higher raw-material and other costs and favorable foreign currency translation but were partially offset by lower volumes and an unfavorable product mix. The segment’s adjusted EBITDA was $146.9 million compared with $145.5 million in second-quarter 2025.The Metal Containers segment’s revenues improved 13% year over year to $764 million due to the contractual pass-through of higher raw-material and manufacturing costs. Volumes were comparable with the prior-year quarter, as growth in pet food markets was offset by weaker fruit, vegetable and soup volumes. The segment’s adjusted EBITDA was $86.2 million compared with $84.4 million in the prior-year quarter.In the Custom Containers segment, revenues increased 2.9% year over year to $165.5 million. Favorable price and product mix aided revenues, partially offset by a 4% decline in volumes. The segment reported adjusted EBITDA of $35.2 million, up from the previous-year quarter’s $33.6 million. Silgan had cash and cash equivalents of $0.35 billion at June 30, 2026, compared with $1.08 billion at the end of 2025. Total debt was $4.83 billion, up from $4.35 billion at year-end.The company used $993.9 million of cash in operating activities during the first six months of 2026 compared with $904.9 million in the prior-year period. Capital expenditure was $146.7 million versus $155.7 million a year earlier.SLGN used $993.9 million in cash in operating activities compared with an outflow of $904.9 million in the first six months of 2025. SLGN reaffirmed its 2026 adjusted earnings guidance of $3.73-$3.93 per share. The midpoint implies growth of 3% from the adjusted earnings of $3.72 per share reported in 2025.The company also maintained its free cash flow forecast of $450 million and capital expenditure estimate of $310 million. For the third quarter, SLGN expects adjusted earnings of $1.21-$1.31 per share compared with $1.22 in the year-ago period. The company’s shares have lost 11% in the past year against the industry’s growth of 12.1%. Image Source: Zacks Investment Research SLGN currently has a Zacks Rank #3 (Hold). 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 Silgan Holdings Inc. (SLGN) : 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

Investor releaseQuarter not tagged2026-07-30

Avery Dennison Q2 Earnings Beat on Pricing & Productivity Gains

Zacks
Avery Dennison Corporation’s AVY adjusted earnings of $2.89 per share for the second quarter of 2026 grew 19.4% year over year. The figure surpassed the Zacks Consensus Estimate of $2.47.Including one-time items, the company has reported earnings per share of $2.67 compared with the year-ago quarter’s $2.41. Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote Revenues increased 10.9% year over year to $2.46 billion and beat the consensus estimate of $2.29 billion. Strong volume growth, productivity gains, and favorable pricing and raw-material dynamics supported the results. Organic sales rose 7.6%. The cost of sales in the quarter increased 9.6% year over year to $1.73 billion. Gross profit rose 14.1% to $729.4 million. The gross margin came in at 29.6%, up from the prior-year quarter’s 28.8%.Marketing, general and administrative expenses were $352.4 million compared with $394.8 million in the year-ago quarter. Adjusted operating profit increased to $334.6 million from $286.7 million. The adjusted operating margin was 13.6% compared with 12.9% in the prior-year quarter.Adjusted EBITDA advanced 14.6% to $421 million. The corresponding margin improved 50 basis points to 17.1%. Volume, productivity and the net benefit of pricing and raw-material costs supported profitability, though higher employee-related expenses remained a headwind. Revenues in the Materials Group segment increased 15.9% year over year to $1.80 billion in the reported quarter. Our estimate was $1.61 billion. On an organic basis, sales improved 9.7%, driven by high-single-digit volume and mix growth, and a low-single-digit increase in pricing. The segment’s adjusted operating profit increased 17.1% year over year to $284 million. Our estimate was $258 million. The adjusted operating margin was 15.8% compared with 15.6% in the prior-year quarter.Revenues in the Solutions Group declined 0.5% year over year to $667 million. Our estimate was $672 million. On an organic basis, sales improved 2.6%, with overall apparel categories registering high-single-digit growth.The segment’s adjusted operating income increased 14.2% year over year to $76.5 million. Our estimate was $67 million. The adjusted operating margin expanded to 11.5% from 10% in the year-ago quarter. The company returned $347 million in cash to shareholders through share repurchases and div…Read full document

Avery Dennison Corporation’s AVY adjusted earnings of $2.89 per share for the second quarter of 2026 grew 19.4% year over year. The figure surpassed the Zacks Consensus Estimate of $2.47.Including one-time items, the company has reported earnings per share of $2.67 compared with the year-ago quarter’s $2.41. Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote Revenues increased 10.9% year over year to $2.46 billion and beat the consensus estimate of $2.29 billion. Strong volume growth, productivity gains, and favorable pricing and raw-material dynamics supported the results. Organic sales rose 7.6%. The cost of sales in the quarter increased 9.6% year over year to $1.73 billion. Gross profit rose 14.1% to $729.4 million. The gross margin came in at 29.6%, up from the prior-year quarter’s 28.8%.Marketing, general and administrative expenses were $352.4 million compared with $394.8 million in the year-ago quarter. Adjusted operating profit increased to $334.6 million from $286.7 million. The adjusted operating margin was 13.6% compared with 12.9% in the prior-year quarter.Adjusted EBITDA advanced 14.6% to $421 million. The corresponding margin improved 50 basis points to 17.1%. Volume, productivity and the net benefit of pricing and raw-material costs supported profitability, though higher employee-related expenses remained a headwind. Revenues in the Materials Group segment increased 15.9% year over year to $1.80 billion in the reported quarter. Our estimate was $1.61 billion. On an organic basis, sales improved 9.7%, driven by high-single-digit volume and mix growth, and a low-single-digit increase in pricing. The segment’s adjusted operating profit increased 17.1% year over year to $284 million. Our estimate was $258 million. The adjusted operating margin was 15.8% compared with 15.6% in the prior-year quarter.Revenues in the Solutions Group declined 0.5% year over year to $667 million. Our estimate was $672 million. On an organic basis, sales improved 2.6%, with overall apparel categories registering high-single-digit growth.The segment’s adjusted operating income increased 14.2% year over year to $76.5 million. Our estimate was $67 million. The adjusted operating margin expanded to 11.5% from 10% in the year-ago quarter. The company returned $347 million in cash to shareholders through share repurchases and dividend payments in the first half of 2026. AVY repurchased 1.2 million shares, with payments totaling $198 million.Avery Dennison ended the second quarter of 2026 with cash and cash equivalents of $227 million compared with $216 million at the end of the year-ago period.The company’s long-term debt and finance leases were $3.18 billion at the end of the second quarter, up from $2.63 billion in the year-ago period. Its net-debt-to-adjusted-EBITDA ratio was 2.3X.AVY realized approximately $34 million in pre-tax savings from restructuring actions in the first half of 2026. The company also incurred around $34 million in pre-tax restructuring charges. Avery Dennison expects reported earnings of $9.40-$9.70 per share for 2026. Adjusted earnings are projected between $10 and $10.30 per share. The outlook assumes reported sales growth of 5-6% and organic growth of 3-4%.AVY expects much of the customer inventory stocking recorded in the first half to unwind during the second half, with most destocking anticipated in the third quarter. The company consequently expects a greater-than-historical sequential earnings decline in that period. It is also targeting adjusted free cash flow conversion of approximately 100% and more than $60 million in incremental restructuring savings. AVY shares have gained 1.5% in the past year compared with the industry’s growth of 5.2%. Image Source: Zacks Investment Research Avery Dennison currently carries a Zacks Rank #3 (Hold). 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, 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 Avery Dennison Corporation (AVY) : 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

Investor releaseQuarter not tagged2026-07-29

Greif Earnings Beat Estimates in Q3 on Pricing & Cost Optimization

Zacks
Greif, Inc. GEF reported adjusted earnings of $1.61 per share for third-quarter fiscal 2026,  beating the Zacks Consensus Estimate of $1.04. The 54.81% earnings surprise reflected stronger price performance, structural cost optimization and lower interest expenses. The company posted adjusted earnings of 86 cents in the year-ago quarter, excluding the impacts of adjustments.Including one-time items, earnings per share were $1.37 in the quarter compared with 53 cents in the prior-year quarter. Greif, Inc. price-consensus-eps-surprise-chart | Greif, Inc. Quote GEF’s sales increased 3.5% year over year to $1.17 billion. The top line surpassed the Zacks Consensus Estimate of $1.12 billion.The cost of sales rose 2.7% year over year to $893 million. Gross profit amounted to $273 million, up 6.5% from the prior-year quarter. The gross margin came in at 23.4%, up from the prior-year quarter’s 22.7%.Selling, general and administrative expenses were $149.5 million compared with the prior-year quarter’s $168 million. Adjusted EBITDA rose 24.7% year over year to $183.4 million in the fiscal third quarter. The adjusted EBITDA margin came in at 15.7% compared with the prior-year quarter’s 13.1%. Revenues in the Customized Polymer Solutions segment increased 13.6% year over year to $384 million, primarily driven by higher average selling prices, favorable foreign currency translation and higher volumes. Our model projected revenues of $331 million for the quarter. The segment’s adjusted EBITDA rose to $64.3 million from $37.1 million in the year-ago quarter. The reported figure beat our estimate of $33 million.The Durable Metal Solutions segment’s revenues increased 3.4% year over year to $406 million in the fiscal third quarter, aided by positive foreign currency translation and higher average selling prices, partly offset by lower volumes. The figure beat our estimated revenues of $387 million. The segment’s adjusted EBITDA improved to $64 million from $53.6 million in the prior-year quarter. We projected the segment’s adjusted EBITDA to be $52 million.The Sustainable Fiber Solutions segment’s revenues declined 6.5% year over year to $346.5 million, reflecting lower average selling prices, impacts from the Soterra divestiture and lower volumes. The figure beat our estimated revenues of 260 million. The segment’s adjusted EBITDA was $42.5 million, down from $48.8 million…Read full document

Greif, Inc. GEF reported adjusted earnings of $1.61 per share for third-quarter fiscal 2026,  beating the Zacks Consensus Estimate of $1.04. The 54.81% earnings surprise reflected stronger price performance, structural cost optimization and lower interest expenses. The company posted adjusted earnings of 86 cents in the year-ago quarter, excluding the impacts of adjustments.Including one-time items, earnings per share were $1.37 in the quarter compared with 53 cents in the prior-year quarter. Greif, Inc. price-consensus-eps-surprise-chart | Greif, Inc. Quote GEF’s sales increased 3.5% year over year to $1.17 billion. The top line surpassed the Zacks Consensus Estimate of $1.12 billion.The cost of sales rose 2.7% year over year to $893 million. Gross profit amounted to $273 million, up 6.5% from the prior-year quarter. The gross margin came in at 23.4%, up from the prior-year quarter’s 22.7%.Selling, general and administrative expenses were $149.5 million compared with the prior-year quarter’s $168 million. Adjusted EBITDA rose 24.7% year over year to $183.4 million in the fiscal third quarter. The adjusted EBITDA margin came in at 15.7% compared with the prior-year quarter’s 13.1%. Revenues in the Customized Polymer Solutions segment increased 13.6% year over year to $384 million, primarily driven by higher average selling prices, favorable foreign currency translation and higher volumes. Our model projected revenues of $331 million for the quarter. The segment’s adjusted EBITDA rose to $64.3 million from $37.1 million in the year-ago quarter. The reported figure beat our estimate of $33 million.The Durable Metal Solutions segment’s revenues increased 3.4% year over year to $406 million in the fiscal third quarter, aided by positive foreign currency translation and higher average selling prices, partly offset by lower volumes. The figure beat our estimated revenues of $387 million. The segment’s adjusted EBITDA improved to $64 million from $53.6 million in the prior-year quarter. We projected the segment’s adjusted EBITDA to be $52 million.The Sustainable Fiber Solutions segment’s revenues declined 6.5% year over year to $346.5 million, reflecting lower average selling prices, impacts from the Soterra divestiture and lower volumes. The figure beat our estimated revenues of 260 million. The segment’s adjusted EBITDA was $42.5 million, down from $48.8 million in the year-ago quarter. We projected the segment’s adjusted EBITDA to be $71 million.The Innovative Closure Solutions segment’s revenues rose 18.8% year over year to $30 million, supported by higher average selling prices, higher volumes and favorable foreign currency translation. We projected the segment's revenues to be $148 million in the quarter. Adjusted EBITDA increased to $12.6 million from $7.6 million a year earlier. Our forecast for the quarter’s adjusted EBITDA was $7 million. Greif reported cash and cash equivalents of $288.5 million as of June 30, 2026, compared with $256.7 million at the end of fiscal 2025. The cash flow from operating activities totaled $77.8 million in the quarter under review, down from $147.1 million in the prior-year quarter.Long-term debt amounted to $687.4 million as of June 30, 2026, compared with $914.8 million as of Sept. 30, 2025. Total debt was $1.03 billion, while net debt declined to $741.9 million from $2.43 billion as of July 31, 2025.On June 2, Greif’s board declared a quarterly cash dividend of 62 cents per share of Class A Common Stock and 93 cents per share of Class B Common Stock. The dividend represented a 10.7% increase and was paid out on July 1, 2026, to shareholders of record at the close of business on June 17, 2026.The company also announced plans to execute share repurchases under existing authorizations. It achieved $90 million in cumulative run-rate cost savings and maintained its target of at least $120 million by the end of fiscal 2027. Greif also completed the $57-million Envaplast acquisition, adding an agrochemical-focused small-container producer in Spain. GEF expects fiscal 2026 adjusted EBITDA of $615-$635 million, implying year-over-year growth of 9.8-13.4%. The outlook reflects improved fiscal third-quarter demand and continued execution, even as industrial conditions remain subdued and the company has not seen evidence of a broad recovery.The adjusted free cash flow is projected between $305 million and $325 million, with conversion of about 50%. Current assumptions call for flat Customized Polymer Solutions volumes, mid-single-digit declines in Durable Metal Solutions, and low-single-digit declines in both Sustainable Fiber Solutions and Innovative Closure Solutions. The company’s shares have gained 32.4% in a year compared with the industry’s 2.2% growth. Image Source: Zacks Investment Research Greif 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, 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, driven by higher production and sales volumes, including contributions from the acquired Greif business. This was partially offset by lower price and mix in the packaging segment, and higher operating, freight and labor costs. Packaging Corp’s sales 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 sales 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 sales 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 Greif, Inc. (GEF) : 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

Investor releaseQuarter not tagged2026-07-25

Sonoco Products Co (SON) Q2 2026 Earnings Call Highlights: Strong Cash Flow and Resilient ...

GuruFocus.com
This article first appeared on GuruFocus. Net Sales: $1.9 billion, down 1% compared with the prior year. Adjusted EBITDA: $324 million, down 1% versus the prior year. Adjusted EBITDA Margin: 17.2%, in line with the prior year period. Adjusted EPS: $1.51, up from $1.37 in the prior year. Operating Cash Flow: $301 million, up 56% year over year. Free Cash Flow: $237 million, up 139% year over year. Industrial Segment Sales: $643 million, up 4% versus the prior year. Consumer Segment Sales: $1.24 billion, up 1% year over year. Productivity Gains: $16 million in the Industrial segment. URB Mill Utilization Rates: 95%, the highest level in years. Paper Can Volumes: Up 9% in EMEA and APAC, with Asia volumes up 29%. Inflationary Impact: $10 million cost in operating profit due to higher energy expenses. Profitability Performance Plan Savings: $10 million in the second quarter, $18 million year-to-date. Full-Year Guidance: Net sales of $7.25 billion to $7.75 billion; adjusted EBITDA of $1.25 billion to $1.35 billion; adjusted EPS of $5.80 to $6.20; operating cash flows of $700 million to $800 million. Warning! GuruFocus has detected 9 Warning Signs with SON. Is SON fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sonoco Products Co (NYSE:SON) delivered solid second-quarter results that met expectations and exceeded consensus estimates. The Industrial segment saw a 4% increase in operating profits from the previous year and a 29% increase from the first quarter, driven by $16 million in productivity gains. Strong demand in North American URB mills led to a 6.4% increase in trade tons, boosting mill utilization rates to 95%. The Consumer segment saw a 22% sequential increase in operating profit from the first quarter, with paper can volumes up 9% in EMEA and APAC. Sonoco Products Co (NYSE:SON) generated strong cash flow, with operating cash flow at $301 million, up more than $100 million from the prior year. Global inflationary pressures, particularly higher energy expenses, cost Sonoco Products Co (NYSE:SON) roughly $10 million in operating profit for the quarter. The Consumer segment experienced a 5% decline in operating profit during the quarter, driven by lower demand for metal aerosol cans and adhesives and sealant tubes in…Read full document

This article first appeared on GuruFocus. Net Sales: $1.9 billion, down 1% compared with the prior year. Adjusted EBITDA: $324 million, down 1% versus the prior year. Adjusted EBITDA Margin: 17.2%, in line with the prior year period. Adjusted EPS: $1.51, up from $1.37 in the prior year. Operating Cash Flow: $301 million, up 56% year over year. Free Cash Flow: $237 million, up 139% year over year. Industrial Segment Sales: $643 million, up 4% versus the prior year. Consumer Segment Sales: $1.24 billion, up 1% year over year. Productivity Gains: $16 million in the Industrial segment. URB Mill Utilization Rates: 95%, the highest level in years. Paper Can Volumes: Up 9% in EMEA and APAC, with Asia volumes up 29%. Inflationary Impact: $10 million cost in operating profit due to higher energy expenses. Profitability Performance Plan Savings: $10 million in the second quarter, $18 million year-to-date. Full-Year Guidance: Net sales of $7.25 billion to $7.75 billion; adjusted EBITDA of $1.25 billion to $1.35 billion; adjusted EPS of $5.80 to $6.20; operating cash flows of $700 million to $800 million. Warning! GuruFocus has detected 9 Warning Signs with SON. Is SON fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sonoco Products Co (NYSE:SON) delivered solid second-quarter results that met expectations and exceeded consensus estimates. The Industrial segment saw a 4% increase in operating profits from the previous year and a 29% increase from the first quarter, driven by $16 million in productivity gains. Strong demand in North American URB mills led to a 6.4% increase in trade tons, boosting mill utilization rates to 95%. The Consumer segment saw a 22% sequential increase in operating profit from the first quarter, with paper can volumes up 9% in EMEA and APAC. Sonoco Products Co (NYSE:SON) generated strong cash flow, with operating cash flow at $301 million, up more than $100 million from the prior year. Global inflationary pressures, particularly higher energy expenses, cost Sonoco Products Co (NYSE:SON) roughly $10 million in operating profit for the quarter. The Consumer segment experienced a 5% decline in operating profit during the quarter, driven by lower demand for metal aerosol cans and adhesives and sealant tubes in the United States. Net sales were down 1% compared to the prior year, with softer demand in select markets. The Industrial segment faced price cost headwinds due to rising costs for freight, chemicals, OCC, and lumber. Sonoco Products Co (NYSE:SON) remains behind the price/cost curve in Q2, although recovery mechanisms are now in place to address this. Q: Howard, over the weekend, we got some market commentary suggesting the URB market loosened. Are you seeing any market loosening, and are you comfortable with your pricing for July? Also, how did the Industrial and Consumer segments perform compared to expectations? A: Robert Coker, President and CEO: We are not seeing any weakness in our served URB markets. Our North American mills are running at 95% utilization, and European mills at 92%. We have gained some share and are bringing in paper from Europe to support demand. On the Consumer side, we saw a slowdown, particularly in adhesives and sealants, which is macro-related. Aerosols were slightly down due to tough comps, but international performance was strong. Q: Can you discuss second-half volume expectations for your full-year guide, particularly for RPC versus metal cans? A: Robert Coker, President and CEO: Year over year, pack season looks solid in both regions. We are modeling low to mid-single digits growth on the consumer side and low single digits on the industrial side. Early indicators for pack seasons are strong. Q: How does the potential tariff on Canadian paperboard impact your business? A: Robert Coker, President and CEO: While we do cross-border, it's relatively immaterial. We are still understanding how this will settle out, but it should not have a significant impact on our business. Q: One of your peers is adding 10% to URB capacity by 2027. How insulated are you from this, and what is the potential impact? A: Robert Coker, President and CEO: URB is a complex market, and we focus on high-end, high-quality markets. We have invested heavily in our capabilities and do not play in the commodity side. We are full servicing the high end of the market and do not see this new capacity impacting us significantly. Q: Can you provide insights on the profitability performance plan and its impact on Q3 and Q4? A: Paul Joachimczyk, CFO: The profitability performance plan is gaining traction. We are focusing on back-office functions initially, with plans for operational improvements in Q3 and Q4. Structural changes take longer to implement, but we expect larger acceleration in profitability performance in the coming quarters. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Investor releaseQuarter not tagged2026-07-24

Sonoco Products Q2 Earnings Call Highlights

MarketBeat
Interested in Sonoco Products Company? Here are five stocks we like better. Sonoco beat Q2 expectations with adjusted EPS of $1.51 and results that management said were in line with guidance, despite modest declines in net sales and adjusted EBITDA. Excluding the divested ThermoSafe business, revenue and EBITDA both grew 2% and adjusted EPS rose 17%. The industrial segment was the standout, supported by strong URB demand, productivity gains, and higher reel volumes tied to AI data center, power grid, and communications demand. Sonoco said URB mills were running at 95% utilization and backlogs extend into the third quarter. Cash flow and cost savings improved sharply, with operating cash flow up 56% and free cash flow up 139% year over year. The company also reiterated full-year guidance and said its profitability performance plan is delivering savings ahead of schedule. Sony Is Going All-Digital—But Investors Should Watch This Instead Sonoco Products (NYSE:SON) said second-quarter 2026 results met company expectations and topped consensus estimates, as productivity gains and cost controls helped offset inflation in freight, chemicals, coatings and raw materials. President and CEO Howard Coker said the company delivered “solid second quarter results,” with particular strength in its industrial segment. Chief Financial Officer Paul Joachimczyk said the quarter reflected progress on priorities outlined at Sonoco’s Investor Day, including earnings growth, cash generation, margin maintenance and early benefits from the company’s profitability performance plan. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Microsoft’s Xbox Problem Is Bigger Than a Console War Net sales were $1.9 billion, down 1% from the prior year. Adjusted EBITDA was $324 million, also down 1%, while adjusted EBITDA margin was 17.2%, in line with the year-ago period. Adjusted earnings per share were $1.51, up from $1.37 a year earlier. Joachimczyk noted that prior-year results included contributions from the divested ThermoSafe business, which had generated $66 million of revenue, $11 million of EBITDA and $0.08 of EPS in the second quarter of 2025. Excluding ThermoSafe, he said second-quarter 2026 revenue and EBITDA grew 2%, and adjusted EPS rose 17%. → 3 Photonics Companies Making Quantum Tech Possible How the Memory Shortage Is Crushing the Gaming Industry Sonoco’s i…Read full document

Interested in Sonoco Products Company? Here are five stocks we like better. Sonoco beat Q2 expectations with adjusted EPS of $1.51 and results that management said were in line with guidance, despite modest declines in net sales and adjusted EBITDA. Excluding the divested ThermoSafe business, revenue and EBITDA both grew 2% and adjusted EPS rose 17%. The industrial segment was the standout, supported by strong URB demand, productivity gains, and higher reel volumes tied to AI data center, power grid, and communications demand. Sonoco said URB mills were running at 95% utilization and backlogs extend into the third quarter. Cash flow and cost savings improved sharply, with operating cash flow up 56% and free cash flow up 139% year over year. The company also reiterated full-year guidance and said its profitability performance plan is delivering savings ahead of schedule. Sony Is Going All-Digital—But Investors Should Watch This Instead Sonoco Products (NYSE:SON) said second-quarter 2026 results met company expectations and topped consensus estimates, as productivity gains and cost controls helped offset inflation in freight, chemicals, coatings and raw materials. President and CEO Howard Coker said the company delivered “solid second quarter results,” with particular strength in its industrial segment. Chief Financial Officer Paul Joachimczyk said the quarter reflected progress on priorities outlined at Sonoco’s Investor Day, including earnings growth, cash generation, margin maintenance and early benefits from the company’s profitability performance plan. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Microsoft’s Xbox Problem Is Bigger Than a Console War Net sales were $1.9 billion, down 1% from the prior year. Adjusted EBITDA was $324 million, also down 1%, while adjusted EBITDA margin was 17.2%, in line with the year-ago period. Adjusted earnings per share were $1.51, up from $1.37 a year earlier. Joachimczyk noted that prior-year results included contributions from the divested ThermoSafe business, which had generated $66 million of revenue, $11 million of EBITDA and $0.08 of EPS in the second quarter of 2025. Excluding ThermoSafe, he said second-quarter 2026 revenue and EBITDA grew 2%, and adjusted EPS rose 17%. → 3 Photonics Companies Making Quantum Tech Possible How the Memory Shortage Is Crushing the Gaming Industry Sonoco’s industrial segment outperformed management’s expectations, with operating profit up 4% from a strong year-earlier quarter and up 29% sequentially from the first quarter, Coker said. Segment sales rose 4% year over year to $643 million, supported by three points of pricing and one point from foreign exchange. Volume and mix were flat. Coker said industrial results were driven by $16 million in productivity gains, which more than offset price-cost headwinds tied to higher freight, chemicals, old corrugated containers, or OCC, and lumber. North American uncoated recycled paperboard, or URB, mills posted a 6.4% increase in trade tons, lifting mill utilization to 95%, which Coker described as the highest level in years. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Demand was supported by new market development, including saturated URB used in laminates, as well as share gains. Reels volumes rose 10%, helped by demand from wire and cable customers tied to artificial intelligence data center infrastructure, as well as power grid and communications markets. In response to analyst questions about trade publication commentary suggesting the URB market had loosened, Coker said Sonoco was not seeing weakness in the markets it serves. He said the company’s URB backlogs extend through the third quarter and require imports from mills in Europe and Latin America to support North American demand. Joachimczyk added that North American mills were operating at 95% utilization and European mills at 92%. Consumer segment sales rose 1% year over year to $1.24 billion. Pricing contributed two points of growth, while foreign exchange added one point. Operating profit declined 5% from the year-earlier period but increased 22% sequentially from the first quarter. Coker said productivity and cost containment helped support consumer results. Paper can volumes rose 9% in EMEA and APAC, including a 29% increase in Asia. Joachimczyk said metal cans saw double-digit unit growth in pet food in EMEA, which now represents 15% of Sonoco’s global food can units. Overall consumer volume mix declined 1.8%, primarily due to weaker U.S. demand for metal aerosol cans and adhesives and sealants. Coker said the slowdown in adhesives and sealants appeared macro-related, tied to housing and remodeling activity. Joachimczyk said aerosols faced a tough comparison after a large player exited the space in 2024, which shifted volumes in 2025. Management said it does not expect material improvement in adhesives and sealants in the second half, but early indicators for the pack season were strong. Coker said Sonoco is modeling low- to mid-single-digit year-over-year volume growth in consumer in the second half and low-single-digit growth in industrial. Coker said global inflationary pressures, driven in part by higher energy expenses related to the Middle East situation, reduced operating profit by roughly $10 million in the quarter. Freight was the largest component, while raw materials also rose. OCC increased $40 per ton year to date to $100 per ton. While Sonoco was behind the price-cost curve in the second quarter, Coker said recovery mechanisms are now in place. These include an April URB and converted product price increase that fully takes effect in the third quarter, a $60-per-ton URB increase implemented July 8, contracted global paper can price increases and diesel-related surcharges. Joachimczyk said about 70% of industrial paper pricing is tied to an index and is recovered at the start of the following quarter. He also said a $10 movement in the Tan Bending Chip index represents about a $10 million annualized impact, or roughly $2.5 million per quarter. Operating cash flow totaled $301 million, up 56% year over year and more than $100 million above the prior year. Free cash flow was $237 million, up 139%. Gross capital investment was $64 million, consistent with first-quarter spending. Joachimczyk said Sonoco remains focused on funding the business, supporting the dividend and strengthening the balance sheet. He said the company’s profitability performance plan delivered $10 million of savings in the second quarter and $18 million year to date. Annualized savings now stand at about $38 million, representing 25% of the low end of the three-year target range. The company maintained its full-year guidance, expecting: Net sales of $7.25 billion to $7.75 billion Adjusted EBITDA of $1.25 billion to $1.35 billion Adjusted EPS of $5.80 to $6.20 Operating cash flow of $700 million to $800 million Joachimczyk said the third quarter is Sonoco’s most important quarter because it is closely tied to pack season, and management wanted to preserve flexibility in its guidance range until those results are clearer. Coker said Sonoco is increasing production of saturated URB for high-pressure laminates used in countertops, flooring, composite boards and decorative panels. The company expects to produce roughly 10,000 tons annually by year-end and increase that to 20,000 tons annually by the end of 2027. Sonoco also completed a $20 million expansion at its Hartselle, Alabama, wire and cable reels production center. Coker said the business has been “essentially sold out” and that new robotic equipment will increase nailed wood reels production by about 15%. In consumer packaging, Coker pointed to a new paper can plant in Thailand, additional planned paper can production lines in South America and the U.S. in 2027, new metal can lines in Italy for tomato and tuna customers, and a new metal can and ends production line in France to support pet food growth. He also cited product developments including Orbit easy-open closures, Eco-Fill metal food can features, microwaveable-safe metal bowls and the company’s GreenCan packaging innovation. “While we remain mindful of external macroeconomic conditions, we are confident in our strategy, our portfolio, and ability to execute through economic cycles,” Coker said. Sonoco Products Company (NYSE: SON) is a global provider of diversified packaging solutions, serving a wide range of consumer, industrial and retail markets. The company offers a broad portfolio that includes rigid paper and plastic containers, flexible packaging, industrial core and tube products, thermoformed plastics, retail point-of-purchase displays, and packaging supply chain services. Through its solutions, Sonoco helps customers in food and beverage, personal care, chemicals, healthcare, home and garden, and electronics industries address their packaging needs, improve product shelf appeal, and optimize logistics efficiency. With operations in more than 30 countries across North America, South America, Europe, Asia and Africa, Sonoco leverages a global network of manufacturing facilities, recycling centers and distribution channels to meet the demands of multinational and regional customers. 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 Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Investor releaseQuarter not tagged2026-07-24

Sonoco Earnings Beat Estimates on Productivity in Q2, Sales Miss

Zacks
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.Including one-time items, the company reported earnings of $1.05 per share from continuing operations compared with 69 cents in the year-ago quarter. Including discontinued operations, second-quarter 2026 earnings were $1.05 compared with $4.96 in the year-ago quarter. Sonoco Products Company price-consensus-eps-surprise-chart | Sonoco Products Company Quote Net sales of $1.885 billion declined 1.3% year over year and missed the consensus mark of $1.886 billion by 0.05%. SON’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. The profitability performance program delivered $10 million in savings during the quarter. Annualized savings reached approximately $38 million, representing 25% of the minimum target under Sonoco’s three-year goal of $150-$200 million. The cost of sales was $1.49 billion, down 0.7% from the year-earlier quarter. Gross profit totaled $392 million, declining 3.4% year over year. The gross margin was 20.8% compared with 21.3% in the prior-year quarter.Selling, general and administrative expenses amounted to $200 million, down 8.5% year over year.Adjusted operating income was $242 million, down 1.8% from the prior-year quarter’s $246.9 million. The adjusted operating margin was 12.9%, broadly unchanged year over year.Adjusted EBITDA was $324 million, down 1.2% from the year-ago quarter. The Consumer Packaging segment’s net sales rose 1.2% year over year to $1.24 billion. The increase reflected pricing actions to offset inflation and tariff-related costs, along with favorable foreign-currency movements, partially offset by softer volumes. The segment’s adjusted EBITDA amounted to $206.7 million, down 3.1% from the prior-year quarter.Net sales in the Industrial Paper Packaging segment were $643.6 million, reflecting year-over-year growth of 4.2%. The increase was driven by successful pricing actions and favorable foreign exchange. Adjusted segment EBITDA totaled $122.2 million, up 2.9% year over year, a…Read full document

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.Including one-time items, the company reported earnings of $1.05 per share from continuing operations compared with 69 cents in the year-ago quarter. Including discontinued operations, second-quarter 2026 earnings were $1.05 compared with $4.96 in the year-ago quarter. Sonoco Products Company price-consensus-eps-surprise-chart | Sonoco Products Company Quote Net sales of $1.885 billion declined 1.3% year over year and missed the consensus mark of $1.886 billion by 0.05%. SON’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. The profitability performance program delivered $10 million in savings during the quarter. Annualized savings reached approximately $38 million, representing 25% of the minimum target under Sonoco’s three-year goal of $150-$200 million. The cost of sales was $1.49 billion, down 0.7% from the year-earlier quarter. Gross profit totaled $392 million, declining 3.4% year over year. The gross margin was 20.8% compared with 21.3% in the prior-year quarter.Selling, general and administrative expenses amounted to $200 million, down 8.5% year over year.Adjusted operating income was $242 million, down 1.8% from the prior-year quarter’s $246.9 million. The adjusted operating margin was 12.9%, broadly unchanged year over year.Adjusted EBITDA was $324 million, down 1.2% from the year-ago quarter. The Consumer Packaging segment’s net sales rose 1.2% year over year to $1.24 billion. The increase reflected pricing actions to offset inflation and tariff-related costs, along with favorable foreign-currency movements, partially offset by softer volumes. The segment’s adjusted EBITDA amounted to $206.7 million, down 3.1% from the prior-year quarter.Net sales in the Industrial Paper Packaging segment were $643.6 million, reflecting year-over-year growth of 4.2%. The increase was driven by successful pricing actions and favorable foreign exchange. Adjusted segment EBITDA totaled $122.2 million, up 2.9% year over year, as productivity and procurement savings helped offset higher raw-material, freight and other operating costs. The operating cash flow reached a second-quarter record of $301 million, up 56% year over year. The free cash flow climbed 139% to $237 million, reflecting disciplined working-capital management and a capital expenditure of $64 million.Cash and cash equivalents were $168.6 million at the quarter-end, down from $378.4 million at the end of the prior-year quarter. Total debt and net debt stood at $4.5 billion and $4.3 billion, respectively, while available liquidity totaled $1.3 billion. Sonoco maintained its 2026 net sales guidance of $7.25-$7.75 billion and the adjusted EBITDA outlook of $1.25-$1.35 billion. The company also reiterated its operating cash flow forecast of $700-$800 million.Adjusted earnings guidance is pegged at $5.80-$6.20 per share, with the company continuing to expect results near the low end. Pricing actions, contract resets and productivity initiatives are expected to improve margins in the second half, although inflation and macroeconomic uncertainty remain the key risks. The company’s shares have gained 21.2% in the past year against the industry’s 5.3% decline. Image Source: Zacks Investment Research Sonoco currently has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Ball Corporation BALL is scheduled to release second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for BALL’s second-quarter 2026 earnings is pegged at 99 cents per share, suggesting year-over-year growth of 10%.The Zacks Consensus Estimate for Ball Corp’s top line is pegged at $3.67 billion, indicating growth of 9.8% from the prior-year reported figure. Ball Corp has a trailing four-quarter average surprise of 3.7%.Silgan Holdings Inc. SLGN is scheduled to release second-quarter 2026 results on July 29. The Zacks Consensus Estimate for SLGN’s second-quarter 2026 earnings is pegged at 96 cents per share, implying a year-over-year dip of 4.9%.The Zacks Consensus Estimate for Silgan Holdings’ top line is pegged at $1.62 billion, suggesting an increase of 5.1% from the prior-year reported figure. Silgan Holdings has a trailing four-quarter average surprise of 1.8%.AptarGroup, Inc. ATR is scheduled to release second-quarter 2026 results on July 30. The Zacks Consensus Estimate for AptarGroup’s second-quarter 2026 earnings is pegged at $1.34 per share, indicating a year-over-year dip of 19.3%. The Zacks Consensus Estimate for the company’s top line is pegged at $1 billion, implying growth of 3.8% from the prior-year reported figure. ATR has a trailing four-quarter average surprise of 3.1%. 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 Sonoco Products Company (SON) : Free Stock Analysis Report Silgan Holdings Inc. (SLGN) : Free Stock Analysis Report AptarGroup, Inc. (ATR) : Free Stock Analysis Report Ball Corporation (BALL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TranscriptFY2026 Q22026-07-23

FY2026 Q2 earnings call transcript

Earnings source - 121 paragraphs
Operator

Hello, everyone. Thank you for joining us, and welcome to the Sonoco Second Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. 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. Good morning, everyone. Last evening, we issued a news release and posted an investor presentation that reviews Sonoco's second 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 post a transcript later this week. If you would turn to Slide two, I'll 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. Actual results may differ materially. 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.

Roger Schrum

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 will provide prepared remarks followed by your questions. If you'll turn to Slide four in your presentation, I will now turn the call over to Howard.

Howard Coker

Thank you, Roger. Good morning, everyone. Our Sonoco team delivered solid second quarter results that met our expectations and exceeded consensus estimates as productivity and cost controls helped offset global inflation and logistics, petroleum-based chemicals and coatings and raw materials. Paul will go through the financial details, I'll concentrate my comments on the solid operating performance of our industrial and consumer segments, where we are the global leaders in uncoated recycled paper and metal and paper cans. Results from our industrial segment exceeded our expectations, with operating profits up 4% from what was a strong quarter last year and up 29% from the first quarter. The segment's improvement was driven by $16 million in productivity gains, which more than offset price cross headwinds stemming from rising costs for freight, chemicals, OCC and lumber.

Howard Coker

Driving industrial growth with strong results from our North American URB mills as trade tons were up 6.4%, which boosted mill utilization rates to 95%, the highest level in years. Much of this increased demand came from new market development, such as saturated URB for laminates as well as share gains. Reels volumes were up 10% as we continue to benefit from demand from wire and cable customers who are helping with the infrastructure build-out of data centers serving artificial intelligence investments. Overall, global industrial volume mix was flat for the quarter as the strong results from our mills were partially offset by lower demand in Latin America and some of our converting operations. On the consumer side, operating profit was off by 5% during the quarter but was up 22% sequentially from the first quarter. Productivity and cost containment initiatives boosted consumer results.

Howard Coker

Paper can volumes were up 9% in EMEA and APAC, with Asia volumes being up 29%. Overall, segment volume mix was off 1.8%, driven primarily by lower metal aerosol cans and adhesives and sealants demand in the U.S. I would add that both U.S. food can and aerosol volumes were strong last year in the second quarter, with volume mix up 6%. As shown on Slide five, global inflationary pressures driven by higher energy expenses stemming from the Middle East situation cost us roughly $10 million of operating profit in the quarter. Freight was the largest component of those cost headwinds. The raw materials were also higher, particularly OCC, which is up $40 per ton year to date to $100 a ton. While we were behind the price cost curve in Q2, recovery mechanisms are now in place to fully offset these costs.

Howard Coker

This includes an April URB and converted product price increase, which fully goes into effect third quarter, and a $60 a ton increase for URB, which went in place on July 8th. We have also implemented contracted paper can price increases globally and are adding necessary surcharges to offset higher diesel costs. I'll take a minute and turn the call over to Paul, and then I'll come back on with some thoughts regarding second half expectations.

Paul Joachimczyk

Thank you, Howard, and good morning, everyone. Before turning to the quarter, two quick reminders. First, all the results discussed today are on an adjusted basis unless otherwise noted, with a full GAAP reconciliation included in our earnings release and accompanying presentation

Paul Joachimczyk

Second, while the TFP divestiture has now fully annualized, ThermoSafe continues to affect certain year-over-year comparisons within continuing operations, and I'll provide underlying context where it is helpful. Turning to the second quarter results on slide seven. The second quarter was another quarter of solid execution in line with the priorities we outlined at Investor Day. We delivered earnings growth, generated strong cash flow, maintained margins, and continued to realize benefits from our profitability performance plan. Most importantly, these results demonstrate that the strategic actions underway across Sonoco are translating into measurable financial improvement and positioning the company for stronger long-term performance. Net sales were $1.9 billion, down 1% compared with the prior year. Pricing gains continued to provide support and helped offset softer demand in select markets, while foreign exchange was a modest tailwind during the quarter.

Paul Joachimczyk

Adjusted EBITDA was $324 million, down 1% versus the prior year. Adjusted EBITDA margin was 17.2% in line with the prior year period. Productivity, pricing actions, and early contributions from our profitability performance plan helped offset inflationary pressures and supported margin stability in the mixed demand environment. Adjusted EPS to $1.51 compared to $1.37 in the prior year, supported by the continued execution across the business, benefits from the profitability performance plans, and lower interest expense resulting from the debt reduction actions completed over the last year. Prior year second quarter results from the divested ThermoSafe businesses were $66 million of revenue, $11 million of EBITDA, and $0.08 of EPS. Excluding those results, second quarter 2026 revenue and EBITDA grew by 2% and adjusted EPS increased by 17%. Operating cash flow was also a highlight, coming in at $301 million, more than $100 million above the prior year.

Paul Joachimczyk

This performance reflects strong earnings conversion and continued discipline around working capital and capital deployment. Taken together, the quarter reinforces the strength of our operating priorities and demonstrates continued progress off of the strategy we laid out at Investor Day. Turning to the EPS bridge on slide eight, I'll take you through the primary drivers of the year-over-year improvement in earnings per share. Adjusted EPS grew $0.14 or 10% year-over-year within the business. Both the consumer and industrial segments benefited from pricing gains and productivity improvements, which helped mitigate input cost pressures and softer volume in several markets. Non-operational items also contributed meaningfully to the year-over-year improvement. Lower net interest expense provided $0.14 of a benefit, driven by debt reduction actions completed over the past year. Foreign exchange and improved tax rate and other elements also supported the EPS improvement.

Paul Joachimczyk

Our profitability performance plan contributed $0.07 during the quarter, marking the second consecutive quarter of realized benefits. This is an important proof point that the program is gaining traction and beginning to deliver the structural cost and productivity improvements we committed to at Investor Day. The key takeaway from the bridge is straightforward. While the operating environment remains uneven, our teams are executing well. Pricing, productivity, and cost discipline actions are helping offset external pressures and support continued earnings growth. While the earnings bridge highlights the benefits of those initiatives on profitability, turning those earnings into cash is equally important. Turning to the cash flow on slide nine. Cash generation remains a central priority for the company. The second quarter results were strong. Operating cash flow of $301 million was up 56%, and free cash flow of $237 million was up 139% year-over-year.

Paul Joachimczyk

Gross capital investment was $64 million, consistent with the first quarter spending levels. We continue to monitor capital spending very closely and remain focused on projects that generate attractive returns. Our capital allocation priorities remain unchanged. Fund the business, support the dividend, and continue strengthening the balance sheet through disciplined capital deployment. Turning to our segment performance on slide 10. Looking at the consumer segment first, sales increased 1% year-over-year to $1.24 billion. Despite continued demand variability in select markets, pricing discipline remained strong at plus two points, and favorable foreign exchange contributed an additional point. We are seeing volume improvements in several served markets. Looking at metal cans, we had double-digit unit growth in our pet food in EMEA, which now represents 15% of our global food can units. As Howard mentioned earlier, we are seeing strength in the paper can volumes in EMEA and APAC as well.

Paul Joachimczyk

The consumer team continues to make steady progress through pricing discipline, productivity improvements, and profitability initiatives. The team remains focused on simplifying processes, strengthening their cost structure, and improving operating performance. These actions are helping position the segment for stronger execution as we move through the balance of the year. Turning now to industrial. Industrial sales were $643 million, up 4% versus the prior year. Pricing contributed three points of growth, while favorable foreign exchange rate added another point. Volume and mix were flat as growth in the global URB reels and Industrial Plastics offset softer demand in the LATAM market and converting. Segment adjusted EBITDA increased 3% year-over-year to $122 million. The industrial segment delivered solid execution in the quarter, supported by productivity improvements, commercial initiatives, and disciplined cost management.

Paul Joachimczyk

While inflation of materials and freight and other operating costs exceeded price recovery during the quarter, productivity initiatives more than offset the remaining pressures and supported year-over-year earnings growth. Given the exit rates we are seeing in both pricing and productivity initiatives, the current actions underway position the segment as we move through the second half of the year. On the next slide, I'll take you through the progress of our profitability performance plan. On Investor Day, we outlined a three-year initiative designed to strengthen margins, simplify our operating structure, improve commercial execution, and enhance the long-term profitability and competitiveness of Sonoco. We are encouraged by the progress we've made through the first half of the year. During the second quarter, the program delivered $10 million of savings, bringing the year-to-date savings to $18 million.

Paul Joachimczyk

Annualized savings now stand at roughly $38 million for modeling purposes, representing 25% of the low end of our three-year target range. More importantly, these benefits are already visible in our financial results today and reinforce our confidence in margin improvement and earnings growth objectives we outlined at Investor Day. The progress we are seeing reflects the quality of the initiatives underway and the organization's ability to execute. While we are still early in the program, the results achieved to date are encouraging and reinforce our confidence in the path ahead. Turning now to our full year guidance on slide 12. Based on our year-to-date performance, the momentum we are seeing across our operating initiatives, and our expectations for the balance of the year, we remain confident in our ability to deliver results within our previously communicated guidance.

Paul Joachimczyk

For the full year, we continue to expect net sales of $7.25 billion-$7.75 billion, adjusted EBITDA of $1.25 billion-$1.35 billion, adjusted earnings per share of $5.80-$6.20, and operating cash flows of $700 million-$800 million. As we move through the second half of the year, our priorities remain unchanged. We are focused on executing the profitability performance plans, driving productivity improvements, maintaining pricing discipline, and strengthening the working capital performance. Sonoco is becoming a more focused, more streamlined, and more financially disciplined company. In summary, the second quarter demonstrated continued execution aligned with the priorities established at Investor Day. We generated strong cash flow, maintained our EBITDA margins, advanced our profitability performance plans, and delivered year-over-year EPS growth. Collectively, these actions are improving the quality of our earnings, strengthening the balance sheet, increasing the company's long-term value creation.

Paul Joachimczyk

We are encouraged by the momentum we have built through the first half of the year and remain focused on delivering our commitments for 2026. With that, I'll turn the call over to Howard.

Howard Coker

Thanks, Paul. To your point, Sonoco is well positioned entering the second half. Let me explain why I'm bullish, starting with our industrial side. Shown on slide 14, our team continues to ramp up production of saturated URB for a growing opportunity in high pressure laminates. Recognizing an unmet need in this market, we took more than a year of technical development, trialing, and testing to develop a recycled paper grade that can be used in making laminate products for countertops, flooring, composite boards, and decorative panels. By the end of this year, we'll be producing roughly 10,000 tons annually. With added capability, we expect to increase to 20,000 tons annually by the end of 2027. We're being conservative about this new market. We think there is additional growth potential. We will need further capacity to meet domestic demand.

Howard Coker

In addition to market leadership in URB, we also are the North American market leader in the production of nailed wood, metal, and poly-fiber reels, as shown on slide 15. In the second quarter, we completed a $20 million expansion at our Hartselle, Alabama wire and cable reels production center. This capacity addition is vitally needed to address the fast-growing wire and cable industry's demand in building out artificial intelligence data centers, along with serving the growing power grid and communication markets. Even though we increased sales by 13% and volumes 10% in the second quarter, we have been essentially sold out and needed this additional capacity to meet market demand. Currently, we're starting up new robotic equipment that will enable us to increase our nailed wood reels production by approximately 15%.

Howard Coker

Switching to our consumer packaging segment, we continue to develop new commercial opportunities through new products and market developments, as illustrated on slide 16. Our new paper can plant in Thailand, which came online in March, is continuing to ramp up production and recently started a second line that allow us to produce roughly 200 million units annually, with room for additional growth. In addition, we'll be adding new paper can production lines in South America and the U.S. in 2027 to serve growing snack customers. In Europe, Sonoco is the largest producer of metal cans, serving seafood and vegetables, which are two of the largest can markets. To improve efficiency and to meet demand in the Italian market, we're installing two new can lines to serve tomato and tuna customers.

Howard Coker

As Paul mentioned, pet food grew double digits in the quarter and represents one of the fastest-growing markets globally. We're launching new projects to grow our position, particularly in Europe. We recently opened a new metal can and ends production line in France that will enable us to work more closely in partnership with key brands and co-packers. Finally, our commercial teams have been working with our engineers as we invest to grow new products, which include examples such as Orbit easy-open closures, which make opening jars easier than regular twist closures. Eco-Fill, an easy-open feature for metal food cans, which uses less materials. New microwaveable safe metal bowls, which are a highly recyclable alternative to traditional plastic trays for ready meals and convenience foods. Finally, our proprietary GreenCan packaging innovation, featuring up to 98% paper content that is able to package a wide range of dry food products.

Howard Coker

Turning to slide 17, we are encouraged that several key indicators are strengthening in our favor as we begin our busiest period of the year. Demand for Sonoco URB in North America, as we've noted, is very strong, and our backlogs have grown, which requires that we import paper from Europe and Latin America mills all the way through the third quarter. To remind you, this is a very complex market, and this allows us to not only ensure supply security, but also enables longer sustainable grade runs in North America, which further drives our productivity. In consumer, as I mentioned, new paper can growth in Europe, Asia, South America and North America has us exploring additional capacity expansions while customer promotions and new product launches are projected to lift can volumes as we enter the important pack season in both the U.S. and EMEA.

Howard Coker

Finally, we now have in place inflation recovery mechanisms, which will help us restore our margins. While we remain mindful of external macroeconomic conditions, we are confident in our strategy, our portfolio, and ability to execute through economic cycles. With that, Operator, we'd be happy to take any questions that folks may have.

Operator

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of George Staphos with Bank of America Securities Inc. Your line is open. Please go ahead.

George Staphos

Thanks. Hi, everyone. Good morning. Thanks for the details. My two questions. Howard, over the weekend, we got some of the market commentary from the trade publications regarding some of the markets, and there was commentary that the URB market actually loosened, at least in terms of what the trade pubs were hearing from their respondents. Is there anything-- I recognize you're bringing in paper from Europe, but did any of your markets loosen? What, if anything, do you think might be observed by respondents, and I guess, do you remain comfortable with your pricing for July? The second question, as we look back at our notes and what you were talking to coming out of 1Q, looks like industrial did better. Looks like consumer maybe was a bit off from kind of your trajectory coming into 2Q. Would you agree with that?

George Staphos

Where were, if there were, some of the variances in consumer, especially in consumer volume in North America, if you can talk to that. Thank you.

Howard Coker

Sure, George. Look, no, we are not seeing any weakness in our served markets under URB. As you know, we focus on the high end of the market. Frankly, that was a bit of a surprise for us to read that. We have gained some share along the way, but I really can't comment because we, as I said in my commentary, are actually looking at backlogs all the way through the third quarter. We are bringing paper in support of demand here in North America. As I noted again in my commentary, we can serve the market. It's just when we get to these type of operating rates, in order to be as efficient as we can, it makes better sense for us to set up on our high-quality, high-performing grades and run, and fill in with material from overseas.

Howard Coker

Can't answer the question on where that data came from, because we certainly are not seeing that. On the consumer side, particularly in North America, we did see a bit of a slowdown, but it was somewhat, I would call, macro-related, particularly in adhesives and sealants. As you know, we are the largest producer of caulking cartridges, mastic cartridges in the U.S., and particularly in June, we saw a bit of a pullback. That is more of a housing-related, remodeling type. Could that be an indicator of what's to come? Maybe. That was probably the biggest. Aerosols were slightly down. We had a tough comp, for sure. The two, you can say portions of that are related to that segment, spray paints, et cetera. Other than that, things seem to be well in order. Also talked about the international side.

Howard Coker

Really strong snack performance and overall performance outside the United States that really helped balance things.

Paul Joachimczyk

Yeah, George, on the commentary too, on the URB markets, our North American mills are running at 95% utilization. Our European mills are at 92%, and we're not seeing any slowdown in there. I echo what Howard said too is, we have a very technical quality grade of paper, and our servicing industry goes out there really well. We're not seeing any slowdown in the markets that we serve today in that URB space. It is a very strong demand still.

George Staphos

Okay. I'll go back in queue. Thank you, guys.

Operator

Your next question comes from the line of Anthony Pettinari with Citi. Your line is open. Please go ahead.

Anthony Pettinari

Good morning. Just following up on George's question. I was wondering if you could talk about maybe second half volume expectations that are assumed for your full year guide, and if there's any finer point you'd put on RPC versus metal cans and any early reads on pack season, or maybe it's too soon.

Howard Coker

No, I'd say year-over-year, as we've entered the second quarter, pack season looks to be solid in both regions. What are we modeling? Low to mid-single digits on the consumer side of things year-over-year, and low single digits on the industrial side. The pack seasons are starting out pretty impressively at this point in time. We'll see if that sustains itself through the quarter.

Anthony Pettinari

Okay. That's helpful. I was wondering, over the weekend, we heard news about potential tariffs on Canadian paperboard maybe coming into place next month. I think in the past, some URB had come from Canada, and I'm just wondering, does that impact any part of your business?

Howard Coker

I would say it's still an understanding and process of how this is going to settle out. While we do cross-border, it's relatively immaterial. However, it ends up.

Anthony Pettinari

That's helpful. Got it. Thank you.

Howard Coker

Yep. Thanks, man.

Operator

Your next question comes from the line of John Dunigan with Jefferies. Your line is open. Please go ahead.

John Dunigan

Good morning, Howard, Paul, Roger. Thanks for all the details, and congrats on the solid quarter. I just wanted to touch first on the news that one of your peers, who hasn't been in URB, is now looking to add about 10% to URB capacity by the end of 2027. I'm just wondering how much of your open market tons would you say is insulated from this, and whether that be from longer-term contracts or markets like laminates that you have a clear competitive advantage. Just trying to gauge the potential impact going into next year.

Howard Coker

All right. Thanks, John. Yeah, I heard the same. What I would say is URB is a very complex market. As you're well aware, we have invested heavily. Frankly, we've been in it for over 125 years. In the last five to eight years, we have really invested in our capabilities, and one thing that we have been clear about is that we are focused on the high-end, high-quality, truly demanding markets. It's not just about the product that we produce, but it's what you behind the scenes, the service, the various applications and our deep knowledge of usage of our product and how we can solve problems for our customers. We don't target, we don't play in a commodity side of this business on a regular basis, and we are full as we can be servicing the high end of the market.

Howard Coker

We note bringing materials in from Europe, and Latin America, that's because they too can make and do make and participate in these higher end markets. Yep. I've heard that and I don't see where that has any bearing on what we do for a living.

John Dunigan

That's great to hear. Just going back to the comments on tariffs. I understand that you guys don't really ship a lot from Canada into the U.S. I believe some of your peers in Canada do. Do you think that's material enough to maybe offset the new capacity coming online from one of your U.S. competitors? Obviously, the whole situation's fluid and we got to actually see 50% tariffs on URB get implemented. I'm just wondering how much could actually be constrained if these tariffs go into place.

Howard Coker

I think first off, it depends on what the ultimate ruling is, meaning is of what's tariffed, what's not tariffed. I'm not all that familiar. I agree with you that there's a couple of folks in Canada that probably do cross border. I would imagine they participate. I would assume, in the tube and core side of things with smaller players, I'd only be speculating, there'd be a real effort there to re-qualify someone that's not been a participant in this market, to make sure they've got a product that would perform outside of the simplest grades that are available in the marketplace.

John Dunigan

Appreciate it. Thanks for the insights. I'll get back in the queue.

Howard Coker

Yep.

Operator

Your next question comes from the line of Michael Roxland with Truist Securities. Your line is open. Please go ahead.

Michael Roxland

Thank you, Howard, Paul, Roger, for taking my questions. One quick one just on your guide. Howard, based on your comments, it sounds like your guidance for the year embeds the July price increase of $60 per ton. As George knows, the trade publication didn't reflect that in the latest print. Can you help us understand any downside risk to the guide should that price increase not ultimately be implemented? Particularly, I would assume that you'd still be negative price cost if you don't get that additional 60 through. Any color you can provide on negative or downside risk to your guide should that $60 per ton not be reflected?

Howard Coker

Thanks, Michael. I'll let Paul jump in this in a little deeper, what I would say, what we really feel good about is 3Q, that we've got the recognition and pricing. While it was recognized in 2Q, contractually July 1 is when we really start seeing complete pass-through of the inflation that we have seen and the pricing that we deserve going into 3Q. I'll add to it on the consumer side, we have some major contracts that, based on our customers' financial years, were pricing in the first half of the year, was not passed that will be passing July 1, August 1 timeframe. It's on both sides of the business for the 3Q. Q4, Paul, do you have?

Paul Joachimczyk

Yeah. Michael, just I echo what Howard's saying there too, is our demand is really strong, and even though the guide came out last Friday and it didn't indicate any movement in the pricing that's out there, we're not seeing any slowdown. Our full expectations is that we will be able to pass it. Just as a reminder, we're shifting to like Tan Bending Chip as an indicator for our profitability, and a $10 movement in that is about a $10 million annualized number that's out there. Call it $2.5 million a quarter of an impact. If you do see some movement, it's hard to predict the future that's out there. Given our demand levels across our industrial space today, we are not seeing any weakening. That would help us position for a very strong pricing position on a go-forward basis.

Paul Joachimczyk

We do have that this round of price increase would impact primarily the 4Q. Given the timing and the nature of it would go live into basically starting kind of October-ish timeframe. It'd be more of a 4Q impact than it would be a 3Q impact for us.

Michael Roxland

Got it. Very clear. Appreciate the color. Then just one quick follow-up. Paul, since I have you, it seems like in terms of profitability performance, you stressed that's gaining traction, it seems like there was a little bit of a deceleration in 2Q relative to 1Q. Is that just a function of the macro higher inputs, or is there something else going on? Can you help us think about the profitability performance acceleration, in 3Q and 4Q? Thanks.

Paul Joachimczyk

Yeah. The profitability performance plans that we outlayed at Investor Day, feel really good about it. We are focusing more on kind of the back office functions in the first early phases of this, and that's really what you're seeing in that $8 million in Q1. $10 million in that's accelerating. We do have plans on the operations fronts to focus on our footprints and some more of the improvements that are out there. Those structural changes take a little bit longer to implement. We need to move lines, things of that nature. You'll see larger acceleration of the profitability performance plan kind of in Q3, Q4, and then also in 2027 and 2028 beyond. I feel really good about where we sit today, confident that the teams are doing the right things and the whole organization is focused in on it.

Howard Coker

Thank you.

Operator

Your next question comes from the line of Mark Weintraub with Seaport Research Partners. Your line is open. Please go ahead.

Mark Weintraub

Thank you. First, just one quick clarification on the URB. You talked about $10 million-ish or so. I thought, though, that some of the pricing is actually tied to OCC, not necessarily what Pulp & Paper Week is doing. Could you just sort of clarify? Recognizing the expectation is that you are going to see that pricing freeze reflected, but if it were not to be, what type of impact does it have? I think it's less than the numbers you were saying, but if you could just clarify, please.

Paul Joachimczyk

Mark. OCC is definitely an input cost that's out there, but really what we had shifted the market to is Tan Bending Chip a while ago.

Mark Weintraub

Okay.

Paul Joachimczyk

OCC will move, if it moves up or down, that's a reflection of our input costs. I think before we have said a $10 movement in OCC is a $6 million-$8 million impact on an annualized basis. Call it a million and a half to $2 million a quarter type of a number.

Mark Weintraub

Okay, got it. You have moved more to. Oh, you did say that. I'm sorry. Thank you.

Paul Joachimczyk

All good.

Mark Weintraub

Second. It's sort of interesting because you're pointing out a lot of areas where you're seeing nice growth on the consumer side and where it can make sense for you to be investing, and some of it going on right now. Yet, sort of the overall number still hasn't been very good. Are there certain areas where you would highlight where you think it's cyclical, i.e. like the building products area? Are there other areas where there are cyclical or secular concerns that are offsetting the areas where you are talking about growth? Just sort of trying to get a sense as to, with all these specific areas of opportunity, where are the risks of offset that it doesn't translate to as much upside as potentially one looking at the specifics of growth might believe is possible?

Howard Coker

Well, let me start with the positive side of things. I noted in my commentary that globally, our snack volumes have been turbocharged, if you will. 29% increase in Asia, 9% in the EMEA/APAC total region. We've talked about this in many, many calls about one of our largest customers on the consumer side that's changed hands. Prior to that, we had invested capital that kind of got put on hold. We're seeing that capital go to work now. I've had folks independently ask about, well, cup and that impact. What we're really seeing is an acceleration of market expansion from a couple of customers, actually, on an international perspective. That's really a positive thing for the rigid paper side of the business.

Howard Coker

I guess your question, as we look into the third quarter, and as I said earlier, early indicators, we're not expecting to see much improvement as it relates to the housing market related caulking cartridge, that type of business. What we're hearing from our customers is things like pet food, things like canned fish, it's a global phenomenon going on in terms of the growth rates. We're seeing tuna volumes in Europe almost outstripping our demand to the point where we're adding additional capacity. Tomatoes, similarly. Yeah, are there macro, are there weather-related issues that are unforeseen at this point in time that could come in play? That's certainly always the case, but right now, things are feeling really positive.

Paul Joachimczyk

Yeah. Mark, just to add onto that too. Last year, we had a really tough comp. We had some really strong growth in our aerosols businesses and all of those categories kind of really tied to that discretionary spend. With the variability in demand and just kind of the current macroeconomic conditions that are out there today, we did see a softness in that in the second quarter here for us. That is not dependent on our Q3 volumes. Q3 volumes are very critical for this organization, our consumer space. They are tied to pack seasons. Pack seasons, it's a little bit tied to Mother Nature out there, but early indicators, as Howard mentioned too, are really strong for us, and we're expecting a strong pack season.

Mark Weintraub

Appreciate the color.

Operator

Your next question comes from the line of Hillary Cacanando with Deutsche Bank Securities. Your line is open. Please go ahead.

Hillary Cacanando

Hi, thanks for taking my question. Just going back to the weakness in aerosols and sealants, and adhesives. Can you quantify the volume declines? I don't know if you've talked about that. I don't know if I missed it, but what was the volume decline associated with those? Did you see any improvement just exiting the month of June?

Paul Joachimczyk

Yeah. Are you saying did we see improvement in those particular markets, Hillary?

Hillary Cacanando

Yeah. In the consumer categories, those aerosol-

Howard Coker

Yeah

Hillary Cacanando

cans.

Howard Coker

On adhesives and sealants side, yeah, no, we don't have that available in terms of what-

Paul Joachimczyk

Yeah. Hillary, I'll jump in here a little bit too. On the adhesives and sealants and the aerosols, remember too, there was a

Paul Joachimczyk

a large player that exited the space in 2024. That capacity shifted over to a few markets that are in there. That did pick up

Paul Joachimczyk

Increase our volumes in 2025, which created a really tougher comp for us. I don't expect any long-term issues. It just is a comp issue from a year-over-year of as you're shifting out suppliers to those large aerosol customers, you're re-qualifying things, they're restocking your shelves, things of that nature. I'm not seeing any long-term, but now it is tied to obviously discretionary spend that's out there as well. We have to be cautious of it, but not seeing anything that's of concern for us at this point in time.

Hillary Cacanando

Okay. Got it. Then, I guess, your presentation talked about World Cup related demand and promotions boosting volumes. How much of that, I guess, is in the third quarter and fourth quarter?

Howard Coker

The World Cup volume impact is really hard to read. That would've been more of a first quarter type as our customers are building to load up. Their distribution chains. What we're really seeing is that our customers, particularly one or two in particular, are actually growing their geographic and distribution channels. We see that going on throughout this year and frankly into the coming years as well. We're just seeing an overall lift in terms of new ownership of one particular brand that is being very aggressive. Good news is we both have had invested capital that got put on hold during the sales process that is now being fully utilized. I noted Thailand as an example.

Howard Coker

With the units I noted, that represents about a third of the targeted output of that particular location, and there's more to come in other parts and regions of the world. It's not a World Cup pop. This is what we've been looking for for the last couple of, well, 18 months to two years as new ownership comes into play.

Paul Joachimczyk

Yeah. Hillary, to add onto that too, we are seeing increased promotional activity in that space as well, which is leading to higher volumes. That growth is really sitting in the international markets. You think about Europe, the Asia Pacific regions that are out there too, and seeing really strong generation for that demand. Led to, I'll say, all of those competitors in that space really promoting the product and driving the growth. That's just we write on those coattails a little bit.

Hillary Cacanando

Got it. Great. Thank you very much.

Operator

Your next question comes from the line of Ghansham Panjabi with Baird. Your line is open. Please go ahead.

Ghansham Panjabi

Yeah. Thank you. Good morning, everybody. Howard, just going back to the consumer business. I know there's a lot going on depending on specific end markets, including aerosol, et cetera. How has Eviosys been performing relative to your initial plan, including synergy realization, et cetera? It looks like it's been about 18 months since you closed on the acquisition. Just your thoughts as it relates to the franchise position there, your market share in the region, et cetera, would be helpful. Thank you.

Howard Coker

Yeah, thanks. Things are evolving nicely. It's a big acquisition. It's going to take us a while to fully settle things down. We're seeing the benefits, frankly, we said this from the very beginning, across the globe. We're seeing benefits here in North America. Certainly, incrementally every day we see improvements in Europe. Not to belabor the point, but volumes, as we've mentioned multiple times, continue to improve. Our playbook is being rolled out. It's going to be a multi-year playbook, and it's going to be global based as well. Benefit around the world. Volumes look good. Key markets, I talked about investments that we made last year that are already contributing, and I'm talking about volume-related investments as well as productivity. We have a nice funnel over the coming periods related to both growth and productivity.

Howard Coker

Feel good about how things are heading, looking forward to continued progress, frankly, from a global perspective, as these teams continue to work together to make it a much stronger business than it ever was.

Ghansham Panjabi

Thank you. In terms of URB, as it relates to the strength that you're specifically seeing, as you step back, is it a function of just tighter capacity in the industry, or improving demand? If it's improving demand, what is that specifically being driven by, you think?

Howard Coker

We talked about new markets that we've entered. Relatively, on scope and scale, small, but really what we're seeing, good share gain as well. It goes back to an earlier question. We compete with some really good competitors out there, but one thing that Sonoco has done, we've probably invested close to $200 million in our network over the last five, six, seven years, obviously including the conversion of the number 10 machine. We continue to separate ourselves from the existing competition. With that, you get market share gains. It's a combination of new products as well as doing what we do better than the rest of the market.

Paul Joachimczyk

I think one of the things too, being relatively new to this space is, the innovation that the industrial business keeps driving and keeps challenging to get into those new markets, provide the better customer service across the space, it's phenomenal. Just seeing the demand generation that they have done and been able to do in the last 12 months is great to see, and they're not stopping. They're very aggressive on working with customers to find new solutions to continue to utilize our URB mills to their fullest capacity and keep that funnel completely full.

Howard Coker

I don't want to belabor the point. We don't spend a lot of time talking about our adhesives division and the Henkel global relationship and how you take a select grade of board and ensure that it's going to be bound and wound and meet the needs of customers. It's not just making paper, it's making sure that the adhesives are absolute. It's an enabler for us to be in the saturated kraft market. It's our adhesives group working with our paper group, which is now all under one roof, to again, separate ourselves from the existing competition and allow us to enter into new markets.

Ghansham Panjabi

Okay, terrific. Thank you.

Operator

Your next question comes from the line of Matt Roberts with Raymond James. Your line is open. Please go ahead.

Matt Roberts

Roger, good morning. Second half, that inflation number came in at the high end, I think of the 8-10 since last quarter, ran up again here in July. Maybe what are you betting in 3Q in second half? Would you say your inflation outlook has improved or worsened since April, and where the greatest pressures there would be?

Paul Joachimczyk

Yeah. Matt, the inflation did come at the high end of the range at $10 million, and that was just due to, I'll call it, our inability or lack of passing the recovery through it. Q3 though, all of the recovery mechanisms, as Howard talked about it, we have contractual increases that are out there. Fully expect to cover that now as it sits today. The changes can happen in realities. There could be new issues that pop up. As we sit, we feel really confident in our Q3 recovery of that inflation, and we don't see it as a headwind on a go-forward basis.

Matt Roberts

One last clarification, not to harp on it, but what portions of the industrial paper are you able to get the list price into as of July 8? Or is it basically all tied to the Tan Bending Chip Index now that should then start layering in in October, given that one-quarter lag on those index-based contracts? Thanks again.

Howard Coker

I think we've been pretty public. About 70% is tied to index, so that's recovered day one of the following quarter. July 1 or so. The rest is open market, and those we're able to pass through a big portion of that during the course of the quarter. The real recovery starts as we enter the third quarter.

Operator

Your next question comes from the line of Gabe Hajde with Wells Fargo. Your line is open. Please go ahead.

Gabe Hajde

Good morning, guys. Thanks for taking the question. I'm going to try to put maybe a little bit of a finer point on consumer and industrial first half, second half. I think you're actually on a year-over-year basis ahead on price cost and consumer. I think, Howard, you said you've got some contracts that kind of reset effective July 1, August 1. On a year-over-year basis, it's on the first half, you're down in EBITDA terms about $20 million, all of which I think is attributable, actually a little bit more, to volume.

Gabe Hajde

It sounds like you said low single-digit year-over-year volume growth in the second half. If that's the case, then you recover, I guess maybe what you're behind on price cost or what you're envisioning for the second half, does that mean that we should get back to year-over-year growth of $20 million to $30 million in consumer in the second half? Then the URB hike, I think, Paul, $2.5 million per quarter per $10 a ton. A $15 million swing factor is what we're thinking about for Q4 should RISI not reflect the price increase. Is that directionally how you're thinking about it?

Paul Joachimczyk

Yeah. Gabe, I'll break this down. The consumer impact, you're spot on around the positive price cost sitting in consumer. With the contractual targeted increases that are out there, that will help keep that momentum out there for us and still have a positive price-cost relationship in the consumer space. On the industrial side, though, it was lagging on kind of call it the price cost recoveries that are out there, and we're seeing a little bit more stronger lift. That really had to do with the inflation that was incurred in that second quarter. Saying specifics around numbers, I'll say I'm going to stay away from that, but we do expect our Q3 to sit still right on top of consensus as it sits today. We're not seeing anything that's changing around there.

Paul Joachimczyk

The URB, though, the $15 million, it's highly dependent upon what actually happens in the market base from a pricing that's out there. If you do see a drop and we don't get any recovery, a little bit tough too to balance it out because we have such high demand in our mill utilization that's out there. It's challenging to say that that would be the impact. If it did market stop, I'd say you'd be in the right range for that for industrials.

Gabe Hajde

Okay. Thank you, Paul. Then, I appreciate a little bit of a management philosophy, but you're talking about low end of the guide for EPS and the range I appreciate is still pretty large for EBITDA for understandable reasons. Is there maybe some justification or thought behind maybe not lowering that to $1.50 to $1.30 or something like that? I don't want to put words in your mouth, but just given the volatility and seemingly things re-escalating in the Middle East, putting some upward pressure on input costs. Is there something that you see in the second half that can kind of give you still a clear path to maybe mid-range upper end of the guide? Thanks.

Paul Joachimczyk

Yeah. Gabe, honestly, Q3 is our most critical quarter for this company, and it is highly dependent upon our pack season. Right now the early indicators of the pack seasons are it's coming in strong. What I wanted to do is give us the optionality. Now after Q3 gets done, we'll be able to tighten that range up and dial it in right for the full year. Given that close to 40% of all of our profits happen in that third quarter, we wanted to keep the optionality around the range open.

Gabe Hajde

Thank you.

Operator

Your next question comes from the line of Anojja Shah with UBS. Your line is open. Please go ahead.

Anojja Shah

Hi. Good morning, everyone.

Paul Joachimczyk

Morning.

Anojja Shah

I just have a quick question. Morning. It sounds like you have the investment in saturating URB. You have some capacity expansion plans in paper cans. Given what we know now, is it correct to say that there will be a step-up in CapEx in 2027? If so, what kind of order of magnitude are we talking about?

Howard Coker

No. First off, on the paper can side of it, what we've seen from a growth perspective is actually capital that's been deployed year-to-date. Going forward, I noted multiple different projects, we're very comfortable to maintain the type of capital expenditure range that we've been in, which is roughly about 4% of our turnover, pacing ourselves through that. As we work with our customers, we think that the timing, we should not see a material step up beyond just what I said, about a 4% rate against our sales.

Anojja Shah

Okay. Thank you for that. Then just sticking with capital allocation, I know you're planning to continue paying down debt through your three-year plan for 2028, how do you think about share repurchases within there? Is there any opportunity to maybe step that up a bit over the next couple of years, or how are you thinking about that? Thanks.

Paul Joachimczyk

Yeah, no, it's a great question, honestly, we remain committed to paying down our debt. Now we do get to a spot once we get our leverage ratio to the right kind of, I'll call it targeted for the rating agencies. Our cost of debt sits around 3.5% today, if our dividend yield is north of four, now it does create a different equation for us. Now this is just math. Do we buy back shares because it's costing us more in a dividend, or do we pay down more debt? That's really an answer that we'll get to more in the 2027 and 2028 equations. We feel really good about where we sit. Share repurchases can become an option in for us in the future.

Anojja Shah

Great. Thank you. I'll turn it over.

Operator

Your next question comes from the line of John Dunigan with Jefferies. Your line is open. Please go ahead.

John Dunigan

Hey guys, thanks for the follow-up. Just looking at 3Q volumes, I get that they're much more dependent for a consumer on the pack season. But with the businesses that struggled focusing on America's sealants and aerosols in 2Q, I'm just wondering, what do you have baked into the guide? Have you lapped some of those aerosol gains that you had by this point? Specific comp issues, anything that we should think of in second half as we're modeling?

Howard Coker

Yeah, I wouldn't think so from a comp perspective. Our go forward is not to expect that we're going to see much lift. Let's don't overreact in terms of the A&S side. It represents about 15% of our turnover or so in our North America only paper can business. It's down, but it's still highly active. It's just not meeting our original expectations. If we go into the second half, we're not planning on any material improvements that's built into our guide.

John Dunigan

Great, thanks. I just wanted to touch quickly on the freight surcharge opportunities that you called out in the deck. Just wondering what the opportunities are. Is this contractual price recovery that you guys are able to implement, have implemented? I would think it's going back up. Maybe you could just touch on how your freight is. Is it mostly spot contracted? I'm thinking particularly on the URB side where you guys are running particularly tight and having to import tons from abroad.

Howard Coker

Mostly contracted and balanced with some spot, to answer that side of it first. We are just simply putting in surcharges. There will be an exception here and there, but for the most part, and this is not new to the world, it's a line item at the bottom of the invoice that says freight and fuel surcharge, and it'll come and go as diesel varies.

John Dunigan

Understood. Thank you guys for the insight.

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

Again, I want to thank everybody's participation today and look forward to further communication during the next quarter. You can now hang up.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.

Investor releaseQuarter not tagged2026-07-22

Sonoco Products Q2 Adjusted Earnings Rise, Revenue Falls; Reaffirms 2026 Guidance

MT Newswires

Sonoco Products (SON) reported Q2 adjusted earnings late Wednesday of $1.51 per diluted share, up fr

As of 2026-09-05 • Updated weeklySource: Earnings sourceIngestion runbook