Sonoco reported second-quarter 2026 results with net sales of $1.885 billion and GAAP net income attributable to Sonoco of $105 million, or $1.05 diluted EPS. Adjusted net income rose to $151 million, producing adjusted diluted EPS of $1.51, while adjusted EBITDA for the quarter was $324 million. The company generated a record quarterly operating cash flow of $301 million and reaffirmed full-year 2026 guidance for sales, adjusted EBITDA, adjusted EPS and operating cash flow.

Financial Highlights

  • Revenue: Net sales of $1,885 million for the quarter ended June 28, 2026 (down 1.3% year-over-year).
  • Gross profit: Reported gross profit of $392.4 million for the quarter (as disclosed in condensed statements).
  • Operating income: GAAP operating profit of $193 million for the quarter; adjusted operating profit of $242 million.
  • Net income and EPS: GAAP net income attributable to Sonoco of $105 million, or $1.05 diluted EPS; adjusted net income of $151 million, adjusted diluted EPS of $1.51.
  • Cash flow and non-GAAP metrics: Adjusted EBITDA of $324 million for the quarter; record operating cash flow of $301 million in Q2 and free cash flow of $237 million for the quarter; six-month adjusted EBITDA of $601 million and year-to-date free cash flow of $(191) million.

Business Highlights

  • Industrial Paper Packaging strength: Segment net sales rose to $643 million (up 4.2% year-over-year) with segment operating profit up 4% versus prior year and mill utilization increased to 95% driven by a 6% growth in North America uncoated recycled paperboard trade ton sales.
  • Paper cans momentum: EMEA/APAC paper can volumes increased 9% due to higher snack demand; Consumer segment sequentially improved (operating profit up ~22% sequentially from Q1).
  • Productivity and cost actions: Company-wide productivity gains, fixed cost reductions and procurement savings helped offset inflationary pressures in logistics, chemicals, resins and other raw materials.
  • Portfolio and structural changes: Following 2025 divestitures, Industrial Plastics was folded into the Industrial segment effective January 1, 2026; ThermoSafe and TFP divestitures impacted year-over-year comparatives and generated one-time tax payments in 2026.
  • Capacity and demand outlook: Management cited strong URB demand in North America, import needs from Europe and Latin America mills through Q3, and plans to explore capacity expansion for paper cans in Europe, Asia and South America ahead of seasonal pack demand.

Original SEC Filing:

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