Sonoco Products Company (SON) investor relations material

Executive summary

• Q3 net sales were $2.042B, down 4.2% YoY and 0.5% excluding prior-year ThermoSafe results; adjusted EBITDA was $352M and adjusted EPS was $1.67.

• Drought-related Consumer volume pressure and above-expectation input, freight and energy inflation weighed on results; productivity and cost controls mitigated some of the impact.

• GAAP net loss attributable to the business was $732M, or $7.36 per diluted share, largely reflecting a non-cash $829M goodwill impairment.

• Industrial remained resilient on strong URB demand; Q3 operating cash flow was $285M and net debt fell $176M.

Financial highlights

• Adjusted operating profit was $268M, down 13.1%; adjusted EBITDA was $352M, down 9.0%; adjusted net income was $167M, down 12.5%.

• Excluding prior-year ThermoSafe results of $79M revenue, $18M EBITDA and $0.13 EPS, EBITDA declined 4.3% and EPS declined 6.7%.

• Operating cash flow was $285M, down 2% YoY; free cash flow was $234M, up 2% from $230M.

• Nine-month net sales were $5.604B, down 2.6%; adjusted operating profit was $711M, adjusted EBITDA $952M and adjusted EPS $4.38.

Outlook and guidance

• Revised FY26 guidance: net sales $7.20B–$7.40B, adjusted EBITDA $1.20B–$1.25B, adjusted EPS $5.30–$5.50 and operating cash flow $600M–$650M.

• Q4 outlook calls for strong Industrial performance and more stable Consumer results; Industrial price/cost and freight recovery is expected to begin in Q4 and continue into 2027.

• Cost recovery and profitability-plan actions remain priorities; early 2027 assumptions include relatively flat volumes, with European site closures expected to add $15M–$20M to 2027 earnings.

• PPP target remains $150M–$200M over three years; nine-month savings were $34M, annualized savings $51M, with $16M generated in Q3.