Sonoco Products Company (SON) Q1 2026 earnings summary

Executive summary

• First quarter 2026 revenue was $1.7B, down 1.9% year-over-year, mainly due to the ThermoSafe divestiture.

• Adjusted operating profit was $201M, down 6%, and adjusted EBITDA was $277M, down 18.1%.

• Adjusted EPS was $1.20, flat year-over-year, while GAAP net income rose to $67.6M and diluted EPS to $0.68.

• Productivity savings and favorable price/cost management offset volume declines and divestiture impacts.

• Severe winter weather, macroeconomic uncertainty, and input cost inflation impacted volumes and margins.

Financial highlights

• Gross profit margin declined to 20.9% from 21.8% year-over-year.

• Operating cash flow was negative $368M, mainly due to higher taxes paid on divestiture gains.

• Free cash flow was negative $428M, impacted by $103M in one-time taxes and seasonal working capital needs.

• Dividend increased for the 43rd consecutive year, reaching $2.16 annually.

• Cash and cash equivalents at quarter-end were $224M, down from $378M at year-end 2025.

Outlook and guidance

• 2026 net revenue guidance remains $7.25–$7.75B.

• Adjusted EBITDA guidance unchanged at $1.25–$1.35B.

• Adjusted EPS projected at the low end of $5.80–$6.20 due to inflation and lower demand.

• Operating cash flow guidance unchanged at $700M–$800M, including $103M in taxes on divestiture gains.

• Focus remains on cost control, margin improvement, and capital allocation to support growth and shareholder returns.