Sonoco Q2 sales reach USD 1.9 billion as metal packaging demand improves

Sonoco Products Company reported higher second-quarter sales as gains in its industrial packaging business and improving metal packaging demand helped offset inflationary pressures and softer volumes in parts of its consumer packaging operations.

The global packaging producer posted net sales of USD 1.9 billion for the quarter ended June 28, 2026.

GAAP net income declined to USD 105 million, or USD 1.05 per diluted share, from USD 493 million, or USD 4.96 per diluted share, in the same period last year, when results included a USD 425 million gain from the sale of its Thermoformed and Flexibles Packaging and Trident businesses.

Excluding one-off items, adjusted net income increased 10.6 per cent year on year to USD 151 million, while adjusted diluted EPS rose to USD 1.51.

Metal packaging demand shows signs of recovery

Within the Consumer Packaging business, paper can volumes in Europe, the Middle East, Africa and Asia-Pacific increased 9 per cent, supported by stronger snack demand.

Overall consumer packaging volumes declined 1.8 per cent, mainly due to lower demand for metal aerosol cans and adhesive and sealant tubes. However, productivity improvements and tighter cost control helped limit the impact on profitability.

Looking ahead, the company expects customer promotions and new product launches to lift demand for both paper and metal cans during the second half of the year, particularly through the seasonal packing period in the US and EMEA.

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Industrial packaging exceeds expectations

The Industrial Paper Packaging segment delivered better-than-expected results.

North American uncoated recycled paperboard (URB) trade volumes rose 6 per cent, lifting mill utilisation to 95 per cent.

Industrial segment net sales increased 4.2 per cent year on year to USD 643 million, supported by pricing actions and favourable foreign exchange movements.

Operating profit in the segment rose 4 per cent from the previous year and 29 per cent compared with the first quarter, driven by procurement savings, productivity gains and lower fixed costs.

Record cash generation

Sonoco generated a record quarterly operating cash flow of USD 301 million, while free cash flow reached USD 237 million, representing increases of 56 per cent and 139 per cent, respectively, from the prior-year period.

For the first half of 2026, operating cash flow reflected a USD 67 million outflow, compared with USD 15 million in the same period last year, primarily due to approximately USD 103 million in one-time tax payments linked to business divestitures completed in 2025 and seasonal working capital requirements for its metal packaging business.

The company ended the quarter with USD 1.3 billion in liquidity, including USD 169 million in cash and cash equivalents.

President and Chief Executive Officer Howard Coker said demand for recycled paperboard remained strong as the company expanded into new markets, while improving paper and metal can demand is expected to support performance during the second half of the year. 

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