Sonoco’s Q1 2026 performance shows $67.6 million in net income

Sonoco Products Company reported its financial results for the first quarter ended March 29, 2026, showing mixed performance amid changing market conditions. The company’s business, including its aluminium and metal packaging segment, continued to face shifting demand and cost pressures.

Net sales stood at USD 1.7 billion, slightly down by 1.9 per cent compared to the same period in 2025. The decline was mainly due to the divestment of its ThermoSafe packaging business, along with lower volumes. However, price increases and favourable exchange rates provided some support.

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Net income rose to USD 67.6 million from USD 54.4 million a year earlier. Diluted earnings per share increased to USD 0.68 from USD 0.55. Operating profit remained nearly unchanged at USD 127.1 million. On an adjusted basis, operating profit was USD 200.8 million, while adjusted EBITDA came in at USD 276.5 million.

The company reported a net cash outflow of USD 367.9 million from operating activities. This included around USD 103 million in one-time tax payments linked to earlier business divestments. Cash and cash equivalents declined to USD 224 million, while total debt increased to USD 4.7 billion, partly due to working capital needs in its metal packaging segment.

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In terms of segments, Consumer Packaging reported a 2.9 per cent rise in sales to USD 1.1 billion, supported by pricing actions. However, profits declined due to softer volumes. Industrial Paper Packaging sales fell slightly to USD 579 million, with lower volumes affecting margins. A fire at a recycling facility in South Carolina also impacted performance.

The company maintained its full-year guidance, projecting adjusted EBITDA between USD 1.25 billion and USD 1.35 billion, and operating cash flow between USD 700 million and USD 800 million. It expects earnings per share to be at the lower end of the earlier forecast range of USD 5.80 to USD 6.20.

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During the quarter, Sonoco opened a new paper can facility in Thailand aimed at making more than 200 million units of stacked chips in the Asian market. They also announced a USD 20 million investment to expand production capacity in Alabama.

Howard Coker, President and CEO of the company, said. “In addition to funding our growth and promoting productivity savings, our disciplined capital allocation strategy remains focused on reducing debt and returning capital to our shareholders.”