Sonoco Products (SON) Q3 2026 Earnings Report

The call presented a mixed picture. Sonoco delivered Industrial sales growth, strong cash flow, debt reduction, productivity savings and continued progress on pricing and restructuring initiatives. However, these positives were offset by Consumer volume and EBITDA declines, significant weather-driven food can weakness, elevated input and freight costs, a large noncash goodwill impairment and ongoing uncertainty around the fourth quarter and 2027 outlook. Management remained confident in its strategy, but the balance of operating challenges and mitigation efforts supports a neutral overall assessment.

For the full year, Sonoco now expects net sales of $7.2 billion to $7.4 billion, adjusted EBITDA of $1.2 billion to $1.25 billion, adjusted EPS of $5.30 to $5.50 and operating cash flow of $600 million to $650 million; for the fourth quarter, Consumer is forecast to be relatively flat year-over-year, Industrial up slightly, inflation fairly well leveled out with no expectation that things get worse, and OCC flat. For 2027, the company expects relatively flat volumes year-over-year, $15 million to $20 million of savings from 2 site closures in Europe, positive price/cost recovery on the Industrial side into the first half of '27, and PPP savings incrementally higher than '26, kind of you can call it $10 million to $15 million to $20 million higher; as we get into '28, it will be higher than '27, with a steady ramp of $50 million, $60 million, $70 million, targeting in the $180 million range right in the middle of the $150 million to $200 million. Reels are expected to deliver similar type growth rates that we've seen over the last couple of years, while aerosol growth is not expected to maintain itself at a 5% to 7% but should continue to flow through it.