Sonoco Products Company (SON)

Sonoco reported a third-quarter 2026 net loss of $732 million on 21 October, caused by a non-cash goodwill impairment charge of $829 million 1.

Net sales were $2.0 billion, down 4.2 percent, driven mainly by the November 3, 2025 sale of the ThermoSafe business 1. Adjusted net income, which leaves out one-off items, was $167 million against $191 million a year earlier 1.

Chief executive Howard Coker said drought in parts of Europe and the U.S. hurt crop yields and food can demand, and that inflation in raw materials, freight and energy was worse than the company expected 1. The quarterly report adds that tighter European steel import rules limited supplies of imported tinplate and the savings expected from the Eviosys purchase 2.

The company revised its 2026 targets to net sales of $7.20 billion to $7.40 billion and adjusted EBITDA, a profit measure before interest, taxes and depreciation, of $1.20 billion to $1.25 billion 1. The open question is whether its Profitability Performance Plan of cost cuts can offset inflation, as management says it aims to do 1.

Sonoco began in Hartsville, South Carolina, in 1899 as the Southern Novelty Company, when a team of 12 people made a paper cone for winding yarn 3. It took the name Sonoco in 1923 3.

Over the decades it grew into a maker of tubes, cores, paper containers and other packaging for many industries 3. The company says it has about 22,000 employees in 265 operations in 37 countries 1.

It moved into metal packaging with an acquisition in January 2022, adding steel and aluminum cans to its older metal ends and closures products 3. It sold its U.S. BulkSak business on July 1, 2023, and its Protexic foam business on April 1, 2024 23.

The turning point came on December 4, 2024, when Sonoco bought Eviosys, Europe's leading food cans, ends and closures maker, from KPS Capital Partners for about $3.8 billion 3. The company calls it the largest deal in its history 3.

It then sold TFP to TOPPAN Holdings on April 1, 2025 for about $1.8 billion, and ThermoSafe to Arsenal Capital Partners on November 3, 2025 for $656 million in net cash 3.

Net sales from continuing operations for 2025 were $7.5 billion, up 42 percent from 2024, because Eviosys added about $2.2 billion 3. Higher selling prices added $178.0 million, while lower volumes and divestitures took away $80.9 million and $98.5 million 3.

Net income attributable to Sonoco was $1,003.0 million in 2025 against $163.9 million in 2024 3. The rise came mostly from gains on selling businesses, including TFP, which lifted income from discontinued operations by $316.0 million 3.

Consumer Packaging

Consumer Packaging makes rigid packaging in paper, metal and plastic for food, beverage, household, personal and pharmaceutical products 3. It made about 65 percent of 2025 net sales from roughly 102 plants 3.

In 2025 metal cans were about 45 percent of total net sales and rigid paper containers about 20 percent 3. Eviosys now runs as Sonoco Metal Packaging, Europe, Middle East and Africa, and the company is merging its metal and paper container units into one structure for EMEA and Asia-Pacific and another for the Americas 3.

In the latest quarter the segment had net sales of $1,396 million, down 2.9 percent, and segment operating profit of $179 million, down 14.6 percent 1. The company said weather cut seasonal vegetable harvests and metal can volumes 1.

Industrial Paper Packaging

Industrial Paper Packaging makes tubes, cores, cones, partitions, protective materials and uncoated recycled paperboard from recycled fiber 3. It made about 30 percent of 2025 net sales from about 158 plants, and tubes and cores alone were about 16 percent of the company total 3.

Sonoco runs 19 paper mills with 25 paper machines and uses about 56 percent of the paper it makes in its own packaging 3. In the latest quarter segment net sales rose 5.2 percent to $646 million, helped by price increases 1.

Management said North America trade tons of its recycled paperboard (URB) rose 10 percent from a year earlier and mill utilization was 94 percent 1. The industrial and specialty plastics business joined this segment on January 1, 2026 1.

Plants, people and rivals

About 51 percent of its facilities are in North America, 32 percent in EMEA, 11 percent in APAC and 6 percent in South America 3. The corporate offices are owned and operated in Hartsville, South Carolina 3.

Howard Coker has been president and chief executive since 2020 and joined Sonoco in 1985 3. Paul Joachimczyk became chief financial officer on June 30, 2025, and chief operating officer Rodger Fuller was to retire on April 11, 2026 3.

The annual report names no rivals, but it says Sonoco sells in highly competitive markets, among them paper, packaging, food and construction, and that losing or repricing business from large customers can move results 3.

The five largest customers made up about 23 percent of Consumer Packaging sales and 11 percent of Industrial Paper Packaging sales 3.

Current problems

The goodwill impairment of $829 million covers $802 million in the Consumer Packaging EMEA and APAC unit and $27 million in the Global Paper Products APAC unit 2. Management cut its projections for the EMEA unit after tariffs, steel import limits, inflation and a poor European harvest hit results 2.

Total debt was $4.3 billion and net debt $4.1 billion on September 27, 2026 1. On September 25, 2026 the company added $800 million in term loans and used $500 million to refinance a loan due in 2028 1.

It is also named as a potentially responsible party at several contaminated sites it does not own, where liability is shared with other parties 3.

The umbrella, in words

Most products are sold under the Sonoco, Sonotube and Sonopost trademarks, which a subsidiary, SPC Resources, Inc., manages 3. Patents are managed through another subsidiary, Sonoco Development, Inc. 3.

Exhibit 21 lists the subsidiaries, among them the Dutch holding company Conitex Sonoco Holding, 99.03 percent owned, and Crown Cans Ghana Limited, 85.2 percent owned 4. Eviosys operates inside the company as Sonoco Metal Packaging in EMEA 3.

Sonoco made additional investments in 2025 and 2024 in ISI Robotics, and in 2024 sold a 2.7 percent equity interest in Northstar 3. Chief executive Coker is the brother-in-law of chairman John Haley, a personal tie and not a company holding 3.

For the full year the company targets net sales of $7.20 billion to $7.40 billion, adjusted earnings per share of $5.30 to $5.50 and adjusted EBITDA of $1.20 billion to $1.25 billion 1. It expects cash flow from operating activities of $600 million to $650 million 1.

Finance chief Paul Joachimczyk said the company expects continued strong Industrial performance in the fourth quarter on North American demand and more stable Consumer results 1. He called recovering raw material, freight and energy costs a key priority into 2027 1.

The Profitability Performance Plan is meant to cut costs and lift productivity, and the quarterly report says additional restructuring actions are likely 12. The company kept $300 million of delayed-draw term loan capacity that it can use within 12 months 1.

The company is combining its metal and rigid paper container units into one structure for EMEA and Asia-Pacific and another for the Americas, which it believes will lead to more innovation, collaboration and growth 3. Capital spending net of asset sale proceeds was $175 million so far in 2026, against $248 million a year earlier 1.

The company paid $159 million in dividends in the first nine months of 2026, against $156 million a year earlier 1.