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Sonoco Earnings Beat Estimates in Q1 on Pricing & Productivity
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Key Takeaways
SON Q1 EPS of $1.20 beat estimates, but fell 13% y/y.
Pricing and productivity offset weaker volumes and divestiture-related sales decline.
SON targets the low end of its 2026 EPS outlook, citing inflation pressures and softer demand.
Sonoco Products Company (SON - Free Report) delivered adjusted earnings of $1.20 per share in the first quarter of fiscal 2026, topping the Zacks Consensus Estimate of $1.19 by 0.84%. The figure declined 13% from $1.38 in the year-ago quarter.
Net sales were $1.68 billion, declining 1.9% year over year and lagging the Zacks Consensus Estimate of $1.71 billion by 1.95%. Pricing actions and productivity were key offsets to softer volume/mix during the quarter.
SON’s top line dipped from the prior-year period primarily due to the absence of sales from the ThermoSafe temperature-assured packaging business, which was divested in November 2025. The higher prices implemented to offset inflation and tariffs, along with a favorable foreign-exchange impact, helped cushion the effects of lower volume/mix.
The company reported adjusted EBITDA of $277 million for the quarter compared with the prior-year quarter’s $338 million.
Sonoco Products Company Price, Consensus and EPS Surprise
SON’s Consumer Packaging segment posted net sales of $1.1 billion, up 2.9% year over year, reflecting price increases and favorable currency movements. However, profitability metrics in the segment softened, with segment operating profit of $125.6 million, down 10.7% year over year as softer volumes weighed on the results.
The Industrial Paper Packaging segment remained under pressure from volume/mix declines. Net sales were $579.4 million, down 1.4% from the year-ago quarter, as price gains were more than offset by weaker demand and mix. Segment operating profit came in at $69.2 million, down 9.3% year over year. Sonoco also cited losses tied to a fire at a recycling facility in Greenville, SC, as an added headwind for the segment’s profitability.
SON Balance Sheet Update
Sonoco’s cash flow profile in the quarter was shaped by seasonality and one-time items. Net cash used by operating activities was $367.9 million, including roughly $103 million of one-time taxes paid in 2026 tied to gains from the 2025 divestitures of the Thermoformed and Flexibles Packaging and global Trident businesses, and ThermoSafe. The free cash flow was $428.3 million, reflecting $60.4 million of net capital expenditure during the period.
Cash and cash equivalents ended the quarter at $224.5 million, down from $378.4 million at the end of 2025. Total debt was $4.7 billion and net debt was $4.5 billion as of March 29, 2026. SON reported available liquidity of $1.1 billion, consisting of $0.9 billion of revolver capacity and cash on hand.
Sonoco Holds 2026 Outlook, Targets Low-End EPS
SON maintained its 2026 net sales outlook of $7.25-$7.75 billion and reiterated the adjusted EBITDA guidance of $1.25-$1.35 billion. The company also kept its operating cash flow view at $700-$800 million, which includes payments of prior-year taxes on gains from divestitures and restructuring costs.
The notable change was in earnings cadence expectations. Management said it is targeting the low end of its prior adjusted EPS target of $5.80-$6.20, citing higher-than-expected inflation affecting energy, logistics, chemicals, resins and other inputs, along with the potential for softer industrial and consumer demand in an uncertain macroeconomic and geopolitical environment.
SON’s Price Performance
The company’s shares have gained 31.2% in the past year against the industry’s 3.2% decline.
AptarGroup, Inc. (ATR - Free Report) is scheduled to release first-quarter 2026 results on April 30. The Zacks Consensus Estimate for ATR’s first-quarter 2026 earnings is pegged at $1.15 per share, indicating a year-over-year dip of 4.2%.
The consensus estimate for AptarGroup’s top line is pegged at $963 million, indicating an increase of 8.5% from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 3.1%.
Silgan Holdings (SLGN - Free Report) is scheduled to report first-quarter 2026 results on April 29. The Zacks Consensus Estimate for SLGN’s first-quarter 2026 earnings is pegged at 74 cents per share, indicating a year-over-year dip of 9.8%.
The consensus estimate for Silgan’s top line is pegged at $1.49 billion, indicating an increase of 1.8% from the prior year’s actual. SLGN has a trailing four-quarter average earnings surprise of 1.8%.
Crown Holdings (CCK - Free Report) is set to release first-quarter 2026 results on April 27. The Zacks Consensus Estimate for Crown Holdings’ first-quarter 2026 earnings is pegged at $1.75 per share, suggesting year-over-year growth of 4.8%. The consensus estimate for Crown Holdings’ revenues is pegged at $3.02 billion, indicating a 4.5% increase from the prior-year quarter. CCK has a trailing four-quarter average earnings surprise of 17.2%.
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Sonoco Earnings Beat Estimates in Q1 on Pricing & Productivity
Key Takeaways
Sonoco Products Company (SON - Free Report) delivered adjusted earnings of $1.20 per share in the first quarter of fiscal 2026, topping the Zacks Consensus Estimate of $1.19 by 0.84%. The figure declined 13% from $1.38 in the year-ago quarter.
Net sales were $1.68 billion, declining 1.9% year over year and lagging the Zacks Consensus Estimate of $1.71 billion by 1.95%. Pricing actions and productivity were key offsets to softer volume/mix during the quarter.
SON’s top line dipped from the prior-year period primarily due to the absence of sales from the ThermoSafe temperature-assured packaging business, which was divested in November 2025. The higher prices implemented to offset inflation and tariffs, along with a favorable foreign-exchange impact, helped cushion the effects of lower volume/mix.
The company reported adjusted EBITDA of $277 million for the quarter compared with the prior-year quarter’s $338 million.
Sonoco Products Company Price, Consensus and EPS Surprise
Sonoco Products Company price-consensus-eps-surprise-chart | Sonoco Products Company Quote
Sonoco’s Segmental Performance
SON’s Consumer Packaging segment posted net sales of $1.1 billion, up 2.9% year over year, reflecting price increases and favorable currency movements. However, profitability metrics in the segment softened, with segment operating profit of $125.6 million, down 10.7% year over year as softer volumes weighed on the results.
The Industrial Paper Packaging segment remained under pressure from volume/mix declines. Net sales were $579.4 million, down 1.4% from the year-ago quarter, as price gains were more than offset by weaker demand and mix. Segment operating profit came in at $69.2 million, down 9.3% year over year. Sonoco also cited losses tied to a fire at a recycling facility in Greenville, SC, as an added headwind for the segment’s profitability.
SON Balance Sheet Update
Sonoco’s cash flow profile in the quarter was shaped by seasonality and one-time items. Net cash used by operating activities was $367.9 million, including roughly $103 million of one-time taxes paid in 2026 tied to gains from the 2025 divestitures of the Thermoformed and Flexibles Packaging and global Trident businesses, and ThermoSafe. The free cash flow was $428.3 million, reflecting $60.4 million of net capital expenditure during the period.
Cash and cash equivalents ended the quarter at $224.5 million, down from $378.4 million at the end of 2025. Total debt was $4.7 billion and net debt was $4.5 billion as of March 29, 2026. SON reported available liquidity of $1.1 billion, consisting of $0.9 billion of revolver capacity and cash on hand.
Sonoco Holds 2026 Outlook, Targets Low-End EPS
SON maintained its 2026 net sales outlook of $7.25-$7.75 billion and reiterated the adjusted EBITDA guidance of $1.25-$1.35 billion. The company also kept its operating cash flow view at $700-$800 million, which includes payments of prior-year taxes on gains from divestitures and restructuring costs.
The notable change was in earnings cadence expectations. Management said it is targeting the low end of its prior adjusted EPS target of $5.80-$6.20, citing higher-than-expected inflation affecting energy, logistics, chemicals, resins and other inputs, along with the potential for softer industrial and consumer demand in an uncertain macroeconomic and geopolitical environment.
SON’s Price Performance
The company’s shares have gained 31.2% in the past year against the industry’s 3.2% decline.
Sonoco’s Zacks Rank
SON currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Industrial Product Stocks Awaiting Results
AptarGroup, Inc. (ATR - Free Report) is scheduled to release first-quarter 2026 results on April 30. The Zacks Consensus Estimate for ATR’s first-quarter 2026 earnings is pegged at $1.15 per share, indicating a year-over-year dip of 4.2%.
The consensus estimate for AptarGroup’s top line is pegged at $963 million, indicating an increase of 8.5% from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 3.1%.
Silgan Holdings (SLGN - Free Report) is scheduled to report first-quarter 2026 results on April 29. The Zacks Consensus Estimate for SLGN’s first-quarter 2026 earnings is pegged at 74 cents per share, indicating a year-over-year dip of 9.8%.
The consensus estimate for Silgan’s top line is pegged at $1.49 billion, indicating an increase of 1.8% from the prior year’s actual. SLGN has a trailing four-quarter average earnings surprise of 1.8%.
Crown Holdings (CCK - Free Report) is set to release first-quarter 2026 results on April 27. The Zacks Consensus Estimate for Crown Holdings’ first-quarter 2026 earnings is pegged at $1.75 per share, suggesting year-over-year growth of 4.8%. The consensus estimate for Crown Holdings’ revenues is pegged at $3.02 billion, indicating a 4.5% increase from the prior-year quarter. CCK has a trailing four-quarter average earnings surprise of 17.2%.