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October 21, 2026

Sonoco Reports Third Quarter 2026 Results

Hartsville, S.C., U.S. - Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), a Mid-cap Value global packaging company, today reported financial results for the third quarter ended September 27, 2026.
Summary:
•Net sales in the third quarter were $2.0 billion. Excluding divestitures, net sales were essentially flat
•Reported GAAP net loss of $(732) million, or $(7.36) diluted earnings per share, reflecting a non-cash goodwill impairment charge of $(829) million attributable to the Consumer EMEA/APAC and Industrial APAC businesses, compared to GAAP net income of $123 million, or $1.23 diluted earnings per share, in the same period in 2025
•Third quarter adjusted net income was $167 million or $1.67 per adjusted diluted share, compared to $191 million or $1.92 per adjusted diluted share in the same period in 2025
•Generated operating cash flow of $285 million in the third quarter, and provided $218 million of operating cash flow year-to-date, which was net of approximately $103 million in one-time taxes paid in 2026 on gains from the sales of the divested TFP and ThermoSafe businesses in 2025
Third Quarter 2026 Consolidated Results
(Dollars in millions except per share data)
Three Months EndedNine Months Ended
GAAP ResultsSeptember 27, 2026September 28, 2025ChangeSeptember 27, 2026September 28, 2025Change
Net sales1
$2,042 $2,131 (4.2)%$5,604 $5,751 (2.6)%
Net sales related to discontinued operations— — — 321 
Operating (loss)/profit1
(638)195 (427.2)%(318)497 (163.9)%
Operating profit related to discontinued operations— — — 664 
Net (loss)/income attributable to Sonoco(732)123 (695.6)%(560)671 (183.4)%
EPS (diluted)(7.36)1.23 (698.4)%(5.63)6.74 (183.5)%
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Sonoco Reports Third Quarter 2026 Results - Page 2
Three Months EndedNine Months Ended
Non-GAAP Results2
September 27, 2026September 28, 2025ChangeSeptember 27, 2026September 28, 2025Change
Adjusted operating profit1
$268 $308 (13.1)%$711 $768 (7.4)%
Adjusted EBITDA352 386 (9.0)%952 1,052 (9.5)%
Adjusted net income attributable to Sonoco167 191 (12.5)%437 464 (5.8)%
Adjusted EPS (diluted)1.67 1.92 (13.0)%4.38 4.66 (6.0)%
1Excludes results of discontinued operations.
2See the Company’s definitions of non-GAAP financial measures, explanations as to why they are used, and reconciliations to the most directly comparable GAAP financial measures later in this release.

•Third quarter 2026 net sales of $2.0 billion were down (4.2)% compared to the corresponding prior-year quarter, driven primarily by the November 3, 2025 divestiture of the ThermoSafe business. Net sales benefited from higher selling prices implemented to offset the effects of inflation and tariffs, which was partially offset by lower volume/mix.

•GAAP operating loss for the third quarter was $(638) million, which includes non-cash goodwill impairment charges of $(802) million and $(27) million, attributable to the Consumer Packaging segment’s EMEA/APAC businesses and the Industrial Paper Packaging segment’s APAC business, respectively, for a total non-cash goodwill impairment charge of $(829) million. In addition to this charge, solid productivity savings stemming from fixed cost reduction initiatives and procurement savings were more than offset by significant price/cost headwinds and lower volume/mix.

•Effective tax rates on GAAP income from continuing operations before income taxes and adjusted income from continuing operations before income taxes, were (6.4)% and 24.6%, respectively, in the third quarter, compared to 6.0% and 22.9%, respectively, in the same period in 2025.

“During the third quarter, our businesses faced a combination of external challenges. Drought conditions across parts of Europe and the U.S. impacted crop yields and pressured food can demand, while the impact of inflation on raw materials, freight, energy, and other operating costs exceeded our expectations. Through strong productivity initiatives and rigorous cost control, our teams were able to mitigate a significant portion of this impact and deliver resilient operating results,” said Howard Coker, President and Chief Executive Officer.

“Our Industrial Paper Packaging segment delivered another strong quarter, with results essentially in line with the second quarter despite a challenging operating environment. Productivity improvements remained a key driver of performance, while North America URB trade ton sales increased 10% year over year and mill utilization remained strong at 94%. Segment volume/mix was modestly positive, and additional URB pricing realized in September positions us to further offset inflationary pressures.”

“Results in Consumer Packaging fell short of expectations, as volume/mix declined 3% year over year due primarily to adverse weather conditions and unfavorable price/cost dynamics. Encouragingly, international paper can operations performed well, with double-digit volume growth year over year driven by sustained demand for snack products across emerging markets.”

Paul Joachimczyk, Sonoco’s Chief Financial Officer, added, “Our businesses once again generated strong operating cash flow in the third quarter, delivering $285 million despite seasonal working capital headwinds. Year-to-date operating cash flow includes $103 million of one-time tax payments related to gains on our 2025 divestitures. We continued to strengthen our balance sheet during the quarter, reducing total debt and net debt by $162 million and $176 million, respectively, while successfully refinancing an $800 million term loan. The refinancing extends our maturity
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Sonoco Reports Third Quarter 2026 Results - Page 3
profile and enhances our financial flexibility, positioning us well to continue executing our capital allocation priorities while maintaining our investment grade credit ratings.”

Third Quarter 2026 Segment Results
(Dollars in millions except per share data)

Sonoco reports its financial results in two reportable segments: Consumer Packaging (“Consumer”) and Industrial Paper Packaging (“Industrial”).

As previously announced, effective January 1, 2026, results of the Company’s industrial and specialty plastics business (“Industrial Plastics”), the only business remaining in the All Other group of businesses following the November 2025 divestiture of ThermoSafe, are now included in the Industrial segment. Therefore, the Company no longer provides results of the All Other group of businesses.

Three Months EndedNine Months Ended
Consumer
September 27, 2026September 28, 2025ChangeSeptember 27, 2026September 28, 2025Change
Net sales1
$1,396 $1,438 (2.9)%$3,735 $3,732 0.1 %
Segment operating profit1
$179 $209 (14.6)%$456 $510 (10.6)%
Segment operating profit margin1
12.8 %14.5 %12.2 %13.7 %
Segment Adjusted EBITDA1, 2
$237 $260 (8.8)%$620 $663 (6.4)%
Segment Adjusted EBITDA margin1, 2
17.0 %18.0 %16.6 %17.8 %

•Consumer segment net sales were down (2.9)%, as adverse weather conditions impacted seasonal vegetable harvests in EMEA and Americas reducing metal cans volumes. This headwind more than offset pricing actions implemented to recover inflation and tariff-related costs, along with the negative impact of foreign exchange.
•Segment operating profit and adjusted EBITDA declined as strong productivity savings and cost containment actions were more than offset by inflation-driven price/cost headwinds and the previously described negative volume/mix.
    
Three Months EndedNine Months Ended
Industrial
September 27, 2026September 28, 2025ChangeSeptember 27, 2026September 28, 2025Change
Net sales3
$646 $614 5.2 %$1,869 $1,819 2.7 %
Segment operating profit3
$88 $94 (6.2)%$247 $256 (3.7)%
Segment operating profit margin13.6 %15.3 %13.2 %14.1 %
Segment Adjusted EBITDA2, 3
$122 $127 (4.6)%$344 $354 (2.9)%
Segment Adjusted EBITDA margin2
18.8 %20.8 %18.4 %19.4 %
•Industrial segment net sales increased 5.2% to $646 million, primarily due to successful pricing actions implemented to help offset rising costs.
•Segment operating profit and adjusted EBITDA declined as pricing actions and productivity initiatives were more than offset by rising raw material, freight and energy costs. Operating margin remained resilient at 13.6%, compared with the second quarter but down from a record 2025 third quarter, while adjusted EBITDA margin was 18.8%.

1 Excludes results of discontinued operations.
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2 Segment adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See the Company’s reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures later in this release.
3 Net sales, segment operating profit, and segment adjusted EBITDA for the three months ended September 28, 2025 include results from Industrial Plastics of $29 million, $4 million, and $5 million, respectively, previously included in All Other, to provide clearer year-over-year comparisons.

Balance Sheet and Cash Flow Highlights

•The Company maintained strong liquidity of $1.3 billion at September 27, 2026, consisting of $1.1 billion of available borrowing capacity under its revolving credit facility and cash on hand.
•Cash and cash equivalents were $183 million as of September 27, 2026, compared to $378 million, as of December 31, 2025.
•Total debt and net debt were $4.3 billion and $4.1 billion, respectively, as of September 27, 2026, primarily reflecting seasonal working capital requirements within the Company's metal packaging business.
•Year-to-date cash flow from operating activities for the period ended September 27, 2026 provided $218 million, compared to $277 million in the same period of 2025. The main drivers of the year-over-year change in operating cash flow were a one-time payment of taxes in 2026 on the gains from the 2025 divestitures of the TFP and ThermoSafe businesses and the seasonal need for working capital for the Company’s metal packaging business.
•Capital expenditures, net of proceeds from sales of fixed assets, for 2026 were $175 million, compared to $248 million last year.
•Free Cash Flow for the period ended September 27, 2026 improved to $43 million compared to $29 million in the same period in 2025, reflecting the factors impacting operating cash flow discussed above.
•The Company returned $159 million to shareholders through dividends during the first nine months of 2026, compared to $156 million in the prior year period.
•On September 25, 2026, Sonoco amended a credit agreement, resulting in the addition of $800 million in new term loan facilities. The Company drew $500 million from the new facilities to refinance an existing $500 million term loan which was to mature in 2028. The Company retained $300 million in delayed-draw term loan capacity, which it can use within 12 months.

Guidance(1)     

Revised Full-Year 2026
•Net Sales: $7.20 billion to $7.40 billion
•Adjusted EPS(2): Targeting diluted earnings per share between $5.30 to $5.50
•Adjusted EBITDA(2): Targeting $1.20 billion to $1.25 billion
•Cash flow from operating activities: Guidance adjusted to $600 million to $650 million, including the effect of payments of prior year taxes on gains from divestitures and restructuring costs

Commenting on Sonoco’s outlook, Howard Coker said, “While our third-quarter performance fell short of our expectations, we are taking targeted actions through our Profitability Performance Plan to further reduce costs, improve productivity and address the impact of inflationary pressures. We believe these efforts will better position the Company when market conditions improve. We remain confident in our value-added packaging strategy, our market-leading portfolio of industrial and consumer assets, and the ability of our customer- and quality-focused employees to execute through economic cycles.”

Joachimczyk added, “In the fourth quarter of 2026, we expect continued strong performance from our Industrial segment, supported by continued robust URB demand in North America. We also anticipate more stable performance from our Consumer segment, driven by continued growth in international paper cans and a more balanced performance in aerosol and food can volumes. Finally, recovering raw material, freight, energy, and other operating costs remains a key priority as we close out 2026 and head into 2027.”
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Sonoco Reports Third Quarter 2026 Results - Page 5
(1)Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the future performance of the overall economy, the effects of tariffs, trade policy and inflation, the challenges in global supply chains, potential changes in raw material prices, other costs, and the Company’s effective tax rate, as well as other risks and uncertainties, including those related to the integration of Eviosys and those described below, actual results could vary substantially. Further information can be found in the section entitled “Forward-looking Statements” in this release.

(2) Full year 2026 GAAP guidance is not provided in this release due to the likely occurrence of one or more of the following, the timing and magnitude of which we are unable to reliably forecast without unreasonable efforts: restructuring costs and restructuring-related impairment charges, acquisition/divestiture-related costs, gains or losses from the sale of businesses and the income tax effects of these items and/or other income tax-related events. These items could have a significant impact on the Company’s future GAAP financial results. Accordingly, quantitative reconciliations of Adjusted EPS and Adjusted EBITDA guidance to the nearest comparable GAAP measures have been omitted in reliance on the exception provided by Item 10 of Regulation S-K.    


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Sonoco Reports Third Quarter 2026 Results - Page 6
About Sonoco
Sonoco (NYSE: SON) is a Mid-cap Value global packaging company. With sales of $7.5 billion from continuing operations in 2025, the Company has approximately 22,000 employees working in 265 operations in 37 countries, serving some of the world’s best-known brands. Guided by our purpose of Better Packaging. Better Life., we strive to foster a culture of innovation, collaboration and excellence to provide solutions that better serve all our stakeholders and support a more sustainable future. A Fortune 500 company, Sonoco was proudly named one of the World’s Most Admired Companies by Fortune in 2026 as well as one of America’s Most Trustworthy and Responsible Companies by Newsweek and USA Today’s Climate Leaders in 2025. For more information on the Company, visit our website at www.sonoco.com.
Forward-looking Statements
Statements included herein that are not historical in nature, are intended to be, and are hereby identified as “forward- looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “achieve,” “anticipate,” “believe,” “can,” “continue,” “continuing,” “could,” “deliver,” “enhance,” “expect,” “forecast,” “focus,” “future,” “goal,” “guidance,” “improvement,” “likely,” “may,” “might,” “ongoing,” “outlook,” “plan,” “position,” “projected,” “remain,” “seek,” “should,” “strategy,” “target,” “will,” “would,” “working,” or the negative thereof, and similar expressions identify forward-looking statements.
Forward-looking statements in this communication include statements regarding, but not limited to: the Company’s future operating and financial performance, including full year 2026 outlook and the anticipated drivers thereof and cash flow in 2026; the expected benefits of refinancing debt, including the Company’s ability to continue executing on its capital allocation priorities while maintaining its investment grade credit ratings; the Company’s ability to reduce costs, improve productivity and address the impact of inflationary pressures, including through its profitability performance plan, and the expected benefits thereof; the Company’s ability to execute through economic cycles, including as a result of its packaging strategy, its portfolio of industrial and consumer assets, and the ability of its customer- and quality-focused employees; the continued strong performance of the Company’s Industrial segment in the fourth quarter of 2026 and the anticipated drivers thereof; the performance of the Company’s Consumer segment and the anticipated drivers thereof; the continued focus on recovering raw material, freight, energy and other operating costs; and the effects of the changing macroeconomic and geopolitical environment, including trade policies and tariffs, market conditions, inflation and interest costs on the Company, its supply chain and its customers, and the Company’s ability to manage risks related thereto.
Such forward-looking statements are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements.
Such risks, uncertainties and assumptions include, without limitation, those related to: the Company’s ability to execute on its strategy, including with respect to the integration of the Eviosys operations, divestitures, cost management, productivity improvements, restructuring and capital expenditures, and achieve the benefits it expects therefrom; conditions in the credit markets; the ability to retain key employees and successfully integrate Eviosys; the ability to realize estimated cost savings, synergies or other anticipated benefits of the Eviosys acquisition, or that such benefits may take longer to realize than expected; diversion of management’s attention; the potential impact of the consummation of the Eviosys acquisition on relationships with clients and other third parties; lower-than-projected financial performance of the Company’s European business, including as a result of loss or reduction in business from key customers, changes in our pricing model, or adverse changes in the macroeconomic or competitive environment in European markets; risks related to the impairment of goodwill and other intangibles; the operation of new manufacturing capabilities; the Company’s ability to achieve anticipated cost and energy savings; the availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariff or other trade policies or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflicts between Russia and Ukraine and in the Middle East, the potential escalation of tensions between China and Taiwan and recent events in Venezuela), and the Company’s ability to continue to pass raw material, energy and transportation price increases and surcharges
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Sonoco Reports Third Quarter 2026 Results - Page 7
through to customers or otherwise manage these commodity pricing risks; the costs of labor; the effects of inflation, changes related to tariffs or other trade policies and global regulations, as well as the overall uncertainty surrounding international trade relations; fluctuations in consumer demand, volume softness, and other macroeconomic factors on the Company and the industries in which it operates and that it serves; the impact of changing laws and regulations, in the United States, on the Company; the Company’s ability to meet its environmental, sustainability and similar goals and other social and governance goals, including challenges in implementation thereof; natural disasters, severe weather events, and other unexpected disruptions to facility operations; and the other risks, uncertainties and assumptions discussed in the Company’s filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q, particularly under the heading “Risk Factors.” The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur.
References to our Website Address
References to our website address and domain names throughout this release are for informational purposes only, or to fulfill specific disclosure requirements of the Securities and Exchange Commission’s rules or the New York Stock Exchange Listing Standards. These references are not intended to, and do not, incorporate the contents of our website by reference into this release.
Earnings Conference Call Webcast
Sonoco’s management will host a conference call to discuss its third quarter 2026 results on Thursday, October 22, 2026, at 8:00 a.m. Eastern Time. The Company will provide prepared remarks, a presentation and host a question-and-answer session during the call. A live audio webcast of the call along with supporting materials will be available on the Sonoco Investor Relations website at https://investor.sonoco.com/. A webcast replay will be available on the Company’s website for at least 30 days following the call.
Time:Thursday, October 22, 2026, at 8:00 a.m. Eastern Time
Audience
Dial-In:
To listen via telephone, please register in advance at:
https://events.q4inc.com/analyst/818434126?pwd=xd1mxKQr

After registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call.
Webcast Link:https://events.q4inc.com/attendee/616781198

Contact Information:
Roger Schrum
Head of Investor Relations and Communications
roger.schrum@sonoco.com    
843-339-6018
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Sonoco Reports Third Quarter 2026 Results - Page 8
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars and shares in thousands except per share data)
Three Months EndedNine Months Ended
September 27, 2026September 28, 2025September 27, 2026September 28, 2025
Net sales$2,041,575 $2,131,108 $5,603,502 $5,750,777 
Cost of sales1,636,255 1,663,757 4,460,177 4,523,462 
Gross profit405,320 467,351 1,143,325 1,227,315 
Selling, general and administrative expenses186,841 220,966 588,626 648,804 
Restructuring/Asset impairment charges, net856,435 48,388 873,501 71,721 
(Loss)/Gain on divestiture of business— (3,031)775 (9,297)
Operating (loss)/profit(637,956)194,966 (318,027)497,493 
Non-operating pension costs2,749 3,054 8,165 9,157 
Interest expense46,665 61,243 136,637 181,637 
Interest income5,223 4,634 17,938 16,104 
Other expense, net(8,271)(7,541)(26,770)(20,617)
(Loss)/Income from continuing operations before income taxes(690,418)127,762 (471,661)302,186 
Provision for income taxes44,138 7,717 93,199 68,364 
(Loss)/Income before equity in earnings of affiliates(734,556)120,045 (564,860)233,822 
Equity in earnings of affiliates, net of tax2,689 3,020 5,642 7,211 
Net (loss)/income from continuing operations(731,867)123,065 (559,218)241,033 
Net income from discontinued operations— — — 429,720 
Net (loss)/income(731,867)123,065 (559,218)670,753 
Net (income)/loss from continuing operations attributable to noncontrolling interests(235)(147)(389)17 
Net (loss)/income attributable to Sonoco$(732,102)$122,918 $(559,607)$670,770 
Weighted average common shares outstanding – diluted99,502 99,648 99,432 99,519 
Diluted (loss)/earnings from continuing operations per common share$(7.36)$1.23 $(5.63)$2.42 
Diluted earnings from discontinued operations per common share— — — 4.32 
Diluted (loss)/earnings attributable to Sonoco per common share$(7.36)$1.23 $(5.63)$6.74 
Dividends per common share$0.54 $0.53 $1.61 $1.58 


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Sonoco Reports Third Quarter 2026 Results - Page 9
CONDENSED STATEMENTS OF INCOME FOR DISCONTINUED OPERATIONS (Unaudited)
(Dollars and shares in thousands except per share data)
Three Months EndedNine Months Ended
September 28, 2025September 28, 2025
Net sales$— $320,678 
Cost of sales— 250,854 
Gross profit— 69,824 
Selling, general, and administrative expenses— 31,607 
Restructuring/Asset impairment charges, net
— 426 
Gain on divestiture of business— 625,773 
Operating profit— 663,564 
Other expense, net
— 182 
Interest expense— 24,911 
Interest income— 281 
Income from discontinued operations before income taxes— 638,752 
Provision for income taxes— 209,032 
Net income from discontinued operations— 429,720 
Net income from discontinued operations attributable to noncontrolling interests
— — 
Net income attributable to discontinued operations$— $429,720 
Weighted average common shares outstanding – diluted99,648 99,519 
Diluted earnings from discontinued operations per common share$— $4.32 













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Sonoco Reports Third Quarter 2026 Results - Page 10
FINANCIAL SEGMENT INFORMATION (Unaudited)
(Dollars in thousands)
Three Months EndedNine Months Ended
September 27, 2026September 28, 2025September 27, 2026September 28, 2025
Net sales:
Consumer Packaging$1,396,012 $1,438,246 $3,734,926 $3,731,872 
Industrial Paper Packaging645,563 613,611 1,868,576 1,818,804 
Total reportable segments2,041,575 2,051,857 5,603,502 5,550,676 
All Other— 79,251 — 200,101 
Net sales$2,041,575 $2,131,108 $5,603,502 $5,750,777 
Operating profit:
Consumer Packaging$178,563 $208,985 $455,917 $510,109 
Industrial Paper Packaging87,973 93,773 246,598 256,038 
Segment operating profit266,536 302,758 702,515 766,147 
All Other— 14,386 — 29,511 
Corporate
Restructuring/Asset impairment charges, net(856,435)(48,388)(873,501)(71,721)
Amortization of acquisition intangibles(45,633)(49,034)(135,523)(135,188)
Gain/(Loss) on divestiture of business— (3,031)775 (9,297)
Acquisition, integration, and divestiture-related costs(2,161)(9,318)(10,582)(47,745)
Other operating charges, net(263)(12,407)(1,711)(34,214)
Operating (loss)/profit$(637,956)$194,966 $(318,027)$497,493 

2025 consolidated “net sales,” “operating profit,” and Consumer Packaging “segment operating profit” do not include results of the Company’s Thermoformed and Flexibles Packaging business and global Trident business (collectively, “TFP”), which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale.

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Sonoco Reports Third Quarter 2026 Results - Page 11
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands)
Nine Months Ended
September 27, 2026September 28, 2025
Net (loss)/income$(559,218)$670,753 
Net loss/(gain) on divestiture of business, disposition of assets, and asset impairments 842,991 (601,304)
Depreciation and amortization
390,982 382,623 
Pension and postretirement plan contributions, net of non-cash expense(5,309)(3,589)
Changes in working capital(304,721)(299,650)
Changes in tax accounts(93,987)127,412 
Other operating activity(53,190)651 
Net cash provided by operating activities217,548 276,896 
Purchases of property, plant and equipment, net(174,905)(248,251)
Proceeds from the sale of business, net1
(13,076)1,814,899 
Cost of acquisitions, net of cash acquired2
— 16,528 
Net debt repayments(50,598)(1,938,409)
Cash dividends(159,182)(155,767)
Payments for share repurchases(7,192)(10,580)
Other (outflow)/inflow, including effects of exchange rates on cash(7,892)47,490 
Net decrease in cash and cash equivalents(195,297)(197,194)
Cash and cash equivalents at beginning of period378,398 443,060 
Cash and cash equivalents at end of period$183,101 $245,866 
12026 includes payments of $15,211 and $1,865 to the buyers of TFP and ThermoSafe, respectively, for final net working capital settlements on these 2025 divestitures.
22025 includes a cash receipt of $16,528 for the final net working capital settlement related to the 2024 acquisition of Eviosys.



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Sonoco Reports Third Quarter 2026 Results - Page 12
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
September 27, 2026December 31, 2025
Assets
Current Assets:
Cash and cash equivalents$183,101 $378,398 
Trade accounts receivable, net of allowances1,117,958 842,810 
Other receivables152,736 178,755 
Inventories, net1,204,570 1,121,009 
Prepaid expenses149,661 125,352 
Total Current Assets2,808,026 2,646,324 
Property, plant and equipment, net2,658,234 2,797,800 
Goodwill1,646,258 2,511,611 
Other intangible assets, net2,485,874 2,683,474 
Right of use asset-operating leases307,740 307,450 
Deferred income taxes and other assets228,809 215,675 
Total Assets$10,134,941 $11,162,334 
Liabilities and Equity
Current Liabilities:
Payable to suppliers, accrued expenses and other payables$1,803,816 $1,861,904 
Notes payable and current portion of long-term debt510,041 537,952 
Accrued taxes69,218 128,821 
Total Current Liabilities2,383,075 2,528,677 
Long-term debt, net of current portion3,781,625 3,788,973 
Noncurrent operating lease liabilities263,779 263,192 
Pension and other postretirement benefits166,115 177,976 
Deferred income taxes and other liabilities721,084 771,684 
Total Liabilities7,315,678 7,530,502 
Total Equity2,819,263 3,631,832 
Total Liabilities and Equity$10,134,941 $11,162,334 

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Sonoco Reports Third Quarter 2026 Results - Page 13
NON-GAAP FINANCIAL MEASURES

The Company’s results, determined in accordance with U.S. generally accepted accounting principles, are referred to as “as reported” or “GAAP” results. The Company uses certain financial performance measures, both internally and externally, that are not in conformity with GAAP (referred to as “non-GAAP financial measures”) to assess and communicate the financial performance of the Company. These non-GAAP financial measures, which are identified using the term “Adjusted” (for example, “Adjusted Operating Profit,” “Adjusted Net Income Attributable to Sonoco,” and “Adjusted Diluted EPS”), reflect adjustments to the Company’s GAAP operating results to exclude amounts, including the associated tax effects where applicable, relating to:
•restructuring/asset impairment charges1;
•acquisition, integration and divestiture-related costs;
•gains or losses from the divestiture of businesses;
•losses from the early extinguishment of debt;
•non-operating pension costs;
•amortization expense on acquisition intangibles;
•changes in last-in, first-out (“LIFO”) inventory reserves;
•certain income tax events and adjustments;
•derivative gains/losses;
•other non-operating income and losses; and
•certain other items, if any.

1Restructuring and restructuring-related asset impairment charges are a recurring item as the Company’s restructuring programs usually require several years to fully implement, and the Company is continually seeking to take actions that could enhance its efficiency. Although recurring, these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, the inherent imprecision in the estimates used to recognize the impairment of assets, and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur.

The Company’s management believes the exclusion of the amounts related to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business.
In addition to the “Adjusted” results described above, the Company also uses Adjusted EBITDA, Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin, and Net Debt. Adjusted EBITDA is defined as net income excluding the following: interest expense; interest income; provision for income taxes; depreciation and amortization expense; non-operating pension costs; net income/loss attributable to noncontrolling interests; restructuring/asset impairment charges; changes in LIFO inventory reserves; gains/losses from the divestiture of businesses; acquisition, integration and divestiture-related costs; other income; derivative gains/losses; and other non-GAAP adjustments, if any, that may arise from time to time. Segment Adjusted EBITDA is defined as segment operating profit plus depreciation and amortization expense and equity in earnings of affiliates, net of tax. Segment Adjusted EBITDA Margin is defined as Segment Adjusted EBITDA divided by segment net sales. Net Debt is defined as the total of the Company’s short and long-term debt less cash and cash equivalents.
Segment Adjusted EBITDA is reconciled to the closest GAAP measure of segment profitability, segment operating profit as the Company does not calculate net income by segment. Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with Accounting Standards Codification 280 - “Segment Reporting,” as prescribed by the Financial Accounting Standards Board.
Segment results, which are reviewed by the Company’s management to evaluate segment performance, do not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; acquisition, integration and divestiture-related costs; changes in LIFO inventory reserves; gains/losses from the sale of businesses; gains/losses from derivatives; or certain other items, if any, the exclusion of which the Company believes improves the comparability and analysis of the ongoing operating performance of the business. Accordingly, the term “segment operating profit” is defined as the segment’s portion of “operating profit” excluding those items. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments, except for costs related to discontinued operations.
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Sonoco Reports Third Quarter 2026 Results - Page 14
The Company’s non-GAAP financial measures are not calculated in accordance with, nor are they an alternative for, measures conforming to GAAP, and they may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles.
The Company presents these non-GAAP financial measures to provide investors with information to evaluate Sonoco’s operating results in a manner similar to how management evaluates business performance. The Company consistently applies its non-GAAP financial measures presented herein and uses them for internal planning and forecasting purposes, to evaluate its ongoing operations, and to evaluate the ultimate performance of management and each business unit against plans/forecasts. In addition, these same non-GAAP financial measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community.
Material limitations associated with the use of such measures include that they do not reflect all period costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, the calculations of these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently.
To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in evaluating the Company’s results to review both GAAP information, which includes all of the items impacting financial results, and the related non-GAAP financial measures that exclude certain elements, as described above. Further, Sonoco management does not, nor does it suggest that investors should, consider any non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever reviewing a non-GAAP financial measure, investors are encouraged to review and consider the related reconciliation to understand how it differs from the most directly comparable GAAP measure.
References to 2025 consolidated “adjusted operating profit” and “segment adjusted EBITDA” in the following tables do not include results of TFP, which was sold in April 2025 and is accounted for as discontinued operations in periods prior to the sale.













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Sonoco Reports Third Quarter 2026 Results - Page 15
QUARTERLY RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for the three-month periods ended September 27, 2026 and September 28, 2025.
Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS
For the three-month period ended September 27, 2026
Dollars in thousands, except per share dataOperating (Loss)/Profit (Loss)/Income from Continuing Operations Before Income TaxesProvision for Income Taxes Net (Loss)/Income Attributable to SonocoDiluted EPS
As Reported (GAAP)$(637,956)$(690,418)$44,138 $(732,102)$(7.36)
Acquisition, integration and divestiture-related costs1
2,161 2,161 318 1,843 0.01 
Amortization of acquisition intangibles45,633 45,633 9,938 35,695 0.36 
Restructuring/Asset impairment charges, net2
856,435 856,435 6,839 849,694 8.54 
Non-operating pension costs— 2,749 712 2,037 0.02 
Net gains from derivatives(106)(106)(26)(80)— 
Other adjustments3
1,874 1,874 (8,237)10,111 0.10 
Total adjustments905,997 908,746 9,544 899,300 9.03 
Adjusted$268,041 $218,328 $53,682 $167,198 $1.67 
Due to rounding, individual items may not sum appropriately.
1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys.
2 Restructuring/Asset impairment charges, net, primarily reflect total goodwill impairment charges of $828,875 recognized during the third quarter of 2026, including $802,000 and $26,875 for the Consumer Packaging EMEA/APAC and Global Paper Products APAC reporting units, respectively.
3 Other adjustments include discrete tax items primarily related to provision-to-return adjustments for the TFP and ThermoSafe divestitures and a retroactive U.S. tax election.



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Sonoco Reports Third Quarter 2026 Results - Page 16
For the three-month period ended September 28, 2025
Dollars in thousands, except per share dataOperating ProfitIncome from Continuing Operations Before Income TaxesProvision for Income TaxesNet Income Attributable to SonocoDiluted EPS
As Reported (GAAP)$194,966 $127,762 $7,717 $122,918 $1.23 
Acquisition, integration and divestiture-related costs1
9,318 9,318 2,377 6,941 0.07 
Amortization of acquisition intangibles49,034 49,034 10,581 38,453 0.39 
Restructuring/Asset impairment charges, net48,388 48,388 11,117 37,221 0.37 
Loss/(Gain) on divestiture of business2
3,031 3,031 27,569 (24,538)(0.25)
Non-operating pension costs— 3,054 631 2,423 0.02 
Net losses from derivatives2,035 2,035 502 1,533 0.02 
Other adjustments3
1,568 1,568 (4,652)6,220 0.07 
Total adjustments113,374 116,428 48,125 68,253 0.69 
Adjusted$308,340 $244,190 $55,842 $191,171 $1.92 
Due to rounding, individual items may not sum appropriately.
1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP.
2 Loss/(Gain) on divestiture of business includes the recognition of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale.
3 Other adjustments include an adjustment to deferred taxes from the post-acquisition restructuring of the partitions business, provision-to-return adjustments related to the divested TFP business, and an increase in the valuation allowance on foreign tax credits.



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Sonoco Reports Third Quarter 2026 Results - Page 17
Adjusted EBITDA1
Three Months Ended
Dollars in thousandsSeptember 27, 2026September 28, 2025
Net (loss)/income attributable to Sonoco$(732,102)$122,918 
Adjustments:
Interest expense46,665 61,243 
Interest income(5,223)(4,634)
Provision for income taxes44,138 7,717 
Depreciation and amortization134,857 131,656 
Non-operating pension costs2,749 3,054 
Net income attributable to noncontrolling interests235 147 
Restructuring/Asset impairment charges, net856,435 48,388 
Loss on divestiture of business
— 3,031 
Acquisition, integration and divestiture-related costs2,161 9,318 
Net (gain)/loss from derivatives(106)2,035 
Other non-GAAP adjustments1,874 1,568 
Adjusted EBITDA$351,683 $386,441 
1 For the three-month period ended September 28, 2025, adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.
Segment Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
For the Three Months Ended September 27, 2026

Dollars in thousands
Consumer
Industrial
CorporateTotal
Segment and Total Operating Profit/(Loss)1
$178,563 $87,973 $(904,492)$(637,956)
Adjustments:
Depreciation and amortization2
58,048 31,176 45,633 134,857 
Other expense, net3
— — (8,271)(8,271)
Equity in earnings of affiliates, net of tax217 2,472 — 2,689 
Restructuring/Asset impairment charges, net4
— — 856,435 856,435 
Acquisition, integration and divestiture-related costs5
— — 2,161 2,161 
Net gain from derivatives6
— — (106)(106)
Other non-GAAP adjustments— — 1,874 1,874 
Segment Adjusted EBITDA$236,828 $121,621 $(6,766)$351,683 
Net Sales$1,396,012 $645,563 
Segment Operating Profit Margin12.8 %13.6 %
Segment Adjusted EBITDA Margin17.0 %18.8 %

1As previously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment. The Company no longer reports the results of any of its businesses in All Other.
2Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $40,576 and the Industrial segment of $5,057.
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Sonoco Reports Third Quarter 2026 Results - Page 18
3These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer segment.
4Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $835,670 and the Industrial segment of $20,196.
5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $433 and the Industrial segment of $7.
6Included in Corporate are net gains from derivatives associated with the Consumer segment of $3 and the Industrial segment of $(109).

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
For the Three Months Ended September 28, 2025
Excludes results of discontinued operations
Dollars in thousands
Consumer
IndustrialAll OtherCorporateTotal
Segment and Total Operating Profit$208,985$93,773$14,386$(122,178)$194,966
Adjustments:
Depreciation and amortization1
50,41930,8961,30749,034131,656
Other expense, net2
———(7,541)(7,541)
Equity in earnings of affiliates, net of tax1902,830——3,020
Restructuring/Asset impairment charges, net3
———48,38848,388
Acquisition, integration and divestiture-related costs4
———9,3189,318
Loss on divestiture of business5
———3,0313,031
Net loss from derivatives6
———2,0352,035
Other non-GAAP adjustments———1,5681,568
Segment Adjusted EBITDA$259,594$127,499$15,693$(16,345)$386,441
Net Sales$1,438,246$613,611$79,251
Segment Operating Profit Margin14.5%15.3%18.2%
Segment Adjusted EBITDA Margin18.0%20.8%19.8%

1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $43,397, the Industrial segment of $5,485, and the All Other group of businesses of $152.
2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer segment.
3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $35,027 and the Industrial segment of $11,181.
4Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $1,293 and the Industrial segment of $97.
5Included in Corporate is a loss on divestiture of business of $31 associated with the Industrial segment related to the sale of a recycling operation in Asheville, North Carolina, and a $3,000 charge related to the divestiture of ThermoSafe, previously part of the All Other group of businesses.
6Included in Corporate are net losses from derivatives associated with the Consumer segment of $196, the Industrial segment of $1,760, and the All Other group of businesses of $79.
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Sonoco Reports Third Quarter 2026 Results - Page 19
YEAR-TO-DATE RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for the nine-month periods ended September 27, 2026 and September 28, 2025.
Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS
For the nine-month period ended September 27, 2026
Dollars in thousands, except per share dataOperating (Loss)/Profit(Loss)/Income from Continuing Operations Before Income TaxesProvision for Income Taxes
Net (Loss)/Income Attributable to Sonoco
Diluted EPS
As Reported (GAAP)$(318,027)$(471,661)$93,199 $(559,607)$(5.63)
Acquisition, integration and divestiture-related costs1
10,582 10,582 1,665 8,917 0.09 
Changes in LIFO inventory reserves5,521 5,521 1,367 4,154 0.04 
Amortization of acquisition intangibles135,523 135,523 29,738 105,785 1.06 
Restructuring/Asset impairment charges, net2
873,501 873,501 10,344 863,267 8.68 
Gain on divestiture of business, net3
(775)(775)(188)(587)(0.01)
Other expense, net4
— 6,592 — 6,592 0.07 
Non-operating pension costs— 8,165 2,106 6,059 0.06 
Net losses from derivatives61 61 15 46 — 
Other adjustments4,901 4,901 2,450 2,451 0.02 
Total adjustments1,029,314 1,044,071 47,497 996,684 10.01 
Adjusted$711,287 $572,410 $140,696 $437,077 $4.38 
Due to rounding, individual items may not sum appropriately.
1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the November 2025 divestiture of ThermoSafe.
2 Restructuring/Asset impairment charges, net, primarily reflect total goodwill impairment charges of $828,875 recognized during the third quarter of 2026, including $802,000 and $26,875 for the Consumer Packaging EMEA/APAC and Global Paper Products APAC reporting units, respectively.
3 Gain on divestiture of business, net reflects the gain of $2,640 from the sale of a recycling operation in Savannah, Georgia, partially offset by a charge of $1,865 from the final net working capital settlement related to the November 2025 divestiture of ThermoSafe.
4 Amount relates to certain pre-acquisition liabilities related to the Sonoco Metal Packaging EMEA business.
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Sonoco Reports Third Quarter 2026 Results - Page 20
For the nine-month period ended September 28, 2025
Dollars in thousands, except per share dataOperating ProfitIncome from Continuing Operations Before Income TaxesProvision for Income TaxesNet Income Attributable to SonocoDiluted EPS
As Reported (GAAP)1
$497,493 $302,186 $68,364 $670,770 $6.74 
Acquisition, integration and divestiture-related costs2
47,745 47,745 11,134 46,277 0.47 
Changes in LIFO inventory reserves1,755 1,755 433 1,322 0.01 
Amortization of acquisition intangibles135,188 135,188 29,586 105,389 1.06 
Restructuring/Asset impairment charges, net71,721 71,721 16,514 55,109 0.55 
Loss/(Gain) on divestiture of business3
9,297 9,297 28,455 (443,706)(4.46)
Non-operating pension costs— 9,157 2,190 6,967 0.07 
Net losses from derivatives1,240 1,240 306 934 0.01 
Other adjustments4
3,562 3,562 (14,456)21,064 0.21 
Total adjustments270,508 279,665 74,162 (206,644)(2.08)
Adjusted$768,001 $581,851 $142,526 $464,126 $4.66 
Due to rounding, individual items may not sum appropriately.
1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $663,564, $638,752, and $209,032, respectively.
2 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP.
3 Loss/(Gain) on divestiture of business primarily consists of the gain on the sale of TFP, included in “Net income from discontinued operations” in the Company’s Condensed Consolidated Statements of Income, and the recognition of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale.
4 Other adjustments include discrete tax items primarily related to tax rate changes, an adjustment to deferred taxes from post-acquisition restructuring of the partitions business, provision-to-return adjustments related to the divested TFP business, and an increase in the valuation allowance on foreign tax credits.

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Sonoco Reports Third Quarter 2026 Results - Page 21
Adjusted EBITDA1
Nine Months Ended
Dollars in thousandsSeptember 27, 2026September 28, 2025
Net (loss)/income attributable to Sonoco$(559,607)$670,770 
Adjustments:
Interest expense136,637 206,548 
Interest income(17,938)(16,385)
Provision for income taxes93,199 277,396 
Depreciation and amortization390,982 382,623 
Non-operating pension costs8,165 9,157 
Non-operating other expense6,592 — 
Net income/(loss) attributable to noncontrolling interests389 (17)
Restructuring/Asset impairment charges, net
873,501 72,147 
Changes in LIFO inventory reserves5,521 1,755 
Gain on divestiture of business(775)(616,476)
Acquisition, integration and divestiture-related costs10,582 60,421 
Net loss from derivatives61 1,240 
Other non-GAAP adjustments4,901 2,949 
Adjusted EBITDA$952,210 $1,052,128 
Net Sales$5,603,502 $5,750,777 
Net sales related to discontinued operations$— $320,678 
1For the nine-month period ended September 28, 2025, Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.














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Sonoco Reports Third Quarter 2026 Results - Page 22
The following tables reconcile segment operating profit, the closest GAAP measure of profitability, to segment adjusted EBITDA.
Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
For the Nine Months Ended September 27, 2026
Excludes results of discontinued operations
Dollars in thousands
Consumer
Industrial
CorporateTotal
Segment and Total Operating Profit/(Loss)1
$455,917 $246,598 $(1,020,542)$(318,027)
Adjustments:
Depreciation and amortization2
163,673 91,786 135,523 390,982 
Other expense, net3
— — (20,178)(20,178)
Equity in earnings of affiliates, net of tax491 5,151 — 5,642 
Restructuring/Asset impairment charges, net4
— — 873,501 873,501 
Changes in LIFO inventory reserves5
— — 5,521 5,521 
Acquisition, integration and divestiture-related costs6
— — 10,582 10,582 
Gain on divestiture of business7
— — (775)(775)
Net loss from derivatives8
— — 61 61 
Other non-GAAP adjustments— — 4,901 4,901 
Segment Adjusted EBITDA$620,081 $343,535 $(11,406)$952,210 
Net Sales$3,734,926$1,868,576
Segment Operating Profit Margin12.2 %13.2 %
Segment Adjusted EBITDA Margin16.6 %18.4 %

1 As previously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment. The Company no longer reports the results of any of its businesses in All Other.
2 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $120,451 and the Industrial segment of $15,072.
3 These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle primarily within the Consumer segment.
4 Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $844,607 and the Industrial segment of $27,392.
5 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $4,996 and the Industrial segment of $525.
6 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $3,707 and the Industrial segment of $159.
7 Included in Corporate is a gain of $2,640 from the sale of a recycling facility in Savannah, Georgia, part of the Industrial segment, partially offset by a charge of $1,865 from the final net working capital settlement related to the divestiture of ThermoSafe, previously part of the All Other group of businesses.
8 Included in Corporate are net losses from derivatives associated with the Consumer segment of $7 and the Industrial segment of $54.



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Sonoco Reports Third Quarter 2026 Results - Page 23
Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
For the Nine Months Ended September 28, 2025
Excludes results of discontinued operations
Dollars in thousands
Consumer
Industrial
All OtherCorporateTotal
Segment and Total Operating Profit$510,109 $256,038 $29,511 $(298,165)$497,493 
Adjustments:
Depreciation and amortization1
152,175 90,764 4,807 135,188 382,934 
Other expense, net2
— — — (20,617)(20,617)
Equity in earnings of affiliates, net of tax309 6,902 — — 7,211 
Restructuring/Asset impairment charges, net3
— — — 71,721 71,721 
Changes in LIFO inventory reserves4
— — — 1,755 1,755 
Acquisition, integration and divestiture-related costs5
— — — 47,745 47,745 
Loss on divestiture of business6
— — — 9,297 9,297 
Net loss from derivatives7
— — — 1,240 1,240 
Other non-GAAP adjustments— — — 3,562 3,562 
Segment Adjusted EBITDA$662,593 $353,704 $34,318 $(48,274)$1,002,341 
Net Sales$3,731,872 $1,818,804 $200,101 
Segment Operating Profit Margin13.7 %14.1 %14.7 %
Segment Adjusted EBITDA Margin17.8 %19.4 %17.2 %

1Included in Corporate is the amortization of acquisition intangibles associated with the Consumer segment of $118,232, the Industrial segment of $16,405, and All Other of $551.
2These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle primarily within the Consumer segment.
3Included in Corporate are restructuring/asset impairment charges associated with the Consumer segment of $37,736, the Industrial segment of $31,907, and All Other of $10.
4Included in Corporate are changes in LIFO inventory reserves associated with the Consumer segment of $1,755.
5Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer segment of $22,502 and the Industrial segment of $528.
6Included in Corporate are net losses from the divestiture of businesses within the Industrial segment of $6,297, including a loss of $2,114 from the sale of a recycling facility in Asheville, N.C. and losses totaling $4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela.
7Included in Corporate are net gains from derivatives associated with the Consumer segment of $120, the Industrial segment of $1,072, and All Other of $48.










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Sonoco Reports Third Quarter 2026 Results - Page 24
FREE CASH FLOW
The Company uses the non-GAAP financial measure of “Free Cash Flow,” which it defines as cash flow from operations minus net capital expenditures. Net capital expenditures are defined as capital expenditures minus proceeds from the disposition of capital assets. Free Cash Flow may not represent the amount of cash flow available for general discretionary use because it excludes non-discretionary expenditures, such as mandatory debt repayments and required settlements of recorded and/or contingent liabilities not reflected in cash flow from operations.
The reconciliation of the GAAP measure “Net cash provided by operating activities” to the non-GAAP measure “Free Cash Flow” is set forth in the table below:
Nine Months Ended
September 27, 2026September 28, 2025
Net cash provided by operating activities$217,548 $276,896 
     Purchases of property, plant and equipment(188,664)(253,411)
     Proceeds from the sale of assets, net13,759 5,160 
Net capital expenditures(174,905)(248,251)
Free cash flow$42,643 $28,645 


NET DEBT
The reconciliation of the GAAP measure “Total Debt” to the non-GAAP measure of “Net Debt” is set forth in the table below:
September 27, 2026
Total Debt$4,291,666 
     Less: Cash and cash equivalents183,101 
Net Debt$4,108,565