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  4. [10-Q] SONOCO PRODUCTS CO Quarterly Earnings Report

Sonoco Products (NYSE: SON) lifts Q1 2026 EPS as tax rate drops

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
10-Q

Rhea-AI Filing Summary

Sonoco Products Company reported first‑quarter 2026 net sales of $1,676.4 million, slightly below $1,709.2 million a year earlier, as volumes and mix shifted across Consumer Packaging and Industrial Paper Packaging. Consumer Packaging contributed $1,097.1 million and Industrial Paper Packaging $579.4 million of sales.

Net income attributable to Sonoco from continuing operations rose to $67.6 million from $49.3 million, and diluted earnings per share increased to $0.68 from $0.50, helped by a lower effective tax rate of 12.4% versus 30.9%. Operating profit from continuing operations was broadly stable at $127.1 million. Cash used by operating activities was $367.9 million, reflecting working capital outflows and tax payments, while the company increased commercial paper borrowings to $344.0 million. Sonoco paid a quarterly dividend of $0.53 per share and declared a subsequent dividend of $0.54 per share.

Positive

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Negative

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Insights

Sonoco’s Q1 shows higher earnings on lower taxes, with softer cash flow.

Sonoco delivered Q1 2026 net income from continuing operations of $67.6 million, up from $49.3 million, even though net sales slipped to $1,676.4 million from $1,709.2 million. The effective tax rate fell sharply to 12.4% from 30.9%, a major driver of the earnings increase.

Segment operating profit for Consumer Packaging and Industrial Paper Packaging combined was $194.9 million, down from $217.1 million, as restructuring, amortization of acquisition intangibles and divestiture‑related costs weighed on reported results. Acquisition, integration and divestiture‑related costs dropped to $6.3 million from $27.3 million, reducing special charges versus the prior period.

Operating cash flow was negative at $(367.9) million compared with $(208.1) million previously, driven by higher inventories, lower payables and tax outflows. Debt increased, including $344.0 million in commercial paper and total debt of $4,689.5 million. Investors can track how working capital and leverage evolve through the rest of 2026 as portfolio simplification and restructuring continue.

Net sales $1,676.4 million Three months ended March 29, 2026
Net income from continuing operations $67.6 million Three months ended March 29, 2026 vs $49.3 million prior year
Diluted EPS $0.68 per share Continuing operations, Q1 2026 vs $0.50 in Q1 2025
Operating cash flow $(367.9) million Net cash used by operating activities, Q1 2026
Segment operating profit $194.9 million Combined Consumer and Industrial segments, Q1 2026
Total debt $4,689.5 million As of March 29, 2026
Commercial paper outstanding $344.0 million As of March 29, 2026, under $1.25B program
Effective tax rate 12.4% Three months ended March 29, 2026; 30.9% in prior year
discontinued operations financial
"the results of TFP ... are presented as discontinued operations in the Condensed Consolidated Statements of Income"
Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.
segment operating profit financial
"Segment operating profit viewed by the Company to evaluate segment performance does not include the following"
Segment operating profit is the profit generated by a specific business unit or division from its normal activities, measured before interest, taxes and often before corporate-level allocations or one-time items. It shows how well a particular part of a company turns sales into operating earnings, helping investors compare which divisions are healthy or efficient — like checking how one store in a chain performs independently of the whole company.
cash flow hedges financial
"These contracts ... qualify as cash flow hedges under GAAP"
A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.
net investment hedge financial
"All of the Company’s cross-currency swap agreements are designated as net investment hedges"
supply chain financing programs financial
"The Company facilitates voluntary supply chain financing programs (the “SCF Programs”)"
10-Q Quarterly Reports: What Changes Quarter to Quarter →
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 FORM 10-Q
 
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 29, 2026
or 
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File No. 001-11261
Sonoco Products Company
(Exact name of registrant as specified in its charter)
South Carolina
57-0248420
(State or other jurisdiction of incorporation of organization)
(I.R.S. Employer Identification No.)
1 N. Second St., Hartsville, South Carolina
29550
(Address of principal executive offices)
(Zip Code)
(843) 383-7000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
No par value common stock
SON
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒   No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer
☐
Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
The number of shares outstanding of the registrant’s no par value common stock as of April 17, 2026 was 98,868,689.



SONOCO PRODUCTS COMPANY
INDEX
 
PART I. FINANCIAL INFORMATION
3
Item 1.
Financial Statements:
3
Condensed Consolidated Balance Sheets – March 29, 2026 (unaudited) and December 31, 2025 (unaudited)
3
Condensed Consolidated Statements of Income – Three Months Ended March 29, 2026 (unaudited) and March 30, 2025 (unaudited)
4
Condensed Consolidated Statements of Comprehensive Income – Three Months Ended March 29, 2026 (unaudited) and March 30, 2025 (unaudited)
5
Condensed Consolidated Statements of Changes in Total Equity – Three Months Ended March 29, 2026 (unaudited) and March 30, 2025 (unaudited)
6
Condensed Consolidated Statements of Cash Flows – Three Months Ended March 29, 2026 (unaudited) and March 30, 2025 (unaudited)
7
Notes to Condensed Consolidated Financial Statements (unaudited)
8
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
37
Item 3.
Quantitative and Qualitative Disclosures About Market Risk.
55
Item 4.
Controls and Procedures.
55
PART II. OTHER INFORMATION
56
Item 1.
Legal Proceedings.
56
Item 5.
Other Information.
56
Item 6.
Exhibits.
57
2

PART I. FINANCIAL INFORMATION 
Item 1. Financial Statements.
SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars and shares in thousands)
March 29,
2026		December 31, 2025*
Assets
Current Assets
Cash and cash equivalents$224,479 $378,398 
Trade accounts receivable, net of allowances893,036 842,810 
Other receivables223,939 178,755 
Inventories, net:
Finished goods424,698 370,303 
Work in process184,626 161,313 
Materials and supplies607,488 589,393 
Prepaid expenses184,138 125,352 
Total Current Assets2,742,404 2,646,324 
Property, Plant and Equipment, Net2,742,785 2,797,800 
Goodwill2,482,201 2,511,611 
Other Intangible Assets, Net2,600,694 2,683,474 
Deferred Income Taxes30,672 54,449 
Right of Use Asset-Operating Leases308,936 307,450 
Other Assets162,327 161,226 
Total Assets$11,070,019 $11,162,334 
Liabilities and Equity
Current Liabilities
Payable to suppliers$988,748 $1,084,152 
Accrued expenses and other payables624,929 777,752 
Notes payable and current portion of long-term debt1,202,570 537,952 
Accrued taxes29,845 128,821 
Total Current Liabilities2,846,092 2,528,677 
Long-term Debt, Net of Current Portion3,486,942 3,788,973 
Noncurrent Operating Lease Liabilities264,598 263,192 
Pension and Other Postretirement Benefits176,372 177,976 
Deferred Income Taxes534,896 557,034 
Other Liabilities174,752 214,650 
Total Liabilities7,483,652 7,530,502 
Commitments and Contingencies (See Note 18)
Sonoco Shareholders’ Equity
Common stock, no par value
Authorized 300,000 shares
98,869 and 98,634 shares issued and outstanding
at March 29, 2026 and December 31, 2025, respectively
7,175 7,175 
Capital in excess of stated value191,477 191,855 
Accumulated other comprehensive (loss)/income(22,491)37,204 
Retained earnings3,392,513 3,377,647 
Total Sonoco Shareholders’ Equity3,568,674 3,613,881 
Noncontrolling Interests17,693 17,951 
Total Equity3,586,367 3,631,832 
Total Liabilities and Equity$11,070,019 $11,162,334 
*The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (the “United States” or “U.S.”).
See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)
3

SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars and shares in thousands except per share data)
 
Three Months Ended
March 29, 2026March 30, 2025
Net sales$1,676,442 $1,709,228 
Cost of sales1,330,814 1,355,541 
Gross profit345,628 353,687 
Selling, general and administrative expenses201,538 209,063 
Restructuring/Asset impairment charges, net15,133 13,581 
Loss on divestiture of business(1,865)(4,183)
Operating profit127,092 126,860 
Non-operating pension costs2,496 3,121 
Interest expense44,494 56,027 
Interest income8,651 7,348 
Other expense, net(12,308)(6,517)
Income from continuing operations before income taxes76,445 68,543 
Provision for income taxes9,510 21,147 
Income before equity in earnings of affiliates66,935 47,396 
Equity in earnings of affiliates, net of tax690 1,921 
Net income from continuing operations 67,625 49,317 
Net income from discontinued operations— 5,172 
Net income67,625 54,489 
Net income from continuing operations attributable to noncontrolling interests(24)(60)
Net income attributable to Sonoco$67,601 $54,429 
Weighted average common shares outstanding:
Basic99,313 98,913 
Diluted99,704 99,342 
Per common share:
Basic earnings per common share:
Continuing operations$0.68 $0.50 
Discontinued operations— 0.05 
Basic earnings per share attributable to Sonoco$0.68 $0.55 
Diluted earnings per common share:
Continuing operations$0.68 $0.50 
Discontinued operations— 0.05 
Diluted earnings per share attributable to Sonoco$0.68 $0.55 

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)
4

SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (unaudited)
(Dollars in thousands)
 
Three Months Ended
March 29, 2026March 30, 2025
Net income$67,625 $54,489 
Other comprehensive (loss)/income:
     Foreign currency translation adjustments(61,644)175,839 
     Changes in defined benefit plans, net of tax739 544 
Changes in derivative financial instruments, net of tax928 1,757 
Other comprehensive (loss)/income
(59,977)178,140 
Comprehensive income7,648 232,629 
Net income from continuing operations attributable to noncontrolling interests(24)(60)
Other comprehensive loss attributable to noncontrolling interests282 25 
Comprehensive income attributable to Sonoco$7,906 $232,594 

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)
5

SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF
CHANGES IN TOTAL EQUITY (unaudited)
(Dollars and shares in thousands)
Total
Equity		Common SharesCapital in
Excess of
Stated Value		Accumulated
Other
Comprehensive
Income/(Loss)		Retained
Earnings		Noncontrolling
Interests
OutstandingAmount
December 31, 2025$3,631,832 98,634 $7,175 $191,855 $37,204 $3,377,647 $17,951 
Net income67,625 67,601 24 
Other comprehensive (loss)/income:
Translation loss(61,644)(61,362)(282)
Defined benefit plan adjustment, net of tax739 739 
Derivative financial instruments, net of tax928 928 
Other comprehensive loss(59,977)(59,695)(282)
Dividends(52,735)(52,735)
Issuance of stock awards332 367 332 
Shares repurchased(6,954)(132)(6,954)
Share-based compensation6,174 6,174 
Other70 70 
March 29, 2026$3,586,367 98,869 $7,175 $191,477 $(22,491)$3,392,513 $17,693 

Total EquityCommon SharesCapital in
Excess of
Stated Value		Accumulated
Other
Comprehensive
Loss		Retained
Earnings		Noncontrolling
Interests
OutstandingAmount
December 31, 2024$2,286,213 98,260 $7,175 $183,250 $(502,734)$2,583,923 $14,599 
Net income54,489 54,429 60 
Other comprehensive income/(loss):
Translation gain/(loss)175,839 175,864 (25)
Defined benefit plan adjustment, net of tax544 544 
Derivative financial instruments, net of tax1,757 1,757 
Other comprehensive income/(loss)178,140 178,165 (25)
Divestiture of non-controlling interest(637)(637)
Dividends(51,558)(51,558)
Dividends paid to noncontrolling interests(243)(243)
Issuance of stock awards273 588 273 
Shares repurchased(10,573)(220)(10,573)
Share-based compensation5,828 5,828 
March 30, 2025$2,461,932 98,628 $7,175 $178,778 $(324,569)$2,586,794 $13,754 
See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)
6

SONOCO PRODUCTS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(Dollars in thousands)
Three Months Ended
March 29, 2026March 30, 2025
Cash Flows from Operating Activities:
Net income$67,625 $54,489 
Adjustments to reconcile net income to net cash used by operating activities:
Asset impairments3,090 4,949 
Depreciation and amortization125,029 121,492 
Share-based compensation expense6,174 5,829 
Equity in earnings of affiliates, net of tax(690)(1,921)
Net loss on disposition of assets749 277 
Net loss on divestiture of business1,865 4,183 
Pension and postretirement plan expense3,782 4,357 
Pension and postretirement plan contributions(4,829)(4,223)
Net decrease in deferred taxes(2,801)(3,720)
Change in assets and liabilities, net of effects from acquisitions, divestitures and foreign currency adjustments:
Trade accounts receivable(56,775)(64,292)
Inventories(105,691)(110,177)
Payable to suppliers(81,832)(134,906)
Prepaid expenses(48,090)(901)
Income taxes payable and other income tax items(122,160)16,703 
Accrued expenses and other assets and liabilities(153,374)(100,233)
Net cash used by operating activities(367,928)(208,094)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment(62,079)(92,657)
Proceeds from the sale of business, net1
(17,076)3,513 
Proceeds from the sale of assets, net1,719 474 
Investments in affiliated companies and other net investing proceeds1,329 88 
Net cash used by investing activities(76,107)(88,582)
Cash Flows from Financing Activities:
Proceeds from issuance of debt24,082 24,535 
Principal repayment of debt(9,066)(473,293)
Net change in commercial paper344,000 528,000 
Net increase in book cash overdrafts2,905 12,448 
Payment of loan financing costs(356)— 
Dividends paid to noncontrolling interests— (243)
Cash dividends(52,404)(51,285)
Payments for share repurchases(6,954)(10,573)
Net cash provided by financing activities302,207 29,589 
Effects of Exchange Rate Changes on Cash(12,091)15,742 
Net Decrease in Cash and Cash Equivalents(153,919)(251,345)
Cash and cash equivalents at beginning of period378,398 443,060 
Cash and cash equivalents at end of period$224,479 $191,715 

1The Company paid final net working capital settlements of $15,211 and $1,865 to the buyers of TFP (as defined in Note 1) and ThermoSafe (as defined in Note 1), respectively.
See accompanying Notes to Condensed Consolidated Financial Statements (unaudited)
7
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)


Note 1: Basis of Interim Presentation
On April 1, 2025, Sonoco Products Company (the “Company” or “Sonoco”) completed the sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”) to TOPPAN Holdings Inc. (“Toppan”). In accordance with applicable accounting guidance, the results of TFP, previously part of the Company’s Consumer Packaging segment, are presented as discontinued operations in the Condensed Consolidated Statements of Income and, as such, have been excluded from both continuing operations and segment results for all periods presented in this Quarterly Report on Form 10-Q. The Condensed Consolidated Statements of Comprehensive Income, Changes in Total Equity, and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. All amounts, percentages and disclosures for all periods presented in this Quarterly Report on Form 10-Q reflect only the continuing operations of Sonoco unless otherwise noted. See Note 2 for additional information.
Following the sale of the Company’s ThermoSafe business (“ThermoSafe”), part of the All Other group of businesses, to Arsenal Capital Partners (“Arsenal”), a private equity firm, on November 3, 2025, the Company’s industrial and specialty plastics business (“Industrial Plastics”) was the only remaining business in the All Other category. Effective January 1, 2026, the Company changed its operating and management reporting structure and, as a result, realigned Industrial Plastics to be reported within the Industrial Paper Packaging segment. Following this realignment, the All Other category as presented in this Quarterly Report on Form 10-Q reflects only the prior year results related to ThermoSafe. All prior year results for the Industrial Paper Packaging segment and the All Other group of businesses have been recast to conform to the new presentation.
In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Operating results for the three-month period ended March 29, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Amounts reported in thousands within this Quarterly Report on Form 10-Q are computed based on the actual amounts. As a result, the sum of the components may not equal the total amount reported in thousands due to rounding. In addition, certain columns and rows within tables may not sum to the totals due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.










8
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)



Note 2: Discontinued Operations
As disclosed in Note 1, the Company completed the sale of TFP on April 1, 2025. The following table presents key components of “Net income from discontinued operations” for the three months ended March 30, 2025:
 Three Months Ended
  
March 30, 2025
Net sales$320,678 
Cost of sales250,854 
Gross profit69,824 
Selling, general and administrative expenses31,607 
Restructuring/Asset impairment charges, net426 
Operating profit37,791 
Other income, net182 
Interest expense24,911 
Interest income281 
Income from discontinued operations before income taxes12,979 
Provision for income taxes7,807 
Net income from discontinued operations5,172 
Net income from discontinued operations attributable to noncontrolling interests— 
Net income attributable to discontinued operations$5,172 
Weighted average common shares outstanding:
Basic98,913 
Diluted99,342 
Per common share:
Net income attributable to discontinued operations:
Basic $0.05 
Diluted $0.05 

The following table presents significant cash flow items from discontinued operations for the three months ended March 30, 2025:
 Three Months Ended
  
March 30, 2025
Depreciation and amortization(a)
$(311)
Purchases of property, plant and equipment$(5,572)
(a) Subsequent to entering the agreement to sell TFP on December 8, 2024, in accordance with Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment,” depreciation was not recognized on TFP’s property, plant and equipment, and amortization was not recognized on TFP’s other intangible assets or right of use assets-operating leases.



9
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Note 3: New Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires companies to disclose disaggregated amounts relating to (a) inventory purchases; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization. Further, this guidance will require companies to include certain amounts that are already required to be disclosed under current U.S. generally accepted accounting principles (“GAAP”) in the same disclosure as the other disaggregation requirements, disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The standard is intended to benefit investors by providing more detailed expense disclosures that would be useful in making capital allocation decisions. This guidance is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027 but early adoption is permitted. ASU 2024-03 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.
During the three-month period ended March 29, 2026, there were no other newly issued or newly applicable accounting pronouncements that had, or are expected to have, a material impact on the Company’s condensed consolidated financial statements. Further, at March 29, 2026, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s condensed consolidated financial statements.
Note 4: Acquisitions and Divestitures
Acquisitions
The Company did not complete any acquisitions during the three-month periods ended March 29, 2026 and March 30, 2025.
TFP Divestiture
On April 1, 2025, the Company completed the sale of TFP to Toppan for net cash consideration of $1,807,493 paid at closing on a cash-free and debt-free basis. A final working capital settlement of $15,211 was paid to Toppan during the first quarter of 2026. The Company had recorded a liability in this amount in “Accrued expenses and other payables” on its Condensed Consolidated Balance Sheet as of December 31, 2025.
ThermoSafe and Other Divestitures
On November 3, 2025, the Company completed the sale of ThermoSafe to Arsenal for net cash consideration of $655,827 paid at closing on a cash-free and debt-free basis and subject to customary adjustments. A final working capital settlement of $1,865 was paid to Arsenal during the first quarter of 2026. This settlement is included in “Loss on divestiture of business” in the Company’s Condensed Consolidated Statement of Income for the three-month period ended March 29, 2026. Transaction fees totaling $10,112 were also paid during the first quarter of 2026. The Company had recorded a liability for these fees in “Accrued expenses and other payables” on its Condensed Consolidated Balance Sheet as of December 31, 2025.
On March 2, 2025, the Company completed the sale of its tube and core operations in Venezuela, part of the Industrial Paper Packaging segment, in exchange for a receivable in the amount of $145. The sale resulted in a loss of $5,390, including $3,792 of cumulative translation losses that were reclassified from accumulated other comprehensive income. This loss is included in “Loss on divestiture of business” in the Company’s Condensed Consolidated Statements of Income.
In February 2025, the remaining $2,000 of proceeds from the July 1, 2023 sale of the Company’s U.S. BulkSak business were released to the Company from escrow.
On January 17, 2025, the Company completed the sale of a small construction tube operation in France, part of the Industrial Paper Packaging segment, for cash proceeds of $1,513 and recognized a gain of $1,207, which is included in “Loss on divestiture of business” in the Company’s Condensed Consolidated Statements of Income.
10
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The sales of these operations did not represent a strategic shift for the Company and did not have a major effect on its operations or financial results. Consequently, these sales did not meet the criteria for reporting as discontinued operations.
Acquisition, Integration, and Divestiture-Related Costs
Acquisition, integration, and divestiture-related costs from continuing operations during the three-month periods ended March 29, 2026 and March 30, 2025 were recorded in the Company’s Condensed Consolidated Statements of Income as follows:
 Three Months Ended
  
March 29, 2026March 30, 2025
Cost of sales$— $17,949 
Selling, general and administrative expenses6,338 9,317 
Total acquisition, integration, and divestiture-related costs$6,338 $27,266 

Acquisition, integration, and divestiture-related costs included in “Selling, general and administrative expenses” consist primarily of legal and professional fees, representation and warranty insurance premiums, as well as employee-related costs, and other integration activity costs, while such costs included in “Cost of sales” consist primarily of amortization of the fair value step-up of finished goods inventory.
11
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Note 5: Shareholders’ Equity
Earnings per Share
The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended
March 29, 2026March 30, 2025
Numerator:
Net income from continuing operations$67,625 $49,317 
Net income from continuing operations attributable to noncontrolling interests(24)(60)
Net income from continuing operations attributable to Sonoco$67,601 $49,257 
Net income attributable to Sonoco$67,601 $54,429 
Denominator:
Weighted average common shares outstanding:
Basic99,313 98,913 
Dilutive effect of shared-based compensation391 429 
Diluted 99,704 99,342 
Per common share:
Basic earnings per common share:
Net income from continuing operations$0.68 $0.50 
Net income attributable to Sonoco$0.68 $0.55 
Diluted earnings per common share:
Net income from continuing operations$0.68 $0.50 
Net income attributable to Sonoco$0.68 $0.55 
Cash dividends$0.53 $0.52 
No adjustments were made to “Net income attributable to Sonoco” in the computations of net income attributable to Sonoco per common share.
Anti-dilutive Securities
Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (“SARs”) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were anti-dilutive. These SARs may become dilutive in the future if the market price of the Company’s common stock appreciates.
The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three-month periods ended March 29, 2026 and March 30, 2025 were as follows (in thousands):
Three Months Ended
March 29, 2026March 30, 2025
Anti-dilutive stock appreciation rights396 548 
12
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Stock Repurchases
On April 20, 2021, the Company’s Board of Directors (the “Board”) authorized the repurchase of the Company’s common stock in an aggregate amount of up to $350,000. Following several repurchase transactions in 2021, a total of $137,972 remained available for share repurchases under this authorization as of December 31, 2021. Subsequent to 2021, no additional shares have been repurchased under this authorization.
The Company regularly repurchases shares of its common stock to satisfy employee tax withholding obligations in association with certain share-based compensation awards. These repurchases, which are not part of a publicly announced plan or program, totaled 132 shares during the three-month period ended March 29, 2026, at a cost of $6,954, and 220 shares during the three-month period ended March 30, 2025, at a cost of $10,573.
Dividend Declarations
On February 11, 2026, the Board declared a regular quarterly dividend of $0.53 per share. This dividend was paid on March 10, 2026 to all shareholders of record as of February 25, 2026.
On April 15, 2026, the Board declared a regular quarterly dividend of $0.54 per share. This dividend will be paid on
June 10, 2026 to all shareholders of record as of May 8, 2026.
13
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)


Note 6: Restructuring and Asset Impairments
Due to its geographic footprint and the cost-competitive nature of its businesses, the Company continually seeks more cost-effective means and structures to serve its customers and to respond to significant changes in its markets. As such, plant closures in connection with footprint rationalization and headcount reductions are an important component of the Company’s cost control initiatives. The amount of these costs can vary significantly from quarter to quarter and from year to year depending upon the scope, nature, and location of the restructuring activities.
Set forth below are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented:
Three Months Ended
March 29, 2026March 30, 2025
Restructuring and restructuring-related asset impairment charges, net
$15,133 $13,581 
Other asset impairments— — 
Restructuring/Asset impairment charges, net
$15,133 $13,581 
The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred:
Three Months Ended
March 29, 2026March 30, 2025
Severance and Termination Benefits$7,370 $6,998 
Asset Impairment/Disposal of Assets3,090 5,101 
Other Costs4,673 1,482 
Restructuring and restructuring-related asset impairment charges, net
$15,133 $13,581 
The table below sets forth restructuring and restructuring-related asset impairment charges attributable to each reportable segment, the All Other group of businesses, and Corporate-related activity:
Three Months Ended
March 29, 2026March 30, 2025
Consumer Packaging$9,107 $1,229 
Industrial Paper Packaging5,959 12,498 
All Other— 5 
Corporate67 (151)
Restructuring and restructuring-related asset impairment charges, net
$15,133 $13,581 
Restructuring and restructuring-related asset impairment charges are included in “Restructuring/Asset impairment charges, net” in the Company’s Condensed Consolidated Statements of Income.
14
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other payables” in the Company’s Condensed Consolidated Balance Sheets:
Severance
and Termination
Benefits		Asset
Impairments/ Disposal
of Assets		Other
Costs		Total
Accrual Activity
Liability at December 31, 2025$55,628 $— $3,527 $59,155 
2026 charges7,370 3,090 4,673 15,133 
Cash (payments)/receipts(10,100)1,545 (4,642)(13,197)
Asset write downs/disposals— (4,635)— (4,635)
Foreign currency translation(651)— (45)(696)
Liability at March 29, 2026$52,247 $— $3,513 $55,760 
“Severance and Termination Benefits” during the three-month period ended March 29, 2026 includes the cost of severance for approximately 105 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, including additional severance charges related to the prior year closure of a metal packaging facility in France, part of the Consumer Packaging segment.
“Asset Impairment/Disposal of Assets” during the three-month period ended March 29, 2026 consists primarily of asset write-offs related to the closure of a metal packaging facility in Ghana, part of the Consumer Packaging segment and additional losses from the sale of assets associated with a previously closed paper mill facility in Greece, part of the Industrial Paper Packaging segment.
“Other Costs” during the three-month period ended March 29, 2026 consists primarily of equipment removal, utilities, plant security, property taxes, and insurance costs related to the prior year closures of metal can facilities in France and Ghana, and the prior year closures of a paper mill in Mexico and partitions facility in California, both part of the Industrial Paper Packaging segment, as well as ongoing facility carrying costs of other previously announced plant closures.
The Company expects to pay the majority of the remaining restructuring reserves by the end of 2026 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $5,000 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2026. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken.
15
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Note 7: Accumulated Other Comprehensive (Loss)/Income
The following table summarizes the components of accumulated other comprehensive (loss)/income and the changes in the balances of each component of accumulated other comprehensive (loss)/income, net of tax as applicable, for the three-month periods ended March 29, 2026 and March 30, 2025:
Foreign
Currency
Items
Defined
Benefit
Pension Items
Gains and Losses on Cash Flow Hedges
Accumulated
Other
Comprehensive
Income/(Loss)
Balance at December 31, 2025$124,227 $(87,958)$935 $37,204 
Other comprehensive (loss)/income before reclassifications(61,362)(61)1,210 (60,213)
Amounts reclassified from accumulated other comprehensive loss to net income— 800 (282)518 
Other comprehensive (loss)/income(61,362)739 928 (59,695)
Balance at March 29, 2026$62,865 $(87,219)$1,863 $(22,491)
Balance at December 31, 2024$(410,931)$(90,613)$(1,190)$(502,734)
Other comprehensive income/(loss) before reclassifications172,072 (265)2,024 173,831 
Amounts reclassified from accumulated other comprehensive loss to net income3,792 809 (267)4,334 
Other comprehensive income175,864 544 1,757 178,165 
Balance at March 30, 2025$(235,067)$(90,069)$567 $(324,569)

16
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three-month periods ended March 29, 2026 and March 30, 2025:
Amount Reclassified from Accumulated
Other Comprehensive Loss
Three Months Ended
Details about Accumulated Other
Comprehensive
Loss Components		March 29,
2026		March 30,
2025		Affected Line Item in
the Condensed Consolidated
Statements of Income
Foreign currency items
Currency translation adjustment loss on Venezuela sale(a)
$— $(3,792)
Loss on divestiture of business
— (3,792)Net income
Gains/(losses) on cash flow hedges
Foreign exchange contracts(b)
(85)399 Net sales
Foreign exchange contracts(b)
(188)(41)Cost of sales
Commodity contracts(b)
770 — Cost of sales
497 358 Income from continuing operations before income taxes
Income tax impact(215)(91)Provision for income taxes
282 267 Net income
Defined benefit pension items
Amortization of defined benefit pension items(c)
(1,009)(1,056)Non-operating pension costs
(1,009)(1,056)Income from continuing operations before income taxes
Income tax impact209 247 Provision for income taxes
(800)(809)Net income
Total reclassifications for the period$(518)$(4,334)Net income
 
(a) See Note 4 for additional details.
(b) See Note 11 for additional details.
(c) See Note 13 for additional details.

17
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)


The following table summarizes the before- and after-tax amounts for the various components of other comprehensive (loss)/income for the three-month periods ended March 29, 2026 and March 30, 2025:
Three Months Ended March 29, 2026Three Months Ended March 30, 2025
Before Tax
Amount		Tax
(Expense)
Benefit		After Tax
Amount		Before Tax
Amount		Tax
(Expense)
Benefit		After Tax
Amount
Foreign currency items:
Other comprehensive (loss)/income before reclassifications$(48,599)$(12,763)$(61,362)$161,828 $10,244 $172,072 
Amounts reclassified from accumulated other comprehensive (loss)/income to net income(a)
— — — 3,792 — 3,792 
Net other comprehensive (loss)/income from foreign currency items(48,599)(12,763)(61,362)165,620 10,244 175,864 
Defined benefit pension items:
Other comprehensive (loss)/income before reclassifications(77)16 (61)(346)81 (265)
Amounts reclassified from accumulated other comprehensive (loss)/income to net income(b)
1,009 (209)800 1,056 (247)809 
Net other comprehensive income/(loss) from defined benefit pension items
932 (193)739 710 (166)544 
Gains and losses on cash flow hedges:
Other comprehensive income/(loss) before reclassifications
2,132 (922)1,210 2,715 (691)2,024 
Amounts reclassified from accumulated other comprehensive (loss)/income to net income(c)
(497)215 (282)(358)91 (267)
Net other comprehensive income/(loss) from cash flow hedges
1,635 (707)928 2,357 (600)1,757 
Other comprehensive (loss)/income$(46,032)$(13,663)$(59,695)$168,687 $9,478 $178,165 

(a) See Note 4 for additional details.
(b) See Note 13 for additional details.
(c) See Note 11 for additional details.


18
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)


Note 8: Goodwill and Other Intangible Assets
Goodwill
A summary of the changes in goodwill for the three-month period ended March 29, 2026 is as follows: 

Consumer
Packaging		Industrial Paper PackagingTotal
Goodwill at December 31, 2025$1,947,991 $563,620 $2,511,611 
Foreign currency translation(27,086)(2,324)(29,410)
Goodwill at March 29, 2026$1,920,905 $561,296 $2,482,201 
The goodwill balance of the Industrial Paper Packaging segment at December 31, 2025 included $55,244 related to Industrial Plastics, previously reported as part of the All Other group of businesses. See Note 1 for additional information.
The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2025 and analyzed certain qualitative and quantitative factors in determining whether a goodwill impairment existed. The Company’s assessments reflected a number of significant management assumptions and estimates including the Company’s forecast of sales growth during the discrete period, EBITDA, and discount rates. Changes in these assumptions could materially impact the Company’s conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units.
Although no reporting units failed the annual impairment test, in management’s opinion, the goodwill balances of the Sonoco Metal Packaging (“SMP”) Europe, Middle East and Africa (“EMEA”) and Global Paper Products Asia-Pacific (“APAC”) reporting units are at risk of impairment in the near term if the reporting unit’s operations do not perform in line with management’s expectations, or if there is a negative change in the long-term financial outlook for the reporting unit or in other factors such as the discount rate. In the case of SMP EMEA, the lower differential between the fair value and carrying value of the reporting unit is due to the acquisition of Titan Holdings I B.V. in December 2024, at which time the majority of assets and liabilities acquired were recorded at fair value. The total goodwill associated with the SMP EMEA and Global Paper Products APAC reporting units was $1,372,186 and $26,976, respectively, at March 29, 2026.
During the time subsequent to the annual evaluation, and at March 29, 2026, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management’s opinion that no such events and/or changes in circumstances have occurred.
19
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Other Intangible Assets
A summary of other intangible assets as of March 29, 2026 and December 31, 2025 is as follows:    
March 29,
2026		December 31,
2025
Other Intangible Assets, gross:
Patents$29,302 $29,403 
Customer lists2,855,747 2,895,345 
Trade names28,116 28,417 
Proprietary technology230,704 234,336 
Other2,064 2,054 
Total Other Intangible Assets, gross$3,145,933 $3,189,555 
Accumulated Amortization:
Patents$(19,373)$(18,706)
Customer lists(464,206)(431,704)
Trade names(12,818)(12,488)
Proprietary technology(47,637)(41,990)
Other(1,205)(1,193)
Total Accumulated Amortization(545,239)(506,081)
Other Intangible Assets, net$2,600,694 $2,683,474 
Other intangible assets are amortized using the straight-line method over their respective useful lives when management has determined that the straight-line method approximates the pattern of consumption of the respective intangible assets or in relation to the asset’s specific pattern of consumption if management has determined that the straight-line method does not provide a fair approximation of the consumption of benefits. These lives generally range from three to twenty years. The Company has no intangible assets with indefinite lives.
Aggregate amortization expense was $44,320 and $41,961 for the three-month periods ended March 29, 2026 and March 30, 2025, respectively. Amortization expense on other intangible assets is expected to total approximately $177,300 in 2026, $177,200 in 2027, $177,100 in 2028, $176,200 in 2029 and $173,900 in 2030.

Note 9: Supply Chain Financing
The Company facilitates voluntary supply chain financing programs (the “SCF Programs”) to provide certain of its suppliers with the opportunity to sell receivables due from the Company to the participating financial institutions in the programs. Such sales are conducted at the sole discretion of both the suppliers and the financial institutions on a nonrecourse basis at a rate that leverages the Company’s credit rating and thus might be more beneficial to the supplier. No guarantees are provided by the Company or any of its subsidiaries under the SCF Programs. The Company’s responsibility under the agreements is limited to making payment to the financial institutions for confirmed invoices based on the terms originally negotiated with its suppliers. Both the Company and the financial institutions have the right to terminate the SCF Programs by providing 30 days prior written notice to the other party. The Company does not enter into any agreements with suppliers regarding their participation in the SCF Programs.
The following table sets forth the balance sheet location and values of the obligations under the Company’s SCF Programs at March 29, 2026 and December 31, 2025:
Balance Sheet Line ItemMarch 29, 2026December 31, 2025
Payable to suppliers(a)
$42,768 $53,122 
20
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

(a) The payment of these obligations is included in net cash used by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows.
Note 10: Debt
Details of the Company’s debt at March 29, 2026 and December 31, 2025 are as follows:
March 29,
2026		December 31, 2025
Commercial paper$344,000 $— 
Syndicated term loan due August 2028498,476 498,320 
4.450% notes due September 2026
499,202 498,749 
2.250% notes due February 2027
299,567 299,443 
4.600% notes due September 2029
595,977 595,694 
3.125% notes due May 2030
597,666 597,528 
2.850% notes due February 2032
496,950 496,824 
5.000% notes due September 2034
691,111 690,857 
5.750% notes due November 2040
536,322 536,314 
Other foreign denominated debt58,980 40,016 
Finance lease obligations53,135 53,542 
Other debt18,126 19,638 
Total debt4,689,512 4,326,925 
Less: Notes payable and current portion of long-term debt(1,202,570)(537,952)
Long-term debt$3,486,942 $3,788,973 
On March 23, 2026, the Company entered into a credit agreement with the lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent (the “Term Credit Agreement”) that provides the Company with a delayed draw term loan facility in an aggregate principal amount of up to $300,000 on an unsecured basis (the “Term Loan Facility”). The Term Loan Facility may be drawn, subject to the satisfaction of certain conditions, on or prior to September 13, 2026. Borrowings under the Term Loan Facility, net of any prepayments, will become payable in full on the second anniversary of the Funding Date (as defined in the Term Credit Agreement) and will bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) the forward-looking Secured Overnight Financing Rate term rate (such borrowings, “Term SOFR Loans”), (ii) a base rate (such borrowings, “Base Rate Loans”), or (iii) a combination thereof, plus, in each case, an applicable margin calculated based on the Company’s credit ratings, ranging from 0.850% to 1.100% per annum for Term SOFR Loans and from 0.000% to 0.100% per annum for Base Rate Loans. As of March 29, 2026, no draws had been made under the Term Loan Facility.
The Company maintains a revolving credit facility with total commitments of $1,250,000 and a maturity date of May 3, 2029. The Company’s $1,250,000 commercial paper program is supported by the revolving credit facility. At March 29, 2026, the Company had $344,000 in commercial paper balances outstanding; accordingly, the committed capacity available for drawdown under its revolving credit facility at March 29, 2026 was $906,000.
Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements. As of March 29, 2026, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.
21
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Note 11: Financial Instruments and Derivatives
The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value.
March 29, 2026December 31, 2025
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Long-term debt, net of current portion$3,486,942 $3,376,489 $3,788,973 $3,728,480 

The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement.
Cash Flow Hedges
At March 29, 2026 and December 31, 2025, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, which have maturities ranging from March 2026 to September 2027, qualify as cash flow hedges under GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.
Commodity Cash Flow Hedges
Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as cash flow hedges. At March 29, 2026, there were no designated natural gas swaps covering anticipated natural gas usage in 2026. The Company has designated swap contracts covering 5,861 metric tons of aluminum as cash flow hedges. These contracts represented approximately 34.4% and 3.0% of anticipated aluminum usage for 2026 and 2027, respectively. The fair value of the Company’s commodity cash flow hedges netted to a gain position of $3,310 and a gain position of $1,683 at March 29, 2026 and December 31, 2025, respectively. The amount of the gain included in accumulated other comprehensive income at March 29, 2026 expected to be reclassified to the income statement during the next twelve months is $3,163. The Company also has certain natural gas and aluminum derivatives contracts that are not designated as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges.
22
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Foreign Currency Cash Flow Hedges
The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases expected to occur from March 2026 to December 2027. The net positions of these contracts at March 29, 2026 were as follows (in thousands):
CurrencyActionQuantity
USD Contracts
Colombian pesopurchase9,603,957 
Mexican pesopurchase156,750 
Danish kronepurchase105,135 
Polish zlotypurchase95,285 
Turkish lirapurchase75,052 
Europurchase3,152 
Canadian dollarpurchase14,549 
Swedish kronasell(4,021)
British poundsell(7,638)
USDpurchase10,281 
Euro Contracts
Hungarian forintpurchase7,216,102 
Polish zlotysell(20,461)
British poundpurchase3,784 
Swiss franc
purchase2,058 
Europurchase8,602 
USDpurchase6,849 
The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a loss position of $(255) and a gain position of $49 at March 29, 2026 and December 31, 2025, respectively. Losses of $(282) are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months.
Net Investment Hedge
In April 2024 the Company entered into cross-currency swap agreements with a total notional amount of $500,000, maturing on May 1, 2027, to effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
In December 2024, the Company entered into additional cross-currency swap agreements with a total notional amount of $1,500,000, including $500,000 maturing on September 1, 2026, $500,000 maturing on September 1, 2029, and $500,000 maturing on May 1, 2030. The swaps effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
On June 30, 2025, the Company entered into additional cross-currency swap agreements with a total notional amount of $285,000, maturing on February 1, 2027. The swaps effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
All of the Company’s cross-currency swap agreements are designated as net investment hedges for accounting purposes and have the risk management objective of managing foreign currency risk relating to net investments in certain European subsidiaries denominated in euros.
The gain or loss on the net investment hedge derivative instruments is included in the “Foreign currency translation” component of “Accumulated other comprehensive (loss)/income” until the net investment is sold, diluted, or liquidated. Net interest income on the cross-currency swaps totaling $10,843 for the three-month period ended March 29, 2026 are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the
23
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Company’s Condensed Consolidated Statements of Income. The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S. dollar exchange rate market.
The fair value of the Company’s net investment hedges was a loss position of $(157,150) and $(207,203) at March 29, 2026 and December 31, 2025, respectively. A foreign currency translation loss of $(117,077) (net of income taxes of $40,073) and a loss of $(154,366) (net of income taxes of $52,837) were reported as components of “Accumulated other comprehensive (loss)/income” within “Foreign currency items” at March 29, 2026 and December 31, 2025, respectively.
Non-Designated Derivatives
The Company routinely enters into other derivative contracts which are not designated for hedge accounting treatment under ASC 815, “Derivatives and Hedging.” As such, changes in fair value of these non-designated derivatives are recorded directly to income and expense in the periods that they occur. Cash flows from derivative financial instruments not designated as hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.
Foreign Currency Hedges
The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. The net currency positions of these non-designated contracts at March 29, 2026, were as follows (in thousands):
CurrencyActionQuantity
USD Contracts
Colombian pesopurchase70,916,285 
Indonesian rupiahpurchase16,897,640 
Mexican pesopurchase246,549 
Canadian dollarpurchase3,695 
Euro Contracts
Hungarian forintpurchase416,146 
USDsell(1,413)
British poundsell(174)
Polish zlotysell(32,609)
Thai bahtsell(524,769)
Commodity Hedges
The Company has entered into non-designated derivative contracts to manage the cost of anticipated purchases of natural gas and aluminum. At March 29, 2026, these contracts consisted of natural gas swaps covering approximately 3.1 million metric million British thermal units (“MMBTUs”) and represented approximately 57.5% of anticipated usage in North America for the remainder of 2026. In addition, the Company held aluminum swap contracts covering 333 metric tons of aluminum.
24
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The fair value of the Company’s non-designated derivatives position was a loss of $(761) and $(1,113) at March 29, 2026 and December 31, 2025, respectively.
The following table sets forth the location and fair values of the Company’s derivative instruments at March 29, 2026 and December 31, 2025:
DescriptionBalance Sheet LocationMarch 29, 2026December 31, 2025
Derivatives designated as hedging instruments:
Commodity ContractsPrepaid expenses$3,202 $1,508 
Commodity ContractsOther Assets147 175 
Commodity ContractsAccrued expenses and other payables(39)— 
Foreign Exchange ContractsPrepaid expenses2,216 1,131 
Foreign Exchange ContractsOther Assets27 33 
Foreign Exchange ContractsAccrued expenses and other payables(2,498)(1,028)
Foreign Exchange ContractsOther Liabilities— (87)
Net investment hedgePrepaid expenses20,687 19,358 
Net investment hedgeAccrued expenses and other payables(48,811)(58,594)
Net investment hedgeOther Liabilities(129,026)(167,967)
Derivatives not designated as hedging instruments:
Commodity ContractsPrepaid expenses359 185 
Commodity ContractsOther Assets78 — 
Commodity ContractsAccrued expenses and other payables(1,541)(1,517)
Commodity ContractsOther Liabilities(94)— 
Foreign Exchange ContractsPrepaid expenses749 1,106 
Foreign Exchange ContractsAccrued expenses and other payables(312)(887)
While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements.
25
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended March 29, 2026 and March 30, 2025, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive (loss)/income to the carrying value of the capitalized expenditures:
DescriptionAmount of Gain or
(Loss) Recognized
in OCI on
Derivatives		Location of Gain
or (Loss)
Reclassified from
Accumulated OCI
Into Income		Amount of Gain or
(Loss) Reclassified
from Accumulated
OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Three-month period ended March 29, 2026
Foreign Exchange Contracts$(264)Net sales$(85)
Cost of sales(188)
Commodity Contracts2,396 Cost of sales770 
Three-month period ended March 30, 2025
Foreign Exchange Contracts$3,251 Net sales$399 
Cost of sales(41)
Commodity Contracts(536)Cost of sales— 
 
DescriptionGain or (Loss)
Recognized		Location of Gain or (Loss) Recognized in
Income Statement
Derivatives not Designated as Hedging Instruments:
Three-month period ended March 29, 2026
Commodity Contracts$1,304 Cost of sales
Foreign Exchange Contracts1,697 Selling, general and administrative
Three-month period ended March 30, 2025
Commodity Contracts$3,337 Cost of sales
Foreign Exchange Contracts3,569 Selling, general and administrative

Three-month period ended March 29, 2026Three-month period ended March 30, 2025
DescriptionRevenueCost of salesRevenueCost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income$(85)$582 $399 $(41)
Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net income$(85)$(188)$399 $(41)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive (loss)/income into net income$— $770 $— $— 
​
​
26
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Note 12: Fair Value Measurements
Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows:
Level 1 –Observable inputs such as quoted market prices in active markets;
Level 2 –Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3 –Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.
                     
Assets that are calculated at Net Asset Value per share (“NAV”) are not required to be categorized within the fair value hierarchy.
The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis:
DescriptionMarch 29, 2026Assets measured
at NAV		Level 1Level 2Level 3
Hedge derivatives, net:
Commodity contracts$3,310 $— $— $3,310 $— 
Foreign exchange contracts(255)— — (255)— 
Net investment hedge(157,150)— — (157,150)— 
Non-hedge derivatives, net:
Commodity contracts(1,198)— — (1,198)— 
Foreign exchange contracts437 — — 437 — 
DescriptionDecember 31, 2025Assets measured
at NAV		Level 1Level 2Level 3
Hedge derivatives, net:
Commodity contracts$1,683 $— $— $1,683 $— 
Foreign exchange contracts49 — — 49 — 
Net investment hedge(207,203)— — (207,203)— 
Non-hedge derivatives, net:
Commodity contracts(1,332)— — (1,332)— 
Foreign exchange contracts219 — — 219 — 

As discussed in Note 11, the Company uses derivatives to mitigate the effect of commodity fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates.
None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three-month period ended March 29, 2026.
The Company has an investment in the preferred stock of a nonaffiliated private company. This investment is accounted for under the measurement alternative of cost less impairment, adjusted for any qualifying observable price changes on a non-recurring basis. Observable price changes would consist of Level 2 inputs based on privately negotiated transactions with the nonaffiliated company. The total investment in preferred stock of $21,212 is included in “Other Assets” in the Company’s Condensed Consolidated Balance Sheet as of March 29, 2026.
27
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The Company measures certain non-financial assets and non-financial liabilities at fair value on a non-recurring basis. See Note 4 for a discussion of assets acquired and liabilities assumed in acquisitions and sold in dispositions, and Note 6 for a discussion of asset impairments associated with restructuring activities. The fair value of assets determined based on third-party appraisals and classified as Level 3 measurements due to the use of significant unobservable inputs was not material at March 29, 2026 or December 31, 2025.

Note 13: Employee Benefit Plans
Retirement Plans and Retiree Health and Life Insurance Plans
The Company provides non-contributory defined benefit pension plans for certain of its employees in the United States, Mexico, Belgium, Germany, France, Turkey, Italy, Switzerland, Spain, and Ireland. The Company also sponsors contributory defined benefit pension plans covering certain of its employees in the United Kingdom, Canada and the Netherlands, and provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements.
The components of net periodic benefit cost include the following:
Three Months Ended
March 29, 2026March 30, 2025
Retirement Plans
Service cost$1,257 $1,196 
Interest cost5,053 5,133 
Expected return on plan assets(3,646)(3,205)
Amortization of prior service cost184 188 
Amortization of net actuarial loss890 988 
Net periodic benefit cost$3,738 $4,300 
Retiree Health and Life Insurance Plans
Service cost$29 $39 
Interest cost224 237 
Expected return on plan assets(144)(100)
Amortization of prior service cost90 94 
Amortization of net actuarial gain(155)(214)
Net periodic benefit cost$44 $56 
Contributions
The Company made aggregate contributions of $4,829 and $4,223 to its defined benefit retirement and retiree health and life insurance plans during the three-month periods ended March 29, 2026 and March 30, 2025, respectively. The Company expects to make additional aggregate contributions of approximately $18,400 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2026.

Note 14: Income Taxes
The Company’s effective tax rates for the three-month periods ended March 29, 2026 and March 30, 2025 were 12.4% and 30.9%, respectively. The Company’s effective tax rates varied from the U.S. statutory rate due primarily to rate differences between U.S. and non-U.S. jurisdictions and the relative amounts earned in those jurisdictions, state income taxes, and discrete tax adjustments that were not consistent period over period, including the recording of a provision-to-return adjustment for a retroactive U.S. tax election.
The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2019.
28
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The Company’s reserve for uncertain tax benefits increased by $1,108 from December 31, 2025 to March 29, 2026 due primarily to an increase in reserves related to existing tax positions and the Company’s reassessment of a prior-year tax matter. Although the Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations and pays taxes in many countries outside of the U.S. and taxes on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that the loss of such benefit would have a material effect on the Company’s overall effective tax rate. 
Note 15: Leases
The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company’s lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842, “Leases.” Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years. The Company’s leases do not have any significant residual value guarantees or restrictive covenants.
As the implicit rate in the Company’s leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years.
The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at March 29, 2026 and December 31, 2025:
ClassificationBalance Sheet LocationMarch 29, 2026December 31, 2025
Lease Assets
Operating lease assetsRight of Use Asset-Operating Leases$308,936 $307,450 
Finance lease assetsOther Assets48,560 49,059 
Total lease assets$357,496 $356,509 
Lease Liabilities
Current operating lease liabilitiesAccrued expenses and other payables$53,758 $53,978 
Current finance lease liabilitiesNotes payable and current portion of long-term debt12,034 11,617 
Total current lease liabilities$65,792 $65,595 
Noncurrent operating lease liabilitiesNoncurrent Operating Lease Liabilities$264,598 $263,192 
Noncurrent finance lease liabilitiesLong-term Debt, Net of Current Portion41,101 41,925 
Total noncurrent lease liabilities$305,699 $305,117 
Total lease liabilities$371,491 $370,712 
29
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet for certain leases with rate or index-related terms result in variable expenses being incurred when paid during the lease term.
The following table sets forth the components of the Company’s total lease cost for the three-month periods ended March 29, 2026 and March 30, 2025:
Three Months Ended
Lease CostMarch 29, 2026March 30, 2025
Operating lease cost(a)$15,144 $15,484 
Finance lease cost:
     Amortization of lease asset(a) (b)2,735 3,002 
     Interest on lease liabilities(c)612 700 
Variable lease cost(a) (d)11,757 12,422 
Impairment charges(e)— 633 
Total lease cost$30,248 $32,241 
(a) Production-related costs are included in “Cost of sales” and administrative costs are included in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Income.
(b) Included in depreciation and amortization.
(c) Included in “Interest expense” in the Condensed Consolidated Statements of Income.
(d) Also includes short term lease costs, which are deemed immaterial.
(e) Impairment charges are included in “Restructuring/Asset impairment charges, net” in the Company’s Condensed Consolidated Statements of Income. See Note 6 for additional information.

The following table sets forth certain lease-related information for the three-month periods ended March 29, 2026 and March 30, 2025:
Three Months Ended
March 29, 2026March 30, 2025
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used by operating leases $14,350 $14,226 
     Operating cash flows used by finance leases612 700 
     Financing cash flows used by finance leases2,834 3,057 
Noncash investing and financing activities:
     Leased assets obtained in exchange for new operating lease liabilities9,776 11,011 
     Leased assets obtained in exchange for new finance lease liabilities2,799 2,279 
     Modification to leased assets for increase in operating lease liabilities6,005 16,626 
     Modification to leased assets for decrease in finance lease liabilities — (10,440)
     Termination reclasses to decrease operating lease assets311 232 
     Termination reclasses to decrease operating lease liabilities311 274 
     Termination reclasses to decrease finance lease assets317 82 
     Termination reclasses to decrease finance lease liabilities 317 84 
30
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Note 16: Revenue Recognition
The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer’s designated carrier. The Company commonly enters into Master Supply Arrangements with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in “Cost of sales,” and freight charged to customers is included in “Net sales” in the Company’s Condensed Consolidated Statements of Income.
The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in “Accrued expenses and other payables” in the Company’s Condensed Consolidated Balance Sheets.
Payment terms under the Company’s sales arrangements are short term, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of estimated revenue and are determinable within a short time period following the sale.
The following table sets forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other payables,” respectively, in the Company’s Condensed Consolidated Balance Sheets.
March 29, 2026December 31, 2025
Contract Assets$86,675 $77,978 
Contract Liabilities(41,259)(58,784)

Significant changes in the contract assets and liabilities balances during the three-month period ended March 29, 2026 and the year ended December 31, 2025 were as follows:
March 29, 2026December 31, 2025
Contract
Assets		Contract
Liabilities
Contract
Assets
Contract
Liabilities
Beginning Balance$77,978 $(58,784)$67,062 $(60,024)
Acquired/ sold as part of a business combination/ divestiture— — (53)(324)
Revenue deferred or rebates accrued— (25,271)— (94,947)
Recognized as revenue— 434 — 1,183 
Rebates paid to customers— 42,362 — 95,328 
Increases due to rights to consideration for customer specific goods produced, but not billed during the period86,675 — 77,978 — 
Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combination(77,978)— (67,009)— 
Ending Balance$86,675 $(41,259)$77,978 $(58,784)

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SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer. Therefore, amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and receipts of advance payments. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the second half of the contract term. Contract assets and liabilities are generally short in duration given the nature of products produced by the Company.
The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended March 29, 2026 and March 30, 2025. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Company’s reportable segments are aligned by product nature as disclosed in Note 17. As described in Note 1, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial Paper Packaging segment effective January 1, 2026. The Company no longer reports the results of any of its businesses in All Other. Prior year results for the Industrial Paper Packaging segment and the All Other group of businesses have been recast to conform to the new presentation.
Three-month period ended March 29, 2026Consumer PackagingIndustrial Paper PackagingTotal
Primary Geographical Markets:
United States$440,966 $365,097 $806,063 
EMEA597,584 100,490 698,074 
Canada2,564 20,136 22,700 
APAC28,750 34,723 63,473 
Other27,211 58,921 86,132 
Total$1,097,075 $579,367 $1,676,442 
Three-month period ended March 30, 2025Consumer PackagingIndustrial Paper PackagingAll OtherTotal
Primary Geographical Markets:
United States$448,034 $377,165 $49,899 $875,098 
EMEA567,024 95,629 4,953 667,606 
Canada3,865 21,434 — 25,299 
APAC24,639 35,837 251 60,727 
Other23,031 57,467 — 80,498 
Total$1,066,593 $587,532 $55,103 $1,709,228 
Note 17: Segment Reporting
The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging.
The products produced and sold within the Consumer Packaging segment are generally used to package a variety of consumer products and consist primarily of round and shaped rigid paper, steel and plastic containers; and metal and peelable membrane ends, closures, and components.
The primary products produced and sold within the Industrial Paper Packaging segment include paperboard tubes, cones, and cores; uncoated recycled paperboard; industrial and specialty plastics; and paper-based protective packaging.
As described in Note 1, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment effective January 1, 2026. The Company no longer reports the results of any of its businesses in All Other. Prior year results for the Industrial Paper Packaging segment and the All Other group of businesses have been recast to conform to the new presentation.
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SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM assesses segment performance and allocates resources to each segment by using each segment’s operating profit. The CODM uses operating profit for each segment in the annual budgeting and forecasting process and reviews segment operating profit quarterly when making decisions about allocating capital and operating resources to segments. Disaggregated assets by segment are not disclosed since segment assets are not regularly provided to the CODM.
Segment operating profit viewed by the Company to evaluate segment performance does not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; gains/losses from the sale of businesses or other assets; acquisition, integration and divestiture-related costs; changes in last-in, first-out (“LIFO”) inventory reserves; derivative gains/losses; or certain other items, if any, the exclusion of which the Company’s management believes improves the comparability and analysis of the ongoing operating performance of the business. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and the All Other group of businesses, except for costs related to discontinued operations.
The following tables set forth financial information about each of the Company’s reportable segments:
SEGMENT FINANCIAL INFORMATION 
Three-month period ended March 29, 2026Consumer PackagingIndustrial Paper PackagingTotal Reportable Segments
Sales from external customers$1,097,075 $579,367 $1,676,442 
Intersegment sales(1)
2,986 28,157 31,143 
1,100,061 607,524 1,707,585 
Reconciliation of sales
Elimination of intersegment sales(31,143)
Total consolidated sales1,676,442 
Less:(3)
Cost of sales(4)
(889,090)(437,341)
Other segment items(5)
(85,322)(100,937)
Segment operating profit$125,649 $69,246 $194,895 
Other segment disclosures:
Equity in (loss)/earnings of affiliates, net of tax$(2)$692 
Depreciation and amortization(6)
50,950 29,759 

33
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

34
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

Three-month period ended March 30, 2025Consumer PackagingIndustrial Paper PackagingTotal Reportable Segments
Sales from external customers$1,066,593 $587,532 $1,654,125 
Intersegment sales(1)
2,769 28,293 31,062 
1,069,362 615,825 1,685,187 
Reconciliation of sales
Other sales(2)
55,193 
Elimination of intersegment sales(31,152)
Total consolidated sales1,709,228 
Less:(3)
Cost of sales(4)
(853,732)(443,078)
Other segment items(5)
(74,859)(96,416)
Segment operating profit$140,771 $76,331 $217,102 
Other segment disclosures:
Equity in (loss)/earnings of affiliates, net of tax$(51)$1,972 
Depreciation and amortization(6)
48,955 29,157 
(1)
Intersegment sales are recorded at a market-related transfer price.
(2)
Other sales represents sales attributable to All Other, which includes the group of businesses that fall below the quantitative threshold for reportable segments. In 2025, these include only ThermoSafe, which the Company sold in November 2025. Accordingly, no businesses are included in All Other in 2026.
(3)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(4)
Cost of sales of reportable segments excludes certain costs, primarily changes in LIFO inventory reserves, net gains or losses from derivatives, and acquisition, integration and divestiture-related costs.
(5)
Other segment items consists of:
Consumer Packaging: Labor and benefits, consulting and professional services, travel, communication, facilities and supplies.
Industrial Paper Packaging: Labor and benefits, consulting and professional services, travel, communication, facilities and supplies.
(6)
Represents significant segment expenses that are regularly provided to the CODM and are included in cost of sales and other segment items within segment operating profit.
35
SONOCO PRODUCTS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in thousands except per share data)
(unaudited)

The following table sets forth the reconciliation of segment operating profit to “Income from continuing operations before income taxes” for the periods presented.
Three Months Ended
March 29, 2026March 30, 2025
Segment operating profit$194,895 $217,102 
Other operating profits(1)
— 6,719 
Unallocated amounts:
Restructuring/Asset impairment charges, net
(15,133)(13,581)
Amortization of acquisition intangibles(44,320)(41,961)
Loss on divestiture of business(1,865)(4,183)
Acquisition, integration and divestiture-related costs(6,338)(27,266)
Changes in LIFO inventory reserves(4,367)(562)
Derivative gains87 2,949 
Other corporate income/(costs), net(2)
5,929 (11,098)
Other operating charges, net(3)
(1,796)(1,259)
Other expense, net(4)
(12,308)(6,517)
Non-operating pension costs(2,496)(3,121)
Interest expense(44,494)(56,027)
Interest income8,651 7,348 
Income from continuing operations before income taxes$76,445 $68,543 
(1)
In 2025, operating profit from segments below the quantitative threshold are attributable to ThermoSafe, part of the All Other group of businesses.
(2)
In 2026, other corporate income/(costs), net represents income earned under a transition services agreement with Toppan. In 2025, other corporate income/(costs), net represents recurring operating expenses previously allocated to TFP that will remain with Sonoco subsequent to the divestiture.
(3)
Primarily consists of highly inflationary accounting in Turkey and other miscellaneous charges in both 2026 and 2025.
(4)
In 2026 and 2025, these expenses relate to charges from third-party financial institutions related to the Company’s centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle, primarily within the Consumer Packaging segment. 2026 also reflects non-operating charges related to certain pre-acquisition liabilities relevant to the SMP EMEA business.

36
SONOCO PRODUCTS COMPANY
The following table sets forth the reconciliation of other segment disclosures to consolidated totals for the periods presented.
Three Months Ended
March 29, 2026March 30, 2025
Equity in earnings of affiliates, net of tax
Consumer Packaging$(2)$(51)
Industrial Paper Packaging692 1,972 
Reportable Segment Total690 1,921 
Adjustments— — 
Consolidated Total$690 $1,921 
Depreciation and amortization
Consumer Packaging$50,950 $48,955 
Industrial Paper Packaging29,759 29,157 
Reportable Segment Total80,709 78,112 
Other(1)
44,320 43,691 
Consolidated Total$125,029 $121,803 
(1)
Other consists of amortization of acquisition intangibles for Sonoco during the three-month periods ended March 29, 2026 and March 30, 2025. Other also includes depreciation for the All Other group of businesses during the three-month period ended March 30, 2025.
Note 18: Commitments and Contingencies
In accordance with the requirements of ASC 450, “Contingencies,” the Company records accruals for estimated losses at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material.
Environmental Matters
The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. The Company has been named as a potentially responsible party at several environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. At March 29, 2026 and December 31, 2025, the accruals for these sites totaled $1,738 and $1,779, respectively, and are included in “Accrued expenses and other payables” on the Company’s Condensed Consolidated Balance Sheets.
Other Legal Matters
In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements.

37
SONOCO PRODUCTS COMPANY
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS
Statements included in this Quarterly Report on Form 10-Q that are not historical in nature, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, 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 (the “Exchange Act”). In addition, Sonoco Products Company (the “Company” or “Sonoco”) and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “aim,” “achieve,” “anticipate,” “assume,” “believe,” “can,” “commit,” “consider,” “continue,” “could,” “develop,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “intend,” “is designed to,” “likely,” “maintain,” “may,” “might,” “objective,” “ongoing,” “opportunity,” “outlook,” “persist,” “plan,” “position,” “possible,” “potential,” “predict,” “project,” “remain,” “seek,” “should,” “strategy,” “target,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding:
•supply chain disruptions and availability and supply of raw materials and energy, and offsetting high raw material, energy, and logistics costs;
•the effects of economic downturns, changing tariffs or trade policy, inflation, volatility and other macroeconomic factors on the Company and its industry, including the Company’s ability to manage such matters and their effects on consumers and customers;
•the resiliency of the Company’s operating model;
•consumer and customer actions in connection with political, social, and economic instability, war and other geopolitical tensions;
•the Company’s ability to improve productivity, reduce its cost structure and the effects thereof;
•the Company’s integration of Titan Holdings I B.V. (“Eviosys”) and the Company’s ability to realize the anticipated benefits of the acquisition, and the effects and timing of, and anticipated costs, synergies and gains resulting from any other contemplated, pending, and completed acquisitions;
•effects and anticipated gains and costs of the Company’s portfolio simplification activities, including with respect to streamlining of the Company’s organizational structure and any contemplated, pending, and completed divestitures, including the Company’s sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”), and its ThermoSafe business (“ThermoSafe”);
•adequacy and anticipated amounts and uses of cash flows;
•capital allocation, including expected amounts of capital spending;
•the Company’s capital structure, including the incurrence of debt and the repayment of debt;
•the Company’s ability to adhere to restrictive covenants in its debt agreements;
•financial and business strategies and the results expected of them;
•producing improvements in earnings;
•profitable sales growth and rates of growth;
•market opportunities and anticipated growth thereof;
•expected impact and costs of resolution of legal proceedings;
•extent and adequacy of provisions for, environmental liabilities and the cost of compliance with environmental laws and regulations;
•the Company’s focus on sustainability and reducing its carbon emissions;
•adequacy of income tax provisions, realization of deferred tax assets, outcomes of uncertain tax issues and tax rates;
•goodwill impairment charges and fair values of reporting units;
•future asset impairment charges and fair values of assets;
•anticipated contributions to pension and postretirement benefit plans, fair values of plan assets, and long-term rates of return on plan assets;
•expected impact of implementation of new accounting pronouncements;
•creation of near-term and long-term value and returns for shareholders, including through the continued payment of dividends; and
•planned stock repurchases.
38
SONOCO PRODUCTS COMPANY
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:
•ability to manage the mix of business;
•ability to identify suitable acquisitions at the levels needed to meet growth targets;
•ability to satisfy closing conditions and close acquisitions, and to finance such acquisitions on acceptable terms;
•ability to successfully integrate newly acquired businesses, including Eviosys, into the Company’s operations, retain key employees, maintain relationships with customers and other third parties, and realize expected cost savings, synergies and other anticipated benefits relating thereto within the expected time period, or at all;
•availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariffs or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine and between the United States and Iran and elsewhere 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 through to customers or otherwise manage these commodity pricing risks;
•costs of labor and employment, including the cost of employee and retiree medical, health, and life insurance benefits and the impact of any work stoppages due to labor disputes;
•success of new product development, introduction and sales, including successful timing of new product or product innovation introductions and success of implementation of new manufacturing technologies, installation of manufacturing equipment, the startup of new facilities and lines, and integration of artificial intelligence (“AI”) to drive productivity and efficiency;
•consumer demand for products and changing consumer preferences, including changes related to inflation, tariffs, and other macroeconomic factors, and changes in consumer attitudes toward plastic packaging;
•ability to be the low-cost global leader in customer-preferred packaging solutions within targeted segments;
•competitive pressures, including new product development, and technological market leadership, reputation for quality, industry overcapacity, customer and supplier consolidation, and changes in competitors’ pricing for products;
•financial conditions of customers and suppliers;
•ability to maintain or increase productivity levels, contain or reduce costs, and maintain positive price/cost relationships;
•ability to negotiate or retain contracts with customers, including in segments with concentration of sales volume;
•inventory management strategies of customers;
•collection of receivables from customers;
•ability to maintain or improve margins and leverage, cash flows and financial position;
•ability to attract and retain talented and qualified employees, managers, and executives;
•ability to profitably maintain and grow existing domestic and international business and market share;
•availability of credit to us, our customers and suppliers in needed amounts and on reasonable terms;
•effects of our indebtedness on our cash flow and business activities;
•fluctuations in interest rates and our borrowing costs;
•fluctuations in obligations and earnings of pension and postretirement benefit plans, including the timing of funding plan obligations, and the accuracy of assumptions of underlying projections of benefit plan obligations and payments, valuation of plan assets, and projections of long-term rates of return;
•foreign currency exchange rate fluctuations, interest rate and commodity price risk and the effectiveness of related hedges;
•resolution of income tax contingencies;
•changes in U.S. and foreign tariffs, tax rates, tax laws, regulations, judicial decisions and interpretations thereof, including income, sales and use, property, value added, employment, and other taxes;
•accuracy in valuation of deferred tax assets;
•the adoption of new, or changes in, accounting standards or interpretations;
39
SONOCO PRODUCTS COMPANY
•accuracy of assumptions underlying projections related to goodwill impairment testing, and accuracy of management’s assessment of goodwill impairment;
•accuracy of assumptions underlying fair value measurements, accuracy of management’s assessments of fair value and fluctuations in fair value;
•ability to maintain effective disclosure controls and internal controls, including with regard to financial reporting, to prevent or detect errors or acts of fraud;
•liability for and costs of resolution of litigation, regulatory actions, or other legal proceedings;
•liability for and anticipated costs of environmental remediation actions;
•effects of environmental laws and regulations, including with respect to climate change and emissions reporting;
•operational disruptions at our major facilities;
•failure or disruptions in our information technology (“IT”) systems;
•loss of consumer or investor confidence, including as a result of public concerns about products packaged in our containers, or chemicals or substances used in raw materials or in the manufacturing process;
•ability to protect our intellectual property rights;
•changing climate and greenhouse gas effects;
•ability to meet environmental, sustainability and other similar goals;
•actions of domestic or foreign government agencies, the impact of new and evolving laws, regulations, rules and standards affecting the Company, including laws and regulations relating to packaging for food products and foods packaged therein, and increased costs of compliance;
•international, national, and local economic and market conditions and levels of unemployment;
•economic disruptions resulting from changing tariff policies and trade wars, the overall uncertainty surrounding international trade relations, war and other geopolitical tensions (such as the ongoing conflicts between Russia and Ukraine and between the United States and Iran and elsewhere in the Middle East, the potential escalation of tensions between China and Taiwan, and recent events in Venezuela), public health events, terrorist activities, and natural disasters, and our ability to successfully mitigate any negative impacts of such disruptions; and
•inflation and the activities and operations in highly inflationary economies.
More information about the risks, uncertainties, and assumptions that may cause actual results to differ materially from those expressed or forecasted in forward-looking statements is provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 under Item 1A - “Risk Factors” and throughout other sections of that report and in other reports filed with the Securities and Exchange Commission (“SEC”). In light of these various risks, uncertainties and assumptions, the forward-looking events discussed in this Quarterly Report on Form 10-Q might not occur.
The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. You are, however, advised to review any further disclosures we make on related subjects, and about new or additional risks, uncertainties and assumptions, in our future filings with the SEC on Forms 10-K, 10-Q, and 8-K.
40
SONOCO PRODUCTS COMPANY

COMPANY OVERVIEW
Sonoco is a multi-billion dollar global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging products serving multiple end markets. The Company has approximately 265 locations in 37 countries, serving some of the world’s best-known brands around the globe.
Sonoco competes in multiple product categories, with the majority of the Company’s revenues attributable to products and services sold to consumer and industrial products companies for use in the packaging of their products for sale or shipment. The Company also manufactures uncoated recycled paperboard for both internal use and open market sale. Each of the Company’s operating units has its own sales staff and maintains direct sales relationships with its customers.
Late last year, Sonoco completed its multi-year portfolio transformation strategy, which was designed to create a more focused and simplified operating structure enabling sustainable earnings growth, accelerated margin expansion, and efficient capital allocation. Management believes that this streamlined structure positions the Company for more consistent execution of these strategic priorities.
Highlights of Sonoco’s portfolio transformation strategy in recent years included the following significant acquisition and divestiture activity:
•The acquisition of Eviosys, Europe’s leading food cans, ends and closures manufacturer for net cash consideration of approximately $3.8 billion on December 4, 2024. This transaction, the largest in the Company’s history, expanded Sonoco’s global leadership in metal food can and aerosol packaging, facilitating our ability to partner with global customers to advance innovation and sustainability in metal packaging offerings.
•The sale of TFP on April 1, 2025 for net cash consideration of approximately $1.8 billion.
•The sale of ThermoSafe on November 3, 2025 for net cash consideration of approximately $0.7 billion.
The Company’s operating and reporting structure consists of two reportable segments: Consumer Packaging and Industrial Paper Packaging. Following the sale of ThermoSafe, part of the All Other group of businesses, the Company’s industrial and specialty plastics business (“Industrial Plastics”) was the only remaining business in the All Other category. Effective January 1, 2026, the Company changed its operating and management reporting structure and, as a result, realigned Industrial Plastics to be reported within the Industrial Paper Packaging segment. Following this realignment, the All Other category as presented in this Quarterly Report on Form 10-Q reflects only the prior year results related to ThermoSafe. All prior year results for the Industrial Paper Packaging segment and the All Other group of businesses have been recast to conform to the new presentation.
In addition, beginning in 2026 the Company consolidated its global metal packaging and rigid paper containers businesses under one structure based on two geographies — Consumer Packaging, Americas and Consumer Packaging, Europe, Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”). The Company believes the new geographically integrated structure creates a simpler and more efficient operating model that will lead to further innovation, collaboration and growth opportunities.
Sonoco continues to work on commercial, operational, and supply chain excellence programs to shift the mix of its business towards higher-valued products and increase overall productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives, as well as strategic pricing initiatives intended to better capture input costs and the value of the services provided. The Company also remains focused on improving its competitive position by reducing its cost structure through targeted restructuring activities for operations and support functions intended to enable the Company’s businesses to better leverage market capabilities and generate cash flow.
In March 2026, the Company opened a new paper can production facility in Nong Yai, Thailand, to serve the growing stacked chip market in Asia in its Consumer Packaging segment. This new facility represents a strategic investment that is expected to support growing demand across Asia while advancing the Company’s innovation in sustainable packaging and utilizing advanced production systems designed for efficiency, speed and consistency.
The Company is planning to invest $20 million in its Industrial Paper Packaging segment to add new nailed wood reel production capacity at the Company’s Hartselle, Alabama, facility to help meet growing wire and cable infrastructure demand to support artificial intelligence data centers.
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SONOCO PRODUCTS COMPANY
The Company remains focused on sustainability excellence and reducing its global carbon emissions. In February 2026, the Company announced that a Virtual Power Purchase Agreement developed between Sonoco and ENGIE North America, consisting of 60 wind turbines in Crockett County, Texas, had become operational.
Sonoco’s mission is to be the global leader in value-added, sustainable metal and fiber consumer and industrial packaging. In pursuit of this mission, Sonoco’s continued priorities in 2026 and beyond will be to invest in high-return growth and margin expansion projects, to maintain a strong balance sheet by focusing on further debt reduction, and to continue to return capital to shareholders.
The Company believes that its simplified structure will enable greater strategic and operational focus, help generate proceeds to fund deleveraging and further focus capital investments in the Company’s Consumer Packaging and Industrial Paper Packaging businesses, and deliver on its strategic priorities by driving sustainable growth, further expanding margins and efficiently allocating capital, maintaining a strong balance sheet and returning capital to shareholders. By transforming into a simpler, stronger and more sustainable company, the Company believes it is positioned to grow through the remainder of 2026 and beyond.
Global Trade Developments
Recent developments in U.S. and foreign trade policy have increased uncertainty for the global economy and the Company’s business. On March 4, 2025, the U.S. government imposed a 25% tariff on all imports from Canada or Mexico. After imposing this tariff, the U.S. government allowed for the temporary exemption from the tariff for any goods that comply with the USMCA, which has helped mitigate the impact of the tariff on the Company’s operations in North America. On February 10, 2025, the United States announced the expansion of Section 232 Tariffs on steel and aluminum imported into the United States, effective March 12, 2025, and the termination of the granting of new exclusions to mitigate these tariffs. As a result, imported steel and aluminum originating from most countries is currently subject to a 50% duty.
The United States also imposed reciprocal tariffs at a baseline rate of 10%, effective April 5, 2025, and later set firmly established tariff rates for various countries at the beginning of August 2025. For the most part, these reciprocal tariffs were incremental increases over the previously established 10% temporary reciprocal tariffs. On February 20, 2026, the U.S. Supreme Court invalidated certain of these tariffs. On April 20, 2026, U.S. Customs and Border Protection launched an electronic system to manage refunds for tariffs paid under the International Emergency Economic Powers Act (“IEEPA”). The Company will seek refund of all eligible IEEPA tariffs; however, the amount of any such recovery is not expected to be material.
Effective April 6, 2026, the United States overhauled Section 232 tariffs on steel and aluminum moving from a metal-content-based assessment to the full customs value of the imported goods. Under the revised rules, many steel and aluminum products, along with their derivative articles, now face significantly higher tariffs. The metal ends that the Company imports into the United States are now subject to a 25% tariff. Future changes in tariff and trade policy may result in additional changes, the exact scope of which is not known at this time. While the full impact of the most recent Section 232 changes is uncertain, the Company does not currently expect the current tariff environment to have a material direct effect on its profitability or cash flows over the remainder of 2026 because the Company’s manufacturing network is designed to serve local markets, reducing its exposure to cross-border disruptions and tariff-related risks. While the Company is actively working with its customers to help manage the impacts of higher input costs driven by tariffs, its business model allows for pricing adjustments when necessary. In addition, the Company believes its transformed portfolio following the Eviosys acquisition and the sales of TFP and ThermoSafe is significantly more resilient, with nearly two-thirds of the Company’s sales in 2025 coming from the Consumer Packaging segment, a segment that has historically demonstrated strong performance across economic cycles. In addition, while the Section 232 Tariffs impact input costs for the Company’s U.S.-based operations with Consumer Packaging, Americas, which source a portion of their steel and aluminum purchases from outside the United States, the Company intends, and has the contractual ability, to continue to pass such increases in cost due to tariffs to its customers.
The ultimate resolution and consequences of these trade policy developments, and their effect on the Company, is uncertain and the Company will continue to monitor trade policy changes closely in order to adapt its strategies and to maintain competitiveness in a challenging market environment. See “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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SONOCO PRODUCTS COMPANY
Other Recent Developments
The ongoing conflict between the United States and Iran has introduced additional volatility into global energy markets, shipping corridors, and raw material supply chains. The Company relies on a diversified global supplier base for resin, chemicals, adhesives, and other inputs, some of which are indirectly influenced by crude-oil-linked pricing or international transportation costs. As a result of this geopolitical and macroeconomic uncertainty, the Company expects to experience increases in cost of sales from these higher input costs, as well as higher energy and logistics costs, including higher fuel surcharges. While the Company will seek to reduce the potential impact on its customers, it is anticipated that such increases will be passed to our customers and that these cost pressures will not materially impact the Company’s ability to source materials, operate facilities, or meet customer demand. Based on information currently available, the Company does not expect these factors to materially impact its near-term financial performance. However, the duration and broader economic consequences of the conflict, including the potential for further increases in energy and logistics costs, remain uncertain. The Company will continue to evaluate developments in the geopolitical environment and adjust its risk management strategies as conditions evolve.
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”), which includes a broad range of tax reform provisions, including the extension of key provisions of the Tax Cuts and Jobs Act of 2017, was signed into law in the United States. The Company has evaluated the impact of the OBBBA as part of its projected 2026 results, and the effects of the legislation are reflected in its income tax provision for the quarter. While certain provisions of the OBBBA are expected to have a favorable impact on the Company’s income tax profile, the Company does not currently anticipate that the OBBBA will have a material effect on its effective tax rate, financial results or cash flows for 2026. The Company will continue to monitor and assess the application of the OBBBA and any related regulatory guidance as it becomes available.
RESULTS OF OPERATIONS
The Company’s financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Sonoco’s management considers a variety of both GAAP and non-GAAP financial and operating measures in assessing the Company’s financial performance. The key GAAP measures used are net sales, operating profit, gross profit margin, net income attributable to Sonoco, diluted earnings per share (“EPS”), segment operating profit, and segment operating profit margin. The key non-GAAP measures used are Adjusted operating profit, Adjusted net income attributable to Sonoco, Adjusted diluted EPS, Adjusted EBITDA, Segment Adjusted EBITDA and Segment Adjusted EBITDA margin. For information about the Company’s use of non-GAAP measures and reconciliations of these measures to the most directly comparable GAAP measures see “Non-GAAP Financial Measures” below.
Management may also assess year-over-year changes in operating performance in terms of productivity savings or usage, which is driven by procurement savings or losses, production efficiencies or inefficiencies and the effect of fixed cost reduction initiatives. Management views productivity as a measure of operational excellence of the business and uses it to evaluate improvements in manufacturing efficiency, including automation, and other fixed and variable cost reduction initiatives. Management provides investors with this information to evaluate Sonoco’s operating results in a manner similar to how management evaluates operating performance. The Company calculates productivity savings as the
difference between applicable current period costs and prior year costs, excluding the impact of estimated inflation or deflation, and volume changes where appropriate.
On December 18, 2024, the Company announced that it had entered into an agreement to sell TFP. This sale was completed on April 1, 2025. In accordance with applicable accounting guidance, the results of TFP are presented as discontinued operations in the Condensed Consolidated Statements of Income and, as such, have been excluded from both continuing operations and segment results for all periods prior to the completion of the sale presented in this Quarterly Report on Form 10-Q. The Condensed Consolidated Statements of Comprehensive Income, Changes in Total Equity, and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. All amounts, percentages and disclosures for all periods presented in this Quarterly Report on Form 10-Q reflect only the continuing operations of Sonoco unless otherwise noted.
Amounts reported in thousands within this Quarterly Report on Form 10-Q are computed based on the actual amounts. As a result, the sum of the components may not equal the total amount reported in thousands due to rounding. In addition, certain columns and rows within tables may not sum to the totals due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.
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SONOCO PRODUCTS COMPANY
First Quarter 2026 Compared with First Quarter 2025
The following discussion provides a review of results for the three-month period ended March 29, 2026 versus the three-month period ended March 30, 2025.
Overview
Consolidated net sales for the first quarter of 2026 were $1.7 billion, a $(32.8) million or 1.9% decline from the first quarter of 2025. Lower volumes resulted in lower sales in the first quarter of 2026 of $(97.8) million compared to the same period last year as macroeconomic and geopolitical pressures weighed on both the Company’s supply chain and its customers and the November 2025 divestiture of ThermoSafe further reduced sales by $(55.8) million. These decreases were partially offset by a favorable impact from foreign currency translation of $87.1 million and a $38.7 million benefit from higher selling prices implemented to offset the effects of inflation and tariffs. All other factors contributed to a net reduction of $(5.0) million in the first quarter of 2026 compared to the same period last year.
GAAP operating profit for the first quarter of 2026 was $127.1 million, an increase of 0.2% from the $126.9 million reported in the first quarter of 2025. The increase in GAAP operating profit was primarily due to productivity savings from fixed cost reduction initiatives totaling $4.6 million, lower losses on the sale of businesses of $2.3 million, and other net favorable impacts of $0.5 million. These favorable items were partially offset by the impact of the ThermoSafe divestiture of $(7.2) million. Adjusted Operating Profit for the first quarter of 2026 was $200.8 million, a decrease of (5.6)% from the $212.7 million reported for the same period in 2025, primarily resulting from the impact of the ThermoSafe divestiture.
GAAP net income attributable to Sonoco for the first quarter of 2026 increased to $67.6 million, or $0.68 per diluted share, compared to $54.4 million, or $0.55 per diluted share, for the first quarter of 2025. This increase was primarily due to the increase in GAAP operating profit described above, and lower net interest expense and provision for income taxes as described more fully below, partially offset by the decrease in GAAP net income from discontinued operations resulting from the April 1, 2025 sale of TFP and higher Other expense, net in the current year as described below. Adjusted net income attributable to Sonoco and Adjusted diluted EPS for the first quarter of 2026 were $119.4 million (or $1.20 per diluted share), compared with $136.8 million (or $1.38 per diluted share) for the same period in 2025. The decrease is primarily attributable to the sale of TFP.
Costs and Expenses
Cost of goods sold decreased by $(24.7) million, or 1.8%, in the first quarter of 2026 compared with the first quarter of 2025. This decrease resulted from a $(40.3) million impact from the divestiture of ThermoSafe, lower labor costs of $(18.8) million, and the nonrecurrence of inventory step-up amortization recognized in the first quarter of 2025 in connection with the Eviosys acquisition of $(17.9) million. These decreases were partially offset by higher direct material costs and outbound freight costs of $44.1 million and $6.9 million, respectively. Gross profit margins decreased slightly from 20.7% in the first quarter of 2025 to 20.6% in the first quarter of 2026.
Selling, general and administrative costs decreased by $(7.5) million, or 3.6%, and were 12.0% of sales in the first quarter of 2026, compared to 12.2% of sales in the first quarter of 2025. This decrease reflects reduced costs of $(7.6) million from the ThermoSafe divestiture and lower acquisition, integration, and divestiture-related costs of $(2.9) million, partially offset by net increases, primarily salaries and benefits, totaling $3.0 million.
Restructuring/Asset impairment charges totaled $15.1 million in the first quarter of 2026, compared with $13.6 million during the same period last year. The charges in the current year related primarily to ongoing restructuring costs related to prior year plant closures and headcount eliminations in conjunction with the Company’s ongoing organizational effectiveness efforts. Additional information regarding restructuring and asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Loss on divestiture of business totaled $1.9 million in the first quarter of 2026 reflecting a charge related to the final working capital settlement for the ThermoSafe divestiture. Loss on divestiture of business of $4.2 million during the first quarter of 2025 reflected a $5.4 million loss from the sale of the Company’s tube and core operations in Venezuela, partially offset by a $1.2 million gain from the sale of a small construction tube operation in France, both part of the Industrial Paper Packaging segment. See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.
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SONOCO PRODUCTS COMPANY
Other expense, net was $12.3 million and $6.5 million in the first quarter of 2026 and 2025, respectively. The amounts in both years are comprised of 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 our Consumer Packaging segment. Other expense, net in the first quarter of 2026 also includes non-operating charges related to certain pre-acquisition liabilities relevant to the Sonoco Metal Packaging (“SMP”) EMEA business.
Net interest expense for the first quarter of 2026 decreased to $35.8 million, compared with $48.7 million during the first quarter of 2025, primarily due to lower average debt levels resulting from the Company’s repayment of debt during 2025 utilizing proceeds from the divestitures of TFP and ThermoSafe.
The effective tax rates on GAAP income from continuing operations before income taxes and Adjusted income from continuing operations before income taxes in the first quarter of 2026 were 12.4% and 25.5%, respectively, compared with 30.9% and 25.7%, respectively, in the corresponding prior year quarter. The decrease in the GAAP effective tax rate was primarily from a provision-to-return adjustment related to a retroactive U.S. tax election.
Discontinued Operations
Net income from discontinued operations totaled $5.2 million in the first quarter of 2025. The sale of TFP was completed on April 1, 2025.
Reportable Segments
The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. During 2025, the All Other group of businesses consisted of ThermoSafe and the Company’s industrial and specialty plastics business (“Industrial Plastics”). With the divestiture of ThermoSafe in November 2025, only Industrial Plastics remained. Effective January 1, 2026, the Company changed its operating and management reporting structure to include the results of Industrial Plastics in the Company’s Industrial Paper Packaging segment and discontinued the use of All Other. Results for prior periods have been revised to conform with the current presentation.
The following table summarizes net sales attributable to each of the Company’s segments for the first quarters of 2026 and 2025 and the All Other group of businesses for the first quarter of 2025:
Three Months Ended
(Dollars in thousands)March 29, 2026March 30, 2025%
 Change
Net sales:
Consumer Packaging$1,097,075 $1,066,593 2.9 %
Industrial Paper Packaging579,367 587,532 (1.4)%
Total reportable segments1,676,442 1,654,125 1.3 %
All Other— 55,103 (100.0)%
Net sales$1,676,442 $1,709,228 (1.9)%
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SONOCO PRODUCTS COMPANY
The following table summarizes operating profit attributable to each of the Company’s reportable segments, and Corporate-related activity for the first quarters of 2026 and 2025 and the All Other group of businesses for the first quarter of 2025:
Three Months Ended
(Dollars in thousands)March 29, 2026March 30, 2025%
Change
Operating profit:
Consumer Packaging$125,649 $140,771 (10.7)%
Industrial Paper Packaging69,246 76,331 (9.3)%
Segment operating profit194,895 217,102 (10.2)%
All Other— 6,719 (100.0)%
Corporate
   Restructuring/Asset impairment charges(15,133)(13,581)
   Amortization of acquisition intangibles(44,320)(41,961)
Loss on divestiture of business(1,865)(4,183)
   Acquisition, integration and divestiture-related costs(6,338)(27,266)
   Other operating charges, net(147)(9,970)
Operating profit$127,092 $126,860 0.2 %
Consumer Packaging
The products produced and sold within the Consumer Packaging segment are generally used to package a variety of consumer products and consist primarily of round and shaped rigid paper, steel and plastic containers; and metal and peelable membrane ends, closures, and components. These products primarily serve the consumer staples market, focused on food, beverage, household, personal, and pharmaceutical products.
Segment net sales increased $30.5 million, or 2.9%, over the prior year quarter as the favorable impact of foreign exchange rates added $67.7 million and price increases implemented to offset the effects of inflation and tariffs added approximately $27.6 million of sales. These favorable factors were partially offset by softer volume/mix across the segment of $(61.6) million related to macroeconomic conditions and the impact of severe winter weather along the east coast of the United States in the first quarter of 2026.
Segment operating profit decreased compared to the corresponding prior year quarter primarily due to softer volumes, partially offset by the benefits from productivity savings and a favorable price/cost environment. Segment operating profit margin were 11.5% and 13.2% in the first quarter of 2026 and 2025, respectively.
Industrial Paper Packaging    
The primary products produced and sold within the Industrial Paper Packaging segment include goods produced from recycled fiber, including paperboard tubes, cones, and cores; paper-based protective packaging; and uncoated recycled paperboard for folding cartons, can board and laminated structures. Products across this segment support end markets, primarily in paper, textile, and films.
Segment net sales decreased $(8.2) million, or (1.4)%, from the corresponding prior year quarter as lower volume/mix across the segment reduced sales by $(36.2) million, partially offset by the favorable impact of foreign exchange rates of $18.7 million and price gains of $11.2 million resulting from index-based pricing resets. All other factors contributed to a reduction of $(1.9) million in the first quarter of 2026 compared with the same period last year.
Segment operating profit decreased compared to the corresponding prior year quarter primarily due to lower volume/mix and losses attributable to a fire at a recycling facility in Greenville, South Carolina. These unfavorable factors were partially offset by strong productivity savings. Segment operating profit margin decreased to 12.0% in the first quarter of 2026 from 13.0% in the same period last year.
All Other    
Net sales and operating profit reported for All Other in 2025 relate to the Company’s ThermoSafe business, which was sold in November 2025.
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SONOCO PRODUCTS COMPANY

NON-GAAP FINANCIAL MEASURES
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.
1 Restructuring 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. More information about the Company’s use of non-GAAP financial measures is provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, under Item 7 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Non-GAAP Financial Measures.”
In addition to the “Adjusted” results described above, the Company also uses Adjusted EBITDA, Segment Adjusted EBITDA, and Segment Adjusted EBITDA Margin. 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.
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.
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SONOCO PRODUCTS COMPANY
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.
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 March 29, 2026 and March 30, 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 March 29, 2026
Dollars in thousands, except per share dataOperating Profit Income from Continuing Operations Before Income TaxesProvision for Income Taxes Net Income Attributable to SonocoDiluted EPS
As Reported (GAAP)$127,092 $76,445 $9,510 $67,601 $0.68 
Acquisition, integration and divestiture-related costs1
6,338 6,338 1,546 4,792 0.05 
Changes in LIFO inventory reserves4,367 4,367 1,082 3,285 0.03 
Amortization of acquisition intangibles44,320 44,320 9,762 34,558 0.35 
Restructuring/Asset impairment charges, net15,133 15,126 3,488 11,643 0.12 
Loss on divestiture of business2
1,865 1,865 462 1,403 0.01 
Other expense, net3
— 6,592 — 6,592 0.07 
Non-operating pension costs— 2,496 645 1,851 0.02 
Net gains from derivatives(87)(87)(22)(65)— 
Other adjustments4
1,796 1,796 14,104 (12,308)(0.13)
Total adjustments73,732 82,813 31,067 51,751 0.52 
Adjusted$200,824 $159,258 $40,577 $119,352 $1.20 
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, the April 2025 divestiture of TFP and the November 2025 divestiture of ThermoSafe.
2 Loss on divestiture of business reflects the final net working capital settlement related to the November 2025 divestiture of ThermoSafe.
3 Amount relates to certain pre-acquisition liabilities relevant to the SMP EMEA business.
4 Other adjustments to the provision for income taxes include a benefit of $14,232 related to a provision-to-return adjustment for a retroactive U.S. tax election.

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SONOCO PRODUCTS COMPANY
For the three-month period ended March 30, 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
$126,860 $68,543 $21,147 $54,429 $0.55 
Acquisition, integration and divestiture-related costs2
27,266 27,266 6,637 30,295 0.30 
Changes in LIFO inventory reserves562 562 142 420 — 
Amortization of acquisition intangibles41,961 41,961 9,604 32,144 0.32 
Restructuring/Asset impairment charges, net13,581 13,581 3,200 10,715 0.11 
Loss on divestiture of business4,183 4,183 372 3,811 0.04 
Non-operating pension costs— 3,121 798 2,323 0.02 
Net gains from derivatives(2,949)(2,949)(744)(2,205)(0.02)
Other adjustments3
1,259 1,259 (603)4,908 0.06 
Total adjustments85,863 88,984 19,406 82,411 0.83 
Adjusted$212,723 $157,527 $40,553 $136,840 $1.38 
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 $37,791, $12,979 and $7,807, respectively.
2 Acquisition, integration and divestiture-related costs relate mostly to the Company’s December 2024 acquisition of Eviosys and the divestiture of TFP, which was completed on April 1, 2025.
3 Other adjustments include discrete tax items primarily related to a $3,500 tax expense due to the reduction of the deferred tax asset on the outside basis of certain held-for-sale entities.
Adjusted EBITDA1
Three Months Ended
Dollars in thousandsMarch 29, 2026March 30, 2025
Net income attributable to Sonoco$67,601 $54,429 
Adjustments:
Interest expense44,494 80,938 
Interest income(8,651)(7,629)
Provision for income taxes9,510 28,954 
Depreciation and amortization125,029 121,492 
Non-operating pension costs2,496 3,121 
Non-operating other expense2
6,592 — 
Net income attributable to noncontrolling interests24 60 
Restructuring/Asset impairment charges, net15,133 14,007 
Changes in LIFO inventory reserves4,367 562 
Loss on divestiture of business1,865 4,183 
Acquisition, integration and divestiture-related costs6,338 39,942 
Net gain from derivatives(87)(2,949)
Other non-GAAP adjustments1,796 646 
Adjusted EBITDA$276,507 $337,756 
1 For the period ended March 30, 2025, Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.
2 Amount relates to certain pre-acquisition liabilities relevant to the SMP EMEA business.
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SONOCO PRODUCTS COMPANY
The Company does not calculate net income by segment; therefore, Adjusted EBITDA by segment is reconciled to the closest GAAP measure of segment profitability, segment operating profit. 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 or other assets; 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 remaining general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments, except for costs related to discontinued operations and All Other prior to 2026. Total operating profit is composed of the sum of segment and All Other operating profit plus certain items that have been allocated to Corporate, including amortization of acquisition intangibles; restructuring/asset impairment charges; changes in LIFO inventory reserves; acquisition, integration and divestiture-related costs; gains/losses from the sale of businesses or other assets; gains/losses on derivatives; and certain other items that were excluded from segment and All Other operating profit. As previously described, the use of All Other was discontinued effective January 1, 2026.
Segment Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
For the Three Months Ended March 29, 2026
Dollars in thousandsConsumer Packaging segmentIndustrial Paper Packaging segmentCorporateTotal
Segment and Total Operating Profit1
$125,649 $69,246 $(67,803)$127,092 
Adjustments:
Depreciation and amortization2
50,950 29,759 44,320 125,029 
Other expense, net3
— — (5,716)(5,716)
Equity in (loss)/earnings of affiliates, net of tax(2)692 — 690 
Restructuring/Asset impairment charges, net4
— — 15,133 15,133 
Changes in LIFO inventory reserves5
— — 4,367 4,367 
Acquisition, integration and divestiture-related costs6
— — 6,338 6,338 
Loss on divestiture of business7
— — 1,865 1,865 
Net gain from derivatives8
— — (87)(87)
Other non-GAAP adjustments— — 1,796 1,796 
Segment Adjusted EBITDA$176,597 $99,697 $213 $276,507 
Net Sales$1,097,075 $579,367 
Segment Operating Profit Margin11.5 %12.0 %
Segment Adjusted EBITDA Margin16.1 %17.2 %

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 Packaging segment of $39,368 and the Industrial Paper Packaging segment of $4,952.
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 Packaging segment.
4 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $9,107 and the Industrial Paper Packaging segment of $5,959.
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SONOCO PRODUCTS COMPANY
5 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $3,853 and the Industrial Paper Packaging segment of $514.
6 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $643.
7 Included in Corporate is a loss of $1,865 from the divestiture of ThermoSafe, previously part of the All Other group of businesses.
8 Included in Corporate are net gains from derivatives associated with the Consumer Packaging segment of $(8) and the Industrial Paper Packaging segment of $(79).

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
For the Three Months Ended March 30, 2025
Excludes results of discontinued operations
Dollars in thousandsConsumer Packaging segmentIndustrial Paper Packaging segmentAll OtherCorporateTotal
Segment and Total Operating Profit$140,771 $76,331 $6,719 $(96,961)$126,860 
Adjustments:
Depreciation and amortization1
48,955 29,157 1,730 41,961 121,803 
Other expense, net2
— — — (6,517)(6,517)
 Equity in (loss)/earnings of affiliates, net of tax(51)1,972 — — 1,921 
Restructuring/Asset impairment charges, net3
— — — 13,581 13,581 
Changes in LIFO inventory reserves4
— — — 562 562 
Acquisition, integration and divestiture-related costs5
— — — 27,266 27,266 
Loss on divestiture of business6
— — — 4,183 4,183 
Net gains from derivatives7
— — — (2,949)(2,949)
Other non-GAAP adjustments— — — 1,259 1,259 
Segment Adjusted EBITDA$189,675 $107,460 $8,449 $(17,615)$287,969 
Net Sales$1,066,593 $587,532 $55,103 
Segment Operating Profit Margin13.2 %13.0 %12.2 %
Segment Adjusted EBITDA Margin17.8 %18.3 %15.3 %

1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $36,502, the Industrial Paper Packaging segment of $5,265, and the All Other group of businesses of $194.
2 These 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 Packaging segment.
3 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $1,220, the Industrial Paper Packaging segment of $12,438, and a gain in the All Other group of businesses of $77.
4 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $562.
5 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $20,072 and the Industrial Paper Packaging segment of $218.
6 Included in Corporate are losses from the divestiture of businesses associated with the Industrial Paper Packaging segment of $4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela.
7 Included in Corporate are net gains from derivatives associated with the Consumer Packaging segment of $(284), the Industrial Paper Packaging segment of $(2,552), and the All Other group of businesses of $(113).

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SONOCO PRODUCTS COMPANY


FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES
Operating activities used cash of $367.9 million and $208.1 million in the first three months of 2026 and 2025, respectively, a higher year-over-year use of cash of $159.8 million. GAAP net income increased by $13.1 million year over year, primarily as a result of lower year-over-year acquisition, integration, and divestiture-related costs, partially offset by higher depreciation and amortization costs. Net working capital used $244.3 million of cash in the first three months of 2026, while using $309.4 million in the same period of 2025, for a lower year-over-year use of cash of $65.1 million. Accounts receivable used $7.5 million less cash during the first three months of 2026 than in the same period of 2025 as a result of a changing mix in customer payment terms and strong focus on cash management. Inventory used cash of $105.7 million in the first three months of 2026, while using $110.2 million in the same period of 2025 due to higher overall inventory levels, mainly in tinplate steel, reflecting the impacts of both inflation and seasonality. Accounts payable used cash of $81.8 million and $134.9 million in the first three months of 2026 and 2025, respectively. The lower use of cash was due to timing of purchases and scheduled payments. The Company has continued to actively manage inventories and payment terms with customers and suppliers to both address risk and balance economic benefit. Accrued expenses and other assets and liabilities used $153.4 million and $100.2 million of cash in the first three months of 2026 and 2025, respectively, for a greater year-over-year use of cash of $53.1 million. The primary driver contributing to the change was higher cash payments made under the transition services agreement with the buyer of TFP, of $72.0 million, of which $36.7 million is included in Other receivables at March 29, 2026 and expected to be reimbursed to the Company during the second quarter of 2026. Other drivers included year-over-year increases in payments related to acquisition/divestiture-related costs of $6.6 million and restructuring actions of $3.7 million, partially offset by lower year-over-year interest payments of $4.9 million and management incentive compensation of $2.9 million. Additionally, prepaid expenses used $48.1 million and $0.9 million of cash in 2026 and 2025, respectively, reflecting higher year-over-year advance payments for steel purchases from China. Income taxes payable and other income tax items used $122.2 million of cash in first three months of 2026, compared to providing $16.7 million of cash in the same period of 2025, primarily due to the payment of taxes during the quarter on the gains from the 2025 divestitures of TFP and ThermoSafe.
Investing activities used $76.1 million and $88.6 million of cash in the first three months of 2026 and 2025, respectively, for a lower year-over-year use of cash of $12.5 million. Capital expenditures during the first three months of 2026 totaled $62.1 million, a decrease of $30.6 million from the prior year. Net proceeds from the sale of businesses during the first three months of 2026 reflect the Company’s payment of final net working capital settlements of $15.2 million and $1.9 million to the buyers of TFP and ThermoSafe, respectively. Proceeds from these acquisitions were received in April 2025 and November 2025, respectively. Net proceeds from the sale of businesses in the first three months of 2025 reflect $2.0 million of proceeds related to the July 1, 2023 sale of the Company’s U.S. BulkSak business released from escrow in February 2025 and $1.5 million of proceeds from the sale of a small construction tube operation in France.
Financing activities provided $302.2 million and $29.6 million of cash in the first three months of 2026 and 2025, respectively. The primary driver of the year-over-year change was higher net borrowings during the first three months of 2026. Net borrowings, primarily from the issuance of commercial paper, provided $359.0 million of cash during the first three months of 2026, while providing $79.2 million during the same period last year. Net borrowing in the prior year reflected proceeds from the issuance of commercial paper of $528.0 million, partially offset by $448.8 million in net debt repayments, including the repayment upon maturity of the $400 million aggregate principal amount of the Company’s 1.800% notes due February 2025. The change in book cash overdrafts was a lower year-over-year provision of cash of $9.5 million. Cash used to pay dividends increased by $1.1 million year over year, reflecting the increase in the quarterly dividend payment from $0.52 per share to $0.53 per share approved by the Company’s Board of Directors in April 2025. Cash used to repurchase the Company’s common stock to satisfy employee tax withholding obligations in association with the exercise of certain share-based compensation awards was $7.0 million in the three-month period ended March 29, 2026, compared to $10.6 million in the corresponding prior-year period.
During the three-month period ended March 29, 2026, the Company reported a net decrease in cash and cash equivalents of $12.1 million due to currency translation adjustments resulting from a stronger U.S. dollar relative to certain foreign currencies, principally the euro, in which the Company’s cash and cash equivalents were held.
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SONOCO PRODUCTS COMPANY
The Company’s cash balances are held in numerous locations throughout the world. At March 29, 2026 and December 31, 2025, approximately $207.1 million and $193.3 million, respectively, of the Company’s reported cash and cash equivalents balances of $224.5 million and $378.4 million, respectively, were held outside of the United States by its foreign subsidiaries. Cash held outside of the United States is available to meet local liquidity needs or for capital expenditures, acquisitions, and other offshore growth opportunities.
The Company uses a notional pooling arrangement with an international bank to help manage global liquidity requirements. Under this pooling arrangement, the Company and its participating subsidiaries may maintain either a cash deposit or a borrowing position through local currency accounts with the bank, so long as the aggregate position of the global pool is a notionally calculated net cash deposit. Because it maintains a security interest in the cash deposits and has the right to offset the cash deposits against the borrowings, the bank provides the Company and its participating subsidiaries favorable interest terms on both the cash deposit and borrowing positions.
The Company maintains a revolving credit facility with total commitments of $1.25 billion and a maturity date of May 3, 2029. The Company’s $1.25 billion commercial paper program is supported by the revolving credit facility. At March 29, 2026, the Company had $344 million in commercial paper balances outstanding; accordingly, the committed capacity available for drawdown under its revolving credit facility at March 29, 2026 was $906 million. The Company has the contractual right to draw funds directly on the underlying revolving credit facility, which could possibly occur if there were a disruption in the commercial paper market.
On March 23, 2026, the Company entered into a credit agreement with the lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent (the “Term Credit Agreement”) that provides the Company with a delayed draw term loan facility in an aggregate principal amount of up to $300 million on an unsecured basis (the “Term Loan Facility”). The Term Loan Facility may be drawn, subject to the satisfaction of certain conditions, on or prior to September 13, 2026. Borrowings under the Term Loan Facility, net of any prepayments, will become payable in full on the second anniversary of the Funding Date (as defined in the Term Credit Agreement) and will bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) the forward-looking Secured Overnight Financing Rate term rate (such borrowings, “Term SOFR Loans”), (ii) a base rate (such borrowings, “Base Rate Loans”), or (iii) a combination thereof, plus, in each case, an applicable margin calculated based on the Company’s credit ratings, ranging from 0.850% to 1.100% per annum for Term SOFR Loans and from 0.000% to 0.100% per annum for Base Rate Loans. As of March 29, 2026, no draws had been made under the Term Loan Facility.
At March 29, 2026, the Company had scheduled debt maturities of approximately $1.2 billion over the next twelve months. The Company believes cash on hand and available credit, including the Term Loan Facility, combined with expected net cash flows generated from operating and investing activities, will provide sufficient liquidity to cover these and other cash flow needs of the Company over the next twelve months and beyond.
Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements. As of March 29, 2026, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.
Acquisitions and internal investments are key elements of the Company’s growth strategy. The Company believes that its cash on hand, coupled with cash generated from operations and available borrowing capacity, will enable it to support this strategy. Although the Company believes that it has excess borrowing capacity beyond its current lines of credit, there can be no assurance that such financing would be available or available on terms that are acceptable to the Company. The Company continually assesses its operational footprint as well as its overall portfolio of businesses and may consider the divestiture of plants and/or business units it considers to be suboptimal or nonstrategic. Should these efforts result in the future sale of any plants or business units, management expects to utilize the proceeds to pay down debt and/or invest in growth projects or strategic acquisitions.
The Company anticipates making additional contributions to its other pension and postretirement plans of approximately $18.4 million during the remainder of 2026, resulting in expected total contributions to these plans of approximately $23.2 million in 2026. Future funding requirements beyond the current year will vary depending largely on investment performance, future actuarial assumptions, and legislative actions.
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SONOCO PRODUCTS COMPANY
OTHER ITEMS
Fair Value Measurements, Foreign Exchange Exposure and Risk Management
Certain assets and liabilities are reported in the Company’s financial statements at fair value, the fluctuation of which can impact the Company’s financial position and results of operations. Items reported by the Company at fair value on a recurring basis include derivative contracts and pension-related assets. The valuation of a majority of these items is based either on quoted prices in active and accessible markets or on other observable inputs.
As a result of operating globally, the Company is exposed to changes in foreign exchange rates. The exposure is well diversified, as the Company’s facilities are located throughout the world, and the Company generally sells in the same countries where it produces with both revenue and costs transacted in the local currency. The Company monitors these exposures and uses foreign currency forward contracts and other risk management instruments to manage exposure to changes in foreign currency cash flows and the translation of monetary assets and liabilities on the Company’s condensed consolidated financial statements by hedging a portion of forecasted transactions that are denominated in foreign currencies, foreign currency assets and liabilities, or its net investment in foreign subsidiaries. The Company’s foreign operations are exposed to political, geopolitical, and cultural risks, but these risks are mitigated by diversification and the relative stability of the countries in which the Company has significant operations.
The economy in Venezuela has been considered highly inflationary under U.S. GAAP since 2010. Accordingly, the Company considered the U.S. dollar to be the functional currency of its Venezuelan operations and used the official exchange rate when remeasuring the financial results of those operations since January 1, 2010. Economic conditions in Venezuela worsened considerably over the past several years with no indications that conditions were likely to improve in the foreseeable future. As a result, the Company sold its operations in Venezuela during the first quarter of 2025, recognizing a loss in the amount of $5.4 million, including $3.8 million of cumulative translation losses that were reclassified from accumulated other comprehensive (loss)/income.
Turkey has been deemed to be a highly inflationary economy under U.S. GAAP since the first quarter of 2022. Accordingly, the Company considers the U.S. dollar to be the functional currency of its operations in Turkey and has remeasured monetary assets and liabilities denominated in Turkish lira to U.S. dollars with changes recorded through earnings. The cumulative impact of applying highly inflationary accounting to Turkey has been a pretax charge to earnings of $9.5 million ($7.3 million after tax), including $0.3 million ($0.2 million after tax) during the three-month period ended March 29, 2026. The magnitude of future earnings impacts, however, is uncertain as such impacts are dependent upon unpredictable movements in the Turkish lira relative to the U.S. dollar. In addition to remeasurement-related charges, significant deterioration in the Turkish economy could result in the recognition of future impairment charges. However, the Company believes its exposure is limited to its net investment in Turkey, which was approximately $50 million as of March 29, 2026.
The Company is a purchaser of various raw material inputs such as recovered paper, energy, steel, aluminum, and plastic resin. The Company generally does not engage in significant hedging activities for these purchases other than for energy and, from time to time, aluminum, because there is usually a high correlation between the primary input costs and the ultimate selling price of its products. Inputs are generally purchased at market or at fixed prices that are established with individual suppliers as part of the purchase process for quantities expected to be consumed in the ordinary course of business. On occasion, where the correlation between selling price and input price is less direct, the Company may enter into derivative contracts such as futures or swaps to manage the effect of price fluctuations. In addition, the Company may occasionally use traditional, unleveraged interest-rate swaps to manage its mix of fixed and variable rate debt and control its exposure to interest rate movements within select ranges.
At March 29, 2026, the Company had derivative contracts outstanding to hedge the prices on a portion of anticipated aluminum purchases. These contracts, some of which qualify as cash flow hedges, include aluminum swaps totaling 5,861 metric tons. The fair value of the Company’s commodity cash flow hedges netted to a gain positions of $3.3 million and $1.7 million at March 29, 2026 and December 31, 2025, respectively. The amount of the gain included in accumulated other comprehensive (loss)/income at March 29, 2026 expected to be reclassified to the income statement during the next twelve months is $3.2 million.
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SONOCO PRODUCTS COMPANY
The Company routinely enters into derivative currency contracts to mitigate the risk of unfavorable fluctuations in the exchange rate on certain anticipated foreign currency cash flows. The total market value of these instruments resulted in a net loss position of $0.3 million and a net gain position of $49 thousand at March 29, 2026 and December 31, 2025, respectively. In addition, at March 29, 2026, the Company had various currency contracts outstanding to hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. Although placed as economic hedges, the Company does not apply hedge accounting to these instruments. As such, changes in fair value are recorded directly to income and expense in the periods that they occur. The fair value of the Company’s non-designated derivatives position was a loss of $0.8 million and $1.1 million at March 29, 2026 and December 31, 2025, respectively.
In April 2024, the Company entered into cross-currency swap agreements with a total notional amount of $500 million, maturing on May 1, 2027, to effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
In December 2024, the Company entered into additional cross-currency swap agreements with a total notional amount of $1.5 billion, including $500 million maturing on September 1, 2026, $500 million maturing on September 1, 2029, and $500 million maturing on May 1, 2030. The swaps effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
On June 30, 2025, the Company entered into additional cross-currency swap agreements with a total notional amount of $285 million, maturing on February 1, 2027. The swaps effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
All of the Company’s cross-currency swap agreements are designated as net investment hedges for accounting purposes and have the risk management objective of managing foreign currency risk relating to net investments in certain European subsidiaries denominated in euros.
The gain or loss on the net investment hedge derivative instruments is included in the “Foreign currency translation” component of “Accumulated other comprehensive (loss)/income” until the net investment is sold, diluted, or liquidated. Net interest receivables for the cross-currency swaps totaling $10.8 million for the three-month period ended March 29, 2026 are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income. The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S. dollar exchange rate market.
The fair value of the Company’s net investment hedges was a loss position of $157.2 million and $207.2 million at March 29, 2026 and December 31, 2025, respectively. Foreign currency translation loss of $117.1 million (net of income taxes of $40.1 million) and a loss of $154.4 million (net of income taxes of $52.8 million) were reported as components of “Accumulated other comprehensive income/(loss)” within “Foreign currency items” at March 29, 2026 and December 31, 2025, respectively.
The Company has an investment in preferred stock of a nonaffiliated private company that is accounted for under the measurement alternative of cost less impairment, adjusted for any qualifying observable price changes. Observable price changes would consist of Level 2 inputs based on privately negotiated transactions with the nonaffiliated company. The preferred stock balance of $21.2 million is included in “Other Assets” in the Company’s Condensed Consolidated Balance Sheet as of March 29, 2026.
During the first three months of 2026, the U.S. dollar strengthened against most of the functional currencies in which the Company’s foreign investments are held, including the euro, the British pound, the Moroccan dirham, the Polish zloty, and the Danish krone. During this same period, the U.S. dollar weakened against the Brazilian real, the Australian dollar, and the Malaysian ringgit. The impact of these changes, and the changes in the net investment hedge discussed above, resulted in a net translation loss of approximately $61 million being recorded in “Accumulated other comprehensive (loss)/income” during the three-month period ended March 29, 2026.

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SONOCO PRODUCTS COMPANY

Restructuring and Impairment
Information regarding restructuring charges and restructuring-related asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Form 10-Q.
New Accounting Pronouncements
Information regarding new accounting pronouncements is provided in Note 3 to the Company’s Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Form 10-Q.

Item 3.
Quantitative and Qualitative Disclosures About Market Risk.
Information about the Company’s exposure to market risk is discussed under Part I, Item 2 in this Quarterly Report on Form 10-Q and was disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026. There have been no other material quantitative or qualitative changes in market risk exposure since the date of that filing. 
Item 4.
Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Under the supervision, and with the participation, of our management, including our Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), we conducted an evaluation pursuant to Rule 13a-15(b) under the Exchange Act of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on this evaluation, our CEO and CFO concluded that such controls and procedures, as of March 29, 2026, the end of the period covered by this Quarterly Report on Form 10-Q, were effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. For this purpose, disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information that is required to be disclosed in the reports we file or submit under the Exchange Act is accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting occurring during the quarter ended March 29, 2026 that materially affected, or that are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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SONOCO PRODUCTS COMPANY

PART II. OTHER INFORMATION
Item 1.Legal Proceedings.
Information with respect to legal proceedings and other exposures appears in Part I - Item 3 - “Legal Proceedings” and Part II - Item 8 - “Financial Statements and Supplementary Data” (Note 18 - “Commitments and contingencies”) in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in Part I - Item 1 - “Financial Statements” (Note 18 - “Commitments and Contingencies”) of this Quarterly Report on Form 10-Q.
Environmental Matters
The Company has been named as a potentially responsible party (“PRP”) at several environmentally contaminated sites not owned by the Company. All of the sites are also the responsibility of other parties. The Company’s liability, if any, is shared with such other parties, but the Company’s share has not been finally determined in most cases. In some cases, the Company has cost-sharing arrangements with other PRPs with respect to a particular site. Such agreements relate to the sharing of legal defense costs or cleanup costs, or both. The Company has assumed, for purposes of estimating amounts to be accrued, that the other parties to such cost-sharing agreements will perform as agreed. It appears that final resolution of some of the sites is years away, and actual costs to be incurred for these environmental matters in future periods is likely to vary from current estimates because of the inherent uncertainties in evaluating environmental exposures. Accordingly, the ultimate cost to the Company with respect to such sites, beyond what has been accrued at March 29, 2026, cannot be determined. As of March 29, 2026 and December 31, 2025, the Company had accrued $1.7 million and $1.8 million, respectively, related to environmental contingencies.
The Company periodically reevaluates the assumptions used in determining the appropriate reserves for environmental matters as additional information becomes available and, when warranted, makes appropriate adjustments.
Other Legal Matters
Information regarding other legal proceedings is provided in Note 18 to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. 
Item 5.Other Information.
Insider Trading Arrangements
During the three months ended March 29, 2026, none of the Company’s officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any non-Rule 10b5-1 trading arrangement.

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SONOCO PRODUCTS COMPANY
Item 6.Exhibits.
Exhibit Index
3.1
Restated Articles of Incorporation, as amended April 21, 2022 (incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed April 22, 2022)
3.2
By-Laws of Sonoco Products Company, as amended October 17, 2023 (incorporated by reference to Exhibit 3.2 to the Registrant’s Form 8-K, filed October 19, 2023)
31
Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and 17 C.F.R. 240.13a-14(a)
32
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 17 C.F.R. 240.13a-14(b)
10.1*
Term Credit Agreement, dated as of March 23, 2026, by and among the Company, the lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K filed March 23, 2026)
101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Certain schedules and attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to provide, on a supplemental basis, a copy of any omitted schedules and attachments to the Securities and Exchange Commission or its staff upon request.
58
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.
 
SONOCO PRODUCTS COMPANY
(Registrant)
Date:April 28, 2026By:/s/ Paul Joachimczyk
Paul Joachimczyk
Chief Financial Officer
(principal financial officer)
/s/ Aditya Gandhi
Aditya Gandhi
Chief Accounting Officer
(principal accounting officer)

Source: View Original Filing on SEC EDGAR

FAQ

How did Sonoco Products (SON) perform financially in Q1 2026?

Sonoco reported Q1 2026 net sales of $1,676.4 million, slightly below $1,709.2 million a year earlier. Net income attributable to Sonoco from continuing operations rose to $67.6 million, with diluted EPS increasing to $0.68 from $0.50, supported by a lower effective tax rate.

What were Sonoco Products (SON) segment results for Q1 2026?

In Q1 2026, Sonoco’s Consumer Packaging segment generated external sales of $1,097.1 million and the Industrial Paper Packaging segment produced $579.4 million. Combined segment operating profit was $194.9 million, compared with $217.1 million in the prior-year quarter, reflecting higher restructuring and related costs.

How did Sonoco Products’ Q1 2026 cash flow compare to last year?

Net cash used by operating activities in Q1 2026 was $(367.9) million, versus $(208.1) million in Q1 2025. The decline mainly reflected higher outflows for working capital, including larger uses of cash for receivables, inventories and supplier payables, plus higher income tax payments.

What is Sonoco Products’ debt position as of March 29, 2026?

As of March 29, 2026, Sonoco reported total debt of $4,689.5 million, up from $4,326.9 million at year-end 2025. This included $344.0 million of commercial paper. Long-term debt, net of current portion, was $3,486.9 million, leaving significant leverage on the balance sheet.

What dividends did Sonoco Products declare around Q1 2026?

Sonoco’s board declared a regular quarterly dividend of $0.53 per share on February 11, 2026, paid March 10, 2026. On April 15, 2026, the board declared another regular quarterly dividend of $0.54 per share, payable June 10, 2026 to shareholders of record on May 8, 2026.

How did discontinued operations affect Sonoco’s prior-year results?

In Q1 2025, Sonoco’s discontinued operations, mainly the Thermoformed and Flexibles Packaging and Trident businesses, generated $320.7 million in net sales and $5.2 million in net income. These operations were sold in 2025, and current-period results focus on continuing operations only.

What restructuring and impairment charges did Sonoco record in Q1 2026?

Sonoco recorded $15.1 million of restructuring and related asset impairment charges in Q1 2026, compared with $13.6 million a year earlier. Costs included $7.4 million of severance, $3.1 million of asset impairment and $4.7 million of other costs tied to prior plant closures and footprint optimization.