Sonoco Products Co (SON) (Q3 2026) Earnings Call Highlights: Cost Headwinds

Sonoco reported Q3 2026 net sales of $2.04B, down 4.2% YoY, with a net loss of $732M. Consumer packaging sales fell 2.9% to $1.4B, while industrial packaging rose 5.2% to $646M. CEO Howard Coker cited cost inflation and volume challenges, including higher freight and raw material costs. The company expects flat consumer volumes and slight industrial growth in Q4.

Truist Securities reduced its price target for Sonoco Products (SON) to $59 from $62, citing weaker-than-expected Q3 earnings of $1.67 per share, missing estimates. The company attributed the shortfall to inflation and lower volumes, and lowered its 2026 EPS and EBITDA guidance. Sonoco maintains a 4.3% dividend yield and has raised its dividend for 44 consecutive years, according to InvestingPro data.

Sonoco Products reported Q3 earnings, noting Industrial price increases totaling $110 per ton in 2026. Consumer segment sales declined 3% YoY due to weather impacts. Consumer EBITDA fell 9%, but some areas showed growth. The company expects flat consumer volumes and slight Industrial growth in Q4. Sonoco is targeting $150M-$200M in savings through 2028. Updated 2026 outlook: net sales $7.2B-$7.4B, adjusted EBITDA $1.2B-$1.25B, adjusted EPS $5.30-$5.50, and operating cash flow $600M-$650M.

Sonoco (SON) reported Q3 2026 net sales of $2B, down 4% YoY. Industrial sales rose 5%, while Consumer sales fell 3% due to weather impacts. Adjusted EBITDA was $352M (down 9% YoY), and adjusted EPS was $1.67 (down 13% YoY). Higher input costs and softer demand affected results, but productivity and cost actions mitigated some pressures. The company reduced debt and refinanced a term loan, maintaining strong cash flow.

Sonoco (NYSE:SON) reported Q3 2026 earnings of $1.67 per share on $2.04B revenue, missing estimates due to inflation and volume headwinds. Shares fell 9.87% premarket. Industrial segment grew 5%, while Consumer segment declined 3%. The company cut full-year guidance and took an $829M goodwill impairment charge. Management cited droughts, rising costs, and currency impacts. Despite challenges, Sonoco generated $285M in cash flow and reduced debt.

Sonoco Products' stock dropped nearly 10% in pre-market trading after its Q3 2026 earnings missed estimates, with adjusted EPS at $1.67 vs. $1.80 expected, and revenue at $2.04B vs. $2.08B. The company also recorded an $829M goodwill impairment charge and cut its full-year 2026 outlook. Management cited softer consumer demand, inflation, and drought impacts. Bank of America downgraded the stock to Neutral.