Sonoco Q2 profit beats estimates driven by Industrial Paper Packaging

Sonoco Products

22/07/2026 21:39

    

    Overview
  
US packaging firm's Q2 sales slightly beat analyst expectations, despite a 1.3% yr/yr decline
Adjusted EPS for Q2 rose 10% yr/yr, beating analyst expectations
Company reaffirmed full-year 2026 guidance for sales, adjusted EBITDA, adjusted EPS, and cash flow

    

    Outlook
  
Sonoco maintains 2026 net sales guidance of $7.25 bln to $7.75 bln
Company expects 2026 adjusted EPS of $5.80 to $6.20, toward low end of range
Sonoco projects improved margins as pricing actions and productivity initiatives take effect

    

    Result Drivers
  
PRODUCTIVITY AND COST CONTROL - Productivity savings from fixed cost reduction initiatives and procurement savings helped drive operating profit growth, offsetting inflation and higher operating costs
SEGMENT PERFORMANCE - Industrial Paper Packaging segment results exceeded expectations, driven by productivity gains and a 6% increase in North America URB trade ton sales volume; Consumer Packaging segment benefited from pricing actions and cost management, but overall volumes remained soft
DIVESTITURE IMPACT - Decline in overall net sales was primarily due to the November 2025 divestiture of the ThermoSafe business

    
Company press release: ID:nGNX32yhtC

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Sales
Slight Beat*
$1.89 bln
$1.88 bln (10 Analysts)
Q2 Adjusted EPS
Beat
$1.51
$1.48 (10 Analysts)
Q2 EPS
 
$1.05
 
Q2 Net Income
 
$105 mln
 
Q2 Operating profit
 
$193 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the paper packaging peer group is "buy"
Wall Street's median 12-month price target for Sonoco Products Co is $63.22, about 15.6% above its July 21 closing price of $54.71
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

    

    Reuters Recommended Reads
  
July 20 - Crown Holdings beats Q2 revenue on beverage can growth, raises FY adjusted diluted EPS guidance
July 22 - Akzo Nobel beats profit estimates as price rises offset higher raw-material costs
July 22 - RPM International Q4 sales, adjusted EPS beat estimates

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)