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- Date:
7/30/2026
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Sonoco reported stronger second-quarter results, with adjusted net income rising 10.6% year over year to $151 million, supported by productivity improvements, disciplined cost management and solid performance from its Industrial Paper Packaging business. Net sales totaled $1.9 billion, while the company reaffirmed its full-year 2026 guidance.
Adjusted diluted earnings per share increased to $1.51, up from $1.37 a year earlier. Reported GAAP net income declined to $105 million, primarily because the prior-year quarter included a $425 million gain from the sale of the company's Thermoformed and Flexibles Packaging and global Trident businesses.
Howard Coker, Sonoco's President and CEO, said productivity initiatives and cost-control measures helped offset higher logistics, chemicals, resin and other raw material costs. He noted that the Industrial Paper Packaging segment exceeded expectations, driven by productivity gains and stronger North American demand for uncoated recycled paperboard (URB).
Record operating cash flow
The company generated a record $301 million in operating cash flow during the quarter, while free cash flow reached $237 million, reflecting disciplined working capital management and the earnings strength of its business portfolio. Sonoco said year-to-date cash flow was affected by one-time tax payments related to divestitures completed in 2025 but remains confident in its cash-generation capabilities.
Guidance unchanged
Looking ahead, Sonoco maintained its full-year 2026 guidance for sales, adjusted EBITDA, adjusted earnings per share and operating cash flow. The company expects pricing actions, productivity initiatives and disciplined cost management to support improved margins through the remainder of the year despite continued macroeconomic uncertainty.
Sonoco is a global packaging company with approximately 22,000 employees operating 265 facilities in 37 countries. The company generated $7.5 billion in sales from continuing operations in 2025.