Sonoco Q1 profit rises to US$67.6M despite 1.9% sales dip

GLOBAL – Sonoco has posted first-quarter attributable net income of US$67.6 million, up from US$54.4 million a year earlier, despite net sales declining 1.9 percent to US$1.7 billion, as pricing actions and cost-cutting measures offset weaker volume and the loss of earnings from the divested ThermoSafe temperature-assured packaging business.

Diluted earnings per share increased to US$0.68 from US$0.55 a year earlier. The sales reduction was mainly linked to the sale of the ThermoSafe business in November 2025.

Pricing actions taken in response to inflation and tariffs, together with favourable foreign exchange movements, partly balanced the effect of weaker volume or mix. Operating profit was unchanged at US$127 million.

How Sonoco Managed Profit Growth

Savings from cost-cutting measures and procurement, along with a positive relationship between pricing and costs, were offset by the loss of earnings from the divested ThermoSafe unit and by weaker volume or mix. 

Adjusted operating profit for the quarter was US$201 million while adjusted EBITDA totalled US$277 million. 

The company’s consumer packaging segment exceeded expectations, while the industrial paper packaging segment faced operational and demand challenges.

Howard Coker, Sonoco president and CEO, explained that the company is proud of the team’s solid performance in the first quarter despite disruptions from severe winter weather, a fire that destroyed a recycling facility in South Carolina, and rapidly changing macroeconomic and geopolitical conditions. 

He noted that overall, productivity and a favourable price/cost environment more than offset a decline in volume/mix.

Debt and Capital Position

As of 29 March 2026, total debt stood at US$4.7 billion and net debt was US$4.5 billion, representing increases of US$0.4 billion and US$0.6 billion respectively from 31 December 2025. 

Sonoco said the change was chiefly due to seasonal movements in net working capital within its metal packaging business.

Strategic Expansion Moves

The company opened a paper can manufacturing site in Nong Yai, Thailand, aimed at the stacked chip market in Asia. 

It also committed US$20 million to expand nailed wood reel production at its site in Hartselle, Alabama, in response to wire and cable infrastructure demand tied to AI data centres.

Outlook for 2026

For 2026, Sonoco kept its net sales forecast unchanged at US$7.25 billion to US$7.75 billion. It projected adjusted EPS to come in at the lower end of its earlier guidance range of US$5.80 to US$6.20 per diluted share. 

The company recently announced plans to add €80 (approximately US$92.50) per tonne to uncoated recycled board grades and apply an 8 percent rise to all tube and core products sold in the EMEA region.

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