Sonoco Products Company Reports Decline in Net Sales and Income for Q2 and First Half of 2026

Sonoco Products Company reported its financial results for the second quarter and first half of 2026, revealing a decline in net sales and net income compared to the previous year. For the three months ended June 28, 2026, the company recorded net sales of $1.885 billion, a decrease of 1.3% from $1.910 billion in the same period of 2025. The decline was attributed to the divestiture of its ThermoSafe business, which reduced sales by approximately $65.7 million, alongside lower volumes due to ongoing macroeconomic pressures. However, this was partially offset by a $37 million increase in selling prices and a favorable foreign currency translation impact of $29.3 million.

In terms of profitability, Sonoco's GAAP operating profit for the second quarter increased by 9.8% to $192.8 million, up from $175.7 million in the prior year. This increase was driven by productivity savings, lower acquisition-related costs, and reduced restructuring expenses. Net income attributable to Sonoco for the quarter was $104.9 million, or $1.05 per diluted share, a significant drop from $493.4 million, or $4.96 per diluted share, in the same quarter of 2025, primarily due to the prior year's income from discontinued operations related to the TFP divestiture.

For the first half of 2026, Sonoco's net sales totaled $3.562 billion, down 1.6% from $3.620 billion in the first half of 2025. The decrease was similarly influenced by the ThermoSafe divestiture and lower volumes, which were partially offset by price increases and favorable currency effects. The company reported a GAAP operating profit of $319.9 million, a 5.8% increase from $302.5 million in the previous year. However, net income attributable to Sonoco decreased to $172.5 million, or $1.73 per diluted share, compared to $547.9 million, or $5.51 per diluted share, in the first half of 2025.

Operationally, Sonoco has made strategic adjustments, including the realignment of its Industrial Plastics business into the Industrial Paper Packaging segment effective January 1, 2026. This restructuring aims to streamline operations and enhance efficiency. The company also opened a new production facility in Thailand to cater to the growing demand for sustainable packaging in Asia and is investing $20 million to expand production capacities in Alabama to support infrastructure demands.

Looking ahead, Sonoco remains focused on improving its operational efficiency and managing costs amid ongoing inflationary pressures. The company anticipates continued challenges from geopolitical tensions and supply chain disruptions but believes its diversified portfolio and strategic pricing initiatives will help mitigate these impacts. Sonoco's management is committed to maintaining a strong balance sheet and returning capital to shareholders while pursuing growth opportunities in its core packaging segments.