Sonoco Q3 loss hits 7.36 per share on goodwill charge

Sonoco Products Company (NYSE: SON) reported a GAAP net loss of 7.36 per diluted share for the third quarter ended September 27, 2026, a figure driven by a non-cash goodwill impairment charge. The loss contrasts with a GAAP net income of $1.23 per share recorded in the same period last year.

The impairment was attributed to the Consumer EMEA/APAC and Industrial APAC businesses. While the company recorded an adjusted net income of $1.67 per adjusted diluted share, this represented a decline from the $1.92 generated in the prior-year quarter. Sonoco stated that solid productivity savings and procurement gains were more than offset by significant price and cost headwinds alongside lower volume and mix.

Net sales for the third quarter totaled $2.0 billion. The company noted that excluding divestitures, net sales were essentially flat. The primary driver for the reported decline was the November 3, 2025 divestiture of the ThermoSafe business. Selling prices increased to offset inflation and tariffs, but these gains were partially counteracted by lower volume and mix.

Operational cash flow reached $285 million in the quarter. For the nine months ended September 27, 2026, Sonoco provided $218 million in operating cash flow, a figure that was net of approximately $103 million in one-time taxes paid on gains from the sales of the divested TFP and ThermoSafe businesses in 2025.

In the Consumer Packaging segment, adverse weather conditions impacted seasonal vegetable harvests in the EMEA and Americas regions, which reduced metal can volumes. This volume headwind more than offset pricing actions intended to recover costs related to inflation and tariffs.

The Industrial Paper Packaging segment saw net sales rise. President and Chief Executive Officer Howard Coker noted that North America URB trade ton sales increased 10% year over year, with mill utilization remaining at 94%. Additional URB pricing realized in September was positioned to further offset inflationary pressures.

Chief Financial Officer Paul Joachimczyk reported that the company reduced total debt by $162 million and net debt by $176 million during the quarter. Sonoco also successfully refinanced an $800 million term loan, a move that extends its maturity profile while maintaining investment grade credit ratings.