The Motley Fool·Oct 29, 2026
Sonoco: 3 Key Takeaways for Long-Term InvestorsSonoco reduced net debt by $176 million during the third quarter. The Profitability Performance Plan generated $16 million in third-quarter savings.
Sonoco's acquisition-led growth appears to be reversing, with revenue contracting -4.2% YoY in 2026Q3 after the Ball Metal Packaging inorganic lift annualized, while gross margin compressed 210 basis points from 22.0% in 2024Q2 to 19.9% in 2026Q3 as resin, OCC, and logistics inflation outpaced contractual price…
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Revenue contracted for three straight 2026 quarters (-1.9%, -1.3%, -4.2% YoY) with gross margin slipping to 19.9% in 2026Q3 versus 22.0% in 2024Q2, while quarterly net income swung across a $1.2B range from $493.4M (2025Q2) to -$732.1M (2026Q3), rendering reported EPS of -7.36 unreliable for valuation.
Sonoco is expanding production for all-paper Pringles cans, a sustainability-minded project that represents a significant shift in packaging solutions.
Sonoco's trailing and forward P/E ratios indicate favorable valuation, with forward P/E at 8.61, suggesting potential undervaluation.
The company is actively growing its consumer packaging segment, including iconic projects like the all-paper Pringles cans, driving revenue growth.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 21, 2026 | $1.67-4.0% vs $1.74 | $2.0B-1.5% vs $2.1B |
Q3 2026 Jul 22, 2026 | $1.51+2.0% vs $1.48 | $1.9B+0.3% vs $1.9B |
Q2 2026 Apr 21, 2026 | $1.20+0.0% vs $1.20 | $1.7B-1.9% vs $1.7B |
Q1 2026 Feb 16, 2026 | $1.05+4.0% vs $1.01 | $1.8B+0.7% vs $1.8B |
Sonoco reduced net debt by $176 million during the third quarter. The Profitability Performance Plan generated $16 million in third-quarter savings.
Sonoco Products NYSE: SON reported third-quarter 2026 results that reflected higher input and freight costs, weather-related weakness in food-can demand and continued productivity gains. The company also reduced debt, refinanced an $800 million term loan and updated its full-year outlook.
Sonoco Products Company ( SON ) Q3 2026 Earnings Call October 22, 2026 8:00 AM EDT Company Participants Roger Schrum - Head of Investor Relations & Global Marketing Communications Robert Coker - President, CEO & Director Paul Joachimczyk - CFO & Principal Accounting Officer Conference Call Participants George Staphos - BofA Securities, Research Division Michael Roxland - Truist Securities, Inc., Research Division Anthony Pettinari - Citigroup Inc., Research Division Mark Weintraub - Seaport Research Partners John Dunigan - Jefferies LLC, Research Division Hillary Cacanando - Deutsche Bank AG, Research Division Ghansham Panjabi - Robert W. Baird & Co. Incorporated, Research Division Matthew Roberts - Raymond James & Associates, Inc., Research Division Anojja Shah - UBS Investment Bank, Research Division Presentation Operator Thank you for joining us, and welcome to the Sonoco Third Quarter 2026 Earnings Conference Call.
Sonoco Products is rated a 'buy' after a post-earnings dip, with shares now offering a 9% free cash flow yield and 4.3% dividend. SON's Q3 results missed expectations due to significant input cost inflation, margin compression, and disappointing working capital performance, prompting guidance cuts across EBITDA, EPS, and cash flow. European expansion has proven challenging for SON, with excess supply and higher costs delaying margin recovery, but ongoing footprint optimization and price increases should gradually stabilize performance.
Benchmark SON against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Sonoco Products Company (SON)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $50.43 | $4.99B | 12.67 | 41.72% | 5.27% | 13.4% | 4.14% | |
| $42.15 | $6.21B | 12.29 | -0.61% | 9.43% | 48.39% | 1.92% | |
| $41.09 | $4.34B | 15.22 | 10.73% | 3.9% | 11.09% | 1.96% | |
| $11.19 | $3.31B | 7.56 | -2.16% | 0.86% | 2.27% | 3.85% | |
| $249.70 | $22.25B | 29.10 | 7.23% | 7.25% | 14.86% | 2.01% | |
| $142.50 | $9.09B | 24.23 | 5.42% | 6.69% | 9.97% | 1.27% |
Sonoco Products Company (SON) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Sonoco Products Company (SON) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 21, 2026·SEC
Sep 30, 2026·SEC
Jul 22, 2026·SEC
Feb 26, 2026·SEC
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Sonoco Products Company (SON) stock FAQ — growth, dividends, profitability & financials explained
Sonoco Products Company (SON) reported $7.37B in revenue over the trailing twelve months. Revenue was $7.52B in fiscal year 2025. That is 170% more than the $2.79B of fiscal year 1996.
Sonoco Products Company (SON) grew revenue by 41.7% in fiscal year 2025, compared with the prior fiscal year.
No. Sonoco Products Company (SON) reported a net loss of $208.2M over the trailing twelve months.
Yes. Sonoco Products Company (SON) pays a dividend that yields 4.14% at the current price, a high yield.
Sonoco Products Company (SON) had a return on equity (ROE) of 13.4% in fiscal year 2025. That is in line with the market's typical 10-15%.
Sonoco Products Company (SON) generated $400.0M in free cash flow over the trailing twelve months.
