On October 21, 2026, Sonoco Products Company filed an 8-K reporting its financial results for the third quarter ended September 27, 2026. The company reported a GAAP net loss of $732 million, or $(7.36) per diluted share, compared to a GAAP net income of $123 million, or $1.23 per diluted share, in the same period in 2025. The significant swing in profitability was driven primarily by a non-cash goodwill impairment charge of $829 million, attributed to the Consumer EMEA/APAC and Industrial APAC businesses.
Net sales for the third quarter were $2.042 billion, a decrease of 4.2% compared to the prior year quarter. The decline was largely attributed to the November 3, 2025 divestiture of the ThermoSafe business. Despite lower sales, the company generated $285 million in operating cash flow for the quarter. Year-to-date operating cash flow was $218 million, which included $103 million in one-time taxes paid in 2026 related to gains from the sales of the TFP and ThermoSafe businesses in 2025.
Segment performance was mixed. The Industrial Paper Packaging segment saw net sales increase 5.2% to $646 million, supported by pricing actions and a 10% year-over-year increase in North America URB trade ton sales. Conversely, the Consumer Packaging segment experienced a 2.9% decline in net sales to $1.396 billion, driven by adverse weather conditions that impacted seasonal vegetable harvests in EMEA and the Americas.
On the balance sheet, Sonoco maintained liquidity of $1.3 billion as of September 27, 2026. The company reduced total debt and net debt by $162 million and $176 million, respectively, during the quarter. Additionally, the company amended its credit agreement on September 25, 2026, adding $800 million in new term loan facilities and drawing $500 million to refinance an existing loan.
Regarding guidance, Sonoco revised its full-year 2026 outlook. The company now targets net sales between $7.20 billion and $7.40 billion, adjusted diluted EPS between $5.30 and $5.50, and adjusted EBITDA between $1.20 billion and $1.25 billion. The company also adjusted its operating cash flow guidance to $600 million to $650 million.
