Sonoco Q2 Profit Beats Estimates on Industrial Paper Strength, Reaffirms 2026 Outlook
SON sits 43% above its 52-week low of $38.65.
Summary
Sonoco delivered a Q2 beat with adjusted EPS of $1.51 vs. the $1.48 consensus, driven by its Industrial Paper Packaging segment where North America URB trade ton volume rose 6%. Sales of $1.89B edged past estimates despite a 1.3% year-over-year decline tied to the ThermoSafe divestiture. Productivity gains from fixed cost cuts and procurement savings offset inflation, while Consumer Packaging volumes remained soft. Management reaffirmed full-year 2026 guidance for sales, adjusted EBITDA, adjusted EPS, and cash flow, though it expects adjusted EPS of $5.80-$6.20 toward the low end of the range. This follows a Q1 marked by declining sales and adjusted EPS, making the Q2 beat a positive inflection. The reaffirmed outlook and margin improvement narrative provide a clearer path to the $63.22 median price target.
At the time of this announcement, SON was trading at $55.10 on NYSE in the Manufacturing sector, with a market capitalization of approximately $5.5B. The 52-week trading range was $38.65 to $58.44. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.