Sonoco Products Company · NYSE:SON
Sonoco Products — Q2 2026 Earnings Presentation
26 slides from Sonoco Products's earnings presentation, Jul 23, 2026
Slide 1: Quarterly Financial Review 2nd Quarter 2026
QUARTERLY FINANCIAL REVIEW 2nd Quarter - 2026 July 23, 2026
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Non-GAAP Financial Measures Statements included herein that are not historical in nature, are intended to be, and are hereby identified as “forward- looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amend
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS Roger Schrum Howard Coker Paul Joachimczyk Head of Investor Relations President and CEO Chief Financial Officer 3
Slide 4: 2026 Results Summary
Revenue $1.9B What Went Well 2nd Quarter Up 2% (Excluding divestitures) INDUSTRIAL 2026 R ESULTS • Strong NA URB trade tons – up 6.4% • NA mill utilization ~95%; Europe ~92% SUM MARY Adj. Operating Profit • Reels volumes up 10% $242M • Productivity added ~$16 million to operating profit Margin 12.9%
Slide 5: Q2 Inflationary Impacts to Be Recovered in Second Half
Q2 INFLATIONARY IM PACTS TO BE RECOVER ED IN SECOND HALF As Expected, Inflationary Costs Were a 10 Million Headwind • Freight was the largest increased expense • Raw materials expenses rose o OCC up $40/ton YTD to $100/ton o Resins, lumber, petroleum-based chemicals Cost Recovery Mechanisms in Place
Slide 6: CFO Review
CFO REVIEW Paul Joachimczyk
Slide 7: 2026 Results Summary 2nd Quarter
2026 R ESULTS SU MMARY 2nd Quarter Segment Adj. Operating Cash Revenue EBITDA Adj. EPS Flow $1.9B $324M $1.51 $301M -1%* -1%* 10%* 56% Margin 17.2% *Prior-year second quarter results from the divested ThermoSafe business were $66 million of revenue, $11 million of EBITDA and 8 cents of EPS. Excludin
Slide 8: Adj. EPS Bridge 2Q 2026
ADJ. EPS BRIDGE 2Q 2026 Total Sonoco $0.07 $1.51 $0.23 $1.37 $1.29 ($0.08) ($0.08) 2Q 2025 Divestiture Comp 2Q 2025 Operational Non-Operational Profitability 2Q 2026 Changes Changes* Performance *Non-Operational includes favorable interest +$0.14, FX +$0.03, Tax rate +$0.03 and all other +$0.03 8
Slide 9: Cash Flow Generation
Operating Cash Flow ($M) $301 $251 $193 56% $166 CASH FLOW $98 $109 GENERATIO N Cash Flow Overview $(208) $(368) Q2 Results Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 2023 2024 2025 2026 • Q2 generated operating cash of $301M, up 56% from Free Cash Flow ($M) $237 Prior Year and FCF up 139% $173 139% $86 $80 $99 • YTD
Slide 10: Segment Results
SEGMENT RESULTS 2Q 2026 Consumer Segment Industrial Segment SALES ($M) ADJ. EBITDA ($M)1 SALES ($M) ADJ. EBITDA ($M) +1% -3% +4% +3% $1,227 $1,242 $213 $207 $617 $643 $119 $122 $14 $199 17% 17% 19% 19% 2Q 2025 2Q 2026 2Q 2025 2Q 2026 2Q 2025 2Q 2026 2Q 2025 2Q 2026 • Strong paper can volumes in EMEA
Slide 11: YTD Profitability Performance
YTD P RO FITABILITY PERFO RMANCE Structural 1H Results Transformation 3Y Target $8M $150-200M $41M Commercial Excellence & Operational Improvement $38M $2M Profitability $8M $10M Performance $10M 1Q 2Q FY 2026 Target Annualized Program Savings Profitability trending in line with YTD Target $6M VPQ A
Slide 12: Financial Outlook
Status Versus 2026 1Q Guidance Guidance Net Revenue Unchanged $7.25 - $7.75B 2026 Adjusted EBITDA Unchanged $1.25B - $1.35B FINANCIAL OUTLOOK Adjusted EPS Unchanged $5.80 - $6.20* *Projecting the low end of range Operating Cash Flow Unchanged $700M - $800M 12
Slide 13: CEO Outlook
CEO OUTLOOK Howard Coker
Slide 14: Strong Industrial Market Growth: Saturating URB
STRONG INDUSTRIAL MARK ET GROW TH Opportunity Update – Saturating URB The Opportunity Use of Sonoco’s premium saturating URB represents a new 20,000 to 30,000/tons per year opportunity for high pressure laminations Lamina ressure tion Projected 2026 end of year gh P (H run-rate = 10,000/tons Hi PL )
Slide 15: Strong Industrial Market Growth: Reels
STRONG INDUSTRIAL MARK ET GROW TH Opportunity Update – Reels The Opportunity As the leading North America supplier of nailed wood, metal and polyfiber reels, Sonoco is addressing the fast- growing wire and cable infrastructure demand to support artificial intelligence data centers 2Q sales grew 13%,
Slide 16: Consumer Packaging Market Growth
CONSUMER PACKAGING MARKET GROWTH New Growth and Products New Thailand New product Paper Can introductions: Orbit, Plant microwaveable Ramping Up bowls, Ecopeel Second Line New Metal New Paper Can Can Lines Capacity in and Greencan for Fish and New Petfood Line South America Vegetables Opened in and
Slide 17: Second Half Indicators Are Strengthening
SE CO ND H ALF IND IC ATOR S AR E ST R E NGTH E NIN G Inflation recovery World Cup and new Pack season starting URB volumes and mechanisms in place promotions are lifting well for food cans in utilization are strong to restore margins volumes Americas/EMEA entering 3Q 17
Slide 18: Our 2026-2028 Targets
Our 2026-2028 Targets Sustainable Achieve Margin Efficient Capital Growth Expansion Allocation Target Target Target ~200 BPS Improvement Cumulative 3Yr. OCF: ~$2.5B GDP $150 - $200M in Savings LT Net Leverage: <2.5x 18
Slide 19: Appendix
APPENDIX Quarter Ending: June 28, 2026
Slide 20: 2Q Financial Results
2Q FINANCIAL RE SU LTS 2026 (Dollars in Millions, Except EPS) 2Q 2026 2Q 2025 YoY % Chg Net Sales $1,885 $1,910 (1%) Adj. OP $242 $247 (2%) Adj. EBITDA $324 $328 (1%) Adj. EBITDA Margin 17.2% 17.2% 2bps Adj. EPS $1.51 $1.37 Operating Cash Flow $301 $193 56% All values, except Operating Cash Flow, on
Slide 21: EPS Summary
EPS SUMMARY Second Quarter: 2026 vs. 2025 Second Quarter Year To Date 2026 2025 2026 2025 GAAP EPS $ 1.05 $ 4.96 $ 1.73 $ 5.51 Addback for: Acquisition and Divestiture Related Costs, Net 0.02 0.09 0.07 0.40 LIFO Reserve Change 0.01 0.01 0.04 0.01 Acquisition intangibles amortization expense 0.36 0.3
Slide 22: P&L Summary
P&L SUMMARY Second Quarter: 2026 vs. 2025 QTD Better / (Worse) Dollars in millions 2026 2025 $ % Net Sales 1,885 1,910 (25) (1.3)% Gross Profit 393 407 (14) (3.5)% SG&A Expenses, Net of Other Income 151 160 10 6.0 % Operating Profit 242 247 (5) (1.8)% Other non-Operating expense (6) (7) - (5.6)% Net
Slide 23: Sales & Adj. EBITDA Bridge
SALES & ADJ. EBITDA BRIDGE Second Quarter: 2026 vs. 2025 Dollars in millions SALES Consumer Industrial All Other Corporate Total 2Q 2025 Sales $ 1,227 $ 617 $ 66 $ - $ 1,910 Volume / Mix (22) (1) - - (23) Price 19 18 - - 37 Acq. / Divestitures - - (66) - (66) FX / Other 18 9 - - 27 2Q 2026 Sales $ 1
Slide 24: Segment Analysis
SEGMENT ANALYSIS Second Quarter: 2026 vs. 2025 Dollars in millions NET SALES (1) SEGMENT OPERATING PROFIT (1) 2026 2025 % CHG 2026 2025 % CHG Consumer Packaging 1,242 1,227 1.2% 152 160 (5.4)% Industrial Paper Packaging 643 617 4.2% 89 86 4.0% All Other - 66 - 8 Segment Total (excl. Corp) 1,885 1,91
Slide 25: Condensed Balance Sheet
CONDENSED BALANCE SHEET Second Quarter: 2026 vs. 2025 * Note: Due to rounding, individual items may not sum appropriately Dollars in millions June 28, 2026 December 31, 2025 Change $ Cash and cash equivalents 169 378 (210) Trade accounts receivable, net of allowances 1,011 843 169 Other receivables
Slide 26: Roger Schrum
R O G E R SC HR UM Head of Investor Relations and Communications Email: roger.schrum@sonoco.com Office Phone: 843-339-6018 Cell Phone: 843-615-8650 26
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