Sonoco Products Company · NYSE:SON
Sonoco Products — Q1 2026 Earnings Presentation
23 slides from Sonoco Products's earnings presentation, Apr 22, 2026
Slide 1: Our Future is in Focus: Quarterly Financial Review
SONOCO Our Future is in FOCUS QUARTERLY FINANCIAL REVIEW 157 Quarter - 2026 April 22, 2026
Slide 2: Forward-Looking Statements
3 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 21 of the Securities Exchange Act of 1934, as ame
Slide 3: Presenters
Roger Schrum Howard Coker Paul Joachimezyk Head of Investor Relations President and CEO Chief Financial Officer
Slide 4: Our Future is in Focus: 2026-2028 Targets
7} SONOCO Our Future is in FOCUS Our __ 2026-2028 = Targets Sustainable Achieve Margin Growth Expansion ~200 BPS Improvement $150 - $200M in Savings Efficient Capital Allocation Cumulative 3Yr. OCF: ~$2.5B cor LT Net Leverage: <2.5x
Slide 5: 1st Quarter 2026 Results Summary
q =. Revenue © $1.68B 1St Quarter 2026 RESULTS S U M M A RY Adj. Operating Profit $201M Margin 12.0% O $277M Margin 16.5% What Went Well * Consumer Packaging exceeded our expectations on strong productivity and price/cost management * Industrial Paper Packaging faced headwinds, produced strong produ
Slide 6: Challenging Inflationary Environment
é. &, CHALLENGING INFLATIONARY ENVIRONMENT Total energy, freight and petrochemical inflation expected to raise costs by $8 to $10 million in 2Q ¢ Leveraging our global sourcing and supply assurance team Implementing necessary price increases and surcharges in April o $70/ton on URB, 8% on converted
Slide 7: Resilient Portfolio
@ 2, i $2.48 RESILIENT ° ° 67% Two 33% PORTFOLIO CORE SEGMENTS +Alth percentages and figures are based on 2025 Sales excluding Divestitures. $3.48 $1.58 More Consumer Focused Reduced Resin Exposure ¢ Focused on affordable, staple foods * Down 70% ¢ Strong Name Brands since 2023 and Private Labels
Slide 8: New Paper Can Plant
© IN Y ; i New Paper Can Plant
Slide 9: Expanding Reels Capacity to Meet AI Infrastructure Growth
@ EXPANDING REELS CAPACITY on“ TO MEET Al INFRASTRUCTURE GROWTH New manufacturing assets will provide 15% incremental nailed-wood capacity
Slide 10: A Dividend is Foundational
A DIVIDEND IS FOUNDATIONAL Drives Discipline and Shareholder Value Dividend in $s 43 Years of Consecutive | 01 Consecutive Annual Increases Years Paid Annual dividends grew from $0.12 to $2.16 from 1983 to 2026 1925 to 2026
Slide 11: 2026 Results Summary
11 2026 RESULTS SUMMARY 1st Quarter Adj. Operating Segment Adj. Revenue Profit EBITDA ee eccccccccccrs ee ccccccccccce eeccccccccccce $201M $277M ® 6%) © (4%) Margin 12%, down ~45bps Margin 16.5%, down ~35bps: What Went Well Challenges Consumer productivity favorable * Industrial volume/mix down Ind
Slide 12: Adj. EPS Bridge 1Q 2026
wo $1.38 1Q 2025 Disc. Ops 1Q 2025 Other Actual* Adjustment Continuing Ops Divestiture * EPS of $1.38 reflects Continued and Discontinued Operations Operational Changes $0.09 Non- Operational Changes ADJ. EPS BRIDGE 1Q 2026 $0.06 $1.20 | Profitability 1Q 2026 Actual Performance
Slide 13: Cash Flow Generation
© sonocd Operating Cash Flow ($M) CASH FLOW «os s16s GENERATION Cash Flow Overview -$208 1Q Results 1Q net cash from Operating activities presented use of cash Free Cash Flow ($M) of $368M Capital spending (gross) $62M $86 $80 Use of cash mainly driven by higher taxes paid year over year of ~ $140M
Slide 14: Segment Results
9 "l= SEGMENT RESULTS ee 1Q - 2026 Consumer Segment Industrial Segment SALES ($M)' ADJ. EBITDA ($M)? SALES ($M) ADJ. EBITDA ($M) 1,097 $190 $1,066 $1, $177 $588 $579 $107 $18 $172 18% 16% 18% 17% 1Q 2025 1Q 2026 1Q 2025 1Q 2026 1Q 2025 1Q 2026 1Q 2025 1Q 2026 ° Favorable operational productivity ° V
Slide 15: Profitability Performance
PROFITABILITY PERFORMANCE Structural 3Y Target Transformation $150-200M $6M 150 5 Commercial Excellence & a | Operational Improv —$2M— =| ~$32M 1 $8M ,_ et a 1Q 2026 Target
Slide 16: Revised 2026 Forecast Guidance
Revised 2026 Forecast Guidance Net Revenue Unchanged $7.25 - $7.75B ) snd $1.25B - $1.35B Adjusted EBITDA Unchanged . - $1. FINANCIAL _— Adjusted EPS | \Qnsrdorrange $5.80 - $6.20 ) OCF Includes ~$103M in Operating taxes paid on gains related c feasle of divested ° Cash Flow Unchanged $700M 7 $800M
Slide 17: Appendix
Our Future is in APPENDIX Quarter Ending: March 29, 2026 (0) SONOCO
Slide 18: 1Q Financial Results
3 SONOCO 1Q FINANCIAL RESULTS 2026 4 co Q1 2025 | YoY % Chg $1,709 (2%) Segment Adj. EBITDA $288 16.8% | (es Et Adj. EPS _ $1.20 $1.20 ($208) (77%) Net Sales (4%) le ., excluding Discontinued Operations
Slide 19: EPS Summary
EPS SUMMARY GAAP EPS $ 0.68 $ 0.55 Addback for: Acquisition and Divestiture Related Costs, Net 0.05 0.30 LIFO Reserve Change 0.03 - Acquisition intangibles amortization expense 0.35 0.32 Restructuring, net 0.12 0.11 Loss/(Gain) on Disposition and Other 0.01 0.04 Other expenses, net 0.07 - Non-operat
Slide 20: P&L Summary
P&L SUMMARY Net Sales $ 1,676| $ 4,709 $ (33) (1.9)%| Gross Profit 350 372 (22) (6.0)%| SG&A Expenses, Net of Other Income 149 159 (10) (6.5)%| Operating Profit 201 213 (12) (5.6)%| Other non-Operating expense 6) (7) 1 (12.3)%| Net Interest 36 48 (12) (26.4)%| Income before Income Taxes 159 158 1 1.
Slide 21: Sales & Adj. EBITDA Bridge
SALES & ADJ. EBITDA BRIDGE Dollars in millions 1Q 2025 Sales 1,066 1,709 Volume / Mix (65) (36) S 2 (101) Price 28 11 = > 39 Acq. / Divestitures - - (i) > (55) FX/ Other 68 17 - : 85 1Q 2026 Sales $ 1,097 $ 579 $ - $ - $ 1,676 1Q 2025 Adj. EBITDA $ 190 $ 107 $ 8 $ (18) $ 288 Volume / Mix (26) (17) -
Slide 22: Segment Analysis
SEGMENT ANALYSIS NET SALES ” SEGMENT OPERATING PROFIT Dollars in millions 2026 2025 % CHG 2026 2025 % CHG Consumer Packaging 1,097 1,066 2.9% 126 141 (10.7)% Industrial Paper Packaging 579 588 (1.4)%| i) 76 (9.3)% All Other - 55 - 7 Segment Total (excl. Corp) 1,676 1,709 (1.9)%| 195 224 (12.9)% SEGM
Slide 23: Condensed Balance Sheet
CONDENSED BALANCE SHEET * Note: Due to rounding, individual items may not sum appropriately pn 2, ERS eae en Cash and cash equivalents 224 378 Trade accounts receivable, net of allowances 893 843 Other receivables 224 179 Inventories, net 1,217 1,121 Prepaid expenses 184 425 Assets Held for Sale : -
Sonoco Products Company — Q1 2026 Earnings Presentation on 6ix