SON
Sonoco Products Co (SON) Q2 2026 Earnings Call Highlights: Strong Cash Flow and Resilient ...
Article Summary
HOLD- Sonoco Products Co. (NYSE: SON) delivered solid Q2 2026 results, with net sales down 1% year over year and adjusted EBITDA down 1%, but strong free cash flow of $237 million, up 139% year-over-year, and operating cash flow up 56% to $301 million, driven by strong industrial and consumer demand and productivity gains.
- The Industrial segment delivered 4% operating profit growth, with URB mill utilization rates at 95% and paper can volumes up 9% in EMEA and APAC, supported by strong demand in North American URB mills.
- The Consumer segment posted a 5% decline in operating profit due to softer demand for metal aerosol cans and adhesives and sealant tubes, while the Industrial segment faced price cost headwinds due to rising costs for freight, chemicals, OCC, and lumber.
- Global inflationary pressures, particularly higher energy expenses, cost Sonoco Products Co. roughly $10 million in operating profits due to higher energy costs.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 12.0% | 25% | 50.0 ptsMeets Minimum (12.0%) - Passes screener |
| EPS Growth Next 5Y ? | 7.1% | 25% | 20.0 ptsWeak (7.1%) - Low expectations |
| Target Price Upside ? | 8.2% | 20% | 35.0 ptsBelow Screener (8.2%) - Target: $63.00 vs Current: $58.23 |
| Gross Margin % ? | 20.8% | 15% | 40.0 ptsModerate (20.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -0.4% | 15% | 20.0 ptsBarely a Dip (-0.4%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About SON
- Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in the United States, Europe, Canada, the Asia Pacific, and internationally.
- The company operates in two segments, Consumer Packaging and Industrial Paper Packaging.
- The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers, as well as metal and peelable membrane ends, closures, and components.
- Its Industrial Paper Packaging segment provides paperboard tubes, cones, and cores; paper-based protective packaging; and uncoated recycled paperboards.
- The company also offers packaging materials, such as plastic, paper, foam, and various other specialty materials.
- It sells its products in various markets, including the paper, textile, film, food, packaging, construction, and wire and cable markets.
- The company was founded in 1899 and is headquartered in Hartsville, South Carolina.