The earnings miss and guidance reduction signal ongoing margin pressure from inflation and weak consumer demand. Monitor Q4 2026 for further guidance revisions and progress on the Profitability Performance Plan cost savings. The $829M goodwill impairment suggests management's view of impaired long-term growth in EMEA and APAC consumer packaging.
Price Chart
Executive Summary
Sonoco reported Q3 2026 adjusted EPS of $1.67, missing the $1.79 consensus, and revenue of $2.04B, below the $2.08B estimate. The company recorded a non-cash goodwill impairment of $829 million, resulting in a GAAP net loss of $(7.36) per share. Full-year 2026 guidance was lowered: adjusted EPS now targeted at $5.30-$5.50 (from prior low end of $5.80-$6.20) and adjusted EBITDA at $1.20B-$1.25B (from $1.25B-$1.35B), reflecting inflation headwinds and weaker consumer demand.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted EPS of $1.67 missed consensus of $1.79
- Q3 2026 net sales of $2.04B declined 4.2% YoY and missed consensus of $2.08B
- GAAP net loss of $(732) million or $(7.36) per diluted share due to $829 million non-cash goodwill impairment
- Full-year 2026 adjusted EPS guidance lowered to $5.30-$5.50 from prior low end of $5.80-$6.20
- Full-year 2026 adjusted EBITDA guidance lowered to $1.20B-$1.25B from $1.25B-$1.35B
- Full-year 2026 net sales guidance lowered to $7.20B-$7.40B from $7.25B-$7.75B
- Consumer Packaging segment net sales down 2.9% YoY; segment operating profit down 14.6%
- Industrial Paper Packaging segment net sales up 5.2% YoY but operating profit down 6.2%
- Total debt reduced by $162 million in Q3; net debt reduced by $176 million
- Free cash flow improved to $43 million year-to-date vs $29 million in prior year period
Financial Impact
Q3 adjusted EPS miss of $0.12 (6.7% below consensus); full-year guidance lowered by $0.30-$0.70 at the midpoint for adjusted EPS; $829M non-cash goodwill impairment
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Consumer Packaging | $1.4B | -2.9% |
| Industrial Paper Packaging | $645.6M | +5.2% |
Risk Factors
- Inflationary pressure on raw materials, freight, and energy costs exceeding pricing actions
- Consumer Packaging segment volume decline of 3% due to adverse weather and weak demand
- Goodwill impairment of $829 million signals potential further asset write-downs
- Lowered full-year guidance across all key metrics (sales, EPS, EBITDA, cash flow)
- Macroeconomic uncertainty and tariff impacts on demand and costs
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000091767-26-000047 |
| Document: son-20261021.htm | 0000091767-26-000047 |
| Document: 0000091767-26-000047-index-headers.html | 0000091767-26-000047 |
| Document: 0000091767-26-000047-index.html | 0000091767-26-000047 |
| Document: 0000091767-26-000047.txt | 0000091767-26-000047 |
| 8-K Data (Synthetic) | 0000091767-26-000047 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 4d ago | 8-K | $50.27 | awaiting T+20 | — | $49.33 (+1.86%) |
Oct 21, 2026 4d ago | Press Release | $50.27 | awaiting T+20 | — | $49.33 (+1.86%) |
Oct 20, 2026 6d ago | Press Release | $50.83 | awaiting T+20 | — | $49.33 (−2.94%) |
Oct 8, 2026 17d ago | SC 13G | $48.40 | awaiting T+20 | — | $49.33 (+1.93%) |
Jul 22, 2026 13w ago | Press Release | $56.32 $58.33 | ▲ +3.57% | ▲ +0.26% | $49.33 (−12.40%) |
Jul 15, 2026 14w ago | Press Release | $53.73 $58.10 | ▲ +8.13% | ▲ +5.79% | $49.33 (−8.18%) |
Jun 11, 2026 19w ago | Institutional Cluster | $50.53 $55.06 | ▼ −8.96% | ▼ −7.07% | $49.33 (+2.36%) |
May 11, 2026 24w ago | 8-K | $51.07 $49.90 | ▼ −2.29% | ▼ −1.99% | $49.33 (−3.40%) |
Apr 29, 2026 25w ago | Insider Cluster | $49.15 $49.52 | ▲ +0.75% | ▼ −5.29% | $49.33 (+0.38%) |
Apr 29, 2026 25w ago | Insider Cluster | $49.15 $49.52 | ▲ +0.75% | ▼ −5.29% | $49.33 (+0.38%) |
US Market Status
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