Sonoco Products Company (SON), through its numerous subsidiaries, operates as a worldwide producer and vendor of both industrial and consumer packaging solutions. ...
Sonoco Products Company, founded in 1899 as Southern Novelty Company and renamed Sonoco in 1923, has evolved into a global packaging solutions provider. The company operates two primary segments: Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment manufactures rigid paper containers (round and custom shapes), metal and easy-peel ...Sonoco Products Company, founded in 1899 as Southern Novelty Company and renamed Sonoco in 1923, has evolved into a global packaging solutions provider. The company operates two primary segments: Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment manufactures rigid paper containers (round and custom shapes), metal and easy-peel membrane closures, thermoformed plastic trays and containers, and printed flexible packaging, along with global brand artwork management services. The Industrial Paper Packaging segment produces tubes, cones, cores, fiber-based protective packaging, reels and spools for wire and cable, recycled paperboard, corrugating medium, and recovered paper recycling services. Additional products include thermoformed rigid plastic trays, custom-engineered molded foam, temperature-assured shipping systems, injection-molded and extruded containers, retail security packaging with printed backer cards and blisters, and paper amenities. Sonoco serves industries such as paper, textiles, film, food, chemicals, general packaging, construction, and wire and cable. The company is committed to sustainability, innovation, and customer partnership. With a market cap of approximately $5.7 billion and a price-to-earnings ratio of about 9, Sonoco demonstrates financial stability. Its revenue per share is over $74, with a net profit margin of 8.7%. The company maintains a dividend yield of 3.7% and a payout ratio of 32.5%. Led by President and CEO Howard Coker, who joined in 1985, the company focuses on operational excellence and long-term growth. Sonoco invests in expanding manufacturing capabilities, such as the recent expansion of four U.S. paper can sites to produce rigid paper cans with paper bottoms, aligning with its sustainability goals. With 265 operations worldwide, Sonoco aims to improve lives through better packaging solutions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$7.5B
+41.7%
+12.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$396.4M
+141.8%
+55.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+20.9%
-2.5%
+0.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+9.5%
+53.9%
+19.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+5.3%
+70.6%
+38.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$345.8M
-21.5%
+155.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+4.6%
-44.6%
+149.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
127.0%
-60.5%
-5.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.05x
+33.0%
+3.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Hello, everyone. Thank you [Audio Gap] Global Marketing Communications. Roger, please go ahead.
Roger Schrum : Thank you, Warren, and good morning, everyone. Last evening, we issued a news release and posted an investor presentation that reviews Sunoco's Second Quarter 2026 financial results. Both are posted on the Investor Relations section of our website at sonoco.com. A replay of today's conference call will be available on our website later today, and we'll post a transcript later this week. If you would turn to Slide, I'll remind you that during today's call, we will discuss a number of forward-looking statements based on current expectations, estimates and projections. These statements are not guarantees of future performance and are subject to certain risks and uncertainties. Therefore, actual results may differ materially. Additionally, today's presentation includes the use of non-GAAP financial measures, which management believes provides useful information to investors about the company's financial condition and results of operations. Further information about the company's use of non-GAAP financial measures, including definitions as well as reconciliations to GAAP measures is available under the Investor Relations section of our website. Joining me this morning are Howard Coker, President and CEO; and Paul JoHimczek, Chief Financial Officer. For today's call, we will provide prepared remarks, followed by your questions. If you'll turn to Slide in your presentation, I will now turn the call over to Ho.
Robert Coker : Thank you, Raj, and good morning, everyone. Our Sunoco team delivered solid second quarter results that met our expectations that exceeded consensus estimates as productivity and cost controls helped offset global inflation in logistics, petroleum-based chemicals and coatings and raw materials. [Audio Gap] Will go through the financial details, so I'll concentrate my comments on the solid operating performance of our industrial and consumer segments, [Audio Gap] where we or so from what was a strong quarter last year and up 29% from the first quarter. . The segment's improvement was driven by $16 million in productivity gains, which more than offset price cost headwinds stemming from rising costs for freight, chemicals, OCC and lumber. Driving industrial growth with strong results from our North American URB mills as trade tons were up 6.4%, which boosted mill utilization rates to 95%. And the highest level in years. Much of this increased demand came from new market development such as saturated URB for laminates as well as share gains. Reels volumes were up 10% as we continue to benefit from demand for wire and cable customers who are helping with the infrastructure build-out of data centers, serving artificial intelligent investments. Overall, Global industrial volume mix was flat for the quarter as the strong results from our mills were partially offset by lower demand in Latin America and some of our …