Sonoco Q1 Income Up 24% to $67.6M; Adjusted EBITDA Falls 18% to $276.5M
Sonoco reported Q1 net sales of $1.676 billion and GAAP net income of $67.6 million, up 24%, while adjusted EBITDA fell 18% to $276.5 million and adjusted EPS dropped to $1.20. It opened a paper can plant in Thailand, invested $20 million in U.S. capacity, and reaffirmed 2026 adjusted EBITDA guidance.
1. Q1 Financial Results
Sonoco generated $1.676 billion in net sales during Q1, down 1.9% year-over-year, driven by divestitures and volume/mix shifts. GAAP net income rose 24% to $67.6 million and operating profit was flat at $127.1 million; adjusted operating profit was $200.8 million and adjusted EBITDA totaled $276.5 million.
2. Operational Developments
The company officially opened a paper can production facility in Nong Yai, Thailand, to serve Asia’s stacked chip market and invested $20 million to expand nailed wood reel capacity at its Hartselle, Alabama, plant for AI data center infrastructure. Consumer packaging segment net sales grew 2.9% to $1.097 billion, while segment operating profit margin contracted to 11.5%.
3. Outlook and Guidance
Sonoco reaffirmed full-year adjusted EBITDA guidance of $1.25 billion to $1.35 billion and operating cash flow target of $700 million to $800 million, while aiming for the low end of adjusted EPS guidance of $5.80 to $6.20 due to inflation and demand uncertainties. The company’s Profitability Performance Plan delivered $8 million in recurring savings and targets $150 million to $200 million over three years.