Sonoco’s third quarter earnings miss estimates as drought and inflation trigger $829 million impairment

Sonoco reported third quarter 2026 revenue of $2.04 billion and adjusted EPS of $1.67, both falling short of analyst estimates. Performance was weighed down by a substantial $829 million non-cash goodwill impairment charge and external headwinds including drought-driven harvest declines that pressured food can demand, alongside higher-than-expected inflation in freight and energy costs.

Key Highlights

• Recorded a GAAP net loss of $(732) million, primarily due to $(829) million in impairments across the Consumer EMEA/APAC and Industrial APAC businesses.
• Consumer Packaging revenue fell 2.9% as adverse weather conditions reduced metal can volumes by 3% across the Americas and EMEA.
• Industrial Paper Packaging sales increased 5.2% to $646 million, supported by 10% growth in North American trade ton sales and 94% mill utilization.
• Revised full-year 2026 adjusted EPS guidance downward to a range of $5.30 to $5.50.