What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-04-28 compared with 2025-10-29 · 252 added, 447 removed, 346 unchanged (67% of the section changed)

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Statements included in this Quarterly Report on Form 10-Q that are not historical in nature, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

In addition, Sonoco Products Company (the “Company” or “Sonoco”) and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “aim,” “achieve,” “anticipate,” “assume,” “believe,” “can,” “commit,” “consider,” “continue,” “could,” “develop,” “estimate,” “expect,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “intend,” “is designed to,” “likely,” “maintain,” “may,” “might,” “objective,” “ongoing,” “opportunity,” “outlook,” “persist,” “plan,” “position,” “possible,” “potential,” “predict,” “project,” “remain,” “seek,” “should,” “strategy,” “target,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements.

In addition, Sonoco Products Company (the “Company” or “Sonoco”) and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “aim,” “achieve,” “anticipate,” “assume,” “believe,” “can,” “commit,” “consider,” “continue,” “could,” “develop,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “intend,” “is designed to,” “likely,” “maintain,” “may,” “might,” “objective,” “ongoing,” “opportunity,” “outlook,” “persist,” “plan,” “position,” “possible,” “potential,” “predict,” “project,” “remain,” “seek,” “should,” “strategy,” “target,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements.

Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding:

• supply chain disruptions and availability and supply of raw materials and energy, and offsetting high raw material and energy costs;

• the effects of economic downturns, tariffs or other changes in trade policy, inflation, volatility and other macroeconomic factors on the Company and its industry, including the Company’s ability to manage such matters and their effects on consumers and customers;

• supply chain disruptions and availability and supply of raw materials and energy, and offsetting high raw material, energy, and logistics costs;

• the effects of economic downturns, changing tariffs or trade policy, inflation, volatility and other macroeconomic factors on the Company and its industry, including the Company’s ability to manage such matters and their effects on consumers and customers;

• the resiliency of the Company’s operating model;

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• the Company’s integration of Titan Holdings I B.V.

(“Eviosys”) and the Company’s ability to realize the anticipated benefits of the acquisition, including with respect to market leadership, strategic alignment, customer relationships, sustainability, innovation and cost synergies;

• effects and timing of, and anticipated costs, synergies and gains resulting from our other contemplated, pending, and completed acquisitions;

• effects and timing of, and anticipated gains and costs, of the Company’s restructuring and portfolio simplification activities, including with respect to streamlining of the Company’s organizational structure and the Company’s contemplated, pending, and completed divestitures, including the Company’s sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”), and the pending sale of the Company’s ThermoSafe business (“ThermoSafe”);

(“Eviosys”) and the Company’s ability to realize the anticipated benefits of the acquisition, and the effects and timing of, and anticipated costs, synergies and gains resulting from any other contemplated, pending, and completed acquisitions;

• effects and anticipated gains and costs of the Company’s portfolio simplification activities, including with respect to streamlining of the Company’s organizational structure and any contemplated, pending, and completed divestitures, including the Company’s sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”), and its ThermoSafe business (“ThermoSafe”);

• adequacy and anticipated amounts and uses of cash flows;

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• expected impact and costs of resolution of legal proceedings;

• extent of, and adequacy of provisions for, environmental liabilities;

• extent and adequacy of provisions for, environmental liabilities and the cost of compliance with environmental laws and regulations;

• the Company’s focus on sustainability and reducing its carbon emissions;

• adequacy of income tax provisions, realization of deferred tax assets, outcomes of uncertain tax issues and tax rates;

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• future asset impairment charges and fair values of assets;

• anticipated contributions to pension and postretirement benefit plans, fair values of plan assets, long-term rates of return on plan assets, and projected benefit obligations and payments;

• anticipated contributions to pension and postretirement benefit plans, fair values of plan assets, and long-term rates of return on plan assets;

• expected impact of implementation of new accounting pronouncements;

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Such risks, uncertainties and assumptions include, without limitation:

• ability to manage the mix of business and execute on the Company’s portfolio simplification strategy, including with respect to divestitures, such as the pending divestiture of ThermoSafe;

• ability to manage the mix of business;

• ability to identify suitable acquisitions at the levels needed to meet growth targets;

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• ability to successfully integrate newly acquired businesses, including Eviosys, into the Company’s operations, retain key employees, maintain relationships with customers and other third parties, and realize expected cost savings, synergies and other anticipated benefits relating thereto within the expected time period, or at all;

• availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariffs or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine as well as the economic sanctions related thereto, and uncertainty in the Middle East), and the Company’s ability to continue to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks;

• availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariffs or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine and between the United States and Iran and elsewhere in the Middle East, the potential escalation of tensions between China and Taiwan, and recent events in Venezuela), and the Company’s ability to continue to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks;

• costs of labor and employment, including the cost of employee and retiree medical, health, and life insurance benefits and the impact of any work stoppages due to labor disputes;

• success of new product development, introduction and sales, including successful timing of new product or product innovation introductions, success of implementation of new manufacturing technologies and installation of manufacturing equipment, including the startup of new facilities and lines;

• success of new product development, introduction and sales, including successful timing of new product or product innovation introductions and success of implementation of new manufacturing technologies, installation of manufacturing equipment, the startup of new facilities and lines, and integration of artificial intelligence (“AI”) to drive productivity and efficiency;

• consumer demand for products and changing consumer preferences, including changes related to inflation, tariffs, and other macroeconomic factors, and changes in consumer attitudes toward plastic packaging;

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• changes in U.S.

and foreign tariffs, tax rates, tax laws, regulations and interpretations thereof, including income, sales and use, property, value added, employment, and other taxes;

and foreign tariffs, tax rates, tax laws, regulations, judicial decisions and interpretations thereof, including income, sales and use, property, value added, employment, and other taxes;

• accuracy in valuation of deferred tax assets;

• the adoption of new, or changes in, accounting standards or interpretations;

• accuracy of assumptions underlying projections related to goodwill impairment testing, and accuracy of management’s assessment of goodwill impairment;

SONOCO PRODUCTS COMPANY

• accuracy of assumptions underlying projections related to goodwill impairment testing, and accuracy of management’s assessment of goodwill impairment;

• accuracy of assumptions underlying fair value measurements, accuracy of management’s assessments of fair value and fluctuations in fair value;

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• operational disruptions at our major facilities;

• failure or disruptions in our information technology systems;

• failure or disruptions in our information technology (“IT”) systems;

• loss of consumer or investor confidence, including as a result of public concerns about products packaged in our containers, or chemicals or substances used in raw materials or in the manufacturing process;

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• international, national, and local economic and market conditions and levels of unemployment;

• economic disruptions resulting from changing tariff policies and trade wars, the overall uncertainty surrounding international trade relations, war, and other geopolitical tensions (such as the ongoing military conflict between Russia and Ukraine and uncertainty in the Middle East), public health events, terrorist activities, and natural disasters, and our ability to successfully mitigate any negative impacts of such disruptions;

• economic disruptions resulting from changing tariff policies and trade wars, the overall uncertainty surrounding international trade relations, war and other geopolitical tensions (such as the ongoing conflicts between Russia and Ukraine and between the United States and Iran and elsewhere in the Middle East, the potential escalation of tensions between China and Taiwan, and recent events in Venezuela), public health events, terrorist activities, and natural disasters, and our ability to successfully mitigate any negative impacts of such disruptions;

• inflation and the activities and operations in highly inflationary economies.

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COMPANY OVERVIEW

Sonoco is a multi-billion dollar global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging products serving multiple end markets serving some of the world’s best-known brands around the globe from approximately 285 locations in 40 countries.

The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other.

Sonoco is a multi-billion dollar global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging products serving multiple end markets.

The Company has approximately 265 locations in 37 countries, serving some of the world’s best-known brands around the globe.

Sonoco competes in multiple product categories, with the majority of the Company’s revenues attributable to products and services sold to consumer and industrial products companies for use in the packaging of their products for sale or shipment.

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Each of the Company’s operating units has its own sales staff and maintains direct sales relationships with its customers.

Sonoco’s goal is to increase its long-term profitability and return capital to shareholders.

Over the past several years, we have simplified our portfolio around fewer, bigger businesses, which has reduced operating complexity and improved agility.

On December 4, 2024, Sonoco completed the acquisition of Eviosys, Europe’s leading food cans, ends and closures manufacturer, from KPS Capital Partners, LP, for net cash consideration of approximately $3.8 billion.

The transaction advances Sonoco’s portfolio transformation strategy to simplify and realign its portfolio and position the Company for long-term growth and value creation.

The transaction, the largest in the Company’s history, expands Sonoco’s global leadership in metal food can and aerosol packaging and facilitates our ability to partner with global customers to advance innovation and sustainability in metal packaging offerings.

Eviosys operates under the Consumer Packaging segment as Sonoco Metal Packaging EMEA.

Sonoco’s portfolio transformation strategy also includes significant divestitures.

For example, on April 1, 2025, the Company completed the sale of TFP to TOPPAN Holdings Inc.

(“Toppan”) for a purchase price of approximately $1.8 billion on a cash-free and debt-free basis and subject to customary adjustments.

On a standalone basis, TFP had revenue of $1.3 billion in 2024.

On September 7, 2025, following the completion of the Company’s previously disclosed review of strategic alternatives for ThermoSafe, its temperature-assured packaging business, the Company entered into a definitive agreement to sell ThermoSafe to Arsenal Capital Partners, a private equity firm, for a total purchase price of up to $725 million.

The purchase price consists of $650 million on a cash-free and debt-free basis payable at closing and subject to customary adjustments, and additional consideration of up to $75 million if certain performance measures for calendar year 2025 are met.

The transaction is subject to customary closing conditions, including regulatory review, and is expected to be completed by the end of 2025.

On a standalone basis, ThermoSafe, which is part of the All Other group of businesses, had revenue of $245 million in 2024.

The pending sale of ThermoSafe represents the next step in the Company’s portfolio transformation goal of streamlining its operations from a large portfolio of diversified businesses into two core global business segments.

The Company is focused on efficient capital deployment into these larger, core business units to improve economic returns and improve integration effectiveness and speed for acquired strategic assets.

For example, in July 2025 the Company announced plans to invest $30 million of capital into three rigid paper can facilities in the United States to increase its production capacity in the adhesives and sealants sector.

The investment is intended to improve supply chain reliability and ensure consistent access to materials for customers.

In parallel, the Company has continued to work on commercial, operational, and supply chain excellence programs to shift the mix of its business towards higher-valued products and increase overall productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives, as well as strategic pricing initiatives intended to better capture input costs and the value of the services provided.

The Company is focused on improving its competitive position by further reducing its cost structure over the remainder of 2025.

These cost reduction efforts include targeted restructuring activities for operations and support functions intended to enable the Company’s businesses to better leverage market capabilities and generate cash flow.

The Company believes that its simplified structure will enable greater strategic and operational focus while also helping to generate proceeds to fund deleveraging and further focus capital investments in the Company’s core Consumer Packaging and Industrial Paper Packaging businesses.

Late last year, Sonoco completed its multi-year portfolio transformation strategy, which was designed to create a more focused and simplified operating structure enabling sustainable earnings growth, accelerated margin expansion, and efficient capital allocation.

Management believes that this streamlined structure positions the Company for more consistent execution of these strategic priorities.

Highlights of Sonoco’s portfolio transformation strategy in recent years included the following significant acquisition and divestiture activity:

• The acquisition of Eviosys, Europe’s leading food cans, ends and closures manufacturer for net cash consideration of approximately $3.8 billion on December 4, 2024.

This transaction, the largest in the Company’s history, expanded Sonoco’s global leadership in metal food can and aerosol packaging, facilitating our ability to partner with global customers to advance innovation and sustainability in metal packaging offerings.

• The sale of TFP on April 1, 2025 for net cash consideration of approximately $1.8 billion.

• The sale of ThermoSafe on November 3, 2025 for net cash consideration of approximately $0.7 billion.

The Company’s operating and reporting structure consists of two reportable segments:

Consumer Packaging and Industrial Paper Packaging.

Following the sale of ThermoSafe, part of the All Other group of businesses, the Company’s industrial and specialty plastics business (“Industrial Plastics”) was the only remaining business in the All Other category.

Effective January 1, 2026, the Company changed its operating and management reporting structure and, as a result, realigned Industrial Plastics to be reported within the Industrial Paper Packaging segment.

Following this realignment, the All Other category as presented in this Quarterly Report on Form 10-Q reflects only the prior year results related to ThermoSafe.

All prior year results for the Industrial Paper Packaging segment and the All Other group of businesses have been recast to conform to the new presentation.

In addition, beginning in 2026 the Company consolidated its global metal packaging and rigid paper containers businesses under one structure based on two geographies — Consumer Packaging, Americas and Consumer Packaging, Europe, Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”).

The Company believes the new geographically integrated structure creates a simpler and more efficient operating model that will lead to further innovation, collaboration and growth opportunities.

Sonoco continues to work on commercial, operational, and supply chain excellence programs to shift the mix of its business towards higher-valued products and increase overall productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives, as well as strategic pricing initiatives intended to better capture input costs and the value of the services provided.

The Company also remains focused on improving its competitive position by reducing its cost structure through targeted restructuring activities for operations and support functions intended to enable the Company’s businesses to better leverage market capabilities and generate cash flow.

In March 2026, the Company opened a new paper can production facility in Nong Yai, Thailand, to serve the growing stacked chip market in Asia in its Consumer Packaging segment.

This new facility represents a strategic investment that is expected to support growing demand across Asia while advancing the Company’s innovation in sustainable packaging and utilizing advanced production systems designed for efficiency, speed and consistency.

The Company is planning to invest $20 million in its Industrial Paper Packaging segment to add new nailed wood reel production capacity at the Company’s Hartselle, Alabama, facility to help meet growing wire and cable infrastructure demand to support artificial intelligence data centers.

SONOCO PRODUCTS COMPANY

The Company remains focused on sustainability excellence and reducing its global carbon emissions.

In February 2026, the Company announced that a Virtual Power Purchase Agreement developed between Sonoco and ENGIE North America, consisting of 60 wind turbines in Crockett County, Texas, had become operational.

Sonoco’s mission is to be the global leader in value-added, sustainable metal and fiber consumer and industrial packaging.

In pursuit of this mission, Sonoco’s continued priorities in 2026 and beyond will be to invest in high-return growth and margin expansion projects, to maintain a strong balance sheet by focusing on further debt reduction, and to continue to return capital to shareholders.

The Company believes that its simplified structure will enable greater strategic and operational focus, help generate proceeds to fund deleveraging and further focus capital investments in the Company’s Consumer Packaging and Industrial Paper Packaging businesses, and deliver on its strategic priorities by driving sustainable growth, further expanding margins and efficiently allocating capital, maintaining a strong balance sheet and returning capital to shareholders.

By transforming into a simpler, stronger and more sustainable company, the Company believes it is positioned to grow through the remainder of 2026 and beyond.

Global Trade Developments

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On March 4, 2025, the U.S.

Government (the “Administration”) imposed a 25% tariff on all imports from Canada or Mexico.

After imposing this tariff, the Administration allowed for the temporary exemption from the tariff for any goods that comply with the United States-Mexico-Canada Agreement (“USMCA”), which has helped mitigate the impact of the tariff on the Company’s operations in North America.

On February 10, 2025, the Administration announced the expansion of Section 232 steel and aluminum tariffs (“Section 232 Tariffs”) on steel and aluminum imported into the United States, effective March 12, 2025, and the termination of the granting of new exclusions to mitigate these tariffs.

government imposed a 25% tariff on all imports from Canada or Mexico.

After imposing this tariff, the U.S.

government allowed for the temporary exemption from the tariff for any goods that comply with the USMCA, which has helped mitigate the impact of the tariff on the Company’s operations in North America.

On February 10, 2025, the United States announced the expansion of Section 232 Tariffs on steel and aluminum imported into the United States, effective March 12, 2025, and the termination of the granting of new exclusions to mitigate these tariffs.

As a result, imported steel and aluminum originating from most countries is currently subject to a 50% duty.

The Administration also imposed reciprocal tariffs at a baseline rate of 10%, effective April 5, 2025, and later set firmly established tariff rates for various countries at the beginning of August 2025.

The United States also imposed reciprocal tariffs at a baseline rate of 10%, effective April 5, 2025, and later set firmly established tariff rates for various countries at the beginning of August 2025.

For the most part, these reciprocal tariffs were incremental increases over the previously established 10% temporary reciprocal tariffs.

While future changes in tariff and trade policy may result in additional changes, and the exact scope of any such additional changes is not known at this time, the Company does not currently expect the current tariff environment to have a material direct effect on the Company’s profitability or cash flows over the remainder of 2025 because the Company’s manufacturing network is designed to serve local markets, reducing its exposure to cross-border disruptions and tariff-related risks.

On February 20, 2026, the U.S.

Supreme Court invalidated certain of these tariffs.

On April 20, 2026, U.S.

Customs and Border Protection launched an electronic system to manage refunds for tariffs paid under the International Emergency Economic Powers Act (“IEEPA”).

The Company will seek refund of all eligible IEEPA tariffs;

however, the amount of any such recovery is not expected to be material.

Effective April 6, 2026, the United States overhauled Section 232 tariffs on steel and aluminum moving from a metal-content-based assessment to the full customs value of the imported goods.

Under the revised rules, many steel and aluminum products, along with their derivative articles, now face significantly higher tariffs.

The metal ends that the Company imports into the United States are now subject to a 25% tariff.

Future changes in tariff and trade policy may result in additional changes, the exact scope of which is not known at this time.

While the full impact of the most recent Section 232 changes is uncertain, the Company does not currently expect the current tariff environment to have a material direct effect on its profitability or cash flows over the remainder of 2026 because the Company’s manufacturing network is designed to serve local markets, reducing its exposure to cross-border disruptions and tariff-related risks.

While the Company is actively working with its customers to help manage the impacts of higher input costs driven by tariffs, its business model allows for pricing adjustments when necessary.

In addition, the Company believes its transformed portfolio following the Eviosys acquisition and the sale of TFP is significantly more resilient, with nearly two-thirds of the Company’s sales for the nine-month period ended September 28, 2025 coming from the Consumer Packaging segment, a segment that has historically demonstrated strong performance across economic cycles.

In addition, while the Section 232 Tariffs impact input costs for the Company’s U.S.-based metal packaging and rigid paper container businesses (part of the Consumer Packaging segment), which source a portion of their steel and aluminum purchases from outside the United States, the Company intends, and has the contractual ability, to pass such increases in cost due to tariffs to its customers.

The ultimate resolution and consequences of these trade policy developments, and their effect on the Company, is uncertain and the Company will continue to monitor the Administration’s trade policy changes closely in order to adapt its strategies and to maintain competitiveness in a challenging market environment.

See “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.

In addition, the Company believes its transformed portfolio following the Eviosys acquisition and the sales of TFP and ThermoSafe is significantly more resilient, with nearly two-thirds of the Company’s sales in 2025 coming from the Consumer Packaging segment, a segment that has historically demonstrated strong performance across economic cycles.

In addition, while the Section 232 Tariffs impact input costs for the Company’s U.S.-based operations with Consumer Packaging, Americas, which source a portion of their steel and aluminum purchases from outside the United States, the Company intends, and has the contractual ability, to continue to pass such increases in cost due to tariffs to its customers.

The ultimate resolution and consequences of these trade policy developments, and their effect on the Company, is uncertain and the Company will continue to monitor trade policy changes closely in order to adapt its strategies and to maintain competitiveness in a challenging market environment.

See “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

SONOCO PRODUCTS COMPANY

Other Recent Developments

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law in the United States.

The OBBBA includes a broad range of tax reform provisions, including the extension of key provisions of the Tax Cuts and Jobs Act of 2017.

While the Company is continuing to assess the potential impact of this new legislation, it currently does not expect the OBBBA to have a material impact on its results of operations.

The ongoing conflict between the United States and Iran has introduced additional volatility into global energy markets, shipping corridors, and raw material supply chains.

The Company relies on a diversified global supplier base for resin, chemicals, adhesives, and other inputs, some of which are indirectly influenced by crude-oil-linked pricing or international transportation costs.

As a result of this geopolitical and macroeconomic uncertainty, the Company expects to experience increases in cost of sales from these higher input costs, as well as higher energy and logistics costs, including higher fuel surcharges.

While the Company will seek to reduce the potential impact on its customers, it is anticipated that such increases will be passed to our customers and that these cost pressures will not materially impact the Company’s ability to source materials, operate facilities, or meet customer demand.

Based on information currently available, the Company does not expect these factors to materially impact its near-term financial performance.

However, the duration and broader economic consequences of the conflict, including the potential for further increases in energy and logistics costs, remain uncertain.

The Company will continue to evaluate developments in the geopolitical environment and adjust its risk management strategies as conditions evolve.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”), which includes a broad range of tax reform provisions, including the extension of key provisions of the Tax Cuts and Jobs Act of 2017, was signed into law in the United States.

The Company has evaluated the impact of the OBBBA as part of its projected 2026 results, and the effects of the legislation are reflected in its income tax provision for the quarter.

While certain provisions of the OBBBA are expected to have a favorable impact on the Company’s income tax profile, the Company does not currently anticipate that the OBBBA will have a material effect on its effective tax rate, financial results or cash flows for 2026.

The Company will continue to monitor and assess the application of the OBBBA and any related regulatory guidance as it becomes available.

RESULTS OF OPERATIONS

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Sonoco’s management considers a variety of both GAAP and non-GAAP financial and operating measures in assessing the Company’s financial performance.

The key GAAP measures used are net sales, operating profit, gross profit margin, net income attributable to Sonoco and diluted earnings per share (“EPS”).

The key GAAP measures used are net sales, operating profit, gross profit margin, net income attributable to Sonoco, diluted earnings per share (“EPS”), segment operating profit, and segment operating profit margin.

The key non-GAAP measures used are Adjusted operating profit, Adjusted net income attributable to Sonoco, Adjusted diluted EPS, Adjusted EBITDA, Segment Adjusted EBITDA and Segment Adjusted EBITDA margin.

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difference between applicable current period costs and prior year costs, excluding the impact of estimated inflation or deflation, and volume changes where appropriate.

SONOCO PRODUCTS COMPANY

On December 18, 2024, the Company announced that it had entered into an agreement to sell TFP to Toppan.

On December 18, 2024, the Company announced that it had entered into an agreement to sell TFP.

This sale was completed on April 1, 2025.

In accordance with applicable accounting guidance, the results of TFP are presented as discontinued operations in the Condensed Consolidated Statements of Income and, as such, have been excluded from both continuing operations and segment results for all periods prior to the completion of the sale presented in this Quarterly Report on Form 10-Q.

Further, the Company reclassified the assets and liabilities of TFP as assets and liabilities of discontinued operations in the Condensed Consolidated Balance Sheets as of December 31, 2024.

The Condensed Consolidated Statements of Comprehensive Income, Changes in Total Equity, and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations.

All amounts, percentages and disclosures for all periods presented in this Quarterly Report on Form 10-Q reflect only the continuing operations of Sonoco unless otherwise noted.

Third Quarter 2025 Compared with Third Quarter 2024

The following discussion provides a review of results for the three-month period ended September 28, 2025 versus the three-month period ended September 29, 2024.

Consolidated net sales for the third quarter of 2025 were $2.1 billion, a $776.5 million or 57.3% increase from the third quarter of 2024.

The increase was primarily driven by $758.2 million in net sales from the Metal Packaging EMEA business following the December 2024 Eviosys acquisition, including the impact of foreign exchange rates, and $63.9 million from increased selling prices across the Industrial Paper Packaging and Consumer Packaging segments, partially offset by an overall decline in volume/mix of $39.9 million and the loss of $14.1 million in net sales related to the 2024 divestiture of two production facilities in China.

GAAP operating profit for the third quarter of 2025 was $195.0 million, an increase of 90.9% from the $102.1 million reported in the third quarter of 2024.

The increase in GAAP operating profit was primarily due to a $167.5 million increase in gross profit, primarily attributable to the addition of the Metal Packaging EMEA business following the Eviosys acquisition, and the absence of a $30.0 million loss on the sale of two production facilities in China, partially offset by increased selling, general and administrative expenses of $61.1 million primarily related to the Eviosys acquisition and increased restructuring-related costs of $42.2 million.

Adjusted Operating Profit for the third quarter of 2025 was $308.3 million, an increase of 77.6% from the $173.6 million reported for the same period in 2024.

GAAP net income attributable to Sonoco for the third quarter of 2025 increased to $122.9 million, or $1.23 per diluted share, compared to $50.9 million, or $0.51 per diluted share, for the third quarter of 2024.

This increase was primarily due to the increase in GAAP operating profit as described above, and the decrease in GAAP net income from discontinued operations due to the sale of TFP in 2025.

Adjusted net income attributable to Sonoco and Adjusted diluted EPS for the third quarter of 2025 were $191.2 million ($1.92 per diluted share), compared with $147.9 million ($1.49 per diluted share) for the same period in 2024.

Amounts reported in thousands within this Quarterly Report on Form 10-Q are computed based on the actual amounts.

As a result, the sum of the components may not equal the total amount reported in thousands due to rounding.

In addition, certain columns and rows within tables may not sum to the totals due to the use of rounded numbers.

Percentages presented are calculated from the underlying unrounded amounts.

SONOCO PRODUCTS COMPANY

First Quarter 2026 Compared with First Quarter 2025

The following discussion provides a review of results for the three-month period ended March 29, 2026 versus the three-month period ended March 30, 2025.

Consolidated net sales for the first quarter of 2026 were $1.7 billion, a $(32.8) million or 1.9% decline from the first quarter of 2025.

Lower volumes resulted in lower sales in the first quarter of 2026 of $(97.8) million compared to the same period last year as macroeconomic and geopolitical pressures weighed on both the Company’s supply chain and its customers and the November 2025 divestiture of ThermoSafe further reduced sales by $(55.8) million.

These decreases were partially offset by a favorable impact from foreign currency translation of $87.1 million and a $38.7 million benefit from higher selling prices implemented to offset the effects of inflation and tariffs.

All other factors contributed to a net reduction of $(5.0) million in the first quarter of 2026 compared to the same period last year.

GAAP operating profit for the first quarter of 2026 was $127.1 million, an increase of 0.2% from the $126.9 million reported in the first quarter of 2025.

The increase in GAAP operating profit was primarily due to productivity savings from fixed cost reduction initiatives totaling $4.6 million, lower losses on the sale of businesses of $2.3 million, and other net favorable impacts of $0.5 million.

These favorable items were partially offset by the impact of the ThermoSafe divestiture of $(7.2) million.

Adjusted Operating Profit for the first quarter of 2026 was $200.8 million, a decrease of (5.6)% from the $212.7 million reported for the same period in 2025, primarily resulting from the impact of the ThermoSafe divestiture.

GAAP net i ncome attributable to Sonoco for the first quarter of 2026 increased to $67.6 million, or $0.68 per diluted share, compared to $54.4 million, or $0.55 per diluted share, for the first quarter of 2025.

This increase was primarily due to the increase in GAAP operating profit described above, and lower net interest expense and provision for income taxes as described more fully below, partially offset by the decrease in GAAP net income from discontinued operations resulting from the April 1, 2025 sale of TFP and higher Other expense, net in the current year as described below.

Adjusted net income attributable to Sonoco and Adjusted diluted EPS for the first quarter of 2026 were $119.4 million (or $1.20 per diluted share), compared with $136.8 million (or $1.38 per diluted share) for the same period in 2025.

The decrease is primarily attributable to the sale of TFP.

Costs and Expenses

Cost of goods sold increased by $609.0 million, or 57.7%, in the third quarter of 2025 compared with the third quarter of 2024.

This increase was primarily driven by additional costs attributable to the Metal Packaging EMEA business following the Eviosys acquisition.

Gross profit margins decreased from 22.1% in the third quarter of 2024 to 21.9% in the third quarter of 2025 .

Selling, general and administrative costs increased by $61.1 million, or 38.3%, and were 10.4% of sales in the third quarter of 2025, compared to 11.8% of sales in the third quarter of 2024.

This increase reflects a $70.8 million impact from the Eviosys acquisition, partially offset by declines of $6.4 million in acquisition, integration and divestiture-related costs and $3.8 million related to divested businesses.

Restructuring/Asset impairment charges totaled $48.4 million in the third quarter of 2025, compared with $6.1 million during the same period last year.

The increase was primarily related to the higher cost of restructuring actions in 2025, including restructuring projects related to Metal Packaging EMEA, part of the Consumer Packaging segment, and the closure of the Atizapán, Mexico paper mill, part of the Industrial Paper Packaging segment.

Cost of goods sold decreased by $(24.7) million, or 1.8%, in the first quarter of 2026 compared with the first quarter of 2025.

This decrease resulted from a $(40.3) million impact from the divestiture of ThermoSafe, lower labor costs of $(18.8) million, and the nonrecurrence of inventory step-up amortization recognized in the first quarter of 2025 in connection with the Eviosys acquisition of $(17.9) million.

These decreases were partially offset by higher direct material costs and outbound freight costs of $44.1 million and $6.9 million, respectively.

Gross profit margins decreased slightly from 20.7% in the first quarter of 2025 to 20.6% in the first quarter of 2026 .

Selling, general and administrative costs decreased by $(7.5) million, or 3.6%, and were 12.0% of sales in the first quarter of 2026, compared to 12.2% of sales in the first quarter of 2025.

This decrease reflects reduced costs of $(7.6) million from the ThermoSafe divestiture and lower acquisition, integration, and divestiture-related costs of $(2.9) million, partially offset by net increases, primarily salaries and benefits, totaling $3.0 million.

Restructuring/Asset impairment charges totaled $15.1 million in the first quarter of 2026, compared with $13.6 million during the same period last year.

The charges in the current year related primarily to ongoing restructuring costs related to prior year plant closures and headcount eliminations in conjunction with the Company’s ongoing organizational effectiveness efforts.

Additional information regarding restructuring and asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

SONOCO PRODUCTS COMPANY

Loss on divestiture of business totaled $3.0 million in the third quarter of 2025 reflecting a charge relating to the pending divestiture of ThermoSafe, part of the All Other group of businesses.

Loss on divestiture of business during the third quarter of 2024 totaled $31.8 million including a loss of $30.0 million related to the sale of two production facilities in China, part of the Industrial Paper Packaging segment, and $1.8 million related to the sale of the Protective Solutions business (“Protexic”), part of the All Other group of businesses.

Loss on divestiture of business totaled $1.9 million in the first quarter of 2026 reflecting a charge related to the final working capital settlement for the ThermoSafe divestiture.

Loss on divestiture of business of $4.2 million during the first quarter of 2025 reflected a $5.4 million loss from the sale of the Company’s tube and core operations in Venezuela, partially offset by a $1.2 million gain from the sale of a small construction tube operation in France, both part of the Industrial Paper Packaging segment.

See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Other (expense)/income, net in the third quarter of 2025 was $(7.5) million, representing charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle primarily within our Consumer Packaging segment.

Net interest expense for the third quarter of 2025 increased to $56.6 million, compared with $55.1 million during the third quarter of 2024, primarily driven by the Eviosys acquisition.

The effective tax rates on GAAP income from continuing operations before income taxes and Adjusted income from continuing operations before income taxes in the third quarter of 2025 were 6.0% and 22.9%, respectively, compared with 35.2% and 21.1%, respectively, in the corresponding prior year quarter.

The decrease in the GAAP effective tax rate was primarily from the recording of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale.

SONOCO PRODUCTS COMPANY

Other expense, net was $12.3 million and $6.5 million in the first quarter of 2026 and 2025, respectively.

The amounts in both years are comprised of charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle, primarily within our Consumer Packaging segment.

Other expense, net in the first quarter of 2026 also includes non-operating charges related to certain pre-acquisition liabilities relevant to the Sonoco Metal Packaging (“SMP”) EMEA business.

Net interest expense for the first quarter of 2026 decreased to $35.8 million, compared with $48.7 million during the first quarter of 2025, primarily due to lower average debt levels resulting from the Company’s repayment of debt during 2025 utilizing proceeds from the divestitures of TFP and ThermoSafe.

The effective tax rates on GAAP income from continuing operations before income taxes and Adjusted income from continuing operations before income taxes in the first quarter of 2026 were 12.4% and 25.5%, respectively, compared with 30.9% and 25.7%, respectively, in the corresponding prior year quarter.

The decrease in the GAAP effective tax rate was primarily from a provision-to-return adjustment related to a retroactive U.S.

tax election.

Discontinued Operations

Net income from discontinued operations totaled $19.8 million in the third quarter of 2024.

Net income from discontinued operations totaled $5.2 million in the first quarter of 2025.

The sale of TFP was completed on April 1, 2025.

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The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other.

The following table summarizes net sales attributable to each of the Company’s segments and the All Other group of businesses for the third quarters of 2025 and 2024:

During 2025, the All Other group of businesses consisted of ThermoSafe and the Company’s industrial and specialty plastics business (“Industrial Plastics”).

With the divestiture of ThermoSafe in November 2025, only Industrial Plastics remained.

Effective January 1, 2026, the Company changed its operating and management reporting structure to include the results of Industrial Plastics in the Company’s Industrial Paper Packaging segment and discontinued the use of All Other.

Results for prior periods have been revised to conform with the current presentation.

The following table summarizes net sales attributable to each of the Company’s segments for the first quarters of 2026 and 2025 and the All Other group of businesses for the first quarter of 2025:

Three Months Ended

(Dollars in thousands) September 28, 2025 September 29, 2024 %

(Dollars in thousands) March 29, 2026 March 30, 2025 %

Consumer Packaging $ 1,097,075 $ 1,066,593 2.9 %

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SONOCO PRODUCTS COMPANY

The following table summarizes operating profit attributable to each of the Company’s reportable segments, the All Other group of businesses, and Corporate-related activity during the third quarters of 2025 and 2024:

The following table summarizes operating profit attributable to each of the Company’s reportable segments, and Corporate-related activity for the first quarters of 2026 and 2025 and the All Other group of businesses for the first quarter of 2025:

Three Months Ended

(Dollars in thousands) September 28, 2025 September 29, 2024 %

(Dollars in thousands) March 29, 2026 March 30, 2025 %

Operating profit:

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Acquisition, integration and divestiture-related costs (6,338) (27,266)

Other corporate costs

(8,804) (10,368)

Other operating expense, net (3,603) (317)

Other operating charges, net (147) (9,970)

Operating profit $ 127,092 $ 126,860 0.2 %

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These products primarily serve the consumer staples market, focused on food, beverage, household, personal, and pharmaceutical products.

Segment net sales increased $775.9 million over the corresponding prior year quarter primarily as a result of $758.2 million of net sales, including the impact of foreign exchange rates, attributable to Metal Packaging EMEA following the December 2024 acquisition of Eviosys, and price increases of $37.8 million implemented to offset the effects of inflation and tariffs, partially offset by softer volumes across the segment.

Segment operating profit increased over the corresponding prior year quarter primarily due to $101.6 million of operating profit from Metal Packaging EMEA, including the impact of foreign exchange rates and favorable price/cost of $24.2 million, partially offset by soft volume/mix of $15.1 million.

Segment operating profit margin was 14.5% in both the third quarter of 2025 and 2024.

Segment net sales increased $30.5 million, or 2.9%, over the prior year quarter as the favorable impact of foreign exchange rates added $67.7 million and price increases implemented to offset the effects of inflation and tariffs added approximately $27.6 million of sales.

These favorable factors were partially offset by softer volume/mix across the segment of $(61.6) million related to macroeconomic conditions and the impact of severe winter weather along the east coast of the United States in the first quarter of 2026.

Segment operating profit decreased compared to the corresponding prior year quarter primarily due to softer volumes, partially offset by the benefits from productivity savings and a favorable price/cost environment.

Segment operating profit margin were 11.5% and 13.2% in the first quarter of 2026 and 2025, respectively.

Industrial Paper Packaging

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Products across this segment support end markets, primarily in paper, textile, and films.

Segment net sales remained fairly flat from the corresponding prior year quarter as volume declines of $15.2 million across the segment and the loss of $14.1 million in net sales related to the 2024 divestiture of two production facilities in China offset year-over-year price increases of $26.1 million.

Segment operating profit increased over the corresponding prior year quarter primarily due to the positive impact of price/cost of $21.2 million and strong productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives, partially offset by lower volume/mix.

As a result, segment operating profit margin increased to 15.4% in the third quarter of 2025 from 12.0% in the same period last year.

The primary products produced within the All Other group of businesses consist of a variety of packaging materials, including plastic, paper, foam, and various other specialty materials serving a wide variety of end markets including consumer staples, consumer discretionary, and industrial.

SONOCO PRODUCTS COMPANY

Net sales remained relatively flat from the same period of the prior year as volume gains in temperature-assured packaging were essentially offset by lower volume from industrial plastics.

All Other operating profit increased in the third quarter of 2025 compared to the same period last year as solid productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives only partially offset lower volumes from industrial plastics and negative price/cost.

As a result, operating profit margin increased to 17.0% in the third quarter of 2025 compared to 16.3% in the same period last year.

Nine Months Ended September 28, 2025 Compared with Nine Months Ended September 29, 2024

The following discussion provides a review of results for the nine-month period ended September 28, 2025 compared with the nine-month period ended September 29, 2024.

Consolidated net sales for the first nine months of 2025 were $5.8 billion, a $1.8 billion or 45.9% increase from the same period last year.

The increase was driven by $1.8 billion in net sales attributable to Metal Packaging EMEA following the December 2024 Eviosys acquisition, including the impact of foreign currency exchange rates, and a $132.0 million favorable impact as a result of selling price increases across the business.

These increases were partially offset by the year-over-year loss of $78.4 million in sales due to divestitures (excluding the divestiture of TFP, which is accounted for as discontinued operations) and an unfavorable impact from decline in volume/mix of $49.3 million.

GAAP operating profit for the first nine months of 2025 was $497.5 million, an increase of 83.9% from the $270.5 million reported for the first nine months of 2024.

The increase in GAAP operating profit reflected a $371.1 million increase in gross profit primarily attributable to Metal Packaging EMEA following the Eviosys acquisition and the absence of $18.0 million of net losses related to divestitures, partially offset by increases of $145.4 million in selling, general and administrative expenses, including the amortization of intangible assets, and $16.6 million of restructuring costs.

Adjusted operating profit for the first nine months of 2025 was $768.0 million, an increase of 72.2% from the $446.0 million reported for the same period in 2024.

GAAP net income attributable to Sonoco for the first nine months of 2025 increased to $670.8 million, or $6.74 per diluted share, compared to $206.9 million, or $2.09 per diluted share, reported for the same period of 2024.

This increase reflects the increase in GAAP operating profit as described above and the gain on sale from the TFP divestiture, offset by lower sales following the completion of the TFP divestiture.

Adjusted net income attributable to Sonoco and Adjusted diluted EPS for the nine-month period ended September 28, 2025 increased 20.2% to $464.1 million, or $4.66 per diluted share, from $386.1 million, or $3.89 per diluted share, in the nine-month period ended September 29, 2024.

Costs and Expenses

Cost of goods sold increased by $1.4 billion, or 46.6%, in the first nine months of 2025 compared with the first nine months of 2024.

This increase was primarily driven by increased costs attributable to Metal Packaging EMEA following the Eviosys acquisition, partially offset by lower costs after the sales of the Protexic business and two production facilities in China in 2024.

Gross profit margins were 21.3% for the first nine months of 2025 and 21.7% for the first nine months of 2024 .

Selling, general and administrative costs for the first nine months of 2025 increased $145.4 million, or 28.9%, year over year.

This increase reflected $188.5 million of higher costs attributable to Metal Packaging EMEA following the Eviosys acquisition, partially offset by $14.5 million lower costs related to divested businesses, a $13.7 million decrease in acquisition, integration and divestiture-related costs and decreased labor and consulting fees.

Restructuring/Asset impairment charges totaled $71.7 million during the first nine months of 2025, compared with $55.1 million during the same period last year.

The increase was primarily related to the higher cost of restructuring actions in 2025, including Metal Packaging EMEA restructuring projects in the Consumer Packaging segment and the closure of the Atizapán, Mexico paper mill in the Industrial Paper Packaging segment.

Loss on divestiture of business of $9.3 million during the first nine months of 2025 reflected losses from the sales of the Company’s tube and core operations in Venezuela and the recycling operations in Asheville and a charge on the pending sale of ThermoSafe, partially offset by a gain from the sale of a small construction tube operation in France.

Loss on divestiture of business during the first nine months of 2024 primarily resulted from the sales of two production facilities

SONOCO PRODUCTS COMPANY

See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Other expense, net during the first nine months of 2025 was $20.6 million, reflecting charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle primarily within our Consumer Packaging segment.

Other income, net during the first nine months of 2024 reflected the $5.9 million gain upon the fair value remeasurement of one of the Company’s affiliate investments.

See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information related to the 2024 gain.

Non-operating pension costs decreased by $1.3 million during the first nine months year over year.

The decrease is primarily due to higher expected return on plan assets and lower amortization and settlement charges, partially offset by higher interest costs during the first nine months of 2025.

Additional information regarding costs of the Company’s retirement plans is provided in Note 13 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

GAAP net interest expense during the first nine months of 2025 increased to $165.5 million, compared with $107.7 million during the first nine months of 2024.

The increase of $57.8 million was primarily due to higher year-over-year debt levels resulting from financing transactions related to the Eviosys acquisition.

The effective tax rates on GAAP income from continuing operations before income taxes and Adjusted income from continuing operations before income taxes in the first nine months of 2025 were 22.6% and 24.5%, respectively, compared with 25.4% and 24.2%, respectively, in the prior-year period.

Discontinued Operations

Net income from discontinued operations totaled $429.7 million for the first nine months of 2025, compared with $83.1 million for the first nine months of 2024.

The increase in net income reflected the gain on the divestiture of TFP, partially offset by lower sales following the completion of the TFP divestiture on April 1, 2025.

SONOCO PRODUCTS COMPANY

Reportable Segments

The following table summarizes net sales attributable to each of the Company’s reportable segments, and the All Other group of businesses during the first nine months of 2025 and 2024:

Nine Months Ended

(Dollars in thousands) September 28, 2025 September 29, 2024 % Change

Consumer Packaging $ 3,731,872 $ 1,827,018 104.3 %

Industrial Paper Packaging 1,730,917 1,778,912 (2.7) %

Total reportable segments 5,462,789 3,605,930 51.5 %

All Other 287,988 336,159 (14.3) %

Net sales $ 5,750,777 $ 3,942,089 45.9 %

Nine Months Ended

(Dollars in thousands) September 28, 2025 September 29, 2024 % Change

Operating profit:

Consumer Packaging $ 510,109 $ 228,618 123.1 %

Industrial Paper Packaging 242,212 203,008 19.3 %

Segment operating profit 752,321 431,626 74.3 %

All Other 43,337 48,430 (10.5) %

Restructuring/Asset impairment charges (71,721) (55,122)

Amortization of acquisition intangibles (135,188) (52,997)

(Loss)/Gain on divestiture of business (9,297) (27,292)

Acquisition, integration and divestiture-related costs (47,745) (43,201)

Other corporate costs (27,657) (34,091)

Other operating income/(expense), net (6,557) 3,138

Operating profit $ 497,493 $ 270,491 83.9 %

Consumer Packaging

Segment net sales increased 104.3% year to date compared to the prior-year period, primarily as a result of $1.8 billion of net sales, including the impact of foreign exchange rates, attributable to Metal Packaging EMEA following the December 2024 acquisition of Eviosys, a $54.1 million favorable impact from increased pricing, and a $21.1 million favorable impact from higher volume/mix during the period.

Year-to-date segment operating profit increased 123.1%, primarily due to $248.1 million of operating profit from Metal Packaging EMEA following the acquisition of Eviosys, an increase from strong price/cost initiatives of $49.0 million, and strong productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives of $8.5 million, which overcame slight softness in volumes.

As a result, segment operating profit margin increased to 13.7% in the first nine months of 2025 from 12.5% in the same period last year.

Industrial Paper Packaging

Segment net sales decreased year to date compared to the prior-year period primarily due to decline in volume/mix of $65.7 million, the loss of $38.3 million of net sales related to the 2024 divestiture of two production facilities in China and the unfavorable impact from foreign currency exchange rates.

These declines were partially offset by a $76.7 million favorable impact from higher selling prices.

Segment operating profit increased 19.3% versus the prior-year period primarily as a result of improved price/cost trends of $51.4 million and improved productivity from procurement savings, production efficiencies and fixed cost initiatives of $19.7 million.

This was partially offset by $20.5 million in lower sales due to volume declines across the segment and

SONOCO PRODUCTS COMPANY

the unfavorable impact from foreign currency exchange rates.

As a result, segment operating margin increased to 14.0% in the first nine months of 2025 from 11.4% in the same period last year.

Net sales for the All Other group of businesses declined 14.3% year to date compared to the prior-year period primarily due to the sale of Protexic in 2024.

All Other operating profit declined 10.5% year to date compared to the prior-year period due to the sale of Protexic, lower volumes and negative price/cost, partially offset by higher productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives.

Segment operating margin increased to 15.0% in the first nine months of 2025 compared to 14.4% in the same period in 2024.

Segment net sales decreased $(8.2) million, or (1.4)%, from the corresponding prior year quarter as lower volume/mix across the segment reduced sales by $(36.2) million, partially offset by the favorable impact of foreign exchange rates of $18.7 million and price gains of $11.2 million resulting from index-based pricing resets.

All other factors contributed to a reduction of $(1.9) million in the first quarter of 2026 compared with the same period last year.

Segment operating profit decreased compared to the corresponding prior year quarter primarily due to lower volume/mix and losses attributable to a fire at a recycling facility in Greenville, South Carolina.

These unfavorable factors were partially offset by strong productivity savings.

Segment operating profit margin decreased to 12.0% in the first quarter of 2026 from 13.0% in the same period last year.

Net sales and operating profit reported for All Other in 2025 relate to the Company’s ThermoSafe business, which was sold in November 2025.

SONOCO PRODUCTS COMPANY

4 unchanged sentences

• acquisition, integration and divestiture-related costs;

• gains or losses from the divestiture of businesses and other assets;

• gains or losses from the divestiture of businesses;

• losses from the early extinguishment of debt;

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changes in LIFO inventory reserves;

gains/losses from the divestiture of businesses and other assets;

gains/losses from the divestiture of businesses;

acquisition, integration and divestiture-related costs;

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Quarterly Reconciliations of GAAP to Non-GAAP Financial Measures

The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for the three-month periods ended September 28, 2025 and September 29, 2024.

Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS

For the three-month period ended September 28, 2025

For the three-month period ended March 29, 2026

Dollars in thousands, except per share data Operating Profit Income from Continuing Operations Before Income Taxes Provision for Income Taxes Net Income Attributable to Sonoco Diluted EPS

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6,338 6,338 1,546 4,792 0.05

Changes in LIFO inventory reserves 4,367 4,367 1,082 3,285 0.03

Amortization of acquisition intangibles 44,320 44,320 9,762 34,558 0.35

Restructuring/Asset impairment charges 48,388 48,388 11,117 37,221 0.37

Loss/(Gain) on divestiture of business 2

Restructuring/Asset impairment charges, net 15,133 15,126 3,488 11,643 0.12

Loss on divestiture of business 2

1,865 1,865 462 1,403 0.01

Other expense, net 3

— 6,592 — 6,592 0.07

Non-operating pension costs — 2,496 645 1,851 0.02

Net losses from derivatives 2,035 2,035 502 1,533 0.02

Net gains from derivatives (87) (87) (22) (65) —

Other adjustments 4

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Due to rounding, individual items may not sum appropriately.

1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP.

2 Loss/(Gain) on divestiture of business includes the recognition of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale.

3 Other adjustments include an adjustment to deferred taxes from post-acquisition restructuring of the partitions business, provision-to-return adjustments related to the divested TFP business, and an increase in the valuation allowance on foreign tax credits.

1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys, the April 2025 divestiture of TFP and the November 2025 divestiture of ThermoSafe.

2 Loss on divestiture of business reflects the final net working capital settlement related to the November 2025 divestiture of ThermoSafe.

3 Amount relates to certain pre-acquisition liabilities relevant to the SMP EMEA business.

4 Other adjustments to the provision for income taxes include a benefit of $14,232 related to a provision-to-return adjustment for a retroactive U.S.

tax election.

SONOCO PRODUCTS COMPANY

For the three-month period ended September 29, 2024

For the three-month period ended March 30, 2025

Dollars in thousands, except per share data Operating Profit Income from Continuing Operations Before Income Taxes Provision for Income Taxes Net Income Attributable to Sonoco Diluted EPS

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Amortization of acquisition intangibles 41,961 41,961 9,604 32,144 0.32

Restructuring/Asset impairment charges 6,149 6,149 1,097 6,560 0.07

Restructuring/Asset impairment charges, net 13,581 13,581 3,200 10,715 0.11

Loss on divestiture of business 4,183 4,183 372 3,811 0.04

2 unchanged sentences

Other adjustments 3

1,259 1,259 (603) 4,908 0.06

Total adjustments 85,863 88,984 19,406 82,411 0.83

2 unchanged sentences

1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $37,791, $12,979 and $7,807 , respectively.

2 Acquisition, integration and divestiture-related costs include losses on treasury lock derivative instruments and amortization of financing fees totaling $30,181 related to debt instruments associated with the financing of the Eviosys acquisition.

These amortization costs are included in “ Interest expense ” in the Company’s Condensed Consolidated Statements of Income.

2 Acquisition, integration and divestiture-related costs relate mostly to the Company’s December 2024 acquisition of Eviosys and the divestiture of TFP, which was completed on April 1, 2025.

3 Other adjustments include discrete tax items primarily related to a $3,500 tax expense due to the reduction of the deferred tax asset on the outside basis of certain held-for-sale entities.

Adjusted EBITDA 1

Three Months Ended

Dollars in thousands September 28, 2025 September 29, 2024

Dollars in thousands March 29, 2026 March 30, 2025

Net income attributable to Sonoco $ 67,601 $ 54,429

4 unchanged sentences

Non-operating pension costs 2,496 3,121

Non-operating other expense 2

Net income attributable to noncontrolling interests 24 60

Restructuring/Asset impairment charges 48,388 8,190

Restructuring/Asset impairment charges, net 15,133 14,007

Changes in LIFO inventory reserves 4,367 562

1 unchanged sentence

Acquisition, integration and divestiture-related costs 6,338 39,942

Net loss/(gain) from derivatives

Net gain from derivatives (87) (2,949)

Other non-GAAP adjustments 1,796 646

Adjusted EBITDA $ 276,507 $ 337,756

1 Adjusted EBITDA is calculated on a total Company basis, including both continuing operations and discontinued operations.

1 For the period ended March 30, 2025, Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.

2 Amount relates to certain pre-acquisition liabilities relevant to the SMP EMEA business.

SONOCO PRODUCTS COMPANY

1 unchanged sentence

therefore, Adjusted EBITDA by segment is reconciled to the closest GAAP measure of segment profitability, segment operating profit.

Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” as prescribed by the Financial Accounting Standards Board.

Segment operating profit is the measure of segment profit or loss reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance in accordance with Accounting Standards Codification 280, “Segment Reporting,” as prescribed by the Financial Accounting Standards Board.

Segment results, which are reviewed by the Company’s management to evaluate segment performance, do not include the following:

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Accordingly, the term “segment operating profit” is defined as the segment’s portion of “operating profit” excluding those items.

All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and All Other, except for costs related to discontinued operations.

All remaining general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments, except for costs related to discontinued operations and All Other prior to 2026.

Total operating profit is composed of the sum of segment and All Other operating profit plus certain items that have been allocated to Corporate, including amortization of acquisition intangibles;

5 unchanged sentences

and certain other items that were excluded from segment and All Other operating profit.

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation

For the Three Months Ended September 28, 2025

Excludes results of discontinued operations

Dollars in thousands Consumer Packaging segment Industrial Paper Packaging segment All Other Corporate Total

As previously described, the use of All Other was discontinued effective January 1, 2026.

Segment Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation

For the Three Months Ended March 29, 2026

Dollars in thousands Consumer Packaging segment Industrial Paper Packaging segment Corporate Total

Segment and Total Operating Profit 1

$ 125,649 $ 69,246 $ (67,803) $ 127,092

Depreciation and amortization 2

50,950 29,759 44,320 125,029

Other expense 2

Other expense, net 3

— — (5,716) (5,716)

Equity in earnings of affiliates, net of tax

Equity in (loss)/earnings of affiliates, net of tax (2) 692 — 690

Restructuring/Asset impairment charges, net 4

— — 15,133 15,133

Restructuring/Asset impairment charges 3

Changes in LIFO inventory reserves 5

— — 4,367 4,367

3 unchanged sentences

— — 1,865 1,865

Net loss from derivatives 6

Net gain from derivatives 8

— — (87) (87)

Other non-GAAP adjustments — — 1,796 1,796

— — — 1,568 1,568

Segment Adjusted EBITDA $ 176,597 $ 99,697 $ 213 $ 276,507

2 unchanged sentences

Segment Adjusted EBITDA Margin 16.1 % 17.2 %

1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $43,397, the Industrial Paper Packaging segment of $5,485, and the All Other group of businesses of $152.

1 As pre viously announced, effective January 1, 2026, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment.

The Company no longer reports the results of any of its businesses in All Other.

2 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $39,368 and the Industrial Paper Packaging segment of $4,952.

3 These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle, primarily within the Consumer Packaging segment.

4 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $9,107 and the Industrial Paper Packaging segment of $5,959.

4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $1,293 and the Industrial Paper Packaging segment of $97.

5 Included in Corporate is a $31 loss on the sale of a recycling facility in Asheville, North Carolina associated with the Industrial Paper Packaging segment and a $3,000 charge related to the pending divestiture of ThermoSafe, part of the All Other group of businesses .

SONOCO PRODUCTS COMPANY

6 Included in Corporate are net losses from derivatives associated with the Consumer Packaging segment of $196, the Industrial Paper Packaging segment of $1,760, and the All Other group of businesses of $79.

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation

For the Three Months Ended September 29, 2024

Excludes results of discontinued operations

Dollars in thousands Consumer Packaging segment Industrial Paper Packaging segment All Other Corporate Total

Segment and Total Operating Profit $ 96,295 $ 70,206 $ 17,440 $ (81,833) $ 102,108

Depreciation and amortization 1

25,576 28,989 2,729 17,624 74,918

Equity in earnings of affiliates, net of tax 369 2,438 — — 2,807

Restructuring/Asset impairment charges 2

— — — 6,149 6,149

Changes in LIFO inventory reserves 3

— — — 790 790

Acquisition, integration and divestiture-related costs 4

— — — 15,605 15,605

Loss on divestiture of business 5

— — — 31,770 31,770

Net gains from derivatives 6

— — — (210) (210)

Other non-GAAP adjustments — — — (263) (263)

Segment Adjusted EBITDA $ 122,240 $ 101,633 $ 20,169 $ (10,368) $ 233,674

Net Sales $ 662,297 $ 585,082 $ 107,273

Segment Operating Profit Margin 14.5 % 12.0 % 16.3 %

Segment Adjusted EBITDA Margin 18.5 % 17.4 % 18.8 %

1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $11,110, the Industrial Paper Packaging segment of $6,306, and the All Other group of businesses of $208.

2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $2,468 and the Industrial Paper Packaging segment of $3,798.

5 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $3,853 and the Industrial Paper Packaging segment of $514.

4 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Industrial Paper Packaging segment of $4,529 and the Consumer Packaging segment of $(137).

5 Included in Corporate are losses from the divestiture of business associated with the Industrial Paper Packaging segment of $29,965 related to the sale of two production facilities in China, and the All Other group of businesses of $1,805 related to the sale of Protexic.

6 Included in Corporate are net gains from derivatives associated with the Consumer Packaging segment of $(41), the Industrial Paper Packaging segment of $(160), and the All Other group of businesses of $(9).

SONOCO PRODUCTS COMPANY

Year-to-Date Reconciliations of GAAP to Non-GAAP Financial Measures

The following tables reconcile the Company’s non-GAAP financial measures to their most directly comparable GAAP financial measures in the Company’s Condensed Consolidated Statements of Income for the nine-month periods ended September 28, 2025 and September 29, 2024.

Adjusted Operating Profit, Adjusted Income from Continuing Operations Before Income Taxes, Adjusted Provision for Income Taxes, Adjusted Net Income Attributable to Sonoco, and Adjusted Diluted EPS

For the nine-month period ended September 28, 2025

Dollars in thousands, except per share data Operating Profit Income from Continuing Operations Before Income Taxes Provision for Income Taxes Net Income Attributable to Sonoco

As Reported (GAAP) 1

$ 497,493 $ 302,186 $ 68,364 $ 670,770 $ 6.74

Acquisition, integration and divestiture-related costs 2

47,745 47,745 11,134 46,277 0.47

Changes in LIFO inventory reserves 1,755 1,755 433 1,322 0.01

Amortization of acquisition intangibles 135,188 135,188 29,586 105,389 1.06

Restructuring/Asset impairment charges 71,721 71,721 16,514 55,109 0.55

Loss/(Gain) on divestiture of business 3

9,297 9,297 28,455 (443,706) (4.46)

Non-operating pension costs — 9,157 2,190 6,967 0.07

Net losses from derivatives 1,240 1,240 306 934 0.01

Other adjustments 4

3,562 3,562 (14,456) 21,064 0.21

Total adjustments 270,508 279,665 74,162 (206,644) (2.08)

Adjusted $ 768,001 $ 581,851 $ 142,526 $ 464,126 $ 4.66

Due to rounding, individual items may not sum appropriately.

1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $663,564, $638,752, and $209,032, respectively.

2 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the April 2025 divestiture of TFP.

3 Loss/(Gain) on divestiture of business primarily consists of the gain on the sale of TFP, included in “Net income from discontinued operations” in the Company’s Condensed Consolidated Statements of Income, and the recognition of a deferred tax benefit on the outside basis difference related to the ThermoSafe business being classified as held for sale.

4 Other adjustments include discrete tax items primarily related to tax rate changes, an adjustment to deferred taxes from post-acquisition restructuring of the partitions business, provision-to-return adjustments related to the divested TFP business, and an increase in the valuation allowance on foreign tax credits.

SONOCO PRODUCTS COMPANY

For the nine-month period ended September 29, 2024

Dollars in thousands, except per share data Operating Profit Income from Continuing Operations Before Income Taxes Provision for Income Taxes Net Income Attributable to Sonoco Diluted EPS

As Reported (GAAP) 1

$ 270,491 $ 158,242 $ 40,146 $ 206,909 $ 2.09

Acquisition, integration and divestiture-related costs 2

43,201 73,382 12,659 64,064 0.64

Changes in LIFO inventory reserves (197) (197) (49) (148) —

Amortization of acquisition intangibles 52,997 52,997 13,105 51,423 0.52

Restructuring/Asset impairment charges 55,122 55,122 10,938 47,260 0.48

Loss on divestiture of business 27,292 27,292 1,676 25,616 0.26

Other income, net — (5,867) — (5,867) (0.06)

Non-operating pension costs — 10,412 2,593 7,819 0.08

Net gains from derivatives (3,981) (3,981) (1,001) (2,980) (0.03)

Other adjustments 3

1,040 1,040 8,959 (7,961) (0.09)

Total adjustments 175,474 210,200 48,880 179,226 1.80

Adjusted $ 445,965 $ 368,442 $ 89,026 $ 386,135 $ 3.89

Due to rounding, individual items may not sum appropriately.

1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $110,465, $108,794, and $25,675, respectively.

2 Acquisition, integration and divestiture related costs include losses on treasury lock derivative instruments and amortization of financing fees totaling $30,181 related to debt instruments associated with the financing of the Eviosys acquisition.

These amortization costs are included in “ Interest expense ” in the Company’s Condensed Consolidated Statements of Income.

3 Other adjustments include discrete tax items primarily related to a $10,070 adjustment to deferred taxes from the post-acquisition restructuring of the partitions business.

SONOCO PRODUCTS COMPANY

Adjusted EBITDA 1

Nine Months Ended

Dollars in thousands September 28, 2025 September 29, 2024

Net income attributable to Sonoco $ 670,770 $ 206,909

Interest expense 206,548 122,503

Interest income (16,385) (13,127)

Provision for income taxes 277,396 65,821

Depreciation and amortization 382,623 270,691

Non-operating pension costs 9,157 10,412

Net (loss)/income attributable to noncontrolling interests

Restructuring/Asset impairment charges 72,147 59,058

Changes in LIFO inventory reserves 1,755 (197)

(Gain)/Loss on divestiture of business

(616,476) 27,292

Acquisition, integration and divestiture-related costs 60,421 47,553

Other income, net

Net loss/(gain) from derivatives

1,240 (3,981)

Other non-GAAP adjustments 2,949 851

Adjusted EBITDA $ 1,052,128 $ 788,442

1 Adjusted EBITDA is calculated on a total Company basis, including both continuing operations and discontinued operations.

The following tables reconcile segment operating profit, the closest GAAP measure of profitability, to Segment Adjusted EBITDA.

6 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $643.

7 Included in Corporate is a loss of $1,865 from the divestiture of ThermoSafe, previously part of the All Other group of businesses.

8 Included in Corporate are net gains from derivatives associated with the Consumer Packaging segment of $(8) and the Industrial Paper Packaging segment of $(79).

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation

For the Nine Months Ended September 28, 2025

For the Three Months Ended March 30, 2025

Excludes results of discontinued operations

Dollars in thousands Consumer Packaging segment Industrial Paper Packaging segment All Other Corporate Total

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48,955 29,157 1,730 41,961 121,803

Other expense 2

— — — (20,617) (20,617)

Equity in earnings of affiliates, net of tax 309 6,902 — — 7,211

Restructuring/Asset impairment charges 3

— — — 71,721 71,721

Changes in LIFO inventory reserves 4

— — — 1,755 1,755

Acquisition, integration and divestiture-related costs 5

— — — 47,745 47,745

Loss on divestiture of business 6

— — — 9,297 9,297

Net loss from derivatives 7

— — — 1,240 1,240

Other non-GAAP adjustments — — — 3,562 3,562

Segment Adjusted EBITDA $ 662,593 $ 337,240 $ 50,782 $ (48,274) $ 1,002,341

Net Sales $ 3,731,872 $ 1,730,917 $ 287,988

Segment Operating Profit Margin 13.7 % 14.0 % 15.0 %

Segment Adjusted EBITDA Margin 17.8 % 19.5 % 17.6 %

SONOCO PRODUCTS COMPANY

1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $118,232, the Industrial Paper Packaging segment of $16,405, and the All Other group of businesses of $551.

2 These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle primarily within the Consumer Packaging segment.

3 Included in Corporate are restructuring/asset impairment charges/(income) associated with the Consumer Packaging segment of $37,736, the Industrial Paper Packaging segment of $31,944, and income associated with the All Other group of businesses of $(27).

4 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $1,755.

5 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $22,502 and the Industrial Paper Packaging segment of $528.

6 Included in Corporate are net losses on the divestiture of businesses associated with the Industrial Paper Packaging segment of $6,297, including losses of $5,390 related to the sale of the Company’s operations in Venezuela and $2,114 from the sale of a recycling facility in Asheville, North Carolina, partially offset by a gain of $(1,207) from the sale of a production facility in France and a charge associated with the All Other group of businesses of $3,000 related to the pending divestiture of ThermoSafe.

7 Included in Corporate are net losses from derivatives associated with the Consumer Packaging segment of $120, the Industrial Paper Packaging segment of $1,072, and the All Other group of businesses of $48.

Segment and All Other Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation

For the Nine Months Ended September 29, 2024

Dollars in thousands Consumer Packaging segment Industrial Paper Packaging segment All Other Corporate Total

Segment and Total Operating Profit $ 228,618 $ 203,008 $ 48,430 $ (209,565) $ 270,491

Depreciation and amortization 1

Other expense, net 2

— — — (6,517) (6,517)

Equity in earnings of affiliates, net of tax 416 5,802 — — 6,218

Restructuring/Asset impairment charges 2

Equity in (loss)/earnings of affiliates, net of tax (51) 1,972 — — 1,921

Restructuring/Asset impairment charges, net 3

— — — 13,581 13,581

13 unchanged sentences

1 Included in Corporate is the amortization of acquisition intangibles associated with the Consumer Packaging segment of $36,502, the Industrial Paper Packaging segment of $5,265, and the All Other group of businesses of $194.

2 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $16,661, the Industrial Paper Packaging segment of $34,138, and the All Other group of businesses of $1,362.

3 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $388 and the Industrial Paper Packaging segment of $(585).

2 These expenses relate to charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivables in order to accelerate its cash collection cycle, primarily within the Consumer Packaging segment.

3 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $1,220, the Industrial Paper Packaging segment of $12,438, and a gain in the All Other group of businesses of $77 .

4 Included in Corporate are changes in LIFO inventory reserves associated with the Consumer Packaging segment of $562.

5 Included in Corporate are acquisition, integration and divestiture-related costs associated with the Consumer Packaging segment of $20,072 and the Industrial Paper Packaging segment of $218.

5 Included in Corporate are net losses from the divestiture of businesses within the Industrial Paper Packaging segment of $28,715, including a loss of $29,965 from the sale of two production facilities in China, partially offset by a gain of

SONOCO PRODUCTS COMPANY

$(1,250) from the sale of the S3 business, and a gain on divestiture of businesses associated with the the All Other group of businesses of $(1,423) related to the sale of Protexic.

6 Included in Corporate are losses from the divestiture of businesses associated with the Industrial Paper Packaging segment of $4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela.

7 Included in Corporate are net gains from derivatives associated with the Consumer Packaging segment of $(284), the Industrial Paper Packaging segment of $(2,552), and the All Other group of businesses of $(113).

SONOCO PRODUCTS COMPANY

FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

Operating activities provided cash of $276.9 million and $437.6 million in the first nine months of 2025 and 2024, respectively, a year-over-year decrease of $160.7 million.

GAAP net income increased by $463.3 million year over year, primarily as a result of the gain on the divestiture of TFP, partially offset by higher depreciation and amortization.

Net working capital used $299.7 million of cash in the first nine months of 2025, while using $115.8 million in the same period of 2024, for a year-over-year decrease in operating cash flow of $183.8 million.

Accounts receivable used $37.5 million less cash during the first nine months of 2025 than in the same period of 2024 as a result of a changing mix in customer payment terms and strong focus on cash management.

Inventory used cash of $108.5 million in the first nine months of 2025, while using $6.7 million in the same period of 2024 due to higher overall inventory levels, mainly in tinplate steel, reflecting the impacts of both inflation and seasonality.

Accounts payable used cash of $46.1 million in the first nine months of 2025 and provided cash of $73.5 million in the same period of 2024 due to timing of purchases and scheduled payments.

The Company has continued to actively manage inventories and review payment terms with customers and suppliers to address risk and balance economic benefit.

Changes in accrued expenses and other assets and liabilities used $44.8 million of cash in the first nine months of 2025 and provided $43.6 million of cash in the same period of 2024, for a higher year-over-year use of cash of $88.5 million.

The primary drivers contributing to the change include higher year-over-year payments related to management incentive compensation of $28.9 million, interest of $26.1 million, and acquisition/divestiture-related costs of $27.2 million.

Additionally, prepaid expenses provided $31.1 million of cash in 2025 and used $38.9 million of cash in 2024, reflecting lower advance payments year over year for steel purchases from Ch ina.

Income taxes payable provided $192.1 million of cash in 2025, compared to $23.3 million in 2024, primarily due to the deferral of payments on the gain from the sale of the TFP business.

One-half of the related tax payments will be made in the fourth quarter of 2025 and the remainder in the first quarter of 2026.

Investing activities provided $1,584.3 million of cash in the first nine months of 2025, compared with using $178.1 million of cash in the same period of 2024.

The higher year-over-year provision of cash of $1,762.4 million was primarily the result of the sale of the Company’s TFP business on April 1, 2025 for which the Company received net cash proceeds totaling $1,807.5 million, and a final working capital settlement of $16.5 million related to the December 2024 acquisition of Eviosys.

Proceeds from sale of businesses in the first nine months of 2024 were $81.2 million, primarily from the sale of Protexic.

Capital expenditures during the first nine months of 2025 totaled $253.4 million, a $17.9 million decrease from the prior year.

Investing cash flows in the first nine months of 2024 also reflect the Company’s $10.0 million investment in a small South Carolina-based designer and manufacturer of sustainable protective packaging solutions.

Additionally, proceeds from the settlement of a net investment hedge provided $9.1 million of cash in the first nine months of 2024.

Financing activities used $2,090.3 million of cash in the first nine months of 2025 and provided $1,529.5 million of cash in the same period of 2024.

The use of cash during the first nine months of 2025 reflected net debt repayments totaling $1,938.4 million, including the repayment upon maturity of the $400 million aggregate principal amount of the Company’s 1.800% notes due February 2025, largely funded by commercial paper borrowings, and the April 2025 repayment of the outstanding $1,500 million principal amount of borrowings under its 364-day term loan facility and a portion of its outstanding commercial paper borrowings using cash proceeds from the sale of TFP.

Net debt proceeds in the first nine months of 2024 were $1,714.1 million, including $1,779.9 million of net proceeds from the issuance of senior unsecured notes in September 2024 to fund a portion of the cash consideration for the Eviosys acquisition.

These proceeds were partially offset by $74.5 million of principal repayments on the Company’s syndicated term loan during the first nine months of 2024.

Other financing costs in the first nine months of 2024 included $19.0 million in fees related to a 364-day senior unsecured bridge term loan facility obtained in June 2024 in connection with the Eviosys acquisition.

Operating activities used cas h of $367.9 million and $208.1 million in the first three months of 2026 and 2025, respectively, a higher year-over-year use of cash of $159.8 million.

GAAP net income increased by $13.1 million year over year, primarily as a result of lower year-over-year acquisition, integration, and divestiture-related costs, partially offset by higher depreciation and amortization costs.

Net working capital used $244.3 million of cash in the first three months of 2026, while using $309.4 million in the same period of 2025, for a lower year-over-year use of cash of $65.1 million .

Accounts receivable used $7.5 million less cash during the first three months of 2026 than in the same period of 2025 as a result of a changing mix in customer payment terms and strong focus on cash management.

Inventory used cash of $105.7 million in the first three months of 2026, while using $110.2 million in the same period of 2025 due to higher overall inventory levels, mainly in tinplate steel, reflecting the impacts of both inflation and seasonality.

Accounts payable used cash of $81.8 million and $134.9 million in the first three months of 2026 and 2025, respectively.

The lower use of cash was due to timing of purchases and scheduled payments.

The Company has continued to actively manage inventories and payment terms with customers and suppliers to both address risk and balance economic benefit.

Accrued expenses and other assets and liabilities used $153.4 million and $100.2 million of cash in the first three months of 2026 and 2025, respectively, for a greater year-over-year use of cash of $53.1 million.

The primary driver contributing to the change was higher cash payments made under the transition services agreement with the buyer of TFP, of $72.0 million, of which $36.7 million is included in Other receivables at March 29, 2026 and expected to be reimbursed to the Company during the second quarter of 2026.

Other drivers included year-over-year increases in payments related to acquisition/divestiture-related costs of $6.6 million and restructuring actions of $3.7 million, partially offset by lower year-over-year interest payments of $4.9 million and management incentive compensation of $2.9 million.

Additionally, prepaid expenses used $48.1 million and $0.9 million of cash in 2026 and 2025, respectively, reflecting higher year-over-year advance payments for steel purchases from China.

Income taxes payable and other income tax items used $122.2 million of cash in first three months of 2026, compared to providing $16.7 million of cash in the same period of 2025, primarily due to the payment of taxes during the quarter on the gains from the 2025 divestitures of TFP and ThermoSafe.

Investing activities used $76.1 million and $88.6 million of cash in the first three months of 2026 and 2025, respectively, for a lower year-over-year use of cash of $12.5 million.

Capital expenditures during the first three months of 2026 totaled $62.1 million, a decrease of $30.6 million from the prior year.

Net proceeds from the sale of businesses during the first three months of 2026 reflect the Company’s payment of final net working capital settlements of $15.2 million and $1.9 million to the buyers of TFP and ThermoSafe, respectively.

Proceeds from these acquisitions were received in April 2025 and November 2025, respectively.

Net proceeds from the sale of businesses in the first three months of 2025 reflect $2.0 million of proceeds related to the July 1, 2023 sale of the Company’s U.S.

BulkSak business released from escrow in February 2025 and $1.5 million of proceeds from the sale of a small construction tube operation in France.

Financing activities provided $302.2 million and $29.6 million of cash in the first three months of 2026 and 2025, respectively.

The primary driver of the year-over-year change was higher net borrowings during the first three months of 2026.

Net borrowings, primarily from the issuance of commercial paper, provided $359.0 million of cash during the first three months of 2026, while providing $79.2 million during the same period last year.

Net borrowing in the prior year reflected proceeds from the issuance of commercial paper of $528.0 million, partially offset by $448.8 million in net debt repayments, including the repayment upon maturity of the $400 million aggregate principal amount of the Company’s 1.800% note s due February 2025.

The change in book cash overdrafts was a lower year-over-year provision of cash of $9.5 million.

Cash used to pay dividends increased by $1.1 million year over year, reflecting the increase in the quarterly dividend payment from $0.52 per share to $0.53 per share approved by the Company’s Board of Directors in April 2025.

Cash used to repurchase the Company’s common stock to satisfy employee tax withholding obligations in association with the exercise of certain share-based compensation awards was $10.6 million in the nine-month period ended September 28, 2025, compared to $9.2 million in the corresponding prior-year period.

Cash used to repurchase the Company’s common stock to satisfy employee tax withholding obligations in association with the exercise of certain share-based compensation awards was $7.0 million in the three-month period ended March 29, 2026, compared to $10.6 million in the corresponding prior-year period.

During th e three-month period ended March 29, 2026, the Company reported a net decrease in cash and cash equivalents of $12.1 million due to currency translation adjustments resulting from a stronger U.S.

dollar relative to certain foreign currencies, principally the euro, in which the Company’s cash and cash equivalents were held.

SONOCO PRODUCTS COMPANY

During th e nine-month period ended September 28, 2025, the Company reported a net increase in cash and cash equivalents of $31.9 million due to currency translation adjustments resulting from a weaker U.S.

dollar relative to the majority of the foreign currencies in which the Company’s cash and cash equivalents were held.

The Company’s cash balances are held in numerous locations throughout the world.

At September 28, 2025 and December 31, 2024, approximately $186.5 million and $190.1 million, respectively, of the Company’s reported cash and cash equivalents balances of $244.9 million and $431.0 million, respectively, were held outside of the United States by its foreign subsidiaries.

At March 29, 2026 and December 31, 2025, approximately $207.1 million and $193.3 million, respectively, of the Company’s reported cash and cash equivalents balances of $224.5 million and $378.4 million, respectively, were held outside of the United States by its foreign subsidiaries.

Cash held outside of the United States is available to meet local liquidity needs or for capital expenditures, acquisitions, and other offshore growth opportunities.

4 unchanged sentences

The Company’s $1.25 billion commercial paper program is supported by the revolving credit facility.

At September 28, 2025 , the Company had $90.0 million in commercial paper balances outstanding;

accordingly, the committed capacity available for drawdown under its revolving credit facility at September 28, 2025 was $1.16 billion.

At March 29, 2026 , the Company had $344 million in commercial paper balances outstanding;

accordingly, the committed capacity available for drawdown under its revolving credit facility at March 29, 2026 was $906 million.

The Company has the contractual right to draw funds directly on the underlying revolving credit facility, which could possibly occur if there were a disruption in the commercial paper market.

On February 3, 2025, the Company repaid the $400 million aggregate principal amount of its 1.800% notes due February 2025 upon maturity using proceeds from the issuance of commercial paper.

On April 3, 2025, the Company repaid the outstanding $1.50 billion principal amount of borrowings under its 364 -day term loan facility using a portion of the cash proceeds from the sale of TFP.

The outstanding $700 million principal amount of borrowings under the t erm loan due December 2026 will become payable upon completion of the ThermoSafe divestiture.

Accordingly, the net obligation of $699.1 million has been classified as “Notes payable and current portion of long-term debt” in the Company’s Condensed Consolidated Balance Sheets.

At September 28, 2025, the Company had scheduled debt maturities of approximately $1.369 billion over the next twelve months.

The Company believes that cash and cash equivalents on hand, expected net cash flows generated from operating and investing activities, available capacity under the Company’s increased borrowing arrangements, and proceeds from the pending ThermoSafe divestiture, will provide sufficient liquidity to cover the remaining debt maturities and other cash flow needs of the Company over the next twelve months and beyond.

On March 23, 2026, the Company entered into a credit agreement with the lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent (the “Term Credit Agreement”) that provides the Company with a delayed draw term loan facility in an aggregate principal amount of up to $300 million on an unsecured basis (the “Term Loan Facility”).

The Term Loan Facility may be drawn, subject to the satisfaction of certain conditions, on or prior to September 13, 2026.

Borrowings under the Term Loan Facility, net of any prepayments, will become payable in full on the second anniversary of the Funding Date (as defined in the Term Credit Agreement) and will bear interest at a fluctuating rate per annum equal to, at the Company’s option, (i) the forward-looking Secured Overnight Financing Rate term rate (such borrowings, “Term SOFR Loans”), (ii) a base rate (such borrowings, “Base Rate Loans”), or (iii) a combination thereof, plus, in each case, an applicable margin calculated based on the Company’s credit ratings, ranging from 0.850% to 1.100% per annum for Term SOFR Loans and from 0.000% to 0.100% per annum for Base Rate Loans.

As of March 29, 2026 , no draws had been made under the Term Loan Facility.

At March 29, 2026, the Company had scheduled debt maturities of approximately $1.2 billion over the next twelve months.

The Company believes cash on hand and available credit, including the Term Loan Facility, combined with expected net cash flows generated from operating and investing activities, will provide sufficient liquidity to cover these and other cash flow needs of the Company over the next twelve months and beyond.

Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets.

The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage and a minimum level of net worth, as defined in the agreements.

As of September 28, 2025 , the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.

The Company continually explores strategic acquisition opportunities that may result in the use of cash.

Given the nature of the acquisition process, the timing and amounts of such expenditures are not always predictable.

The Company expects that any additional acquisitions requiring funding in excess of cash on hand would be financed using existing credit facilities or additional borrowings.

As of March 29, 2026 , the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants.

Acquisitions and internal investments are key elements of the Company’s growth strategy.

The Company believes that its cash on hand, coupled with cash generated from operations and available borrowing capacity, will enable it to support this strategy.

Although the Company believes that it has excess borrowing capacity beyond its current lines of credit, there can be no assurance that such financing would be available or available on terms that are acceptable to the Company.

The Company continually assesses its operational footprint as well as its overall portfolio of businesses and may consider the divestiture of plants and/or business units it considers to be suboptimal or nonstrategic.

Should these efforts result in the future sale of any plants or business units, management expects to utilize the proceeds to pay down debt and/or invest in growth projects or strategic acquisitions.

The Company anticipates making additional contributions to its other pension and postretirement plans of approximately $18.4 million durin g the remainder of 2026, resulting in expected total contributions to these plans of approximately $23.2 million in 2026.

14 unchanged sentences

Economic conditions in Venezuela worsened considerably over the past several years with no indications that conditions were likely to improve in the foreseeable future.

As a result, the Company sold its operations in Venezuela during the first quarter of 2025, recognizing a loss in the amount of $5.4 million, including $3.8 million of cumulative translation losses that were reclassified from accumulated other comprehensive income/(loss).

Turkey has been deemed to be a highly inflationary economy under U.S.

3 unchanged sentences

dollars with changes recorded through earnings.

The cumulative impact of applying highly inflationary accounting to Turk ey has been a pretax charge to earnings of $9.5 million ($7.3 million after tax), including $1.6 million ($1.2 million after tax) during th e nine-month period ended September 28, 2025.

The cumulative impact of applying highly inflationary accounting to Turk ey has been a pretax charge to earnings of $9.5 million ($7.3 million after tax), including $0.3 million ($0.2 million after tax) during th e three-month period ended March 29, 2026.

Th e magnitude of future earnings impacts, however, is uncertain as such impacts are dependent upon unpredictable movements in the Turkish lira relative to the U.S.

In addition to remeasurement-related charges, significant deterioration in the Turkish economy could result in the recognition of future impairment charges.

However, the Company believes its exposure is limited to its net investment in Turkey, which was approximat ely $49 million as of September 28, 2025.

However, the Company believes its exposure is limited to its net investment in Turkey, which was approximat ely $50 million as of March 29, 2026.

The Company is a purchaser of various raw material inputs such as recovered paper, energy, steel, aluminum, and plastic resin.

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In addition, the Company may occasionally use traditional, unleveraged interest-rate swaps to manage its mix of fixed and variable rate debt and control its exposure to interest rate movements within select ranges.

At September 28, 2025, t he Company had derivative contracts outstanding to hedge the prices on a portion of anticipated aluminum purchases.

At March 29, 2026, t he Company had derivative contracts outstanding to hedge the prices on a portion of anticipated aluminum purchases.

These contracts, some of which qualify as cash flow hedges, include aluminum swaps totaling 5,861 metric tons.

The total fair value of the Company’s commodity cash flow hedges netted to a gain position of $0.4 million and a gain position of $0.7 million at September 28, 2025 and December 31, 2024, respectively.

The amount of the gain included in accumulated other comprehensive income/(loss) at September 28, 2025 expected to be reclassified to the income statement during the next twelve months is $0.3 million .

The fair value of the Company’s commodity cash flow hedges netted to a gain positions of $3.3 million and $1.7 million at March 29, 2026 and December 31, 2025, respectively.

The amount of the gain included in accumulated other comprehensive (loss)/income at March 29, 2026 expected to be reclassified to the income statement during the next twelve months is $3.2 million .

SONOCO PRODUCTS COMPANY

The Company routinely enters into derivative currency contracts to mitigate the risk of unfavorable fluctuations in the exchange rate on certain anticipated foreign currency cash flows.

T he total market value of these instruments resulted in a net gain po sition of $1.4 million and a net loss position of $1.8 million at September 28, 2025 and December 31, 2024, respectively .

In addition, at September 28, 2025, the Company had various currency contracts outstanding to hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables.

T he total market value of these instruments resulted in a net loss po sition of $0.3 million and a net gain position of $49 thousand at March 29, 2026 and December 31, 2025, respectively .

In addition, at March 29, 2026, the Company had various currency contracts outstanding to hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables.

Although placed as economic hedges, the Company does not apply hedge accounting to these instruments.

As such, changes in fair value are recorded directly to income and expense in the periods that they occur.

The fair value of the Company’s non-designated deriva tives position was a gain o f $0.1 million and a loss of $2.7 million at September 28, 2025 and December 31, 2024, respectively.

In 2023, the Company became a party to cross-currency swap agreements with a total notional amount of $500 million to effectively convert a portion of the Company’s fixed-rate U.S.

dollar denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt.

The swap agreements, which had a maturity of December 18, 2026, provided for the Company to receive semi-annual interest payments in U.S.

dollars at a fixed rate and to make semi-annual interest payments in euros at a fixed rate.

On April 15, 2024, as a result of the strengthening of the U.S.

dollar against the euro, as well as a reduction in the differential between U.S.

and European interest rates, the Company terminated its swap agreements and received a net cash settlement of $9.1 million.

The foreign currency translation gain of approximately $3.1 million, net of tax, is included as a component of “Accumulated other comprehensive income/(loss).”

Following the unwind of the swaps, in April 2024 the Company entered into new cross-currency swap agreements with a total notional amount of $500 million, maturing on May 1, 2027, to effectively convert a portion of the Company’s fixed-rate U.S.

dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt.

The fair value of the Company’s non-designated deriva tives position was a loss o f $0.8 million and $1.1 million at March 29, 2026 and December 31, 2025, respectively.

In April 2024, the Company entered into cross-currency swap agreements with a total notional amount of $500 million, maturing on May 1, 2027, to effectively convert a portion of the Company’s fixed-rate U.S.

dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.

In December 2024, the Company entered into additional cross-currency swap agreements with a total notional amount of $1.5 billion, including $500 million maturing on September 1, 2026, $500 million maturing on September 1, 2029, and $500 million maturing on May 1, 2030.

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All of the Company’s cross-currency swap agreements are designated as net investment hedges for accounting purposes and have the risk management objective of managing foreign currency risk relating to net investments in certain European subsidiaries denominated in euros.

The gain or loss on the net investment hedge derivative instruments is included in the “Foreign currency translation” component of “Accumulated other comprehensive income/(loss)” until the net investment is sold, diluted, or liquidated.

Net interest receivables for the cross-currency swaps totaling $9.0 million and $27.1 million for the three- and nine-month periods ended September 28, 2025 are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income.

The gain or loss on the net investment hedge derivative instruments is included in the “Foreign currency translation” component of “Accumulated other comprehensive (loss)/income” until the net investment is sold, diluted, or liquidated.

Net interest receivables for the cross-currency swaps totaling $10.8 million for the three-month period ended March 29, 2026 are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income.

The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S.

dollar exchange rate market.

The fair value of the Company’s net investment hedges was a loss position of $202.1 million and a gain position of $11.9 million at September 28, 2025 and December 31, 2024, respectively.

Foreign currency translati on loss of $150.6 million (net of income taxes of $51.5 million ) and gain of $8.9 million (net of income taxes of $3.0 million) were reported as components of “Accumulated other comprehensive income/(loss)” withi n “Foreign currency items” at September 28, 2025 and December 31, 2024, respectively.

SONOCO PRODUCTS COMPANY

The fair value of the Company’s net investment hedges was a loss position of $157.2 million and $207.2 million at March 29, 2026 and December 31, 2025, respectively.

Foreign currency translati on loss of $117.1 million (net of income taxes of $40.1 million ) and a loss of $154.4 million (net of income taxes of $52.8 million) were reported as components of “Accumulated other comprehensive income/(loss)” withi n “Foreign currency items” at March 29, 2026 and December 31, 2025, respectively.

The Company has an investment in preferred stock of a nonaffiliated private company that is accounted for under the measurement alternative of cost less impairment, adjusted for any qualifying observable price changes.

Observable price changes would consist of Level 2 inputs based on privately negotiated transactions with the nonaffiliated company.

The preferred stock balance of $21.2 million is included in “ Other Assets ” in the Company’s Condensed Consolidated Balance Sheet as of September 28, 2025 .

During the first nine months of 2025, the U.S.

dollar weakened against most of the functional currencies in which the Company’s foreign investments are held, including the euro, the British pound, the Moroccan dirham, the Polish zloty, the Mexican peso, and the Brazilian real.

The impact of these changes, and the changes in the net investment hedge discussed above, resulted in a net translation gain of approximately $454 million being recor d ed in “Accumulated other comprehensive income/(loss)” during the nine-month period ended September 28, 2025.

The preferred stock balance of $21.2 million is included in “ Other Assets ” in the Company’s Condensed Consolidated Balance Sheet as of March 29, 2026 .

During the first three months of 2026, the U.S.

dolla r strengthened agai nst most of the functional currencies in which the Company’s foreign investments are held, including the euro, the British pound, the Moroccan dirham, the Polish zloty, and the Danish krone.

During this same period, the U.S.

dollar weakened against the Brazilian real, the Australian dollar, and the Malaysian ringgit.

The impact of these changes, and the changes in the net investment hedge discussed above, resulted in a net translation loss of approximately $61 million being recor d ed in “Accumulated other comprehensive (loss)/income” during the three-month period ended March 29, 2026.

SONOCO PRODUCTS COMPANY

Restructuring and Impairment

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Information regarding new accounting pronouncements is provided in Note 3 to the Company’s Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Form 10-Q.

SONOCO PRODUCTS COMPANY

Critical Accounting Estimates

Impairment of Goodwill

The Company assesses its goodwill for impairment annually and from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole.

If the fair value of a reporting unit exceeds the carrying value of that reporting unit, there is no impairment.

If the carrying value of a reporting unit exceeds the fair value of that reporting unit, an impairment charge to goodwill is recognized for the excess.

The Company’s reporting units, as determined in accordance with ASC 350, “Intangibles-Goodwill and Other,” are the same as, or one level below, its operating segments, as determined in accordance with ASC 280, “Segment Reporting.”

The Company completed its most recent annual goodwill impairment testing during the third quarter of 2025.

For testing purposes, the Company performed an assessment of each reporting unit using either a qualitative evaluation or a quantitative test.

The qualitative evaluations involved consideration of factors such as the macroeconomic environment, the industry, the Company’s overall financial performance, the current and projected financial performance of specific reporting units, and business strategy changes.

The quantitative tests, described further below, relied on management’s long-term financial projections for the reporting units and took into consideration, among other things, specific business unit risk, the countries in which the reporting units operate, and implied fair values based on comparable trading multiples.

When performing a quantitative analysis, the Company estimates the fair value of its reporting units using an equal weighting of the income and market approaches.

Under the income approach, the Company uses a discounted cash flow model based on projections of future years’ operating results and associated cash flows.

The Company’s assessments reflect significant management assumptions and estimates related to the Company’s forecast of sales growth, EBITDA, and discount rates, which are validated by observed comparable trading and transaction multiples based on guideline public companies under the market approach.

The Company’s model discounts projected future cash flows, forecasted over a five-year period, with an estimated residual growth rate.

The Company’s projections incorporate management’s estimates of the most-likely expected future results.

Projected future cash flows are discounted to present value using a discount rate that management believes is appropriate for the reporting unit.

The Company’s assessments, whether qualitative or quantitative, incorporate management’s expectations for the future, including forecasted growth rates and/or margin improvements.

Therefore, should there be changes in the relevant facts and circumstances and/or expectations, management’s conclusions regarding goodwill impairment may change as well.

In considering the level of uncertainty regarding the potential for goodwill impairment, management has concluded that any such impairment would, in most cases, likely be the result of adverse changes in more than one assumption.

Management considers the assumptions used to be its best estimates across a range of possible outcomes based on available evidence at the time of the assessment.

Other than in the Metal Packaging EMEA and Global Paper Products Asia Pacific (“APAC”) reporting units, which are discussed below, there is no specific singular event or single change in circumstances management has identified that it believes could reasonably result in a change to the expected future results in any of its reporting units significant enough to result in goodwill impairment.

In the case of Metal Packaging EMEA, the lower differential between the fair value and carrying value of the reporting unit is due to the acquisition of Eviosys in December 2024, at which time the majority of assets and liabilities acquired were recorded at fair value.

In management’s opinion, a change of such magnitude would more likely be the result of changes to some combination of the factors identified above, a general deterioration in competitive position, introduction of a superior technology, significant unexpected changes in customer preferences, an inability to pass through significant raw material cost increases, and other such items as identified in “Item 1A.

Risk Factors” in the Company’s 2024 Annual Report on Form 10-K.

Although no reporting units failed the annual impairment test, in management’s opinion the goodwill balances of the Metal Packaging EMEA and Global Paper Products APAC reporting units are individually at risk of impairment in the near term if each reporting unit’s operation does not perform in line with management’s expectations, or if there is a negative change in the long-term financial outlook for each reporting unit or in other factors such as the particular discount rates used.

Total goodwill associated with the Metal Packaging EMEA and Global Paper Products APAC reporting units was $1,361.3 million and $26.7 million, respectively, at September 28, 2025.

SONOCO PRODUCTS COMPANY

Sensitivity Analysis

In the annual goodwill impairment analysis completed during the third quarter of 2025, projected future cash flows for the Metal Packaging EMEA and Global Paper Products APAC reporting units were discounted at 12.0% and 13.0%, respectively, and their estimated fair values were determined to exceed their carrying values by approximately 3.1% and 9.0%, respectively.

Based on an equal weighting of the income and market approaches.and holding other valuation assumptions constant, the discount rates for the Metal Packaging EMEA and Global Paper Products APAC reporting units would have to increase to 12.7% and 15.4%, respectively, or projected EBITDA across all future periods would have to be reduced approximately 3.0% and 8.4%, respectively, in order for the estimated fair values of the reporting units to fall below their individual carrying values.

Other Critical Accounting Estimates

See Part II, Item 7, “Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis