SONOCO PRODUCTS CO 10-Q

Item 1. Financial Statements. SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Dollars and shares in thousands) March 29, 2026 December 31, 2025* Assets Current Assets Cash and cash equivalents $ 224,479 $ 378,398 Trade accounts receivable, net of allowances 893,036 842,810 Other receivables 223,939 178,755 Inventories, net: Finished goods 424,698 370,303 Work in process 184,626 161,313 Materials and supplies 607,488 589,393 Prepaid expenses 184,138 125,352 Total Current Assets 2,742,404 2,646,324 Property, Plant and Equipment, Net 2,742,785 2,797,800 Goodwill 2,482,201 2,511,611 Other Intangible Assets, Net 2,600,694 2,683,474 Deferred Income Taxes 30,672 54,449 Right of Use Asset-Operating Leases 308,936 307,450 Other Assets 162,327 161,226 Total Assets $ 11,070,019 $ 11,162,334 Liabilities and Equity Current Liabilities Payable to suppliers $ 988,748 $ 1,084,152 Accrued expenses and other payables 624,929 777,752 Notes payable and current portion of long-term debt 1,202,570 537,952 Accrued taxes 29,845 128,821 Total Current Liabilities 2,846,092 2,528,677 Long-term Debt, Net of Current Portion 3,486,942 3,788,973 Noncurrent Operating Lease Liabilities 264,598 263,192 Pension and Other Postretirement Benefits 176,372 177,976 Deferred Income Taxes 534,896 557,034 Other Liabilities 174,752 214,650 Total Liabilities 7,483,652 7,530,502 Commitments and Contingencies (See Note 18) Sonoco Shareholders’ Equity Common stock, no par value Authorized 300,000 shares 98,869 and 98,634 shares issued and outstanding at March 29, 2026 and December 31, 2025, respectively 7,175 7,175 Capital in excess of stated value 191,477 191,855 Accumulated other comprehensive (loss)/income ( 22,491 ) 37,204 Retained earnings 3,392,513 3,377,647 Total Sonoco Shareholders’ Equity 3,568,674 3,613,881 Noncontrolling Interests 17,693 17,951 Total Equity 3,586,367 3,631,832 Total Liabilities and Equity $ 11,070,019 $ 11,162,334 * The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (the “United States” or “U.S.”). See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 3 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Dollars and shares in thousands except per share data) Three Months Ended March 29, 2026 March 30, 2025 Net sales $ 1,676,442 $ 1,709,228 Cost of sales 1,330,814 1,355,541 Gross profit 345,628 353,687 Selling, general and administrative expenses 201,538 209,063 Restructuring/Asset impairment charges, net 15,133 13,581 Loss on divestiture of business ( 1,865 ) ( 4,183 ) Operating profit 127,092 126,860 Non-operating pension costs 2,496 3,121 Interest expense 44,494 56,027 Interest income 8,651 7,348 Other expense, net ( 12,308 ) ( 6,517 ) Income from continuing operations before income taxes 76,445 68,543 Provision for income taxes 9,510 21,147 Income before equity in earnings of affiliates 66,935 47,396 Equity in earnings of affiliates, net of tax 690 1,921 Net income from continuing operations 67,625 49,317 Net income from discontinued operations — 5,172 Net income 67,625 54,489 Net income from continuing operations attributable to noncontrolling interests ( 24 ) ( 60 ) Net income attributable to Sonoco $ 67,601 $ 54,429 Weighted average common shares outstanding: Basic 99,313 98,913 Diluted 99,704 99,342 Per common share: Basic earnings per common share: Continuing operations $ 0.68 $ 0.50 Discontinued operations — 0.05 Basic earnings per share attributable to Sonoco $ 0.68 $ 0.55 Diluted earnings per common share: Continuing operations $ 0.68 $ 0.50 Discontinued operations — 0.05 Diluted earnings per share attributable to Sonoco $ 0.68 $ 0.55 See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 4 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Dollars in thousands) Three Months Ended March 29, 2026 March 30, 2025 Net income $ 67,625 $ 54,489 Other comprehensive (loss)/income: Foreign currency translation adjustments ( 61,644 ) 175,839 Changes in defined benefit plans, net of tax 739 544 Changes in derivative financial instruments, net of tax 928 1,757 Other comprehensive (loss)/income ( 59,977 ) 178,140 Comprehensive income 7,648 232,629 Net income from continuing operations attributable to noncontrolling interests ( 24 ) ( 60 ) Other comprehensive loss attributable to noncontrolling interests 282 25 Comprehensive income attributable to Sonoco $ 7,906 $ 232,594 See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 5 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY (unaudited) (Dollars and shares in thousands) Total Equity Common Shares Capital in Excess of Stated Value Accumulated Other Comprehensive Income/(Loss) Retained Earnings Noncontrolling Interests Outstanding Amount December 31, 2025 $ 3,631,832 98,634 $ 7,175 $ 191,855 $ 37,204 $ 3,377,647 $ 17,951 Net income 67,625 67,601 24 Other comprehensive (loss)/income: Translation loss ( 61,644 ) ( 61,362 ) ( 282 ) Defined benefit plan adjustment, net of tax 739 739 Derivative financial instruments, net of tax 928 928 Other comprehensive loss ( 59,977 ) ( 59,695 ) ( 282 ) Dividends ( 52,735 ) ( 52,735 ) Issuance of stock awards 332 367 332 Shares repurchased ( 6,954 ) ( 132 ) ( 6,954 ) Share-based compensation 6,174 6,174 Other 70 70 March 29, 2026 $ 3,586,367 98,869 $ 7,175 $ 191,477 $ ( 22,491 ) $ 3,392,513 $ 17,693 Total Equity Common Shares Capital in Excess of Stated Value Accumulated Other Comprehensive Loss Retained Earnings Noncontrolling Interests Outstanding Amount December 31, 2024 $ 2,286,213 98,260 $ 7,175 $ 183,250 $ ( 502,734 ) $ 2,583,923 $ 14,599 Net income 54,489 54,429 60 Other comprehensive income/(loss): Translation gain/(loss) 175,839 175,864 ( 25 ) Defined benefit plan adjustment, net of tax 544 544 Derivative financial instruments, net of tax 1,757 1,757 Other comprehensive income/(loss) 178,140 178,165 ( 25 ) Divestiture of non-controlling interest ( 637 ) ( 637 ) Dividends ( 51,558 ) ( 51,558 ) Dividends paid to noncontrolling interests ( 243 ) ( 243 ) Issuance of stock awards 273 588 273 Shares repurchased ( 10,573 ) ( 220 ) ( 10,573 ) Share-based compensation 5,828 5,828 March 30, 2025 $ 2,461,932 98,628 $ 7,175 $ 178,778 $ ( 324,569 ) $ 2,586,794 $ 13,754 See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 6 SONOCO PRODUCTS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Dollars in thousands) Three Months Ended March 29, 2026 March 30, 2025 Cash Flows from Operating Activities: Net income $ 67,625 $ 54,489 Adjustments to reconcile net income to net cash used by operating activities: Asset impairments 3,090 4,949 Depreciation and amortization 125,029 121,492 Share-based compensation expense 6,174 5,829 Equity in earnings of affiliates, net of tax ( 690 ) ( 1,921 ) Net loss on disposition of assets 749 277 Net loss on divestiture of business 1,865 4,183 Pension and postretirement plan expense 3,782 4,357 Pension and postretirement plan contributions ( 4,829 ) ( 4,223 ) Net decrease in deferred taxes ( 2,801 ) ( 3,720 ) Change in assets and liabilities, net of effects from acquisitions, divestitures and foreign currency adjustments: Trade accounts receivable ( 56,775 ) ( 64,292 ) Inventories ( 105,691 ) ( 110,177 ) Payable to suppliers ( 81,832 ) ( 134,906 ) Prepaid expenses ( 48,090 ) ( 901 ) Income taxes payable and other income tax items ( 122,160 ) 16,703 Accrued expenses and other assets and liabilities ( 153,374 ) ( 100,233 ) Net cash used by operating activities ( 367,928 ) ( 208,094 ) Cash Flows from Investing Activities: Purchases of property, plant and equipment ( 62,079 ) ( 92,657 ) Proceeds from the sale of business, net 1 ( 17,076 ) 3,513 Proceeds from the sale of assets, net 1,719 474 Investments in affiliated companies and other net investing proceeds 1,329 88 Net cash used by investing activities ( 76,107 ) ( 88,582 ) Cash Flows from Financing Activities: Proceeds from issuance of debt 24,082 24,535 Principal repayment of debt ( 9,066 ) ( 473,293 ) Net change in commercial paper 344,000 528,000 Net increase in book cash overdrafts 2,905 12,448 Payment of loan financing costs ( 356 ) — Dividends paid to noncontrolling interests — ( 243 ) Cash dividends ( 52,404 ) ( 51,285 ) Payments for share repurchases ( 6,954 ) ( 10,573 ) Net cash provided by financing activities 302,207 29,589 Effects of Exchange Rate Changes on Cash ( 12,091 ) 15,742 Net Decrease in Cash and Cash Equivalents ( 153,919 ) ( 251,345 ) Cash and cash equivalents at beginning of period 378,398 443,060 Cash and cash equivalents at end of period $ 224,479 $ 191,715 1 The Company paid final net working capital settlements of $ 15,211 and $ 1,865 to the buyers of TFP (as defined in Note 1) and ThermoSafe (as defined in Note 1), respectively. See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 7 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 1: Basis of Interim Presentation On April 1, 2025, Sonoco Products Company (the “Company” or “Sonoco”) completed the sale of its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, “TFP”) to TOPPAN Holdings Inc. (“Toppan”). In accordance with applicable accounting guidance, the results of TFP, previously part of the Company’s Consumer Packaging segment, 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 presented in this Quarterly Report on Form 10-Q. 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. See Note 2 for additional information. Following the sale of the Company’s ThermoSafe business (“ThermoSafe”), part of the All Other group of businesses, to Arsenal Capital Partners (“Arsenal”), a private equity firm, on November 3, 2025, 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 the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments, unless otherwise stated) necessary to state fairly the consolidated financial position, results of operations and cash flows for the interim periods reported herein. Operating results for the three-month period ended March 29, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. 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. 8 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 2: Discontinued Operations As disclosed in Note 1, the Company completed the sale of TFP on April 1, 2025. Th e following table presents key components of “Net income from discontinued operations” for the three months ended March 30, 2025: Three Months Ended March 30, 2025 Net sales $ 320,678 Cost of sales 250,854 Gross profit 69,824 Selling, general and administrative expenses 31,607 Restructuring/Asset impairment charges, net 426 Operating profit 37,791 Other income, net 182 Interest expense 24,911 Interest income 281 Income from discontinued operations before income taxes 12,979 Provision for income taxes 7,807 Net income from discontinued operations 5,172 Net income from discontinued operations attributable to noncontrolling interests — Net income attributable to discontinued operations $ 5,172 Weighted average common shares outstanding: Basic 98,913 Diluted 99,342 Per common share: Net income attributable to discontinued operations: Basic $ 0.05 Diluted $ 0.05 The following table presents significant cash flow items from discontinued operations for the three months ended March 30, 2025: Three Months Ended March 30, 2025 Depreciation and amortization (a) $ ( 311 ) Purchases of property, plant and equipment $ ( 5,572 ) (a) Subsequent to entering the agreement to sell TFP on December 8, 2024, in accordance with Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment,” depreciation was not recognized on TFP’s property, plant and equipment, and amortization was not recognized on TFP’s other intangible assets or right of use assets-operating leases. 9 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 3: New Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires companies to disclose disaggregated amounts relating to (a) inventory purchases; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization. Further, this guidance will require companies to include certain amounts that are already required to be disclosed under current U.S. generally accepted accounting principles (“GAAP”) in the same disclosure as the other disaggregation requirements, disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The standard is intended to benefit investors by providing more detailed expense disclosures that would be useful in making capital allocation decisions. This guidance is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027 but early adoption is permitted. ASU 2024-03 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. During the three-month period ended March 29, 2026, there were no other newly issued or newly applicable accounting pronouncements that had, or are expected to have, a material impact on the Company’s condensed consolidated financial statements. Further, at March 29, 2026, there were no other pronouncements pending adoption that are expected to have a material impact on the Company’s condensed consolidated financial statements. Note 4: Acquisitions and Divestitures Acquisitions The Company did not complete any acquisitions during the three-month periods ended March 29, 2026 and March 30, 2025. TFP Divestiture On April 1, 2025, the Company completed the sale of TFP to Toppan for net cash consideration of $ 1,807,493 paid at closing on a cash-free and debt-free basis. A final working capital settlement of $ 15,211 was paid to Toppan during the first quarter of 2026. The Company had recorded a liability in this amount in “Accrued expenses and other payables” on its Condensed Consolidated Balance Sheet as of December 31, 2025. ThermoSafe and Other Divestitures On November 3, 2025, the Company completed the sale of ThermoSafe to Arsenal for net cash consideration of $ 655,827 paid at closing on a cash-free and debt-free basis and subject to customary adjustments. A final working capital settlement of $ 1,865 was paid to Arsenal during the first quarter of 2026. This settlement is included in “Loss on divestiture of business” in the Company’s Condensed Consolidated Statement of Income for the three-month period ended March 29, 2026. Transaction fees totaling $ 10,112 were also paid during the first quarter of 2026. The Company had recorded a liability for these fees in “Accrued expenses and other payables” on its Condensed Consolidated Balance Sheet as of December 31, 2025. On March 2, 2025, the Company completed the sale of its tube and core operations in Venezuela, part of the Industrial Paper Packaging segment, in exchange for a receivable in the amount of $ 145 . The sale resulted in a loss of $ 5,390 , including $ 3,792 of cumulative translation losses that were reclassified from accumulated other comprehensive income. This loss is included in “Loss on divestiture of business” in the Company’s Condensed Consolidated Statements of Income. In February 2025, the remaining $ 2,000 of proceeds from the July 1, 2023 sale of the Company’s U.S. BulkSak business were released to the Company from escrow. On January 17, 2025, the Company completed the sale of a small construction tube operation in France, part of the Industrial Paper Packaging segment, for cash proceeds of $ 1,513 and recognized a gain of $ 1,207 , which is included in “Loss on divestiture of business” in the Company’s Condensed Consolidated Statements of Income. 10 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The sales of these operations did not represent a strategic shift for the Company and did not have a major effect on its operations or financial results. Consequently, these sales did not meet the criteria for reporting as discontinued operations. Acquisition, Integration, and Divestitur e-Related Costs Acquisition, integration, and divestiture-related costs from continuing operations during the three-month periods ended March 29, 2026 and March 30, 2025 were recorded in the Company’s Condensed Consolidated Statements of Income as follows: Three Months Ended March 29, 2026 March 30, 2025 Cost of sales $ — $ 17,949 Selling, general and administrative expenses 6,338 9,317 Total acquisition, integration, and divestiture-related costs $ 6,338 $ 27,266 Acquisition, integration, and divestiture-related costs included in “Selling, general and administrative expenses” consist primarily of legal and professional fees, representation and warranty insurance premiums, as well as employee-related costs, and other integration activity costs, while such costs included in “Cost of sales” consist primarily of amortization of the fair value step-up of finished goods inventory. 11 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 5: Shareholders’ Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 29, 2026 March 30, 2025 Numerator: Net income from continuing operations $ 67,625 $ 49,317 Net income from continuing operations attributable to noncontrolling interests ( 24 ) ( 60 ) Net income from continuing operations attributable to Sonoco $ 67,601 $ 49,257 Net income attributable to Sonoco $ 67,601 $ 54,429 Denominator: Weighted average common shares outstanding: Basic 99,313 98,913 Dilutive effect of shared-based compensation 391 429 Diluted 99,704 99,342 Per common share: Basic earnings per common share: Net income from continuing operations $ 0.68 $ 0.50 Net income attributable to Sonoco $ 0.68 $ 0.55 Diluted earnings per common share: Net income from continuing operations $ 0.68 $ 0.50 Net income attributable to Sonoco $ 0.68 $ 0.55 Cash dividends $ 0.53 $ 0.52 No adjustments were made to “Net income attributable to Sonoco” in the computations of net income attributable to Sonoco per common share. Anti-dilutive Securities Potentially dilutive securities are calculated in accordance with the treasury stock method, which assumes the proceeds from the exercise of all dilutive stock appreciation rights (“SARs”) are used to repurchase the Company’s common stock. Certain SARs are not dilutive because either the exercise price is greater than the average market price of the stock during the reporting period or assumed repurchases from proceeds from the exercise of the SARs were anti-dilutive. These SARs may become dilutive in the future if the market price of the Company’s common stock appreciates. The average numbers of SARs that were anti-dilutive and, therefore, not included in the computation of diluted earnings per share during the three-month periods ended March 29, 2026 and March 30, 2025 were as follows (in thousands): Three Months Ended March 29, 2026 March 30, 2025 Anti-dilutive stock appreciation rights 396 548 12 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Stock Repurchases On April 20, 2021, the Company’s Board of Directors (the “Board”) authorized the repurchase of the Company’s common stock in an aggregate amount of up to $ 350,000 . Following several repurchase transactions in 2021, a total of $ 137,972 remained available for share repurchases under this authorization as of December 31, 2021. Subsequent to 2021, no additional shares have been repurchased under this authorization. The Company regularly repurchases shares of its common stock to satisfy employee tax withholding obligations in association with certain share-based compensation awards. These repurchases, which are not part of a publicly announced plan or program, totaled 132 shares during the three-month period ended March 29, 2026, at a cost of $ 6,954 , and 220 shares during the three-month period ended March 30, 2025, at a cost of $ 10,573 . Dividend Declarations On February 11, 2026, the Board declared a regular quarterly dividend of $ 0.53 per share. This dividend was paid on March 10, 2026 to all shareholders of record as of February 25, 2026. On April 15, 2026, the Board declared a regular quarterly dividend of $ 0.54 per share. This dividend will be paid on June 10, 2026 to all shareholders of record as of May 8, 2026. 13 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 6: Restructuring and Asset Impairments Due to its geographic footprint and the cost-competitive nature of its businesses, the Company continually seeks more cost-effective means and structures to serve its customers and to respond to significant changes in its markets. As such, plant closures in connection with footprint rationalization and headcount reductions are an important component of the Company’s cost control initiatives. The amount of these costs can vary significantly from quarter to quarter and from year to year depending upon the scope, nature, and location of the restructuring activities. Set forth below are the total restructuring and asset impairment charges, net of adjustments, recognized during the periods presented: Three Months Ended March 29, 2026 March 30, 2025 Restructuring and restructuring-related asset impairment charges, net $ 15,133 $ 13,581 Other asset impairments — — Restructuring/Asset impairment charges, net $ 15,133 $ 13,581 The table below sets forth restructuring and restructuring-related asset impairment charges by type incurred: Three Months Ended March 29, 2026 March 30, 2025 Severance and Termination Benefits $ 7,370 $ 6,998 Asset Impairment/Disposal of Assets 3,090 5,101 Other Costs 4,673 1,482 Restructuring and restructuring-related asset impairment charges, net $ 15,133 $ 13,581 The table below sets forth restructuring and restructuring-related asset impairment charges attributable to each reportable segment, the All Other group of businesses, and Corporate-related activity: Three Months Ended March 29, 2026 March 30, 2025 Consumer Packaging $ 9,107 $ 1,229 Industrial Paper Packaging 5,959 12,498 All Other — 5 Corporate 67 ( 151 ) Restructuring and restructuring-related asset impairment charges, net $ 15,133 $ 13,581 Restructuring and restructuring-related asset impairment charges are included in “Restructuring/Asset impairment charges, net” in the Company’s Condensed Consolidated Statements of Income. 14 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The following table sets forth the activity in the restructuring accrual included in “Accrued expenses and other payables” in the Company’s Condensed Consolidated Balance Sheets: Severance and Termination Benefits Asset Impairments/ Disposal of Assets Other Costs Total Accrual Activity Liability at December 31, 2025 $ 55,628 $ — $ 3,527 $ 59,155 2026 charges 7,370 3,090 4,673 15,133 Cash (payments)/receipts ( 10,100 ) 1,545 ( 4,642 ) ( 13,197 ) Asset write downs/disposals — ( 4,635 ) — ( 4,635 ) Foreign currency translation ( 651 ) — ( 45 ) ( 696 ) Liability at March 29, 2026 $ 52,247 $ — $ 3,513 $ 55,760 “Severance and Termination Benefits” during the three-month period ended March 29, 2026 includes the cost of severance for approximately 105 employees whose positions were eliminated in conjunction with the Company’s ongoing organizational effectiveness efforts, including additional severance charges related to the prior year closure of a metal packaging facility in France, part of the Consumer Packaging segment. “Asset Impairment/Disposal of Assets” during the three-month period ended March 29, 2026 consists primarily of asset write-offs related to the closure of a metal packaging facility in Ghana, part of the Consumer Packaging segment and additional losses from the sale of assets associated with a previously closed paper mill facility in Greece, part of the Industrial Paper Packaging segment. “Other Costs” during the three-month period ended March 29, 2026 consists primarily of equipment removal, utilities, plant security, property taxes, and insurance costs related to the prior year closures of metal can facilities in France and Ghana, and the prior year closures of a paper mill in Mexico and partitions facility in California, both part of the Industrial Paper Packaging segment, as well as ongoing facility carrying costs of other previously announced plant closures. The Company expects to pay the majority of the remaining restructuring reserves by the end of 2026 using cash generated from operations. The Company also expects to recognize future additional charges totaling approximately $ 5,000 in connection with previously announced restructuring actions and believes that the majority of these charges will be incurred and paid by the end of 2026. The Company continually evaluates its cost structure, including its manufacturing capacity, and additional restructuring actions are likely to be undertaken. 15 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 7: Accumulated Other Comprehensive (Loss)/Income The following table summarizes the components of accumulated other comprehensive (loss)/income and the changes in the balances of each component of accumulated other comprehensive (loss)/income, net of tax as applicable, for the three-month periods ended March 29, 2026 and March 30, 2025: Foreign Currency Items Defined Benefit Pension Items Gains and Losses on Cash Flow Hedges Accumulated Other Comprehensive Income/(Loss) Balance at December 31, 2025 $ 124,227 $ ( 87,958 ) $ 935 $ 37,204 Other comprehensive (loss)/income before reclassifications ( 61,362 ) ( 61 ) 1,210 ( 60,213 ) Amounts reclassified from accumulated other comprehensive loss to net income — 800 ( 282 ) 518 Other comprehensive (loss)/income ( 61,362 ) 739 928 ( 59,695 ) Balance at March 29, 2026 $ 62,865 $ ( 87,219 ) $ 1,863 $ ( 22,491 ) Balance at December 31, 2024 $ ( 410,931 ) $ ( 90,613 ) $ ( 1,190 ) $ ( 502,734 ) Other comprehensive income/(loss) before reclassifications 172,072 ( 265 ) 2,024 173,831 Amounts reclassified from accumulated other comprehensive loss to net income 3,792 809 ( 267 ) 4,334 Other comprehensive income 175,864 544 1,757 178,165 Balance at March 30, 2025 $ ( 235,067 ) $ ( 90,069 ) $ 567 $ ( 324,569 ) 16 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The following table summarizes the effects on net income of significant amounts reclassified from each component of accumulated other comprehensive loss for the three-month periods ended March 29, 2026 and March 30, 2025: Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Details about Accumulated Other Comprehensive Loss Components March 29, 2026 March 30, 2025 Affected Line Item in the Condensed Consolidated Statements of Income Foreign currency items Currency translation adjustment loss on Venezuela sale (a) $ — $ ( 3,792 ) Loss on divestiture of business — ( 3,792 ) Net income Gains/(losses) on cash flow hedges Foreign exchange contracts (b) ( 85 ) 399 Net sales Foreign exchange contracts (b) ( 188 ) ( 41 ) Cost of sales Commodity contracts (b) 770 — Cost of sales 497 358 Income from continuing operations before income taxes Income tax impact ( 215 ) ( 91 ) Provision for income taxes 282 267 Net income Defined benefit pension items Amortization of defined benefit pension items (c) ( 1,009 ) ( 1,056 ) Non-operating pension costs ( 1,009 ) ( 1,056 ) Income from continuing operations before income taxes Income tax impact 209 247 Provision for income taxes ( 800 ) ( 809 ) Net income Total reclassifications for the period $ ( 518 ) $ ( 4,334 ) Net income (a) See Note 4 for additional details. (b) See Note 11 for additional details. (c) See Note 13 for additional details. 17 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The following table summarizes the before- and after-tax amounts for the various components of other comprehensive (loss)/income for the three-month periods ended March 29, 2026 and March 30, 2025: Three Months Ended March 29, 2026 Three Months Ended March 30, 2025 Before Tax Amount Tax (Expense) Benefit After Tax Amount Before Tax Amount Tax (Expense) Benefit After Tax Amount Foreign currency items: Other comprehensive (loss)/income before reclassifications $ ( 48,599 ) $ ( 12,763 ) $ ( 61,362 ) $ 161,828 $ 10,244 $ 172,072 Amounts reclassified from accumulated other comprehensive (loss)/income to net income (a) — — — 3,792 — 3,792 Net other comprehensive (loss)/income from foreign currency items ( 48,599 ) ( 12,763 ) ( 61,362 ) 165,620 10,244 175,864 Defined benefit pension items: Other comprehensive (loss)/income before reclassifications ( 77 ) 16 ( 61 ) ( 346 ) 81 ( 265 ) Amounts reclassified from accumulated other comprehensive (loss)/income to net income (b) 1,009 ( 209 ) 800 1,056 ( 247 ) 809 Net other comprehensive income/(loss) from defined benefit pension items 932 ( 193 ) 739 710 ( 166 ) 544 Gains and losses on cash flow hedges: Other comprehensive income/(loss) before reclassifications 2,132 ( 922 ) 1,210 2,715 ( 691 ) 2,024 Amounts reclassified from accumulated other comprehensive (loss)/income to net income (c) ( 497 ) 215 ( 282 ) ( 358 ) 91 ( 267 ) Net other comprehensive income/(loss) from cash flow hedges 1,635 ( 707 ) 928 2,357 ( 600 ) 1,757 Other comprehensive (loss)/income $ ( 46,032 ) $ ( 13,663 ) $ ( 59,695 ) $ 168,687 $ 9,478 $ 178,165 (a) See Note 4 for additional details. (b) See Note 13 for additional details. (c) See Note 11 for additional details. 18 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 8: Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill for the three-month period ended March 29, 2026 is as follows: Consumer Packaging Industrial Paper Packaging Total Goodwill at December 31, 2025 $ 1,947,991 $ 563,620 $ 2,511,611 Foreign currency translation ( 27,086 ) ( 2,324 ) ( 29,410 ) Goodwill at March 29, 2026 $ 1,920,905 $ 561,296 $ 2,482,201 The goodwill balance of the Industrial Paper Packaging segment at December 31, 2025 included $ 55,244 related to Industrial Plastics, previously reported as part of the All Other group of businesses. See Note 1 for additional information. The Company assesses goodwill for impairment annually during the third quarter, or from time to time when warranted by the facts and circumstances surrounding individual reporting units or the Company as a whole. The Company completed its most recent annual goodwill impairment testing during the third quarter of 2025 and analyzed certain qualitative and quantitative factors in determining whether a goodwill impairment existed. The Company’s assessm ents reflected a number of significant management assumptions and estimates including the Company’s forecast of sales growth during the discrete period, EBIT DA, and discount rates. Changes in these assumptions could materially impact the Company’s conclusions. Based on its assessments, the Company concluded that there was no impairment of goodwill for any of its reporting units. Although no reporting units failed the annual impairment test, in management’s opinion, the goodwill balances of t he Sonoco Metal Packaging (“SMP”) Europe, Middle East and Africa (“EMEA”) and Global Paper Products Asia-Pacific (“APAC”) reporting units are at risk of impairment in the near term if the reporting unit’s operations do not perform in line with management’s expectations, or if there is a negative change in the long-term financial outlook for the reporting unit or in other factors such as the discount rate. In the case of SMP EMEA, the lower differential between the fair value and carrying value of the reporting unit is due to the acquisition of Titan Holdings I B.V. in December 2024, at which time the majority of assets and liabilities acquired were recorded at fair value. The total goodwill associated with the SMP EMEA and Global Paper Products APAC reporting units was $ 1,372,186 and $ 26,976 , respectively, at March 29, 2026. During the time subsequent to the annual evaluation, and at March 29, 2026, the Company considered whether any events and/or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management’s opinion that no such events and/or changes in circumstances have occurred. 19 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Other Intangible Assets A summary of other intangible assets as of March 29, 2026 and December 31, 2025 is as follows: March 29, 2026 December 31, 2025 Other Intangible Assets, gross: Patents $ 29,302 $ 29,403 Customer lists 2,855,747 2,895,345 Trade names 28,116 28,417 Proprietary technology 230,704 234,336 Other 2,064 2,054 Total Other Intangible Assets, gross $ 3,145,933 $ 3,189,555 Accumulated Amortization: Patents $ ( 19,373 ) $ ( 18,706 ) Customer lists ( 464,206 ) ( 431,704 ) Trade names ( 12,818 ) ( 12,488 ) Proprietary technology ( 47,637 ) ( 41,990 ) Other ( 1,205 ) ( 1,193 ) Total Accumulated Amortization ( 545,239 ) ( 506,081 ) Other Intangible Assets, net $ 2,600,694 $ 2,683,474 Other intangible assets are amortized using the straight-line method over their respective useful lives when management has determined that the straight-line method approximates the pattern of consumption of the respective intangible assets or in relation to the asset’s specific pattern of consumption if management has determined that the straight-line method does not provide a fair approximation of the consumption of benefits. These lives generally range from three to twenty years . The Company has no intangible assets with indefinite lives. Aggregate amortization expense was $ 44,320 and $ 41,961 for the three-month periods ended March 29, 2026 and March 30, 2025, respectively. Amortization expense on other intangible assets is expected to total approximately $ 177,300 in 2026, $ 177,200 in 2027, $ 177,100 in 2028, $ 176,200 in 2029 and $ 173,900 in 2030. Note 9: Supply Chain Financing The Company facilitates voluntary supply chain financing programs (the “SCF Programs”) to provide certain of its suppliers with the opportunity to sell receivables due from the Company to the participating financial institutions in the programs. Such sales are conducted at the sole discretion of both the suppliers and the financial institutions on a nonrecourse basis at a rate that leverages the Company’s credit rating and thus might be more beneficial to the supplier. No guarantees are provided by the Company or any of its subsidiaries under the SCF Programs. The Company’s responsibility under the agreements is limited to making payment to the financial institutions for confirmed invoices based on the terms originally negotiated with its suppliers. Both the Company and the financial institutions have the right to terminate the SCF Programs by providing 30 days prior written notice to the other party. The Company does not enter into any agreements with suppliers regarding their participation in the SCF Programs. The following table sets forth the balance sheet location and values of the obligations under the Company’s SCF Programs at March 29, 2026 and December 31, 2025: Balance Sheet Line Item March 29, 2026 December 31, 2025 Payable to suppliers (a) $ 42,768 $ 53,122 20 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) (a) The payment of these obligations is included in net cash used by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows. Note 10: Debt Details of the Company’s debt at March 29, 2026 and December 31, 2025 are as follows: March 29, 2026 December 31, 2025 Commercial paper $ 344,000 $ — Syndicated term loan due August 2028 498,476 498,320 4.450 % notes due September 2026 499,202 498,749 2.250 % notes due February 2027 299,567 299,443 4.600 % notes due September 2029 595,977 595,694 3.125 % notes due May 2030 597,666 597,528 2.850 % notes due February 2032 496,950 496,824 5.000 % notes due September 2034 691,111 690,857 5.750 % notes due November 2040 536,322 536,314 Other foreign denominated debt 58,980 40,016 Finance lease obligations 53,135 53,542 Other debt 18,126 19,638 Total debt 4,689,512 4,326,925 Less: Notes payable and current portion of long-term debt ( 1,202,570 ) ( 537,952 ) Long-term debt $ 3,486,942 $ 3,788,973 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 $ 300,000 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. The Company maintains a revolving credit facility with total commitments of $ 1,250,000 and a maturity date of May 3, 2029. The Company’s $ 1,250,000 commercial paper program is supported by the revolving credit facility. At March 29, 2026 , the Company had $ 344,000 in commercial paper balances outstanding; accordingly, the committed capacity available for drawdown under its revolving credit facility at March 29, 2026 was $ 906,000 . 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 March 29, 2026, the Company’s interest coverage and net worth were substantially above the minimum levels required under these covenants. 21 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 11: Financial Instruments and Derivatives The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value. March 29, 2026 December 31, 2025 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, net of current portion $ 3,486,942 $ 3,376,489 $ 3,788,973 $ 3,728,480 The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement. Cash Flow Hedges At March 29, 2026 and December 31, 2025, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, w hich have maturities ranging from March 2026 to September 2027, qualify as cash flow hedges under GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Commodity Cash Flow Hedges Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as cash flow hedges. At March 29, 2026, there were no designated natural gas swaps covering anticipated natural gas usage in 2026. The Company has designated swap contracts covering 5,861 metric tons of aluminum as cash flow hedges. These contracts represented approximately 34.4 % and 3.0 % of anticipated aluminum usage for 2026 and 2027, respectively. The fair value of the Company’s commodity cash flow hedges netted to a gain position of $ 3,310 and a gain position of $ 1,683 at March 29, 2026 and December 31, 2025, respectively. The amount of the gain included in accumulated other comprehensive income at March 29, 2026 expected to be reclassified to the income statement during the next twelve months is $ 3,163 . The Company also has certain natural gas and aluminum derivatives contracts that are not designated as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges. 22 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases expected to occur from March 2026 to December 2027. The net positions of these contracts at March 29, 2026 were as follows (in thousands): Currency Action Quantity USD Contracts Colombian peso purchase 9,603,957 Mexican peso purchase 156,750 Danish krone purchase 105,135 Polish zloty purchase 95,285 Turkish lira purchase 75,052 Euro purchase 3,152 Canadian dollar purchase 14,549 Swedish krona sell ( 4,021 ) British pound sell ( 7,638 ) USD purchase 10,281 Euro Contracts Hungarian forint purchase 7,216,102 Polish zloty sell ( 20,461 ) British pound purchase 3,784 Swiss franc purchase 2,058 Euro purchase 8,602 USD purchase 6,849 The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a loss position of $( 255 ) and a gain position of $ 49 at March 29, 2026 and December 31, 2025, respectively. Losses of $( 282 ) are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months. Net Investment Hedge In April 2024 the Company entered into cross-currency swap agreements with a total notional amount of $ 500,000 , 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 $ 1,500,000 , including $ 500,000 maturing on September 1, 2026, $ 500,000 maturing on September 1, 2029, and $ 500,000 maturing on May 1, 2030. The swaps 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. On June 30, 2025, the Company entered into additional cross-currency swap agreements with a total notional amount of $ 285,000 , maturing on February 1, 2027. The swaps 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. 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 (loss)/income” until the net investment is sold, diluted, or liquidated. Net interest income on the cross-currency swaps totaling $ 10,843 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 23 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 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 $( 157,150 ) and $( 207,203 ) at March 29, 2026 and December 31, 2025, respectively. A foreign currency translation loss of $( 117,077 ) (net of income taxes of $ 40,073 ) and a loss of $( 154,366 ) (net of income taxes of $ 52,837 ) were reported as components of “Accumulated other comprehensive (loss)/income” within “Foreign currency items” at March 29, 2026 and December 31, 2025, respectively. Non-Designated Derivatives The Company routinely enters into other derivative contracts which are not designated for hedge accounting treatment under ASC 815, “Derivatives and Hedging.” As such, changes in fair value of these non-designated derivatives are recorded directly to income and expense in the periods that they occur. Cash flows from derivative financial instruments not designated as hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Foreign Currency Hedges The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. The net currency positions of these non-designated contracts at March 29, 2026, were as follows (in thousands): Currency Action Quantity USD Contracts Colombian peso purchase 70,916,285 Indonesian rupiah purchase 16,897,640 Mexican peso purchase 246,549 Canadian dollar purchase 3,695 Euro Contracts Hungarian forint purchase 416,146 USD sell ( 1,413 ) British pound sell ( 174 ) Polish zloty sell ( 32,609 ) Thai baht sell ( 524,769 ) Commodity Hedges The Company has entered into non-designated derivative contracts to manage the cost of a nticipated purchases of natural gas and aluminum. At March 29, 2026, these contracts consisted of natural gas swaps covering approximately 3.1 million metric million British thermal units (“MMBTUs”) and represented approximately 57.5 % of anticipated usage in North America for the remainder of 2026. In addition, the Company held aluminum swap contracts covering 333 metric tons of aluminum. 24 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The fair value of the Company’s non-designated deriva tives position was a loss of $( 761 ) and $( 1,113 ) at March 29, 2026 and December 31, 2025, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at March 29, 2026 and December 31, 2025: Description Balance Sheet Location March 29, 2026 December 31, 2025 Derivatives designated as hedging instruments: Commodity Contracts Prepaid expenses $ 3,202 $ 1,508 Commodity Contracts Other Assets 147 175 Commodity Contracts Accrued expenses and other payables ( 39 ) — Foreign Exchange Contracts Prepaid expenses 2,216 1,131 Foreign Exchange Contracts Other Assets 27 33 Foreign Exchange Contracts Accrued expenses and other payables ( 2,498 ) ( 1,028 ) Foreign Exchange Contracts Other Liabilities — ( 87 ) Net investment hedge Prepaid expenses 20,687 19,358 Net investment hedge Accrued expenses and other payables ( 48,811 ) ( 58,594 ) Net investment hedge Other Liabilities ( 129,026 ) ( 167,967 ) Derivatives not designated as hedging instruments: Commodity Contracts Prepaid expenses 359 185 Commodity Contracts Other Assets 78 — Commodity Contracts Accrued expenses and other payables ( 1,541 ) ( 1,517 ) Commodity Contracts Other Liabilities ( 94 ) — Foreign Exchange Contracts Prepaid expenses 749 1,106 Foreign Exchange Contracts Accrued expenses and other payables ( 312 ) ( 887 ) While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements. 25 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended March 29, 2026 and March 30, 2025, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive (loss)/income to the carrying value of the capitalized expenditures: Description Amount of Gain or (Loss) Recognized in OCI on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income Derivatives in Cash Flow Hedging Relationships: Three-month period ended March 29, 2026 Foreign Exchange Contracts $ ( 264 ) Net sales $ ( 85 ) Cost of sales ( 188 ) Commodity Contracts 2,396 Cost of sales 770 Three-month period ended March 30, 2025 Foreign Exchange Contracts $ 3,251 Net sales $ 399 Cost of sales ( 41 ) Commodity Contracts ( 536 ) Cost of sales — Description Gain or (Loss) Recognized Location of Gain or (Loss) Recognized in Income Statement Derivatives not Designated as Hedging Instruments: Three-month period ended March 29, 2026 Commodity Contracts $ 1,304 Cost of sales Foreign Exchange Contracts 1,697 Selling, general and administrative Three-month period ended March 30, 2025 Commodity Contracts $ 3,337 Cost of sales Foreign Exchange Contracts 3,569 Selling, general and administrative Three-month period ended March 29, 2026 Three-month period ended March 30, 2025 Description Revenue Cost of sales Revenue Cost of sales Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income $ ( 85 ) $ 582 $ 399 $ ( 41 ) Gain or (loss) on cash flow hedging relationships: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net income $ ( 85 ) $ ( 188 ) $ 399 $ ( 41 ) Commodity contracts: Amount of gain reclassified from accumulated other comprehensive (loss)/income into net income $ — $ 770 $ — $ — ​ ​ 26 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 12: Fair Value Measurements Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 – Observable inputs such as quoted market prices in active markets; Level 2 – Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3 – Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets that are calculated at Net Asset Value per share (“NAV”) are not required to be categorized within the fair value hierarchy. The following table sets forth information regarding the Company’s financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description March 29, 2026 Assets measured at NAV Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 3,310 $ — $ — $ 3,310 $ — Foreign exchange contracts ( 255 ) — — ( 255 ) — Net investment hedge ( 157,150 ) — — ( 157,150 ) — Non-hedge derivatives, net: Commodity contracts ( 1,198 ) — — ( 1,198 ) — Foreign exchange contracts 437 — — 437 — Description December 31, 2025 Assets measured at NAV Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 1,683 $ — $ — $ 1,683 $ — Foreign exchange contracts 49 — — 49 — Net investment hedge ( 207,203 ) — — ( 207,203 ) — Non-hedge derivatives, net: Commodity contracts ( 1,332 ) — — ( 1,332 ) — Foreign exchange contracts 219 — — 219 — As discussed in Note 11 , the Company uses derivatives to mitigate the effect of commodity fluctuations, foreign currency fluctuations and, from time to time, interest rate movements. Fair value measurements for the Company’s derivatives are classified under Level 2 because such measurements are estimated based on observable inputs such as interest rates, yield curves, spot and future commodity prices and spot and future exchange rates. None of the Company’s financial assets or liabilities are measured at fair value using significant unobservable inputs. There were no transfers in or out of Level 1 or Level 2 fair value measurements during the three-month period ended March 29, 2026. The Company has an investment in the preferred stock of a nonaffiliated private company. This investment is accounted for under the measurement alternative of cost less impairment, adjusted for any qualifying observable price changes on a non-recurring basis. Observable price changes would consist of Lev el 2 inputs based on privately negotiated transactions with the nonaffiliated company. The total investment in p referred stock of $ 21,212 is included in “Other Assets” in the Company’s Condensed Consolidated Balance Sheet as of March 29, 2026. 27 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The Company measures certain non-financial assets and non-financial liabilities at fair value on a non-recurring basis. See Note 4 for a discussion of assets acquired and liabilities assumed in acquisitions and sold in dispositions, and Note 6 for a discussion of asset impairments associated with restructuring activities. The fair value of assets determined based on third-party appraisals and classified as Level 3 measurements due to the use of significant unobservable inputs was not material at March 29, 2026 or December 31, 2025. Note 13: Employee Benefit Plans Retirement Plans and Retiree Health and Life Insurance Plans The Company provides non-contributory defined benefit pension plans for certain of its employees in the United States, Mexico, Belgium, Germany, France, Turkey, Italy, Switzerland, Spain, and Ireland. The Company also sponsors contributory defined benefit pension plans covering certain of its employees in the United Kingdom, Canada and the Netherlands, and provides postretirement healthcare and life insurance benefits to a limited number of its retirees and their dependents in the United States and Canada, based on certain age and/or service eligibility requirements. The components of net periodic benefit cost include the following: Three Months Ended March 29, 2026 March 30, 2025 Retirement Plans Service cost $ 1,257 $ 1,196 Interest cost 5,053 5,133 Expected return on plan assets ( 3,646 ) ( 3,205 ) Amortization of prior service cost 184 188 Amortization of net actuarial loss 890 988 Net periodic benefit cost $ 3,738 $ 4,300 Retiree Health and Life Insurance Plans Service cost $ 29 $ 39 Interest cost 224 237 Expected return on plan assets ( 144 ) ( 100 ) Amortization of prior service cost 90 94 Amortization of net actuarial gain ( 155 ) ( 214 ) Net periodic benefit cost $ 44 $ 56 Contributions The Company made aggregate contributions of $ 4,829 and $ 4,223 to its defined benefit retirement and retiree health and life insurance plans during the three-month periods ended March 29, 2026 and March 30, 2025, respectively. The Company expects to make additional aggregate contributions of approximately $ 18,400 to its defined benefit retirement and retiree health and life insurance plans over the remainder of 2026. Note 14: Income Taxes The Company’s effective tax rates for the three-month periods ended March 29, 2026 and March 30, 2025 were 12.4 % and 30.9 %, respectively. The Company’s effective tax rates varied from the U.S. statutory rate due primarily to rate differences between U.S. and non-U.S. jurisdictions and the relative amounts earned in those jurisdictions, state income taxes, and discrete tax adjustments that were not consistent period over period, including the recording of a provision-to-return adjustment for a retroactive U.S. tax election. The Company and/or its subsidiaries file federal, state and local income tax returns in the United States and various foreign jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2019. 28 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The Company’s reserve for uncertain tax benefits increased by $ 1,108 from December 31, 2025 to March 29, 2026 due primarily to an increase in reserves related to existing tax positions and the Company’s reassessment of a prior-year tax matter. Although the Company’s estimate for the potential outcome for any uncertain tax issue is highly judgmental, management believes that any reasonably foreseeable outcomes related to these matters have been adequately provided for. However, future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. Additionally, the jurisdictions in which earnings or deductions are realized may differ from current estimates. As a result, the Company’s effective tax rate may fluctuate significantly on a quarterly basis. The Company has operations and pays taxes in many countries outside of the U.S. and taxes on those earnings are subject to varying rates. The Company is not dependent upon the favorable benefit of any one jurisdiction to an extent that the loss of such benefit would have a material effect on the Company’s overall effective tax rate. Note 15: Leases The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company’s lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842, “Leases.” Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years . The Company’s leases do not have any significant residual value guarantees or restrictive covenants. As the implicit rate in the Company’s leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at March 29, 2026 and December 31, 2025: Classification Balance Sheet Location March 29, 2026 December 31, 2025 Lease Assets Operating lease assets Right of Use Asset-Operating Leases $ 308,936 $ 307,450 Finance lease assets Other Assets 48,560 49,059 Total lease assets $ 357,496 $ 356,509 Lease Liabilities Current operating lease liabilities Accrued expenses and other payables $ 53,758 $ 53,978 Current finance lease liabilities Notes payable and current portion of long-term debt 12,034 11,617 Total current lease liabilities $ 65,792 $ 65,595 Noncurrent operating lease liabilities Noncurrent Operating Lease Liabilities $ 264,598 $ 263,192 Noncurrent finance lease liabilities Long-term Debt, Net of Current Portion 41,101 41,925 Total noncurrent lease liabilities $ 305,699 $ 305,117 Total lease liabilities $ 371,491 $ 370,712 29 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet for certain leases with rate or index-related terms result in variable expenses being incurred when paid during the lease term. The following table sets forth the components of the Company’s total lease cost for the three-month periods ended March 29, 2026 and March 30, 2025: Three Months Ended Lease Cost March 29, 2026 March 30, 2025 Operating lease cost (a) $ 15,144 $ 15,484 Finance lease cost: Amortization of lease asset (a) (b) 2,735 3,002 Interest on lease liabilities (c) 612 700 Variable lease cost (a) (d) 11,757 12,422 Impairment charges (e) — 633 Total lease cost $ 30,248 $ 32,241 (a) Production-related costs are included in “Cost of sales” and administrative costs are included in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Income. (b) Included in depreciation and amortization. (c) Included in “Interest expense” in the Condensed Consolidated Statements of Income. (d) Also includes short term lease costs, which are deemed immaterial . (e) Impairment charges are included in “Restructuring/Asset impairment charges, net” in the Company’s Condensed Consolidated Statements of Income. See Note 6 for additional information. The following table sets forth certain lease-related information for the three-month periods ended March 29, 2026 and March 30, 2025: Three Months Ended March 29, 2026 March 30, 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 14,350 $ 14,226 Operating cash flows used by finance leases 612 700 Financing cash flows used by finance leases 2,834 3,057 Noncash investing and financing activities: Leased assets obtained in exchange for new operating lease liabilities 9,776 11,011 Leased assets obtained in exchange for new finance lease liabilities 2,799 2,279 Modification to leased assets for increase in operating lease liabilities 6,005 16,626 Modification to leased assets for decrease in finance lease liabilities — ( 10,440 ) Termination reclasses to decrease operating lease assets 311 232 Termination reclasses to decrease operating lease liabilities 311 274 Termination reclasses to decrease finance lease assets 317 82 Termination reclasses to decrease finance lease liabilities 317 84 30 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Note 16: Revenue Recognition The Company records revenue when control is transferred to the customer, which is either upon shipment or over time in cases where the Company is entitled to payment with margin for products produced that are customer specific without alternative use. The Company recognizes over time revenue under the input method as goods are produced. Revenue that is recognized at a point in time is recognized when the customer obtains control of the goods. Customers obtain control either when goods are delivered to the customer facility, if the Company is responsible for arranging transportation, or when picked up by the customer’s designated carrier. The Company commonly enters into Master Supply Arrangements with customers to provide goods and/or services over specific time periods. Customers submit purchase orders with quantities and prices to create a contract for accounting purposes. Shipping and handling expenses are included in “Cost of sales,” and freight charged to customers is included in “Net sales” in the Company’s Condensed Consolidated Statements of Income. The Company has rebate agreements with certain customers. These rebates are recorded as reductions of revenue and are accrued using sales data and rebate percentages specific to each customer agreement. Accrued customer rebates are included in “Accrued expenses and other payables” in the Company’s Condensed Consolidated Balance Sheets. Payment terms under the Company’s sales arrangements are short term, generally no longer than 120 days. The Company does provide prompt payment discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of estimated revenue and are determinable within a short time period following the sale. The following table sets forth the effects of contract assets and liabilities from contracts with customers. Contract assets and liabilities are reported in “Other receivables” and “Accrued expenses and other payables,” respectively, in the Company’s Condensed Consolidated Balance Sheets. March 29, 2026 December 31, 2025 Contract Assets $ 86,675 $ 77,978 Contract Liabilities ( 41,259 ) ( 58,784 ) Significant changes in the contract assets and liabilities balances during the three-month period ended March 29, 2026 and the year ended December 31, 2025 were as follows: March 29, 2026 December 31, 2025 Contract Assets Contract Liabilities Contract Assets Contract Liabilities Beginning Balance $ 77,978 $ ( 58,784 ) $ 67,062 $ ( 60,024 ) Acquired/ sold as part of a business combination/ divestiture — — ( 53 ) ( 324 ) Revenue deferred or rebates accrued — ( 25,271 ) — ( 94,947 ) Recognized as revenue — 434 — 1,183 Rebates paid to customers — 42,362 — 95,328 Increases due to rights to consideration for customer specific goods produced, but not billed during the period 86,675 — 77,978 — Transferred to receivables from contract assets recognized at the beginning of the period and acquired as part of business combination ( 77,978 ) — ( 67,009 ) — Ending Balance $ 86,675 $ ( 41,259 ) $ 77,978 $ ( 58,784 ) 31 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Contract assets represent goods produced without alternative use for which the Company is entitled to payment with margin prior to shipment. Upon shipment, the Company is entitled to bill the customer. Therefore, amounts included in contract assets will be reduced with the recording of an account receivable as they represent an unconditional right to payment. Contract liabilities represent revenue deferred due to pricing mechanisms utilized by the Company in certain multi-year arrangements, volume rebates, and receipts of advance payments. For multi-year arrangements with pricing mechanisms, the Company will generally defer revenue during the first half of the arrangement and will release the deferral over the second half of the contract term. Contract assets and liabilities are generally short in duration given the nature of products produced by the Company. The following tables set forth information about revenue disaggregated by primary geographic regions for the three-month periods ended March 29, 2026 and March 30, 2025. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Company’s reportable segments are aligned by product nature as disclosed in Note 17 . As described in Note 1, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial Paper Packaging segment effective January 1, 2026. The Company no longer reports the results of any of its businesses in All Other. P rior year results for the Industrial Paper Packaging segment and the All Other group of businesses have been recast to conform to the new presentation. Three-month period ended March 29, 2026 Consumer Packaging Industrial Paper Packaging Total Primary Geographical Markets: United States $ 440,966 $ 365,097 $ 806,063 EMEA 597,584 100,490 698,074 Canada 2,564 20,136 22,700 APAC 28,750 34,723 63,473 Other 27,211 58,921 86,132 Total $ 1,097,075 $ 579,367 $ 1,676,442 Three-month period ended March 30, 2025 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 448,034 $ 377,165 $ 49,899 $ 875,098 EMEA 567,024 95,629 4,953 667,606 Canada 3,865 21,434 — 25,299 APAC 24,639 35,837 251 60,727 Other 23,031 57,467 — 80,498 Total $ 1,066,593 $ 587,532 $ 55,103 $ 1,709,228 Note 17: Segment Reporting The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging. The products produced and sold within the Consumer Packaging segment are generally used to package a variety of consumer products and consist primarily of round and shaped rigid paper, steel and plastic containers; and metal and peelable membrane ends, closures, and components. The primary products produced and sold within the Industrial Paper Packaging segment include paperboard tubes, cones, and cores; uncoated recycled paperboard; industrial and specialty plastics; and paper-based protective packaging. As described in Note 1, results for Industrial Plastics, previously included in the All Other group of businesses, are included in the Industrial segment effective January 1, 2026. The Company no longer reports the results of any of its businesses in All Other. P rior year results for the Industrial Paper Packaging segment and the All Other group of businesses have been recast to conform to the new presentation. 32 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM assesses segment performance and allocates resources to each segment by using each segment’s operating profit. The CODM uses operating profit for each segment in the annual budgeting and forecasting process and reviews segment operating profit quarterly when making decisions about allocating capital and operating resources to segments. Disaggregated assets by segment are not disclosed since segment assets are not regularly provided to the CODM. Segment operating profit viewed by the Company to evaluate segment performance does not include the following: restructuring/asset impairment charges; amortization of acquisition intangibles; gains/losses from the sale of businesses or other assets; acquisition, integration and divestiture-related costs; changes in last-in, first-out (“LIFO”) inventory reserves; derivative gains/losses; or certain other items, if any, the exclusion of which the Company’s management believes improves the comparability and analysis of the ongoing operating performance of the business. All other general corporate expenses have been allocated as operating costs to each of the Company’s reportable segments and the All Other group of businesses, except for costs related to discontinued operations. The following tables set forth financial information about each of the Company’s reportable segments: SEGMENT FINANCIAL INFORMATION Three-month period ended March 29, 2026 Consumer Packaging Industrial Paper Packaging Total Reportable Segments Sales from external customers $ 1,097,075 $ 579,367 $ 1,676,442 Intersegment sales (1) 2,986 28,157 31,143 1,100,061 607,524 1,707,585 Reconciliation of sales Elimination of intersegment sales ( 31,143 ) Total consolidated sales 1,676,442 Less: (3) Cost of sales (4) ( 889,090 ) ( 437,341 ) Other segment items (5) ( 85,322 ) ( 100,937 ) Segment operating profit $ 125,649 $ 69,246 $ 194,895 Other segment disclosures: Equity in (loss)/earnings of affiliates, net of tax $ ( 2 ) $ 692 Depreciation and amortization (6) 50,950 29,759 33 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) 34 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) Three-month period ended March 30, 2025 Consumer Packaging Industrial Paper Packaging Total Reportable Segments Sales from external customers $ 1,066,593 $ 587,532 $ 1,654,125 Intersegment sales (1) 2,769 28,293 31,062 1,069,362 615,825 1,685,187 Reconciliation of sales Other sales (2) 55,193 Elimination of intersegment sales ( 31,152 ) Total consolidated sales 1,709,228 Less: (3) Cost of sales (4) ( 853,732 ) ( 443,078 ) Other segment items (5) ( 74,859 ) ( 96,416 ) Segment operating profit $ 140,771 $ 76,331 $ 217,102 Other segment disclosures: Equity in (loss)/earnings of affiliates, net of tax $ ( 51 ) $ 1,972 Depreciation and amortization (6) 48,955 29,157 (1) Intersegment sales are recorded at a market-related transfer price. (2) Other sales represents sales attributable to All Other, which includes the group of businesses that fall below the quantitative threshold for reportable segments. In 2025, these include only ThermoSafe, which the Company sold in November 2025. Accordingly, no businesses are included in All Other in 2026. (3) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. (4) Cost of sales of reportable segments excludes certain costs, primarily changes in LIFO inventory reserves, net gains or losses from derivatives, and acquisition, integration and divestiture-related costs. (5) Other segment items consists of: Consumer Packaging: Labor and benefits, consulting and professional services, travel, communication, facilities and supplies. Industrial Paper Packaging: Labor and benefits, consulting and professional services, travel, communication, facilities and supplies. (6) Represents significant segment expenses that are regularly provided to the CODM and are included in cost of sales and other segment items within segment operating profit. 35 SONOCO PRODUCTS COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars and shares in thousands except per share data) (unaudited) The following table sets forth the reconciliation of segment operating profit to “Income from continuing operations before income taxes” for the periods presented. Three Months Ended March 29, 2026 March 30, 2025 Segment operating profit $ 194,895 $ 217,102 Other operating profits (1) — 6,719 Unallocated amounts: Restructuring/Asset impairment charges, net ( 15,133 ) ( 13,581 ) Amortization of acquisition intangibles ( 44,320 ) ( 41,961 ) Loss on divestiture of business ( 1,865 ) ( 4,183 ) Acquisition, integration and divestiture-related costs ( 6,338 ) ( 27,266 ) Changes in LIFO inventory reserves ( 4,367 ) ( 562 ) Derivative gains 87 2,949 Other corporate income/(costs), net (2) 5,929 ( 11,098 ) Other operating charges, net (3) ( 1,796 ) ( 1,259 ) Other expense, net (4) ( 12,308 ) ( 6,517 ) Non-operating pension costs ( 2,496 ) ( 3,121 ) Interest expense ( 44,494 ) ( 56,027 ) Interest income 8,651 7,348 Income from continuing operations before income taxes $ 76,445 $ 68,543 (1) In 2025, operating profit from segments below the quantitative threshold are attributable to ThermoSafe, part of the All Other group of businesses. (2) In 2026, other corporate income/(costs), net represents income earned under a transition services agreement with Toppan. In 2025, other corporate income/(costs), net represents recurring operating expenses previously allocated to TFP that will remain with Sonoco subsequent to the divestiture. (3) Primarily consists of highly inflationary accounting in Turkey and other miscellaneous charges in both 2026 and 2025. (4) In 2026 and 2025, these expenses relate to charges from third-party financial institutions related to the Company’s 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. 2026 also reflects non-operating charges related to certain pre-acquisition liabilities relevant to the SMP EMEA business. 36 SONOCO PRODUCTS COMPANY The following table sets forth the reconciliation of other segment disclosures to consolidated totals for the periods presented. Three Months Ended March 29, 2026 March 30, 2025 Equity in earnings of affiliates, net of tax Consumer Packaging $ ( 2 ) $ ( 51 ) Industrial Paper Packaging 692 1,972 Reportable Segment Total 690 1,921 Adjustments — — Consolidated Total $ 690 $ 1,921 Depreciation and amortization Consumer Packaging $ 50,950 $ 48,955 Industrial Paper Packaging 29,759 29,157 Reportable Segment Total 80,709 78,112 Other (1) 44,320 43,691 Consolidated Total $ 125,029 $ 121,803 (1) Other consists of amortization of acquisition intangibles for Sonoco during the three-month periods ended March 29, 2026 and March 30, 2025. Other also includes depreciation for the All Other group of businesses during the three-month period ended March 30, 2025. Note 18: Commitments and Contingencies In accordance with the requirements of ASC 450, “Contingencies,” the Company records accruals for estimated losses at the time information becomes available indicating that losses are probable and that the amounts are reasonably estimable. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings from a variety of sources. Some of these exposures, as discussed below, have the potential to be material. Environmental Matters The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. The Company has been named as a potentially responsible party at several environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shared with such other parties, and, in most cases, the Company’s share, if any, cannot be reasonably estimated at the current time. However, the Company does not believe that the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s fi nancial statements. At March 29, 2026 and December 31, 2025, the accruals for these sites totaled $ 1,738 and $ 1,779 , respectively , and are included in “Accrued expenses and other payables” on the Company’s Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company is subject to other various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters could differ from management’s expectations, the Company does not believe the resolution of these matters has a reasonable possibility of having a material adverse effect on the Company’s financial statements. 37 SONOCO PRODUCTS COMPANY