v3.26.1
Segment Reporting
 6 Months Ended
Jun. 28, 2026
Segment Reporting [Abstract]  
Segment Reporting 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. 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.
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 June 28, 2026Consumer PackagingIndustrial Paper PackagingTotal Reportable Segments
Sales from external customers$1,241,839 $643,646 $1,885,485 
Intersegment sales(1)
2,881 31,362 34,243 
1,244,720 675,008 1,919,728 
Reconciliation of sales
Elimination of intersegment sales(34,243)
Total consolidated sales1,885,485 
Less:(3)
Cost of sales(4)
(1,007,245)(484,936)
Other segment items(5)
(85,770)(100,693)
Segment operating profit$151,705 $89,379 $241,084 
Other segment disclosures:
Equity in earnings of affiliates, net of tax$276 $1,987 
Depreciation and amortization(6)
54,675 30,851 
Three-month period ended June 29, 2025Consumer PackagingIndustrial Paper PackagingTotal Reportable Segments
Sales from external customers$1,227,033 $617,661 $1,844,694 
Intersegment sales(1)
2,548 27,645 30,193 
1,229,581 645,306 1,874,887 
Reconciliation of sales
Other sales(2)
65,754 
Elimination of intersegment sales(30,200)
Total consolidated sales1,910,441 
Less:(3)
Cost of sales(4)
(989,484)(464,247)
Other segment items(5)
(79,744)(95,125)
Segment operating profit$160,353 $85,934 $246,287 
Other segment disclosures:
Equity in earnings of affiliates, net of tax$170 $2,100 
Depreciation and amortization(6)
52,801 30,711 
Six-month period ended June 28, 2026Consumer PackagingIndustrial Paper PackagingTotal Reportable Segments
Sales from external customers$2,338,914 $1,223,013 $3,561,927 
Intersegment sales(1)
5,867 59,519 65,386 
2,344,781 1,282,532 3,627,313 
Reconciliation of sales
Elimination of intersegment sales(65,386)
Total consolidated sales3,561,927 
Less:(3)
Cost of sales(4)
(1,896,335)(922,277)
Other segment items(5)
(171,092)(201,630)
Segment operating profit$277,354 $158,625 $435,979 
Other segment disclosures:
Equity in earnings of affiliates, net of tax$274 $2,679 
Depreciation and amortization(6)
105,625 60,610 
Six-month period ended June 29, 2025Consumer PackagingIndustrial Paper PackagingTotal Reportable Segments
Sales from external customers$2,293,626 $1,205,193 $3,498,819 
Intersegment sales(1)
5,317 55,938 61,255 
2,298,943 1,261,131 3,560,074 
Reconciliation of sales
Other sales(2)
120,947 
Elimination of intersegment sales(61,352)
Total consolidated sales3,619,669 
Less:(3)
Cost of sales(4)
(1,843,216)(907,325)
Other segment items(5)
(154,603)(191,541)
Segment operating profit$301,124 $162,265 $463,389 
Other segment disclosures:
Equity in earnings of affiliates, net of tax$119 $4,072 
Depreciation and amortization(6)
101,756 59,868 

(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.
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 EndedSix Months Ended
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Segment operating profit$241,084 $246,287 $435,979 $463,389 
Other operating profits(1)
— 8,406 — 15,125 
Unallocated amounts:
Restructuring/Asset impairment charges, net
(1,933)(9,752)(17,066)(23,333)
Amortization of acquisition intangibles(45,570)(44,193)(89,890)(86,154)
Gain/(Loss) on divestiture of business2,640 (2,083)775 (6,266)
Acquisition, integration and divestiture-related costs(2,083)(11,161)(8,421)(38,427)
Changes in LIFO inventory reserves(1,154)(1,193)(5,521)(1,755)
Derivative (losses)/gains(254)(2,154)(167)795 
Other corporate income/(costs), net(2)
1,338 (7,755)7,267 (18,853)
Other operating charges, net(3)
(1,231)(735)(3,027)(1,994)
Other expense, net(4)
(6,191)(6,559)(18,499)(13,076)
Non-operating pension costs(2,920)(2,982)(5,416)(6,103)
Interest expense(45,478)(64,367)(89,972)(120,394)
Interest income4,064 4,122 12,715 11,470 
Income from continuing operations before income taxes$142,312 $105,881 $218,757 $174,424 
(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)
Consists of charges related to 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.
The following table sets forth the reconciliation of other segment disclosures to consolidated totals for the periods presented.
Three Months EndedSix Months Ended
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Equity in earnings of affiliates, net of tax
Consumer Packaging$276 $170 $274 $119 
Industrial Paper Packaging1,987 2,100 2,679 4,072 
Reportable Segment Total2,263 2,270 2,953 4,191 
Adjustments— — — — 
Consolidated Total$2,263 $2,270 $2,953 $4,191 
Depreciation and amortization
Consumer Packaging$54,675 $52,801 $105,625 $101,756 
Industrial Paper Packaging30,851 30,711 60,610 59,868 
Reportable Segment Total85,526 83,512 166,235 161,624 
Other(1)
45,570 45,963 89,890 89,654 
Consolidated Total$131,096 $129,475 $256,125 $251,278 
(1)
Other consists of amortization of acquisition intangibles for Sonoco during the three- and six-month periods ended June 28, 2026 and June 29, 2025. Other also includes depreciation for the All Other group of businesses during the three- and six-month periods ended June 29, 2025.