Sonoco Products Company reported second-quarter net sales of $1.9 billion, down 1.3% year on year, as strength in paper-based packaging offset weaker demand for metal aerosol cans.

The Hartsville, South Carolina-based packaging group said Consumer Packaging segment volumes fell 1.8% in the quarter, “driven primarily by lower metal aerosol cans and adhesive and sealant tube demand,” according to President and CEO Howard Coker. Consumer segment operating profit slipped 5.4% to $152 million, though it rose 22% sequentially from the first quarter.

The picture was brighter elsewhere in the consumer portfolio. Paper can volumes in EMEA and APAC rose 9% on rising snack demand, and Consumer net sales still grew 1.2% to $1.24 billion on pricing actions taken to recover inflation and tariff-related costs, plus favourable foreign exchange.

Sonoco’s Industrial Paper Packaging segment beat expectations, with net sales up 4.2% to $643 million and operating profit up 4% to $89 million. North American uncoated recycled paperboard trade tons grew 6%, lifting mill utilisation to 95%.

Reported GAAP net income fell to $105 million, or $1.05 per diluted share, from $493 million a year earlier — a comparison distorted by a $425 million gain on the 2025 sale of the Thermoformed and Flexibles Packaging and global Trident business. On an adjusted basis, net income rose 10.6% to $151 million, with adjusted EPS of $1.51. Adjusted EBITDA was broadly flat at $324 million.

Cash generation was a bright spot. CFO Paul Joachimczyk pointed to record second-quarter operating cash flow of $301 million and free cash flow of $237 million, up 56% and 139% respectively. Year-to-date operating cash flow remained negative at $(67) million, reflecting roughly $103 million in one-time taxes on 2025 divestiture gains and seasonal working capital demands in the metal packaging business.

Total debt stood at $4.5 billion at 28 June, with net debt of $4.3 billion — figures the company again attributed largely to seasonal metal packaging working capital.

Looking ahead, Coker said customer promotions and new product launches are expected to lift both paper and metal can volumes heading into the seasonal pack season across the US and EMEA. Growth projections for paper cans in Europe, Asia and South America have the company weighing further capacity expansion.

Sonoco reaffirmed full-year guidance of $7.25–7.75 billion in net sales, adjusted EPS of $5.80–6.20 — still expected toward the low end — and adjusted EBITDA of $1.25–1.35 billion. Joachimczyk said pricing actions and contract resets should improve margin performance, keeping the company on track for its target of 200 basis points of margin improvement by the end of 2028.