SON US Russell 1000 Earnings call
Sonoco (SON) · Q2 2026 results and valuation
Share price: $49.60 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 23 Jul 2026 and 22 Apr 2026
Net income up 55.2% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+55.2%
Net income vs Q1 2026
Net income 104.9M vs 67.6M
Revenue +12.5%
Against the same quarter last year (Q2 2025) it is −78.7%, so the move on last quarter looks seasonal or timing-related rather than a trend.
Why Net income rose mainly due to productivity gains and lower net interest expense from debt reduction actions.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out Nothing unusual flagged this period.
Valuation
Is Sonoco undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 8.7% growth a year (3-year revenue growth), the model's fair value is $29.87 a share — the stock trades 66% above it. Today's price assumes 11.8% growth a year.
Current price
$49.60
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+11.8% for 10 yrs
Fair value / share
$29.87
Buy below
$22.40
Price vs fair value
Overvalued 66%
Price vs buy-below price
Overvalued 121%
Read between the lines
-
Figure
[Audio Gap] Will go through the financial details, so I'll concentrate my comments on the solid operating performance of Sonoco's industrial and consumer segments…
-
Fading
The company reported earnings growth from strong cash flow and continued benefits from its profitability performance plan, contributing to measurable financial improvement.
Source quote
“Earnings growth generated strong cash flow”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We delivered earnings growth generated strong cash flow, maintain margins and continue to realize benefits from our profitability performance plan.”
“We generated strong cash flow, maintained our EBITDA margins, advanced our profitability performance plans and delivered year-over-year EPS growth.”
“It's just when we get to these type of operating rates in order to be as efficient as we can, it makes better sense for us to set up on...”
Full figures
USD · ROIC.AI fundamentals (NYSE:SON, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-29 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.89B | 1.68B | +12.5% | 1.91B | −1.3% |
| Gross profit | 392.4M | 345.6M | +13.5% | 406.3M | −3.4% |
| Operating income | 192.1M | 127.1M | +51.2% | 175.7M | +9.4% |
| Net income | 104.9M | 67.6M | +55.2% | 493.2M | −78.7% |
| EPS | 1.06 | 0.68 | +56.0% | 4.96 | −78.6% |
| P/E today 4.7 | — | 5.2 | — | 7.8 | — |
Topics
Most discussed now
- Driving industrial growth with strong results from Sonoco's North American URB mills as trade tons were up 6.4%, which boosted...
- Most importantly, these results demonstrate that the strategic actions underway across Sunoco are translating into measurable financial…
- This capacity addition is vitally needed to address the fast-growing wire and cable industry's demand and building out artificial…
- Sonoco is being conservative about this new market, but it thinks there is additional growth potential, but it will need further...
- To market leadership in URB, Sonoco also is the North American market leader in the production of nailed...
Faded since Q1 2026
- Fading During its February Investor Day, Sonoco set up a framework for its focused strategy over the next 3 years, which...
- Fading Sonoco is seeing strengthening in those markets as mills are getting closer back to the 90% effective rates, run rates that...
- Fading Low single digits
- Fading This performance was primarily driven by strong productivity savings, favorable price/cost environment and a successful start to Sonoco's…
Latest announcements
Official filings, newest first.
- Material agreement; New financial obligation · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Regulation FD disclosure · SEC 8-K