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SON · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Sonoco Products Company (SON) stock moving?
Sonoco's Q3 2026 report on October 21 was weak: net sales fell 4.2% to $2.0B, adjusted EPS dropped 13% to $1.67, adjusted EBITDA fell 9% to $352M, and an $829M non-cash goodwill impairment produced a GAAP net loss of $(732)M. Nine-month operating cash flow was $218M after about $103M in one-time taxes. The stock dropped to a 30-day low of $46.16 on heavy volume of 3.57M on Oct 22, then recovered. The Nov 4 rally to $51.08 on 1.99M shares (about +5.7%) faded, and the last close was $49.79 on about 1.25M shares, so volume has returned to a quieter baseline. The CEO transition announced Nov 6 (8-K) and reported Nov 9 is orderly, since Coker retires at year-end and an internal executive, Ernest Haynes, takes over, but it also adds leadership change while earnings are under pressure. The $40M Richmond mill expansion, adding about 9,000 tons of capacity, and the $500M term loan amendment signal investment and liquidity, though the expansion is small relative to the impairment and the debt raises leverage questions. Overall, the evidence is mixed to slightly negative: earnings momentum and the impairment weigh on the outlook, while the price has held its range and shows no clear directional confirmation.
News behind the analysis
- Sonoco Announces CEO Succession PlanSonoco announced that CEO Howard Coker will retire and Ernest Haynes will succeed him, effective January 2027 per this source. The 8-K gives the effective date as December 31, 2026.
- Sonoco Products Appoints Ernest Haynes As Director, President and CEO, Effective December 31; Replaces R. Howard CokerThe board appointed Ernest Haynes, currently President of Global Consumer Packaging, as President, CEO and director effective December 31, 2026, replacing Coker.
- Form 8-K: Chief Executive Officer Transition (Item 5.02)Coker notified the company on November 6, 2026 of his retirement effective December 31, 2026. Haynes, age 53 and with the company since 1997, was appointed to succeed him.
- Sonoco to Modernize and Expand URB Production at Richmond, VA MillSonoco plans to modernize and expand uncoated recycled paperboard production at its Richmond, Virginia mill.
- Sonoco Announces $40M Two-Year Investment To Expand Richmond Paperboard Mill, Adding ~9,000 Tons Of Annual CapacityThe $40 million, two-year project is expected to add about 9,000 tons of annual paperboard capacity at the Richmond mill.
- Sonoco Reports Third Quarter 2026 ResultsQ3 net sales were $2.0B (down 4.2%) and adjusted EPS was $1.67 versus $1.92, while GAAP net loss was $(732)M after an $829M goodwill impairment. Adjusted EBITDA fell 9.0% to $352M.
- Form 8-K: Material Definitive Agreement (Credit Agreement First Amendment)On September 25, 2026 Sonoco amended its credit agreement, adding a $400M Tranche A term loan (due 2029) and a $400M delayed-draw Tranche B term loan (due 2031). The company borrowed $500M at closing.
About Sonoco Products Company
Sonoco is a packaging company founded in 1899 and based in Hartsville, South Carolina. In recent years it has sold off its thermoformed/flexibles and ThermoSafe businesses to concentrate on metal and paper packaging, and it has a long record of paying dividends.
How it makes money
Sonoco sells packaging to other businesses. Its largest segment is Consumer Packaging, about two-thirds of sales, which includes metal food cans, aerosol cans and paper composite cans for food and household brands. The rest comes from Industrial Paper Packaging: paper tubes, cores and recycled paperboard used by industrial customers. Annual sales are expected to be roughly $7.2–7.4 billion in 2026. In Q3 2026 it reported a large net loss of about $730 million, mainly from one-time charges, while adjusted earnings stayed positive.
What usually moves SON
- Food and consumer packaged-goods demand
- Costs of recycled fiber (old corrugated cardboard, or OCC), steel and freight
- Pricing relative to input costs
- Debt reduction and cost-cutting progress
- Portfolio sales, impairment charges and dividend sustainability