Financial Analysis

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. Spartanburg In connection with its acquisition of Tegrant in November 2011, the Company identified potential environmental contamination at a site in Spartanburg, South Carolina. At December 31, 2024, the Companys accrual for environmental contingencies related to the Spartanburg site totaled $5,096 and was reflected in Current liabilities of discontinued operations on the Companys Consolidated Balance Sheet at December 31, 2024 . The Spartanburg site and related environmental liabilities were part of the sale of TFP to Toppan, which was completed on April 1, 2025. Other environmental matters The Company has been named as a potentially responsible party at several other environmentally contaminated sites. All of the sites are also the responsibility of other parties. The potential remediation liabilities are shar …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Details of the Companys debt at December 31 were as follows: 2025 2024 364-Day term loan due December 2025 $ $ 1,493,568 Term loan due December 2026 698,167 Syndicated term loan due August 2028 498,320 497,674 1.80% notes due February 2025 399,933 4.45% notes due September 2026 498,749 496,869 2.25% notes due February 2027 299,443 298,930 4.60% notes due September 2029 595,694 594,519 3.125% notes due May 2030 597,528 596,958 2.85% notes due February 2032 496,824 496,302 5.00% notes due September 2034 690,857 689,802 5.75% notes due November 2040 536,314 536,282 Other foreign denominated debt, average rate of 5.5% in 2025 and 6.0% in 2024 40,016 155,048 Finance lease obligations 53,542 67,628 Other debt 19,638 18,341 Total debt $ 4,326,925 $ 7,040,021 Less: Notes payable and current portion of long-term debt (537,952) (2,054,525) Long-term debt $ 3,788,973 $ 4,985,496 On February 3, 2025, the Company repaid the $400,000 aggregate principal amount of its 1.80% notes upon their maturity using proceeds from the issuance of commercial paper. On September 16, 2024, the Company entered into a credit agreement with the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent which provides the Company with the ability to borrow up to $1,500,000 on an unsecured basis (the 364 -Day Term Loan Facility) to finance a portion of the cash consideration for the Companys acquisition of Eviosys. The Company drew down the entire 364 -Day Term Loan Facility on December …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables set forth information about revenue disaggregated by primary geographic regions for the years ende d December 31, 2025, 2024 and 2023. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Companys reportable segments are aligned by product nature as disclosed in Note 20. Year Ended December 31, 2025 Consumer Packaging Industrial Paper Packaging All Other Total Primary geographical markets: United States $ 1,864,861 $ 1,464,574 $ 285,486 $ 3,614,921 EMEA 2,789,400 361,878 56,160 3,207,438 Canada 18,539 85,875 104,414 APAC 100,482 148,012 1,065 249,559 Other 101,009 238,894 2,518 342,421 Total $ 4,874,291 $ 2,299,233 $ 345,229 $ 7,518,753 Year Ended December 31, 2024 Consumer Packaging Industrial Paper Packaging All Other Total Primary geographical markets: United States $ 1,785,857 $ 1,431,232 $ 352,717 $ 3,569,806 EMEA 524,699 371,896 58,925 955,520 Canada 17,486 95,863 113,349 APAC 96,154 213,127 1,771 311,052 Other 107,656 237,370 10,612 355,638 Total $ 2,531,852 $ 2,349,488 $ 424,025 $ 5,305,365 Year Ended December 31, 2023 Consumer Packaging Industrial Paper Packaging All Other Total Primary geographical markets: United States $ 1,817,268 $ 1,389,492 $ 494,112 $ 3,700,872 EMEA 431,189 389,261 64,936 885,386 Canada 16,076 100,095 116,171 APAC 94,136 233,446 1,812 329,394 Other 112,379 261,819 35,405 409,603 Total $ 2,471,048 $ 2,374,113 $ 596,265 $ 5,441,426 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Share-based compensation plans The Company provides share-based compensation to certain employees and non-employee directors in the form of RSUs, PCSUs, and other share-based awards. Beginning in 2024, share-based awards were issued pursuant to the Sonoco Products Company 2024 Omnibus Incentive Plan (the 2024 Plan), which became effective upon approval by the shareholders on April 17, 2024. Awards issued from 2019 through 2023 were issued pursuant to the Sonoco Products Company 2019 Omnibus Incentive Plan (the 2019 Plan). As of the April 17, 2024 effective date, the 2024 Plan superseded the 2019 Plan and became the only plan under which equity-based compensation may be awarded to employees and non-employee directors. However, any awards under any of the prior plans that were outstanding on the effective date of the 2024 Plan remain subject to the terms and conditions, and continue to be governed, by such prior plans. Awards issued between January 1 and April 16, 2024 were effectively issued under the 2024 Plan when such awards were transferred over to be applied against the 2024 Plans reserve. Share reserve reductions for restricted and performance-based stock awards and stock appreciation rights originally granted under the 2019 Plan were weighted equally on a one-for-one basis in accordance with the shareholder-approved conversion formula included within the 2024 Plan. Share awards granted under all previous plans which are forfeited, expire or are canceled without delivery …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 (NAV) per share are not required to be categorized within the fair value hierarchy. The following tables set forth information regarding the Companys financial assets and financial liabilities that are measured at fair value on a recurring basis: Description December 31, 2025 Assets measured at NAV (f) 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 Postretirement benefit plan assets: Common Collective Trust (a) 13,139 13,139 Mutual funds …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and other intangible assets Goodwill Changes in the carrying amount of goodwill by segment for the year ended December 31, 2025, are as follows: Consumer Packaging Industrial Paper Packaging All Other Total Balance as of January 1, 2025 $ 1,807,971 $ 486,636 $ 231,050 $ 2,525,657 Divestitures (2,043) (173,250) (175,293) Measurement period adjustments (27,399) (27,399) Foreign currency translation 167,419 23,783 (2,556) 188,646 Balance as of December 31, 2025 $ 1,947,991 $ 508,376 $ 55,244 $ 2,511,611 Goodwill activity reflected under the caption Measurement period adjustments relates to the December 2024 acquisition of Eviosys. Goodwill activity reflected under the caption Divestitures relates to the November 2025 sale of the ThermoSafe business, part of the All Other group of businesses, and the April 2025 sale of a small recycling business in Asheville, North Carolina, part of the Industrial Paper Packaging segment. See Note 4 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 Companys assessments reflected a number of significant management assumptions and est …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income taxes The provision for taxes on income for the years ended December 31 consists of the following: 2025 2024 2023 Pretax income Domestic $ 529,172 $ (35,733) $ 280,916 Foreign 235,929 99,219 208,111 Total pretax income $ 765,101 $ 63,486 $ 489,027 Current Federal $ 59,956 $ 3,693 $ 54,319 State 10,732 1,916 11,282 Foreign 97,293 57,034 63,617 Total current $ 167,981 $ 62,643 $ 129,218 Deferred Federal $ 30,415 $ (34,828) $ (3,307) State 14,220 (9,837) (1,646) Foreign (29,030) (12,469) (4,535) Total deferred $ 15,605 $ (57,134) $ (9,488) Total taxes $ 183,586 $ 5,509 $ 119,730 Deferred tax (liabilities)/assets are comprised of the following at December 31: 2025 2024 Property, plant and equipment $ (235,929) $ (266,278) Intangibles (488,519) (545,330) Leases (109,707) (76,225) Outside basis in Metal Packaging (63,105) (68,649) Other (192) Gross deferred tax liabilities $ (897,452) $ (956,482) Retiree health benefits $ 4 $ 245 Foreign loss carryforwards 110,055 79,314 U.S. Federal loss and credit carryforwards 31,980 34,082 Capital loss carryforwards 3,983 3,755 U.S. State loss and credit carryforwards 23,413 26,181 Capitalized research and development costs 67,894 103,043 Net investment hedge 50,524 Employee benefits 54,258 56,192 Leases 116,184 82,031 Accrued liabilities and other assets 44,023 71,370 Gross deferred tax assets $ 502,318 $ 456,213 Valuation allowance on deferred tax assets $ (107,451) $ (81,496) Total deferred taxes, net 1 $ (502,585) $ (581,765) 1 Total …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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 Companys 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 Companys leases do not have any significant residual value guarantees or restrictive covenants. On November 3, 2025, the Company completed the sale of ThermoSafe, part of the All Other group of businesses. The divestiture included operating lease assets of $20,825 and operating lease liabilities of $21,082 as well as finance lease assets of $2,743 with finance lease liabilities of $2,920. The Company completed the Eviosys acquisition on December 4, 2024. The acquisition included operating lease liabilities of $42,468 with a weighted-average remaining lease maturity term of 8.1 years and weighted-average discount rate of 4.5%. The Company completed the divestiture of Protexic on April 1, 2024. The divestiture included operating lease assets of $21,989 and operatin …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New accounting pronouncements In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income StatementReporting Comprehensive IncomeExpense 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. 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 entitys 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 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

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, Italy, Switzerland, Spain, Ireland and Turkey. 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/(income) include the following: 2025 2024 2023 Retirement Plans Service cost $ 5,497 $ 3,456 $ 2,878 Interest cost 21,588 19,097 18,101 Expected return on plan assets (13,667) (11,133) (9,451) Amortization of prior service cost 923 864 926 Amortization of net actuarial loss 3,871 4,472 4,300 Effect of settlement loss 42 530 1,010 Effect of curtailment gain (263) Net periodic benefit cost $ 17,991 $ 17,286 $ 17,764 Retiree Health and Life Insurance Plans Service cost $ 134 $ 178 $ 230 Interest cost 919 919 507 Expected return on plan assets (413) (392) (313) Amortization of prior service cost 375 385 Amortization of net actuarial gain (1,160) (899) (768) Net periodic benefit (income)/cost $ (145) $ 191 $ (344) The following tables set forth the Plans obligations and assets at December 31: …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue recognition The following tables set forth information about revenue disaggregated by primary geographic regions for the years ende d December 31, 2025, 2024 and 2023. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Companys reportable segments are aligned by product nature as disclosed in Note 20. Year Ended December 31, 2025 Consumer Packaging Industrial Paper Packaging All Other Total Primary geographical markets: United States $ 1,864,861 $ 1,464,574 $ 285,486 $ 3,614,921 EMEA 2,789,400 361,878 56,160 3,207,438 Canada 18,539 85,875 104,414 APAC 100,482 148,012 1,065 249,559 Other 101,009 238,894 2,518 342,421 Total $ 4,874,291 $ 2,299,233 $ 345,229 $ 7,518,753 Year Ended December 31, 2024 Consumer Packaging Industrial Paper Packaging All Other Total Primary geographical markets: United States $ 1,785,857 $ 1,431,232 $ 352,717 $ 3,569,806 EMEA 524,699 371,896 58,925 955,520 Canada 17,486 95,863 113,349 APAC 96,154 213,127 1,771 311,052 Other 107,656 237,370 10,612 355,638 Total $ 2,531,852 $ 2,349,488 $ 424,025 $ 5,305,365 Year Ended December 31, 2023 Consumer Packaging Industrial Paper Packaging All Other Total Primary geographical markets: United States $ 1,817,268 $ 1,389,492 $ 494,112 $ 3,700,872 EMEA 431,189 389,261 64,936 885,386 Canada 16,076 100,095 116,171 APAC 94,136 233,446 1,812 329,394 Other 112,379 261,819 35,405 409,603 Total $ 2,471,048 $ 2,374,113 $ 596,265 $ 5,441,426 Contract assets represent goods …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment reporting The Company operates under two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. 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; paper-based protective packaging; and uncoated recycled paperboard. Effective January 1, 2024, the Company began conducting its recycling operations, part of the Industrial Paper Packaging segment, as a procurement function. As a result, no recycling net sales were recorded and the margin from the Companys recycling operations reduced Cost of sales for the years ended December 31, 2025 and 2024 as these activities are no longer a part of ongoing major operations. The primary products produced within the All Other group of businesses consist of a variety of packaging materials, including plastic, paper, foam, and various other specialty materials. Following the sale of ThermoSafe in November 2025, the Companys industrial and specialty plastics business is the only remaining business in the All Other category. Effective January 1, 2026, this business will be reported within the Industrial Paper Packaging se …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of significant accounting policies Basis of presentation The Consolidated Financial Statements include the accounts of Sonoco Products Company and its majority-owned subsidiaries (the Company or Sonoco) after elimination of intercompany accounts and transactions. On December 18, 2024, the Company announced that it had entered into an agreement to sell its Thermoformed and Flexibles Packaging business and its global Trident business (collectively, TFP) to TOPPAN Holdings Inc. (Toppan). The sale, which reflects the completion of the Companys previously announced strategic review of TFP, closed on April 1, 2025. In accordance with applicable accounting guidance, the results of TFP, previously part of the Companys Consumer Packaging segment, are presented as discontinued operations in the Consolidated Statements of Income and, as such, have been excluded from both continuing operations and segment results for all periods presented in this Annual Report on Form 10-K. Further, the Company reclassified the assets and liabilities of TFP as assets and liabilities of discontinued operations in the Consolidated Balance Sheet as of December 31, 2024. The 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 Annual Report on Form 10-K reflect only the continuing operations of …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Shareholders equity and earnings per share Earnings per share The following table sets forth the computation of basic and diluted earnings/(loss) per share (in thousands, except per share data): 2025 2024 2023 Numerator: Net income from continuing operations $ 591,038 $ 67,565 $ 379,644 Net (income)/loss from continuing operations attributable to noncontrolling interests (375) 180 (768) Net income from continuing operations attributable to Sonoco 590,663 67,745 378,876 Net income attributable to Sonoco $ 1,003,011 $ 163,949 $ 474,959 Denominator: Weighted average common shares outstanding: Basic 99,124 98,637 98,294 Dilutive effect of shared-based compensation 447 653 596 Diluted 99,571 99,290 98,890 Per common share: Basic earnings per common share: Net income from continuing operations $ 5.96 $ 0.69 $ 3.85 Net income attributable to Sonoco $ 10.12 $ 1.66 $ 4.83 Diluted earnings per common share: Net income from continuing operations $ 5.93 $ 0.68 $ 3.83 Net income attributable to Sonoco $ 10.07 $ 1.65 $ 4.80 Cash dividends $ 2.11 $ 2.07 $ 2.02 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 SARs are used to repurchase the Companys common stock. Certain SARs are not dilutive because either the exercise price is …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

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 Companys 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 Companys fi nancial statements. At June 28, 2026 and December 31, 2025, the accruals for these sites totaled $1,672 and $1,779, respectively , and are included in Accrued expenses and other payables on the Companys Condensed Consolidated Balance Sheets. Other Legal Matters In addition to those matters described above, the Company …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Details of the Companys debt at June 28, 2026 and December 31, 2025 are as follows: June 28, 2026 December 31, 2025 Commercial paper $ 116,000 $ Syndicated term loan due August 2028 498,637 498,320 4.450% notes due September 2026 499,670 498,749 2.250% notes due February 2027 299,695 299,443 4.600% notes due September 2029 596,270 595,694 3.125% notes due May 2030 597,808 597,528 2.850% notes due February 2032 497,080 496,824 5.000% notes due September 2034 691,374 690,857 5.750% notes due November 2040 536,330 536,314 Other foreign denominated debt 47,328 40,016 Finance lease obligations 53,572 53,542 Other debt 19,452 19,638 Total debt 4,453,216 4,326,925 Less: Notes payable and current portion of long-term debt (968,752) (537,952) Long-term debt $ 3,484,464 $ 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 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables set forth information about revenue disaggregated by primary geographic regions for the three- and six-month periods ended June 28, 2026 and June 29, 2025. The tables also include a reconciliation of disaggregated revenue with reportable segments. The Companys reportable segments are aligned by product nature as disclosed in Note 17 . Three-month period ended June 28, 2026 Consumer Packaging Industrial Paper Packaging Total Primary Geographical Markets: United States $ 468,040 $ 409,938 $ 877,978 EMEA 705,379 110,224 815,603 Canada 1,936 22,443 24,379 APAC 32,561 38,122 70,683 Other 33,923 62,919 96,842 Total $ 1,241,839 $ 643,646 $ 1,885,485 Three-month period ended June 29, 2025 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 467,148 $ 392,259 $ 60,296 $ 919,703 EMEA 707,327 105,276 5,106 817,709 Canada 4,404 23,312 27,716 APAC 23,675 36,582 345 60,602 Other 24,479 60,232 84,711 Total $ 1,227,033 $ 617,661 $ 65,747 $ 1,910,441 Six-month period ended June 28, 2026 Consumer Packaging Industrial Paper Packaging Total Primary Geographical Markets: United States $ 909,006 $ 775,035 $ 1,684,041 EMEA 1,302,963 210,714 1,513,677 Canada 4,500 42,579 47,079 APAC 61,311 72,845 134,156 Other 61,134 121,840 182,974 Total $ 2,338,914 $ 1,223,013 $ 3,561,927 Six-month period ended June 29, 2025 Consumer Packaging Industrial Paper Packaging All Other Total Primary Geographical Markets: United States $ 915,182 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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 Companys financial assets and financial liabilities, excluding retirement and postretirement plan assets, measured at fair value on a recurring basis: Description June 28, 2026 Assets measured at NAV Level 1 Level 2 Level 3 Hedge derivatives, net: Commodity contracts $ 1,433 $ $ $ 1,433 $ Foreign exchange contracts 1,826 1,826 Net investment hedge (144,671) (144,671) Non-hedge derivatives, net: Commodity contracts (1,485) (1,485) Foreign exchange contracts 909 909 Description December 31, 2025 Assets measured at …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets Goodwill A summary of the changes in goodwill for the six-month period ended June 28, 2026 is as follows: Consumer Packaging Industrial Paper Packaging Total Goodwill at December 31, 2025 $ 1,947,991 $ 563,620 $ 2,511,611 Divestitures (538) (538) Foreign currency translation (43,769) (3,566) (47,335) Goodwill at June 28, 2026 $ 1,904,222 $ 559,516 $ 2,463,738 The goodwill balance of the Industrial Paper Packaging segment at December 31, 2025 includes $55,244 related to Industrial Plastics, previously reported as part of the All Other group of businesses. See Note 1 for additional information. Goodwill activity reflected as Divestitures above relates to the June 2026 sale of a small recycling business in Savannah, Georgia, part of the Industrial Paper Packaging segment. S ee Note 4 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 Companys assessm ents reflected a number of significant management assumptions and estimates including the Companys forecast of sales growth during the discrete period, EBIT DA, and discount rates. Changes in …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The Companys effective tax rates for the three- and six-month periods ended June 28, 2026 were 27.8% and 22.4%, respectively, and its effective tax rates for the three- and six-month periods ended June 29, 2025 were 37.3% and 34.8%, respectively. The Companys 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 in the first quarter of 2026. 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. The Companys reserve for uncertain tax benefits increased by $108 from December 31, 2025 to June 28, 2026 due primarily to an increase in reserves related to existing tax positions and the Companys reassessment of a prior-year tax matter, partially offset by a decrease related to the release of a prior year reserve. Although the Companys 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, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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 Companys 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 Companys leases do not have any significant residual value guarantees or restrictive covenants. As the implicit rate in the Companys leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Companys incremental secured borrowing rate, which contemplates and reflects a particular geographical regions interest rate for the leases active within that region of the Companys 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 Companys lease assets and lease liabil …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements In May 2026, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes specific accounting and disclosure requirements for environmental credits and environmental credit obligations. The guidance provides recognition, measurement, presentation and disclosure requirements for entities that generate, purchase, receive, or hold environmental credits, as well as entities subject to regulatory compliance programs that may be settled using environmental credits. Among other provisions, the standard requires certain environmental credits to be recognized as assets based on their intended use, establishes measurement requirements for environmental credit obligations, and requires disclosures related to environmental credits and related obligations. This guidance is effective for public business entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, but early adoption is permitted. The standard should be applied on a retrospective basis through a cumulative-effect adjustment to opening retained earnings as of the beginning of the annual reporting period of adoption. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. In November 2024, the FASB …

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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/(income) include the following: Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Retirement Plans Service cost $ 1,168 $ 1,366 $ 2,425 $ 2,562 Interest cost 5,169 5,448 10,222 10,581 Expected return on plan assets (3,752) (3,420) (7,398) (6,625) Amortization of prior service cost 190 209 374 397 Amortization of net actuarial loss 887 899 1,777 1,887 Effect of curtailment loss 60 60 Effect of settlement loss 337 337 Net periodic benefit cost $ 4,059 $ 4,502 $ 7,797 $ 8,802 Retiree Health and Life Insurance Plans Service cost $ (29) $ 27 $ $ 66 Interest cost 192 216 416 453 Expected return on plan assets (151) (104) (295) (204) Amortization of prior service cost 74 91 164 185 Amortization of net actuarial gain (86) (357) (241) (571) Net periodic b …

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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 customers 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 Companys 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 Companys Condensed Consolidated Balance Sheets. Payment terms under the Companys sales arrangements are short term, generally …

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Segment Reporting The Companys 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. The Companys chief operating decision maker (CODM) is the chief executive officer. The CODM assesses segment performance and allocates resources to each segment by using each segments 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 s …

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Shareholders Equity Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Numerator: Net income from continuing operations $ 105,024 $ 68,651 $ 172,649 $ 117,968 Net (income)/loss from continuing operations attributable to noncontrolling interests (130) 224 (154) 164 Net income from continuing operations attributable to Sonoco $ 104,894 $ 68,875 $ 172,495 $ 118,132 Net income attributable to Sonoco $ 104,894 $ 493,423 $ 172,495 $ 547,852 Denominator: Weighted average common shares outstanding: Basic 99,478 99,171 99,397 99,055 Dilutive effect of shared-based compensation 303 368 351 398 Diluted 99,781 99,539 99,748 99,453 Per common share: Basic earnings per common share: Net income from continuing operations $ 1.05 $ 0.69 $ 1.74 $ 1.19 Net income attributable to Sonoco $ 1.05 $ 4.97 $ 1.74 $ 5.53 Diluted earnings per common share: Net income from continuing operations $ 1.05 $ 0.69 $ 1.73 $ 1.19 Net income attributable to Sonoco $ 1.05 $ 4.96 $ 1.73 $ 5.51 Cash dividends $ 0.54 $ 0.53 $ 1.07 $ 1.05 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 right …

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