SONOCO PRODUCTS CO

Previous wording

•the effects of economic downturns, changing tariffs or trade policy, inflation, volatility and other macroeconomic factors on the Company and its industry, including the Company’s ability to manage such matters and their effects on consumers and customers;

Current wording

•the effects of economic downturns, changing tariffs or trade policy, inflation, volatility and other macroeconomic factors on the Company and its industry, including the Company’s ability to manage such matters and their effects on suppliers, consumers and customers;

Previous wording

•profitable sales growth and rates of growth;

Current wording

•producing improvements in earnings and profitable sales growth and rates of growth;

Previous wording

•availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariffs or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine and between the United States and Iran and elsewhere in the Middle East, the potential escalation of tensions between China and Taiwan, and recent events in Venezuela), and the Company’s ability to continue to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks;

Current wording

•availability, transportation and pricing of raw materials, energy and transportation, including the impact of changes in tariffs or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflicts between Russia and Ukraine and between the United States and Iran and elsewhere in the Middle East, the potential escalation of tensions between China and Taiwan, and recent events in Venezuela), and the Company’s ability to continue to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks;

Previous wording

•ability to maintain or increase productivity levels, contain or reduce costs, and maintain positive price/cost relationships;

Current wording

•ability to maintain or increase productivity levels, contain or reduce costs, and maintain positive price/cost relationships. including through ongoing organizational efforts;

Previous wording

•liability for and costs of resolution of litigation, regulatory actions, or other legal proceedings;

Current wording

•liability for and anticipated costs of resolution of litigation, regulatory actions or other legal proceedings or environmental remediation actions;

Previous wording

•effects of environmental laws and regulations, including with respect to climate change and emissions reporting;

Current wording

•effects of changing climate and greenhouse gas effects and environmental laws and regulations, including with respect to climate change and emissions reporting;

Previous wording

The Company is planning to invest $20 million in its Industrial Paper Packaging segment to add new nailed wood reel production capacity at the Company’s Hartselle, Alabama, facility to help meet growing wire and cable infrastructure demand to support artificial intelligence data centers.

Current wording

The Company is investing $20.0 million in its Industrial Paper Packaging segment to add new nailed wood and steel reel production capacities at the Company’s Hartselle, Alabama, facilities to help meet growing wire and cable infrastructure demand to support AI data centers and other electrical grid investments. This expansion is expected to be completed before the end of 2026.

Previous wording

Recent developments in U.S. and foreign trade policy have increased uncertainty for the global economy and the Company’s business. On March 4, 2025, the U.S. government imposed a 25% tariff on all imports from Canada or Mexico. After imposing this tariff, the U.S. government allowed for the temporary exemption from the tariff for any goods that comply with the USMCA, which has helped mitigate the impact of the tariff on the Company’s operations in North America. On February 10, 2025, the United States announced the expansion of Section 232 Tariffs on steel and aluminum imported into the United States, effective March 12, 2025, and the termination of the granting of new exclusions to mitigate these tariffs. As a result, imported steel and aluminum originating from most countries is currently subject to a 50% duty.

Current wording

Ongoing developments in U.S. and foreign trade policy have increased uncertainty for the global economy and the Company’s business. On March 4, 2025, the U.S. government imposed a 25% tariff on all imports from Canada or Mexico. After imposing this tariff, the U.S. government allowed for the temporary exemption from the tariff for any goods that comply with the United States-Mexico-Canada Agreement (“USMCA”), which has helped mitigate the impact of the tariff on the Company’s operations in North America. On February 10, 2025, the United States announced the expansion of Section 232 Tariffs on steel and aluminum imported into the United States, effective March 12, 2025, and the termination of the granting of new exclusions to mitigate these tariffs. As a result, imported steel and aluminum originating from most countries is currently subject to a 50% duty.

Previous wording

The United States also imposed reciprocal tariffs at a baseline rate of 10%, effective April 5, 2025, and later set firmly established tariff rates for various countries at the beginning of August 2025. For the most part, these reciprocal tariffs were incremental increases over the previously established 10% temporary reciprocal tariffs. On February 20, 2026, the U.S. Supreme Court invalidated certain of these tariffs. On April 20, 2026, U.S. Customs and Border Protection launched an electronic system to manage refunds for tariffs paid under the International Emergency Economic Powers Act (“IEEPA”). The Company will seek refund of all eligible IEEPA tariffs; however, the amount of any such recovery is not expected to be material.

Current wording

The U.S. government also imposed reciprocal tariffs at a baseline rate of 10%, effective April 5, 2025, and later set firmly established tariff rates for various countries at the beginning of August 2025. For the most part, these reciprocal tariffs were incremental increases over the previously established 10% temporary reciprocal tariffs. On February 20, 2026, the U.S. Supreme Court invalidated certain of these tariffs. On April 20, 2026, U.S. Customs and Border Protection launched an electronic system to manage refunds for tariffs paid under the International Emergency Economic Powers Act (“IEEPA”). The Company has applied for refunds of all eligible IEEPA tariffs and has recovered approximately 80% of its overall claim as of the end of the second quarter of 2026. The amount of the recoveries to date has not been material nor are any future recoveries expected to be material.

Previous wording

Effective April 6, 2026, the United States overhauled Section 232 tariffs on steel and aluminum moving from a metal-content-based assessment to the full customs value of the imported goods. Under the revised rules, many steel and aluminum products, along with their derivative articles, now face significantly higher tariffs. The metal ends that the Company imports into the United States are now subject to a 25% tariff. Future changes in tariff and trade policy may result in additional changes, the exact scope of which is not known at this time. While the full impact of the most recent Section 232 changes is uncertain, the Company does not currently expect the current tariff environment to have a material direct effect on its profitability or cash flows over the remainder of 2026 because the Company’s manufacturing network is designed to serve local markets, reducing its exposure to cross-border disruptions and tariff-related risks. While the Company is actively working with its customers to help manage the impacts of higher input costs driven by tariffs, its business model allows for pricing adjustments when necessary. In addition, the Company believes its transformed portfolio following the Eviosys acquisition and the sales of TFP and ThermoSafe is significantly more resilient, with nearly two-thirds of the Company’s sales in 2025 coming from the Consumer Packaging segment, a segment that has historically demonstrated strong performance across economic cycles. In addition, while the Section 232 Tariffs impact input costs for the Company’s U.S.-based operations with Consumer Packaging, Americas, which source a portion of their steel and aluminum purchases from outside the United States, the Company intends, and has the contractual ability, to continue to pass such increases in cost due to tariffs to its customers.

Current wording

Effective April 6, 2026, the United States overhauled Section 232 tariffs on steel and aluminum moving from a metal-content-based assessment to the full customs value of the imported goods. Under the revised rules, many steel and aluminum products, along with their derivative articles, now face significantly higher tariffs. The metal ends that the Company imports into the United States are now subject to a 25% tariff. Future changes in tariff and trade policy may result in additional changes, the exact scope of which is not known at this time. While the full impact of the most recent Section 232 changes is uncertain, the Company does not currently expect the current tariff environment to have a material direct effect on its profitability or cash flows over the remainder of 2026 because the Company’s manufacturing network is designed to serve local markets, reducing its exposure to cross-border disruptions and tariff-related risks. While the Company is actively working with its customers to help manage the impacts of higher input costs driven by tariffs, its business model allows for pricing adjustments when necessary. In addition, the Company believes its transformed portfolio following the Eviosys acquisition and the divestitures of its TFP and ThermoSafe businesses is significantly more resilient, with nearly two-thirds of the Company’s sales in 2025 and the first half of 2026 coming from the Consumer Packaging segment, a segment that has historically demonstrated strong performance across economic cycles. In addition, while the Section 232 Tariffs impact input costs for the Company’s U.S.-based operations with Consumer Packaging, Americas, which source a portion of their steel and aluminum purchases from outside the United States, the Company intends, and has the contractual ability, to continue to pass such increases in cost due to tariffs to its customers.

Previous wording

The ongoing conflict between the United States and Iran has introduced additional volatility into global energy markets, shipping corridors, and raw material supply chains. The Company relies on a diversified global supplier base for resin, chemicals, adhesives, and other inputs, some of which are indirectly influenced by crude-oil-linked pricing or international transportation costs. As a result of this geopolitical and macroeconomic uncertainty, the Company expects to experience increases in cost of sales from these higher input costs, as well as higher energy and logistics costs, including higher fuel surcharges. While the Company will seek to reduce the potential impact on its customers, it is anticipated that such increases will be passed to our customers and that these cost pressures will not materially impact the Company’s ability to source materials, operate facilities, or meet customer demand. Based on information currently available, the Company does not expect these factors to materially impact its near-term financial performance. However, the duration and broader economic consequences of the conflict, including the potential for further increases in energy and logistics costs, remain uncertain. The Company will continue to evaluate developments in the geopolitical environment and adjust its risk management strategies as conditions evolve.

Current wording

The ongoing conflict between the United States and Iran has introduced additional volatility into global energy markets, shipping corridors, and raw material supply chains. The Company relies on a diversified global supplier base for resin, chemicals, adhesives, and other inputs, some of which are indirectly influenced by crude-oil-linked pricing or international transportation costs. As a result of this geopolitical and macroeconomic uncertainty, the Company expects inflation related to input costs, energy, and logistics to persist over the second half of 2026; however, it does not expect these cost pressures to materially impact the Company’s ability to source materials, operate facilities, or meet customer demand. The Company does not expect these factors to materially impact its near-term financial performance based on cost recovery actions through recognized market price increases and contractual price resets. However, the duration and broader economic consequences of the conflict, including the potential for further increases in energy and logistics costs, remain uncertain. The Company will continue to evaluate developments in the geopolitical environment and adjust its risk management strategies as appropriate.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”), which includes a broad range of tax reform provisions, including the extension of key provisions of the Tax Cuts and Jobs Act of 2017, was signed into law in the United States. The Company has evaluated the impact of the OBBBA as part of its projected 2026 results, and the effects of the legislation are reflected in its income tax provision for the quarter. While certain provisions of the OBBBA are expected to have a favorable impact on the Company’s income tax profile, the Company does not currently anticipate that the OBBBA will have a material effect on its effective tax rate, financial results or cash flows for 2026. The Company will continue to monitor and assess the application of the OBBBA and any related regulatory guidance as it becomes available.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA"), which includes a broad range of tax reform provisions and extends or modifies certain provisions of prior tax legislation, was signed into law in the United States. The Company evaluated the effects of the OBBBA in accordance with ASC 740 and determined that enactment of the legislation did not result in a material adjustment to its income tax accounts upon enactment. Based on the Company’s assessment, the OBBBA is not expected to have a material impact on the Company’s consolidated effective tax rate, results of operations, financial position or cash flows for 2026. While certain provisions of the OBBBA are expected to provide future tax benefits, largely through acceleration of deductions to benefit cash taxes, the overall impact is not currently expected to be material. The Company will continue to monitor the implementation of the OBBBA and related regulatory, administrative and interpretive guidance and will evaluate the effects of any such guidance as it becomes available.

Previous wording

Consolidated net sales for the first quarter of 2026 were $1.7 billion, a $(32.8) million or 1.9% decline from the first quarter of 2025. Lower volumes resulted in lower sales in the first quarter of 2026 of $(97.8) million compared to the same period last year as macroeconomic and geopolitical pressures weighed on both the Company’s supply chain and its customers and the November 2025 divestiture of ThermoSafe further reduced sales by $(55.8) million. These decreases were partially offset by a favorable impact from foreign currency translation of $87.1 million and a $38.7 million benefit from higher selling prices implemented to offset the effects of inflation and tariffs. All other factors contributed to a net reduction of $(5.0) million in the first quarter of 2026 compared to the same period last year.

Current wording

Consolidated net sales for the second quarter of 2026 were $1.9 billion, a $(25.0) million or (1.3)% decline from the second quarter of 2025. The November 2025 divestiture of ThermoSafe reduced sales by $(65.7) million in the second quarter of 2026 compared to the same period last year while lower volumes further reduced sales by $(22.9) million as continuing macroeconomic and geopolitical pressures weighed on both the Company’s supply chain and its customers. These decreases were partially offset by a $37.0 million benefit from higher selling prices implemented to offset the effects of inflation and tariffs and the favorable impact from foreign currency translation of $29.3 million. All other factors contributed to a net reduction of $(2.7) million in the second quarter of 2026 compared to the same period last year.

Previous wording

GAAP operating profit for the first quarter of 2026 was $127.1 million, an increase of 0.2% from the $126.9 million reported in the first quarter of 2025. The increase in GAAP operating profit was primarily due to productivity savings from fixed cost reduction initiatives totaling $4.6 million, lower losses on the sale of businesses of $2.3 million, and other net favorable impacts of $0.5 million. These favorable items were partially offset by the impact of the ThermoSafe divestiture of $(7.2) million. Adjusted Operating Profit for the first quarter of 2026 was $200.8 million, a decrease of (5.6)% from the $212.7 million reported for the same period in 2025, primarily resulting from the impact of the ThermoSafe divestiture.

Current wording

GAAP operating profit for the second quarter of 2026 was $192.8 million, an increase of 9.8% from the $175.7 million reported in the second quarter of 2025. The increase in GAAP operating profit was primarily due to productivity savings from fixed cost reduction initiatives and procurement savings of $18.7 million, lower acquisition, integration and divestiture-related costs of $9.1 million, lower restructuring costs of $7.8 million, higher gains on the sale of businesses of $4.7 million, and the net favorable impact of foreign currency translation and other items totaling $5.1 million. These favorable impacts were partially offset by unfavorable price/cost of $(11.8) million, the impact of the ThermoSafe divestiture of $(8.9) million, and unfavorable volume/mix of $(7.6) million. Adjusted Operating Profit for the second quarter of 2026 was $242.4 million, a decrease of (1.8)% from the $246.9 million reported for the same period in 2025, primarily resulting from the impact of the ThermoSafe divestiture.

Previous wording

GAAP net income attributable to Sonoco for the first quarter of 2026 increased to $67.6 million, or $0.68 per diluted share, compared to $54.4 million, or $0.55 per diluted share, for the first quarter of 2025. This increase was primarily due to the increase in GAAP operating profit described above, and lower net interest expense and provision for income taxes as described more fully below, partially offset by the decrease in GAAP net income from discontinued operations resulting from the April 1, 2025 sale of TFP and higher Other expense, net in the current year as described below. Adjusted net income attributable to Sonoco and Adjusted diluted EPS for the first quarter of 2026 were $119.4 million (or $1.20 per diluted share), compared with $136.8 million (or $1.38 per diluted share) for the same period in 2025. The decrease is primarily attributable to the sale of TFP.

Current wording

GAAP net income attributable to Sonoco for the second quarter of 2026 decreased to $104.9 million, or $1.05 per diluted share, compared to $493.4 million, or $4.96 per diluted share, for the second quarter of 2025. The quarter-over-quarter reduction was primarily due to net income from discontinued operations in the prior year of $424.5 million related to the April 2025 divestiture of TFP. The impact of this reduction was partially offset by the increase in GAAP operating profit as described above and lower net interest expense, as described more fully below. Adjusted net income attributable to Sonoco and Adjusted diluted EPS for the second quarter of 2026 were $150.5 million (or $1.51 per diluted share), compared with $136.1 million (or $1.37 per diluted share) for the same period in 2025.

Previous wording

Cost of goods sold decreased by $(24.7) million, or 1.8%, in the first quarter of 2026 compared with the first quarter of 2025. This decrease resulted from a $(40.3) million impact from the divestiture of ThermoSafe, lower labor costs of $(18.8) million, and the nonrecurrence of inventory step-up amortization recognized in the first quarter of 2025 in connection with the Eviosys acquisition of $(17.9) million. These decreases were partially offset by higher direct material costs and outbound freight costs of $44.1 million and $6.9 million, respectively. Gross profit margins decreased slightly from 20.7% in the first quarter of 2025 to 20.6% in the first quarter of 2026.

Current wording

Cost of sales decreased by $(11.1) million, or (0.7)%, in the second quarter of 2026 compared with the second quarter of 2025. This decrease resulted from a $(49.0) million impact from the divestiture of ThermoSafe and lower labor costs of $(18.4) million, partially offset by higher direct material costs of $36.9 million and higher outbound freight costs of $20.5 million. Other favorable factors resulted in a net reduction in cost of sales totaling $(1.1) million. Gross profit margins decreased slightly to 20.8% in the second quarter of 2026 from 21.3% in the second quarter of 2025.

Previous wording

Selling, general and administrative costs decreased by $(7.5) million, or 3.6%, and were 12.0% of sales in the first quarter of 2026, compared to 12.2% of sales in the first quarter of 2025. This decrease reflects reduced costs of $(7.6) million from the ThermoSafe divestiture and lower acquisition, integration, and divestiture-related costs of $(2.9) million, partially offset by net increases, primarily salaries and benefits, totaling $3.0 million.

Current wording

Selling, general and administrative costs decreased by $(18.5) million, or (8.5)%, and were 10.6% of sales in the second quarter of 2026, compared to 11.5% of sales in the second quarter of 2025. This decrease reflects lower acquisition, integration, and divestiture-related costs of $(9.1) million, reduced costs from the ThermoSafe divestiture of $(7.8) million, and other net decreases, primarily salaries and benefits, totaling $(1.6) million.

Previous wording

Restructuring/Asset impairment charges totaled $15.1 million in the first quarter of 2026, compared with $13.6 million during the same period last year. The charges in the current year related primarily to ongoing restructuring costs related to prior year plant closures and headcount eliminations in conjunction with the Company’s ongoing organizational effectiveness efforts. Additional information regarding restructuring and asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

Restructuring/Asset impairment charges totaled $1.9 million in the second quarter of 2026, compared with $9.8 million during the same period last year. The net charges in the current year related primarily to ongoing costs related to prior year plant closures and headcount eliminations in conjunction with the Company’s ongoing organizational effectiveness efforts, partially offset by reductions resulting from revisions to the estimates of total severance to be paid. Additional information regarding restructuring and asset impairment charges is provided in Note 6 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

Net interest expense for the first quarter of 2026 decreased to $35.8 million, compared with $48.7 million during the first quarter of 2025, primarily due to lower average debt levels resulting from the Company’s repayment of debt during 2025 utilizing proceeds from the divestitures of TFP and ThermoSafe.

Current wording

Net interest expense for the second quarter of 2026 decreased to $41.4 million, compared with $60.2 million during the second quarter of 2025, primarily due to lower average debt levels resulting from the Company’s repayment of debt during 2025 utilizing proceeds from the divestitures of TFP and ThermoSafe.

Previous wording

The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. During 2025, the All Other group of businesses consisted of ThermoSafe and the Company’s industrial and specialty plastics business (“Industrial Plastics”). With the divestiture of ThermoSafe in November 2025, only Industrial Plastics remained. Effective January 1, 2026, the Company changed its operating and management reporting structure to include the results of Industrial Plastics in the Company’s Industrial Paper Packaging segment and discontinued the use of All Other. Results for prior periods have been revised to conform with the current presentation.

Current wording

The Company’s operating and reporting structure consists of two reportable segments, Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other. During 2025, the All Other group of businesses consisted of ThermoSafe and Industrial Plastics. With the divestiture of ThermoSafe in November 2025, only Industrial Plastics remained. Effective January 1, 2026, the Company changed its operating and management reporting structure to include the results of Industrial Plastics in the Company’s Industrial Paper Packaging segment and discontinued the use of All Other. Results for prior periods have been revised to conform with the current presentation.

Previous wording

The following table summarizes net sales attributable to each of the Company’s segments for the first quarters of 2026 and 2025 and the All Other group of businesses for the first quarter of 2025:

Current wording

The following table summarizes net sales attributable to each of the Company’s segments for the second quarters of 2026 and 2025 and the All Other group of businesses for the second quarter of 2025:

Previous wording

The following table summarizes operating profit attributable to each of the Company’s reportable segments, and Corporate-related activity for the first quarters of 2026 and 2025 and the All Other group of businesses for the first quarter of 2025:

Current wording

The following table summarizes operating profit attributable to each of the Company’s reportable segments, and Corporate-related activity for the second quarters of 2026 and 2025 and the All Other group of businesses for the second quarter of 2025:

Previous wording

Segment net sales increased $30.5 million, or 2.9%, over the prior year quarter as the favorable impact of foreign exchange rates added $67.7 million and price increases implemented to offset the effects of inflation and tariffs added approximately $27.6 million of sales. These favorable factors were partially offset by softer volume/mix across the segment of $(61.6) million related to macroeconomic conditions and the impact of severe winter weather along the east coast of the United States in the first quarter of 2026.

Current wording

Segment net sales increased $14.8 million, or 1.2%, over the prior year quarter as the favorable impact of foreign exchange rates added $20.3 million and price increases implemented to recover inflation and tariff-related costs added approximately $18.9 million of sales. These favorable factors were partially offset by softer volume/mix across the segment of $(22.1) million as higher paper can volumes in EMEA/APAC due to rising snack demand were more than offset by lower demand for metal aerosol cans and sealant tubes. Other unfavorable factors reduced quarter-over-quarter sales by $(2.3) million.

Previous wording

Loss on divestiture of business totaled $1.9 million in the first quarter of 2026 reflecting a charge related to the final working capital settlement for the ThermoSafe divestiture. Loss on divestiture of business of $4.2 million during the first quarter of 2025 reflected a $5.4 million loss from the sale of the Company’s tube and core operations in Venezuela, partially offset by a $1.2 million gain from the sale of a small construction tube operation in France, both part of the Industrial Paper Packaging segment. See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Current wording

Gain/(Loss) on divestiture of business during the first six months of 2026 was a net gain of $0.8 million reflecting a $2.6 million gain from the sale of the Company’s recycling operations in Savannah, Georgia, part of the Industrial Packaging segment, partially offset by a $(1.9) million charge related to the final working capital settlement for the ThermoSafe divestiture. Gain/(Loss) on divestiture of business during the first six months of 2025 was a net loss of $(6.3) million reflecting losses from the sales of the Company’s tube and core operations in Venezuela and recycling operations in Asheville, North Carolina, of $(5.4) million and $(2.1) million, respectively, partially offset by a gain of $1.2 million from the sale of a small construction tube operation in France, all part of the Industrial Paper Packaging segment. See Note 4 to the Company’s Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

Previous wording

Other expense, net was $12.3 million and $6.5 million in the first quarter of 2026 and 2025, respectively. The amounts in both years are comprised of charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle, primarily within our Consumer Packaging segment. Other expense, net in the first quarter of 2026 also includes non-operating charges related to certain pre-acquisition liabilities relevant to the Sonoco Metal Packaging (“SMP”) EMEA business.

Current wording

Other expense, net during the first six months of 2026 and 2025 was $18.5 million and $13.1 million, respectively. The amounts in both years are comprised of charges from third-party financial institutions related to our centralized treasury program under which the Company sells certain trade accounts receivable in order to accelerate its cash collection cycle, primarily within our Consumer Packaging segment. Other expense, net in the first six months of 2026 also includes $6.6 million of non-operating charges related to certain pre-acquisition liabilities related to the Sonoco Metal Packaging (“SMP”) EMEA business.

Previous wording

The effective tax rates on GAAP income from continuing operations before income taxes and Adjusted income from continuing operations before income taxes in the first quarter of 2026 were 12.4% and 25.5%, respectively, compared with 30.9% and 25.7%, respectively, in the corresponding prior year quarter. The decrease in the GAAP effective tax rate was primarily from a provision-to-return adjustment related to a retroactive U.S. tax election.

Current wording

The effective tax rates on GAAP income from continuing operations before income taxes and Adjusted income from continuing operations before income taxes in the first six months of 2026 were 22.4% and 24.6%, respectively, compared with 34.8% and 25.7%, respectively, in the prior-year period. The decrease in the GAAP effective tax rate was primarily due to the recording of a provision-to-return adjustment for a retroactive U.S. tax election in the first quarter of 2026, as well as the absence of discrete one-time items which were present in 2025.

Previous wording

Segment net sales decreased$(8.2) million, or(1.4)%, from the corresponding prior year quarter as lower volume/mix across the segment reduced sales by $(36.2) million, partially offset by the favorable impact of foreign exchange rates of $18.7 million and price gains of $11.2 million resulting from index-based pricing resets. All other factors contributed to a reduction of $(1.9) million in the first quarter of 2026 compared with the same period last year.

Current wording

Segment net sales increased 1.5% year to date compared to the prior-year period as higher selling prices resulting from index-based pricing resets added $29.3 million of year-over-year sales and the favorable impact of foreign exchange rates added $27.5 million. These favorable factors were partially offset by unfavorable volume/mix of $(37.1) million. All other factors contributed to a net reduction in sales of $(1.9) million in thefirst six months of 2026 compared with the same period last year.

Previous wording

Segment operating profit decreased compared to the corresponding prior year quarter primarily due to lower volume/mix and losses attributable to a fire at a recycling facility in Greenville, South Carolina. These unfavorable factors were partially offset by strong productivity savings. Segment operating profit margin decreased to 12.0% in the first quarter of 2026 from 13.0% in the same period last year.

Current wording

Segment operating profit decreased (2.2)% versus the prior-year period primarily as a result of lower volume/mix and unfavorable price/cost, as well as losses in the first six months of 2026 attributable to fires at recycling facilities in Greenville and Spartanburg, South Carolina. These unfavorable factors were partially offset by productivity savings from fixed cost reduction initiatives and procurement savings and the favorable impact from foreign exchange rates. As a result, segment operating margin decreased to 13.0% in the first six months of 2026 from 13.5% in the same period last year.

Previous wording

1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $37,791, $12,979 and$7,807, respectively.

Current wording

1 Operating profit, income from continuing operations before income taxes, and provision for income taxes exclude results related to discontinued operations of $625,773, $625,773 and$201,225, respectively.

Previous wording

1 For the period ended March 30, 2025, Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.

Current wording

1 For the three-month period ended June 29, 2025, Adjusted EBITDA is calculated on a total Company basis, including both continuing and discontinued operations.

Previous wording

3 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $1,220, the Industrial Paper Packaging segment of $12,438, and a gain in the All Other group of businesses of $77.

Current wording

3 Included in Corporate are restructuring/asset impairment charges associated with the Consumer Packaging segment of $1,479, the Industrial Paper Packaging segment of $8,228, and a gain in the All Other group of businesses of $5.

Previous wording

1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys, the April 2025 divestiture of TFP and the November 2025 divestiture of ThermoSafe.

Current wording

1 Acquisition, integration and divestiture-related costs relate primarily to the Company’s December 2024 acquisition of Eviosys and the November 2025 divestiture of ThermoSafe.

Previous wording

2 Loss on divestiture of business reflects the final net working capital settlement related to the November 2025 divestiture of ThermoSafe.

Current wording

2 Gain on divestiture of business, net reflects the gain of $2,640 from the sale of a recycling operation in Savannah, Georgia, partially offset by a charge of $1,865 from the final net working capital settlement related to the November 2025 divestiture of ThermoSafe.

Previous wording

3 Amount relates to certain pre-acquisition liabilities relevant to the SMP EMEA business.

Current wording

3 Amount relates to certain pre-acquisition liabilities related to the SMP EMEA business.

Previous wording

4 Other adjustments to the provision for income taxes include a benefit of $14,232 related to a provision-to-return adjustment for a retroactive U.S. tax election.

Current wording

4 Other adjustments to the provision for income taxes include a benefit of$14,232 related to a provision-to-return adjustment for a retroactive U.S. tax election.

Previous wording

7 Included in Corporate is a loss of $1,865 from the divestiture of ThermoSafe, previously part of the All Other group of businesses.

Current wording

7 Included in Corporate is a gain of $2,640 from the sale of a recycling facility in Savannah, Georgia, part of the Industrial Paper Packaging segment, partially offset by a charge of $1,865 from the divestiture of ThermoSafe, previously part of the All Other group of businesses.

Previous wording

6 Included in Corporate are losses from the divestiture of businesses associated with the Industrial Paper Packaging segment of $4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela.

Current wording

6 Included in Corporate are net losses on the divestiture of businesses associated with the Industrial Paper Packaging segment of $6,266, including a loss of $2,083 from the sale of a recycling facility in Asheville, N.C. and losses totaling$4,183 related to the sale of a production facility in France and the entirety of our business in Venezuela.

Previous wording

7 Included in Corporate are net gains from derivatives associated with the Consumer Packaging segment of $(284), the Industrial Paper Packaging segment of $(2,552), and the All Other group of businesses of $(113).

Current wording

7 Included in Corporate are net gains from derivatives associated with the Consumer Packaging segment of $(76), the Industrial Paper Packaging segment of $(688), and the All Other group of businesses of $(31).

Previous wording

Operating activities used cash of $367.9 million and $208.1 million in the first three months of 2026 and 2025, respectively, a higher year-over-year use of cash of $159.8 million. GAAP net income increased by$13.1 million year over year, primarily as a result of lower year-over-year acquisition, integration, and divestiture-related costs, partially offset by higher depreciation and amortization costs. Net working capital used$244.3 million of cash in the first three months of 2026, while using $309.4 million in the same period of 2025, for a lower year-over-year use of cash of$65.1 million. Accounts receivable used $7.5 million less cash during the first three months of 2026 than in the same period of 2025 as a result of a changing mix in customer payment terms and strong focus on cash management. Inventory used cash of $105.7 million in the first three months of 2026, while using $110.2 million in the same period of 2025 due to higher overall inventory levels, mainly in tinplate steel, reflecting the impacts of both inflation and seasonality. Accounts payable used cash of $81.8 million and $134.9 million in the first three months of 2026 and 2025, respectively. The lower use of cash was due to timing of purchases and scheduled payments. The Company has continued to actively manage inventories and payment terms with customers and suppliers to both address risk and balance economic benefit. Accrued expenses and other assets and liabilities used $153.4 million and $100.2 million of cash in the first three months of 2026 and 2025, respectively, for a greater year-over-year use of cash of $53.1 million. The primary driver contributing to the change was higher cash payments made under the transition services agreement with the buyer of TFP, of $72.0 million, of which $36.7 million is included in Other receivables at March 29, 2026 and expected to be reimbursed to the Company during the second quarter of 2026. Other drivers included year-over-year increases in payments related to acquisition/divestiture-related costs of $6.6 million and restructuring actions of $3.7 million, partially offset by lower year-over-year interest payments of $4.9 million and management incentive compensation of $2.9 million. Additionally, prepaid expenses used $48.1 million and $0.9 million of cash in 2026 and 2025, respectively, reflecting higher year-over-year advance payments for steel purchases from China. Income taxes payable and other income tax items used $122.2 million of cash in first three months of 2026, compared to providing $16.7 million of cash in the same period of 2025, primarily due to the payment of taxes during the quarter on the gains from the 2025 divestitures of TFP and ThermoSafe.

Current wording

Operating activities used cash of $67.3 million and $14.7 million in the first six months of 2026 and 2025, respectively, a higher year-over-year use of cash of $52.7 million. GAAP net income decreased by $375.0 million year over year, primarily as a result of the gain on the divestiture of TFP included in the prior year’s results and higher year-over-year depreciation and amortization costs, partially offset by lower year-over-year acquisition, integration, and divestiture-related costs. Accounts receivable used $113.0 million more cash during the first six months of 2026 than in the same period of 2025. The majority of the change arose in the second quarter of 2026 as a result of higher daily trade sales in June compared to March and an increase in daily sales outstanding resulting from a changing mix in customer payment terms. The Company continues to focus on cash management and expects accounts receivable reductions over the remainder of 2026. Inventories used cash of $152.1 million in the first six months of 2026, while using $203.8 million in the same period of 2025. The significant use of cash in the first six months of both years resulted from increased inventory levels, mainly in tinplate steel, reflecting the impacts of both inflation and seasonality. The increase was greater in the prior year as inventory levels at SMP EMEA were lower at the end of 2024 following our acquisition of Eviosys on December 4, 2024. Payable to suppliers provided cash of $31.6 million and $8.1 million in the first six months of 2026 and 2025, respectively. The higher provision of cash in 2026 was due to timing of purchases and scheduled payments. The Company has continued to actively manage inventories and payment terms with customers and suppliers to both address risk and balance economic benefit amidst a challenging macroeconomic and geopolitical environment. Accrued expenses and other assets and liabilities used $78.1 million and $98.2 million of cash in the first six months of 2026 and 2025, respectively, for a lower year-over-year use of cash of $20.0 million. The primary drivers contributing to the change were lower year-over-year interest accruals, an increase in collection of miscellaneous non-trade receivables, and lower payments for management incentive compensation, partially offset by higher year-over-year cash payments for acquisition, integration and divestiture-related costs and restructuring actions. Additionally, prepaid expenses used $33.6 million of cash in 2026 and provided $9.0 million of cash in 2025, a year-over-year change of $42.6 million, primarily resulting from higher advance payments for steel purchases from China. Income taxes payable and other income tax items used $100.7 million of cash in the first six months of 2026, compared to providing $197.7 million of cash in the same period of 2025, primarily due to the payment of taxes during the first six months of 2026 on the gains from the 2025 divestitures of TFP and ThermoSafe.

Previous wording

Financing activities provided $302.2 million and $29.6 million of cash in the first three months of 2026 and 2025, respectively. The primary driver of the year-over-year change was higher net borrowings during the first three months of 2026. Net borrowings, primarily from the issuance of commercial paper, provided $359.0 million of cash during the first three months of 2026, while providing $79.2 million during the same period last year. Net borrowing in the prior year reflected proceeds from the issuance of commercial paper of $528.0 million, partially offset by $448.8 million in net debt repayments, including the repayment upon maturity of the $400 million aggregate principal amount of the Company’s 1.800% notes due February 2025. The change in book cash overdrafts was a lower year-over-year provision of cash of$9.5 million. Cash used to pay dividends increased by $1.1 million year over year, reflecting the increase in the quarterly dividend payment from $0.52 per share to $0.53 per share approved by the Company’s Board of Directors in April 2025. Cash used to repurchase the Company’s common stock to satisfy employee tax withholding obligations in association with the exercise of certain share-based compensation awards was $7.0 million in the three-month period ended March 29, 2026, compared to $10.6 million in the corresponding prior-year period.

Current wording

Financing activities provided $7.1 million of cash in the first six months of 2026 and used $1,776.8 million of cash in the first six months of 2025. Net borrowings during the first six months of 2026, primarily from the issuance of commercial paper, provided $116.6 million of cash, whereas net debt repayments during the first six months of 2025, used $1,668.9 million. Net debt repayments in the prior year included the repayment upon maturity of the $400 million aggregate principal amount of the Company’s 1.800% notes due February 2025, largely funded by commercial paper borrowings, and the April 2025 repayment of the outstanding $1,500 million principal amount of borrowings under the Company’s 364-day term loan facility and a portion of the Company’s outstanding commercial paper borrowings using cash proceeds from the sale of TFP. The change in book cash overdrafts wasa lower year-over-year provision of cash of$2.6 million. Cash used to pay dividends increased by $2.2 million year over year, reflecting the increase in the quarterly dividend payment from $0.53 per share to $0.54 per share approved by the Company’s Board of Directors in April 2026. Cash used to repurchase the Company’s common stock to satisfy employee tax withholding obligations in association with the exercise of certain share-based compensation awards was $7.0 million in the six-month period ended June 28, 2026, compared to $10.6 million in the corresponding prior-year period.