Sonoco Products Company (SON.N): Discouraging Demand, Encouraging Response

Citi reiterates Buy on Sonoco Products (SON.N). Shares dipped 1.4% following a 3Q miss and a revised '26 outlook. While 3Q results were close to Citi's estimate (Citi $355mm EBITDA), the implied 4Q guide was weaker than expected. SON cited $40-$50mm of headwinds in 3Q split between lower volume and higher costs, roughly half offset by productivity. Consumer EBITDA could be flattish Y/Y in 4Q (vs. -$23mm Y/Y in 3Q) as price increases and surcharges have been implemented where available, though some contractual resets will occur through '27. Industrial EBITDA could be up slightly Y/Y;