revenue
495–515 $million
Q4 2025
official guidance
SONOCO PRODUCTS COMPANY
Last · NYSE$49.12+0.38 (+0.78%)close · yahoo · 17h ago
Market cap$4.86B98.9M sh
P/E · TTM7.6fwd 7.8 · eps 6.46
Beta0.33vs S&P 500
Div yield4.43%annual · TTM
52w range
$38.65$60.67
Volume941.5Ksession
| Revenue | $7.5B |
|---|---|
| Operating income | $319.9M |
| Net income | $172.5M |
| Free cash flow | $-193.1M |
| Operating margin | 4.3% |
| Net margin | 2.3% |
| Return on equity | 4.8% |
| Period | TTM 2026-06-28 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Recovery potential is attractive, but near-term earnings compression and execution-dependent 2026 utilization make this a wait-for-proof story.
Hold: Valaris delivered strong Q3 cash generation—$596 million revenue, $163 million adjusted EBITDA, $237 million adjusted free cash flow and $75 million of buybacks—but Q4 EBITDA is guided down to $70–$90 million as multiple rigs enter idle or mobilization periods. The long-term setup is improving, with $4.5 billion of backlog and a deepwater recovery expected in late 2026, but that thesis still depends on securing gap-fill work and maintaining utilization despite day rates largely bottoming in the high-$300,000s to low/mid-$400,000s.
Themes
- Deepwater Recovery
- Drillship Backlog
- Day Rates
- Jackup Utilization
- Fleet Whitespace
- Capital Returns
Near term
Q4 revenue guidance of $495–$515 million and adjusted EBITDA of $70–$90 million reflect idle DS-15 and DS-18, contract completions for DPS-1 and MS-1, and jackup downtime.
The market may react to additional high-spec drillship awards at day rates in the high-$300,000s to low/mid-$400,000s, limiting near-term earnings upside even as utilization recovers.
Potential follow-on work for VALARIS 106 and VALARIS 107, plus extensions for DS-7 and DS-9 in Angola, are important near-term backlog catalysts.
Capital returns remain opportunistic rather than committed: management cited $200 million as minimum operating cash and did not promise to deploy excess cash rapidly.
Longer term
Backlog increased by more than $2.2 billion year to date to $4.5 billion, materially improving 2026-and-beyond coverage; all four drillships with near-term availability are contracted to begin work in 2026.
Valaris has a differentiated high-specification fleet, with 12 of 13 drillships being seventh-generation units, potentially supporting utilization and day-rate advantages as deepwater demand recovers.
Management expects high-spec drillship utilization to reach around 90% by the end of 2026 and expects all 10 active drillships to exit 2026 contracted and working, but this remains execution-dependent rather than firm guidance.
Incremental deepwater demand is concentrated in Africa, while Brazil is expected to remain stable and the US Gulf broadly balanced; regional concentration makes the recovery dependent on a limited number of projects and customers.
Jackups provide a steadier earnings base, with nearly 80% of available active-rig days contracted for 2026 and more than 60% for 2027, supported by roughly 90% global marketed utilization.
Red flags
Management acknowledged there are probably not enough short-term opportunities to fill all rigs currently carrying whitespace, leaving DS-15, DS-18 and other units exposed to idle time before longer-term contracts begin.
The claimed late-2026 utilization recovery is not yet fully visible in earnings: Q4 adjusted EBITDA is expected to fall to $70–$90 million from $163 million in Q3, while the recovery also relies on customers converting pipeline tenders into awards.
Petrobras is reviewing its supply chain for potential 2026 savings; although management expects its rig count to remain stable, contract pricing and margins could face pressure.
Management characterized high-spec day rates as largely troughed, but explicitly expects additional awards in the high-$300,000s to low/mid-$400,000s, which challenges a rapid margin recovery.
The $625 million full-year 2025 adjusted EBITDA outlook benefits from Q3 outperformance and is not evidence that the current quarter run-rate is sustainable.
Forward outlook
ebitda
70–90 $million
Q4 2025
official guidance
ebitda
625 $million
FY 2025
official guidance
revenue
—
FY 2025
official guidance
ebitda
—
FY 2025
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2025-02-28
- Current Ratio Low
Red flags
- Current Ratio Low — Current ratio 0.79
Upcoming earnings
10:00 PM UTC+2
Period
Sep 2026
Est. EPS
$1.85
Est. revenue
2.1B
Earnings transcripts
- Issuer IR
Q4 2020 earnings call transcript
SONOCO PRODUCTS COMPANY
- Issuer IR
Q4 2020 earnings call transcript
SONOCO PRODUCTS COMPANY
- Issuer IR
Q2 2019 earnings call transcript
SONOCO PRODUCTS COMPANY
- Issuer IR
Q2 2019 earnings call transcript
SONOCO PRODUCTS COMPANY
- Issuer IR
Q1 2019 earnings call transcript
SONOCO PRODUCTS COMPANY
- Issuer IR
Q1 2019 earnings call transcript
SONOCO PRODUCTS COMPANY
Press & signals
- GlobeNewswire
Sonoco to Increase Paperboard Prices in EMEA Region
- GlobeNewswire
Sonoco Names Francesco Giannolo Vice President/General Manager Consumer Packaging, EMEA
- GlobeNewswire
Sonoco Aligns Global Consumer Businesses Under Single Leadership Structure
The rest of this company's wire — with summaries and source links — is part of Pro.
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