Earnings Releases·Oct 28, 2026, 7:19 AM ET

International Paper — Third Quarter 2026 Earnings Summary

Net sales declined 0.3% year-over-year to $6.20 billion, while adjusted EBITDA rose 1.9% to $843 million; however, GAAP results showed a $1.10 billion loss driven by a $1.38 billion non-cash goodwill impairment charge in the EMEA segment.
Free cash flow turned negative at $(267) million for the quarter, down from $150 million in the prior year period, as higher input costs and suspended operations at Pine Hill offset improved mill performance and full-quarter earnings from the NORPAC acquisition.
Guidance was issued for Packaging Solutions North America only, projecting Q4 2026 operating profit of $460-$500 million and full-year 2026 operating profit of $1.3-$1.4 billion; EMEA guidance was discontinued due to the planned separation into DS Smith plc.
The company is advancing the separation of its EMEA packaging business, with a Capital Markets Day scheduled for November 3, 2026, while net special items totaled $1.31 billion, including $65 million in separation costs.
Management cited persistent macro headwinds and softer demand in North America, though they remain focused on executing cost-out initiatives and building a lower-cost position despite higher fiber, energy, and fuel expenses.