International Paper Reports Third Quarter 2026 Results

International Paper (NYSE: IP; LSE: IPC), a global provider of sustainable packaging solutions, today announced preliminary, unaudited financial results for the third quarter ended September 30, 2026. The company reported continued operational progress in North America, ongoing restructuring initiatives in Europe, the Middle East and Africa (EMEA), and further progress toward the planned separation of its EMEA packaging business.

Third-quarter financial highlights

International Paper reported net sales of $6.20 billion for the third quarter of 2026, compared with $6.22 billion in the same period of 2025. The company recorded a loss from continuing operations of $1.10 billion, primarily reflecting a $1.38 billion non-cash goodwill impairment charge related to its Packaging Solutions EMEA business.

Key financial results included:

• Net sales: $6.197 billion, compared with $6.222 billion in Q3 2025.

• Loss from continuing operations: $1.097 billion, compared with a loss of $426 million in Q3 2025.

• Adjusted EBITDA from continuing operations: $843 million, compared with $859 million in Q3 2025.

• Adjusted operating earnings: $197 million, compared with a loss of $224 million in Q3 2025.

• Diluted loss per share from continuing operations: $2.07.

• Adjusted operating earnings per share: $0.37.

• Cash provided by operating activities: $339 million.

• Free cash flow: Negative $267 million.

The results reflect the impact of the goodwill impairment, a softer demand environment, continued cost-management measures, and differences in operating performance across the company's business segments.

North American operations show improvement

International Paper's Packaging Solutions North America segment reported third-quarter operating profit of $427 million, compared with $204 million in the second quarter of 2026 and an operating loss of $166 million in the third quarter of 2025.

Higher sales prices and lower planned maintenance outage costs supported performance. Improved mill operations and continued cost-control efforts also contributed to lower operating costs. These benefits were partially offset by softer demand, lower sales volumes, higher input costs for recovered fiber, energy and fuel, increased freight costs, and the impact of suspended operations at the Pine Hill mill.

The results also included a full quarter of earnings from the NORPAC mill acquisition, compared with one month of earnings in the second quarter of 2026.

EMEA packaging business records impairment charge

The Packaging Solutions EMEA segment reported an operating loss of $73 million in the third quarter of 2026, compared with an operating loss of $80 million in the second quarter and $58 million in the third quarter of 2025.

The segment continued to experience soft market conditions and lower sales volumes. Ongoing cost-reduction initiatives and lower selling and administrative expenses provided some support, while higher energy costs and paper pricing pressures continued to affect profitability.

The company recorded a $1.377 billion non-cash goodwill impairment charge related to the EMEA packaging business following its evaluation of the segment's fair value and carrying value.

Strategic separation of EMEA packaging business

International Paper continues to advance plans to separate its EMEA packaging business into an independent company to be known as DS Smith plc.

The planned separation is intended to establish an independent packaging business focused on the European market. In connection with the separation and subsequent U.K. regulatory requirements, International Paper stated that it will no longer include its existing Packaging Solutions EMEA financial guidance in its guidance framework and does not anticipate providing such guidance in the future.

The EMEA leadership team is scheduled to hold a Capital Markets Day in London on November 3, 2026, to discuss the new company's business model, growth strategy, market position and financial outlook following the separation.

Acquisition, mill suspension and restructuring

NORPAC acquisition: International Paper's North American results benefited from a full quarter of earnings from the NORPAC mill acquisition. The company also reported $2 million in NORPAC acquisition transaction costs during the third quarter.

Pine Hill mill: Operations at the Pine Hill mill remained suspended during the third quarter, affecting North American operating results.

Restructuring and cost reductions: The company continued implementing operational and cost-out initiatives under its 80/20 strategic approach. Third-quarter severance and other restructuring costs totaled $9 million before tax.

These developments form part of the company's efforts to improve its cost position, streamline operations and focus resources on strategic priorities.

Key special items

The company's third-quarter results included the following after-tax special items:

• EMEA goodwill impairment: $1.377 billion.

• EMEA separation costs: $52 million.

• Severance and other costs: $8 million.

• NORPAC acquisition transaction costs: $2 million.

• Net gains on sales and impairments of assets: $18 million benefit.

• Tax benefit related to settlement of tax audits: $78 million.

• Tax benefit related to capital losses: $38 million.

Total net special items amounted to an after-tax charge of approximately $1.305 billion.

Management commentary

“Our third-quarter results reflect meaningful progress on our strategy despite persistent macro headwinds,” said Andy Silvernail, Chairman and Chief Executive Officer of International Paper.

“In North America, we are improving our operational performance, building a structurally lower-cost business and realizing the benefits of prior pricing actions, while continuing to create value for our customers. In EMEA, we executed well on our ongoing restructuring and cost-out initiatives, while the macro environment continued to weigh on results and the pace of margin recovery.”

Silvernail added that the company remains focused on improving its cost position, delivering a superior customer experience, strengthening its relative supply position and advancing the separation of its EMEA packaging business.

Upcoming events and investor information

Third-quarter earnings webcast: International Paper will host a webcast on October 28, 2026, beginning at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). Management will discuss quarterly results, market conditions, the planned EMEA separation and the North American financial outlook.

Investors can access the webcast through the company's website at International Paper — Events & Presentations.

DS Smith Capital Markets Day: The EMEA packaging business leadership team is scheduled to hold an event on November 3, 2026, from 13:00 to 17:00 GMT in London, United Kingdom.

International Paper intends to finalize the preliminary third-quarter results in its Quarterly Report on Form 10-Q, which it expects to file with the U.S. Securities and Exchange Commission on or about November 4, 2026.