Q1 2026 profit and $1.1B asset sale at International Paper (NYSE: IP)
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
International Paper reported preliminary first-quarter 2026 results with net sales of $5.97 billion and earnings from continuing operations of $76 million, or $0.14 per diluted share, improving from a $124 million loss a year earlier.
Adjusted operating earnings were $81 million, or $0.15 per share, and adjusted EBITDA from continuing operations was $677 million. Free cash flow was $94 million, compared with $(618) million in first-quarter 2025.
The company received $1.1 billion of net proceeds from selling its Global Cellulose Fibers business and repaid $660 million of debt. It now targets adjusted EBITDA from continuing operations of $520–$570 million for the second quarter and $3.20–$3.50 billion for full-year 2026.
Packaging Solutions North America generated segment operating profit of $248 million, down from $319 million in the fourth quarter of 2025, as winter storm impacts and higher costs offset pricing and productivity gains. Packaging Solutions EMEA posted an operating loss of $51 million, an improvement from a $223 million loss in the prior quarter.
Positive
- Return to profitability and stronger cash flow: Earnings from continuing operations improved to a $76 million profit from a $124 million loss a year earlier, while free cash flow rose to $94 million from $(618) million.
- Deleveraging with asset-sale proceeds: The company received $1.1 billion of net proceeds from selling its Global Cellulose Fibers business and used $660 million to pay down debt, supporting balance-sheet strength.
- Clear, sizable 2026 earnings targets: Management set adjusted EBITDA from continuing operations targets of $520–$570 million for Q2 2026 and $3.20–$3.50 billion for full-year 2026, giving investors a concrete performance framework.
Negative
- None.
Insights
International Paper swung back to profit, boosted cash flow and set solid 2026 EBITDA targets.
International Paper delivered a notable turnaround in Q1 2026. Net sales rose to $5.97 billion from $5.26 billion a year earlier, and earnings from continuing operations improved to a $76 million profit from a $124 million loss. Adjusted EBITDA from continuing operations was relatively stable at $677 million versus $689 million in Q1 2025.
Cash generation strengthened meaningfully. Cash provided by operating activities reached $611 million, and free cash flow improved to $94 million from a $(618) million deficit. The company received $1.1 billion of net proceeds from the Global Cellulose Fibers sale and used $660 million to reduce debt, helping support the balance sheet.
Operationally, Packaging Solutions North America earned $248 million of segment operating profit, down sequentially due to winter storm and cost pressures, while Packaging Solutions EMEA reduced its loss to $51 million from $223 million in Q4 2025. Updated adjusted EBITDA guidance of $520–$570 million for Q2 and $3.20–$3.50 billion for full-year 2026 outlines management’s expectations under a volatile macro environment.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $5.97 billion
Earnings from continuing operations: $76 million
Adjusted EBITDA from continuing operations: $677 million
+5 more
8 metrics
Net sales
$5.97 billion
Q1 2026; vs $5.26 billion in Q1 2025
Earnings from continuing operations
$76 million
Q1 2026; vs $(124) million in Q1 2025
Adjusted EBITDA from continuing operations
$677 million
Q1 2026; vs $689 million in Q1 2025
Free cash flow
$94 million
Q1 2026; vs $(618) million in Q1 2025
Net proceeds from Global Cellulose Fibers sale
$1.1 billion
Received in early 2026; used partly to reduce debt
Debt reduction
$660 million
Debt repaid using proceeds from Global Cellulose Fibers sale
Adjusted EBITDA outlook Q2 2026
$520–$570 million
Management target for second quarter 2026
Adjusted EBITDA outlook full-year 2026
$3.20–$3.50 billion
Management target for 2026 from continuing operations
Key Terms
Adjusted EBITDA from continuing operations, Adjusted operating earnings, Free cash flow, Non-operating pension expense (income), +2 more
6 terms
Adjusted EBITDA from continuing operations financial
"Adjusted EBITDA (non-GAAP) from continuing operations of $677 million"
Adjusted operating earnings financial
"Adjusted Operating Earnings (Loss) Per Share $ 0.15"
Adjusted operating earnings are a company’s profit from its regular business activities after removing one-time, unusual or non-core items (like restructuring charges, asset sales, or litigation costs) so you see the underlying performance. Investors use this figure like a trimmed-down view of earnings—similar to judging a car’s fuel efficiency without counting one-off repair bills—to compare companies and assess whether operating results are sustainable.
Free cash flow financial
"Free cash flow (non-GAAP) of $94 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Non-operating pension expense (income) financial
"Non-operating pension expense (income) represents amortization of prior service cost"
Goodwill impairment financial
"Includes a charge of $2.5 billion ... for the non-cash impairment of goodwill in our PS EMEA business"
Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.
Variable interest entities financial
"Long-Term Financial Assets of Variable Interest Entities $ 2,354"
A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.
Earnings Snapshot
Net sales: $5.97 billion · Guidance included
Q1 2026
Net sales
$5.97 billion
vs $5.26 billion in Q1 2025
Earnings from continuing operations
$76 million
vs $(124) million in Q1 2025
Diluted EPS from continuing operations
$0.14
vs $(0.28) in Q1 2025
Adjusted EBITDA from continuing operations
$677 million
vs $689 million in Q1 2025
Free cash flow
$94 million
vs $(618) million in Q1 2025
Guidance
Adjusted EBITDA from continuing operations targeted at $520–$570 million for Q2 2026 and $3.20–$3.50 billion for full-year 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 30, 2026
(Exact name of registrant as specified in its charter)
Commission file number 1-3157
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | ||||
(Address of Principal Executive Offices) | (Zip Code) | ||||
Registrant's telephone number, including area code: (901 ) 419-9000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Common Stock, $1 per share par value | IPC | London Stock Exchange | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
EXPLANATORY NOTE
The information in this Current Report on Form 8-K (the "Report"), including the exhibit, is furnished pursuant to Item 2.02 and General Instruction B.2 thereunder. Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
SECTION 2. FINANCIAL INFORMATION.
Item 2.02. Results of Operations and Financial Condition.
On April 30, 2026, International Paper Company (the “Company”) issued a press release announcing its preliminary, unaudited financial results for the fiscal quarter ended March 31, 2026. The Company will host a webcast and conference call today to discuss results for the fiscal quarter ended March 31, 2026. During the call, the Company will also provide an update on the separation of our Europe, Middle East and Africa packaging business and adjust its 2026 full year target. Attached as Exhibit 99.1 and incorporated herein by reference is a copy of the press release.
SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibit is being furnished as part of this Report.
| Exhibit Number | Description | |||||||
| 99.1 | Press Release of International Paper Company dated April 30, 2026 | |||||||
EXHIBIT INDEX
| Exhibit Number | Description | |||||||
| 99.1 | Press Release of International Paper dated April 30, 2026. | |||||||
| 101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted as Inline XBRL. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| International Paper Company | ||||||||||||||
| Date: | April 30, 2026 | By: | /s/ Holly G. Goughnour | |||||||||||
| Name: | Holly G. Goughnour | |||||||||||||
| Title: | Vice President - Chief Accounting Officer | |||||||||||||
Exhibit 99.1
News Release
International Paper Reports First Quarter 2026 Results
FIRST QUARTER 2026 FINANCIAL SUMMARY
•Net sales of $5.97 billion
•Earnings from continuing operations of $76 million
•Adjusted EBITDA (non-GAAP) from continuing operations of $677 million
•Received $1.1 billion of net proceeds from the sale of the Global Cellulose Fibers business and paid down $660 million of debt
•Cash provided by operating activities of $611 million
•Free cash flow (non-GAAP) of $94 million
2026 FINANCIAL TARGETS
•Adjusted EBITDA (non-GAAP) from continuing operations
◦Second quarter: $520-$570 million
◦Full-Year: $3.20-$3.50 billion
MEMPHIS, Tenn. – April 30, 2026 – International Paper (NYSE: IP; LSE: IPC) (the "Company") today announced results for the quarter ended March 31, 2026.
“This quarter, we delivered meaningful progress across the business. In North America, our commercial actions are gaining traction and helping us outgrow the market, while we advance cost-out efforts and make solid gains in mill and box plant productivity. In EMEA, we're accelerating commercial and cost initiatives while a small core team is focusing on the planned separation,” said International Paper Chairman and CEO Andy Silvernail. “We still have work to do to improve consistency and reliability, but the primary pressures this quarter came from a tougher macro environment, including ongoing inflation and the severe winter storm.”
“Looking ahead,” Silvernail added, “our priorities are clear: execute with discipline, improve reliability and performance across our network and manage capital with rigor. We're updating our outlook to reflect the volatile environment, with a strong focus on managing cost and cash flow. We remain confident in our strategy, and the planned separation will enable our North America and EMEA businesses to operate independently and deliver stronger performance.”
Select Financial Measures
The preliminary first quarter 2026 results discussed in this release will be finalized in our Quarterly Report on Form 10-Q, which we intend to file with the U.S. Securities and Exchange Commission on May 5, 2026.
| (In millions) | First Quarter 2026 | First Quarter 2025 | Fourth Quarter 2025 | ||||||||||||||||||||
Net Sales | $ | 5,971 | $ | 5,264 | $ | 6,006 | |||||||||||||||||
| Earnings (Loss) from Continuing Operations | 76 | (124) | (2,363) | ||||||||||||||||||||
| Adjusted EBITDA from Continuing Operations | 677 | 689 | 758 | ||||||||||||||||||||
Adjusted Operating Earnings (Loss) | 81 | 73 | (43) | ||||||||||||||||||||
Cash Provided By (Used For) Operating Activities | 611 | (288) | 905 | ||||||||||||||||||||
Free Cash Flow | 94 | (618) | 255 | ||||||||||||||||||||
Diluted EPS from Continuing Operations and Adjusted Operating EPS
| First Quarter 2026 | First Quarter 2025 | Fourth Quarter 2025 | |||||||||||||||||||||
Diluted Earnings (Loss) Per Share from Continuing Operations | $ | 0.14 | $ | (0.28) | $ | (4.48) | |||||||||||||||||
Add Back – Non-Operating Pension Expense (Income) | (0.03) | 0.01 | (0.01) | ||||||||||||||||||||
Add Back – Net Special Items Expense (Income) | 0.05 | 0.54 | 4.98 | ||||||||||||||||||||
| Income Taxes - Non-Operating Pension and Special Items | (0.01) | (0.10) | (0.57) | ||||||||||||||||||||
Adjusted Operating Earnings (Loss) Per Share | $ | 0.15 | $ | 0.17 | $ | (0.08) | |||||||||||||||||
NON-GAAP MEASURES
This release refers to the non-GAAP financial measures defined below. The Company believes that these non-GAAP financial measures, when viewed alongside the most directly comparable GAAP measures, provides for a more complete analysis of the Company's results from continuing operations. Reconciliations to the most directly comparable GAAP measures and an explanation of why management believes these non-GAAP financial measures provide useful information to investors are included later in this release.
Adjusted EBITDA from continuing operations is a non-GAAP financial measure defined as earnings (loss) from continuing operations (a GAAP measure) before income taxes, equity earnings (loss), interest expense, net, net special items, non-operating pension expense (income) and depreciation and amortization. The most directly comparable GAAP measure is earnings (loss) from continuing operations.
Adjusted operating earnings (loss) and adjusted operating earnings (loss) per share are non-GAAP financial measures defined as earnings (loss) from continuing operations (a GAAP measure) excluding net special items and non-operating pension expense (income). Earnings (loss) from continuing operations and diluted earnings (loss) per share from continuing operations are the most directly comparable GAAP measures. The Company calculates adjusted operating earnings (loss) (non-GAAP) by excluding the after-tax effect of non-operating pension expense (income) and net special items from the earnings (loss) from continuing operations reported under U.S. GAAP. Adjusted operating earnings (loss) per share is calculated by dividing adjusted operating earnings (loss) by the diluted average shares of common stock outstanding.
Free cash flow is a non-GAAP financial measure defined as cash provided by (used for) operations (a GAAP measure) less capital expenditures. The most directly comparable GAAP measure is cash provided by (used for) operations.
For discussion of net special items and non-operating pension expense (income), see the disclosure under Effects of Net Special Items and Consolidated Statement of Operations and related notes included later in this release.
SEGMENT INFORMATION
The following table presents net sales and business segment operating profit (loss), which is the Company's measure of segment profitability. Business segment operating profit (loss) is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments and is presented in our financial statement footnotes in accordance with ASC 280 - "Segment Reporting". First quarter 2026 net sales by business segment and operating profit (loss) by business segment compared with the fourth quarter of 2025 and the first quarter of 2025 are as follows:
Business Segment Results
| (In millions) | First Quarter 2026 | First Quarter 2025 | Fourth Quarter 2025 | ||||||||||||||||||||
| Net Sales by Business Segment | |||||||||||||||||||||||
| Packaging Solutions North America | $ | 3,626 | $ | 3,702 | $ | 3,715 | |||||||||||||||||
| Packaging Solutions EMEA | 2,323 | 1,550 | 2,300 | ||||||||||||||||||||
| Corporate and Inter-segment Sales | 22 | 12 | (9) | ||||||||||||||||||||
| Net Sales | $ | 5,971 | $ | 5,264 | $ | 6,006 | |||||||||||||||||
| Business Segment Operating Profit (Loss) | |||||||||||||||||||||||
| Packaging Solutions North America | $ | 248 | $ | 142 | $ | 319 | |||||||||||||||||
| Packaging Solutions EMEA | (51) | 46 | (223) | ||||||||||||||||||||
Packaging Solutions North America (PS NA) business segment operating profit (loss) in the first quarter of 2026 was $248 million compared with $319 million in the fourth quarter of 2025. In the first quarter of 2026, net sales decreased as higher export pricing and a favorable mix were more than offset by seasonally lower volumes. Cost of products sold increased driven by higher operating costs and input costs, partially offset by lower planned maintenance outage costs. Operating costs were unfavorably affected by winter storm impacts and higher costs for goods and services which more than offset footprint cost out benefits and improved mill and box system productivity. Input costs also increased due to higher natural gas costs and utility costs driven by the winter storm. Planned maintenance outage costs were lower due to the deferral of an outage to the second quarter of 2026.
Packaging Solutions EMEA (PS EMEA) business segment operating profit (loss) in the first quarter of 2026 was $(51) million compared with $(223) million in the fourth quarter of 2025. Net sales increased in the first quarter of 2026 compared with the fourth quarter of 2025, reflecting higher sales volumes. Sales prices for paper were lower but were offset by improved packaging margins. Cost of products sold increased driven by higher sales volumes and slightly higher energy costs. Planned maintenance outage costs were lower in the first quarter of 2026 compared with the fourth quarter of 2025. Depreciation and amortization expense was lower as the fourth quarter of 2025 was impacted by the finalization of the acquisition accounting of DS Smith and higher accelerated depreciation associated with mill and plant closures.
EFFECTS OF NET SPECIAL ITEMS
Continuing Operations
Net special items include items considered by management to not be reflective of the Company's underlying operations. Net special items in the first quarter of 2026 amount to a net after-tax charge of $19 million ($0.04 per diluted share) compared with a net after-tax charge of $195 million ($0.44 per diluted share) in the first quarter of 2025 and a net after-tax charge of $2.32 billion ($4.41 per diluted share) in the fourth quarter of 2025. Net special items in all periods include the following charges (benefits):
| First Quarter 2026 | First Quarter 2025 | Fourth Quarter 2025 | |||||||||||||||||||||||||||||||||||||||
| (In millions) | Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax | |||||||||||||||||||||||||||||||||||
| Severance and other costs | $ | 23 | $ | 17 | (a) | $ | 83 | $ | 63 | (a) | $ | 162 | $ | 128 | (a) | ||||||||||||||||||||||||||
| PS EMEA separation costs | 11 | 8 | (b) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| PS EMEA goodwill impairment | — | — | — | — | 2,467 | 2,196 | (c) | ||||||||||||||||||||||||||||||||||
| DS Smith combination costs (benefits) | — | — | 221 | 183 | (b) | 10 | 8 | (b) | |||||||||||||||||||||||||||||||||
| Net (gains) losses on sales and impairments of businesses | — | — | — | — | 10 | 8 | (d) | ||||||||||||||||||||||||||||||||||
| Income tax refund interest | (11) | (8) | (e) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Net (gains) losses on sales and impairments of assets | — | — | (67) | (51) | (f) | (18) | (12) | (f) | |||||||||||||||||||||||||||||||||
| Other | 3 | 2 | — | — | (5) | (4) | |||||||||||||||||||||||||||||||||||
Total special items, net | $ | 26 | $ | 19 | $ | 237 | $ | 195 | $ | 2,626 | $ | 2,324 | |||||||||||||||||||||||||||||
| (a) | Severance and other costs associated with the Company's 80/20 strategic approach which includes the realignment of resources and mill strategic actions. See note (e) of the Consolidated Statement of Operations. | ||||
| (b) | Transaction, integration and other costs/benefits that the Company believes are not reflective of the Company's underlying operations. See notes (a), (b), and (d) of the Consolidated Statement of Operations. | ||||
| (c) | Non-cash goodwill impairment related to the Company's PS EMEA business segment. See note (f) of the Consolidated Statement of Operations. | ||||
| (d) | Includes charges related to the sale of the Company's kraft paper bag business and the sale of five European box plants in Mortagne, Saint-Amand and Cabourg (France), Ovar (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection with the DS Smith combination. See note (g) of the Consolidated Statement of Operations. | ||||
| (e) | Interest income related to an income tax refund. See note (i) of the Consolidated Statement of Operations. | ||||
| (f) | Includes gains on assets sales related to our permanently closed Courtland, Alabama paper mill and Orange, Texas containerboard mill and net charges associated with the sale of the Company's aircraft and other assets. See note (h) of the Consolidated Statement of Operations. | ||||
EARNINGS WEBCAST
The Company will host a webcast today to discuss first quarter 2026 earnings, provide an update on the continued separation of its EMEA packaging business and review current market conditions as well as its full-year outlook, beginning at 10 a.m. ET (9 a.m. CT). All interested parties are invited to listen to the webcast via the Company’s website by clicking on the Investors tab and going to the Events & Presentations page at https://www.internationalpaper.com/investors/events-presentations. A replay of the webcast will also be on the website beginning approximately two hours after the call.
Parties who wish to participate in the webcast via teleconference may dial +1 (646) 307-1963 or, within the U.S. only, (800) 715-9871, and ask to be connected to the International Paper first quarter 2026 earnings call. The conference ID number is 4841889. Participants should call in no later than 9:45 a.m. ET (8:45 a.m. CT). An audio-only replay will be available for ninety days following the call. To access the replay, dial +1 (609) 800-9909 or, within the U.S. only, (800) 770-2030 and when prompted for the conference ID, enter 4841889.
ABOUT INTERNATIONAL PAPER (NYSE: IP; LSE: IPC)
International Paper creates sustainable packaging solutions that enable our customers, teammates and shareowners to thrive in an ever-changing world. We are a leader in corrugated packaging, partnering with customers across industries to protect what matters most, strengthen supply chains and create lasting value. Learn more at internationalpaper.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as “expects,” “anticipates,” “believes,” “estimates,” “could,” “should,” “can,” “forecast,” “outlook,” “intend,” “look,” “may,” “will,” “remain,” “confident,” “commit,” “plan,” and “preliminary” or similar expressions. These statements are not guarantees of future performance and reflect management’s current views and speak only as to the dates the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding anticipated financial results, economic conditions, industry trends, future prospects, and the anticipated benefits, execution and consummation of strategic corporate transactions. Factors which could cause actual results to differ include but are not limited to: (i) our ability to consummate and achieve the benefits expected from, and other risks, costs and expenses associated with, our plans to separate our North America and Europe, Middle East and Africa (“EMEA”) operations into two independent public companies and other acquisitions, joint ventures, divestitures, spinoffs, capital investments and other corporate transactions on a timely basis or at all, including the risk that an impairment charge may be recorded for goodwill or other intangible assets, which may lead to decreased assets and reduced net earnings; (ii) our ability to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from acquired companies; (iii) risks associated with our strategic business decisions including facility closures, business exits, operational changes, corporate restructurings and portfolio rationalizations intended to support the Company’s 80/20 strategic approach for long-term growth; (iv) our failure to comply with the obligations associated with being a public company listed on the New York Stock Exchange and the London Stock Exchange and the costs associated therewith; (v) risks with respect to climate change and global, regional, and local weather conditions, as well as risks related to our targets and goals with respect to climate change and the emission of greenhouse gases and other environmental, social and governance matters, including our ability to meet such targets and goals; (vi) loss contingencies and pending, threatened or future litigation, including with respect to environmental and antitrust related matters; (vii) the level of our indebtedness, risks associated with our variable rate debt and changes in interest rates; (viii) the impact of global and domestic economic conditions and industry conditions, including with respect to current challenging macroeconomic conditions, inflationary pressures and changes in the cost or availability of raw materials, energy price increases or shortages in energy sources and transportation sources, supply chain shortages and disruptions, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products, and conditions impacting the credit, capital and financial markets; (ix) risks arising from conducting business internationally, domestic and global
geopolitical conditions and tensions involving military conflict and geopolitical tensions (including major global actors such as Russia, the Middle East, the further expansion of such conflicts and tensions, and the geopolitical and economic consequences associated therewith), changes in currency exchange rates, including in light of our assets, liabilities and earnings denominated in foreign currencies as we proceed with the planned separation of our North America and EMEA packaging business, trade policies (including but not limited to protectionist measures and the imposition of new or increased tariffs as well as the potential impact of retaliatory tariffs and other penalties including retaliatory policies against the United States) and global trade tensions, downgrades in our credit ratings, and/or the credit ratings of banks issuing certain letters of credit, issued by recognized credit rating organizations; (x) the amount of our future pension funding obligations, and pension and healthcare costs; (xi) the costs of compliance, or the failure to comply with, existing, evolving or new environmental (including with respect to climate change and greenhouse gas emissions), tax, trade, labor and employment, privacy, anti-bribery and anti-corruption, and other U.S. and non-U.S. governmental laws, regulations and policies (including but not limited to those in the United Kingdom and European Union); (xii) a material disruption at any of our manufacturing facilities or other adverse impact on our operations due to severe weather, natural disasters, climate change or other causes; (xiii) cybersecurity and information technology risks, including as a result of security breaches and cybersecurity incidents; (xiv) our exposure to claims under our agreements with Sylvamo Corporation; (xv) our ability to attract and retain qualified personnel and maintain good employee or labor relations; (xvi) our ability to maintain effective internal control over financial reporting; and (xvii) our ability to adequately secure and protect our intellectual property rights. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements can be found in our press releases and reports filed with the U.S. Securities and Exchange Commission. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
###
Contacts:
Media: newsroom@ipaper.com Investors: Mandi Gilliland; 901-419-4595; Michele Vargas, 901-419-7287.
INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Operations
Preliminary and Unaudited
(In millions, except per share amounts)
| Three Months Ended March 31, | Three Months Ended December 31, | |||||||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||||||
| Net Sales | $ | 5,971 | $ | 5,264 | $ | 6,006 | ||||||||||||||
Costs and Expenses | ||||||||||||||||||||
| Cost of products sold | 4,244 | 3,805 | (a) | 4,123 | (a) | |||||||||||||||
| Selling and administrative expenses | 510 | (b) | 487 | (b) | 545 | (b) | ||||||||||||||
| Depreciation and amortization | 489 | (c) | 520 | (c) | 697 | (c) | ||||||||||||||
| Distribution expenses | 513 | 417 | 543 | |||||||||||||||||
| Taxes other than payroll and income taxes | 41 | 87 | (d) | 42 | ||||||||||||||||
| Restructuring charges, net | 23 | (e) | 83 | (e) | 162 | (e) | ||||||||||||||
| Impairment of goodwill | — | — | 2,467 | (f) | ||||||||||||||||
| Net (gains) losses on sales and impairments of businesses | — | — | 10 | (g) | ||||||||||||||||
| Net (gains) losses on sales and impairments of assets | — | (67) | (h) | (18) | (h) | |||||||||||||||
| Interest expense, net | 76 | (i) | 84 | 95 | ||||||||||||||||
| Non-operating pension expense (income) | (18) | 3 | (6) | |||||||||||||||||
| Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings (Loss) | 93 | (155) | (2,654) | |||||||||||||||||
| Income tax provision (benefit) | 17 | (32) | (291) | (j) | ||||||||||||||||
Equity earnings (loss), net of taxes | — | (1) | — | |||||||||||||||||
| Earnings (Loss) From Continuing Operations | 76 | (124) | (2,363) | |||||||||||||||||
| Discontinued Operations, net of taxes | (16) | (k) | 19 | (k) | (21) | (k) | ||||||||||||||
| Net Earnings (Loss) | $ | 60 | $ | (105) | $ | (2,384) | ||||||||||||||
| Basic Earnings (Loss) Per Common Share | ||||||||||||||||||||
| Earnings (loss) from continuing operations | $ | 0.14 | $ | (0.28) | $ | (4.48) | ||||||||||||||
| Discontinued operations | (0.03) | 0.04 | (0.04) | |||||||||||||||||
| Net earnings (loss) | $ | 0.11 | $ | (0.24) | $ | (4.52) | ||||||||||||||
| Diluted Earnings (Loss) Per Common Share | ||||||||||||||||||||
| Earnings (loss) from continuing operations | $ | 0.14 | $ | (0.28) | $ | (4.48) | ||||||||||||||
| Discontinued operations | (0.03) | 0.04 | (0.04) | |||||||||||||||||
| Net earnings (loss) | $ | 0.11 | $ | (0.24) | $ | (4.52) | ||||||||||||||
| Average Shares of Common Stock Outstanding - Diluted | 531.8 | 437.6 | 528.0 | |||||||||||||||||
The accompanying notes are an integral part of this Consolidated Statement of Operations.
| (a) | Includes a pre-tax charge of $70 million ($52 million after taxes) for the three months ended March 31, 2025 for the inventory step-up recognized in purchase accounting related to the DS Smith combination and a pre-tax benefit of $5 million ($4 million after taxes) for the three months ended December 31, 2025 for other items. | ||||
| (b) | Includes a pre-tax charge of $11 million ($8 million after taxes) for the three months ended March 31, 2026 for costs associated with the announced separation of our PS EMEA business, pre-tax charges of $101 million ($81 million after taxes) and $10 million ($8 million after taxes) for the three months ended March 31, 2025 and December 31, 2025, respectively, for transaction costs and integration costs associated with the DS Smith combination and a pre-tax charge of $3 million ($2 million after taxes) for the three months ended March 31, 2026 for other costs. | ||||
| (c) | Includes pre-tax charges of $16 million, $197 million and $86 million for the three months ended March 31, 2026, March 31, 2025 and December 31, 2025, respectively, for accelerated depreciation associated with our site closures. | ||||
| (d) | Includes a pre-tax charge of $50 million (before and after taxes) for the three months ended March 31, 2025 for a UK stamp tax associated with the DS Smith combination. | ||||
| (e) | Includes pre-tax charges of $23 million ($17 million after taxes), $83 million ($63 million after taxes) and $162 million ($128 million after taxes) for the three months ended March 31, 2026, March 31, 2025 and December 31, 2025, respectively, for severance and other costs related to our mill closures and 80/20 strategic actions. | ||||
| (f) | Includes a charge of $2.5 billion (before and after taxes) for the three months ended December 31, 2025 for the non-cash impairment of goodwill in our PS EMEA business. | ||||
| (g) | Includes a pre-tax charge of $5 million ($4 million after taxes) for the three months ended December 31, 2025 related to the sale of our kraft paper bag business and a pre-tax charge of $5 million ($4 million after taxes) for the three months ended December 31, 2025 related to the sale of five European box plants in Mortagne, Saint-Amand, and Cabourg (France), Ovar (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection with the DS Smith combination. | ||||
| (h) | Includes a pre-tax gain of $62 million ($47 million after taxes) for the three months ended March 31, 2025 for asset sales related to our permanently closed Orange, Texas containerboard mill, a pre-tax gain of $5 million ($4 million after taxes) and charge of $7 million (before and after taxes) for the three months ended March 31, 2025 and December 31, 2025, respectively, related to miscellaneous land sales and other items, a pre-tax charge of $2 million ($1 million after taxes) for the three months ended December 31, 2025 related to the sale of aircraft assets and a pre-tax gain of $27 million ($20 million after taxes) for the three months ended December 31, 2025 for asset sales related to our permanently closed Courtland, Alabama paper mill. | ||||
| (i) | Includes pre-tax income of $11 million ($8 million after taxes) for the three months ended March 31, 2026 for interest income related to an income tax refund. | ||||
| (j) | Includes a deferred tax benefit of $271 million for the three months ended December 31, 2025 related to the EMEA goodwill impairment. This deferred tax benefit is expected to offset cash taxes in 2027. | ||||
| (k) | Includes the results for the former Global Cellulose Fibers business which was sold on January 23, 2026. | ||||
INTERNATIONAL PAPER COMPANY
Reconciliation of Earnings (Loss) from Continuing Operations to Adjusted Operating Earnings (Loss)
Preliminary and Unaudited
(In millions, except per share amounts)
| Three Months Ended March 31, | Three Months Ended December 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||||
| Earnings (Loss) from Continuing Operations | $ | 76 | $ | (124) | $ | (2,363) | |||||||||||||||||
| Add back: Non-operating pension expense (income) | (18) | 3 | (6) | ||||||||||||||||||||
| Add back: Net special items expense (income) | 26 | 237 | 2,626 | ||||||||||||||||||||
| Income taxes - Non-operating pension and special items | (3) | (43) | (300) | ||||||||||||||||||||
| Adjusted Operating Earnings (Loss) | $ | 81 | $ | 73 | $ | (43) | |||||||||||||||||
| Three Months Ended March 31, | Three Months Ended December 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||||
| Diluted Earnings (Loss) per Common Share from Continuing Operations | $ | 0.14 | $ | (0.28) | $ | (4.48) | |||||||||||||||||
| Add back: Non-operating pension expense (income) | (0.03) | 0.01 | (0.01) | ||||||||||||||||||||
| Add back: Net special items expense (income) | 0.05 | 0.54 | 4.98 | ||||||||||||||||||||
| Income taxes per share - Non-operating pension and special items | (0.01) | (0.10) | (0.57) | ||||||||||||||||||||
Adjusted Operating Earnings (Loss) per Share | $ | 0.15 | $ | 0.17 | $ | (0.08) | |||||||||||||||||
Notes:
Management uses adjusted operating earnings (loss) and adjusted operating earnings (loss) per share (non-GAAP financial measures) to focus on on-going operations and believes that such non-GAAP financial measures are useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. The Company believes that these non-GAAP financial measures, viewed alongside the most directly comparable GAAP measures, provides for a more complete analysis of the Company's results from continuing operations. See the section Non-GAAP Measures included in this release for the definitions of adjusted operating earnings and adjusted operating earnings per share and the most directly comparable GAAP measures.
Non-operating pension expense (income) represents amortization of prior service cost, amortization of actuarial gains/losses, expected return on assets and interest cost. The Company excludes these amounts from adjusted operating earnings (loss) as the Company does not believe these items reflect ongoing operations. These particular pension cost elements are not directly attributable to current employee service. The Company includes service cost in our non-GAAP financial measure as it is directly attributable to employee service, and the corresponding employees' compensation elements, in connection with ongoing operations.
INTERNATIONAL PAPER COMPANY
Calculation of Adjusted EBITDA from Continuing Operations
Preliminary and Unaudited
(In millions)
| Three Months Ended March 31, | Three Months Ended December 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||||
| Earnings (Loss) From Continuing Operations | $ | 76 | $ | (124) | $ | (2,363) | |||||||||||||||||
| Add back: Income tax provision (benefit) | 17 | (32) | (291) | ||||||||||||||||||||
| Less: Equity earnings (loss), net of taxes | — | (1) | — | ||||||||||||||||||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings (Loss) | 93 | (155) | (2,654) | ||||||||||||||||||||
Interest expense, net | 76 | 84 | 95 | ||||||||||||||||||||
| Special items | 37 | 237 | 2,626 | ||||||||||||||||||||
| Non-operating pension expense (income) | (18) | 3 | (6) | ||||||||||||||||||||
| Depreciation and amortization | 489 | 520 | 697 | ||||||||||||||||||||
| Adjusted EBITDA from Continuing Operations | $ | 677 | $ | 689 | $ | 758 | |||||||||||||||||
Notes:
Management uses adjusted EBITDA from continuing operations (a non-GAAP financial measure) to focus on on-going operations and believes this measure is useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. The Company believes that adjusted EBITDA from continuing operations, viewed alongside the most directly comparable GAAP measure, provides for a more complete analysis of the Company's results from continuing operations. See the section titeld Non-GAAP Measures included in this release for the definition of adjusted EBITDA from continuing operations and the most directly comparable GAAP measure.
INTERNATIONAL PAPER COMPANY
Calculation of Adjusted EBITDA Outlook from Continuing Operations
Preliminary and Unaudited
(In millions)
| Three Months Ended June 30, 2026 | Twelve Months Ended December 31, 2026 | |||||||||||||
| Earnings (Loss) from Continuing Operations | $(19) - $31 | $965 - $1,265 | ||||||||||||
| Add back: Income tax provision (benefit) | — | — | ||||||||||||
| Less: Equity earnings (loss), net of taxes | — | — | ||||||||||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings (Loss) | $(19) - $31 | $965 - $1,265 | ||||||||||||
Interest expense, net | 92 | 370 | ||||||||||||
| Special items | — | 37 | ||||||||||||
| Non-operating pension expense (income) | (18) | (72) | ||||||||||||
| Depreciation and amortization | 465 | 1,900 | ||||||||||||
| Adjusted EBITDA from Continuing Operations | $520 - $570 | $3,200 - $3,500 | ||||||||||||
Notes:
Management uses adjusted EBITDA from continuing operations (a non-GAAP financial measure) to focus on on-going operations and believes this measure is useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. The company believes that adjusted EBITDA from continuing operations, viewed alongside the directly comparable GAAP measure, provides for a more complete analysis of the Company's results from continuing operations. See the section titled Non-GAAP Measures included in this release for the definition of adjusted EBITDA from continuing operations and the most directly comparable GAAP measure. Income tax provision (benefit) is excluded from the target setting as we are unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts, including forecasting net income for 2026. Special items excluded from the target setting are difficult to predict and quantify and may reflect the effect of future events.
INTERNATIONAL PAPER COMPANY
Condensed Consolidated Balance Sheet
Preliminary and Unaudited
(In millions)
| March 31, 2026 | December 31, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Current Assets | ||||||||||||||
| Cash and Temporary Investments | $ | 1,236 | $ | 1,145 | ||||||||||
| Restricted cash | 63 | — | ||||||||||||
| Accounts and Notes Receivable, Net | 4,022 | 3,791 | ||||||||||||
| Contract Assets | 670 | 635 | ||||||||||||
| Assets Held for Sale | 85 | 1,800 | ||||||||||||
| Inventories | 1,902 | 2,012 | ||||||||||||
| Other | 602 | 723 | ||||||||||||
| Total Current Assets | 8,580 | 10,106 | ||||||||||||
| Plants, Properties and Equipment, Net | 14,252 | 14,443 | ||||||||||||
| Goodwill | 5,297 | 5,326 | ||||||||||||
| Intangibles, Net | 4,060 | 4,043 | ||||||||||||
| Long-Term Financial Assets of Variable Interest Entities | 2,354 | 2,349 | ||||||||||||
| Right of Use Assets | 652 | 697 | ||||||||||||
| Overfunded Pension Plan Assets | 507 | 486 | ||||||||||||
| Deferred Charges and Other Assets | 732 | 514 | ||||||||||||
| Total Assets | $ | 36,434 | $ | 37,964 | ||||||||||
| Liabilities and Equity | ||||||||||||||
| Current Liabilities | ||||||||||||||
| Notes Payable and Current Maturities of Long-Term Debt | $ | 918 | $ | 992 | ||||||||||
| Liabilities Held for Sale | 6 | 502 | ||||||||||||
| Accounts Payable and Other Current Liabilities | 6,149 | 6,405 | ||||||||||||
| Total Current Liabilities | 7,073 | 7,899 | ||||||||||||
| Long-Term Debt | 8,175 | 8,839 | ||||||||||||
| Deferred Income Taxes | 1,963 | 1,898 | ||||||||||||
| Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities | 2,129 | 2,127 | ||||||||||||
| Long-Term Lease Obligations | 450 | 486 | ||||||||||||
| Underfunded Pension Benefit Obligation | 297 | 316 | ||||||||||||
| Postretirement and Postemployment Benefit Obligation | 131 | 133 | ||||||||||||
| Other Liabilities | 1,408 | 1,439 | ||||||||||||
| Equity | ||||||||||||||
| Common Stock | 627 | 627 | ||||||||||||
| Paid-in Capital | 14,352 | 14,414 | ||||||||||||
| Retained Earnings | 4,699 | 4,885 | ||||||||||||
| Accumulated Other Comprehensive Loss | (366) | (528) | ||||||||||||
| 19,312 | 19,398 | |||||||||||||
| Less: Common Stock Held in Treasury, at Cost | 4,504 | 4,571 | ||||||||||||
| Total Equity | 14,808 | 14,827 | ||||||||||||
| Total Liabilities and Equity | $ | 36,434 | $ | 37,964 | ||||||||||
INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Cash Flows
Preliminary and Unaudited
(In millions)
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Operating Activities | ||||||||||||||
| Net earnings (loss) | $ | 60 | $ | (105) | ||||||||||
| Depreciation and amortization | 489 | 571 | ||||||||||||
| Deferred income tax expense (benefit), net | 7 | (74) | ||||||||||||
| Restructuring charges, net | 23 | 83 | ||||||||||||
| Net (gains) losses on sales and impairments of businesses | 3 | — | ||||||||||||
| Net (gains) losses on sales and impairments of assets | — | (67) | ||||||||||||
| Periodic pension (income) expense, net | 13 | 13 | ||||||||||||
| Other, net | 52 | (87) | ||||||||||||
| Changes in operating assets and liabilities | ||||||||||||||
| Accounts and notes receivable | (158) | (178) | ||||||||||||
| Contract assets | (39) | (47) | ||||||||||||
| Inventories | 58 | 22 | ||||||||||||
| Accounts payable | 158 | 97 | ||||||||||||
| Other current liabilities | (272) | (444) | ||||||||||||
| Other current assets | 217 | (72) | ||||||||||||
| Cash Provided By (Used For) Operating Activities | 611 | (288) | ||||||||||||
| Investment Activities | ||||||||||||||
| Capital expenditures | (517) | (330) | ||||||||||||
| Acquisitions, net of cash acquired | — | 415 | ||||||||||||
| Proceeds from divestitures, net of cash divested | 1,059 | — | ||||||||||||
| Proceeds from sale of fixed assets | 21 | 83 | ||||||||||||
| Proceeds from insurance recoveries | 8 | 28 | ||||||||||||
| Other | (6) | 41 | ||||||||||||
| Cash Provided By (Used For) Investment Activities | 565 | 237 | ||||||||||||
| Financing Activities | ||||||||||||||
| Issuance of debt | — | 239 | ||||||||||||
| Reduction of debt | (660) | (6) | ||||||||||||
| Change in book overdrafts | (84) | 94 | ||||||||||||
| Repurchases of common stock and payments of restricted stock tax withholding | (30) | (62) | ||||||||||||
| Dividends paid | (245) | (244) | ||||||||||||
| Cash Provided By (Used for) Financing Activities | (1,019) | 21 | ||||||||||||
| Cash Included in Assets Held for Sale | — | (2) | ||||||||||||
| Effect of Exchange Rate Changes on Cash and Temporary Investments and Restricted Cash | (11) | 18 | ||||||||||||
| Change in Cash and Temporary Investments and Restricted Cash | 146 | (14) | ||||||||||||
| Cash and Temporary Investments and Restricted Cash | ||||||||||||||
| Beginning of the period | 1,161 | 1,170 | ||||||||||||
| End of the period | $ | 1,307 | $ | 1,156 | ||||||||||
INTERNATIONAL PAPER COMPANY
Reconciliation of Cash Provided by Operations to Free Cash Flow
Preliminary and Unaudited
(In millions)
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash Provided By (Used For) Operating Activities | $ | 611 | $ | (288) | ||||||||||
| Adjustments: | ||||||||||||||
| Capital expenditures | (517) | (330) | ||||||||||||
| Free Cash Flow | $ | 94 | $ | (618) | ||||||||||
Management uses free cash flow (a non-GAAP financial measure) in connection with managing our business and believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. See the section titled Non-GAAP Measures included in this release for the definition of free cash flow and the most directly comparable GAAP measure.
The preliminary non-GAAP financial measures presented in this release have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of preliminary non-GAAP financial measures in this release may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as International Paper.
Management believes non-GAAP financial measures, when used in conjunction with information presented in accordance with GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company’s financial results. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Investors are cautioned to not place undue reliance on any preliminary non-GAAP financial measures used in this release.
FAQ
How did International Paper (IP) perform financially in Q1 2026?
International Paper reported net sales of $5.97 billion and earnings from continuing operations of $76 million in Q1 2026. This compares with net sales of $5.26 billion and a $124 million loss from continuing operations in Q1 2025, indicating a meaningful turnaround.
What were International Paper (IP)’s key non-GAAP results for Q1 2026?
International Paper’s Q1 2026 adjusted EBITDA from continuing operations was $677 million, slightly below $689 million a year earlier. Adjusted operating earnings were $81 million, or $0.15 per share, versus $73 million and $0.17 per share in Q1 2025, reflecting stable underlying performance.
How did cash flow and free cash flow trend for International Paper (IP) in Q1 2026?
Cash provided by operating activities reached $611 million in Q1 2026, compared with $(288) million in Q1 2025. Free cash flow improved to $94 million from a $(618) million deficit, after $517 million of capital expenditures, highlighting much stronger cash generation.
What major strategic transaction did International Paper (IP) complete in early 2026?
International Paper completed the sale of its former Global Cellulose Fibers business, receiving $1.1 billion of net proceeds. The company used $660 million of these proceeds to reduce debt, while continuing preparations to separate its EMEA packaging business from the North America operations.
What 2026 adjusted EBITDA guidance has International Paper (IP) provided?
International Paper targets adjusted EBITDA from continuing operations of $520–$570 million for Q2 2026 and $3.20–$3.50 billion for full-year 2026. These ranges reflect management’s expectations amid a volatile macro environment and ongoing separation of the EMEA packaging business.
How did International Paper’s (IP) North America and EMEA segments perform in Q1 2026?
Packaging Solutions North America generated operating profit of $248 million, down from $319 million in Q4 2025 due to storm and cost pressures. Packaging Solutions EMEA recorded a $51 million operating loss, improving from a $223 million loss in the prior quarter as volumes and margins improved.