International Paper Q3 2026: North America Profit Swing Powers Earnings Beat
As seen on the 24/7 Wall St. homepage on October 28, 2026.
North American packaging swung to $427 million in segment operating profit from a year-ago loss, and that turn carried the adjusted EPS beat. A non-cash goodwill writedown on the European business, set to separate as DS Smith plc, pushed the GAAP line to a loss.
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International Paper's North American packaging operation swung to a $427 million segment operating profit in Q3 2026 from a loss a year ago, driving adjusted EPS of $0.37 and beating expectations. Revenue came in below expectations and slightly lower year over year, but the North American profit recovery dominated the quarter.
Several factors drove the North American improvement at once. Higher realized prices from prior pricing actions, lower planned maintenance outage costs, better mill performance, and the contribution of a full quarter of NORPAC mill earnings, compared to just one month in Q2 2026, all combined to lift results. CEO Andy Silvernail described the quarter as reflecting meaningful progress on strategy despite persistent macro headwinds, pointing to a structurally lower-cost business taking shape in North America.
The GAAP picture was a different story. A non-cash goodwill impairment charge of $1.377 billion on the European packaging segment pushed the GAAP result to a per-share loss. The charge is tied to the planned separation of that business as DS Smith plc, and the company is no longer providing financial guidance for the EMEA segment given U.K. regulatory requirements around the separation.
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Europe continued to weigh on overall results operationally as well, with the Packaging Solutions EMEA segment posting a $73 million operating loss amid soft demand and box prices that have not yet caught up to higher paper input costs. Management is still executing cost-out and restructuring initiatives there, but the macro environment remains a headwind to margin recovery.
International Paper guided Q4 2026 North America segment operating profit to a range of $460 to $500 million, with full-year guidance also raised in step. The DS Smith leadership team holds a Capital Markets Day in London on November 3, 2026, the first detailed look investors get at the strategy and financial outlook for that business as a standalone company.