International Paper Company
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did IP Beat Earnings? Q1 2026 Results
International Paper delivered a mixed first quarter for 2026, posting adjusted EPS of $0.15 against a consensus estimate of $0.14 for a 6.08% beat, while revenue of $5.97 billion came in just 0.71% below expectations despite growing 1.2% year over year. The headline profit figure masked a more nuanced story: the company swung to GAAP net income of $76 million from a loss of $124 million in Q1 2025, a recovery aided by the full consolidation of DS Smith operations and the January sale of its Global Cellulose Fibers business for roughly $1.10 billion in net proceeds, $660 million of which was directed toward debt reduction. North American packaging operating profit climbed to $248 million from $142 million a year ago, though the EMEA segment remained in the red at a $51 million operating loss as it moves toward a planned separation into a standalone public company. Looking ahead, management trimmed its full-year 2026 adjusted EBITDA outlook to $3.20 to $3.50 billion and guided Q2 EBITDA to $520 to $570 million, citing tariff uncertainty and deferred maintenance outages as near-term headwinds; the company is meanwhile maintaining its quarterly dividend at $0.46 per share.
- North America commercial actions gaining traction helping outgrow the market
- Cost-out efforts and improved mill and box plant productivity in North America
- Higher export pricing and favorable mix in PS NA
- Severe winter storm increased natural gas and utility costs
- Seasonally lower volumes in PS NA
- Sale of Global Cellulose Fibers business generated $1.1 billion net proceeds
- Debt reduction of $660 million from divestiture proceeds
- PS EMEA improved significantly from Q4 due to higher volumes and lower D&A
“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.”
International Paper CEO, on the earnings call
Forward Guidance & Outlook
International Paper provided a Q2 2026 adjusted EBITDA outlook of $520–$570 million and a full-year 2026 adjusted EBITDA outlook of $3.20–$3.50 billion from continuing operations. Q2 earnings from continuing operations are expected to range from a loss of $19 million to earnings of $31 million. The company updated its outlook to reflect a volatile macroeconomic environment, with a strong focus on managing cost and cash flow. Q2 is expected to be impacted by deferred maintenance outages shifted from Q1. The planned separation of the EMEA packaging business remains on track.
IP YoY Financials
IP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.