International Paper (IP) Q2 2026 Earnings
Adjusted figure excludes net special items of $54 million pre-tax ($42 million after tax, $0.08 per diluted share), including $43 million PS EMEA separation costs, $9 million severance, $5 million NORPAC transaction costs and an $11 million gain on sale of Chile box plant; also excludes non-operating pension income of $16 million. GAAP diluted EPS from continuing operations was $(0.02).
How Did IP Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: +3.42%.
Did IP Beat Earnings? Q2 2026 Results
Yes. International Paper reported Q2 2026 earnings of $0.04 a share on Jul 30, 2026, beating the $-0.04 consensus estimate by 205.5%. Revenue was $6.0B against a $6.2B estimate.
International Paper delivered a bruising second quarter, posting adjusted EPS of $0.04 against a consensus that hovered just below breakeven, while revenue of $6.00 billion missed estimates by 3.35% and fell 11.3% from a year ago, underscoring the strain of a softening demand environment on both sides of the Atlantic. The headline numbers masked a GAAP loss from continuing operations, weighed down by $42 million in after-tax special charges tied largely to the ongoing separation of its EMEA packaging business. Adjusted EBITDA from continuing operations slipped to $587 million, well below the $670 million recorded in Q2 2025, as the EMEA segment posted an operating loss of $80 million on weak volumes and packaging margin pressure. Looking ahead, management guided Q3 adjusted EBITDA to $780 million to $830 million, though that range already absorbs an $85 million headwind from the temporary closure of its Pine Hill, Alabama mill; full-year 2026 adjusted EBITDA is targeted at $3.20 billion to $3.40 billion. At least one analyst lifted their price target following the report, citing confidence in the company's longer-term strategic repositioning.
- PS NA net sales rose sequentially on higher prices, higher volumes, one additional shipping day and favorable mix from lower export sales
- PS NA costs rose on higher planned maintenance outages and Riverdale machine conversion costs
- PS NA benefited from stronger mill performance, additional Ixtac insurance recovery and non-repeat of winter storm impacts
- PS EMEA volumes declined in a soft market driven by geopolitical uncertainty and consumer sentiment
- PS EMEA packaging margins squeezed by higher paper prices not yet realized in box pricing
- PS EMEA cost-out actions and lower energy costs, including subsidies, partly offset weakness
- Higher recovered fiber and freight costs
“Our teams delivered strong second quarter results as execution continued to improve across the company. In North America, we improved mill performance and successfully completed the Riverdale machine conversion, while continuing to grow box volumes and remain on track to outperform the market. In EMEA, we accelerated cost-out actions, advanced transformational investments and continued preparing for the separation as previously communicated.”
International Paper CEO, on the earnings call
What Was International Paper's Outlook in Q2 2026?
For Q3 2026, International Paper targets adjusted EBITDA from continuing operations of $780-$830 million, including an $85 million negative impact from the temporary closure of its Pine Hill, Alabama mill. Expected Q3 earnings from continuing operations are $215-$260 million, with D&A of $491 million and net interest expense of $90-$95 million. For full-year 2026, the company targets adjusted EBITDA of $3.20-$3.40 billion, with earnings from continuing operations of $843-$1,043 million. Second-half priorities include disciplined execution, improved network reliability, mitigating rising input costs, delivering commercial and cost-out initiatives, and progressing the planned EMEA separation.
IP YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $6.0B | $6.8B | −11.3% |
IP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.