Second Quarter 2026
Filed Jul 30, 2026International Paper reported second-quarter net sales of $6,004 million, a loss from continuing operations of $12 million, and adjusted EBITDA of $587 million, while guiding third-quarter adjusted EBITDA to $780-$830 million.
North America delivered higher sales prices, volumes and favorable mix, but continuing operations reported a $12 million loss, adjusted EBITDA was $587 million versus $670 million in the second quarter of 2025 and $677 million in the first quarter of 2026, and Packaging Solutions EMEA reported an $80 million operating loss.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net SalesGAAP | $6,004 million | – | – |
| Earnings (Loss) from Continuing OperationsGAAP | $(12) million | – | – |
| Adjusted EBITDA from Continuing Operationsnon-GAAP | $587 million | – | – |
| Adjusted Operating Earnings (Loss)non-GAAP | $18 million | – | – |
| Cash Provided By (Used For) Operating ActivitiesGAAP | $526 million | – | – |
| Free Cash Flownon-GAAP | $(7) million | – | – |
| Diluted Earnings (Loss) Per Share from Continuing OperationsGAAP | $(0.02) | – | – |
| Adjusted Operating Earnings (Loss) Per Sharenon-GAAP | $0.04 | – | – |
| Add Back – Non-Operating Pension Expense (Income) Per Shareother | $(0.03) | – | – |
| Add Back – Net Special Items Expense (Income) Per Shareother | $0.10 | – | – |
| Income Taxes - Non-Operating Pension and Special Items Per Shareother | $(0.01) | – | – |
| Net Special Items, Netother | $42 million | – | – |
| Net Special Items, Net Per Diluted Shareother | $0.08 per diluted share | – | – |
| Total Special Items, Net Before Taxother | $54 million | – | – |
| Total Special Items, Net After Taxother | $42 million | – | – |
| PS EMEA Separation Costs Before Taxother | $43 million | – | – |
| PS EMEA Separation Costs After Taxother | $32 million | – | – |
| Severance and Other Costs Before Taxother | $9 million | – | – |
| Severance and Other Costs After Taxother | $7 million | – | – |
| NORPAC Acquisition Transaction Costs Before Taxother | $5 million | – | – |
| NORPAC Acquisition Transaction Costs After Taxother | $4 million | – | – |
| Net (Gains) Losses on Sales and Impairments of Businesses Before Taxother | $(11) million | – | – |
| Net (Gains) Losses on Sales and Impairments of Businesses After Taxother | $(8) million | – | – |
| Other Special Items Before Taxother | $8 million | – | – |
| Other Special Items After Taxother | $7 million | – | – |
| Packaging Solutions North America Business Segment Operating Profitother | $204 million | – | – |
| Packaging Solutions EMEA Business Segment Operating Lossother | $(80) million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Packaging Solutions North AmericaNet sales increased reflecting higher sales prices, higher sales volumes and a favorable mix due to lower export sales. Sales volumes were higher driven by continued growth in domestic business, normal seasonal improvement and the impact of one additional shipping day. | $3,688 million | – | – |
| Packaging Solutions EMEANet sales decreased compared with the first quarter of 2026, as higher sales prices for paper were more than offset by lower sales volumes in a continued soft market driven by geopolitical uncertainty and consumer sentiment. | $2,287 million | – | – |
| Corporate and Inter-segment SalesNo driver was provided. | $29 million | – | – |
Third quarter 2026 and Full-Year 2026 outlook
- NoteAdjusted EBITDA (non-GAAP) from continuing operations, Third quarter: $780-$830 million, including $85 million negative impact of the temporary mill closure in Pine Hill, Alabama
- NoteAdjusted EBITDA (non-GAAP) from continuing operations, Full-Year: $3.20-$3.40 billion
What drove it
- Packaging Solutions North America benefited from higher sales prices, higher sales volumes, favorable mix due to lower export sales, continued domestic-business growth, seasonal improvement and one additional shipping day.
- Packaging Solutions North America input costs benefited from the non-repeat of higher natural gas costs and utility costs driven by the winter storm, partly offset by higher recovered fiber and freight costs.
- Packaging Solutions North America operating costs were slightly improved by stronger mill performance, additional Ixtac insurance recovery and the non-repeat of winter storm impacts in the first quarter of 2026.
- International Paper completed the Riverdale machine conversion and acquired the NORPAC mill in Longview, Washington, and the Delmarva corrugated packaging facility in Dover, Delaware.
- Packaging Solutions EMEA cost of products sold decreased through lower sales volumes, cost-out actions and lower energy input costs, including subsidies.
Concerns
- Packaging Solutions EMEA reported a business segment operating loss of $(80) million.
- Packaging Solutions EMEA faced a continued soft market driven by geopolitical uncertainty and consumer sentiment.
- Packaging margins in EMEA were affected by higher paper prices not yet realized in box pricing.
- Packaging Solutions North America incurred costs of the Riverdale paper machine conversion and other planned reliability spending.
- Third-quarter adjusted EBITDA guidance includes an $85 million negative impact from the temporary mill closure in Pine Hill, Alabama.
- The company cited rising input costs in a dynamic environment as a second-half priority.
What to watch
- Execution of commercial and cost-out initiatives during the second half of 2026.
- Reliability and performance improvement across the network.
- Mitigation of rising input costs, including recovered fiber and freight costs.
- Realization of higher paper prices in EMEA box pricing.
- Progress on transformational investments and the planned separation of the EMEA packaging business.
- The temporary Pine Hill, Alabama mill closure impact included in third-quarter adjusted EBITDA guidance.
Balance sheet and cash flow
- Cash provided by operating activities: $526 million
- Free cash flow (non-GAAP): $(7) million
Analysis
International Paper reported second-quarter net sales of $6,004 million, compared with $6,142 million in the second quarter of 2025 and $5,971 million in the first quarter of 2026. The company recorded a $(12) million loss from continuing operations, compared with earnings of $75 million and $76 million in the respective comparison periods. Adjusted EBITDA from continuing operations was $587 million, compared with $670 million in the second quarter of 2025 and $677 million in the first quarter of 2026. Adjusted operating earnings were $18 million, and adjusted operating earnings per share were $0.04.
Packaging Solutions North America generated $3,688 million of net sales and $204 million of business segment operating profit. Management attributed sales improvement versus the first quarter to higher prices, higher volumes and favorable mix from lower export sales. Domestic-business growth, normal seasonal improvement and one additional shipping day supported volumes. Stronger mill performance, additional Ixtac insurance recovery and the non-repeat of first-quarter winter storm impacts helped operating costs, although those benefits were mostly offset by Riverdale conversion costs and other planned reliability spending.
Packaging Solutions EMEA generated $2,287 million of net sales and a $(80) million business segment operating loss. Management said higher paper prices were more than offset by lower volumes in a continued soft market driven by geopolitical uncertainty and consumer sentiment. Cost-out actions and lower energy input costs, including subsidies, reduced cost of products sold, but higher planned maintenance outage costs, planned annual wage increases and the lag between higher paper prices and box pricing affected profitability. The company also recorded $32 million after tax of PS EMEA separation costs within special items.
Cash provided by operating activities was $526 million, while free cash flow was $(7) million. Net special items were a $42 million after-tax charge, including separation costs, severance and other costs, NORPAC acquisition transaction costs, gains on sales and impairments of businesses, and other items. The company completed the Riverdale machine conversion and the acquisitions of the NORPAC mill and Delmarva corrugated packaging facility during the quarter.
For the third quarter, International Paper guided adjusted EBITDA from continuing operations to $780-$830 million, including an $85 million negative impact from the temporary Pine Hill, Alabama mill closure. Full-year adjusted EBITDA guidance is $3.20-$3.40 billion. Management identified disciplined execution, network reliability and performance, input-cost mitigation, commercial initiatives and cost-out actions as second-half priorities, alongside preparations for the EMEA separation.
Management, verbatim
Our teams delivered strong second quarter results as execution continued to improve across the company.
Andy Silvernail, Chairman and CEO
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.
Andy Silvernail, Chairman and CEO
While there is still work to do, we are building momentum across the businesses. The progress we are making gives us confidence in our ability to deliver strong performance through the remainder of 2026 and create sustainable value for our stakeholders.
Andy Silvernail, Chairman and CEO
Not in the filing
stated, not guessed- Gross profit
- Gross margin
- Consolidated operating income or loss
- Total net income or loss attributable to International Paper
- Effective tax rate
- Capital expenditures
- Cash balance
- Debt balance
- Dividend activity
- Share repurchases
- Share count
- Revenue guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Percentage year-over-year and quarter-over-quarter changes for consolidated and segment metrics
- Segment revenue drivers for Corporate and Inter-segment Sales
- Prior-release outlook for comparison
- CFO commentary
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.