International Paper Reports Q3 2026 Results with $1.38B EMEA Goodwill Impairment

Executive Summary

On October 28, 2026, International Paper Company (NYSE: IP) filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), furnishing its preliminary unaudited financial results for the third quarter ended September 30, 2026.

Key Financial Highlights

• Net Sales: $6.197 billion, down slightly from $6.222 billion in Q3 2025 and up from $6.004 billion in Q2 2026.
• Operating Results (GAAP): Loss from continuing operations of $(1.097) billion (or $(2.07) per diluted share), compared to a loss of $(426) million ($(0.81) per diluted share) in Q3 2025 and $(12) million ($(0.02) per diluted share) in Q2 2026.
• Goodwill Impairment: Results include a pre-tax and after-tax non-cash goodwill impairment charge of $1.38 billion related to the Packaging Solutions EMEA business segment.
• Adjusted EBITDA (Non-GAAP): $843 million, compared to $859 million in Q3 2025 and $587 million in Q2 2026.
• Adjusted Operating Earnings (Non-GAAP): $197 million, or $0.37 per diluted share, up from a loss of $(224) million ($(0.43) per share) in Q3 2025 and $18 million ($0.04 per share) in Q2 2026.
• Cash Flow: Cash provided by operating activities was $339 million, and Free Cash Flow was $(267) million.

Segment Performance

1. Packaging Solutions North America (PS NA):

   • Net Sales: $3.880 billion vs. $3.898 billion in Q3 2025 and $3.688 billion in Q2 2026.
   • Operating Profit: $427 million, improving sharply from $(166) million in Q3 2025 and $204 million in Q2 2026.
   • Key Drivers: Higher realized selling prices and improved mill performance (including non-repeat of the Riverdale paper machine conversion and a full quarter of the NORPAC acquisition) offset soft market demand volumes and higher input costs (fiber, energy, fuel).

2. Packaging Solutions EMEA (PS EMEA):

   • Net Sales: $2.280 billion vs. $2.310 billion in Q3 2025 and $2.287 billion in Q2 2026.
   • Operating Loss: $(73) million vs. $(58) million in Q3 2025 and $(80) million in Q2 2026.
   • Key Drivers: Higher paper sales prices were countered by lower sales volumes, higher energy costs, and accelerated depreciation from ongoing restructuring and cost-out initiatives.

Guidance and Strategic Outlook

• Packaging Solutions North America Targets:
  • Q4 2026 Segment Operating Profit: $460 – $500 million
  • Full-Year 2026 Segment Operating Profit: $1.3 – $1.4 billion
  • Q4 2026 Adjusted EBITDA: $700 – $740 million
  • Full-Year 2026 Adjusted EBITDA: $2.27 – $2.31 billion
• EMEA Business Separation: The company continues to advance the separation of its EMEA packaging business. Due to U.K. regulatory requirements and the pending separation, the company no longer provides standalone financial guidance for Packaging Solutions EMEA.