International Paper Company (NYSE:IP) reported second-quarter 2026 results that exceeded earnings expectations, although revenue came in below Wall Street forecasts. Investors responded positively, with the company’s shares rising 1.4% in premarket trading following the announcement.
The packaging and paper producer continued to make progress on operational improvements while advancing several strategic projects during the quarter.
Earnings Beat Expectations as Revenue Declines
International Paper posted adjusted earnings of $0.04 per share, outperforming analysts’ expectations for a loss of $0.04 per share.
Revenue totaled $6.00 billion, missing the consensus estimate of $6.23 billion and declining 2.2% from the $6.14 billion reported in the same quarter last year.
Adjusted EBITDA from continuing operations came in at $587 million, compared with $670 million in the second quarter of 2025.
The company also reported a loss from continuing operations of $12 million, or $0.02 per diluted share, versus net income of $75 million, or $0.14 per diluted share, a year earlier.
Company Forecasts Stronger Second Half
Looking ahead, International Paper expects adjusted EBITDA for the third quarter to range between $780 million and $830 million.
The outlook includes an estimated $85 million negative impact from the temporary closure of its Pine Hill mill in Alabama. Even with that headwind, the midpoint of the guidance, $805 million, represents a significant improvement from the $587 million generated during the second quarter.
For full-year 2026, the company maintained adjusted EBITDA guidance of between $3.20 billion and $3.40 billion.
North America Offsets Weakness in Europe
“Our teams delivered strong second quarter results as execution continued to improve across the company,” said Chairman and CEO Andy Silvernail. “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.”
The Packaging Solutions North America business generated operating profit of $204 million on net sales of $3.69 billion.
Meanwhile, the Packaging Solutions EMEA division reported an operating loss of $80 million on net sales of $2.29 billion, as softer market conditions, geopolitical uncertainty and cautious consumer sentiment weighed on performance.
Strategic Investments Continue
International Paper generated $526 million in cash from operating activities during the quarter, while free cash flow was negative $7 million.
The company also completed several strategic initiatives, including the Riverdale machine conversion and the acquisitions of the NORPAC mill in Longview, Washington, and the Delmarva corrugated packaging facility in Dover, Delaware.
International Paper stock price
