International Paper Shares Fall 3.1% as Q3 Revenue Misses Forecasts Despite Earnings Beat

International Paper Company (NYSE:IP) shares declined 3.1% on Wednesday after the packaging manufacturer reported third-quarter 2026 revenue below analyst expectations, despite delivering higher-than-forecast adjusted earnings per share.

The company reported adjusted earnings per share of $0.37, exceeding the consensus estimate of $0.28. Revenue reached $6.2 billion, below analysts’ expectations of $6.26 billion and slightly lower than the $6.22 billion recorded in the corresponding period of 2025.

International Paper also reported a $1.10 billion loss from continuing operations, including a substantial non-cash impairment charge related to its European packaging business.

European Impairment Contributes to Quarterly Loss

International Paper recorded a $1.38 billion non-cash goodwill impairment charge associated with its Packaging Solutions EMEA segment, which covers Europe, the Middle East and Africa.

The charge contributed to the company’s reported loss from continuing operations, despite adjusted earnings exceeding market forecasts.

The results reflected continuing challenges in the European packaging market, alongside broader economic pressures affecting demand.

Chairman and Chief Executive Officer Andy Silvernail acknowledged the operating environment while highlighting progress in North America.

“Our third-quarter results reflect meaningful progress on our strategy despite persistent macro headwinds,” Silvernail said. “In North America, we are improving our operational performance, building a structurally lower-cost business and realizing the benefits of prior pricing actions.”

North American Operating Profit Improves

International Paper’s Packaging Solutions North America segment reported operating profit of $427 million, compared with $204 million in the previous quarter.

The improvement was primarily driven by higher selling prices and reduced costs associated with planned maintenance shutdowns.

However, weaker demand volumes partially offset these benefits.

The increase in operating profit reflects the contribution from earlier pricing measures and the company’s efforts to reduce operating costs.

North America remains a central focus of International Paper’s operational improvement strategy as the company works to strengthen profitability.

International Paper Provides Fourth-Quarter Guidance

For the fourth quarter of 2026, International Paper expects Packaging Solutions North America operating profit of between $460 million and $500 million.

The midpoint of the forecast is $480 million, representing an increase from the $427 million reported in the third quarter.

For the full year, the company anticipates North American operating profit of approximately $1.3 billion to $1.4 billion.

International Paper also expects full-year adjusted EBITDA of between $2.27 billion and $2.31 billion.

The forecasts reflect expectations for continued operational improvements in North America, supported by pricing measures and cost management.

EMEA Guidance Withdrawn Ahead of Planned Separation

International Paper confirmed that it is no longer providing financial guidance for its Packaging Solutions EMEA business.

The decision is linked to the planned separation of the business and applicable regulatory requirements in the United Kingdom.

The withdrawal of EMEA guidance follows the recognition of the $1.38 billion goodwill impairment charge during the third quarter.

The company continues to provide financial expectations for its North American operations while progressing the planned separation.

International Paper Outlook

International Paper’s third-quarter results presented a mixed financial performance, with adjusted earnings per share exceeding analyst expectations while revenue fell short of forecasts.

The company recorded a substantial reported loss following the goodwill impairment of its EMEA business, although North American operating profit improved significantly from the previous quarter.

For the fourth quarter, International Paper expects further growth in North American operating profit, with full-year adjusted EBITDA guidance of $2.27 billion to $2.31 billion.

Shares declined 3.1% following the announcement as investors assessed the revenue shortfall, European market conditions and the company’s financial outlook.

International Paper stock price