International Paper (NYSE:IP) Announces Earnings Results, Misses Expectations By $0.36 EPS

International Paper (NYSE:IP) issued its earnings results on Thursday. The basic materials company reported ($0.08) EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.36), FiscalAI reports. International Paper had a negative net margin of 5.45% and a negative return on equity of 0.16%. The firm had revenue of $6.01 billion during the quarter, compared to analysts’ expectations of $5.90 billion. During the same quarter last year, the firm earned ($0.02) EPS. The business’s revenue for the quarter was up 53.1% compared to the same quarter last year.

Here are the key takeaways from International Paper’s conference call:

• The company will split into two publicly traded regional packaging leaders — a standalone North America IP and a standalone EMEA Packaging business — via a planned spin-off (12–15 months), intended to unlock regional value through focused leadership, tailored capital allocation, and dual listings in London and New York.
• Management provided pro forma scale and explicit targets: standalone North America (FY2025 pro forma sales >$15B / adj. EBITDA ~$2.3B), EMEA (~$8.5B / adj. EBITDA ~$0.8B), and enterprise 2026 guidance of $24.1–$24.9B sales, $3.5–$3.7B adj. EBITDA and $300–$500M free cash flow, with a stated ambition of reaching $5B EBITDA by 2027.
• Price increases have been communicated to customers (price letters issued), but the 2026 guidance excludes any assumed price realization; management notes each $10/ton of price that sticks equates to roughly $90M of annualized adj. EBITDA upside.
• Execution of the 80/20 transformation is progressing: ~$710M of cost-out actions to date (including ~$510M run-rate in North America), planned incremental cost and commercial benefits in 2026 (NA: ~$500M cost / $100M commercial; EMEA: ~$200M cost / $200M commercial) and targeted investments to improve mill reliability and customer service.
• Near-term headwinds include high non-recurring transformation and reliability costs (e.g., Riverdale conversion, elevated maintenance/outages), a $958M hit from accelerated depreciation, negative FCF in 2025, potential Q1 storm impact (~$20–$25M), and management acknowledges free cash flow may not fully cover the dividend in 2026 without additional actions post-spin.

International Paper Stock Down 5.8%

Shares of IP traded down $2.42 during trading hours on Thursday, reaching $39.07. The stock had a trading volume of 16,628,910 shares, compared to its average volume of 7,131,916. The firm has a 50-day simple moving average of $40.11 and a 200 day simple moving average of $44.20. International Paper has a 12 month low of $35.56 and a 12 month high of $58.11. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $20.63 billion, a price-to-earnings ratio of -14.97, a P/E/G ratio of 0.49 and a beta of 1.10.

Wall Street Analysts Forecast Growth

Several analysts have commented on IP shares. BNP Paribas Exane raised shares of International Paper from a “strong sell” rating to an “outperform” rating and set a $44.00 target price for the company in a research report on Monday, November 24th. Citigroup reduced their price objective on shares of International Paper from $55.00 to $46.00 and set a “buy” rating for the company in a research note on Monday, November 3rd. Weiss Ratings reissued a “sell (d+)” rating on shares of International Paper in a research report on Monday, December 29th. UBS Group reduced their price target on International Paper from $53.00 to $51.00 and set a “buy” rating for the company in a research report on Monday, January 12th. Finally, Wells Fargo & Company lowered their price objective on International Paper from $44.00 to $36.00 and set an “underweight” rating on the stock in a report on Friday, October 31st. Nine equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, International Paper presently has a consensus rating of “Hold” and a consensus price target of $49.07.

Key International Paper News

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: Top-line strength — Q4 revenue beat and large year-over-year growth (sales up ~53%), with improving margins that show underlying demand recovery. Read More.
• Positive Sentiment: Strategic move that could unlock value — management announced plans to create two independent, publicly traded packaging companies (North America and EMEA) and set 2026 adjusted EBITDA targets, aiming to accelerate a path to profitable growth. Read More.
• Neutral Sentiment: Regulatory/implementation steps — IP filed Form 8‑K and provided a slide deck and conference call materials; the separation will take time and carry execution risk. Read More.
• Negative Sentiment: EPS miss and headline loss — reported adjusted EPS of ($0.08) vs. consensus $0.35, producing investor disappointment despite the revenue beat. Read More.
• Negative Sentiment: Large non‑cash charges — a ~$2.47B pre-tax goodwill impairment, accelerated depreciation and restructuring drove a wide reported loss and concern over past acquisitions and asset realizations. Read More.
• Negative Sentiment: Market reaction and sentiment — shares gave up earlier gains, trading down on heavy volume amid uncertainty about execution, integration history and near-term profitability; some brokerages retain cautious/hold views. Read More.

Insider Buying and Selling at International Paper

In other International Paper news, SVP Clay R. Ellis sold 18,819 shares of the firm’s stock in a transaction on Tuesday, November 18th. The stock was sold at an average price of $36.85, for a total transaction of $693,480.15. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 0.55% of the company’s stock.

Institutional Trading of International Paper

Large investors have recently added to or reduced their stakes in the stock. Kelleher Financial Advisors purchased a new stake in shares of International Paper in the third quarter worth about $36,000. MUFG Securities EMEA plc purchased a new stake in International Paper in the 2nd quarter worth approximately $73,000. Boothbay Fund Management LLC bought a new position in International Paper in the 3rd quarter valued at $226,000. Dynamic Technology Lab Private Ltd bought a new position in International Paper in the 1st quarter valued at $249,000. Finally, State of Wyoming increased its holdings in shares of International Paper by 163.1% in the second quarter. State of Wyoming now owns 5,446 shares of the basic materials company’s stock worth $255,000 after purchasing an additional 3,376 shares during the period. Hedge funds and other institutional investors own 81.95% of the company’s stock.

International Paper Company Profile

International Paper is a global producer of renewable fiber-based products, focused primarily on pulp, paper, and packaging. The company manufactures containerboard and corrugated packaging used for shipping and retail display, as well as a range of specialty papers and pulp products that serve industrial, consumer goods, and e-commerce customers. Its product portfolio is oriented toward large-scale packaging solutions, tissue and paper grades, and raw pulp for a variety of manufacturing uses.

Founded in 1898, International Paper is headquartered in Memphis, Tennessee, and is one of the largest and longest-established companies in the forest products sector.