International Paper (NYSE:IP) Releases Earnings Results, Beats Expectations By $0.08 EPS

International Paper (NYSE:IP) issued its earnings results on Wednesday. The basic materials company reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.29 by $0.08, FiscalAI reports. The business had revenue of $6.20 billion during the quarter, compared to analysts’ expectations of $6.28 billion. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. The company’s quarterly revenue was down .4% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.43) earnings per share.

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

• Third-quarter execution improved materially. Adjusted EBITDA rose to $843 million, margins expanded nearly 400 basis points sequentially to 13.6%, and North America Packaging Solutions EBITDA increased 56% sequentially to $663 million, helped by price realization, mill efficiency, and lower outage-related costs.
• International Paper expects further North American improvement in the fourth quarter, including adjusted EBITDA of approximately $700 million-$740 million. Riverdale’s ramp-up, NORPAC synergies, productivity initiatives, and continued realization of price increases are expected to support results.
• Inflation and weak demand reduced the full-year outlook. The 2026 North America adjusted EBITDA forecast was lowered to $2.27 billion-$2.31 billion due primarily to higher diesel and distribution costs, softer volumes, medical costs, and an accelerated outage, while consumer caution and weakness in agriculture and protein markets are expected to persist into 2027.
• Third-quarter free cash flow was negative $267 million because of maintenance-related payments, legacy DS Smith interest, and an inventory build; management still expects full-year free cash flow of approximately $100 million-$200 million, with a stronger fourth-quarter cash profile as working capital reverses.
• The EMEA separation remains on track, with International Paper evaluating a potential sale while continuing spin-off preparations and expecting to retain roughly a 20% stake if the spin proceeds. EMEA results improved sequentially but remained below expectations amid weak demand and higher energy costs, and the company will no longer provide its prior EMEA financial guidance framework.

International Paper Trading Up 2.8%

Shares of International Paper stock traded up $0.96 during mid-day trading on Thursday, hitting $35.44. The stock had a trading volume of 1,106,911 shares, compared to its average volume of 6,218,137. The firm has a 50-day moving average of $35.14 and a two-hundred day moving average of $37.50. The firm has a market cap of $18.77 billion, a P/E ratio of -5.43, a price-to-earnings-growth ratio of 4.38 and a beta of 0.93. The company has a quick ratio of 0.84, a current ratio of 1.10 and a debt-to-equity ratio of 0.57. International Paper has a 12-month low of $29.26 and a 12-month high of $50.25.

International Paper Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 16th will be paid a $0.4625 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $1.85 annualized dividend and a dividend yield of 5.2%. International Paper’s dividend payout ratio is -28.37%.

Insider Activity at International Paper

In related news, CAO Holly G. Goughnour sold 3,500 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $41.96, for a total value of $146,860.00. Following the transaction, the chief accounting officer directly owned 34,248 shares in the company, valued at approximately $1,437,046.08. This represents a 9.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP William Hamic sold 24,500 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $41.20, for a total value of $1,009,400.00. Following the completion of the transaction, the vice president owned 106,952 shares of the company’s stock, valued at $4,406,422.40. The trade was a 18.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.21% of the stock is currently owned by insiders.

Key International Paper News

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

• Positive Sentiment: Adjusted earnings exceeded expectations. International Paper reported third-quarter adjusted EPS of $0.37, above the $0.29 analyst consensus and a significant improvement from a loss of $0.43 per share a year earlier. IP Q3 Earnings Beat Estimates, Sales Miss on Lower Volumes
• Positive Sentiment: North American profitability rebounded. Packaging Solutions North America operating profit rose to $427 million, and management guided to fourth-quarter operating profit of $460 million to $500 million. Full-year 2026 guidance calls for $1.3 billion to $1.4 billion in operating profit for the segment. International Paper Reports Third Quarter 2026 Results
• Neutral Sentiment: Revenue was broadly stable but missed forecasts. Sales totaled $6.197 billion, compared with $6.222 billion a year earlier and the $6.28 billion consensus estimate. Lower volumes limited the benefit from stronger North American results. International Paper Q3 Revenue Report
• Neutral Sentiment: International Paper is preparing to separate its EMEA packaging business into DS Smith plc. The planned separation could sharpen the company’s focus on North America, but management will no longer provide existing EMEA financial guidance because of the transaction and related U.K. regulatory requirements. International Paper Q3 2026 Earnings Call Transcript
• Negative Sentiment: A $1.38 billion non-cash goodwill impairment caused a $1.10 billion loss from continuing operations. The charge, tied to Packaging Solutions EMEA, resulted in a reported net loss of $1.13 billion, or $2.13 per share, highlighting continued weakness in the European business. International Paper Posts Third-Quarter Net Loss
• Negative Sentiment: Cash generation remained a concern. Operating cash flow was $339 million, while free cash flow was negative $267 million, potentially limiting flexibility for debt reduction, capital spending and shareholder returns.

Wall Street Analysts Forecast Growth

IP has been the subject of a number of recent research reports. Wells Fargo & Company cut their price objective on shares of International Paper from $46.00 to $42.00 and set an “overweight” rating for the company in a report on Wednesday, October 7th. Seaport Research Partners restated a “buy” rating and set a $46.00 target price on shares of International Paper in a report on Wednesday, August 12th. Loop Capital set a $61.00 price target on International Paper in a research report on Tuesday, July 28th. UBS Group cut their price target on International Paper from $47.00 to $35.00 and set a “neutral” rating for the company in a report on Monday, October 5th. Finally, Zacks Research upgraded International Paper from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Ten investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $46.75.

International Paper Company Profile

International Paper (NYSE: IP) is a global producer of sustainable packaging, pulp and paper products. Its offerings include corrugated packaging and containerboard used to protect and transport goods, as well as absorbent cellulose fibers and other fiber-based materials used in personal care, healthcare, foodservice and industrial applications.

The company serves customers across North America and Europe, with products sold to manufacturers, retailers, consumer-goods companies and other commercial customers.