International Paper Reports Q3 2026 Earnings Improvement Amidst Regional Headwinds
International Paper (IP) reported third-quarter net sales of $6.20 billion, driven by higher price realization that helped offset lower sales volumes in a soft demand environment. Adjusted operating EPS rose to $0.37 from $0.04 in the previous quarter, supported by improved mill efficiency and an adjusted EBITDA margin of 13.6%, which saw a sequential increase of nearly 400 basis points. Despite these operational improvements, the company faced significant challenges in its EMEA segment due to rising natural gas costs and cautious consumer behavior, leading to a $1.38 billion non-cash goodwill impairment charge. Additionally, management lowered full-year guidance for North American Packaging Solutions Adjusted EBITDA, citing $145 million in headwinds from diesel, distribution, and volume pressures.