International Paper Company Q3 2026 Earnings Recap

International Paper rose 3.3% after earnings as North America’s sequential recovery and full-year free-cash-flow outlook supported the positive market reaction. However, demand remained soft, inflation was higher than expected, and EMEA results fell short of management’s expectations.

Key Takeaways

• Adjusted EBITDA was $843 million, adjusted operating EPS was $0.37, and adjusted EBITDA margin improved nearly 400 basis points sequentially to 13.6%.
• Packaging Solutions North America adjusted EBITDA rose 56% sequentially to $663 million; price and mix added $141 million, while volume reduced results by $46 million.
• North American box shipments declined approximately 2% year over year. The company expects to outperform industry demand by about 2 percentage points for the full year.
• Higher diesel, OCC, and energy costs had a $55 million unfavorable impact; the temporary Pine Hill shutdown had a $20 million unfavorable impact, partly offset by insurance recovery.
• Free cash flow was negative $267 million in the quarter; full-year free cash flow is expected to be approximately $100 million to $200 million.