International Paper Narrows 2026 Ebitda Target After Loss

The Tip Desk · July 30, 2026 · 3 min read

Continuing operations swung to a $12 million loss as adjusted EBITDA fell to $587 million, and the company now targets $3.20–$3.40 billion for the full year.

International Paper (IP), the corrugated packaging maker, reported a $12 million loss from continuing operations, or $0.02 a share, in the quarter ended June 30, 2026, after $75 million of earnings a year earlier.

Adjusted EBITDA from continuing operations was $587 million, down from $670 million in the year-ago quarter. Net sales were $6.00 billion. Adjusted operating earnings were $18 million, or $0.04 a share. Free cash flow turned negative at $(7) million.

The swing to a loss followed a first quarter that had produced $76 million of earnings from continuing operations. Chairman and CEO Andy Silvernail said teams delivered strong second-quarter results as execution continued to improve, citing mill performance in North America and the completion of the Riverdale machine conversion.

Packaging Solutions North America, the larger of the two reportable segments, posted net sales of $3.69 billion and segment operating profit of $204 million. Sales rose on higher prices, higher volumes and a favorable mix from lower export sales. Volumes increased on continued growth in the domestic business, normal seasonal improvement and one additional shipping day.

Cost of products sold rose on higher planned maintenance outage costs and higher volumes, partially offset by lower input costs. Operating costs improved slightly on stronger mill performance, additional Ixtac insurance recovery and the non-repeat of winter-storm impacts in the first quarter. Those benefits were mostly offset by costs of the Riverdale paper machine conversion and other planned reliability spending. The company also completed the NORPAC mill acquisition in Longview, Washington, and the Delmarva corrugated packaging facility in Dover, Delaware.

Packaging Solutions EMEA net sales were $2.29 billion. The segment posted an operating loss of $80 million, wider than the $51 million loss in the first quarter. Higher paper prices were more than offset by lower volumes in a continued soft market driven by geopolitical uncertainty and consumer sentiment. Packaging margins were impacted by higher paper prices not yet realized in box pricing.

Net special items were a $42 million after-tax charge, or $0.08 a share, including $32 million after-tax of PS EMEA separation costs and $4 million after-tax of NORPAC transaction costs.

Cash provided by operating activities was $526 million.

For the third quarter of 2026, the company targets adjusted EBITDA from continuing operations of $780 million to $830 million, including an $85 million negative impact of a temporary mill closure in Pine Hill, Alabama. That range sits above the $520 million to $570 million second-quarter target issued with first-quarter results.

Full-year 2026 adjusted EBITDA from continuing operations is now targeted at $3.20 billion to $3.40 billion, a narrower range than the $3.20 billion to $3.50 billion target issued with first-quarter results and the $3.5 billion to $3.7 billion target issued with fourth-quarter 2025 results.

Silvernail said second-half priorities remain executing with discipline, improving reliability and performance across the network, mitigating rising input costs and delivering commercial and cost-out initiatives. He said the company is building momentum across the businesses and that progress gives it confidence in delivering strong performance through the remainder of 2026.