International Paper (IP) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were $6.0 billion, with a loss from continuing operations of $12 million and adjusted EBITDA of $587 million; North America saw operational improvements and box volume growth, while EMEA faced challenging demand but benefited from cost-out actions and lower energy costs.

• Achieved strong operational performance in Q2 2026, exceeding expectations despite a complex environment and heavy outage schedule.

• Advanced key strategic investments, including mill upgrades, facility acquisitions (NORPAC, Dover, Delmarva), and the Riverdale machine conversion; progress continued on the planned EMEA packaging business separation.

• Maintained focus on reliability, cost structure, and value-creating investments, reinforcing positive momentum.

• Progressed with the planned separation of North America and EMEA operations, with governance, infrastructure, and operational reorganization on track.

Financial highlights

• Q2 2026 net sales were $6.0 billion, down $138 million year-over-year, with adjusted EBITDA of $587 million (9.8% margin); North America box volumes increased 1.7% year-over-year.

• Adjusted operating EPS was $0.04 for Q2 2026, down from $0.15 in Q1 2026 and $0.18 in Q2 2025.

• Free cash flow for Q2 2026 was $(7) million; capital expenditures for the first half of 2026 totaled $1.05 billion.

• PS NA Q2 2026 sales were $3.69 billion with adjusted EBITDA of $425 million (12.2% margin); PS EMEA Q2 2026 sales were $2.29 billion with adjusted EBITDA of $182 million (8.0% margin).

• Dividend payments totaled $490 million for the first half of 2026 ($0.9250 per share).

Outlook and guidance

• Q3 2026 adjusted EBITDA guidance: $780–$830 million (including an $85 million negative impact from a temporary mill closure); full-year 2026 adjusted EBITDA projected at $3.20–$3.40 billion.

• North America Packaging Solutions Q3 Adjusted EBITDA outlook: $555M–$585M, including Pine Hill impact; full-year North America Adjusted EBITDA guidance: $2.35B–$2.45B.

• EMEA Packaging Solutions Q3 Adjusted EBITDA outlook: $230M–$250M; full-year guidance: $900M–$1B.

• Expect significant second-half step-up in both regions, driven by price realization, cost-out actions, and commercial uplift.

• 2026 enterprise targets: net sales $24.5–$25.1B, adjusted EBITDA $3.2–$3.4B, free cash flow $300–$500M.