International Paper (IP) Q3 2026 earnings summary

Executive summary

• Q3 operating performance improved sequentially as pricing, cost reductions and operational gains partly offset soft demand and elevated input costs.

• Adjusted EBITDA was $843 million; a $1.377 billion non-cash Packaging Solutions EMEA goodwill impairment contributed to a $1.097 billion continuing-operations loss.

• North America results exceeded expectations, while EMEA improved sequentially but remained below expectations; challenging markets are expected to persist into Q4 and 2027.

Financial highlights

• Q3 net sales were $6.197 billion, compared with $6.222 billion in Q3 2025 and $6.004 billion in Q2 2026.

• Adjusted EBITDA was $843 million, versus $859 million in Q3 2025 and $587 million in Q2 2026; adjusted operating earnings were $197 million.

• Adjusted EBITDA margin was 13.6%, up ~400 bps sequentially; adjusted operating EPS was $0.37, versus $0.04 in Q2 2026.

• Continuing-operations GAAP net loss was $1.097 billion, or $2.07 per diluted share; Q3 included a $1.377 billion goodwill impairment.

• Cash from operations was $339 million and free cash flow was -$267 million in Q3; nine-month free cash flow was -$180 million.

Outlook and guidance

• Q4 Packaging Solutions North America adjusted EBITDA guidance is $700 million-$740 million, versus $663 million in Q3; price realization and seasonal demand are expected to support results.

• FY 2026 North America adjusted EBITDA guidance is $2.27 billion-$2.31 billion, reduced by $110 million at the midpoint since Q2 amid diesel, distribution, volume and Pine Hill headwinds.

• FY 2026 free cash flow guidance is $100 million-$200 million; Q4 is expected to benefit from stronger operating results, a positive working-capital swing and the year's lowest CapEx quarter.

• North America box shipments are expected to outperform industry demand by >1% in Q4 and ~2% for FY 2026; September price increases are expected to be substantially realized by late Q1 or early Q2.

• FY 2026 capital expenditures are targeted at $2.0 billion-$2.1 billion; no 2027 guidance was issued, with formal guidance planned for the January Q4 call.