International Paper (NYSE:IP) Posts Earnings Results

Key Points

• International Paper missed Q1 EPS at $0.15 vs. $0.19 consensus and cut full‑year enterprise Adjusted EBITDA to $3.2–$3.5B while trimming Free Cash Flow guidance to roughly $300–$500M.
• The underlying business is mixed: North America showed commercial and productivity momentum (box shipments ~+2.5% y/y per‑day; productivity ~+7%) and the NORPAC/Longview bolt‑on is expected to boost West Coast recycled capacity with a high‑teens ROIC.
• Near‑term headwinds—about $53M from a winter storm, volatile freight/input costs and at least ~$100M of quasi‑one‑time charges—plus a weaker EMEA outlook pressured margins, driving the stock down ~9.2% even as insiders bought shares and the company used $1.1B in sale proceeds to pay down $660M of debt.

International Paper (NYSE:IP - Get Free Report) announced its earnings results on Thursday. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.04), Zacks reports. International Paper had a negative return on equity of 0.35% and a negative net margin of 14.12%.The business's quarterly revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.17 earnings per share.

Here are the key takeaways from International Paper's conference call:

• Updated full‑year guidance — International Paper cut enterprise Adjusted EBITDA to $3.2B–$3.5B (Packaging Solutions NA $2.35B–$2.5B; EMEA $900M–$1B) and now expects Free Cash Flow of ~$300M–$500M, a downward revision versus prior targets.
• North America commercial & operational momentum — Box shipments outpaced the industry (~+2.5% y/y on a per‑day basis, ~3% outperformance) with box productivity up ~7% since Q3 2024, and management is accelerating capital investment (≈50% more per facility in 2025–27) to sustain growth.
• NORPAC acquisition — The bolt‑on Longview mill strengthens the West Coast footprint, expands recycled lightweight capacity, and is expected to deliver a high‑teens ROIC post‑integration, improving network cost and freight position.
• EMEA transformation — mixed near‑term impact — Run‑rate cost savings have risen to >$200M with 31 closures (~2,800 roles), but softer demand, greater energy exposure and timing mismatches between paper and box pricing have pressured margins and led to a reduced EMEA EBITDA outlook.
• Near‑term headwinds and one‑time costs — Q1 was hit by a winter storm (~$53M EBITDA impact), volatile diesel/freight and higher input costs, plus elevated unplanned/transformation costs (management cited at least ~$100M of quasi‑one‑time impacts), weighing on near‑term results.

International Paper Stock Down 9.2%

Shares of NYSE:IP traded down $3.10 during trading on Thursday, reaching $30.49. 18,059,060 shares of the stock traded hands, compared to its average volume of 7,269,201. The stock has a market cap of $16.14 billion, a P/E ratio of -4.54 and a beta of 1.14. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.02 and a current ratio of 1.28. The stock has a 50-day moving average of $37.58 and a two-hundred day moving average of $40.19. International Paper has a 52-week low of $29.45 and a 52-week high of $56.13.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Wells Fargo & Company reduced their price target on International Paper from $40.00 to $38.00 and set an "equal weight" rating on the stock in a research note on Friday, March 20th. Jefferies Financial Group raised their price objective on International Paper from $47.00 to $48.00 and gave the company a "buy" rating in a research report on Thursday, January 22nd. BNP Paribas Exane dropped their target price on shares of International Paper from $44.00 to $42.00 and set an "outperform" rating on the stock in a report on Wednesday, March 25th. UBS Group reduced their target price on shares of International Paper from $44.00 to $40.00 and set a "neutral" rating on the stock in a research report on Friday, April 10th. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of International Paper in a research note on Wednesday, April 1st. They issued a "hold" rating and a $38.00 price target for the company. Eight research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $45.48.

Key Stories Impacting International Paper

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: Company generated meaningful cash and used proceeds to cut leverage — IP received $1.1B from the sale of its Global Cellulose Fibers business and paid down $660M of debt, which improves balance-sheet flexibility. International Paper Reports First Quarter 2026 Results
• Positive Sentiment: Operating cash flow and adjusted EBITDA were solid — Q1 cash provided by operations was $611M, free cash flow $94M and adjusted EBITDA from continuing operations was $677M, supporting longer‑term cash generation. International Paper Reports First Quarter 2026 Results
• Positive Sentiment: Revenue grew year-over-year — Q1 sales rose ~13.4%, showing demand/price recovery in parts of the portfolio even while margins are under pressure. International Paper Reports First Quarter 2026 Results
• Neutral Sentiment: Corporate separation work continues — IP filed an 8-K and set a call to discuss Q1 results and the EMEA separation; strategic progress could unlock value but also creates execution risk. International Paper Files 8-K and Sets Call to Discuss Q1 2026 Results and EMEA Separation
• Neutral Sentiment: Unusual options activity — Heavy intraday volume in both calls and puts suggests elevated speculative positioning and hedging, which can amplify moves but is not a directional fundamental. (Multiple trade reports)
• Negative Sentiment: EPS missed expectations — Q1 EPS was $0.15 vs. consensus ~$0.19, a clear near-term earnings miss that pressured the stock. International Paper Q1 earnings summary
• Negative Sentiment: Management cut near-term profitability outlook — IP lowered its 2026 EBITDA view and issued downbeat Q2 targets citing higher costs and macro pressures, which drove the strongest sell-side concern. IP Misses Q1 Earnings Estimates, Lowers 2026 EBITDA View on Higher Costs
• Negative Sentiment: Analyst downgrades and negative headlines amplified selling — Coverage called the reduced outlook a downgrade risk and headlines highlighted a “plunge” after mixed results, pushing momentum selling. International Paper: Reduced Outlook Still Has Downside Risk (Downgrade)
• Negative Sentiment: Market reaction: investors focused on margin pressure — Coverage and market stories emphasize cost headwinds and cautious Q2 guidance as the primary reason the stock fell. International Paper misses sales estimates, trims profit forecast amid cost pressures

Insiders Place Their Bets

In other International Paper news, Director Anders Gustafsson bought 13,217 shares of International Paper stock in a transaction on Thursday, March 12th. The stock was acquired at an average price of $37.83 per share, with a total value of $499,999.11. Following the acquisition, the director owned 26,092 shares in the company, valued at approximately $987,060.36. This trade represents a 102.66% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Andrew K. Silvernail purchased 50,000 shares of the stock in a transaction dated Friday, January 30th. The shares were acquired at an average cost of $39.98 per share, for a total transaction of $1,999,000.00. Following the completion of the acquisition, the chief executive officer owned 50,000 shares of the company's stock, valued at approximately $1,999,000. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 76,092 shares of company stock valued at $2,999,064. Corporate insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On International Paper

Institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp increased its position in International Paper by 1.3% in the fourth quarter. State Street Corp now owns 30,009,733 shares of the basic materials company's stock worth $1,182,083,000 after buying an additional 397,673 shares in the last quarter. Invesco Ltd. grew its stake in shares of International Paper by 18.0% during the 4th quarter. Invesco Ltd. now owns 10,764,533 shares of the basic materials company's stock valued at $424,015,000 after acquiring an additional 1,643,363 shares during the period. Morgan Stanley increased its holdings in International Paper by 17.8% in the 4th quarter. Morgan Stanley now owns 7,782,769 shares of the basic materials company's stock worth $306,563,000 after acquiring an additional 1,174,052 shares in the last quarter. Atlas FRM LLC increased its holdings in International Paper by 56.3% in the 4th quarter. Atlas FRM LLC now owns 5,000,000 shares of the basic materials company's stock worth $196,950,000 after acquiring an additional 1,800,000 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. raised its stake in International Paper by 3.8% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 4,182,365 shares of the basic materials company's stock worth $164,744,000 after acquiring an additional 153,355 shares during the period. 81.95% of the stock is currently owned by hedge funds and other institutional investors.

About International Paper

International Paper is a global producer of renewable fiber-based products, focused primarily on pulp, paper, and packaging. The company manufactures containerboard and corrugated packaging used for shipping and retail display, as well as a range of specialty papers and pulp products that serve industrial, consumer goods, and e-commerce customers. Its product portfolio is oriented toward large-scale packaging solutions, tissue and paper grades, and raw pulp for a variety of manufacturing uses.

Founded in 1898, International Paper is headquartered in Memphis, Tennessee, and is one of the largest and longest-established companies in the forest products sector.

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