"In North America, our commercial actions are gaining traction and helping us outgrow the market, while we advance cost-out efforts and make solid gains in mill and box plant productivity." – Andy Silvernail, Chairman and CEO, International Paper.
April 30, 2026 - International Paper today announced results for the quarter ended March 31, 2026.
FIRST QUARTER 2026 FINANCIAL SUMMARY
"This quarter, we delivered meaningful progress across the business. In North America, our commercial actions are gaining traction and helping us outgrow the market, while we advance cost-out efforts and make solid gains in mill and box plant productivity. In EMEA, we're accelerating commercial and cost initiatives while a small core team is focusing on the planned separation," said International Paper Chairman and CEO Andy Silvernail. "We still have work to do to improve consistency and reliability, but the primary pressures this quarter came from a tougher macro environment, including ongoing inflation and the severe winter storm."
"Looking ahead," Silvernail added, "our priorities are clear: execute with discipline, improve reliability and performance across our network and manage capital with rigor. We're updating our outlook to reflect the volatile environment, with a strong focus on managing cost and cash flow. We remain confident in our strategy, and the planned separation will enable our North America and EMEA businesses to operate independently and deliver stronger performance."
SEGMENT INFORMATION
Packaging Solutions North America (PS NA) business segment operating profit (loss) in the first quarter of 2026 was $248 million compared with $319 million in the fourth quarter of 2025. In the first quarter of 2026, net sales decreased as higher export pricing and a favorable mix were more than offset by seasonally lower volumes.
Cost of products sold increased driven by higher operating costs and input costs, partially offset by lower planned maintenance outage costs. Operating costs were unfavorably affected by winter storm impacts and higher costs for goods and services which more than offset footprint cost out benefits and improved mill and box system productivity. Input costs also increased due to higher natural gas costs and utility costs driven by the winter storm.
Planned maintenance outage costs were lower due to the deferral of an outage to the second quarter of 2026.
Packaging Solutions EMEA (PS EMEA) business segment operating profit (loss) in the first quarter of 2026 was $(51) million compared with $(223) million in the fourth quarter of 2025. Net sales increased in the first quarter of 2026 compared with the fourth quarter of 2025, reflecting higher sales volumes.
Sales prices for paper were lower but were offset by improved packaging margins.
Cost of products sold increased driven by higher sales volumes and slightly higher energy costs.
Planned maintenance outage costs were lower in the first quarter of 2026 compared with the fourth quarter of 2025. Depreciation and amortization expense was lower as the fourth quarter of 2025 was impacted by the finalization of the acquisition accounting of DS Smith and higher accelerated depreciation associated with mill and plant closures.
EFFECTS OF NET SPECIAL ITEMS
Continuing Operations
Net special items include items considered by management to not be reflective of the Company's underlying operations. Net special items in the first quarter of 2026 amount to a net after-tax charge of $19 million ($0.04 per diluted share) compared with a net after-tax charge of $195 million ($0.44 per diluted share) in the first quarter of 2025 and a net after-tax charge of $2.32 billion ($4.41 per diluted share) in the fourth quarter of 2025.
International Paper (NYSE: IP; LSE: IPC) creates sustainable packaging solutions that enable customers, teammates and shareowners to thrive in an ever-changing world. IP is a leader in corrugated packaging, partnering with customers across industries to protect what matters most, strengthen supply chains and create lasting value.
SOURCE: International Paper