$IP · INTERNATIONAL PAPER CO /NEW/
International Paper reported Q3 2026 results with net sales of $6.20 billion and a GAAP loss from continuing operations of $1.10 billion, including a $1.38 billion non-cash goodwill impairment for the Packaging Solutions EMEA segment. Adjusted EBITDA from continuing operations was $843 million, and adjusted operating EPS was $0.37. The company provided Q4 2026 PS North America operating profit guidance of $460–$500 million and suspended EMEA guidance due to the planned separation of that business.
- GAAP diluted EPS from continuing operations was $(2.07), driven by a $1.38B non-cash goodwill impairment charge for Packaging Solutions EMEA.
- Adjusted operating EPS (non-GAAP) was $0.37, up from $(0.43) in Q3 2025 and $0.04 in Q2 2026.
- Free cash flow swung to $(267) million from $150 million a year ago and $(7) million in Q2 2026.
- PS North America segment operating profit jumped to $427 million from $204 million in Q2 2026, helped by the NORPAC mill acquisition.
- Q4 2026 PS North America operating profit guidance is $460–$500 million; EMEA guidance is suspended due to the planned separation.
Extended-hours trading shows IP down 4.46% to $31.89 vs. the $33.38 regular close, signaling a negative initial reaction to the large GAAP loss and EMEA impairment. Markets are closed; the full regular-session reaction is pending.
A $1.38B impairment on a major business segment alongside suspended guidance signals deeper structural problems in IP's European operations as it pursues separation.
The EMEA impairment and separation plan reflect broader packaging-sector pressures in Europe, where soft demand and elevated input costs are compressing margins. IP's North America performance contrasts with peers still navigating destocking headwinds.
The $1.38B goodwill impairment signals that the EMEA packaging business's fair value has deteriorated below its carrying value. Continued macro headwinds in Europe and the planned separation create execution risk and uncertainty around ultimate recovery value.