{"success":true,"data":{"pressRelease":{"id":"103407","rtpr_id":"nPn3WkHsja","ticker":"IP","exchange":"NYSE","all_tickers":["IP"],"title":"International Paper Reports Second Quarter 2026 Results","author":"PR Newswire","published_at":"2026-07-30T11:00:05.774Z","article_body":"International Paper Reports Second Quarter 2026 Results\n\nPR Newswire\n\nMEMPHIS, Tenn., July 30, 2026\n\nSECOND QUARTER 2026 FINANCIAL SUMMARY\n\n * Net sales of $6.00 billion\n * Loss from continuing operations of $12 million\n * Adjusted EBITDA (non-GAAP) from continuing operations of $587 million\n * Cash provided by operating activities of $526 million\n * Free cash flow (non-GAAP) of $(7) million\n2026 FINANCIAL TARGETS\n\n * Adjusted EBITDA (non-GAAP) from continuing operations\n* Third quarter: $780-$830 million, including $85 million negative impact of\nthe\ntemporary mill closure in Pine Hill, Alabama\n * Full-Year: $3.20-$3.40 billion\nMEMPHIS, Tenn., July 30, 2026 /PRNewswire/ -- International Paper (NYSE: IP)\n(LSE: IPC) (the \"Company\") today announced results for the quarter ended\nJune 30, 2026.\n\n\"Our teams delivered strong second quarter results as execution continued to\nimprove across the company,\" said International Paper Chairman and CEO Andy\nSilvernail. \"In North America, we improved mill performance and successfully\ncompleted the Riverdale machine conversion, while continuing to grow box\nvolumes and remain on track to outperform the market. In EMEA, we accelerated\ncost-out actions, advanced transformational investments and continued\npreparing for the separation as previously communicated.\"\n\n\"Looking ahead to the second half of the year, our priorities remain clear:\nexecute with discipline, improve reliability and performance across our\nnetwork, mitigate rising input costs in a dynamic environment, and deliver\ncommercial and cost-out initiatives,\" Silvernail added. \"While there is still\nwork to do, we are building momentum across the businesses. The progress we\nare making gives us confidence in our ability to deliver strong performance\nthrough the remainder of 2026 and create sustainable value for our\nstakeholders.\"\n\nSelect Financial Measures\n\nThe preliminary second quarter 2026 results discussed in this release will be\nfinalized in our Quarterly Report on Form 10-Q, which we intend to file with\nthe U.S. Securities and Exchange Commission on August 6, 2026. This release\nrefers to certain non-GAAP financial measures, which are defined below.\n (In millions) Second Second First\n Quarter 2026 Quarter 2025 Quarter 2026\n Net Sales $ 6,004 $ 6,142 $ 5,971\n Earnings (Loss) from Continuing Operations (12) 75 76\n Adjusted EBITDA from Continuing Operations (non-GAAP) 587 670 677\n Adjusted Operating Earnings (Loss) (non-GAAP) 18 94 81\n Cash Provided By (Used For) Operating Activities 526 476 611\n Free Cash Flow (non-GAAP) (7) 54 94\n\nDiluted EPS from Continuing Operations and Adjusted Operating EPS\n Second Second First Quarter\n Quarter 2026 Quarter 2025 2026\n Diluted Earnings (Loss) Per Share from Continuing $ (0.02) $ 0.14 $ 0.14\n Operations\n Add Back – Non-Operating Pension Expense (Income) (0.03) — (0.03)\n Add Back – Net Special Items Expense (Income) 0.10 0.04 0.05\n Income Taxes - Non-Operating Pension and Special Items (0.01) — (0.01)\n Adjusted Operating Earnings (Loss) Per Share (non-GAAP) $ 0.04 $ 0.18 $ 0.15\n\nNON-GAAP FINANCIAL MEASURES\nThe Company believes that these non-GAAP financial measures, when viewed\nalongside the most directly comparable GAAP measures, provides for a more\ncomplete analysis of the Company's results from continuing operations.\nReconciliations to the most directly comparable GAAP measures and an\nexplanation of why management believes these non-GAAP financial measures\nprovide useful information to investors are included later in this release.\n\nAdjusted EBITDA from continuing operations is a non-GAAP financial measure\ndefined as earnings (loss) from continuing operations (a GAAP measure) before\nincome taxes, equity earnings (loss), interest expense, net, net special\nitems, non-operating pension expense (income) and depreciation and\namortization. The most directly comparable GAAP measure is earnings (loss)\nfrom continuing operations.\n\nAdjusted operating earnings (loss) and adjusted operating earnings (loss) per\nshare are non-GAAP financial measures defined as earnings (loss) from\ncontinuing operations (a GAAP measure) excluding net special items and\nnon-operating pension expense (income). Earnings (loss) from continuing\noperations and diluted earnings (loss) per share from continuing operations\nare the most directly comparable GAAP measures. The Company calculates\nadjusted operating earnings (loss) (non-GAAP) by excluding the after-tax\neffect of non-operating pension expense (income) and net special items from\nthe earnings (loss) from continuing operations reported under U.S. GAAP.\nAdjusted operating earnings (loss) per share is calculated by dividing\nadjusted operating earnings (loss) by the diluted average shares of common\nstock outstanding.\n\nFree cash flow is a non-GAAP financial measure defined as cash provided by\n(used for) operating activities (a GAAP measure) less capital expenditures.\nThe most directly comparable GAAP measure is cash provided by (used for)\noperations.\n\nFor discussion of net special items and non-operating pension expense\n(income), see the disclosure that follows Effects of Net Special Items and\nConsolidated Statement of Operations and related notes included later in this\nrelease.\n\nSEGMENT INFORMATION\nThe following table presents net sales and business segment operating profit\n(loss), which is the Company's measure of segment profitability. Business\nsegment operating profit (loss) is a measure reported to our management for\npurposes of making decisions about allocating resources to our business\nsegments and assessing the performance of our business segments. We present\nthis information in our financial statement footnotes in accordance with ASC\n280 - \"Segment Reporting\". Second quarter 2026 net sales by business segment\nand operating profit (loss) by business segment compared with the first\nquarter of 2026 and the second quarter of 2025 are as follows:\n\nBusiness Segment Results\n (In millions) Second Second First Quarter\n Quarter 2026 Quarter 2025 2026\n Net Sales by Business Segment\n Packaging Solutions North America $ 3,688 $ 3,860 $ 3,626\n Packaging Solutions EMEA 2,287 2,291 2,323\n Corporate and Inter-segment Sales 29 (9) 22\n Net Sales $ 6,004 $ 6,142 $ 5,971\n Business Segment Operating Profit (Loss)\n Packaging Solutions North America $ 204 $ 277 $ 248\n Packaging Solutions EMEA (80) (1) (51)\n\nPackaging Solutions North America (PS NA) business segment operating profit\n(loss) in the second quarter of 2026 was $204 million compared with $248\nmillion in the first quarter of 2026. In the second quarter of 2026, net sales\nincreased reflecting higher sales prices, higher sales volumes and a favorable\nmix due to lower export sales. Sales volumes were higher driven by continued\ngrowth in our domestic business, normal seasonal improvement and the impact of\none additional shipping day. Cost of products sold increased driven by higher\nplanned maintenance outage costs and higher sales volumes, partially offset by\nlower input costs. Input costs were favorably impacted by the non-repeat of\nhigher natural gas costs and utility costs driven by the winter storm,\npartially offset by higher recovered fiber and freight costs. Operating costs\nwere slightly improved due to stronger mill performance, additional Ixtac\ninsurance recovery and the non-repeat of winter storm impacts in the first\nquarter of 2026. These benefits were mostly offset by costs of the Riverdale\npaper machine conversion and other planned reliability spending. In the second\nquarter of 2026, we successfully completed several strategic initiatives,\nincluding the Riverdale machine conversion and the acquisitions of the NORPAC\nmill in Longview, Washington and the Delmarva corrugated packaging facility in\nDover, Delaware.\n\nPackaging Solutions EMEA (PS EMEA) business segment operating profit (loss)\nin the second quarter of 2026 was $(80) million compared with $(51) million in\nthe first quarter of 2026. Net sales decreased in the second quarter of 2026\ncompared with the first quarter of 2026, as higher sales prices for paper were\nmore than offset by lower sales volumes in a continued soft market driven by\ngeopolitical uncertainty and consumer sentiment. Cost of products sold\ndecreased driven by lower sales volumes, cost-out actions and lower input\ncosts for energy, including subsidies, partially offset by higher recovered\nfiber costs. Packaging margins were impacted by higher paper prices not yet\nrealized in box pricing. Planned maintenance outage costs were higher in the\nsecond quarter of 2026 compared with the first quarter of 2026. Selling and\nadministrative expenses were higher driven by planned annual wage increases.\n\nEFFECTS OF NET SPECIAL ITEMS\n\nContinuing Operations\nNet special items include items considered by management to not be reflective\nof the Company's underlying operations. Net special items in the second\nquarter of 2026 amount to a net after-tax charge of $42 million ($0.08 per\ndiluted share) compared with a net after-tax charge of $23 million ($0.04 per\ndiluted share) in the second quarter of 2025 and a net after-tax charge of $19\nmillion ($0.04 per diluted share) in the first quarter of 2026. Net special\nitems in all periods include the following charges (benefits):\n Second Quarter Second Quarter First Quarter 2026\n 2026 2025\n (In millions) Before Tax After Tax Before Tax After Tax Before Tax After Tax\n PS EMEA separation costs $ 43 $ 32 (a) $ — $ — $ 11 $ 8 (a)\n Severance and other costs 9 7 (b) 39 34 (b) 23 17 (b)\n NORPAC acquisition transaction costs 5 4 (a) — — — —\n DS Smith combination costs (benefits) — — 32 29 (a) — —\n Net (gains) losses on sales and (11) (8) (c) (51) (40) (c) — —\n impairments of businesses\n Income tax refund interest — — — — (11) (8) (d)\n Other 8 7 — — 3 2\n Total special items, net $ 54 $ 42 $ 20 $ 23 $ 26 $ 19\n\n (a) Transaction, integration and other costs/benefits that the Company believes\n are not reflective of the Company's underlying operations. See notes (a) and\n (h) of the Consolidated Statement of Operations.\n (b) Severance and other costs associated with the Company's 80/20 strategic\n approach which includes the realignment of resources and mill strategic\n actions. See notes (c) and (k) of the Consolidated Statement of Operations.\n (c) Includes the sale of the Company's box plant in Chile and the sale of five\n European box plants in Mortagne, Saint-Amand and Cabourg (France), Ovar\n (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection\n with the DS Smith combination. See notes (d) and (l) of the Consolidated\n Statement of Operations.\n (d) Interest income related to an income tax refund. See note (e) of the\n Consolidated Statement of Operations.\n\nEARNINGS WEBCAST\nThe Company will host a webcast today where management will discuss second\nquarter 2026 earnings, progress on the planned separation of the EMEA\npackaging business and market conditions as well as the full-year outlook,\nbeginning at 10 a.m. ET (9 a.m. CT). All interested parties are invited to\nlisten to the webcast via the Company's website by clicking on the Investors\ntab and going to the Events & Presentations page at\nhttps://www.internationalpaper.com/investors/events-presentations\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4741918-1&h=1362401017&u=https%3A%2F%2Fwww.internationalpaper.com%2Finvestors%2Fevents-presentations&a=https%3A%2F%2Fwww.internationalpaper.com%2Finvestors%2Fevents-presentations)\n. A replay of the webcast will also be on the website beginning approximately\ntwo hours after the call.\n\nParties who wish to participate in the webcast via teleconference may dial +1\n(646) 307-1963 or, within the U.S. only, (800) 715-9871, and ask to be\nconnected to the International Paper second quarter 2026 earnings call. The\nconference ID number is 4090753. Participants should call in no later than\n9:45 a.m. ET (8:45 a.m. CT). An audio-only replay will be available for ninety\ndays following the call. To access the replay, dial +1 (609) 800-9909 or,\nwithin the U.S. only, (800) 770-2030 and when prompted for the conference ID,\nenter 4090753.\n\nABOUT INTERNATIONAL PAPER (NYSE: IP; LSE: IPC)\nInternational Paper creates sustainable packaging solutions that enable our\ncustomers, teammates and shareowners to thrive in an ever-changing world. We\nare a leader in corrugated packaging, partnering with customers across\nindustries to protect what matters most, strengthen supply chains and create\nlasting value. Learn more at internationalpaper.com.\n\nCautionary Statement Regarding Forward-Looking Statements\nCertain statements in this press release that are not historical in nature may\nbe considered \"forward-looking statements\" within the meaning of the Private\nSecurities Litigation Reform Act of 1995, as amended. Forward-looking\nstatements can be identified by the use of forward-looking or conditional\nwords such as \"expects,\" \"anticipates,\" \"believes,\" \"estimates,\" \"could,\"\n\"should,\" \"can,\" \"forecast,\" \"outlook,\" \"intend,\" \"look,\" \"may,\" \"will,\"\n\"remain,\" \"confident,\" \"commit,\" \"plan,\" and \"preliminary\" or similar\nexpressions. These statements are not guarantees of future performance and\nreflect management's current views and speak only as to the dates the\nstatements are made and are subject to risks and uncertainties that could\ncause actual results to differ materially from those expressed or implied in\nthese statements. All statements, other than statements of historical fact,\nare forward-looking statements, including, but not limited to, statements\nregarding anticipated financial results, economic conditions, industry trends,\nfuture prospects, and the anticipated benefits, execution and consummation of\nstrategic corporate transactions. Factors which could cause actual results to\ndiffer include but are not limited to: (i) our ability to consummate and\nachieve the benefits expected from, and other risks, costs and expenses\nassociated with, our plans to separate our North America and Europe, Middle\nEast and Africa (\"EMEA\") operations into two independent public companies and\nother corporate transactions on a timely basis or at all, including the risk\nthat an impairment charge may be recorded for goodwill or other intangible\nassets, which may lead to decreased assets and reduced net earnings; (ii) our\nability to successfully integrate and realize anticipated synergies, cost\nsavings and profit opportunities from corporate transactions; (iii) risks\nassociated with our strategic business decisions including facility closures,\nbusiness exits, operational changes, corporate restructurings and portfolio\nrationalizations intended to support the Company's 80/20 strategic approach\nfor long-term growth; (iv) our failure to comply with the obligations\nassociated with being a public company listed on the New York Stock Exchange\nand the London Stock Exchange and the costs associated therewith; (v) risks\nwith respect to climate change and global, regional, and local weather\nconditions, as well as risks related to our targets and goals with respect to\nclimate change and the emission of greenhouse gases and other environmental,\nsocial and governance matters, including our ability to meet such targets and\ngoals; (vi) loss contingencies and pending, threatened or future litigation,\nincluding with respect to environmental and antitrust related matters; (vii)\nthe level of our indebtedness, risks associated with our variable rate debt\nand changes in interest rates; (viii) the impact of global and domestic\neconomic conditions and industry conditions, including with respect to current\nchallenging macroeconomic conditions, inflationary pressures and changes in\nthe cost or availability of raw materials, energy price increases or shortages\nin energy sources and transportation sources, supply chain shortages and\ndisruptions, competition we face, cyclicality and changes in consumer\npreferences, demand and pricing for our products, and conditions impacting the\ncredit, capital and financial markets; (ix) risks arising from conducting\nbusiness internationally, domestic and global geopolitical conditions and\ntensions involving military conflict (including major global actors such as\nRussia, the Middle East, the further expansion of such conflicts and the\ngeopolitical and economic consequences associated therewith), as well as\nbroader geopolitical tensions, changes in currency exchange rates, including\nin light of our assets, liabilities and earnings denominated in foreign\ncurrencies as we proceed with the planned separation of our North America and\nEMEA packaging business, trade policies (including but not limited to\nprotectionist measures and the imposition of new or increased tariffs as well\nas the potential impact of retaliatory tariffs and other penalties including\nretaliatory policies against the United States) and global trade tensions,\ndowngrades in our credit ratings, and/or the credit ratings of banks issuing\ncertain letters of credit, issued by recognized credit rating organizations;\n(x) the amount of our future pension funding obligations, and pension and\nhealthcare costs; (xi) the costs of compliance, or the failure to comply with,\nexisting, evolving or new environmental (including with respect to climate\nchange and greenhouse gas emissions), tax, trade, labor and employment,\nprivacy, anti-bribery and anti-corruption, and other U.S. and non-U.S.\ngovernmental laws, regulations and policies (including but not limited to\nthose in the United Kingdom and European Union); (xii) a material disruption\nat any of our manufacturing facilities or other adverse impact on our\noperations due to severe weather, natural disasters, climate change or other\ncauses; (xiii) cybersecurity and information technology risks, including as a\nresult of security breaches and cybersecurity incidents; (xiv) our exposure to\nclaims under our agreements with Sylvamo Corporation; (xv) our ability to\nattract and retain qualified personnel and maintain good employee or labor\nrelations; (xvi) our ability to maintain effective internal control over\nfinancial reporting; and (xvii) our ability to adequately secure and protect\nour intellectual property rights. These and other factors that could cause or\ncontribute to actual results differing materially from such forward-looking\nstatements can be found in our press releases and reports filed with the U.S.\nSecurities and Exchange Commission. In addition, other risks and uncertainties\nnot presently known to the Company or that we currently believe to be\nimmaterial could affect the accuracy of any forward-looking statements. The\nCompany undertakes no obligation to publicly update any forward-looking\nstatements, whether as a result of new information, future events or\notherwise.\n INTERNATIONAL PAPER COMPANY\n Condensed Consolidated Statement of Operations\n Preliminary and Unaudited\n (In millions, except per share amounts)\n Three Months Ended Three Months Ended Six Months Ended\n\nJune 30,\nMarch 31,\n June 30,\n 2026 2025 2026 2026 2025\n Net Sales $ 6,004 $ 6,142 $ 5,971 $ 11,975 $ 11,406\n Costs and Expenses\n Cost of products sold 4,344 4,422 4,244 8,588 8,227 (g)\n Selling and administrative expenses 564 (a) 525 (h) 510 (a) 1,074 (a) 1,012 (h)\n Depreciation and amortization 488 (b) 431 489 (b) 977 (b) 951 (i)\n Distribution expenses 523 516 513 1,036 933\n Taxes other than payroll and income taxes 42 41 41 83 128 (j)\n Restructuring charges, net 9 (c) 39 (k) 23 (c) 32 (c) 122 (k)\n Net (gains) losses on sales and impairments of (11) (d) (51) (l) — (11) (d) (51) (l)\n businesses\n Net (gains) losses on sales and impairments of — — — — (67) (m)\n assets\n Interest expense, net 87 108 76 (e) 163 (e) 192\n Non-operating pension expense (income) (16) (5) (18) (34) (2)\n Earnings (Loss) From Continuing Operations (26) 116 93 67 (39)\n Before Income Taxes and Equity Earnings (Loss)\n Income tax provision (benefit) (15) 40 17 2 8\n Equity earnings (loss), net of taxes (1) (1) — (1) (2)\n Earnings (Loss) From Continuing Operations (12) 75 76 64 (49)\n Discontinued Operations, net of taxes — — (f) (16) (f) (16) (f) 19 (f)\n Net Earnings (Loss) $ (12) $ 75 $ 60 $ 48 $ (30)\n Basic Earnings (Loss) Per Common Share\n Earnings (loss) from continuing operations $ (0.02) $ 0.14 $ 0.14 $ 0.12 $ (0.10)\n Discontinued operations — — (0.03) (0.03) 0.04\n Net earnings (loss) $ (0.02) $ 0.14 $ 0.11 $ 0.09 $ (0.06)\n Diluted Earnings (Loss) Per Common Share\n Earnings (loss) from continuing operations $ (0.02) $ 0.14 $ 0.14 $ 0.12 $ (0.10)\n Discontinued operations — — (0.03) (0.03) 0.04\n Net earnings (loss) $ (0.02) $ 0.14 $ 0.11 $ 0.09 $ (0.06)\n Average Shares of Common Stock Outstanding - 529.5 532.6 531.8 531.8 483.0\n Diluted\n\n The accompanying notes are an integral part of this Consolidated Statement of\n Operations (preliminary and unaudited).\n (a) Includes pre-tax charges of $43 million ($32 million after taxes), $11 million\n ($8 million after taxes) and $54 million ($40 million after taxes) for the\n three months ended June 30, 2026 and March 31, 2026 and the six months ended\n June 30, 2026, respectively, for costs associated with the announced\n separation of our PS EMEA business, a pre-tax charge of $5 million ($4 million\n after taxes) for the three months and six months ended June 30, 2026 for costs\n associated with the NORPAC acquisition and pre-tax charges of $8 million ($7\n million after taxes), $3 million ($2 million after taxes) and $11 million ($9\n million after taxes) for the three months ended June 30, 2026 and March 31,\n 2026 and the six months ended June 30, 2026, respectively, for other costs.\n (b) Includes pre-tax charges of $23 million, $16 million and $39 million for the\n three months ended June 30, 2026 and March 31, 2026 and the six months ended\n June 30, 2026, respectively, for accelerated deprecation associated with our\n site closures.\n (c) Includes pre-tax charges of $9 million ($7 million after taxes), $23 million\n ($17 million after taxes) and $32 million ($24 million after taxes) for the\n three months ended June 30, 2026 and March 31, 2026 and the six months ended\n June 30, 2026, respectively, for severance and other costs related to our mill\n closures and 80/20 strategic actions.\n (d) Includes a pre-tax gain of $11 million ($8 million after taxes) for the three\n months and six months ended June 30, 2026 related to the completed sale of our\n box plant in Chile.\n (e) Includes pre-tax income of $11 million ($8 million after taxes) for the three\n months ended March 31, 2026 and the six months ended June 30, 2026 for\n interest income related to an income tax refund.\n (f) Includes the results for the former Global Cellulose Fibers business which was\n sold on January 23, 2026.\n (g) Includes a pre-tax charge of $70 million ($52 million after taxes) for the six\n months ended June 30, 2025 for the inventory step-up recognized in purchase\n accounting related to the DS Smith combination.\n (h) Includes pre-tax charges of $32 million ($29 million after taxes) and $133\n million ($110 million after taxes) for the three months and six months ended\n June 30, 2025, respectively, for transaction costs and integration costs\n associated with the DS Smith combination.\n (i) Includes a pre-tax charge of $197 million for the six months ended June 30,\n 2025 for accelerated deprecation associated with our site closures.\n (j) Includes a pre-tax charge of $50 million (before and after taxes) for the six\n months ended June 30, 2025 for a UK stamp tax associated with the DS Smith\n combination.\n (k) Includes pre-tax charges of $39 million ($34 million after taxes) and $122\n million ($97 million after taxes) for the three months and six months ended\n June 30, 2025, respectively, for severance and other costs related to our mill\n closures and 80/20 strategic actions.\n (l) Includes a pre-tax gain of $51 million ($40 million after taxes) for the three\n months and six months ended June 30, 2025 related to the sale of five European\n box plants in Mortagne, Saint-Amand, and Cabourg (France), Ovar (Portugal) and\n Bilbao (Spain) to satisfy regulatory commitments in connection with the DS\n Smith combination.\n (m) Includes a pre-tax gain of $62 million ($47 million after taxes) for the six\n months ended June 30, 2025 for asset sales related to our permanently closed\n Orange, Texas containerboard mill and a pre-tax gain of $5 million ($4 million\n after taxes) for the six months ended June 30, 2025 related to miscellaneous\n land sales and other items.\n\n \n INTERNATIONAL PAPER COMPANY\n Reconciliation of Earnings (Loss) from Continuing Operations to Adjusted\n Operating Earnings (Loss)\n Preliminary and Unaudited\n (In millions, except per share amounts)\n Three Months Ended Three Months Ended Six Months Ended\n\nJune 30,\nMarch 31,\n June 30,\n 2026 2025 2026 2026 2025\n Earnings (Loss) from Continuing Operations $ (12) $ 75 $ 76 $ 64 $ (49)\n Add back: Non-operating pension expense (income) (16) (5) (18) (34) (2)\n Add back: Net special items expense (income) 54 20 26 80 257\n Income taxes - Non-operating pension and special items (8) 4 (3) (11) (39)\n Adjusted Operating Earnings (Loss) (non-GAAP) $ 18 $ 94 $ 81 $ 99 $ 167\n\n Three Months Ended Three Months Ended Six Months Ended\n\nJune 30,\nMarch 31,\n June 30,\n 2026 2025 2026 2026 2025\n Diluted Earnings (Loss) per Common Share from $ (0.02) $ 0.14 $ 0.14 $ 0.12 $ (0.10)\n Continuing Operations\n Add back: Non-operating pension expense (income) (0.03) — (0.03) (0.06) —\n Add back: Net special items expense (income) 0.10 0.04 0.05 0.15 0.53\n Income taxes per share - Non-operating pension and special (0.01) — (0.01) (0.02) (0.08)\n items\n Adjusted Operating Earnings (Loss) per Share (non- $ 0.04 $ 0.18 $ 0.15 $ 0.19 $ 0.35\n GAAP)\n\n Notes:\n Management uses adjusted operating earnings (loss) and adjusted operating\n earnings (loss) per share (non-GAAP financial measures) to focus on on-going\n operations and believes that such non-GAAP financial measures are useful to\n investors in assessing the operational performance of the Company and enabling\n investors to perform meaningful comparisons of past and present consolidated\n operating results from continuing operations. The Company believes that these\n non-GAAP financial measures, viewed alongside the most directly comparable\n GAAP measures, provides for a more complete analysis of the Company's results\n from continuing operations. See the section Non-GAAP Financial Measures for\n the definitions of adjusted operating earnings and adjusted operating earnings\n per share and the most directly comparable GAAP measures.\n\n Non-operating pension expense (income) represents amortization of prior\n service cost, amortization of actuarial gains/losses, expected return on\n assets and interest cost. The Company excludes these amounts from adjusted\n operating earnings (loss) as the Company does not believe these items reflect\n ongoing operations. These particular pension cost elements are not directly\n attributable to current employee service. The Company includes service cost in\n our non-GAAP financial measure as it is directly attributable to employee\n service, and the corresponding employees' compensation elements, in connection\n with ongoing operations.\n\n Since diluted earnings per share are computed independently for each period,\n six-month per share amounts may not equal the sum of the respective quarters.\n\n \n INTERNATIONAL PAPER COMPANY\n Calculation of Adjusted EBITDA from Continuing Operations\n Preliminary and Unaudited\n (In millions)\n Three Months Ended Three Months Ended Six Months Ended\n\nJune 30,\nMarch 31,\n June 30,\n 2026 2025 2026 2026 2025\n Earnings (Loss) From Continuing Operations $ (12) $ 75 $ 76 $ 64 $ (49)\n Add back: Income tax provision (benefit) (15) 40 17 2 8\n Less: Equity earnings (loss), net of taxes (1) (1) — (1) (2)\n Earnings (Loss) From Continuing Operations Before Income Taxes (26) 116 93 67 (39)\n and Equity Earnings (Loss)\n Interest expense, net 87 108 76 163 192\n Special items 54 20 37 91 257\n Non-operating pension expense (income) (16) (5) (18) (34) (2)\n Depreciation and amortization 488 431 489 977 951\n Adjusted EBITDA from Continuing Operations (non-GAAP) $ 587 $ 670 $ 677 $ 1,264 $ 1,359\n\n Notes:\n\n Management uses adjusted EBITDA from continuing operations (a non-GAAP\n financial measure) to focus on on-going operations and believes this measure\n is useful to investors in assessing the operational performance of the Company\n and enabling investors to perform meaningful comparisons of past and present\n consolidated operating results from continuing operations. The Company\n believes that adjusted EBITDA from continuing operations, viewed alongside the\n most directly comparable GAAP measure, provides for a more complete analysis\n of the Company's results from continuing operations. See the section titled\n Non-GAAP Financial Measures for the definition of adjusted EBITDA from\n continuing operations and the most directly comparable GAAP measure.\n\n \n INTERNATIONAL PAPER COMPANY\n Calculation of Adjusted EBITDA Outlook from Continuing Operations\n Preliminary and Unaudited\n (In millions)\n Three Months Ended Twelve Months Ended\n September 30, 2026 December 31, 2026\n Earnings (Loss) from Continuing Operations $215 - $260 $843 - $1,043\n Add back: Income tax provision (benefit) — —\n Less: Equity earnings (loss), net of taxes — —\n Earnings (Loss) From Continuing Operations Before Income Taxes and Equity $215 - $260 $843 - $1,043\n Earnings\n (Loss)\n Interest expense, net 90 - 95 370\n Special items — 91\n Non-operating pension expense (income) (16) (69)\n Depreciation and amortization 491 1,965\n Adjusted EBITDA from Continuing Operations (non-GAAP) $780 - $830 $3,200 - $3,400\n\n Notes:\n\n Management uses adjusted EBITDA from continuing operations (a non-GAAP\n financial measure) to focus on on-going operations and believes this measure\n is useful to investors in assessing the operational performance of the Company\n and enabling investors to perform meaningful comparisons of past and present\n consolidated operating results from continuing operations. The company\n believes that adjusted EBITDA from continuing operations, viewed alongside the\n directly comparable GAAP measure, provides for a more complete analysis of the\n Company's results from continuing operations. See the section titled Non-GAAP\n Financial Measures for the definition of adjusted EBITDA from continuing\n operations and the most directly comparable GAAP measure. Income tax provision\n (benefit) is excluded from target setting as we are unable to quantify certain\n amounts that would be required to be included in the GAAP measure without\n unreasonable efforts, including forecasting net income for 2026. We also\n exclude special items from target setting as special items are outside the\n ordinary course of business, inherently difficult to predict and quantify at\n the time goals are established and may not reflect the normal operating\n performance of the business.\n\n \n INTERNATIONAL PAPER COMPANY\n Condensed Consolidated Balance Sheet\n Preliminary and Unaudited\n (In millions)\n June 30, 2026 December 31, 2025\n Assets\n Current Assets\n Cash and Temporary Investments $ 726 $ 1,145\n Accounts and Notes Receivable, Net 4,253 3,791\n Contract Assets 622 635\n Assets Held for Sale — 1,800\n Inventories 1,961 2,012\n Other 682 723\n Total Current Assets 8,244 10,106\n Plants, Properties and Equipment, Net 14,825 14,443\n Goodwill 5,290 5,326\n Intangibles, Net 3,940 4,043\n Long-Term Financial Assets of Variable Interest Entities 2,358 2,349\n Right of Use Assets 672 697\n Overfunded Pension Plan Assets 533 486\n Deferred Charges and Other Assets 659 514\n Total Assets $ 36,521 $ 37,964\n Liabilities and Equity\n Current Liabilities\n Notes Payable and Current Maturities of Long-Term Debt $ 1,002 $ 992\n Liabilities Held for Sale — 502\n Accounts Payable and Other Current Liabilities 6,504 6,405\n Total Current Liabilities 7,506 7,899\n Long-Term Debt 8,215 8,839\n Deferred Income Taxes 1,950 1,898\n Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities 2,131 2,127\n Long-Term Lease Obligations 471 486\n Underfunded Pension Benefit Obligation 296 316\n Postretirement and Postemployment Benefit Obligation 128 133\n Other Liabilities 1,369 1,439\n Equity\n Common Stock 627 627\n Paid-in Capital 14,372 14,414\n Retained Earnings 4,440 4,885\n Accumulated Other Comprehensive Loss (485) (528)\n 18,954 19,398\n Less: Common Stock Held in Treasury, at Cost 4,499 4,571\n Total Equity 14,455 14,827\n Total Liabilities and Equity $ 36,521 $ 37,964\n\n \n INTERNATIONAL PAPER COMPANY\n Condensed Consolidated Statement of Cash Flows\n Preliminary and Unaudited\n (In millions)\n Six Months Ended June 30,\n 2026 2025\n Operating Activities\n Net earnings (loss) $ 48 $ (30)\n Depreciation and amortization 977 1,051\n Deferred income tax expense (benefit), net (9) (95)\n Restructuring charges, net 32 122\n Net (gains) losses on sales and impairments of businesses (8) (51)\n Net (gains) losses on sales and impairments of assets — (67)\n Periodic pension (income) expense, net 6 16\n Other, net 37 (75)\n Changes in operating assets and liabilities\n Accounts and notes receivable (303) (211)\n Contract assets 8 (53)\n Inventories 29 28\n Accounts payable 394 48\n Other current liabilities (182) (347)\n Other current assets 108 (148)\n Cash Provided By (Used For) Operating Activities 1,137 188\n Investment Activities\n Capital expenditures (1,050) (752)\n Acquisitions, net of cash acquired (455) 419\n Proceeds from divestitures, net of cash divested 1,083 138\n Proceeds from sale of fixed assets 31 93\n Proceeds from insurance recoveries 44 28\n Other (2) 36\n Cash Provided By (Used For) Investment Activities (349) (38)\n Financing Activities\n Issuance of debt 92 349\n Reduction of debt (593) (149)\n Change in book overdrafts (185) 99\n Repurchases of common stock and payments of restricted stock tax withholding (31) (63)\n Dividends paid (490) (488)\n Other (5) (1)\n Cash Provided By (Used for) Financing Activities (1,212) (253)\n Effect of Exchange Rate Changes on Cash and Temporary Investments (11) 68\n Change in Cash and Temporary Investments (435) (35)\n Cash and Temporary Investments\n Beginning of the period 1,161 1,170\n End of the period $ 726 $ 1,135\n\n \n INTERNATIONAL PAPER COMPANY\n Reconciliation of Cash Provided by Operations to Free Cash Flow\n Preliminary and Unaudited\n (In millions)\n Three Months Ended Six Months Ended\n\nJune 30,\n June 30,\n 2026 2025 2026 2025\n Cash Provided By (Used For) Operating Activities $ 526 $ 476 $ 1,137 $ 188\n Adjustments:\n Capital expenditures (533) (422) (1,050) (752)\n Free Cash Flow (non-GAAP) $ (7) $ 54 $ 87 $ (564)\n\n Management uses free cash flow (a non-GAAP financial measure) in connection\n with managing our business and believes that free cash flow is useful to\n investors as a liquidity measure because it measures the amount of cash\n generated that is available, after reinvesting in the business, to maintain a\n strong balance sheet, pay dividends, repurchase stock, service debt and make\n investments for future growth. It should not be inferred that the entire free\n cash flow amount is available for discretionary expenditures. See the section\n titled Non-GAAP Financial Measures for the definition of free cash flow and\n the most directly comparable GAAP measure.\n\n The preliminary non-GAAP financial measures presented in this release have\n limitations as analytical tools and should not be considered in isolation or\n as a substitute for an analysis of our results calculated in accordance with\n GAAP. In addition, because not all companies use identical calculations, the\n Company's presentation of preliminary non-GAAP financial measures in this\n release may not be comparable to similarly titled measures disclosed by other\n companies, including companies in the same industry as International Paper.\n\n Management believes non-GAAP financial measures, when used in conjunction with\n information presented in accordance with GAAP, can facilitate a better\n understanding of the impact of various factors and trends on the Company's\n financial results. Management also uses these non-GAAP financial measures in\n making financial, operating and planning decisions and in evaluating the\n Company's performance. Investors are cautioned not to place undue reliance on\n the non-GAAP financial measures presented in this release.\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/international-paper-reports-second-quarter-2026-results-302838432.html\n(https://www.prnewswire.com/news-releases/international-paper-reports-second-quarter-2026-results-302838432.html)\n\nSOURCE International Paper\n\n\n\nMedia: newsroom@ipaper.com;  Investors: Mandi Gilliland; 901-419-4595; Michele Vargas, 901-419-7287.\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS630954/International-Paper-3-1-22-Logo-v2.jpg?id=OA2800645\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn3WkHsja","title":"International Paper Reports Second Quarter 2026 Results","author":"PR Newswire","ticker":"IP","created":"2026-07-30T11:00:05.774Z","tickers":["IP"],"exchange":"NYSE","article_body":"International Paper Reports Second Quarter 2026 Results\n\nPR Newswire\n\nMEMPHIS, Tenn., July 30, 2026\n\nSECOND QUARTER 2026 FINANCIAL SUMMARY\n\n * Net sales of $6.00 billion\n * Loss from continuing operations of $12 million\n * Adjusted EBITDA (non-GAAP) from continuing operations of $587 million\n * Cash provided by operating activities of $526 million\n * Free cash flow (non-GAAP) of $(7) million\n2026 FINANCIAL TARGETS\n\n * Adjusted EBITDA (non-GAAP) from continuing operations\n* Third quarter: $780-$830 million, including $85 million negative impact of\nthe\ntemporary mill closure in Pine Hill, Alabama\n * Full-Year: $3.20-$3.40 billion\nMEMPHIS, Tenn., July 30, 2026 /PRNewswire/ -- International Paper (NYSE: IP)\n(LSE: IPC) (the \"Company\") today announced results for the quarter ended\nJune 30, 2026.\n\n\"Our teams delivered strong second quarter results as execution continued to\nimprove across the company,\" said International Paper Chairman and CEO Andy\nSilvernail. \"In North America, we improved mill performance and successfully\ncompleted the Riverdale machine conversion, while continuing to grow box\nvolumes and remain on track to outperform the market. In EMEA, we accelerated\ncost-out actions, advanced transformational investments and continued\npreparing for the separation as previously communicated.\"\n\n\"Looking ahead to the second half of the year, our priorities remain clear:\nexecute with discipline, improve reliability and performance across our\nnetwork, mitigate rising input costs in a dynamic environment, and deliver\ncommercial and cost-out initiatives,\" Silvernail added. \"While there is still\nwork to do, we are building momentum across the businesses. The progress we\nare making gives us confidence in our ability to deliver strong performance\nthrough the remainder of 2026 and create sustainable value for our\nstakeholders.\"\n\nSelect Financial Measures\n\nThe preliminary second quarter 2026 results discussed in this release will be\nfinalized in our Quarterly Report on Form 10-Q, which we intend to file with\nthe U.S. Securities and Exchange Commission on August 6, 2026. This release\nrefers to certain non-GAAP financial measures, which are defined below.\n (In millions) Second Second First\n Quarter 2026 Quarter 2025 Quarter 2026\n Net Sales $ 6,004 $ 6,142 $ 5,971\n Earnings (Loss) from Continuing Operations (12) 75 76\n Adjusted EBITDA from Continuing Operations (non-GAAP) 587 670 677\n Adjusted Operating Earnings (Loss) (non-GAAP) 18 94 81\n Cash Provided By (Used For) Operating Activities 526 476 611\n Free Cash Flow (non-GAAP) (7) 54 94\n\nDiluted EPS from Continuing Operations and Adjusted Operating EPS\n Second Second First Quarter\n Quarter 2026 Quarter 2025 2026\n Diluted Earnings (Loss) Per Share from Continuing $ (0.02) $ 0.14 $ 0.14\n Operations\n Add Back – Non-Operating Pension Expense (Income) (0.03) — (0.03)\n Add Back – Net Special Items Expense (Income) 0.10 0.04 0.05\n Income Taxes - Non-Operating Pension and Special Items (0.01) — (0.01)\n Adjusted Operating Earnings (Loss) Per Share (non-GAAP) $ 0.04 $ 0.18 $ 0.15\n\nNON-GAAP FINANCIAL MEASURES\nThe Company believes that these non-GAAP financial measures, when viewed\nalongside the most directly comparable GAAP measures, provides for a more\ncomplete analysis of the Company's results from continuing operations.\nReconciliations to the most directly comparable GAAP measures and an\nexplanation of why management believes these non-GAAP financial measures\nprovide useful information to investors are included later in this release.\n\nAdjusted EBITDA from continuing operations is a non-GAAP financial measure\ndefined as earnings (loss) from continuing operations (a GAAP measure) before\nincome taxes, equity earnings (loss), interest expense, net, net special\nitems, non-operating pension expense (income) and depreciation and\namortization. The most directly comparable GAAP measure is earnings (loss)\nfrom continuing operations.\n\nAdjusted operating earnings (loss) and adjusted operating earnings (loss) per\nshare are non-GAAP financial measures defined as earnings (loss) from\ncontinuing operations (a GAAP measure) excluding net special items and\nnon-operating pension expense (income). Earnings (loss) from continuing\noperations and diluted earnings (loss) per share from continuing operations\nare the most directly comparable GAAP measures. The Company calculates\nadjusted operating earnings (loss) (non-GAAP) by excluding the after-tax\neffect of non-operating pension expense (income) and net special items from\nthe earnings (loss) from continuing operations reported under U.S. GAAP.\nAdjusted operating earnings (loss) per share is calculated by dividing\nadjusted operating earnings (loss) by the diluted average shares of common\nstock outstanding.\n\nFree cash flow is a non-GAAP financial measure defined as cash provided by\n(used for) operating activities (a GAAP measure) less capital expenditures.\nThe most directly comparable GAAP measure is cash provided by (used for)\noperations.\n\nFor discussion of net special items and non-operating pension expense\n(income), see the disclosure that follows Effects of Net Special Items and\nConsolidated Statement of Operations and related notes included later in this\nrelease.\n\nSEGMENT INFORMATION\nThe following table presents net sales and business segment operating profit\n(loss), which is the Company's measure of segment profitability. Business\nsegment operating profit (loss) is a measure reported to our management for\npurposes of making decisions about allocating resources to our business\nsegments and assessing the performance of our business segments. We present\nthis information in our financial statement footnotes in accordance with ASC\n280 - \"Segment Reporting\". Second quarter 2026 net sales by business segment\nand operating profit (loss) by business segment compared with the first\nquarter of 2026 and the second quarter of 2025 are as follows:\n\nBusiness Segment Results\n (In millions) Second Second First Quarter\n Quarter 2026 Quarter 2025 2026\n Net Sales by Business Segment\n Packaging Solutions North America $ 3,688 $ 3,860 $ 3,626\n Packaging Solutions EMEA 2,287 2,291 2,323\n Corporate and Inter-segment Sales 29 (9) 22\n Net Sales $ 6,004 $ 6,142 $ 5,971\n Business Segment Operating Profit (Loss)\n Packaging Solutions North America $ 204 $ 277 $ 248\n Packaging Solutions EMEA (80) (1) (51)\n\nPackaging Solutions North America (PS NA) business segment operating profit\n(loss) in the second quarter of 2026 was $204 million compared with $248\nmillion in the first quarter of 2026. In the second quarter of 2026, net sales\nincreased reflecting higher sales prices, higher sales volumes and a favorable\nmix due to lower export sales. Sales volumes were higher driven by continued\ngrowth in our domestic business, normal seasonal improvement and the impact of\none additional shipping day. Cost of products sold increased driven by higher\nplanned maintenance outage costs and higher sales volumes, partially offset by\nlower input costs. Input costs were favorably impacted by the non-repeat of\nhigher natural gas costs and utility costs driven by the winter storm,\npartially offset by higher recovered fiber and freight costs. Operating costs\nwere slightly improved due to stronger mill performance, additional Ixtac\ninsurance recovery and the non-repeat of winter storm impacts in the first\nquarter of 2026. These benefits were mostly offset by costs of the Riverdale\npaper machine conversion and other planned reliability spending. In the second\nquarter of 2026, we successfully completed several strategic initiatives,\nincluding the Riverdale machine conversion and the acquisitions of the NORPAC\nmill in Longview, Washington and the Delmarva corrugated packaging facility in\nDover, Delaware.\n\nPackaging Solutions EMEA (PS EMEA) business segment operating profit (loss)\nin the second quarter of 2026 was $(80) million compared with $(51) million in\nthe first quarter of 2026. Net sales decreased in the second quarter of 2026\ncompared with the first quarter of 2026, as higher sales prices for paper were\nmore than offset by lower sales volumes in a continued soft market driven by\ngeopolitical uncertainty and consumer sentiment. Cost of products sold\ndecreased driven by lower sales volumes, cost-out actions and lower input\ncosts for energy, including subsidies, partially offset by higher recovered\nfiber costs. Packaging margins were impacted by higher paper prices not yet\nrealized in box pricing. Planned maintenance outage costs were higher in the\nsecond quarter of 2026 compared with the first quarter of 2026. Selling and\nadministrative expenses were higher driven by planned annual wage increases.\n\nEFFECTS OF NET SPECIAL ITEMS\n\nContinuing Operations\nNet special items include items considered by management to not be reflective\nof the Company's underlying operations. Net special items in the second\nquarter of 2026 amount to a net after-tax charge of $42 million ($0.08 per\ndiluted share) compared with a net after-tax charge of $23 million ($0.04 per\ndiluted share) in the second quarter of 2025 and a net after-tax charge of $19\nmillion ($0.04 per diluted share) in the first quarter of 2026. Net special\nitems in all periods include the following charges (benefits):\n Second Quarter Second Quarter First Quarter 2026\n 2026 2025\n (In millions) Before Tax After Tax Before Tax After Tax Before Tax After Tax\n PS EMEA separation costs $ 43 $ 32 (a) $ — $ — $ 11 $ 8 (a)\n Severance and other costs 9 7 (b) 39 34 (b) 23 17 (b)\n NORPAC acquisition transaction costs 5 4 (a) — — — —\n DS Smith combination costs (benefits) — — 32 29 (a) — —\n Net (gains) losses on sales and (11) (8) (c) (51) (40) (c) — —\n impairments of businesses\n Income tax refund interest — — — — (11) (8) (d)\n Other 8 7 — — 3 2\n Total special items, net $ 54 $ 42 $ 20 $ 23 $ 26 $ 19\n\n (a) Transaction, integration and other costs/benefits that the Company believes\n are not reflective of the Company's underlying operations. See notes (a) and\n (h) of the Consolidated Statement of Operations.\n (b) Severance and other costs associated with the Company's 80/20 strategic\n approach which includes the realignment of resources and mill strategic\n actions. See notes (c) and (k) of the Consolidated Statement of Operations.\n (c) Includes the sale of the Company's box plant in Chile and the sale of five\n European box plants in Mortagne, Saint-Amand and Cabourg (France), Ovar\n (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection\n with the DS Smith combination. See notes (d) and (l) of the Consolidated\n Statement of Operations.\n (d) Interest income related to an income tax refund. See note (e) of the\n Consolidated Statement of Operations.\n\nEARNINGS WEBCAST\nThe Company will host a webcast today where management will discuss second\nquarter 2026 earnings, progress on the planned separation of the EMEA\npackaging business and market conditions as well as the full-year outlook,\nbeginning at 10 a.m. ET (9 a.m. CT). All interested parties are invited to\nlisten to the webcast via the Company's website by clicking on the Investors\ntab and going to the Events & Presentations page at\nhttps://www.internationalpaper.com/investors/events-presentations\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4741918-1&h=1362401017&u=https%3A%2F%2Fwww.internationalpaper.com%2Finvestors%2Fevents-presentations&a=https%3A%2F%2Fwww.internationalpaper.com%2Finvestors%2Fevents-presentations)\n. A replay of the webcast will also be on the website beginning approximately\ntwo hours after the call.\n\nParties who wish to participate in the webcast via teleconference may dial +1\n(646) 307-1963 or, within the U.S. only, (800) 715-9871, and ask to be\nconnected to the International Paper second quarter 2026 earnings call. The\nconference ID number is 4090753. Participants should call in no later than\n9:45 a.m. ET (8:45 a.m. CT). An audio-only replay will be available for ninety\ndays following the call. To access the replay, dial +1 (609) 800-9909 or,\nwithin the U.S. only, (800) 770-2030 and when prompted for the conference ID,\nenter 4090753.\n\nABOUT INTERNATIONAL PAPER (NYSE: IP; LSE: IPC)\nInternational Paper creates sustainable packaging solutions that enable our\ncustomers, teammates and shareowners to thrive in an ever-changing world. We\nare a leader in corrugated packaging, partnering with customers across\nindustries to protect what matters most, strengthen supply chains and create\nlasting value. Learn more at internationalpaper.com.\n\nCautionary Statement Regarding Forward-Looking Statements\nCertain statements in this press release that are not historical in nature may\nbe considered \"forward-looking statements\" within the meaning of the Private\nSecurities Litigation Reform Act of 1995, as amended. Forward-looking\nstatements can be identified by the use of forward-looking or conditional\nwords such as \"expects,\" \"anticipates,\" \"believes,\" \"estimates,\" \"could,\"\n\"should,\" \"can,\" \"forecast,\" \"outlook,\" \"intend,\" \"look,\" \"may,\" \"will,\"\n\"remain,\" \"confident,\" \"commit,\" \"plan,\" and \"preliminary\" or similar\nexpressions. These statements are not guarantees of future performance and\nreflect management's current views and speak only as to the dates the\nstatements are made and are subject to risks and uncertainties that could\ncause actual results to differ materially from those expressed or implied in\nthese statements. All statements, other than statements of historical fact,\nare forward-looking statements, including, but not limited to, statements\nregarding anticipated financial results, economic conditions, industry trends,\nfuture prospects, and the anticipated benefits, execution and consummation of\nstrategic corporate transactions. Factors which could cause actual results to\ndiffer include but are not limited to: (i) our ability to consummate and\nachieve the benefits expected from, and other risks, costs and expenses\nassociated with, our plans to separate our North America and Europe, Middle\nEast and Africa (\"EMEA\") operations into two independent public companies and\nother corporate transactions on a timely basis or at all, including the risk\nthat an impairment charge may be recorded for goodwill or other intangible\nassets, which may lead to decreased assets and reduced net earnings; (ii) our\nability to successfully integrate and realize anticipated synergies, cost\nsavings and profit opportunities from corporate transactions; (iii) risks\nassociated with our strategic business decisions including facility closures,\nbusiness exits, operational changes, corporate restructurings and portfolio\nrationalizations intended to support the Company's 80/20 strategic approach\nfor long-term growth; (iv) our failure to comply with the obligations\nassociated with being a public company listed on the New York Stock Exchange\nand the London Stock Exchange and the costs associated therewith; (v) risks\nwith respect to climate change and global, regional, and local weather\nconditions, as well as risks related to our targets and goals with respect to\nclimate change and the emission of greenhouse gases and other environmental,\nsocial and governance matters, including our ability to meet such targets and\ngoals; (vi) loss contingencies and pending, threatened or future litigation,\nincluding with respect to environmental and antitrust related matters; (vii)\nthe level of our indebtedness, risks associated with our variable rate debt\nand changes in interest rates; (viii) the impact of global and domestic\neconomic conditions and industry conditions, including with respect to current\nchallenging macroeconomic conditions, inflationary pressures and changes in\nthe cost or availability of raw materials, energy price increases or shortages\nin energy sources and transportation sources, supply chain shortages and\ndisruptions, competition we face, cyclicality and changes in consumer\npreferences, demand and pricing for our products, and conditions impacting the\ncredit, capital and financial markets; (ix) risks arising from conducting\nbusiness internationally, domestic and global geopolitical conditions and\ntensions involving military conflict (including major global actors such as\nRussia, the Middle East, the further expansion of such conflicts and the\ngeopolitical and economic consequences associated therewith), as well as\nbroader geopolitical tensions, changes in currency exchange rates, including\nin light of our assets, liabilities and earnings denominated in foreign\ncurrencies as we proceed with the planned separation of our North America and\nEMEA packaging business, trade policies (including but not limited to\nprotectionist measures and the imposition of new or increased tariffs as well\nas the potential impact of retaliatory tariffs and other penalties including\nretaliatory policies against the United States) and global trade tensions,\ndowngrades in our credit ratings, and/or the credit ratings of banks issuing\ncertain letters of credit, issued by recognized credit rating organizations;\n(x) the amount of our future pension funding obligations, and pension and\nhealthcare costs; (xi) the costs of compliance, or the failure to comply with,\nexisting, evolving or new environmental (including with respect to climate\nchange and greenhouse gas emissions), tax, trade, labor and employment,\nprivacy, anti-bribery and anti-corruption, and other U.S. and non-U.S.\ngovernmental laws, regulations and policies (including but not limited to\nthose in the United Kingdom and European Union); (xii) a material disruption\nat any of our manufacturing facilities or other adverse impact on our\noperations due to severe weather, natural disasters, climate change or other\ncauses; (xiii) cybersecurity and information technology risks, including as a\nresult of security breaches and cybersecurity incidents; (xiv) our exposure to\nclaims under our agreements with Sylvamo Corporation; (xv) our ability to\nattract and retain qualified personnel and maintain good employee or labor\nrelations; (xvi) our ability to maintain effective internal control over\nfinancial reporting; and (xvii) our ability to adequately secure and protect\nour intellectual property rights. These and other factors that could cause or\ncontribute to actual results differing materially from such forward-looking\nstatements can be found in our press releases and reports filed with the U.S.\nSecurities and Exchange Commission. In addition, other risks and uncertainties\nnot presently known to the Company or that we currently believe to be\nimmaterial could affect the accuracy of any forward-looking statements. The\nCompany undertakes no obligation to publicly update any forward-looking\nstatements, whether as a result of new information, future events or\notherwise.\n INTERNATIONAL PAPER COMPANY\n Condensed Consolidated Statement of Operations\n Preliminary and Unaudited\n (In millions, except per share amounts)\n Three Months Ended Three Months Ended Six Months Ended\n\nJune 30,\nMarch 31,\n June 30,\n 2026 2025 2026 2026 2025\n Net Sales $ 6,004 $ 6,142 $ 5,971 $ 11,975 $ 11,406\n Costs and Expenses\n Cost of products sold 4,344 4,422 4,244 8,588 8,227 (g)\n Selling and administrative expenses 564 (a) 525 (h) 510 (a) 1,074 (a) 1,012 (h)\n Depreciation and amortization 488 (b) 431 489 (b) 977 (b) 951 (i)\n Distribution expenses 523 516 513 1,036 933\n Taxes other than payroll and income taxes 42 41 41 83 128 (j)\n Restructuring charges, net 9 (c) 39 (k) 23 (c) 32 (c) 122 (k)\n Net (gains) losses on sales and impairments of (11) (d) (51) (l) — (11) (d) (51) (l)\n businesses\n Net (gains) losses on sales and impairments of — — — — (67) (m)\n assets\n Interest expense, net 87 108 76 (e) 163 (e) 192\n Non-operating pension expense (income) (16) (5) (18) (34) (2)\n Earnings (Loss) From Continuing Operations (26) 116 93 67 (39)\n Before Income Taxes and Equity Earnings (Loss)\n Income tax provision (benefit) (15) 40 17 2 8\n Equity earnings (loss), net of taxes (1) (1) — (1) (2)\n Earnings (Loss) From Continuing Operations (12) 75 76 64 (49)\n Discontinued Operations, net of taxes — — (f) (16) (f) (16) (f) 19 (f)\n Net Earnings (Loss) $ (12) $ 75 $ 60 $ 48 $ (30)\n Basic Earnings (Loss) Per Common Share\n Earnings (loss) from continuing operations $ (0.02) $ 0.14 $ 0.14 $ 0.12 $ (0.10)\n Discontinued operations — — (0.03) (0.03) 0.04\n Net earnings (loss) $ (0.02) $ 0.14 $ 0.11 $ 0.09 $ (0.06)\n Diluted Earnings (Loss) Per Common Share\n Earnings (loss) from continuing operations $ (0.02) $ 0.14 $ 0.14 $ 0.12 $ (0.10)\n Discontinued operations — — (0.03) (0.03) 0.04\n Net earnings (loss) $ (0.02) $ 0.14 $ 0.11 $ 0.09 $ (0.06)\n Average Shares of Common Stock Outstanding - 529.5 532.6 531.8 531.8 483.0\n Diluted\n\n The accompanying notes are an integral part of this Consolidated Statement of\n Operations (preliminary and unaudited).\n (a) Includes pre-tax charges of $43 million ($32 million after taxes), $11 million\n ($8 million after taxes) and $54 million ($40 million after taxes) for the\n three months ended June 30, 2026 and March 31, 2026 and the six months ended\n June 30, 2026, respectively, for costs associated with the announced\n separation of our PS EMEA business, a pre-tax charge of $5 million ($4 million\n after taxes) for the three months and six months ended June 30, 2026 for costs\n associated with the NORPAC acquisition and pre-tax charges of $8 million ($7\n million after taxes), $3 million ($2 million after taxes) and $11 million ($9\n million after taxes) for the three months ended June 30, 2026 and March 31,\n 2026 and the six months ended June 30, 2026, respectively, for other costs.\n (b) Includes pre-tax charges of $23 million, $16 million and $39 million for the\n three months ended June 30, 2026 and March 31, 2026 and the six months ended\n June 30, 2026, respectively, for accelerated deprecation associated with our\n site closures.\n (c) Includes pre-tax charges of $9 million ($7 million after taxes), $23 million\n ($17 million after taxes) and $32 million ($24 million after taxes) for the\n three months ended June 30, 2026 and March 31, 2026 and the six months ended\n June 30, 2026, respectively, for severance and other costs related to our mill\n closures and 80/20 strategic actions.\n (d) Includes a pre-tax gain of $11 million ($8 million after taxes) for the three\n months and six months ended June 30, 2026 related to the completed sale of our\n box plant in Chile.\n (e) Includes pre-tax income of $11 million ($8 million after taxes) for the three\n months ended March 31, 2026 and the six months ended June 30, 2026 for\n interest income related to an income tax refund.\n (f) Includes the results for the former Global Cellulose Fibers business which was\n sold on January 23, 2026.\n (g) Includes a pre-tax charge of $70 million ($52 million after taxes) for the six\n months ended June 30, 2025 for the inventory step-up recognized in purchase\n accounting related to the DS Smith combination.\n (h) Includes pre-tax charges of $32 million ($29 million after taxes) and $133\n million ($110 million after taxes) for the three months and six months ended\n June 30, 2025, respectively, for transaction costs and integration costs\n associated with the DS Smith combination.\n (i) Includes a pre-tax charge of $197 million for the six months ended June 30,\n 2025 for accelerated deprecation associated with our site closures.\n (j) Includes a pre-tax charge of $50 million (before and after taxes) for the six\n months ended June 30, 2025 for a UK stamp tax associated with the DS Smith\n combination.\n (k) Includes pre-tax charges of $39 million ($34 million after taxes) and $122\n million ($97 million after taxes) for the three months and six months ended\n June 30, 2025, respectively, for severance and other costs related to our mill\n closures and 80/20 strategic actions.\n (l) Includes a pre-tax gain of $51 million ($40 million after taxes) for the three\n months and six months ended June 30, 2025 related to the sale of five European\n box plants in Mortagne, Saint-Amand, and Cabourg (France), Ovar (Portugal) and\n Bilbao (Spain) to satisfy regulatory commitments in connection with the DS\n Smith combination.\n (m) Includes a pre-tax gain of $62 million ($47 million after taxes) for the six\n months ended June 30, 2025 for asset sales related to our permanently closed\n Orange, Texas containerboard mill and a pre-tax gain of $5 million ($4 million\n after taxes) for the six months ended June 30, 2025 related to miscellaneous\n land sales and other items.\n\n \n INTERNATIONAL PAPER COMPANY\n Reconciliation of Earnings (Loss) from Continuing Operations to Adjusted\n Operating Earnings (Loss)\n Preliminary and Unaudited\n (In millions, except per share amounts)\n Three Months Ended Three Months Ended Six Months Ended\n\nJune 30,\nMarch 31,\n June 30,\n 2026 2025 2026 2026 2025\n Earnings (Loss) from Continuing Operations $ (12) $ 75 $ 76 $ 64 $ (49)\n Add back: Non-operating pension expense (income) (16) (5) (18) (34) (2)\n Add back: Net special items expense (income) 54 20 26 80 257\n Income taxes - Non-operating pension and special items (8) 4 (3) (11) (39)\n Adjusted Operating Earnings (Loss) (non-GAAP) $ 18 $ 94 $ 81 $ 99 $ 167\n\n Three Months Ended Three Months Ended Six Months Ended\n\nJune 30,\nMarch 31,\n June 30,\n 2026 2025 2026 2026 2025\n Diluted Earnings (Loss) per Common Share from $ (0.02) $ 0.14 $ 0.14 $ 0.12 $ (0.10)\n Continuing Operations\n Add back: Non-operating pension expense (income) (0.03) — (0.03) (0.06) —\n Add back: Net special items expense (income) 0.10 0.04 0.05 0.15 0.53\n Income taxes per share - Non-operating pension and special (0.01) — (0.01) (0.02) (0.08)\n items\n Adjusted Operating Earnings (Loss) per Share (non- $ 0.04 $ 0.18 $ 0.15 $ 0.19 $ 0.35\n GAAP)\n\n Notes:\n Management uses adjusted operating earnings (loss) and adjusted operating\n earnings (loss) per share (non-GAAP financial measures) to focus on on-going\n operations and believes that such non-GAAP financial measures are useful to\n investors in assessing the operational performance of the Company and enabling\n investors to perform meaningful comparisons of past and present consolidated\n operating results from continuing operations. The Company believes that these\n non-GAAP financial measures, viewed alongside the most directly comparable\n GAAP measures, provides for a more complete analysis of the Company's results\n from continuing operations. See the section Non-GAAP Financial Measures for\n the definitions of adjusted operating earnings and adjusted operating earnings\n per share and the most directly comparable GAAP measures.\n\n Non-operating pension expense (income) represents amortization of prior\n service cost, amortization of actuarial gains/losses, expected return on\n assets and interest cost. The Company excludes these amounts from adjusted\n operating earnings (loss) as the Company does not believe these items reflect\n ongoing operations. These particular pension cost elements are not directly\n attributable to current employee service. The Company includes service cost in\n our non-GAAP financial measure as it is directly attributable to employee\n service, and the corresponding employees' compensation elements, in connection\n with ongoing operations.\n\n Since diluted earnings per share are computed independently for each period,\n six-month per share amounts may not equal the sum of the respective quarters.\n\n \n INTERNATIONAL PAPER COMPANY\n Calculation of Adjusted EBITDA from Continuing Operations\n Preliminary and Unaudited\n (In millions)\n Three Months Ended Three Months Ended Six Months Ended\n\nJune 30,\nMarch 31,\n June 30,\n 2026 2025 2026 2026 2025\n Earnings (Loss) From Continuing Operations $ (12) $ 75 $ 76 $ 64 $ (49)\n Add back: Income tax provision (benefit) (15) 40 17 2 8\n Less: Equity earnings (loss), net of taxes (1) (1) — (1) (2)\n Earnings (Loss) From Continuing Operations Before Income Taxes (26) 116 93 67 (39)\n and Equity Earnings (Loss)\n Interest expense, net 87 108 76 163 192\n Special items 54 20 37 91 257\n Non-operating pension expense (income) (16) (5) (18) (34) (2)\n Depreciation and amortization 488 431 489 977 951\n Adjusted EBITDA from Continuing Operations (non-GAAP) $ 587 $ 670 $ 677 $ 1,264 $ 1,359\n\n Notes:\n\n Management uses adjusted EBITDA from continuing operations (a non-GAAP\n financial measure) to focus on on-going operations and believes this measure\n is useful to investors in assessing the operational performance of the Company\n and enabling investors to perform meaningful comparisons of past and present\n consolidated operating results from continuing operations. The Company\n believes that adjusted EBITDA from continuing operations, viewed alongside the\n most directly comparable GAAP measure, provides for a more complete analysis\n of the Company's results from continuing operations. See the section titled\n Non-GAAP Financial Measures for the definition of adjusted EBITDA from\n continuing operations and the most directly comparable GAAP measure.\n\n \n INTERNATIONAL PAPER COMPANY\n Calculation of Adjusted EBITDA Outlook from Continuing Operations\n Preliminary and Unaudited\n (In millions)\n Three Months Ended Twelve Months Ended\n September 30, 2026 December 31, 2026\n Earnings (Loss) from Continuing Operations $215 - $260 $843 - $1,043\n Add back: Income tax provision (benefit) — —\n Less: Equity earnings (loss), net of taxes — —\n Earnings (Loss) From Continuing Operations Before Income Taxes and Equity $215 - $260 $843 - $1,043\n Earnings\n (Loss)\n Interest expense, net 90 - 95 370\n Special items — 91\n Non-operating pension expense (income) (16) (69)\n Depreciation and amortization 491 1,965\n Adjusted EBITDA from Continuing Operations (non-GAAP) $780 - $830 $3,200 - $3,400\n\n Notes:\n\n Management uses adjusted EBITDA from continuing operations (a non-GAAP\n financial measure) to focus on on-going operations and believes this measure\n is useful to investors in assessing the operational performance of the Company\n and enabling investors to perform meaningful comparisons of past and present\n consolidated operating results from continuing operations. The company\n believes that adjusted EBITDA from continuing operations, viewed alongside the\n directly comparable GAAP measure, provides for a more complete analysis of the\n Company's results from continuing operations. See the section titled Non-GAAP\n Financial Measures for the definition of adjusted EBITDA from continuing\n operations and the most directly comparable GAAP measure. Income tax provision\n (benefit) is excluded from target setting as we are unable to quantify certain\n amounts that would be required to be included in the GAAP measure without\n unreasonable efforts, including forecasting net income for 2026. We also\n exclude special items from target setting as special items are outside the\n ordinary course of business, inherently difficult to predict and quantify at\n the time goals are established and may not reflect the normal operating\n performance of the business.\n\n \n INTERNATIONAL PAPER COMPANY\n Condensed Consolidated Balance Sheet\n Preliminary and Unaudited\n (In millions)\n June 30, 2026 December 31, 2025\n Assets\n Current Assets\n Cash and Temporary Investments $ 726 $ 1,145\n Accounts and Notes Receivable, Net 4,253 3,791\n Contract Assets 622 635\n Assets Held for Sale — 1,800\n Inventories 1,961 2,012\n Other 682 723\n Total Current Assets 8,244 10,106\n Plants, Properties and Equipment, Net 14,825 14,443\n Goodwill 5,290 5,326\n Intangibles, Net 3,940 4,043\n Long-Term Financial Assets of Variable Interest Entities 2,358 2,349\n Right of Use Assets 672 697\n Overfunded Pension Plan Assets 533 486\n Deferred Charges and Other Assets 659 514\n Total Assets $ 36,521 $ 37,964\n Liabilities and Equity\n Current Liabilities\n Notes Payable and Current Maturities of Long-Term Debt $ 1,002 $ 992\n Liabilities Held for Sale — 502\n Accounts Payable and Other Current Liabilities 6,504 6,405\n Total Current Liabilities 7,506 7,899\n Long-Term Debt 8,215 8,839\n Deferred Income Taxes 1,950 1,898\n Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities 2,131 2,127\n Long-Term Lease Obligations 471 486\n Underfunded Pension Benefit Obligation 296 316\n Postretirement and Postemployment Benefit Obligation 128 133\n Other Liabilities 1,369 1,439\n Equity\n Common Stock 627 627\n Paid-in Capital 14,372 14,414\n Retained Earnings 4,440 4,885\n Accumulated Other Comprehensive Loss (485) (528)\n 18,954 19,398\n Less: Common Stock Held in Treasury, at Cost 4,499 4,571\n Total Equity 14,455 14,827\n Total Liabilities and Equity $ 36,521 $ 37,964\n\n \n INTERNATIONAL PAPER COMPANY\n Condensed Consolidated Statement of Cash Flows\n Preliminary and Unaudited\n (In millions)\n Six Months Ended June 30,\n 2026 2025\n Operating Activities\n Net earnings (loss) $ 48 $ (30)\n Depreciation and amortization 977 1,051\n Deferred income tax expense (benefit), net (9) (95)\n Restructuring charges, net 32 122\n Net (gains) losses on sales and impairments of businesses (8) (51)\n Net (gains) losses on sales and impairments of assets — (67)\n Periodic pension (income) expense, net 6 16\n Other, net 37 (75)\n Changes in operating assets and liabilities\n Accounts and notes receivable (303) (211)\n Contract assets 8 (53)\n Inventories 29 28\n Accounts payable 394 48\n Other current liabilities (182) (347)\n Other current assets 108 (148)\n Cash Provided By (Used For) Operating Activities 1,137 188\n Investment Activities\n Capital expenditures (1,050) (752)\n Acquisitions, net of cash acquired (455) 419\n Proceeds from divestitures, net of cash divested 1,083 138\n Proceeds from sale of fixed assets 31 93\n Proceeds from insurance recoveries 44 28\n Other (2) 36\n Cash Provided By (Used For) Investment Activities (349) (38)\n Financing Activities\n Issuance of debt 92 349\n Reduction of debt (593) (149)\n Change in book overdrafts (185) 99\n Repurchases of common stock and payments of restricted stock tax withholding (31) (63)\n Dividends paid (490) (488)\n Other (5) (1)\n Cash Provided By (Used for) Financing Activities (1,212) (253)\n Effect of Exchange Rate Changes on Cash and Temporary Investments (11) 68\n Change in Cash and Temporary Investments (435) (35)\n Cash and Temporary Investments\n Beginning of the period 1,161 1,170\n End of the period $ 726 $ 1,135\n\n \n INTERNATIONAL PAPER COMPANY\n Reconciliation of Cash Provided by Operations to Free Cash Flow\n Preliminary and Unaudited\n (In millions)\n Three Months Ended Six Months Ended\n\nJune 30,\n June 30,\n 2026 2025 2026 2025\n Cash Provided By (Used For) Operating Activities $ 526 $ 476 $ 1,137 $ 188\n Adjustments:\n Capital expenditures (533) (422) (1,050) (752)\n Free Cash Flow (non-GAAP) $ (7) $ 54 $ 87 $ (564)\n\n Management uses free cash flow (a non-GAAP financial measure) in connection\n with managing our business and believes that free cash flow is useful to\n investors as a liquidity measure because it measures the amount of cash\n generated that is available, after reinvesting in the business, to maintain a\n strong balance sheet, pay dividends, repurchase stock, service debt and make\n investments for future growth. It should not be inferred that the entire free\n cash flow amount is available for discretionary expenditures. See the section\n titled Non-GAAP Financial Measures for the definition of free cash flow and\n the most directly comparable GAAP measure.\n\n The preliminary non-GAAP financial measures presented in this release have\n limitations as analytical tools and should not be considered in isolation or\n as a substitute for an analysis of our results calculated in accordance with\n GAAP. In addition, because not all companies use identical calculations, the\n Company's presentation of preliminary non-GAAP financial measures in this\n release may not be comparable to similarly titled measures disclosed by other\n companies, including companies in the same industry as International Paper.\n\n Management believes non-GAAP financial measures, when used in conjunction with\n information presented in accordance with GAAP, can facilitate a better\n understanding of the impact of various factors and trends on the Company's\n financial results. Management also uses these non-GAAP financial measures in\n making financial, operating and planning decisions and in evaluating the\n Company's performance. Investors are cautioned not to place undue reliance on\n the non-GAAP financial measures presented in this release.\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/international-paper-reports-second-quarter-2026-results-302838432.html\n(https://www.prnewswire.com/news-releases/international-paper-reports-second-quarter-2026-results-302838432.html)\n\nSOURCE International Paper\n\n\n\nMedia: newsroom@ipaper.com;  Investors: Mandi Gilliland; 901-419-4595; Michele Vargas, 901-419-7287.\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS630954/International-Paper-3-1-22-Logo-v2.jpg?id=OA2800645\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-07-30T11:00:07.835165322Z","server_sent_at_ms":1785409207835},"received_at":"2026-07-30T11:00:07.888Z","source_url":"https://www.prnewswire.com/news-releases/international-paper-reports-second-quarter-2026-results-302838432.html"},"analysis":{"id":"92422","press_release_id":"103407","analysis_json":{"industry":{"label":"Paper & Forest Products","sector":"Materials"},"redFlags":["Swing to net loss from continuing operations","Negative free cash flow","Packaging Solutions EMEA operating loss widened to $(80) million"],"eventType":"earnings","narrative":"International Paper reported second quarter net sales of $6.004 billion, but swung to a loss from continuing operations of $12 million compared to a $75 million profit in the prior year.\n\nAdjusted EBITDA fell to $587 million from $670 million year-over-year, while free cash flow turned negative at $7 million.\n\nThe company maintained its full-year Adjusted EBITDA targets of $3.20 billion to $3.40 billion and noted it completed the Riverdale machine conversion and NORPAC acquisition during the quarter.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"Earnings miss with profit swing to loss and weak cash flow, though full-year guidance maintained."},"keyFigures":{"revenue":6004000000,"guidance":"Q3 Adjusted EBITDA $780-$830 million; Full-Year Adjusted EBITDA $3.20-$3.40 billion","customDimensions":{"free_cash_flow":-7000000,"adjusted_ebitda":587000000,"operating_cash_flow":526000000,"adjusted_operating_earnings":18000000}},"quotedText":"Our teams delivered strong second quarter results as execution continued to improve across the company","namedEntities":{"people":[{"name":"Andy Silvernail","role":"Chairman and CEO"}],"products":["Packaging Solutions North America","Packaging Solutions EMEA"],"companies":[{"name":"International Paper","ticker":"IP"},{"name":"International Paper","ticker":"IPC","relationship":"listed on LSE"},{"name":"NORPAC","relationship":"acquired asset"},{"name":"DS Smith","relationship":"prior transaction partner"},{"name":"Sylvamo Corporation","relationship":"mentioned in risk factors"}],"dollarAmounts":[{"amount":"$6.004 billion","context":"Q2 2026 Net Sales"},{"amount":"$12 million","context":"Loss from continuing operations"},{"amount":"$587 million","context":"Adjusted EBITDA (non-GAAP)"},{"amount":"$(7) million","context":"Free cash flow (non-GAAP)"},{"amount":"$3.20-$3.40 billion","context":"Full-Year 2026 Adjusted EBITDA target"}]},"materialImpact":{"score":4,"reasoning":"Company swung to a net loss of $12 million from a $75 million profit in the prior year, with Adjusted EBITDA declining to $587 million from $670 million. Free cash flow turned negative to $7 million."},"tickerRelevance":{"others":[{"ticker":"IPC","relevance":"listed on LSE"}],"primary":"IP"},"globalImportance":45,"audienceRelevance":45,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"large-cap","eventGravity":"earnings-miss-profit-to-loss","sectorWeight":"Industrials/Materials"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bearish","material_impact_score":4,"narrative":"International Paper reported second quarter net sales of $6.004 billion, but swung to a loss from continuing operations of $12 million compared to a $75 million profit in the prior year.\n\nAdjusted EBITDA fell to $587 million from $670 million year-over-year, while free cash flow turned negative at $7 million.\n\nThe company maintained its full-year Adjusted EBITDA targets of $3.20 billion to $3.40 billion and noted it completed the Riverdale machine conversion and NORPAC acquisition during the quarter.","key_figures":{"revenue":6004000000,"guidance":"Q3 Adjusted EBITDA $780-$830 million; Full-Year Adjusted EBITDA $3.20-$3.40 billion","customDimensions":{"free_cash_flow":-7000000,"adjusted_ebitda":587000000,"operating_cash_flow":526000000,"adjusted_operating_earnings":18000000}},"named_entities":{"people":[{"name":"Andy Silvernail","role":"Chairman and CEO"}],"products":["Packaging Solutions North America","Packaging Solutions EMEA"],"companies":[{"name":"International Paper","ticker":"IP"},{"name":"International Paper","ticker":"IPC","relationship":"listed on LSE"},{"name":"NORPAC","relationship":"acquired asset"},{"name":"DS Smith","relationship":"prior transaction partner"},{"name":"Sylvamo Corporation","relationship":"mentioned in risk factors"}],"dollarAmounts":[{"amount":"$6.004 billion","context":"Q2 2026 Net Sales"},{"amount":"$12 million","context":"Loss from continuing operations"},{"amount":"$587 million","context":"Adjusted EBITDA (non-GAAP)"},{"amount":"$(7) million","context":"Free cash flow (non-GAAP)"},{"amount":"$3.20-$3.40 billion","context":"Full-Year 2026 Adjusted EBITDA target"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-07-30T13:49:47.957Z","global_importance":45,"audience_relevance":45,"importance_components":{"tickerTier":"large-cap","eventGravity":"earnings-miss-profit-to-loss","sectorWeight":"Industrials/Materials"}},"durationMs":282642,"modelName":"glm-4.7"}}