International Paper posts Q3 loss on $1.38 billion goodwill charge
International Paper reported a third-quarter loss from continuing operations of $1.10 billion, including a $1.38 billion goodwill impairment on its EMEA packaging business. Adjusted operating EPS was $0.37 and net sales were $6.20 billion.
Key takeaways
- International Paper Company (IP) reported a preliminary third-quarter 2026 loss from continuing operations of $1.10 billion, including a $1.38 billion non-cash goodwill impairment for its Packaging Solutions EMEA business. Net sales were $6.20 billion. Full-year 2026 Packaging Solutions North America adjusted EBITDA is guided to $2.27 billion to $2.31 billion.
International Paper Company (NYSE: IP) reported a third-quarter 2026 loss from continuing operations of $1.10 billion, including a $1.38 billion non-cash goodwill impairment charge on its Packaging Solutions EMEA business, the company said in a press release filed with the Securities and Exchange Commission on Oct. 28.
The results are preliminary and unaudited. The company said they will be finalized in its Quarterly Report on Form 10-Q, which it intends to file on or about Nov. 4.
Net sales were $6.20 billion for the quarter. Adjusted EBITDA from continuing operations was $843 million, and free cash flow was negative $267 million.
Results by segment
Packaging Solutions North America reported segment operating profit of $427 million, compared with $204 million in the second quarter of 2026. Packaging Solutions EMEA posted an operating loss of $73 million.
Guidance
The company expects fourth-quarter 2026 Packaging Solutions North America segment operating profit of $460 million to $500 million, and full-year 2026 segment operating profit of $1.3 billion to $1.4 billion. It expects fourth-quarter Packaging Solutions North America adjusted EBITDA of $700 million to $740 million, and full-year adjusted EBITDA of $2.27 billion to $2.31 billion.
The company no longer includes Packaging Solutions EMEA financial guidance in its guidance framework and does not anticipate providing such guidance in the future, it said.
EMEA separation
The company is preparing to separate its EMEA packaging business into an independent company to be known as DS Smith plc. The EMEA business leadership team will hold a Capital Markets Day in London on Nov. 3, 2026, from 1 p.m. to 5 p.m. GMT.
Special items
Net special items were an after-tax charge of $1.31 billion, or $2.46 per diluted share, in the third quarter, according to the release. That compares with an after-tax charge of $205 million, or 39 cents per diluted share, a year earlier.
Chairman and CEO Andy Silvernail said, "In North America, we are improving our operational performance, building a structurally lower-cost business and realizing the benefits of prior pricing actions."