International Paper Reports Q2 2026 Financial Results with $6.004 Billion in Net Sales

International Paper Company reported its financial results for the second quarter of 2026, revealing net sales of $6.004 billion, a decrease from $6.142 billion in the same quarter of 2025. The company experienced a loss from continuing operations of $12 million, compared to a profit of $75 million in the prior year. For the first half of 2026, net sales increased to $11.975 billion from $11.406 billion in the first half of 2025, with earnings from continuing operations of $64 million, a recovery from a loss of $49 million in the previous year.

The company's cost of products sold for the second quarter was $4.344 billion, down from $4.422 billion a year earlier, while selling and administrative expenses rose to $564 million from $525 million. The increase in expenses was attributed to higher professional service fees, despite a decrease in employee compensation costs. The company also recorded restructuring charges of $9 million in the second quarter, significantly lower than the $39 million recorded in the same period last year.

Strategically, International Paper completed the acquisition of North Pacific Paper Company for $368 million on June 4, 2026, which is expected to enhance its capabilities in lightweight packaging. Additionally, the company is progressing with the planned spin-off of its EMEA packaging business, which is anticipated to be completed within 12 to 15 months. The company also reported a temporary suspension of operations at its Pine Hill, Alabama mill due to weather-related damage, with plans to resume operations in August 2026.

Operationally, International Paper's North American segment saw a 1.7% increase in box shipments compared to the previous year, reflecting successful customer engagement initiatives. However, the EMEA segment faced challenges due to geopolitical uncertainties and subdued consumer sentiment, leading to lower sales volumes. The company expects adjusted EBITDA to improve sequentially in the third quarter, driven by lower planned maintenance costs and improved margins from pricing actions, despite anticipated higher input costs.

Looking ahead, International Paper aims to maintain its investment-grade credit rating and expects to meet its capital expenditure needs, service existing debt, and continue dividend payments through cash generated from operations and existing credit facilities. The company anticipates capital expenditures for 2026 to be approximately $2.0 billion to $2.1 billion, reflecting ongoing investments in its operational capabilities.