Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
International Paper’s fiscal second quarter of 2026 was defined by a net loss of $12 million, as heavy planned maintenance spending and $54 million in net special items offset operational gains. Adjusted EBITDA of $587 million reflected improved commercial execution in North America, where daily box shipments rose 1.7% and pricing actions gained traction, though margins in EMEA were pressured by higher paper costs. The period also included strategic milestones—completing the NORPAC acquisition and advancing the planned separation of the EMEA business. While the GAAP loss stands out, management expects sequentially higher adjusted EBITDA in the third quarter as maintenance outages decline and pricing benefits continue.
Revenue
$6B
-2.25% YoY
EPS (Diluted)
-$0.02
-114.29% YoY
Source: SEC XBRL
International Paper (IP) reported Q2 FY2026 revenue of $6B, down 2.2% year over year. IP's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.04 | -0.01 | Beat +766.7% |
| Mar 2026 | 0.15 | 0.15 | Beat +3.4% |
| Dec 2025 | -0.08 | 0.26 | Miss -131.1% |
| Sep 2025 | -0.43 | 0.48 | Miss -188.8% |
Adjusted (non-GAAP) EPS of $0.04 versus the -$0.01 analyst consensus — a +766.7% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.02.
2 reported regions · SEC XBRL
Revenue across regions totals $5.97B; with $29M of reconciling items (corporate, unallocated and eliminations) it ties to the $6B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure IP itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Management is progressing toward separating the EMEA packaging operations into an independent publicly traded company via a spinoff, with IP retaining approximately a 20% stake. The separation is expected to be completed within 12–15 months, subject to regulatory approvals and board finalization.
Source: 10-Q Item 2 MD&A
IP closed the $368 million acquisition of North Pacific Paper Company (NORPAC) to enhance West Coast lightweight packaging capacity. Additionally, the $250 million Riverdale Mill paper machine conversion to containerboard was completed, with full capacity expected by Q1 2027.
Source: 10-Q Item 2 MD&A
Operations at the Pine Hill, Alabama mill were suspended following weather-related roof damage. The company expects to resume manufacturing in August 2026 and is mitigating customer impact.
Source: 10-Q Item 2 MD&A
North America experienced its peak planned maintenance outage spending in Q2, which pressured margins. Outage spending is expected to decline significantly in Q3, contributing to the forecast of sequentially higher adjusted EBITDA.
Source: 10-Q Item 2 MD&A
EMEA sales volumes remained subdued due to geopolitical uncertainty and cautious consumer sentiment. However, accelerated cost-out actions and expected higher paper and box prices are projected to improve margins in the second half.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Cash and equivalents fell 36% YoY to $726 million while current liabilities rose 5.4%. The current ratio is a tight 1.1, and free cash flow was only $87 million for the first half, raising concerns about financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
Capital expenditures of $1.05 billion in the first half consumed most of the $1.137 billion in operating cash flow, leaving minimal surplus for debt service, dividends, or strategic investments.
Source: 10-Q Cash Flow Statement (XBRL)
Higher OCC and freight costs, along with elevated energy prices driven by geopolitical tensions, continue to pressure margins, particularly in EMEA where paper cost increases have compressed packaging profitability.
Source: 10-Q Item 2 MD&A
The simultaneous execution of the EMEA separation, NORPAC integration, and Riverdale conversion introduces complexity. Any delays or cost overruns—especially after the Pine Hill suspension—could strain operational and financial performance.
Source: 10-Q Item 2 MD&A
Persistently soft demand in EMEA due to weak consumer sentiment and ongoing instability in the Middle East could further depress volumes and margins, delaying the anticipated seasonal recovery.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.00 $B | 6.14 $B | -2.25% |
Cost of Revenue $B | 4.34 $B | 4.42 $B | -1.76% |
Net Income $M | -12.00 $M | 75.00 $M | -116.00% |
EPS (Basic) $ | -0.02 $ | 0.14 $ | -114.29% |
EPS (Diluted) $ | -0.02 $ | 0.14 $ | -114.29% |
SG&A Expense $M | 564.00 $M | 525.00 $M | +7.43% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
IP (International Paper) returned to profitability in Q1 FY2026, posting $60M net income versus a $105M loss a year ago, driven by a 13.4% revenue surge to $5.97B and a dramatic swing to $611M in operating cash flow.
IP (International Paper) reported a dramatic revenue surge of +49.3% to $23.6B in FY2025, driven largely by its DS Smith acquisition, but swung to a net loss of -$3.5B due to a massive spike in D&A charges and integration costs, while operating cash flow remained relatively stable at $1.7B.
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