International Paper (NYSE:IP; LSE: IPC) released its third-quarter 2026 financial summary on October 28, 2026, reporting net sales of $6.197 billion and a loss from continuing operations of $1.097 billion, driven primarily by a $1.38 billion non-cash goodwill impairment charge related to its Packaging Solutions EMEA business segment.

Key Highlights

  • Net sales of $6.197 billion in the third quarter of 2026, compared with $6.222 billion in the third quarter of 2025 and $6.004 billion in the second quarter of 2026.
  • $1.38 billion non-cash goodwill impairment charge recorded for the Packaging Solutions EMEA business segment, contributing to a loss from continuing operations of $1.097 billion.
  • Adjusted EBITDA (non-GAAP) from continuing operations of $843 million, compared with $859 million in the third quarter of 2025 and $587 million in the second quarter of 2026.
  • Packaging Solutions North America segment operating profit of $427 million, up from $204 million in the second quarter of 2026 and compared with a loss of $166 million in the third quarter of 2025.
  • Diluted loss per share from continuing operations of $2.07 in the third quarter of 2026, versus a loss of $0.81 in the third quarter of 2025.
  • Free cash flow (non-GAAP) of negative $267 million, compared with positive $150 million in the third quarter of 2025.
  • Fourth-quarter 2026 guidance for Packaging Solutions North America segment operating profit set at $460 million to $500 million, according to the filing.

International Paper Q3 2026 Segment Results and Goodwill Impairment Details

According to the filing, International Paper's Packaging Solutions North America segment posted net sales of $3.880 billion in the third quarter of 2026, compared with $3.688 billion in the second quarter of 2026. The company disclosed that the segment's operating profit improvement reflected higher sales prices, partially offset by lower sales volumes attributed to a softer demand environment. Lower planned maintenance outage costs and improved mill performance also contributed to the result, though the filing noted that suspended operations at Pine Hill and higher input costs for recovered fiber, energy, and fuel were partial offsets. The filing added that a full quarter of earnings from the NORPAC mill acquisition was included, compared with one month in the second quarter of 2026.

The Packaging Solutions EMEA segment reported an operating loss of $73 million in the third quarter of 2026, compared with a loss of $80 million in the second quarter of 2026, according to the filing. The company disclosed that the $1.38 billion non-cash goodwill impairment charge was associated with this segment. The filing noted that higher paper prices had not yet been realized in previously published box pricing, weighing on packaging margins, and that higher accelerated depreciation associated with cost-out actions increased depreciation and amortization expense.

The company disclosed that, as a result of the planned separation of the EMEA packaging business and subsequent U.K. regulatory requirements, it "is no longer including our existing Packaging Solutions EMEA financial guidance in our guidance framework and does not anticipate providing such guidance in the future." The preliminary third-quarter 2026 results are expected to be finalized in a Quarterly Report on Form 10-Q, which the company stated it intends to file with the SEC on or about November 4, 2026. The filing also noted that net special items in the third quarter of 2026 amounted to a net after-tax charge of $1.31 billion.

What Was Disclosed

International Paper disclosed third-quarter 2026 financial results including net sales of $6.197 billion, a $1.38 billion non-cash goodwill impairment charge for its EMEA segment, an operating loss in that segment, and updated financial targets for Packaging Solutions North America covering the fourth quarter and full year 2026.