International Paper (NYSE:IP) Issues Quarterly Earnings Results

International Paper (NYSE:IP) posted its earnings results on Wednesday. The basic materials company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.08, FiscalAI reports. International Paper had a positive return on equity of 1.77% and a negative net margin of 14.32%. The company had revenue of $6.20 billion for the quarter, compared to analysts’ expectations of $6.28 billion. During the same period last year, the firm earned ($0.43) earnings per share. International Paper’s quarterly revenue was down .4% on a year-over-year basis.

Here are the key takeaways from International Paper’s conference call:

• Third-quarter execution improved materially. Adjusted EBITDA rose to $843 million, margins expanded nearly 400 basis points sequentially to 13.6%, and North America Packaging Solutions EBITDA increased 56% sequentially to $663 million, helped by price realization, mill efficiency, and lower outage-related costs.
• International Paper expects further North American improvement in the fourth quarter, including adjusted EBITDA of approximately $700 million-$740 million. Riverdale’s ramp-up, NORPAC synergies, productivity initiatives, and continued realization of price increases are expected to support results.
• Inflation and weak demand reduced the full-year outlook. The 2026 North America adjusted EBITDA forecast was lowered to $2.27 billion-$2.31 billion due primarily to higher diesel and distribution costs, softer volumes, medical costs, and an accelerated outage, while consumer caution and weakness in agriculture and protein markets are expected to persist into 2027.
• Third-quarter free cash flow was negative $267 million because of maintenance-related payments, legacy DS Smith interest, and an inventory build; management still expects full-year free cash flow of approximately $100 million-$200 million, with a stronger fourth-quarter cash profile as working capital reverses.
• The EMEA separation remains on track, with International Paper evaluating a potential sale while continuing spin-off preparations and expecting to retain roughly a 20% stake if the spin proceeds. EMEA results improved sequentially but remained below expectations amid weak demand and higher energy costs, and the company will no longer provide its prior EMEA financial guidance framework.

International Paper Price Performance

Shares of NYSE IP traded up $0.18 during midday trading on Friday, reaching $36.21. The stock had a trading volume of 947,638 shares, compared to its average volume of 6,226,922. The company has a market capitalization of $19.17 billion, a price-to-earnings ratio of -5.52, a price-to-earnings-growth ratio of 4.56 and a beta of 0.93. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.84 and a current ratio of 1.01. The stock has a 50-day moving average of $35.04 and a 200-day moving average of $37.46. International Paper has a 12-month low of $29.26 and a 12-month high of $50.25.

International Paper Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Monday, November 16th will be given a $0.4625 dividend. This represents a $1.85 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date is Monday, November 16th. International Paper’s dividend payout ratio is presently -28.37%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on IP. Wall Street Zen cut shares of International Paper from a “hold” rating to a “sell” rating in a report on Saturday, October 3rd. Royal Bank Of Canada raised their target price on International Paper from $48.00 to $52.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. Bank of America reaffirmed a “buy” rating on shares of International Paper in a research note on Thursday. Citigroup cut their price objective on shares of International Paper from $48.00 to $47.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. Finally, Loop Capital set a $61.00 target price on International Paper in a research note on Tuesday, July 28th. Ten equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, International Paper has a consensus rating of “Moderate Buy” and an average target price of $45.90.

Insider Buying and Selling at International Paper

In related news, VP William Hamic sold 24,500 shares of the firm’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $41.20, for a total transaction of $1,009,400.00. Following the completion of the transaction, the vice president directly owned 106,952 shares of the company’s stock, valued at approximately $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Holly G. Goughnour sold 3,500 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $41.96, for a total transaction of $146,860.00. Following the transaction, the chief accounting officer directly owned 34,248 shares of the company’s stock, valued at $1,437,046.08. This trade represents a 9.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.21% of the stock is currently owned by insiders.

About International Paper

International Paper (NYSE: IP) is a global producer of sustainable packaging, pulp and paper products. Its offerings include corrugated packaging and containerboard used to protect and transport goods, as well as absorbent cellulose fibers and other fiber-based materials used in personal care, healthcare, foodservice and industrial applications.

The company serves customers across North America and Europe, with products sold to manufacturers, retailers, consumer-goods companies and other commercial customers.