International Paper Q3 Adjusted EPS Beats but Revenue Misses as $1.38B EMEA Impairment Drives $1.10B Loss

International Paper reported third-quarter 2026 net sales of $6.20 billion, falling short of Wall Street estimates, while adjusted earnings per share of $0.37 beat consensus by $0.09. The GAAP result was a loss from continuing operations of $1.10 billion, driven by a $1.38 billion non-cash goodwill impairment charge tied to its EMEA operations. GAAP EPS came in at negative $2.07 for the quarter. Adjusted EBITDA reached $843 million and cash flow from operations was $339 million.

Shares fell roughly 5% in pre-market trading on the revenue shortfall, even as the adjusted earnings beat provided some offset. The company is advancing the separation of its EMEA business, and CEO commentary characterized the operating environment as challenging, with management focused on what it called "the core controllables."

For the fourth quarter, International Paper guided Packaging Solutions North America adjusted EBITDA to $700 million to $740 million, with a second segment metric in the $460 million to $500 million range. Full-year 2026 guidance for Packaging Solutions North America was set at $1.3 billion to $1.4 billion on one measure and $2.27 billion to $2.31 billion on another, representing a reduction from prior expectations according to investor presentation materials.