International Paper (NYSE:IP) Posts Quarterly Earnings Results, Beats Estimates By $0.08 EPS

International Paper (NYSE:IP) issued its quarterly earnings results on Thursday. The basic materials company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.08, FiscalAI reports. The firm had revenue of $6 billion for the quarter, compared to analysts’ expectations of $6.19 billion. International Paper had a negative return on equity of 1.09% and a negative net margin of 14.20%.The business’s revenue for the quarter was down 11.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.20 EPS.

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

• Positive Sentiment: International Paper reported stronger-than-expected operational execution in Q2, including a roughly 500-basis-point year-over-year improvement in mill performance and North American box-volume growth of 1.7%.
• Positive Sentiment: Management expects a significant second-half earnings improvement, supported by price-increase realization, the Riverdale conversion ramp, NORPAC’s contribution, and ongoing cost reductions. North America’s Q3 Adjusted EBITDA outlook is $555 million–$585 million, while EMEA’s is $230 million–$250 million.
• Negative Sentiment: The company reduced the high end of its 2026 Adjusted EBITDA outlook by approximately $50 million because of weaker macro conditions and the prolonged Middle East conflict, with additional pressure from transportation, OCC, diesel, and medical costs.
• Negative Sentiment: Pine Hill operations were suspended for structural roof repairs and are expected to resume by the end of August; the disruption is estimated to reduce second-half results by $70 million–$100 million before an anticipated insurance recovery. Demand is also softer than previously expected, with North American industry volumes now projected to remain broadly flat in the second half.
• Positive Sentiment: The planned separation of the EMEA packaging business remains on track, while more than $210 million of run-rate EMEA footprint and cost savings have been announced, including 31 facility closures or planned closures and a reduction of more than 3,000 positions.

International Paper Stock Down 4.9%

Shares of IP stock traded down $2.12 during mid-day trading on Friday, hitting $41.03. The company’s stock had a trading volume of 7,392,706 shares, compared to its average volume of 5,561,888. The stock has a market cap of $21.73 billion, a price-to-earnings ratio of -6.29 and a beta of 0.94. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.94 and a current ratio of 1.10. International Paper has a 52-week low of $29.26 and a 52-week high of $52.28. The business has a 50-day moving average price of $36.88 and a 200 day moving average price of $38.04.

International Paper Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be paid a $0.4625 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.85 annualized dividend and a dividend yield of 4.5%. International Paper’s payout ratio is currently -29.09%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on IP. Truist Financial reissued a “buy” rating and issued a $49.00 target price (up from $46.00) on shares of International Paper in a research note on Friday. Zacks Research raised International Paper from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Weiss Ratings reiterated a “sell (d)” rating on shares of International Paper in a research note on Friday, July 24th. Loop Capital set a $61.00 price objective on shares of International Paper in a research report on Tuesday. Finally, Bank of America lowered shares of International Paper from a “buy” rating to a “neutral” rating and set a $41.00 price objective for the company. in a research note on Tuesday, July 14th. Nine analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $48.75.

Institutional Investors Weigh In On International Paper

Several large investors have recently bought and sold shares of IP. Pacer Advisors Inc. lifted its stake in International Paper by 5.8% during the 4th quarter. Pacer Advisors Inc. now owns 44,613 shares of the basic materials company’s stock valued at $1,757,000 after acquiring an additional 2,462 shares during the period. T. Rowe Price Investment Management Inc. grew its stake in shares of International Paper by 3.8% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 4,182,365 shares of the basic materials company’s stock worth $164,744,000 after acquiring an additional 153,355 shares during the period. Invesco Ltd. grew its stake in shares of International Paper by 18.0% in the fourth quarter. Invesco Ltd. now owns 10,764,533 shares of the basic materials company’s stock worth $424,015,000 after acquiring an additional 1,643,363 shares during the period. Corient Private Wealth LLC raised its holdings in shares of International Paper by 46.9% during the fourth quarter. Corient Private Wealth LLC now owns 88,527 shares of the basic materials company’s stock valued at $3,487,000 after purchasing an additional 28,251 shares during the last quarter. Finally, Alberta Investment Management Corp raised its holdings in shares of International Paper by 15.1% during the fourth quarter. Alberta Investment Management Corp now owns 62,400 shares of the basic materials company’s stock valued at $2,458,000 after purchasing an additional 8,200 shares during the last quarter. 81.95% of the stock is currently owned by institutional investors.

International Paper News Summary

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: Citigroup raised its price target to $48 and assigned a Buy rating, implying approximately 17% potential upside based on the referenced price. The call suggests confidence in containerboard pricing and International Paper’s longer-term recovery prospects. Benzinga analyst price target report
• Positive Sentiment: Second-quarter adjusted EPS was $0.04, beating the consensus estimate of a $0.04 loss. Recent insider activity also showed five open-market purchases and no sales over the past six months, including purchases by the CEO and other executives. These factors may provide some support for investor confidence. International Paper second-quarter results
• Neutral Sentiment: JPMorgan upgraded International Paper’s stock rating, while other recent analyst targets have been mixed. Institutional positioning was also divided, with some large investors adding shares and others making substantial reductions. JPMorgan International Paper rating update
• Negative Sentiment: Revenue totaled $6.00 billion, below roughly $6.2 billion in expectations and down 11.3% year over year. The company reported a $12 million loss from continuing operations, negative free cash flow of $7 million, and reduced profitability expectations. Management projected full-year adjusted EBITDA of $3.20 billion to $3.40 billion and warned that a temporary Pine Hill, Alabama, mill closure will reduce third-quarter EBITDA by about $85 million. Higher maintenance, input and freight costs are adding further pressure. Zacks International Paper earnings analysis
• Negative Sentiment: Analysts cut estimates for second- and third-quarter EPS, reinforcing concerns that maintenance outages, macroeconomic headwinds and weaker profitability could outweigh the quarterly earnings beat. International Paper EPS forecast revision

About International Paper

International Paper is a global producer of renewable fiber-based products, focused primarily on pulp, paper, and packaging. The company manufactures containerboard and corrugated packaging used for shipping and retail display, as well as a range of specialty papers and pulp products that serve industrial, consumer goods, and e-commerce customers. Its product portfolio is oriented toward large-scale packaging solutions, tissue and paper grades, and raw pulp for a variety of manufacturing uses.

Founded in 1898, International Paper is headquartered in Memphis, Tennessee, and is one of the largest and longest-established companies in the forest products sector.