International Paper has reported a loss from continuing operations of $1.10bn for the third quarter (Q3) of 2026, widening from a $426m deficit recorded during the same period of 2025.
A $1.38bn non-cash goodwill impairment charge allocated to the Packaging Solutions EMEA business segment drove the quarterly shortfall.
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Net sales for the quarter edged down to $6.19bn from $6.2bn.
The group posted an after-tax charge of $1.31bn in net special items, which management excludes from calculations of underlying operating performance.
This expense stood at $205m in Q3 2025 and $42m in Q2 2026.
Within International Paper’s operating divisions, Packaging Solutions North America generated an operating profit of $427m, more than doubling the $204m recorded in Q2 2026.
Higher selling values supported a rise in net sales for the division, balancing volume losses caused by subdued customer demand.
By contrast, Packaging Solutions EMEA reported an operating loss of $73m, narrowing from $80m in the preceding quarter but a widening deficit from a loss of $58m in Q3 2025.
Reduced sales volumes in a persistently slack market outweighed increased pricing for paper products, pulling the division’s net sales down slightly from the second quarter.
For the remainder of 2026, financial objectives remain concentrated on the domestic business.
The Packaging Solutions North America segment has been assigned an operating profit target of $460m to $500m for the fourth quarter, establishing a full-year goal between $1.3bn and $1.4bn.
Q4 adjusted EBITDA (non-GAAP) for Packaging Solutions North America is expected to finish between $700m and $740m, positioning the full-year outturn for the division in the range of $2.27bn to $2.31bn.
International Paper chairman and CEO Andy Silvernail said: “Our third-quarter results reflect meaningful progress on our strategy despite persistent macro headwinds.
“We are executing on the core controllables in a more challenging world. We remain focused on building an advantaged cost position, delivering a superior customer experience and strengthening our relative supply position.
“At the same time, we are advancing the separation of our EMEA packaging business. We have conviction in our strategy, confidence in our ability to execute and a clear path to becoming a stronger International Paper that delivers value for all stakeholders.”
