International Paper has posted a loss from continuing operations of $12m in the second quarter of 2026, compared with a profit of $75m in the same period a year earlier.
The packaging company’s net sales dropped to $6bn in the quarter, from $6.14bn in the prior-year quarter.
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Adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] from continuing operations came in at $587m with 12.3% decrease while cash generated from operations increased by 10% to $526m.
The company reported net special items as an after-tax charge of $42m in the second quarter of 2026 from $23m a year earlier.
In Packaging Solutions North America, second-quarter operating profit was $204m, down 17% from $248m in the first quarter.
The company said sales rose on higher prices, increased volumes and a more favourable mix linked to decreased export sales.
Volumes increased because of ongoing expansion in the domestic business, seasonal factors and one extra shipping day.
The company also executed several strategic steps during the quarter, including the Riverdale machine conversion and the purchases of the NORPAC mill in Longview, Washington, and the Delmarva corrugated packaging site in Dover, Delaware.
In Packaging Solutions EMEA, the segment recorded an operating loss of $80m in the second quarter, compared with a loss of $51m in the first quarter.
Sales were lower than in the prior quarter, as higher paper prices were outweighed by weaker volumes in what the company described as a soft market shaped by geopolitical uncertainty and consumer sentiment.
Planned maintenance outage costs were also higher than in the first quarter. Selling and administrative costs rose, as well because of planned annual wage increases.
For the third quarter, International Paper expects adjusted EBITDA from continuing operations of $780m to $830m, including an $85m negative effect from the temporary mill closure in Pine Hill, Alabama.
For 2026, it set a full-year adjusted EBITDA target from continuing operations of $3.20bn to $3.40bn.
International Paper chairman and CEO Andy Silvernail said: “Our teams delivered strong second quarter results as execution continued to improve across the company.
“Looking ahead to the second half of the year, our priorities remain clear: execute with discipline, improve reliability and performance across our network, mitigate rising input costs in a dynamic environment, and deliver commercial and cost-out initiatives.”
