International Paper Reports $1.097 Billion Q3 Continuing-Operations Loss

International Paper reported a $1.097 billion loss from continuing operations for the third quarter of 2026, as a noncash charge tied to its European packaging business coincided with positive adjusted operating earnings and new North American targets.

The preliminary, unaudited results covered the quarter ended Sept. 30 and were announced Oct. 28 at 7 a.m. ET (11:00 UTC). Net sales were $6.197 billion, compared with $6.222 billion in the year-earlier quarter and $6.004 billion in the second quarter of 2026. Adjusted operating earnings, a non-GAAP measure, totaled $197 million, or 37 cents per share. A year earlier, the company recorded an adjusted operating loss of $224 million, or 43 cents per share. Adjusted EBITDA from continuing operations was $843 million, versus $859 million a year earlier.

The continuing-operations loss included a $1.377 billion noncash goodwill impairment charge for Packaging Solutions EMEA. The two packaging segments had different results: Packaging Solutions North America generated $427 million in operating profit, compared with a $166 million loss in the year-earlier quarter. Packaging Solutions EMEA recorded an operating loss of $73 million, compared with a $58 million loss.

For the fourth quarter ending Dec. 31, International Paper set a Packaging Solutions North America operating profit target of $460 million to $500 million and an adjusted EBITDA target of $700 million to $740 million. Its full-year 2026 targets for the segment are $1.345 billion to $1.385 billion in operating profit and $2.270 billion to $2.310 billion in adjusted EBITDA.

The company is preparing to separate its EMEA packaging business into an independent company called DS Smith plc. International Paper will stop including EMEA financial guidance in its framework as it prepares for the separation and responds to U.K. regulatory requirements.

International Paper Chairman and CEO Andy Silvernail said the third-quarter results showed “meaningful progress on our strategy despite persistent macro headwinds.”

The company expects to finalize the preliminary results in a Form 10-Q on or about Nov. 4.