International Paper reported preliminary third-quarter 2026 results, including a $1.10 billion loss from continuing operations. The loss included a $1.38 billion noncash goodwill impairment charge tied to its Packaging Solutions Europe, Middle East and Africa business.
The company also provided operating-profit targets for Packaging Solutions North America for the fourth quarter and full year. It said a conference call would cover the EMEA business separation, market conditions and the North American business’s full-year outlook.
Key details
- Sales were $6.20 billion for the quarter ended Sept. 30.
- Loss from continuing operations was $1.10 billion. It included the $1.38 billion noncash goodwill impairment charge for the EMEA packaging business.
- Adjusted EBITDA from continuing operations was $843 million.
- Packaging Solutions North America reported operating profit of $427 million.
- Cash provided by operating activities was $339 million. Free cash flow, a non-GAAP measure, was negative $267 million.
- International Paper’s North American packaging operating-profit targets are:
- Fourth quarter 2026: $460 million to $500 million.
- Full-year 2026: $1.3 billion to $1.4 billion.
What the results mean
The impairment is an accounting charge rather than a cash outflow, so it weighs on the reported loss without representing a comparable cash expense in the quarter. The company’s North American packaging targets are stated in operating-profit terms; they are distinct from its companywide adjusted EBITDA and cash-flow figures.