International Paper (NYSE:IP) Announces Earnings Results

International Paper (NYSE:IP) posted its earnings results on Thursday. The basic materials company reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.36), FiscalAI reports. The firm had revenue of $6.01 billion for the quarter, compared to analyst estimates of $5.90 billion. International Paper had a negative return on equity of 0.35% and a negative net margin of 14.12%.The firm’s quarterly revenue was up 53.1% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.02) EPS.

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

• The company will split into two publicly traded regional packaging leaders — a standalone North America IP and a standalone EMEA Packaging business — via a planned spin-off (12–15 months), intended to unlock regional value through focused leadership, tailored capital allocation, and dual listings in London and New York.
• Management provided pro forma scale and explicit targets: standalone North America (FY2025 pro forma sales >$15B / adj. EBITDA ~$2.3B), EMEA (~$8.5B / adj. EBITDA ~$0.8B), and enterprise 2026 guidance of $24.1–$24.9B sales, $3.5–$3.7B adj. EBITDA and $300–$500M free cash flow, with a stated ambition of reaching $5B EBITDA by 2027.
• Price increases have been communicated to customers (price letters issued), but the 2026 guidance excludes any assumed price realization; management notes each $10/ton of price that sticks equates to roughly $90M of annualized adj. EBITDA upside.
• Execution of the 80/20 transformation is progressing: ~$710M of cost-out actions to date (including ~$510M run-rate in North America), planned incremental cost and commercial benefits in 2026 (NA: ~$500M cost / $100M commercial; EMEA: ~$200M cost / $200M commercial) and targeted investments to improve mill reliability and customer service.
• Near-term headwinds include high non-recurring transformation and reliability costs (e.g., Riverdale conversion, elevated maintenance/outages), a $958M hit from accelerated depreciation, negative FCF in 2025, potential Q1 storm impact (~$20–$25M), and management acknowledges free cash flow may not fully cover the dividend in 2026 without additional actions post-spin.

International Paper Stock Up 3.2%

Shares of NYSE IP opened at $40.25 on Friday. The stock has a market capitalization of $21.25 billion, a price-to-earnings ratio of -6.00, a P/E/G ratio of 0.45 and a beta of 1.10. International Paper has a 12-month low of $35.56 and a 12-month high of $58.11. The company has a current ratio of 1.28, a quick ratio of 1.04 and a debt-to-equity ratio of 0.60. The firm’s 50-day moving average price is $40.23 and its 200-day moving average price is $44.08.

Insider Buying and Selling

In related news, SVP Clay R. Ellis sold 18,819 shares of the company’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $36.85, for a total value of $693,480.15. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew K. Silvernail acquired 50,000 shares of the business’s stock in a transaction dated Friday, January 30th. The stock was acquired at an average price of $39.98 per share, for a total transaction of $1,999,000.00. Following the purchase, the chief executive officer directly owned 50,000 shares of the company’s stock, valued at approximately $1,999,000. This trade represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.35% of the company’s stock.

Institutional Investors Weigh In On International Paper

A number of institutional investors and hedge funds have recently added to or reduced their stakes in IP. Dynamic Technology Lab Private Ltd acquired a new position in International Paper during the 1st quarter worth about $249,000. Intech Investment Management LLC increased its holdings in International Paper by 100.5% in the first quarter. Intech Investment Management LLC now owns 32,025 shares of the basic materials company’s stock valued at $1,709,000 after buying an additional 16,055 shares during the last quarter. Cresset Asset Management LLC boosted its stake in International Paper by 20.8% in the second quarter. Cresset Asset Management LLC now owns 17,345 shares of the basic materials company’s stock valued at $812,000 after acquiring an additional 2,981 shares in the last quarter. Jump Financial LLC increased its position in shares of International Paper by 280.9% during the second quarter. Jump Financial LLC now owns 38,092 shares of the basic materials company’s stock worth $1,784,000 after purchasing an additional 28,092 shares in the last quarter. Finally, Cerity Partners LLC lifted its holdings in shares of International Paper by 8.0% in the 2nd quarter. Cerity Partners LLC now owns 33,749 shares of the basic materials company’s stock valued at $1,580,000 after purchasing an additional 2,493 shares during the last quarter. Hedge funds and other institutional investors own 81.95% of the company’s stock.

International Paper News Roundup

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

• Positive Sentiment: CEO insider buy: CEO Andrew K. Silvernail purchased 50,000 shares at ~$39.98 (~$2.0M), signaling management confidence and providing a bullish technical/psychological catalyst. Read More.
• Positive Sentiment: 2026 guidance: Company set adjusted EBITDA targets of $3.5–$3.7B for full year and Q1 adj. EBITDA of $0.74–$0.76B, implying operational improvement and cash‑flow recovery potential. Read More.
• Neutral Sentiment: Planned split into two companies: IP will separate into a North American company and a separate EMEA packaging company to sharpen regional focus — a strategic move that could unlock value long term but creates near‑term execution and transition risk. Read More.
• Neutral Sentiment: Analyst moves mixed: Truist trimmed its price target to $48 but kept a “buy” rating (still implies upside), while Wells Fargo upgraded IP to “equal weight” with a $40 target — these actions temper/recast expectations rather than dramatically change the investment thesis. Read More. | Read More.
• Negative Sentiment: Q4 earnings miss and large impairment: Reported Q4 EPS of ($0.08) vs. $0.28 expected; company recorded a $2.47B pre‑tax goodwill impairment plus accelerated depreciation and restructuring charges, producing a large GAAP loss and weighing on near‑term profitability and multiples. Revenue rose ~53% (beat) but the impairment and margin impact drove a negative market reaction. Read More.

Analysts Set New Price Targets

A number of research firms have weighed in on IP. Jefferies Financial Group raised their price target on shares of International Paper from $47.00 to $48.00 and gave the stock a “buy” rating in a report on Thursday, January 22nd. Zacks Research downgraded shares of International Paper from a “hold” rating to a “strong sell” rating in a report on Monday, January 12th. Weiss Ratings reiterated a “sell (d+)” rating on shares of International Paper in a research note on Monday, December 29th. BNP Paribas Exane upgraded shares of International Paper from a “strong sell” rating to an “outperform” rating and set a $44.00 price objective for the company in a research note on Monday, November 24th. Finally, Wells Fargo & Company raised shares of International Paper from an “underweight” rating to an “equal weight” rating and raised their price target for the company from $36.00 to $40.00 in a report on Friday. Nine investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $49.53.

International Paper Company Profile

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.