- International Paper Declares Quarterly Dividend
May 12, 2026
MEMPHIS, Tenn., May 12, 2026 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC) today declared a quarterly dividend of $0.4625 per share for the period from April 1, 2026 to June 30, 2026, inclusive, on the common stock, par value $1.00, of the Company, payable on June 12, 2026, to holders of record at the close of business on May 22, 2026.International Paper Logo (PRNewsfoto/International Paper)
Today, the Company also declared a quarterly dividend of $1.00 per share for the period from April 1, 2026 to June 30, 2026, inclusive, on the cumulative $4.00 preferred stock of the Company, payable on June 12, 2026, to holders of record at the close of business on May 22, 2026.
About International Paper (NYSE: IP; LSE: IPC)
International Paper creates sustainable packaging solutions that enable our customers, teammates and shareowners to thrive in an ever-changing world. We are a leader in corrugated packaging, partnering with customers across industries to protect what matters most, strengthen supply chains and create lasting value. Learn more at internationalpaper.com.Cision
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- Packaging Costs Surge As Smurfit Westrock Sees $290 Million Energy Hit
May 8, 2026
This article first appeared on GuruFocus.
Packaging producers are facing another hit at a fragile moment for the industry, as the conflict in the Middle East and the blockage of the Strait of Hormuz add fresh pressure to energy prices. The sector was already struggling after the pandemic e-commerce boom faded, with weaker consumer demand, inflation pressure, and tariffs weighing on box producers. Now, the industry is confronting a tougher cost backdrop just as demand remains weak, creating a possible double squeeze for packaging companies that may need to raise prices while customers are already pulling back. US consumer sentiment in April also fell further to a record low, partly due to higher gasoline prices, adding another signal that the end-market environment remains difficult.
Warning! GuruFocus has detected 3 Warning Signs with IP. Is IP fairly valued? Test your thesis with our free DCF calculator.
International Paper (NYSE:IP) CEO Andy Silvernail said consumers are becoming overall more hesitant, and he expects that caution to continue for some time as broader economic uncertainty lingers. He said that uncertainty was first driven by trade and tariffs and is now being affected by the Middle East conflict. The demand pullback, driven by both consumer behavior and a longer-term shift toward other packaging materials, has already pushed the industry into plant closures. Shipments of corrugated material used in boxes and store displays in 2025 were the lowest in 10 years, according to data from the Fibre Box Association, while first-quarter shipments this year were also at the lowest seasonal levels since 2015. Silvernail said International Paper has not seen abrupt changes in order patterns, but market demand in North America and EMEA has been softer than expected.
The cost story could be just as important for investors, especially with transportation expenses rising. In the US, natural gas prices have stayed stable due to ample domestic production, but retail diesel touched record seasonal levels in mid-April. Sonoco Products (NYSE:SON) CEO Howard Coker said higher input prices had an impact of under a few million dollars in the first quarter and are set to add another $8 million to $10 million in second-quarter costs, mostly from freight. Smurfit Westrock (NYSE:SW) now expects energy to have a $270 million to $290 million impact for the year, compared with the $80 million year-over-year increase it would have guided before the conflict, according to CFO Ken Bowles. Benchmark linerboard prices were raised in both March and April, the first back-to-back increases in five years, and those increases have been followed by containerboard price actions from International Paper and Packaging Corp. of America (NYSE:PKG). That could possibly help offset cost pressure, but it may also risk further hitting demand as major consumer-goods companies face the same dynamics, according to Sakonnet Research founder Adam Josephson.
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- Box Makers Struggle to Pass on War Costs as Demand Stays Weak
May 8, 2026
(Bloomberg) -- Packaging producers can’t catch a break as the conflict in the Middle East deals the latest blow to the industry’s protracted downturn.
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Box producers have been facing a slump ever since the pandemic e-commerce boom eased, as consumer demand weakened due to inflation and then tariffs hit. Now the industry is facing more pressure, this time as the blockage of the Strait of Hormuz raises energy prices.
It’s a double whammy for packaging companies: Higher costs have pushed the industry to raise prices at a time when demand was already weak, and US consumer sentiment in April only fell further to a record low in part on higher gasoline prices.
“The consumer is being overall more hesitant,” Andy Silvernail, chief executive officer of International Paper Co., said on an earnings call last week. “We expect that to continue for a little bit of time as the uncertainty is out there economically, kind of broad-based uncertainty that was first driven by trade and tariffs, and now the conflict in the Middle East.”
The pullback in demand, driven both by consumer behavior and a longer-term shift toward other packaging materials, has already forced plant closures across the industry. Shipments of the corrugated material that is used in boxes and store displays in 2025 were the lowest in 10 years, according to data from the Fibre Box Association. First-quarter shipments this year were also at the lowest seasonal levels since 2015.
Silvernail said while the company has not seen “abrupt changes in order patterns,” market demand in both North America and EMEA markets has been softer than expected.
One of the biggest impacts on the industry from the war is higher transportation costs. In the US, natural gas prices have remained stable on ample domestic production, but the cost of retail diesel touched record seasonal levels in mid-April.
Sonoco Products Co. CEO Howard Coker said higher input prices had an impact of “under a few million dollars” in the first quarter and is set to add another $8 million to $10 million in costs in the second quarter, with most of that coming from freight.
Packaging giant Smurfit Westrock Plc now sees energy having a $270 million to $290 million impact for the year, up from the $80 million year-over-year increase that the company would have guided prior to the conflict, Chief Financial Officer Ken Bowles said in an earnings call last week.
Story Continues
The situation has become so dire that benchmark prices for linerboard, the outer layer of corrugated cardboard, were raised in both March and April, marking the first back-to-back increases in five years.
The move from Fastmarkets RISI, whose price assessments are used as a reference for some packaging contracts, has since been followed by a wave of containerboard price increases including from International Paper and Packaging Corp. of America.
Those actions risk further hitting demand, especially as major consumer-goods companies are also struggling with the same dynamics, said Adam Josephson, the founder of Sakonnet Research and a former sell-side analyst for the paper and packaging sector.
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- Assessing International Paper (IP) Valuation After Recent Share Price Weakness
May 7, 2026
Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide.
What International Paper stock performance says today
International Paper (IP) has drawn attention after recent trading, with the stock at $33.52 and showing negative returns over the past month and past 3 months, as well as a negative 1 year total return.
See our latest analysis for International Paper.
The recent 1-day share price return of 5.21% sits against a weaker backdrop, with a 90-day share price return of a 24.45% decline and a 1-year total shareholder return of a 20.63% decline, which points to fading momentum rather than a steady recovery so far.
If you are comparing IP with other materials-related ideas, this is a good moment to widen the lens and check out 8 top copper producer stocks
With International Paper trading at $33.52, currently below analyst price targets and an implied intrinsic value, the question is whether this indicates an undervalued stock or whether the market is already accounting for future growth.
Most Popular Narrative: 27.9% Undervalued
With International Paper's fair value narrative at $46.47 versus a last close of $33.52, the current gap rests on some specific operating assumptions.
The company's substantial capital investments in automation, advanced manufacturing, and mill reliability, funded by targeted asset divestitures and plant closures, are expected to reduce operating costs and materially expand net margins over the next several years. Strategic focus on commercial excellence, including the 80/20 model and improved customer service, is resulting in market share gains in North America and Europe, which should help close the revenue gap with industry peers and lift future earnings.
Read the complete narrative.
Want the full picture on this fair value gap? The narrative hinges on a mix of moderate revenue growth, sharply improving margins and a future earnings multiple that assumes cleaner, higher quality profits.
Result: Fair Value of $46.47 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still clear pressure points, including chronic mill reliability issues and pricing volatility in key containerboard markets, that could derail the upbeat fair value story.
Find out about the key risks to this International Paper narrative.
Next Steps
Seeing both upside potential and clear concerns in this story, it makes sense to check the underlying data yourself, weigh the trade offs, and move quickly if it changes your view with 3 key rewards and 2 important warning signs
Story Continues
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include IP.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- International Paper Nears Its Monthly Support Zone. Opportunity for a Bounce?
May 5, 2026
The materials sector has been a notable laggard over the past month as growth areas like technology and consumer discretionary have continued their ascent. International Paper Co. has trailed its packaging peers in recent months. Packaging Corp of America found a floor at the very round $200 number as it builds the right side of a cup base.
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- IP Q1 Deep Dive: Margin Headwinds Persist Amid Cost Actions and Volume Gains
May 2, 2026
Packaging and materials company International Paper (NYSE:IP) reported Q1 CY2026 results topping the market’s revenue expectations , with sales up 1.2% year on year to $5.97 billion. Its non-GAAP profit of $0.15 per share was in line with analysts’ consensus estimates.
Is now the time to buy IP? Find out in our full research report (it’s free).
International Paper (IP) Q1 CY2026 Highlights:
Revenue: $5.97 billion vs analyst estimates of $5.93 billion (1.2% year-on-year growth, 0.7% beat) Adjusted EPS: $0.15 vs analyst estimates of $0.14 (in line) Adjusted EBITDA: $677 million vs analyst estimates of $686.7 million (11.3% margin, 1.4% miss) Operating Margin: 2.9%, up from -0.6% in the same quarter last year Market Capitalization: $16.11 billion
StockStory’s Take
International Paper’s first quarter results for 2026 prompted a negative market reaction, as investors responded to a combination of margin pressures and operating challenges. Management attributed the quarter’s performance to continued inflationary impacts, weather-related disruptions, and transformation costs that outweighed volume gains in North America. CEO Andrew Silvernail acknowledged, “the gains have not been fast enough or consistent enough to offset the macro pressures,” and cited higher-than-expected unplanned costs, particularly from reliability issues and ongoing restructuring activities. The company’s progress in improving mill productivity and securing customer wins was not sufficient to overcome these headwinds in the eyes of the market.
Looking ahead, management expects the second half of 2026 to benefit from price increases, seasonal volume improvements, and ongoing cost reduction initiatives. CFO Lance Loeffler emphasized that North American earnings should improve as pricing actions and cost-outs take effect, while EMEA margins are projected to recover as higher input costs are passed through to customers. However, both executives maintained a cautious stance, citing uncertainty around energy prices, demand visibility, and the pace of reliability improvements, with Silvernail stating, “visibility beyond the near term is limited,” and underscoring the company’s focus on “controlling the controllables.”
Key Insights from Management’s Remarks
Management pointed to operational improvements and targeted investments in its production network as contributors to outperformance in North American volumes, but acknowledged that cost pressures and macro volatility weighed on overall profitability.
North American volume gains: The company outpaced the overall market in box shipments, driven by new customer wins and productivity improvements at mills and box plants, supported by capital investments and operational discipline initiatives referred to as “lighthouse practices.” Margin pressure from transformation costs: Despite productivity gains, unplanned costs from transformation activities, higher distribution expenses, and reliability challenges remained elevated, limiting the ability to translate volume growth into higher profitability. Winter storm and input costs: Severe winter weather caused significant operational disruptions, resulting in higher natural gas and chemical costs, while volatile diesel prices increased freight and supply chain expenses. These impacts were called out as key drivers of unfavorable cost performance in the quarter. Targeted asset investments and acquisitions: Recent investments, including the acquisition of the NORPAC mill on the West Coast and the ongoing Riverdale machine conversion, are intended to strengthen the company’s competitive position and lower long-term costs, though they create temporary near-term headwinds. EMEA restructuring and cost-out actions: In Europe, management focused on footprint optimization, having completed or initiated 31 facility closures, which are expected to deliver over $200 million in annualized cost savings. The region remains challenged by soft demand and energy price volatility, but the company is executing a multi-phase plan to improve margins and competitiveness.
Story Continues
Drivers of Future Performance
International Paper’s outlook centers on price realization from recent increases, further cost reductions, and recovery in margins as operational challenges subside, though management highlighted macroeconomic uncertainty and energy costs as key variables.
Price increases and contract flow-through: Management expects published price increases in North America and Europe to support a meaningful uplift in earnings beginning in the third quarter and continuing into 2027, as contract pricing lags catch up to higher input costs. Cost-out and footprint rationalization: The company is implementing further cost reductions through plant closures, supply chain optimization, and transformation initiatives. Executives cited a remaining $200-$300 million in latent cost savings in North America and additional actions underway in EMEA. Risks from input costs and reliability: Management cautioned that persistent volatility in energy and freight costs, as well as the need to improve reliability and reduce ancillary transformation expenses, could remain headwinds. CEO Silvernail noted that some transformation costs are expected to be nonrecurring, but achieving best-in-class reliability is still a work in progress.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will focus on (1) the realization of price increases in both North America and EMEA as contract lags unwind, (2) tangible progress in cost reductions through facility closures and supply chain optimization, and (3) improvements in reliability and productivity at key mills and box plants. Additional attention will be paid to the integration of recent acquisitions and the execution of the planned separation of the EMEA business, as these developments are critical to International Paper’s ability to deliver on its updated financial targets.
International Paper currently trades at $30.66, down from $33.58 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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- Do Flat Revenue Expectations Put International Paper's Long-Term Margin Strategy in Focus (IP)?
Apr 30, 2026
Earlier this week, International Paper announced it would report quarterly earnings on Thursday morning, following a period when it beat revenue expectations but fell short on adjusted operating income and EPS. The upcoming report is drawing attention because the market now expects flat revenue compared with a year ago, a sharp slowdown from the very large growth recorded in the same quarter last year. We’ll now examine how expectations for flat revenue in the upcoming earnings release could influence International Paper’s longer-term investment narrative.
Find 53 companies with promising cash flow potential yet trading below their fair value.
International Paper Investment Narrative Recap
To own International Paper, you need to believe its multi‑year transformation can turn a currently unprofitable, capital‑intensive mill network into a steadier cash generator, even with modest revenue growth. The immediate catalyst is whether the next earnings report shows progress on margins and mill reliability despite flat expected sales; the biggest risk is that persistent reliability and restructuring issues continue to weigh on profits. The flat revenue outlook itself does not materially change that near term setup.
In that context, I am watching the company’s steady dividend affirmations, including the recent US$0.4625 per share quarterly payout. Maintaining this cash return to shareholders while reporting net losses highlights the tension between income expectations and balance sheet pressure. If upcoming results again show weak earnings alongside ongoing dividends and heavy capital needs, it could sharpen investor focus on how sustainable this capital allocation really is.
Yet beneath the surface, investors should be aware that mill reliability issues could still...
Read the full narrative on International Paper (it's free!)
International Paper's narrative projects $26.3 billion revenue and $1.7 billion earnings by 2029.
Uncover how International Paper's forecasts yield a $46.47 fair value, a 38% upside to its current price.
Exploring Other PerspectivesIP 1-Year Stock Price Chart
Some of the lowest ranked analysts were already cautious, assuming only 1.7 percent annual revenue growth and about US$1.6 billion in earnings by 2029, so you should expect their view of risks like mill reliability and capital intensity to evolve further after flat revenue guidance and consider how much pessimism you personally think is reasonable.
Explore 3 other fair value estimates on International Paper - why the stock might be worth over 3x more than the current price!
Story Continues
Reach Your Own Conclusion
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
A great starting point for your International Paper research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free International Paper research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate International Paper's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include IP.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- IP Misses Q1 Earnings Estimates, Lowers 2026 EBITDA View on Higher Costs
Apr 30, 2026
International Paper Company IP posted adjusted operating earnings of 15 cents per share for the first quarter of 2026, missing the Zacks Consensus Estimate of 18 cents by 16.7%. The figure declined 11.8% from 17 cents a year ago.
Including one-time items, the company reported earnings of 14 cents per share against a loss of 28 cents in the year-ago quarter.
Net sales were $5.97 billion, up 13.4% year over year, but below the consensus mark of $6.05 billion by 1.2%.
International Paper Company Price, Consensus and EPS Surprise
International Paper Company price-consensus-eps-surprise-chart | International Paper Company Quote
IP’s Costs Rose Faster Than Operating Leverage
Cost of products sold increased 11.5% year over year to $4.24 billion in the quarter. Gross profit rose 18% year over year to $1.73 billion. The gross margin came in at 28.9% compared with the year-ago quarter’s 27.7%.
Selling and administrative costs were $510 million, which increased 4.7% from $487 million in the prior-year quarter. The adjusted operating income in the quarter was $188 million, 11% higher than $169 million in the first quarter of 2025. Adjusted operating margin contracted to 3.1% from 3.2% in the year-ago quarter.
International Paper Sees Diverging Regional Performance
Packaging Solutions North America: The segment’s sales were $3.63 billion, down 2.1% from the prior-year figure. Our projection for the segment’s sales was $3.61 billion.
The segment reported an operating profit of $248 million compared with an operating profit of $142 million in the prior-year quarter. Our projection for the segment was $304 million.
The segment witnessed a sequential increase in the cost of products sold due to higher operating costs affected by winter storm impacts. Input costs rose due to higher natural gas costs and utility costs driven by the winter storm. Profitability, however, improved on a year-over-year basis.
Packaging Solutions EMEA: The segment’s sales were $2.32 billion, up from the last-year figure of $1.55 billion. Our expectation for the segment’s sales was $2.39 billion.
The segment reported an operating loss of $51 million against the prior-year quarter’s operating profit of $46 million. Our projection for the segment was a loss of $46 million. The segment’s results were impacted by higher energy costs.
The company had earlier announced plans to separate its PS North America and PS EMEA operations into two independent, publicly traded companies. The transaction is intended to create two scaled regional leaders in packaging solutions, each supported by dedicated management teams, distinct business models and attractive financial profiles. It is expected to be completed within 12–15 months, subject to customary closing conditions.
Story Continues
IP’s Cash Generation Improved After Portfolio Moves
International Paper generated $611 million of cash from operating activities in the first quarter of 2026 compared with usage of $288 million in the year-ago quarter. IP produced free cash flow of $94 million in the quarter.
The company also received $1.1 billion of net proceeds from the sale of the Global Cellulose Fibers business and used part of that cash to reduce debt by $660 million.
Cash and temporary investments aggregated around $1.24 billion at the end of the first quarter of 2026 compared with $1.15 billion at the end of 2025.
At the end of the first quarter, IP’s long-term debt stood at $8.18 billion, lower than $8.8 billion as of 2025-end.
International Paper Updates 2026 EBITDA View
For the second quarter, the company guided adjusted EBITDA from continuing operations of $520-$570 million, implying a step-down from the first quarter’s adjusted EBITDA of $677 million as seasonal and cost factors persist.
Management updated its outlook to reflect what it described as a volatile environment, with ongoing inflation and macro pressures. For full-year 2026, International Paper provided a target range of $3.20-$3.50 billion in adjusted EBITDA from continuing operations. The company had earlier provided a range of $3.5-$3.7 billion for 2026.
The company emphasized disciplined execution, improving reliability across its network and rigor around capital allocation as key levers to deliver against the updated framework.
IP Stock’s Price Performance
The company’s shares have lost 26.5% in the past year compared with the industry’s 11.8% decline.Zacks Investment Research
Image Source: Zacks Investment Research
International Paper’s Zacks Rank
IP currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Industry Peers This Quarter
Packaging Corporation of America PKG posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The result beat the Zacks Consensus Estimate of $2.17 by 10.6%. Packaging Corp.’s net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%.
Smurfit Westrock Plc SW posted adjusted earnings of 33 cents per share for the first quarter of 2026, down 51.5% from the year-ago period. The figure missed the Zacks Consensus Estimate of 36 cents.
Smurfit Westrock’s net revenues were $7.71 billion, up 0.7% year over year, but missed the consensus estimate of $7.76 billion.
One Paper & Related Product Stocks Awaiting Results
Rayonier Advanced Materials RYAM is slated to release first-quarter 2026 results on May 5. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 62 cents per share. Rayonier Advanced had posted a loss of 49 cents per share in the year-ago quarter.
The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $297.5 million, indicating a 16.4% decline from the prior-year reported figure.
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- Smurfit Westrock Falls Short of Earnings & Revenue Estimates in Q1
Apr 30, 2026
Smurfit Westrock Plc SW has posted adjusted earnings of 33 cents per share for the first quarter of 2026, down 51.5% from the year-ago period. The figure missed the Zacks Consensus Estimate of 36 cents.
Net revenues of $7.71 billion inched up 0.7% year over year but missed the consensus estimate of $7.76 billion.
Smurfit Westrock PLC Price, Consensus and EPS Surprise
Smurfit Westrock PLC price-consensus-eps-surprise-chart | Smurfit Westrock PLC Quote
SW’s Gross Profit Slips in Q1
Smurfit Westrock reported operating profit of $253 million, down 54.2% year over year. The company’s cost of sales [SM1.1]increased 6% to $6.4 billion from the year-ago period. The gross profit fell 19.6% year over year to $1.3 billion.
Adjusted EBITDA declined to $1.08 billion from $1.25 billion a year ago, and the adjusted EBITDA margin contracted to 14% from 16.4%. Adverse weather events were a meaningful drag on quarterly net income and adjusted EBITDA, centered in the North American business.
Smurfit Westrock’s Q1 Segmental Performance
In North America, net revenues totaled $4.5 billion, down 3.6% year over year. While adjusted EBITDA was down 23.9% year over year to $597 million. Corrugated volumes were down 7.4% on a days-adjusted basis, underscoring the near-term pressure on the region that remains the company’s largest value creation opportunity.
Europe, MEA & APAC segment delivered net revenues of $2.8 billion, which marked an increase from $2.6 billion in the year-ago quarter. The segment’s adjusted EBITDA came in at $421 million, up 8.2% year over year. Corrugated volumes increased 0.3% on a days-adjusted basis, supported by solid order books in converting operations and increased demand for containerboard, alongside implemented containerboard price increases across Europe.
Net revenues of the LATAM segment were $0.5 billion, marking a year-over-year increase of 5.3%, aided by good volume growth in key markets. The adjusted EBITDA came in at $106 million compared with $115 million in the first quarter of 2025.
The company also highlighted an acquisition in Ecuador that expands geographic reach and strengthens global paper integration.
SW Cash Position & Balance Sheet Updates
Cash and cash equivalents ended the quarter at $674 million, down from $892 million at the start of the period. Net cash provided by operating activities was $204 million in the quarter compared with the prior-year quarter’s $235 million.
The company previously announced a quarterly dividend of 45.23 cents per share.
Smurfit Westrock Reaffirms 2026 Adjusted EBITDA Outlook
For the second quarter of 2026, SW expects adjusted EBITDA of $1.1-$1.2 billion. For 2026, the company reaffirmed its adjusted EBITDA outlook of $5-$5.3 billion, expecting a stronger and better industry operating environment.
The company also provided key planning items for 2026, including a capital expenditure of $2.4-$2.5 billion, depreciation and amortization of $2.6 billion, cash interest of $0.7 billion and cash taxes of $0.5 billion, with an effective tax rate near 29%.
Story Continues
SW Stock’s Price Performance
Shares of the company have lost 1.6% in the past year compared with the industry’s 8.5% decline. During this time, the Basic Materials sector has jumped 43.2%, whereas the S&P 500 has grown 34.1%.Zacks Investment Research
Image Source: Zacks Investment Research
Smurfit Westrock’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SW’s Peer Performance
International Paper Company IP reported a first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate for earnings of 18 cents.
International Paper’s revenues were $5.97 billion in the quarter under review, up 1.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $6.04 billion.
Packaging Corporation of America PKG posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The reported figure beat the Zacks Consensus Estimate of $2.17 by 10.6%.
Packaging Corp’s revenues rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%.
Paper & Related Product Stock Awaiting Results
Rayonier Advanced Materials RYAM is expected to release first-quarter 2026 results on May 5. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 62 cents per share. The company posted a loss of 49 cents in the year-ago quarter.
The consensus estimate for Rayonier Advanced Materials’ top line is pegged at $297.5 million, indicating a 16% decline from the prior-year reported figure.
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- International Paper’s (NYSE:IP) Q1 CY2026: Beats On Revenue But Stock Drops
Apr 30, 2026
Packaging and materials company International Paper (NYSE:IP) beat Wall Street’s revenue expectations in Q1 CY2026, with sales up 1.2% year on year to $5.97 billion. Its non-GAAP profit of $0.15 per share was in line with analysts’ consensus estimates.
Is now the time to buy International Paper? Find out in our full research report.
International Paper (IP) Q1 CY2026 Highlights:
Revenue: $5.97 billion vs analyst estimates of $5.93 billion (1.2% year-on-year growth, 0.7% beat) Adjusted EPS: $0.15 vs analyst estimates of $0.14 (in line) Adjusted EBITDA: $582 million vs analyst estimates of $686.7 million (9.7% margin, 15.2% miss) Operating Margin: 1.6%, up from -0.6% in the same quarter last year Free Cash Flow was $94 million, up from -$618 million in the same quarter last year Market Capitalization: $17.78 billion
Company Overview
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, International Paper’s 3.9% annualized revenue growth over the last five years was sluggish. This was below our standard for the industrials sector and is a poor baseline for our analysis.International Paper Quarterly Revenue
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. International Paper’s annualized revenue growth of 16.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated.International Paper Year-On-Year Revenue Growth
We can dig further into the company’s revenue dynamics by analyzing its most important segment, Industrial Packaging. Over the last two years, International Paper’s Industrial Packaging revenue (containers, displays, bins) averaged 9.4% year-on-year growth. This segment has lagged the company’s overall sales.International Paper Quarterly Revenue by Segment
This quarter, International Paper reported modest year-on-year revenue growth of 1.2% but beat Wall Street’s estimates by 0.7%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.
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Operating Margin
International Paper was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.2% was weak for an industrials business.
Analyzing the trend in its profitability, International Paper’s operating margin decreased by 7.4 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. International Paper’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.International Paper Trailing 12-Month Operating Margin (GAAP)
In Q1, International Paper generated an operating margin profit margin of 1.6%, up 2.2 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for International Paper, its EPS declined by 15.5% annually over the last five years while its revenue grew by 3.9%. This tells us the company became less profitable on a per-share basis as it expanded.International Paper Trailing 12-Month EPS (Non-GAAP)
We can take a deeper look into International Paper’s earnings to better understand the drivers of its performance. As we mentioned earlier, International Paper’s operating margin expanded this quarter but declined by 7.4 percentage points over the last five years. Its share count also grew by 34.7%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.International Paper Diluted Shares Outstanding
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For International Paper, its two-year annual EPS declines of 44.5% show it’s continued to underperform. These results were bad no matter how you slice the data.
In Q1, International Paper reported adjusted EPS of $0.15, down from $0.23 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 5.4%. Over the next 12 months, Wall Street is optimistic. Analysts forecast International Paper’s full-year EPS of negative $0.16 will flip to positive $1.93.
Key Takeaways from International Paper’s Q1 Results
It was encouraging to see International Paper meet analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its adjusted operating income missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 5.3% to $31.79 immediately after reporting.
International Paper’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
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