International Paper reported a $12 million loss from continuing operations in the second quarter of 2026 and lowered its full-year adjusted EBITDA outlook to between $3.2 billion and $3.4 billion. Higher maintenance spending, costs tied to the Riverdale conversion and continued pressure in EMEA weighed on performance.
Net sales totaled $6.00 billion, compared with $6.14 billion in the second quarter of 2025 and $5.97 billion in the first quarter of 2026. The company had reported income from continuing operations of $75 million a year earlier.
Adjusted EBITDA from continuing operations was $587 million, down from $670 million in the prior-year quarter and $677 million in the first quarter. Adjusted operating earnings were $18 million, or $0.04 per share.
Operating activities generated $526 million in cash, up from $476 million a year earlier. Free cash flow, however, was negative at $7 million, compared with positive free cash flow of $54 million in the second quarter of 2025.
North American sales improve sequentially
Packaging Solutions North America generated sales of $3.69 billion, up from $3.63 billion in the first quarter. Higher prices, volumes and a more favorable product mix supported the increase.
Segment operating profit declined to $204 million from $248 million in the previous quarter. Higher planned maintenance costs, Riverdale conversion spending and investments in mill reliability offset improved mill performance and lower energy costs. Recovered fiber and freight costs also increased.
International Paper completed the Riverdale machine conversion during the quarter.
EMEA loss widens
Packaging Solutions EMEA reported sales of $2.29 billion, slightly below the first-quarter total of $2.32 billion. The segment recorded an operating loss of $80 million, compared with a $51 million loss in the previous quarter and a $1 million loss a year earlier.
International Paper attributed the decline in part to lower volumes in a soft market, as geopolitical uncertainty and weaker consumer sentiment affected demand. Cost-reduction measures and lower energy expenses provided some relief, but higher recovered fiber costs, maintenance spending and wages continued to pressure results.
Packaging margins were also affected by higher paper prices that had not yet been fully reflected in box pricing.
Pine Hill closure weighs on outlook
International Paper expects adjusted EBITDA of between $780 million and $830 million in the third quarter. The forecast includes an estimated $85 million negative impact from the temporary closure of its Pine Hill mill in Alabama.
For the full year, the company now expects adjusted EBITDA from continuing operations of $3.2 billion to $3.4 billion. This is below its previous target of $3.5 billion to $3.7 billion.
Management said its priorities for the second half include improving mill reliability, addressing rising input costs and advancing commercial and cost-reduction initiatives.
The preliminary second-quarter results are expected to be finalized when International Paper files its quarterly report with the U.S. Securities and Exchange Commission on August 6.
International Paper is a global provider of fiber-based packaging solutions, with operations across North America, Europe, the Middle East and Africa. Headquartered in Memphis, Tennessee, the company produces corrugated packaging and related products for industrial and consumer markets. Its shares trade on the New York Stock Exchange under IP and the London Stock Exchange under IPC.
