International Paper reported first-quarter 2026 results while advancing plans to separate its EMEA packaging business, as macroeconomic pressures weighed on performance. The results were released April 30, 2026.
The company posted net sales of $5.97 billion and adjusted EBITDA of $677 million. Earnings from continuing operations reached $76 million, while cash provided by operating activities totaled $611 million.
Performance in the quarter was impacted by inflationary pressures and a severe winter storm, which increased operating and input costs across the business.
Separation plan moves forward
International Paper said the planned separation of its EMEA packaging business remains a key strategic priority, with the aim of enabling its North America and EMEA operations to operate independently.
The company indicated that a dedicated team continues to focus on executing the separation, which is expected to reshape its operational structure and improve performance across both regions.
Regional performance
In North America, the company reported improved commercial execution, with gains in pricing, productivity and cost control helping offset softer volumes.
In EMEA, performance improved compared to the previous quarter, supported by higher volumes and better packaging margins, although profitability remained under pressure.
Cash flow and capital allocation
International Paper generated $94 million in free cash flow during the quarter and reported $611 million in operating cash flow.
The company also received $1.1 billion in proceeds from the sale of its Global Cellulose Fibers business, using $660 million to reduce debt.
Outlook
International Paper updated its outlook to reflect continued market volatility, maintaining a focus on cost discipline, operational execution and capital management.
The company expects adjusted EBITDA of $520 million to $570 million in the second quarter and reaffirmed its full-year guidance of $3.2 billion to $3.5 billion.
International Paper is a global producer of sustainable packaging solutions, focused on corrugated packaging and fiber-based products. The company serves a wide range of industries, supporting supply chains with packaging designed to protect, transport and promote goods.
