International Paper (NYSE:IP) Issues Earnings Results

International Paper (NYSE:IP) posted its quarterly earnings data on Thursday. The basic materials company reported $0.15 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.03), Zacks reports. The company had revenue of $5.97 billion for the quarter, compared to analyst estimates of $6.02 billion. International Paper had a negative return on equity of 0.35% and a negative net margin of 14.12%.The business’s revenue was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.17 earnings per share.

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

• Updated full‑year guidance — International Paper cut enterprise Adjusted EBITDA to $3.2B–$3.5B (Packaging Solutions NA $2.35B–$2.5B; EMEA $900M–$1B) and now expects Free Cash Flow of ~$300M–$500M, a downward revision versus prior targets.
• North America commercial & operational momentum — Box shipments outpaced the industry (~+2.5% y/y on a per‑day basis, ~3% outperformance) with box productivity up ~7% since Q3 2024, and management is accelerating capital investment (≈50% more per facility in 2025–27) to sustain growth.
• NORPAC acquisition — The bolt‑on Longview mill strengthens the West Coast footprint, expands recycled lightweight capacity, and is expected to deliver a high‑teens ROIC post‑integration, improving network cost and freight position.
• EMEA transformation — mixed near‑term impact — Run‑rate cost savings have risen to >$200M with 31 closures (~2,800 roles), but softer demand, greater energy exposure and timing mismatches between paper and box pricing have pressured margins and led to a reduced EMEA EBITDA outlook.
• Near‑term headwinds and one‑time costs — Q1 was hit by a winter storm (~$53M EBITDA impact), volatile diesel/freight and higher input costs, plus elevated unplanned/transformation costs (management cited at least ~$100M of quasi‑one‑time impacts), weighing on near‑term results.

International Paper Price Performance

Shares of NYSE IP traded up $1.43 during mid-day trading on Friday, reaching $31.85. The company’s stock had a trading volume of 13,278,653 shares, compared to its average volume of 7,341,633. The stock has a 50-day moving average of $37.25 and a two-hundred day moving average of $40.12. The stock has a market capitalization of $16.86 billion, a P/E ratio of -4.75 and a beta of 1.14. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.02 and a current ratio of 1.28. International Paper has a 1-year low of $29.45 and a 1-year high of $56.13.

Insider Transactions at International Paper

In other news, Director Scott Tozier acquired 10,000 shares of the company’s stock in a transaction that occurred on Friday, May 1st. The stock was purchased at an average price of $31.30 per share, with a total value of $313,000.00. Following the completion of the acquisition, the director owned 10,025 shares of the company’s stock, valued at $313,782.50. This trade represents a 40,000.00% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Anders Gustafsson acquired 13,217 shares of the company’s stock in a transaction that occurred on Thursday, March 12th. The stock was purchased at an average cost of $37.83 per share, with a total value of $499,999.11. Following the acquisition, the director directly owned 26,092 shares of the company’s stock, valued at $987,060.36. This trade represents a 102.66% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 36,092 shares of company stock valued at $1,313,064 in the last three months. 0.21% of the stock is currently owned by insiders.

Institutional Investors Weigh In On International Paper

A number of hedge funds have recently modified their holdings of the company. DV Equities LLC purchased a new position in International Paper during the fourth quarter worth about $29,000. Kelleher Financial Advisors purchased a new position in International Paper during the third quarter worth about $36,000. Summit Securities Group LLC boosted its stake in International Paper by 115.4% during the fourth quarter. Summit Securities Group LLC now owns 784 shares of the basic materials company’s stock worth $31,000 after buying an additional 5,875 shares during the period. MUFG Securities EMEA plc purchased a new position in International Paper during the second quarter worth about $73,000. Finally, Los Angeles Capital Management LLC purchased a new position in International Paper during the fourth quarter worth about $92,000. 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: Director Scott Tozier bought 10,000 shares at about $31.30, a direct insider purchase that can be viewed as a vote of confidence by management. SEC Form 4
• Positive Sentiment: Balance‑sheet and cash flow actions: IP received ~$1.1B net proceeds from the sale of its Global Cellulose Fibers business, used ~$660M to pay down debt, generated $611M of operating cash and reported $94M FCF for Q1 — these moves materially improve liquidity and lower leverage. Press Release
• Positive Sentiment: Management’s 2026 targets: IP is guiding to $3.2B–$3.5B of adjusted EBITDA for 2026 and is targeting $300M–$500M of free cash flow, providing a framework for recovery if cost pressures ease. SA: 2026 targets
• Neutral Sentiment: Company filed an 8‑K and held its Q1 call; the transcript and slide deck are available for investors to assess management commentary on costs and the EMEA separation. TipRanks 8‑K
• Neutral Sentiment: Unusually large options flow was observed (big increase in both call and put activity), signaling heightened short‑term speculative interest and volatility. (No single authoritative story; flagged in market activity notes.)
• Negative Sentiment: Q1 missed expectations on EPS ($0.15 vs. $0.18 consensus) and revenue ($5.97B vs. ~$6.02B), and margins were pressured — a direct near‑term negative for sentiment. Q1 results
• Negative Sentiment: Analysts cut forecasts and price targets after Q1 and guidance; JPMorgan trimmed its PT to $43 and moved to neutral, and several outlets report analysts “slashing” forecasts — these actions weigh on near‑term upside. Benzinga: analyst reactions
• Negative Sentiment: Management trimmed its 2026 adjusted EBITDA outlook vs. prior expectations and cited higher costs and macro pressures — the primary driver of the recent negative revisions in sentiment. Zacks: lowered outlook

Analyst Upgrades and Downgrades

A number of research firms have weighed in on IP. Wells Fargo & Company reduced their price objective on shares of International Paper from $40.00 to $38.00 and set an “equal weight” rating for the company in a research report on Friday, March 20th. Seaport Research Partners upgraded shares of International Paper from a “neutral” rating to a “buy” rating and set a $39.00 target price for the company in a research report on Friday. Weiss Ratings cut shares of International Paper from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday. Stifel Nicolaus reduced their target price on shares of International Paper from $51.80 to $50.70 and set a “buy” rating for the company in a research report on Monday, February 9th. Finally, Truist Financial reduced their target price on shares of International Paper from $48.00 to $44.00 and set a “buy” rating for the company in a research report on Wednesday, April 15th. Eight research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $44.98.

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.