International Paper’s Q2 loss deepens to US$12M as US$127M maintenance costs, EMEA weakness offset packaging volume gains

GLOBAL – International Paper has swung to a US$12 million loss from continuing operations in Q2 2026, as US$127 million in maintenance outage costs and an US$80 million EMEA operating loss offset a 1.7 percent increase in North American box volumes and US$587 million in adjusted EBITDA.

Net sales dropped 2.2 percent to US$6.0 billion, while adjusted EBITDA fell 12.3 percent to US$587 million. Chief Financial Officer Lance Loeffler noted the quarter included roughly twice the company’s normal outage activity. 

Chairman and CEO Andy Silvernail stated that execution continued to improve across the company. 

Packaging Solutions North America: Volumes Rise as Operating Profit Slides

North American box volumes increased 1.7 percent year-over-year. Price and mix contributed a favourable US$37 million, while volume added US$16 million. 

However, operating profit fell 17 percent to US$204 million from US$248 million in Q1. 

The company completed the Riverdale machine conversion on time and acquired the NORPAC mill in Longview, Washington, and the Delmarva corrugated packaging site in Dover, Delaware.

Packaging Solutions EMEA: Loss Widens Amid Geopolitical Softness

EMEA reported an operating loss of US$80 million, widening from a US$51 million loss in Q1. Higher paper prices were outweighed by weaker volumes in a soft market shaped by geopolitical uncertainty. 

The company has announced more than US$210 million in cost-savings actions in EMEA, including 31 facility closures with net reductions of more than 3,000 positions expected. 

The planned separation of the EMEA packaging business remains on schedule.

Outlook and Strategic Priorities

For Q3, International Paper expects adjusted EBITDA of US$780 million to US$830 million, including an US$85 million impact from the temporary closure of its Pine Hill mill in Alabama.

The company reaffirmed full-year 2026 adjusted EBITDA guidance of US$3.2 billion to US$3.4 billion. 

Silvernail stated that the company’s priorities for the second half are to execute with discipline, improve reliability, mitigate rising input costs, and deliver cost-out initiatives.

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