International Paper Q2 sales miss estimates on EMEA weakness

International Paper

30/07/2026 12:15

Overview
US packaging producer's Q2 sales declined and missed analyst expectations
Adjusted operating EPS for Q2 fell year-over-year
North America segment saw higher volumes, while EMEA volumes fell amid soft market

Outlook
International Paper expects Q3 adjusted EBITDA from cont ops of $780-$830 mln, including $85 mln negative impact from Pine Hill mill closure
Company forecasts full-year 2026 adjusted EBITDA from continuing operations of $3.2-$3.4 bln
Company says priorities for H2 include mitigating rising input costs and executing cost-out initiatives

Result Drivers
NORTH AMERICA VOLUMES - Higher sales volumes in North America driven by domestic business growth, seasonal improvement, and an additional shipping day
EMEA WEAKNESS - Lower sales volumes in EMEA due to soft market conditions, geopolitical uncertainty, and weak consumer sentiment
COST ACTIONS AND INPUT COSTS - Cost-out actions and lower energy input costs in EMEA partially offset by higher recovered fiber costs and delayed box pricing

Company press release: ID:nPn3WkHsja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$6.004 bln
$6.18 bln (8 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the paper packaging peer group is "buy"
Wall Street's median 12-month price target for International Paper Co is $42.00, about 1.5% below its July 29 closing price of $42.64
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
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July 30 - Mondi shares surge as price hikes, cost cuts to drive second-half profits
July 28 - Greif fiscal Q3 revenue beats estimates on higher prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)