International Paper Q4 sales beat expectations, to split into two companies

International Paper Co

29/01/2026 12:07

Overview

Packaging solutions provider's Q4 net sales beat analyst expectations

Company plans to create two independent public companies in North America and EMEA

Preliminary Q4 results include significant goodwill impairment charge

Outlook

International Paper targets 2026 adjusted EBITDA of $3.5-$3.7 bln

Company expects Q1 2026 adjusted EBITDA of $0.74-$0.76 bln

Company plans to form two independent public companies in 12-15 months

Result Drivers

GOODWILL IMPAIRMENT - A $2.47 bln pre-tax non-cash goodwill impairment charge impacted Q4 results, primarily related to the PS EMEA segment

NORTH AMERICA PROFITABILITY - PS NA segment saw improved profitability due to strategic customer wins and higher sales prices despite lower volumes

EMEA CHALLENGES - PS EMEA segment faced lower sales prices and volumes amid a soft demand environment, affecting operating profit

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$6.006 bln
$5.91 bln (10 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and 2 "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 $47.50, about 14.5% above its January 28 closing price of $41.49

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn3SHJvta

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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.)