International Paper reported Adjusted EBITDA from continuing operations of $677 million for the Q1 ended March 31, 2026, as the company faced a tougher macro environment including ongoing inflation and a severe winter storm.

Earnings from continuing operations were $76 million on net sales of $5.97 billion. The company received

The Packaging Solutions North America segment reported operating profit of $248 million, a decrease from $319 million in the Q4 2025. Net sales decreased as higher export pricing and a favorable mix were more than offset by seasonally lower volumes. Cost of products sold increased due to higher operating costs and input costs. Operating costs were unfavorably affected by winter storm impacts and higher costs for goods and services, which more than offset footprint cost-out benefits and improved mill and box system productivity. Input costs increased due to higher natural gas and utility costs driven by the winter storm.

The Packaging Solutions EMEA segment reported an operating loss of $51million, an improvement from a loss of $223 million in the Q4 2025. Net sales increased, reflecting higher sales volumes. Sales prices for paper were lower but were offset by improved packaging margins. Planned maintenance outage costs were lower compared to the prior quarter, and depreciation and amortization expense decreased as the Q4 2025 included finalization of the DS Smith acquisition accounting and accelerated depreciation associated with mill and plant closures.

"This quarter, we delivered meaningful progress across the business. In North America, our commercial actions are gaining traction and helping us outgrow the market, while we advance cost-out efforts and make solid gains in mill and box plant productivity. In EMEA, we're accelerating commercial and cost initiatives while a small core team is focusing on the planned separation," said International Paper Chairman and CEO Andy Silvernail. "We still have work to do to improve consistency and reliability, but the primary pressures this quarter came from a tougher macro environment, including ongoing inflation and the severe winter storm."

"Looking ahead," Silvernail added, "our priorities are clear: execute with discipline, improve reliability and performance across our network and manage capital with rigor. We're updating our outlook to reflect the volatile environment, with a strong focus on managing cost and cash flow. We remain confident in our strategy, and the planned separation will enable our North America and EMEA businesses to operate independently and deliver stronger performance."

International Paper stated its priorities are to execute with discipline, improve reliability and performance across its network, and manage capital with rigor. The company is updating its outlook to reflect the volatile environment, with a strong focus on managing cost and cash flow. The company confirmed the planned separation will enable its North America and EMEA businesses to operate independently and deliver stronger performance. A planned maintenance outage in North America was deferred to the Q2 2026.