International Paper: 3 Key Takeaways for Long-Term Investors
Key Points
International Paper expects full-year demand to outpace the packaging industry by 2%.
Management plans to retain a 20% stake in independent DS Smith.
The company closed 20 US facilities while retaining its customer base.
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On its third-quarter 2026 earnings call, held on Oct. 28, 2026, International Paper (NYSE:IP) announced sequential earnings progress driven by price realization and operational efficiency across its packaging operations. Strategic facility closures and mill efficiency gains helped offset persistent cost inflation and cautious consumer spending in key markets. Three things management said stand out.
1. Outpacing Industry Packaging Demand Despite Market Headwinds
Industrial box demand remains sluggish, but disciplined commercial execution allows the business to capture market share from competitors.
Given performance to date and expectations for Q4, we expect to outpace industry demand by approximately 2 percentage points for the full year.
-- Andrew K. Silvernail, Chairman and Chief Executive Officer
2. Moving Swiftly to Separate European Packaging Operations
Separating the Europe, Middle East, and Africa (EMEA) business clarifies operational focus and creates two distinct regional packaging companies.
The upcoming separation creates the opportunity for 2 focused regional packaging leaders.
-- Andrew K. Silvernail, Chairman and Chief Executive Officer
3. Closing Facilities and Restructuring Without Losing Customer Volume
Closing underperforming plant footprint eliminates structural operating costs while preserving core commercial volumes across the supply network.
If you look across the entire system, right, we have in The US, , we have closed 20 facilities in total--box plants and mills, and we have really lost no business along that process.
-- Andrew K. Silvernail, Chairman and Chief Executive Officer
Looking Ahead
Cautious consumer behavior and elevated energy costs persist, yet internal efficiency gains position the business to navigate market volatility. Cost discipline, mill network restructuring, and commercial price realization serve as structural advantages as leadership monitors input cost inflation.
Our confidence in future profitable growth is grounded in what we have accomplished and in the actions already underway not an assumption that the environment will get easier.
-- Andrew K. Silvernail, Chairman and Chief Executive Officer
Disciplined execution remains the primary driver of shareholder value through broader economic recovery cycles.
Our focus is controlling what we can control, and that is the main thing.
-- Andrew K. Silvernail, Chairman and Chief Executive Officer
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