International Paper

International Paper's $0.4625 quarterly dividend must be reallocated between two successor companies after its planned separation, with no dividend policy or allocation yet publicly disclosed. The Memphis-based containerboard producer announced on January 29, 2026, alongside its fourth-quarter 2025 earnings, that it will split into two independent public companies on a 12 to 15 month timeline, an internal effort CEO Andy Silvernail calls Project Diamond and which he said on the July 30, 2026 second-quarter call remains on track. The payout has held at $0.4625 per quarter on every ex-dividend date from November 12, 2021 through August 14, 2026, a trailing 12-month total of $1.85 yielding 5.24%, while peer Packaging Corporation of America has raised its dividend steadily. The cash flow base is shifting: full-year 2025 operating cash flow was $1.698 billion against $1.857 billion of capex and $977 million of dividends paid, leaving free cash flow negative $159 million, and full-year 2026 adjusted EBITDA guidance was trimmed to $3.20 to $3.50 billion. In the first quarter of 2026, North American packaging operating profit was $248 million while EMEA posted a $51 million operating loss, and the stock is down 18.37% over the past year at $35.89.

Canada's retaliatory tariffs on U.S. goods took effect at 12:01 a.m. on September 8, imposing duties of 15%, 25%, and 50% on about C$27.6 billion ($20 billion) of U.S. imports, including steel, aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics. The measures escalate an 18-month trade dispute following the collapse of negotiations between Ottawa and Washington, and come after the U.S. imposed new 50% duties on Canadian exports in August. U.S. companies to watch include Nucor, Steel Dynamics, Cleveland-Cliffs, Alcoa, Deere, Caterpillar, Whirlpool, Kraft Heinz, General Mills, Eaton, Emerson Electric, Honeywell, International Paper, Dow, LyondellBasell, General Motors, and Ford, among others. Bombardier faces added uncertainty after President Donald Trump threatened to block its aircraft from the U.S. market unless it manufactures in the U.S. The dispute could weigh on Canadian growth, exports, and business investment, with Canadian exports to the U.S. already falling 6.6% in July.

The UK Government confirmed in June 2026 that businesses trading in forest risk commodities must now prove their supply chains are not contributing to illegal deforestation, a change that particularly affects companies relying on timber, paper, and fibre-based products for packaging. For consumer goods businesses with supply chains in China, the ruling exposes them to penalties under Chinese State Council Decree 834, which limits supply chain visibility and prohibits investigations that violate Chinese regulations. The UK imports an estimated £777 million of timber and wood-based items from China, including 53% of all plywood supplies, and firms that comply with the UK's heightened due diligence obligations risk violating Decree 834, potentially facing investigation by Chinese regulators. Large packaging producers like DS Smith have already adapted to similar requirements under the EU Deforestation Regulation, but the new UK law applies to any business with an annual turnover over £1 million, placing greater strain on smaller firms. To avoid rising compliance costs, which averaged 0.10% of revenue for large companies under the EUDR, packaging companies may diversify supply chains away from timber sourcing or switch to recycled materials.

International Paper Company reported a net loss from continuing operations of $12 million for the second quarter, compared with a net profit of $75 million in the prior year. The loss per share was $0.02, versus earnings of $0.14 per share a year earlier. Adjusted operating earnings fell to $18 million, or $0.04 per share, from $94 million, or $0.18 per share. Net sales declined to $6,004 million from $6,142 million. Shares were trading at $43.28, up 1.48 percent, in pre-market activity on the New York Stock Exchange.

International Paper is scheduled to report second-quarter 2026 results on July 30 before the opening bell. The Zacks Consensus Estimate for revenues is $6.17 billion, an 8.8% decline from the year-ago quarter, while the consensus earnings estimate has moved to a loss of three cents per share from a loss of two cents expected 60 days ago, compared with earnings of 20 cents per share a year earlier. The company expects maintenance outage expenses of around $214 million in the second quarter, nearly half of the projected $442 million for the full year, with the majority in the Packaging Solutions North America segment. For that segment, management forecasts adjusted EBITDA in the range of $380 million to $410 million, while the Zacks model projects $385.7 million, a 19% sequential decline and a 25% year-over-year drop. In Packaging Solutions EMEA, adjusted EBITDA is expected between $150 million and $170 million, with the model estimating $159 million, down 24% sequentially and 18% year over year. International Paper also acquired North Pacific Paper Company for $360 million during the quarter.

Companies across the freight economy disclosed plans to eliminate at least 1,222 jobs from July 10 through July 24, with Amazon, Temco Logistics, and Freight Handlers Inc. accounting for most of the layoffs. Amazon plans to temporarily close its 1 million-square-foot fulfillment center in Port St. Lucie, Florida, and lay off 494 employees while the property undergoes a $200 million renovation, with the facility scheduled to close September 17 and reopen in late 2028. Temco Logistics disclosed 223 layoffs across three states as it discontinues flatbed delivery operations nationwide, while Freight Handlers Inc. filed a notice covering 168 employees at five Publix Super Markets distribution centers in Florida after losing its third-party unloading contract. Additional permanent closures or workforce reductions were announced at facilities operated by GEODIS, CJ Logistics America, GXO Logistics, Niagara Bottling, and International Paper. The period also saw 10 transportation, distribution, and freight-dependent businesses seek Chapter 11 bankruptcy protection, including Eagle Logistics LLC, a New Jersey-based carrier with 151 power units and 242 drivers.

International Paper has temporarily suspended operations at its Pine Hill mill in Alabama after rough weather damaged the facility's roof. The company is assessing required repairs and expects to resume operations in August, while working closely with customers to manage potential impacts. In late June, International Paper announced plans to cease operations at certain facilities in Kentucky, Illinois, California, and New Jersey by the end of the third quarter as part of a network optimization strategy. Shares traded 0.59 percent higher at $37.40 in after-hours activity on the NYSE.

International Paper plans to close four U.S. facilities as part of a network optimization initiative. The decision affects hundreds of employees and is intended to improve operational efficiency and shift investment toward higher value opportunities. The closures mark a material change in the company's strategy and operating footprint within the paper and packaging industry.

Wall Street analysts have issued rare downbeat forecasts for Albany and International Paper, while Progressive is seen as a stock poised to outperform. Albany faces flat sales, shrinking free cash flow margins, and declining returns on capital, with a consensus price target implying a 21.2% downside. International Paper has struggled with earnings per share falling 15.5% annually over five years despite revenue growth, and its forward P/E of 22.2 times raises concerns. In contrast, Progressive has grown net premiums earned by 16.5% annually and earnings per share by 41.6% over the last two years, supported by stellar return on equity.

Multiple manufacturers announced plant closures in June affecting more than 480 workers across the packaging industry. Ineos Styrolution plans to permanently close its polystyrene production site in Channahon, Illinois, during the fourth quarter, citing margin pressures; the 400,000-metric-ton site employs approximately 100 people. International Paper announced four shutdowns slated for the third quarter, affecting 330 total employees, including a sheet plant in Aurora, Illinois, and converting plants in Elk Grove, California, and Barrington, New Jersey. Smurfit Westrock intends to permanently close a folding carton facility in Lebanon, Tennessee, on August 14, affecting 52 workers. These closures bring the yearly total of North American packaging industry workers impacted by announced closures and layoffs tracked by Packaging Dive to more than 2,800.

StockStory identifies Howmet as a standout industrials stock to target this week, while recommending investors avoid Avis Budget Group and International Paper. Howmet, with a market cap of $105.9 billion, posted annual revenue growth of 12.3% over five years and annual EPS growth of 43.7%, aided by share repurchases, and its free cash flow margin expanded by 13.2 percentage points. Avis Budget Group, valued at $6.70 billion, saw revenue decline 1% annually over two years and faces eroding returns on capital and depleting cash reserves. International Paper, at $18.51 billion, recorded just 3.9% annual revenue growth over five years while EPS fell 15.5% annually, with waning returns on capital signaling poor investment decisions.

International Paper announced plans to shut down its sheet plant in Aurora, Illinois, and converting plants in Elk Grove, California, and Barrington, New Jersey, by the end of the third quarter of 2026, while also halting preprint operations at its Richwood, Kentucky facility. The closures are part of the company's strategy to improve its cost position, increase capacity, and better serve customers across North America, with affected customers being transitioned to nearby facilities. The move follows a broader portfolio transformation that included the integration of the DS Smith acquisition in January 2025, the sale of the Global Cellulose Fibers business in January 2026 for $1.1 billion in net proceeds, and recent acquisitions of North Pacific Paper Company and Delmarva Corrugated Packaging. In the first quarter of 2026, International Paper reported adjusted operating earnings of 15 cents per share, missing the Zacks Consensus Estimate of 18 cents, while net sales rose 13.4% year over year to $5.97 billion but fell short of the $6.05 billion consensus.

International Paper plans to close four facilities across the United States by the end of the third quarter, affecting 330 employees. The closures include a sheet plant in Aurora, Illinois, converting plants in Elk Grove, California, and Barrington, New Jersey, and the preprint operations at a facility in Richwood, Kentucky. The company said the affected employees are 136 in California, 133 in New Jersey, 41 in Illinois, and 20 in Kentucky. International Paper stated these are strategic actions to optimize its network and focus investments on the highest-value opportunities. Impacted employees will receive outplacement assistance, severance, and benefits.

International Paper Company has underperformed the Nasdaq Composite across several timeframes. Valued at a market cap of $19.1 billion, the stock has gained 4.9% over the past three months, compared to the Nasdaq's 19.1% rise. Over the past 52 weeks, IP declined 18.3% while the Nasdaq returned 34.9%, and on a year-to-date basis, IP is down 4.4% versus the Nasdaq's 13.5% gain. The company reported mixed first-quarter 2026 results, with net sales rising 13.4% year-over-year to $5.97 billion but missing Wall Street expectations of $6.01 billion, and it lowered its full-year adjusted EBITDA guidance to a range of $3.2 billion to $3.5 billion. Analysts maintain a consensus rating of Moderate Buy with a mean price target of $41.64, implying a 10.5% premium.