International Paper’s first quarter results for 2026 prompted a negative market reaction, as investors responded to a combination of margin pressures and operating challenges. Management attributed the quarter’s performance to continued inflationary impacts, weather-related disruptions, and transformation costs that outweighed volume gains in North America. CEO Andrew Silvernail acknowledged, “the gains have not been fast enough or consistent enough to offset the macro pressures,” and cited higher-than-expected unplanned costs, particularly from reliability issues and ongoing restructuring activities. The company’s progress in improving mill productivity and securing customer wins was not sufficient to overcome these headwinds in the eyes of the market.
Is now the time to buy IP? Find out in our full research report (it’s free for active Edge members).
International Paper (IP) Q1 CY2026 Highlights:
- Revenue: $5.97 billion vs analyst estimates of $5.93 billion (1.2% year-on-year growth, 0.7% beat)
- Adjusted EPS: $0.15 vs analyst estimates of $0.14 (in line)
- Adjusted EBITDA: $677 million vs analyst estimates of $686.7 million (11.3% margin, 1.4% miss)
- Operating Margin: 2.9%, up from -0.6% in the same quarter last year
- Market Capitalization: $17.75 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From International Paper’s Q1 Earnings Call
- Michael Roxland (Truist Securities) asked how the company plans to bridge the gap to its 2027 EBITDA targets after the recent downward revision. CEO Andrew Silvernail detailed that incremental price realization and continued cost improvements are expected to drive future gains.
- Mark Weintraub (Seaport Research Partners) questioned when reliability improvements would be fully reflected in results, and whether transformation-related costs were one-time in nature. Silvernail estimated at least $100 million of these costs should subside after this year.
- Weintraub also sought clarification on the expected returns from the NORPAC acquisition. Silvernail responded that the asset should deliver high-teens returns on invested capital once fully integrated.
- Bryan Burgmeier (Citi, on behalf of Anthony Pettinari) inquired about the supply-demand outlook in Europe and how energy price shocks impact competitiveness. Silvernail explained that demand was modestly below expectations, and higher energy prices are pressuring less efficient producers.
- Philip Ng (Jefferies) asked how management is adjusting its approach given repeated guidance revisions and ongoing macro challenges. Silvernail emphasized accountability and the need for more cushion in outlooks, while reaffirming commitment to the company’s long-term strategy.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will focus on (1) the realization of price increases in both North America and EMEA as contract lags unwind, (2) tangible progress in cost reductions through facility closures and supply chain optimization, and (3) improvements in reliability and productivity at key mills and box plants. Additional attention will be paid to the integration of recent acquisitions and the execution of the planned separation of the EMEA business, as these developments are critical to International Paper’s ability to deliver on its updated financial targets.
International Paper currently trades at $33.48, in line with $33.58 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
