International Paper Company · NYSE:IP
International Paper — Q2 2026 Earnings Presentation
28 slides from International Paper's earnings presentation, Jul 30, 2026
Slide 1: Second Quarter 2026 Earnings
Second Quarter 2026 Earnings July 30, 2026
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements in this presentation that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forwa
Slide 3: 2Q26 Highlights
2Q26 Highlights PACKAGING SOLUTIONS NORTH AMERICA (PS NA) • Solid financial performance in the quarter • Continuing trend of YoY box volume growth; expect to outpace the industry • Disciplined outage execution in a 2x normal outage quarter • Advanced strategic investments • Improved mill performance
Slide 4: Customer Focus Driving Above-Market Growth
Customer Focus Driving Above-Market Growth North America Box Volume Trend (Per Day Basis) IP's Aurora Commercial 5% Performance & Innovation Center reflects our 0% commitment to IP YoY customer success. (5)% IP YoY Forecast FBA1 Actuals Our designers, engineers, and (10)% technical experts collabora
Slide 5: PS NA Mill Operational Performance Improvement
PS NA Mill Operational Performance Improvement Mill Efficiency Capacity Utilization (excl. planned outages) • Improved mill performance ~5% year-over-year • Redeploying capital to strengthen advantaged assets at the point of most impact • Targeted investments in reliability and productivity driving
Slide 6: Making Investments to Drive Reliability, Productivity & Growth
Making Investments to Drive Reliability, Productivity & Growth Upgrading the Portfolio NORPAC Acquisition • Completed acquisition June ‘26 NORPAC Riverdale • Strong strategic fit to serve growing demand for lightweight, high-performance grades on the West Coast Riverdale Conversion • Machine convers
Slide 7: PS EMEA Investing for Sustained Strength & Growth
PS EMEA Investing for Sustained Strength & Growth Lucca Mill Lucca Mill - Transformational Investment • New recycled paper machine built to produce lightweight paper • Higher yield and better emissions • Lower energy and water consumption Germany Germany Packaging – Cost Out Focus • Footprint optimi
Slide 8: Ongoing Actions in PS EMEA to Drive Results
Ongoing Actions in PS EMEA to Drive Results System Optimization Footprint Reduction1 Net Headcount Reduction Packaging 29 ~2,300 Facilities $210MM+ Paper 2 ~350 of run rate footprint and 1 Mill | 1 Recycling Center headcount cost savings Corporate Functions 1 ~350 announced to date Total PS EMEA 32
Slide 9: Enterprise: 2Q26 Results
Enterprise: 2Q26 Results Sales ($MM) Adj. EBIT1,2 ($MM) $6,142 $5,971 $6,004 $239 $188 $99 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 Adj. EBITDA1 ($MM) Adj. EBITDA Margin1 $670 $677 10.9% 11.3% 9.8% $587 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 Adj. Operating EPS1,2 Free Cash Flow1,2 ($MM) $94 $0.18 $54 $0.15 $0.04 $(7) 2
Slide 10: PS NA: 2Q26 Results
PS NA: 2Q26 Results 1Q26 to 2Q26 ($MM) COMMENTARY 1Q26 Adj. EBITDA1 477 Price & Mix 37 Faster price realization | Favorable mix Volume 16 Seasonality | One more shipping day Improved mill performance | Ixtac insurance proceeds | Non-repeats Ops & Costs 1 Conversion spending | Reliability spending du
Slide 11: PS NA: 3Q26 Outlook
PS NA: 3Q26 Outlook 2Q26 to 3Q26 ($MM) Outlook COMMENTARY 2Q26 Adj. EBITDA1 425 Price & Mix 125 – 130 Realization from prior price increases | Favorable mix One more shipping day | Stable demand environment Volume (20) – (15) Less export Riverdale ramp up | NORPAC operations Ops & Costs 30 – 40 Lowe
Slide 12: PS NA: 2H26 Step-up in Earnings
PS NA: 2H26 Step-up in Earnings Updated View PS NA Adj. EBITDA1 ($MM) ’26 Outlook $2,350 – 2,450MM 1H26 to 2H26 Step-up Growth & Timing Impacts (Approximate $MM) ~+$600MM +$380 Price2 | Volume | Mix | Seasonality 80/20 initiatives (incl. footprint, NORPAC, productivity improvements, +$120 reduction
Slide 13: PS EMEA: 2Q26 Results
PS EMEA: 2Q26 Results 1Q26 to 2Q26 ($MM) COMMENTARY 1Q26 Adj. EBITDA1 208 Higher paper prices for external sales Price & Mix (12) Higher paper price impact on packaging Volume (1) Soft market environment Progress on cost-out initiatives Ops & Costs (16) Higher distribution costs Maintenance Outages
Slide 14: PS EMEA: 3Q26 Outlook
PS EMEA: 3Q26 Outlook 2Q26 to 3Q26 ($MM) Outlook COMMENTARY 2Q26 Adj. EBITDA1 182 Price & Mix 35 – 40 Realization of prior paper price increases | Margin recovery in packaging Volume 15 – 20 Seasonality | Onboarding of customer wins Ops & Costs 10 – 15 Cost-out initiatives | Lower distribution costs
Slide 15: PS EMEA: 2H26 Step-up in Earnings
PS EMEA: 2H26 Step-up in Earnings Updated View PS EMEA Adj. EBITDA1 ($MM) ’26 Outlook $900 – 1,000MM 1H26 to 2H26 Step-up ~+$170MM Growth & Timing Impacts (Approximate $MM) Commercial Improvement2 - Flowthrough of prior paper price increase into box contracts, supported by incremental commercial +$1
Slide 16: IP’s Focus
IP’s Focus Performing well and making progress on separation and investments Separation ▪ Structural reorganization to support spin well underway Updates ▪ Operational separation progressing at speed ▪ Identification and agreement of limited transitional service agreements ▪ Separation remains on tr
Slide 17: Investor Relations
Investor Relations Mandi Gilliland +1-901-419-4595 mandi.gilliland@ipaper.com Michele Vargas +1-901-419-7287 michele.vargas@ipaper.com Media newsroom@ipaper.com 17
Slide 18: Appendix
Appendix
Slide 19: PS NA: 2Q26 Results
PS NA: 2Q26 Results Sales ($MM) Adj. EBIT1 ($MM) $277 $248 3 $204 $3,860 $3,626 $3,688 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 Adj. EBITDA1,2 ($MM) Adj. EBITDA1,2 Margin 13.9% 13.7% $515 $477 12.2% $425 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 (1) See Appendix and Investors section of our website for information on non-
Slide 20: PS EMEA: 2Q26 Results
PS EMEA: 2Q26 Results Sales ($MM) Adj. EBIT1 ($MM) $2,323 $2,291 $2,287 $(1) $(51) $(80) 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 Adj. EBITDA1 ($MM) Adj. EBITDA1 Margin $208 9.0% 8.5% 8.0% $194 $182 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 (1) See Appendix and Investors section of our website for information on non-GAAP
Slide 21: 2Q25 to 2Q26 Adj. EBITDA Bridge
2Q25 to 2Q26 Adj. EBITDA1 Bridge Packaging Solutions Packaging Solutions ($MM) North America EMEA 2Q25 Adj. EBITDA1 515 194 Price & Mix 93 (33) Volume (117) (12) Ops & Costs 8 (31) Maintenance Outages (65) 1 Inputs (9) 63 2Q26 Adj. EBITDA1 425 182 226 262 Depreciation & Amortization Expense (Actual)
Slide 22: Select Financial Metrics
Select Financial Metrics1 ($MM) 2024 2025 2026F Maintenance Outage Expense $371 $390 $431 Targeting Capital Expenditures $921 $1,857 $2,000 – $2,100 Depreciation & Amortization2 $850 $2,747 $1,965 Net Interest Expense $224 $372 $380 Corporate Expense $170 $109 $70 Effective Tax Rate 15% 32% 19-21%3
Slide 23: Maintenance Outages Expenses | 2026 Forecast
Maintenance Outages Expenses | 2026 Forecast ($MM) 1Q26A 2Q26A 3Q26F 4Q26F 2026F Packaging Solutions $70 $197 $68 $67 $402 North America Packaging Solutions $1 $8 $11 $9 $29 EMEA Total Impact $71 $205 $79 $76 $431 23
Slide 24: 1Q26 to 2Q26 Adjusted Operating EPS
1Q26 to 2Q26 Adjusted Operating EPS1 0.02 (0.02) 0.04 (0.20) 0.15 0.05 0.00 0.00 0.04 1Q26 Price/Mix Volume Operations Maintenance Input Costs Corporate Depreciation & 2Q26 & Costs Outages & Other Items Amortization (1) See Appendix and Investors section of our website for information on non-GAAP fi
Slide 25: Sales Volume by Product
Sales Volume by Product1 | Preliminary and Unaudited Three Months Ended Three Months Ended June 30, March 31, 2026 2025 2026 PS NA (In thousands of short tons) Corrugated Packaging2 2,294 2,241 2,220 3 Containerboard 593 793 591 Recycling 409 495 448 Saturated Kraft 6 30 7 Gypsum / Release Kraft 39
Slide 26: 2026 Operating Earnings
2026 Operating Earnings Non-controlling Equity Diluted Pre-Tax Tax Net Income Interest Earnings Average Shares Diluted EPS $MM $MM $MM $MM $MM MM Earnings (Loss) from Continuing Operations 1Q26 $93 $(17) - - $76 532 $0.14 2Q26 $(26) $15 - $(1) $(12) 530 $(0.02) Net Special Items2 1Q26 $26 $(7) - - $
Slide 27: Global Input Costs 2Q26 vs 1Q26
Global Input Costs 2Q26 vs 1Q26 | $31MM Favorable, $0.05 per share By Business By Input Type 21 17 10 56 (3) - (7) (16) (16) Packaging Packaging Solutions Energy Fiber Chemicals Freight OCC Solutions EMEA North America Energy Fiber Chemicals Freight OCC North America EMEA 27
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management has elected to present forward-looking guidance based on Adjusted EBITDA, rather than Adjusted EBIT. This change reflects investor feedback and our view that Adjusted EBITDA provides a more meaningful measure of operating performance and cash flow generation, p
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