What's Going On With International Paper Stock Today?

International Paper Company IP shares are trading lower on Wednesday after the company reported first-quarter results.

The firm reported adjusted earnings per share of 23 cents, missing the analyst consensus estimate of 36 cents. Quarterly sales of $5.90 billion missed the street view of $6.25 billion.

The company’s adjusted EBITDA margin expanded to 13% in the quarter under review, compared with 9.1% in the year-ago period.

First-quarter earnings include a pre-tax charge of $271 million. The charge is related to depreciation and restructuring costs related to closing the Red River mill in Campti, Louisiana.

Also Read: International Paper To Divest Five Box Plants In Europe, Seeks DS Smith Merger Approval

In the quarter under review, International Paper reported an adjusted EBITDA margin of 9.9% in the Packaging Solutions EMEA unit, significantly lower than 11.5% in the year-ago period.

“Our free cash flow was temporarily impacted by transformation costs and incentive compensation payout,” said Andy Silvernail, Chief Executive Officer.

The company’s free cash flow was negative $618 million, compared with $144 million in the year-ago period.

Outlook: The company expects higher sales and earnings, supported by a full quarter of Packaging Solutions EMEA, improved pricing, cost reductions, and lower depreciation.

Box demand in North America is expected to rise seasonally. However, more planned outages and the absence of prior one-time gains will partly offset the results.

The company has set a 2027 target of $5.5 billion to $6 billion in adjusted EBITDA across its Packaging Solutions businesses.

Price Action: IP shares are trading lower by 4.70% to $45.40 at last check Wednesday.

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