IP Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 10:45 AM CDT 35 min read

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Date

Thursday, April 30, 2026 astatine 10 a.m. ET

Call participants

• Chairman & Chief Executive Officer — Andrew K. Silvernail

• Chief Financial Officer — Lance T. Loeffler

Full Conference Call Transcript

Andrew K. Silvernail: Thanks, Mandi. Good greeting and bully afternoon, everyone. Let america statesman connected descent three. This 4th reinforced the value of controlling the controllables successful a dynamic operating environment. While inflationary pressures and weather-related disruptions created volatility, our absorption remains squarely connected enabling our strategy and improving execution. Today, we outlined the steps we are taking to negociate outer pressures, fortify execution crossed the business, and code gaps wherever show did not conscionable expectations, each successful enactment of driving sustainable semipermanent worth astatine International Paper Company. I privation to commencement by being wide astir what is moving and what needs to improve.

In North America, we delivered above-market maturation for the 3rd consecutive quarter, with container shipments exceeding the manufacture by 3% arsenic planned lawsuit wins came through. We are seeing mill and container works productivity amended arsenic strategical investments and lighthouse practices instrumentality hold, and we are strengthening our footprint done investments to enactment semipermanent profitable growth. We are executing important improvements, but the gains person not been accelerated capable oregon accordant capable to offset the macro pressures. North American mill reliability has inflected positively; however, we request to accelerate the momentum. We person much enactment to bash to scope best-in-class reliability and that is indispensable to delivering the outgo and work show we expect. We besides request to amended execution.

Unplanned costs person been higher than expected, driven by some translation enactment and outer factors. While immoderate level of modulation outgo is inherent arsenic we reshape the footprint and execute our transformation, we request to bash a amended occupation of identifying however to mitigate impacts and reliably flooded shortfalls. Let america crook to EMEA. We person made advancement connected cost-out actions with footprint and overhead flowing done the P&L. The struggle successful the Middle East has accrued the wide situation crossed some regions, with much vigor vulnerability successful EMEA. We are doing a precise bully occupation of managing the exposures and pulling guardant outgo arsenic rapidly arsenic possible.

Importantly, we person stayed focused connected the wide betterment enactment portion a tiny halfway squad executes the separation. The EMEA marketplace has been softer than expected with the macro situation impacting demand. We person modestly underperformed the marketplace successful presumption of volume, arsenic we person held pricing. Our absorption is maximizing full worth by balancing the price-volume trade-offs successful the brushed market. We have, however, sharpened our commercialized focus; we privation to marque definite that we person the close price-value trade-offs to maximize profitability. In parallel, we are pushing harder connected the translation costs that are already underway and we are focusing connected execution and accelerating advancement successful a precise challenging operating environment.