International Paper shares barely moved on Wednesday, closing at $42.26, down 0.2%. The latest filing shows a business that sold slightly less, turned a small profit into a loss, and ended the period with much less cash.
Revenue for the three months ended June 30 fell 2.2% to $6.0 billion from $6.1 billion a year earlier. Net income swung from $75 million to a $12 million loss, taking net margin from 1.2% to negative 0.2%. The top line did not collapse. The profit cushion did.
The operating explanation is a tug-of-war between cost reductions and the costs of running the mills. International Paper said sales volumes declined modestly amid soft market demand, geopolitical uncertainty, and subdued consumer sentiment. It also disclosed that inventory fell 26.2% and accounts receivable fell 10.8%, so two large balance-sheet items were smaller than they were a year ago.
Management’s cost explanation makes the margin pressure more concrete:
"Cost of products sold decreased by $87 million driven by lower sales volumes reflecting the impact of our footprint cost out benefits partially offset by higher planned maintenance outage costs and higher operating costs and input costs."
International Paper, Form 10-Q, August 5, 2026
The company spent less on products sold overall, but the filing also records lower volume and higher maintenance, operating, and input costs. Cost reduction is showing up in the filing. So is the bill for keeping the network running.
Cash is where the comparison gets less tidy. Cash fell from $1.1 billion to $726 million, a 36% decline. International Paper’s six-month comparison says operating cash flow was helped by the absence of $670 million in certain transaction, compensation, benefit, and severance payments made in the first six months of 2025. The six-month comparison also cited higher capital expenditures and acquisition cash payments, according to the company.
International Paper described that cash-flow comparison this way:
"The change in cash provided by operations in the first six months of 2026 compared to the comparable 2025 six-month period was primarily due to certain significant payments related to the DS Smith acquisition transaction costs, incentive compensation and benefit payments and severance payments made in the first six months of 2025 which, in total, impacted operating cash flow by $670 million."
International Paper, Form 10-Q, August 5, 2026
That is an important distinction: the latest balance sheet shows lower inventory and receivables, while cash still declined. The company attributes the cash-use change to investment and acquisition spending, but the three-month income statement still ends in the red.
The broader record adds scale to the tension. Revenue reached $23.6 billion in 2025, up 49.3% from the prior year, while annual net margin was negative 14.9%. The business became much larger on paper, but the latest filing is still about converting that scale into earnings while demand remains soft.
International Paper’s next quarterly report will add the next operating-cash-flow comparison and the company’s explanation of maintenance and input costs. For now, the trade-off is plain: less inventory to carry, less revenue to sell, and no net profit left over.