International Paper is strategically reshaping its operations, concentrating efforts on its primary packaging sector. This shift comes after significant corporate maneuvers, including a merger that expanded its reach into North American and EMEA markets and the divestiture of its Global Cellulose Fibers business. These actions highlight a clear intent to streamline the company's portfolio and enhance its focus on core competencies within the packaging industry.
Despite reporting an increase in revenue and EBITDA margins during the third quarter, International Paper has revised its outlook for 2026–2027. This adjustment reflects the ongoing impact of broader macroeconomic challenges and persistent difficulties within the European market. Although the company is experiencing higher sales volumes in North America, this growth is observed to be at the expense of profit margins. Concurrently, the EMEA region continues to grapple with structural issues, indicating a prolonged period of recovery.
Considering the current market valuation, with an EV/EBITDA ratio of 9.2x and a P/E ratio of 20.3x, International Paper's stock is assessed as fairly priced. Given the anticipated moderate growth and what appears to be a somewhat optimistic market consensus, the shares are currently rated as "Hold." The company's strategic realignments and market performance are indicative of its ongoing efforts to adapt to a dynamic global economic landscape while maintaining a stable, yet cautiously optimistic, financial posture.
