International Paper Company (IP) presented its strategic focus at the Jefferies Global Industrials Conference 2026, held on September 10, 2026. The company highlighted its efforts in cost improvements, operational restructuring, and market segmentation.
IP's stock price was cited at $34.64, with shares declining 21.77% over the past year. The company has a dividend yield of 5.34% and has paid dividends for 56 consecutive years. The projected EPS for fiscal 2026 is $1.33, with a market capitalization of $18.34 billion and trailing twelve-month revenue of $24.2 billion.
The company reported significant improvements in North America EBITDA, increasing by about $700 million over two years, driven entirely by cost cuts. Inflation and pricing largely offset each other. Capital expenditures are currently running at about 9% to 9.5% of sales, expected to settle around 7.5% over time, involving major modernization investments across 80 facilities.
IP is restructuring its European operations, closing around 40 facilities and 4,000 employees. The European spin-out process is on track for completion within 12 to 15 months. The company's North American operations have seen a 40% growth in the sales force, shifting from a guaranteed compensation model to an incentive-based model. About 14% to 15% of box assets have been removed from the system, and IP produces 70% of its own energy in the U.S.
Market segmentation includes the 'big middle' (70% of the market), hyper-local segment (20%), and price-seeker segment (10%). Aggregate demand took an estimated hit of about 5 points over 2.5 years due to consumer stress. North American demand is expected to remain flat/flattish for the rest of 2026 and muted through 2027. European consumer spending and demand are described as softer than in North America.
Andy Silvernail, CEO, emphasized controlling what you can, stating: 'Whatever given period of time when the macro gets distorted for whatever reason... you grab onto those things that you can absolutely control.' He also outlined the goal of becoming the largest scaled, most present player in the North American market for packaging.
