International Paper climbs as May 5 10-Q spotlights cash surge and debt reduction
International Paper shares rose after the company filed its quarterly Form 10-Q on May 5, 2026, following Q1 results that showed a return to profitability. The filing highlighted $611 million in operating cash flow, $1.1 billion in net proceeds from the Global Cellulose Fibers sale, and $660 million of debt paydown.
1. What’s moving the stock
International Paper (IP) traded higher Tuesday after its quarterly filing hit the SEC on May 5, bringing fresh investor focus to the company’s improving cash generation and balance-sheet actions following last week’s earnings release. The move follows IP’s April 30 quarter update that pointed to a return to positive earnings from continuing operations and a sharper emphasis on cost and cash discipline.
2. The numbers investors are reacting to
For the quarter ended March 31, 2026, IP reported net sales of $5.97 billion and earnings from continuing operations of $76 million (diluted EPS of $0.14). Cash provided by operating activities was $611 million and free cash flow was $94 million, while the company also disclosed it received $1.1 billion of net proceeds from the sale of its Global Cellulose Fibers business and used part of that to pay down $660 million of debt.
3. Outlook and catalysts to watch next
Management guided to adjusted EBITDA (from continuing operations) of $520 million to $570 million for Q2 2026 and $3.20 billion to $3.50 billion for full-year 2026, while reiterating that the planned separation of the North America and EMEA businesses remains a central strategic priority. Investors are also tracking integration and portfolio actions tied to the DS Smith combination, plus the pending $360 million agreement to acquire North Pacific Paper Company (NORPAC), which would add West Coast containerboard capacity and could influence volume, pricing, and leverage metrics later this year.