International Paper Streamlines Operations Through Facility Closures

International Paper Company IP announced plans to shut down its Aurora, IL, sheet plant, as well as its converting plants in Elk Grove, CA and Barrington, NJ, by the end of the third quarter 2026. The company will also halt its preprint operations at its Richwood, KY facility. 

This move is in sync with IP’s strategy to boost its cost position, increase capacity and better serve customers across North America. The company is committed to streamlining its operations and focusing investments on the highest-value opportunities.

International Paper will transition customers affected by the closures to nearby facilities within each region.

IP’s Portfolio Transformation and Strategic Reset

In 2025, International Paper went through a transformation to simplify its portfolio, sharpen its regional focus and boost earnings. This included the integration of the DS Smith acquisition, which was completed in January 2025. The move created a new global leader in sustainable packaging solutions focused on the North America and EMEA markets. 

The company also completed the sale of the Global Cellulose Fibers business in January 2026, received $1.1 billion in net proceeds and paid down $660 million of debt in the first quarter. These actions narrow the company’s focus toward packaging, where management is allocating capital to commercial execution, network reliability and cost reduction. 

In early June, the company announced that it had acquired North Pacific Paper Company, a portfolio company of One Rock Capital Partners. The deal is in sync with International Paper's strategic transformation to maximize value creation for customers, shareholders and employees. 

Last month, International Paper announced the acquisition of Delmarva Corrugated Packaging in Dover, DE. The transaction is set to expand International Paper’s footprint across the expanding East Coast market.

International Paper’s Q1 Performance

IP posted adjusted operating earnings of 15 cents per share for the first quarter of 2026, missing the Zacks Consensus Estimate of 18 cents by 16.7%. The figure declined 11.8% from earnings of 17 cents a year ago.

Net sales were $5.97 billion, rising 13.4% year over year but missing the consensus mark of $6.05 billion by 1.2%.

IP Stock's Price Performance

International Paper's shares have lost 18.9% in the past year compared with the industry's 6.3% decline. During this time, the Basic Materials sector has jumped 28.1%, whereas the S&P 500 has grown 23.5%.

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International Paper’s Zacks Rank & Stocks to Consider

IP currently has a Zacks Rank #5 (Strong Sell). 

Some better-ranked stocks from the basic materials space are Dow Inc. DOW, Albemarle Corporation ALB and Avino Silver & Gold Mines Ltd. ASM. DOW sports a Zacks Rank #1 (Strong Buy) at present, and ALB and ASM each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Dow's current-year earnings is pegged at $2.61 per share, indicating a 377% year-over-year surge. Dow’s shares have gained 13.6% in a year.

Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 124% so far this year. 

Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 62.7% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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