International Paper reported $6.20 billion in third-quarter 2026 sales on 28 October, but its results included a $1.38 billion non-cash write-down linked to its European, Middle Eastern and African packaging business.

The US-based packaging group recorded a $1.10 billion loss from continuing operations for the three months to 30 September. The impairment concerned goodwill in Packaging Solutions EMEA. It reflects a reassessment of the accounting value of the business, not an immediate $1.38 billion cash payment.

Adjusted EBITDA from continuing operations was $843 million. The North American packaging operation reported operating profit of $427 million, supported by pricing actions and operational improvements.

In Europe, the company said restructuring and cost reductions were progressing, but weaker economic conditions continued to hinder margin recovery. Its EMEA packaging business recorded an operating loss of $73 million.

International Paper is preparing to separate its EMEA packaging business into a standalone company expected to use the DS Smith name. Management has removed the division from its financial guidance framework, citing the planned separation and related UK regulatory requirements. A capital markets day is expected on 3 November.

The changes are relevant to grocery manufacturers because corrugated cases and transport packaging help products move from production plants to warehouses and supermarket shelves. Suppliers negotiating medium-term contracts will want clarity about manufacturing capacity, service agreements and the management of cross-border operations once the separation advances.

The impairment alone is not evidence that deliveries are at risk or that prices will rise. Packaging buyers should instead monitor future operational announcements, energy and fibre costs, lead times and supply terms. These indicators offer a better guide to practical procurement risk than an accounting charge.

Independent earnings coverage has largely focused on the quarterly loss and restructuring. The supermarket supply-chain question is what the separation means for food brands that source cartons and corrugated transit packaging across several European markets.

GTN has previously compared the supplier with competitors in its UK packaging company analysis and European packaging supplier overview.

Investors and packaging buyers will gain more detail when the proposed separated business presents its strategy on 3 November.

Editor’s Note: Reporting is based on International Paper’s official Q3 2026 earnings release, dated 28 October. GTN focuses on the implications for food and grocery packaging procurement; the reported impairment is non-cash.