International Paper Company (IP) Down 5.0% — Time to Bow Out Gracefully?
International Paper Company (IP) is under pressure on Thursday, currently changing hands at $33.85 on the NYSE. That is a $1.80 drop from the prior close of $35.65. The decline extends a difficult stretch for the stock, which now trades roughly 32.6% below its 52-week high of $50.25, reached on February 12, 2026. The current price is about 15.7% above the 52-week low of $29.26, which leaves IP much closer to the bottom of its range than the top. Most of this year's gains have already been surrendered.
With the session still open, roughly 1.75 million shares have changed hands, about a third of the 90-day average of approximately 5.19 million. Today's selling has so far come on lighter-than-usual turnover.
Why International Paper Company Price is Moving Lower
The most plausible trigger is legal. In its 10-Q filed on November 4, International Paper disclosed that it received a Department of Justice subpoena on September 24 tied to a grand-jury investigation into containerboard pricing and sales. The company said it is cooperating. The filing also described a continuing civil lawsuit alleging price coordination. These are allegations and an investigation, not findings of wrongdoing. Still, a federal grand-jury probe into the company's core product introduces legal and potential financial uncertainty that is difficult to size. The selling looks specific to IP rather than a broad sector rotation. Chemical names Dow Inc. (DOW) and Westlake Corporation (WLK) are down a more modest 0.95% and 1.49%, respectively, even as more volatile Materials names like Cleveland-Cliffs Inc. (CLF) have dropped 10.79%.
The disclosure lands on a fundamental backdrop that was already shaky. International Paper's Q3 report on October 28 showed adjusted EPS of $0.37, ahead of the $0.29 estimate. Revenue of $6.20 billion, however, fell short of the $6.28 billion consensus and slipped 0.4% year over year. Management also lowered its 2026 North America adjusted EBITDA target to $2.27 billion to $2.31 billion. That reset suggests weaker demand or pricing in the company's largest market.
The 10-Q added more detail. It confirmed a GAAP net loss of $1.126 billion, or $2.13 per diluted share, in the quarter. That figure includes a $1.377 billion non-cash goodwill impairment tied to the EMEA business. A year earlier, the company posted a net loss of $1.102 billion, so the reported bottom line has not improved. An EMEA writedown, a trimmed North American target, and now a DOJ inquiry into containerboard pricing together give investors little reason to pay up for the turnaround story.
What is the International Paper Company Rating - Should I Sell?
Weiss Ratings assigns IP a D rating. The rating was downgraded on 10/16/2026. Current recommendation is Sell. The downgrade came just ahead of Q3 report and the DOJ disclosure, and subsequent events have only reinforced the caution behind it. A D rating signals that the risks in the stock currently outweigh its potential reward.
The firmest footing in IP's profile is in two areas rated Fair. On the Dividend Index, the 5.27% yield is substantial for a packaging producer, and the company has a long record of returning cash to shareholders. The rating stops at Fair because payouts have to be funded against a reported EPS of -$6.52 and a forward P/E of -5.38. Those figures raise legitimate questions about coverage, even after accounting for the non-cash impairments in the reported numbers. The Fair rating on the Solvency Index points to a balance sheet that is not in immediate distress. It now has to absorb goodwill writedowns, a lower EBITDA outlook, and the possibility of legal costs tied to the containerboard investigation.
Where the picture deteriorates is across the operating and market-based dimensions, all rated Weak. The Weak Growth Index reflects a 2.25% revenue contraction. Quarterly revenue edged up only 0.5%, from $5.97 billion in the first quarter to $6.00 billion in the second, which is not enough to signal a real recovery in box demand. The Weak Efficiency Index is consistent with a -14.20% profit margin, a deeply negative result for a company with IP's scale in North American containerboard. On the market side, the Weak Total Return Index captures the experience of shareholders who have watched the stock fall more than 32% from its February high. Today's 5% drop on the DOJ disclosure illustrates why the Volatility Index is not rated higher.
Within the Materials sector, International Paper sits alongside Dow Inc. (DOW, D) and Westlake Corporation (WLK, D), while Cleveland-Cliffs Inc. (CLF, D-) and MP Materials Corp. (MP, D-) rank slightly lower. That company offers little reassurance, since the peer group as a whole reflects weak risk/reward profiles across the sector.
About International Paper Company
International Paper Company (IP) is a Materials company and one of the largest producers of renewable fiber-based packaging in the world. Founded in 1898 and headquartered in Memphis, Tennessee, the company serves customers in North America, Latin America, Europe, South America, and North Africa. It is organized into two segments, Packaging Solutions North America and Packaging Solutions EMEA. The North American business is the larger of the two and the core of the company's earnings power.
The company's mill system produces linerboard, medium, whitetop, and saturating kraft. These are the raw paper grades that form the walls and flutes of corrugated packaging. International Paper then converts much of that containerboard in its own facilities into corrugated boxes, bulk bins, shipping containers, and specialty packaging. Its products serve a wide range of end markets, including food and beverage, agriculture, industrial manufacturing, personal care, pharmaceuticals, and consumer goods. That breadth ties its volumes closely to the overall pace of goods movement in the economy.
International Paper's competitive position rests on scale and vertical integration. Owning both the mills and the box plants lets the company capture margin across the value chain and serve large national accounts with consistent supply. Its fiber sourcing and long-standing customer relationships add further durability. That scale does not shield the business from cyclical swings in packaging demand, input and energy costs, or pricing pressure in containerboard. It also means legal scrutiny of containerboard pricing strikes directly at the center of the franchise.
Investor Outlook
International Paper Company (IP) carries a Weiss Rating of D (Sell). The combination of a DOJ grand-jury investigation, a lowered North American EBITDA target, and recurring GAAP losses argues for caution rather than bargain hunting. Investors should watch for any developments in the containerboard pricing probe and the related civil litigation, whether the company delivers on its revised $2.27 billion to $2.31 billion North America EBITDA range, and whether revenue can return to sustained growth. See full rankings of all D-rated Materials stocks inside the Weiss Stock Screener.
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