International Paper: Earnings Reset And Strategic Uncertainty Drive Downside Risk (Rating Downgrade)

International Paper is downgraded to Sell due to earnings disappointments, strategic shifts, and ongoing business separation. IP's Q1 showed solid revenue growth but persistent margin pressure from cost inflation and transformation expenses, with EBITDA guidance cut to $3.3-$3.5 billion for 2026. Dividend sustainability is in question as FCF guidance lags dividend outflows, raising concerns over future debt or payout reductions.