International Paper posted a first‑quarter profit, reversing a year‑ago loss and sending its Memphis‑based stock down 5.1% to $31.88 in pre‑market trading. Net earnings reached $60 million, or 11 cents per share, after a $105 million loss the prior year. Analysts had expected a small miss overall. The turnaround arrives as the company prepares to split its North American operations from its overseas businesses.

Adjusted results showed earnings of 15 cents a share, edging past the consensus estimate of 14 cents. Management cited cost‑saving initiatives and improved demand for packaging products as drivers. However, guidance for the second quarter projected lower adjusted EBITDA, signaling tighter margins amid lingering supply‑chain constraints and weaker pricing power in key markets. The company also flagged higher raw‑material costs as a headwind.

Investors are likely to digest the mixed signals: a rare profit rebound tempered by a downbeat outlook. The upcoming split could unlock value by allowing separate capital allocation strategies, yet the near‑term earnings dip may pressure the stock further. Margin compression could prompt further cost‑cutting measures in the second half. For now, the balance sheet reflects the profit boost, but earnings momentum remains uncertain.