The Q2 2026 10-Q shows International Paper grappling with rising maintenance expenditures that compressed operating margins despite steady volume in its fiber-based packaging operations. The company remains on track with its strategic separation of Packaging Solutions North America and Packaging Solutions EMEA, aiming to unlock value through distinct geographic and commercial dynamics. While integrated operations provide scale and sustainability advantages, near-term cost inflation and execution risks linked to the pending split present operational challenges. Monitoring upcoming capacity utilization trends, order intake, and cost control efforts will be critical to assessing management’s ability to navigate this transition.