Core Viewpoint - International Paper's shares have declined approximately 30% over the past year due to weak demand stemming from lackluster consumer goods consumption [1] Group 1: Company Performance - The company's stock performance has been significantly impacted by a decrease in consumer goods consumption, leading to a drop in demand [1] Group 2: Market Sentiment - There is a prevailing sense of pessimism regarding the company's future performance, as indicated by the substantial decline in share value [1]

IP to Create Two Independent Public Companies; Fourth Quarter and Full Year 2025 Earnings January 29, 2026 Forward-looking Statements Certain statements in this presentation that are not historical in nature may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as "expects," "anticipates," "believes," "estimates," "could," "shou ...

Group 1 - The company, International Paper, is splitting into two publicly traded companies [1] - One company will retain the International Paper brand for North American operations [1] - The other company will be created for operations in Europe, the Middle East, and Africa [1]

International Paper Company (IP), a provider of sustainable packaging solutions, said on Thursday it plans to separate into two independent, publicly traded companies, creating a North America-focused International Paper and a new EMEA Packaging . Shares of the company were up more than 5% in pre-market trading following the announcement.The North America business will include legacy International Paper and DS Smith assets, while the EMEA Packaging unit will comprise packaging operations in Europe, the Mid ...

Financial Performance - Full-year 2025 net sales were $23.63 billion, a significant increase from $15.84 billion in 2024, representing a year-over-year growth of approximately 49.5%[5] - The company reported a loss from continuing operations of $2.84 billion for the full year 2025, which includes a $2.47 billion pre-tax non-cash goodwill impairment charge[5] - Adjusted EBITDA for the full year 2025 was $2.98 billion, with a target of $3.5 - $3.7 billion for 2026[4][5] - In the fourth quarter of 2025, net sales were $6.01 billion, compared to $3.92 billion in the fourth quarter of 2024, marking a year-over-year increase of approximately 53.5%[8] - Total net earnings (loss) for the twelve months ended December 31, 2025, were $(3,516) million, compared to a profit of $557 million in the previous year[34] - Adjusted Operating Earnings (Loss) for the three months ended December 31, 2025, was $(43) million, compared to $135 million for the same period in 2024, reflecting a significant decline[41] - Adjusted EBITDA from Continuing Operations for the three months ended December 31, 2025, was $758 million, up from $443 million in the same period of 2024[46] Segment Performance - The Packaging Solutions North America segment reported an operating profit of $319 million in Q4 2025, up from a loss of $166 million in Q3 2025[18] - The Packaging Solutions EMEA segment experienced an operating loss of $223 million in Q4 2025, compared to a loss of $58 million in Q3 2025[19] Cash Flow and Capital Expenditures - Cash provided by operating activities for the full year 2025 was $1.70 billion, while free cash flow was $(0.16) billion[5] - Cash provided by operating activities for the twelve months ended December 31, 2025, was $1,698 million, slightly up from $1,678 million in 2024[54] - For the three months ended December 31, 2025, cash provided by operating activities was $905 million, compared to $397 million in the same period of 2024[56] - Free cash flow for the three months ended December 31, 2025, was $255 million, an increase from $137 million in the same period of 2024[56] - Capital expenditures for the twelve months ended December 31, 2025, totaled $1,857 million, up from $921 million in 2024[56] - The company reported capital expenditures of $(1,857) million for the twelve months ended December 31, 2025, compared to $(921) million in 2024, reflecting increased investment in operations[54] Impairments and Special Items - A pre-tax, non-cash goodwill impairment charge of $2.47 billion was recorded as of December 31, 2025, related to the PS EMEA reporting unit[21] - In Q4 2025, net special items resulted in a net after-tax charge of $2.32 billion ($4.41 per diluted share), compared to $53 million ($0.15 per diluted share) in Q4 2024 and $205 million ($0.39 per diluted share) in Q3 2025[22] - The total special items, net for Q4 2025 amounted to $2.32 billion after tax, with significant charges including a $2.196 billion goodwill impairment related to the PS EMEA business segment[22] - An impairment charge of $1.07 billion was recorded in 2025 related to the divestiture of the GCF business due to the fair value being below carrying value[24] Strategic Initiatives - The company plans to create two independent public companies focused on packaging solutions in North America and EMEA, expected to be completed in 12-15 months[20] - The company emphasizes its commitment to delivering innovative, sustainable packaging solutions and strengthening supply chains[29] - The company is focused on achieving synergies and value creation from its recent acquisition of DS Smith, which is part of its long-term growth strategy[31] Risks and Considerations - The company faces various risks including economic conditions, climate change, and geopolitical tensions that could impact future performance[31] - Management emphasizes that free cash flow is a key liquidity measure, indicating cash available for dividends, stock repurchases, and future investments[56] - Management cautions that the entire free cash flow amount should not be inferred as available for discretionary expenditures[56] Financial Reporting and Measures - Non-GAAP financial measures are used by management to provide a clearer understanding of financial results and trends[58] - Investors are advised not to rely solely on non-GAAP measures, as they may not be comparable to similar measures from other companies[57] - The company believes that non-GAAP measures assist in financial, operational, and planning decisions[58] - The preliminary unaudited financial results are subject to change and do not represent a comprehensive statement of the company's annual audited financial results for 2025[28]

Core Viewpoint - International Paper plans to create two independent, publicly traded companies focused on sustainable packaging solutions in North America and EMEA, aiming to enhance value creation and operational efficiency [1][3][8]. Group 1: Company Strategy and Structure - The separation will result in two distinct companies: one for North America and another for EMEA, each with tailored management and investment strategies [1][3]. - International Paper's North American business will focus on sustainable packaging solutions, leveraging both legacy IP and DS Smith assets to serve various industries [4][5]. - EMEA Packaging will operate as a standalone entity, emphasizing innovative customer solutions and sustainability, while reallocating resources for enhanced service [8][11]. Group 2: Financial and Operational Goals - The separation is expected to strengthen International Paper's position in North America, allowing for targeted capital allocation and improved operational focus [4][6]. - Following the separation, International Paper aims to accelerate investments in organic growth, productivity, and strategic acquisitions while maintaining a strong balance sheet [6][11]. - EMEA Packaging will continue to execute its 80/20 roadmap to optimize costs and drive innovation, with a focus on meeting evolving market demands [9][10]. Group 3: Leadership and Governance - Andy Silvernail will remain as Chairman and CEO of International Paper, while Tim Nicholls will lead the new EMEA Packaging company [7][12]. - The new EMEA company will have a robust investment-grade balance sheet and a dividend policy to support operational delivery and investment flexibility [11]. Group 4: Transaction Details - The separation is expected to be structured as a spin-off, with International Paper retaining a meaningful ownership stake in the new EMEA company [13]. - The completion of the separation is anticipated within 12-15 months, subject to customary conditions and approvals [14].

trusted leader in corrugated packaging, we collaborate with partners across industries to protect what matters most—strengthening supply chains, advancing sustainability, and creating lasting value for our stakeholders. Discover more at internationalpaper.com.Cautionary Statement Regarding Forward-Looking StatementsCertain statements in this press release that are not historical in nature may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 199 ...

This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. Dive Brief: International Paper announced Thursday it plans to split into two independent, publicly traded companies based on geography, following its acquisition of U.K.-based DS Smith in January 2025. Going forward, IP would be made up of the current North American business, which includes legacy assets from both IP and DS Smith. The Europe, Middle East an ...

International Paper Company ( IP ) has undergone significant transformation in recent periods. Following its merger with DS Smith that expanded its footprint in North America and EMEA markets and the recent completion of the $1.5I'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their ...

Key Takeaways IP is expected to post Q4 revenues of $5.88B, up 28.4% YoY, driven largely by acquisitions.IP's Q4 EPS estimate fell 20% to 28 cents, though it would still improve from last year's level.IP's EMEA sales are projected to jump on DS Smith, while weaker industrial demand pressures margins.International Paper Company (IP) is scheduled to report fourth-quarter 2025 results on Jan 29, 2026, before the opening bell.The Zacks Consensus Estimate for IP’s fourth-quarter revenues is pegged at $5.88 billi ...