International Paper to Create Two Independent Public Companies and Reports Full-Year and Fourth Quarter 2025 Results

Core Insights - International Paper reported a significant loss from continuing operations of $2.84 billion for the full year 2025, which includes $0.63 billion in restructuring charges, $0.96 billion in non-cash accelerated depreciation, and a $2.47 billion pre-tax non-cash goodwill impairment charge [1][3] - The company plans to create two independent public companies focused on packaging solutions in North America and EMEA, aiming to enhance operational efficiency and financial performance [1][2] Financial Performance - Full-Year 2025 Financial Summary: - Net Sales: $23.634 billion, up from $15.835 billion in 2024 - Loss from Continuing Operations: $2.84 billion compared to a profit of $725 million in 2024 - Adjusted EBITDA: $2.976 billion, up from $1.636 billion in 2024 [1][5] - Fourth Quarter 2025 Financial Summary: - Net Sales: $6.006 billion, compared to $3.922 billion in Q4 2024 - Loss from Continuing Operations: $2.363 billion, down from a profit of $88 million in Q4 2024 - Adjusted EBITDA: $758 million, compared to $443 million in Q4 2024 [1][5] Segment Information - The company operates through two segments: Packaging Solutions North America (PS NA) and Packaging Solutions EMEA (PS EMEA) - PS NA reported net sales of $15.175 billion for the full year 2025, while PS EMEA reported $8.451 billion [2][3] - PS NA's operating profit for Q4 2025 was $319 million, while PS EMEA reported a loss of $223 million [2][3] Strategic Initiatives - The company is executing a profitable growth strategy, focusing resources on areas with the highest potential for success, resulting in a 37% year-over-year adjusted EBITDA improvement in North America [1][2] - The separation into two independent companies is expected to be completed within 12-15 months, contingent on customary conditions [2][3] Impairment Charges - A significant non-cash goodwill impairment charge of $2.47 billion was recorded for the PS EMEA segment as of December 31, 2025 [3][6] - The company also reported net special items in Q4 2025 amounting to a net after-tax charge of $2.32 billion, compared to $53 million in Q4 2024 [3][6] Future Outlook - For 2026, the company anticipates adjusted EBITDA of $3.5 billion to $3.7 billion, with a first-quarter target of $740 million to $760 million [1][2] - The targets are based on above-industry growth but do not account for future price realization [1][2]