International Paper Posts Q4 Loss, Spin Off EMEA Packaging Business

Core Viewpoint - International Paper Company reported mixed earnings results and announced plans to split into two independent public companies, leading to a decline in stock price despite exceeding sales expectations [1][3]. Earnings Snapshot - The company reported a fourth-quarter loss of $0.08 per share, missing the analyst estimate of $0.24 per share - Sales reached $6.01 billion, surpassing the consensus estimate of $5.93 billion [1]. Company Split - International Paper plans to split into two independent, publicly traded companies: one focusing on North American operations and the other on EMEA Packaging business - The new International Paper will combine legacy IP and DS Smith assets, while the EMEA Packaging business will consist of DS Smith and IP assets in Europe, the Middle East, and Africa - This strategic move aims to enhance focus on North American operations with a targeted capital allocation strategy [3][4]. Future Outlook - CEO Andy Silvernail indicated that the company experienced a 37% year-over-year adjusted EBITDA improvement in North America and anticipates $3.5-$3.7 billion of adjusted EBITDA for the full year 2026 - The company expects to deliver $740-$760 million in adjusted EBITDA for the first quarter of 2026 - The ongoing transformation investments are expected to build momentum towards forming two scaled, independent regional packaging solutions leaders [2].