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

Rhea-AI Summary

International Paper (NYSE: IP) reported full-year 2025 net sales of $23.63B and a loss from continuing operations of $2.84B, which includes a $2.47B pre-tax goodwill impairment tied to the PS EMEA reporting unit.

The company recorded adjusted EBITDA from continuing operations of $2.98B in 2025 and set 2026 adjusted EBITDA targets of $3.5–3.7B for the full year. IP also announced intent to separate into two independent public packaging companies, expected in 12–15 months.

Positive

• 2026 adjusted EBITDA target of $3.5–3.7B
• Plan to create two independent public packaging companies in 12–15 months
• Full-year 2025 Adjusted EBITDA $2.98B

Negative

• Full-year 2025 loss from continuing operations of $2.84B
• Pre-tax non-cash goodwill impairment of $2.47B related to PS EMEA
• Full-year free cash flow (non-GAAP) of $(0.16)B

News Market Reaction

-6.00% 1.9x vol

26 alerts

-6.00% News Effect

+5.1% Peak Tracked

-14.4% Trough Tracked

-$1.40B Valuation Impact

$21.91B Market Cap

1.9x Rel. Volume

On the day this news was published, IP declined 6.00%, reflecting a notable negative market reaction. Argus tracked a peak move of +5.1% during that session. Argus tracked a trough of -14.4% from its starting point during tracking. Our momentum scanner triggered 26 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $1.40B from the company's valuation, bringing the market cap to $21.91B at that time. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net sales: $23.63 billion Loss from continuing operations: $2.84 billion Adjusted EBITDA: $2.98 billion +5 more

8 metrics

Net sales $23.63 billion Full-year 2025 net sales from continuing operations

Loss from continuing operations $2.84 billion Full-year 2025 GAAP loss from continuing operations

Adjusted EBITDA $2.98 billion Full-year 2025 adjusted EBITDA from continuing operations (non-GAAP)

Free cash flow $(0.16) billion Full-year 2025 free cash flow (non-GAAP)

Q4 net sales $6.01 billion Fourth quarter 2025 net sales from continuing operations

Q4 loss from continuing operations $2.36 billion Fourth quarter 2025 GAAP loss from continuing operations

Q4 adjusted EBITDA $0.76 billion Fourth quarter 2025 adjusted EBITDA from continuing operations (non-GAAP)

2026 adjusted EBITDA target $3.5–$3.7 billion Full-year 2026 adjusted EBITDA guidance from continuing operations

Market Reality Check

Price: $49.19 Vol: Volume 14,249,234 is 2.29...

high vol

$49.19 Last Close

Volume Volume 14,249,234 is 2.29x the 20-day average of 6,226,077, indicating elevated trading interest around these results and the announced separation. high

Technical Shares at $41.49 trade below the 200-day MA of $45.27 and about 30.1% under the 52-week high of $59.36, while sitting 16.68% above the 52-week low of $35.56.

Peers on Argus

While this stock traded on elevated volume around earnings and the separation pl...

While this stock traded on elevated volume around earnings and the separation plan, key packaging peers like SW (-1.3%), AMCR (-1.34%), PKG (-1.09%), BALL (-1.07%) and AVY (-1.04%) also declined, but no peers appeared in the momentum scanner and overall signals point to a stock-specific move rather than a coordinated sector rotation.

Previous Earnings Reports

5 past events · Latest: Oct 30 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 30	Q3 2025 results	Negative	-12.7%	Large GAAP loss with accelerated depreciation tied to mill closures.
Jul 31	Q2 2025 results	Positive	-12.8%	Positive net earnings and sales growth post DS Smith combination.
Apr 30	Q1 2025 results	Neutral	-4.1%	Mixed quarter with net loss but positive adjusted earnings and DS Smith impact.
Jan 30	FY & Q4 2024	Neutral	-1.6%	Full-year profit but Q4 loss with sizable depreciation and restructuring.
Oct 31	Q3 2024 results	Positive	+13.3%	Earnings growth with improving demand and higher prices across portfolio.

Pattern Detected

Earnings events often coincided with sizable moves (average absolute change 8.9%), with negative or restructuring-heavy updates typically followed by declines, and only one recent earnings release showing a strong positive reaction.

Recent Company History

Over the last five earnings-related announcements, the company has navigated restructuring, mill closures and the DS Smith integration while reshaping its portfolio. Results ranged from profitable quarters to sizable GAAP losses driven by accelerated depreciation and other charges. Price reactions were often sizable, especially around 2025 results, with several double-digit declines following updates that highlighted large charges or soft demand. Today’s full-year 2025 report, including a substantial goodwill impairment and the plan to separate PS NA and PS EMEA, fits into this pattern of transformational but disruptive financial periods.

Historical Comparison

earnings

+8.9 %

Average Historical Move

Historical Analysis

In the past year, five earnings announcements saw an average move of 8.9%. Today’s -1.68% change is modest compared with prior earnings-driven swings.

Typical Pattern

Earnings releases since late 2024 trace a shift from traditional industrial packaging toward a restructured packaging solutions platform, incorporating the DS Smith acquisition, mill closures and portfolio pruning while moving from prior profitability into GAAP losses driven largely by non-cash charges.

Market Pulse Summary

The stock moved -6.0% in the session following this news. A negative reaction despite detailed non-G...

Analysis

The stock moved -6.0% in the session following this news. A negative reaction despite detailed non-GAAP metrics fits prior patterns where restructuring-heavy earnings led to downside moves, with past updates averaging 8.9% absolute swings. The latest report features a full-year loss from continuing operations of $2.84B, driven in part by a $2.47B goodwill impairment, alongside free cash flow of $(0.16)B. Yet adjusted EBITDA reached $2.98B and 2026 targets of $3.5–$3.7B were outlined, leaving the market to weigh sizeable non-cash charges against forward profitability and execution on the planned separation.

Key Terms

adjusted ebitda, free cash flow, non-gaap, goodwill impairment, +4 more

8 terms

adjusted ebitda financial

"Adjusted EBITDA (non-GAAP) from continuing operations of $2.98 billion"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Free cash flow (non-GAAP) of $(0.16) billion"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

non-gaap financial

"Adjusted EBITDA (non-GAAP) from continuing operations of $2.98 billion"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

goodwill impairment financial

"pre-tax non-cash goodwill impairment charge of $2.47 billion as of December 31, 2025"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

discontinued operations financial

"presented as Discontinued Operations, net of tax, in the condensed consolidated statement"

Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.

preferred stock financial

"will receive preferred stock in the acquiring entity with an initial liquidation preference"

Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.

segment reporting regulatory

"presented in our financial statement footnotes in accordance with ASC 280 - "Segment Reporting""

Segment reporting is the practice of breaking a company's financial results into the separate parts of its business—such as product lines, geographic areas, or divisions—so outsiders can see how each part is performing. For investors, it matters because it reveals which areas drive profit or loss, like inspecting individual rooms in a house to know which need repair or add value, helping assess growth prospects and risks more accurately.

impairment charge financial

"we recorded an impairment charge in 2025 for a total of $1.07 billion"

An impairment charge is an accounting write-down taken when a company determines an asset—like a building, patent, or investment—is worth less than its recorded value, similar to lowering the price tag on a used car when damage reduces its resale value. It matters to investors because it reduces reported profits and the company’s asset base, can signal business challenges or one-time losses, and may affect future earnings, creditworthiness, and valuation.

AI-generated analysis. Not financial advice.

FULL-YEAR 2025 FINANCIAL SUMMARY

• Net sales of $23.63 billion
• Loss from continuing operations of $2.84 billion includes the following:
  • $2.47 billion pre-tax non-cash goodwill impairment charge
  • $0.96 billion non-cash accelerated depreciation associated with asset rationalization decisions
  • $0.63 billion of restructuring charges
• Adjusted EBITDA (non-GAAP) from continuing operations of $2.98 billion
• Cash provided by operating activities of $1.70 billion
• Free cash flow (non-GAAP) of $(0.16) billion

FOURTH QUARTER 2025 FINANCIAL SUMMARY

• Net sales of $6.01 billion
• Loss from continuing operations of $2.36 billion includes the following:
  • $2.47 billion pre-tax non-cash goodwill impairment charge
  • $0.09 billion non-cash accelerated depreciation associated with asset rationalization decisions
  • $0.16 billion of restructuring charges
• Adjusted EBITDA (non-GAAP) from continuing operations of $0.76 billion
• Cash provided by operating activities of $0.91 billion
• Free cash flow (non-GAAP) of $0.26 billion

2026 FINANCIAL TARGETS

• Adjusted EBITDA (non-GAAP) from continuing operations
  • Full-year: $3.5-$3.7 billion
  • First quarter: $0.74-$0.76 billion

MEMPHIS, Tenn., Jan. 29, 2026 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC) (the "Company") today announced results for the full-year and fourth quarter ended December 31, 2025. The Company separately announced its plan to create two independent, publicly traded packaging solutions companies in North America and EMEA.

"Throughout 2025, we made significant progress executing our profitable growth strategy," said Chairman and CEO Andy Silvernail. "By deploying and embedding 80/20, we focused resources where we can win and built two regional packaging powerhouses. In North America we grew above market in the second half of the year and delivered 37% year-over-year adjusted EBITDA improvement. In EMEA, we moved decisively and made significant progress in applying our commercial and structural cost levers to set us up for a strong year ahead."

"As we enter 2026, we anticipate meaningful progress on our commercial and cost-out initiatives and expect to deliver $3.5 - $3.7B of adjusted EBITDA for the full year and $740-760 million in the first quarter.  These targets are based on above-industry growth but do not reflect future price realization. Further, we have not yet fully assessed the impact of this week's winter storm across the US."  Silvernail continued, "We have confidence in the plans to achieve our targets for 2026 and believe our ongoing transformation investments will allow us to build momentum as we work toward forming two scaled, independent, regional packaging solutions leaders in North America and EMEA."   

Select Financial Measures

The preliminary full-year and fourth quarter 2025 results discussed in this release will be finalized in our Annual Report on Form 10-K, which we intend to file with the U.S. Securities and Exchange Commission on February 26, 2026.

		Fourth Quarter 2025		Fourth Quarter 2024		Third Quarter 2025		Full-Year 2025		Full-Year 2024
Net Sales		$         6,006		$         3,922		$         6,222		$       23,634		$       15,835
Earnings (Loss) from Continuing Operations before  Income Taxes and Equity Earnings (Loss)		(2,654)		113		(675)		(3,368)		369
Earnings (Loss) from Continuing Operations		(2,363)		88		(426)		(2,838)		725
Adjusted EBITDA from Continuing Operations		758		443		859		2,976		1,636
Adjusted Operating Earnings (Loss)		(43)		135		(224)		(100)		471
Cash Provided By (Used For) Operating Activities		905		397		605		1,698		1,678
Free Cash Flow		255		137		150		(159)		757

Diluted EPS from Continuing Operations and Adjusted Operating EPS

		Fourth Quarter 2025		Fourth Quarter 2024		Third Quarter 2025		Full-Year 2025		Full-Year 2024
Diluted Earnings (Loss) Per Share from Continuing  Operations		$       (4.48)		$         0.25		$       (0.81)		$       (5.61)		$         2.05
Add Back – Non-Operating Pension Expense (Income)		(0.01)		(0.02)		(0.01)		(0.02)		(0.12)
Add Back – Net Special Items Expense (Income)		4.98		0.17		0.67		6.40		0.66
Income Taxes - Non-Operating Pension and Special Items		(0.57)		(0.02)		(0.28)		(0.97)		(1.26)
Adjusted Operating Earnings (Loss) Per Share		$        (0.08)		$          0.38		$        (0.43)		$        (0.20)		$          1.33

NON-GAAP MEASURES
This release refers to the following non-GAAP financial measures:         

Adjusted EBITDA from continuing operations is a non-GAAP financial measure and is defined as earnings (loss) from continuing operations before income taxes, equity earnings (loss), interest expense, net, net special items, non-operating pension expense (income) and depreciation and amortization. The most directly comparable GAAP measure is earnings (loss) from continuing operations before income taxes and equity earnings (loss). A reconciliation of earnings (loss) from continuing operations before income taxes and equity earnings (loss) to adjusted EBITDA from continuing operations and an explanation of why we believe this non-GAAP financial measure provides useful information to investors is included later in this release.

Adjusted operating earnings (loss) and adjusted operating earnings (loss) per share are non-GAAP financial measures defined as earnings (loss) from continuing operations (a GAAP measure) excluding net special items and non-operating pension expense (income). Earnings (loss) from continuing operations and diluted earnings (loss) per share from continuing operations are the most directly comparable GAAP measures. The Company calculates adjusted operating earnings (loss) (non-GAAP) by excluding the after-tax effect of non-operating pension expense (income) and net special items from the earnings (loss) from continuing operations reported under U.S. GAAP. Adjusted operating earnings (loss) per share is calculated by dividing adjusted operating earnings by the (loss) diluted average shares of common stock outstanding. Management uses these measures to focus on on-going operations, and believes that such measures are useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. For discussion of net special items and non-operating pension expense (income), see the disclosure under Effects of Net Special Items and Consolidated Statement of Operations and related notes included later in this release. A reconciliation of earnings (loss) from continuing operations to adjusted operating earnings (loss) and diluted earnings (loss) from continuing operations per share to adjusted operating earnings (loss) per share, and an explanation of why we believe these non-GAAP financial measures provide useful information to investors, are included later in this release.

Free cash flow is a non-GAAP financial measure, which equals cash provided by (used for) operations (a GAAP measure) less capital expenditures. The most directly comparable GAAP measure is cash provided by (used for) operations. A reconciliation of cash provided by (used for) operations to free cash flow and an explanation of why we believe this non-GAAP financial measure provides useful information to investors is included later in this release.

SEGMENT INFORMATION
Effective in 2025, the Chief Operating Decision Maker (CODM) began reviewing the Company's financial results and operations under a structure that reflects the scope of the Company's continuing operations: Packaging Solutions North America (PS NA) and Packaging Solutions EMEA (PS EMEA). The PS EMEA segment includes the Company's legacy EMEA Industrial Packaging business and the EMEA DS Smith business. As such, amounts related to the Company's legacy EMEA Industrial Packaging business have been recast out of the Industrial Packaging segment into the new PS EMEA segment for all prior periods. The North America DS Smith business has been included in the PS NA segment. Amounts related to the Company's legacy North America Industrial Packaging business have been reported in the PS NA segment for all prior periods. This decision followed completion of our acquisition of DS Smith on January 31, 2025.

Following the announcement of a definitive agreement to sell the Global Cellulose Fibers (GCF) business on August 21, 2025, the GCF business is no longer a reportable segment.  All current and historical operating results of the GCF business are presented as Discontinued Operations, net of tax, in the condensed consolidated statement of operations. For discussion of discontinued operations, see the disclosure under Discontinued Operations and Consolidated Statement of Operations and related notes included later in this release. 

The following table presents net sales and business segment operating profit (loss), which is the Company's measure of segment profitability. Business segment operating profit (loss) is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments and is presented in our financial statement footnotes in accordance with ASC 280 - "Segment Reporting". Fourth quarter 2025 net sales by business segment and operating profit (loss) by business segment compared with the third quarter of 2025 and the fourth quarter of 2024 along with full-year 2025 net sales by business segment and operating profit (loss) by business segment compared with full-year 2024 are as follows:

Business Segment Results

(In millions)		Fourth Quarter 2025		Fourth Quarter 2024		Third Quarter 2025		Full-Year 2025		Full-Year 2024
Net Sales by Business Segment
Packaging Solutions North America		$           3,715		$           3,539		$           3,898		$         15,175		$         14,293
Packaging Solutions EMEA		2,300		357		2,310		8,451		1,355
Corporate and Inter-segment Sales		(9)		26		14		8		187
Net Sales		$           6,006		$           3,922		$           6,222		$         23,634		$         15,835
Business Segment Operating Profit (Loss)
Packaging Solutions North America		$              319		$              228		$            (166)		$              572		$              891
Packaging Solutions EMEA		(223)		19		(58)		(236)		60

Packaging Solutions North America (PS NA) business segment operating profit (loss) in the fourth quarter of 2025 was $319 million compared with $(166) million in the third quarter of 2025. In the fourth quarter of 2025, net sales decreased driven by lower volumes due to exiting the non-strategic export containerboard and specialty markets and three fewer shipping days. These impacts were partially offset by higher sales prices for boxes and strategic customer wins. Cost of products sold decreased due to lower sales volumes and operating costs, including the cost-out impact of our mill strategic actions and lower input costs, partially offset by higher planned maintenance outage costs. Depreciation and amortization in the fourth quarter of 2025 was lower due to the non-repeat of $619 million of accelerated depreciation associated with the previously announced closures of the Red River containerboard mill in Campti, Louisiana and the Savannah and Riceboro containerboard mills in Georgia in the third quarter of 2025. 

Packaging Solutions EMEA (PS EMEA) business segment operating profit (loss) in the fourth quarter of 2025 was $(223) million compared with $(58) million in the third quarter of 2025. Net sales decreased in the fourth quarter of 2025 compared with the third quarter of 2025, reflecting lower sales prices and lower volumes in a continued soft demand environment. Cost of products sold decreased driven by lower fiber and energy costs and lower planned maintenance outage costs. Depreciation and amortization expense in the fourth quarter of 2025 was higher primarily due to the finalization of the valuation of assets and changes to estimated lives associated with the acquisition accounting of DS Smith. Depreciation and amortization expense was also impacted by $73 million of accelerated depreciation associated with mill and plant closures in the fourth quarter of 2025 compared with $56 million in the third quarter of 2025.

CREATION OF TWO INDEPENDENT PUBLIC COMPANIES

In a separate press release today, the Company announced its intent to form two independent, public companies through the separation of its PS NA and PS EMEA businesses. This decisive action is intended to create two scaled, regional packaging solutions leaders, each with focused management teams and business models, tailored investment and capital allocation strategies, and compelling financial profiles. The separation is expected to be completed in 12-15 months, subject to the satisfaction of certain customary conditions.

In conjunction with our annual strategic review, including our evaluation to separate into two independent, public companies, we measured the current fair value of both PS NA and PS EMEA relative to their carrying values.  Based on the results of this analysis and in accordance with US GAAP, the company recorded a pre-tax, non-cash goodwill impairment charge of $2.47 billion as of December 31, 2025 related to the PS EMEA reporting unit.

EFFECTS OF NET SPECIAL ITEMS

Continuing Operations
Net special items include items considered by management to not be reflective of the Company's underlying operations. Net special items in the fourth quarter of 2025 amount to a net after-tax charge of $2.32 billion ($4.41 per diluted share) compared with a net after-tax charge of $53 million ($0.15 per diluted share) in the fourth quarter of 2024 and a net after-tax charge of $205 million ($0.39 per diluted share) in the third quarter of 2025. Net special items in all periods include the following charges (benefits):

		Fourth Quarter 2025				Fourth Quarter 2024				Third Quarter 2025
(In millions)		Before Tax		After Tax		Before Tax		After Tax		Before Tax		After Tax
PS EMEA goodwill impairment		$        2,467		$        2,196	(a)	$            —		$             —		$             —		$             —
Severance and other costs		162		128	(b)	45		34	(b)	342		257	(b)
DS Smith combination costs (benefits)		10		8	(c)	38		38	(c)	(26)		(18)	(c)
Net (gains) losses on sales and impairments of businesses		10		8	(d)	—		—		16		12	(d)
Net (gains) losses on sales and impairments of assets		(18)		(12)	(e)	(59)		(45)	(e)	15		11	(e)
Environmental remediation adjustments		(5)		(4)	(f)	35		26	(f)	7		5	(f)
Tax benefit related to capital losses		—		—		—		—		—		(62)	(g)
Total special items, net		$        2,626		$        2,324		$            59		$             53		$           354		$           205

(a)	Non-cash goodwill impairment related to the Company's PS EMEA business segment. See note (f) of the Consolidated Statement of Operations.
(b)	Severance and other costs associated with the Company's 80/20 strategic approach which includes the realignment of resources and mill strategic actions. See notes (e) and (m) of the Consolidated Statement of Operations.
(c)	Transaction, integration and other costs/benefits that the Company believes are not reflective of the Company's underlying operations. See notes (a), (b), and (k) of the Consolidated Statement of Operations.
(d)	Includes charges related to the sale of the Company's kraft paper bag business and the sale of five European box plants in Mortagne, Saint-Amand and Cabourg (France), Ovar (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection with the DS Smith combination. See note (f) of the Consolidated Statement of Operations.
(e)	Includes gains on assets sales related to our permanently closed Courtland, Alabama paper mill and Orange, Texas containerboard mill and charges associated with the sale of the Company's aircraft and other assets. See note (g) of the Consolidated Statement of Operations.
(f)	Environmental remediation adjustments associated with remediation work at a waste pit site at a mill acquired but never operated by the Company, and last utilized by the predecessor owner of the mill, and post-closure remediation work associated with mill strategic actions implemented in Q4 2023. See note (a) of the Consolidated Statement of Operations.
(g)	Tax benefit related to capital losses associated with the announced agreement to sell our Global Cellulose Fibers business. See note (h) of the Consolidated Statement of Operations.

Discontinued Operations
As announced on January 23, 2026, the Company completed the sale of its GCF business to American Industrial Partners (AIP) for $1.5 billion, subject to customary closing conditions. As part of the consideration, the Company will receive preferred stock in the acquiring entity with an initial liquidation preference of $190 million.  In connection with our decision to divest the GCF business, we evaluated the carrying value of the related long-lived assets and determined that their fair value less costs to sell was below carrying value.  Accordingly, we recorded an impairment charge in 2025 for a total of $1.07 billion, as detailed in the table below.

Discontinued operations, net of taxes includes the following charges (benefits):

		Fourth Quarter 2025				Fourth Quarter 2024				Third Quarter 2025
(In millions)		Before Tax		After Tax		Before Tax		After Tax		Before Tax		After Tax
Global Cellulose Fibers transaction costs		$            10		$               8		$               5		$               4		$             15		$             12
Net loss on impairment of business		62		47		—		—		1,008		758
Severance and other costs (benefits)		(3)		(2)		118		89		(5)		(4)
Total		$             69		$             53		$           123		$             93		$        1,018		$           766

EARNINGS WEBCAST 
The Company will host a webcast today to discuss our proposal to create two independent public companies, as well as preliminary full-year and fourth quarter 2025 earnings and current market conditions, beginning at 10 a.m. ET (9 a.m. CT). All interested parties are invited to listen to the webcast via the Company's website by clicking on the Investors tab and going to the Events & Presentations page at https://www.internationalpaper.com/investors/events-presentations. A replay of the webcast will also be on the website beginning approximately two hours after the call.

Parties who wish to participate in the webcast via teleconference may dial +1 (646) 307-1963 or, within the U.S. only, (800) 715-9871, and ask to be connected to the International Paper fourth quarter 2025 earnings call. The conference ID number is 4020847. Participants should call in no later than 9:45 a.m. ET (8:45 a.m. CT). An audio-only replay will be available for ninety days following the call. To access the replay, dial +1 (609) 800-9909 or, within the U.S. only, (800) 770-2030 and when prompted for the conference ID, enter 4020847.

PRELIMINARY UNAUDITED FINANCIAL RESULTS
The selected unaudited financial results discussed in this release are preliminary and subject to our quarter-end and year-end control procedures. As a result, the financial results presented in this release may change in connection with the finalization of our annual audited financial statements for the full-year and fourth quarter 2025. In addition, the information in this release is not a comprehensive statement of our financial results for the full-year and fourth quarter 2025, and should not be viewed as a substitute for financial statements prepared in accordance with generally accepted accounting principles, and are not necessarily indicative of our results for any future period.

ABOUT INTERNATIONAL PAPER
International Paper (NYSE: IP; LSE: IPC) is dedicated to empowering customers, teammates, and shareowners to thrive by delivering innovative, sustainable packaging solutions for a changing world. As a 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 Statements
Certain 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 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," "should," "can," "forecast," "outlook," "intend," "look," "may," "will," "remain," "confident," "commit," "plan," and "preliminary" or similar expressions. These statements are not guarantees of future performance and reflect management's current views and speak only as to the dates the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding anticipated financial results, economic conditions, industry trends, future prospects, and the anticipated benefits, execution and consummation of strategic corporate transactions. Factors which could cause actual results to differ include but are not limited to: (i) our ability to consummate and achieve the benefits expected from, and other risks, costs and expenses associated with, our plans to separate our North America and Europe, Middle East and Africa ("EMEA") operations into two independent public companies and other acquisitions, joint ventures, divestitures, spinoffs, capital investments and other corporate transactions on a timely basis or at all, including the risk that an impairment charge may be recorded for goodwill or other intangible assets, which may lead to decreased assets and reduced net earnings; (ii) our ability to integrate and implement our plans, forecasts, the internal control framework of DS Smith, including assessment of its internal controls over financial reporting, and achieve the synergies, value creation, target run rates and other expectations with respect to the combined company, including in light of our increased scale and global presence; (iii) risks associated with strategic business decisions including facility closures, business exits, operational changes, and portfolio rationalizations intended to support the Company's 80/20 strategic approach for long-term growth; (iv) risks with respect to climate change and global, regional, and local weather conditions, as well as risks related to our targets and goals with respect to climate change and the emission of greenhouse gases and other environmental, social and governance matters, including our ability to meet such targets and goals; (v) loss contingencies and pending, threatened or future litigation, including with respect to environmental and antitrust related matters; (vi) the level of our indebtedness, including our obligations related to becoming the guarantor of the Euro Medium Term Notes as a result of our acquisition of DS Smith, risks associated with our variable rate debt, and changes in interest rates; (vii) the impact of global and domestic economic conditions and industry conditions, including with respect to current challenging macroeconomic conditions, inflationary pressures and changes in the cost or availability of raw materials, energy sources and transportation sources, supply chain shortages and disruptions, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products, and conditions impacting the credit, capital and financial markets; (viii) risks arising from conducting business internationally, domestic and global geopolitical conditions, military conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the further expansion of such conflicts, and the geopolitical and economic consequences associated therewith), as well as broader geopolitical tensions involving major global actors, including those related to China and Venezuela, changes in currency exchange rates, including in light of our increased proportion of assets, liabilities and earnings denominated in foreign currencies as a result of our business combination with DS Smith, trade policies (including but not limited to protectionist measures and the imposition of new or increased tariffs as well as the potential impact of retaliatory tariffs and other penalties including retaliatory policies against the United States) and global trade tensions, downgrades in our credit ratings, and/or the credit ratings of banks issuing certain letters of credit, issued by recognized credit rating organizations; (ix) the amount of our future pension funding obligations, and pension and healthcare costs; (x) the costs of compliance, or the failure to comply with, existing, evolving or new environmental (including with respect to climate change and greenhouse gas emissions), tax, trade, labor and employment, privacy, anti-bribery and anti-corruption, and other U.S. and non-U.S. governmental laws, regulations and policies (including but not limited to those in the United Kingdom and European Union); (xi) a material disruption at any of our manufacturing facilities or other adverse impact on our operations due to severe weather, natural disasters, climate change or other causes; (xii) our ability to realize expected benefits and cost savings associated with restructuring initiatives; (xiii) cybersecurity and information technology risks, including as a result of security breaches and cybersecurity incidents; (xiv) our exposure to claims under our agreements with Sylvamo Corporation;  (xv) our ability to attract and retain qualified personnel and maintain good employee or labor relations; (xvi) our ability to maintain effective internal control over financial reporting; and (xvii) our ability to adequately secure and protect our intellectual property rights. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements can be found in our press releases and reports filed with the U.S. Securities and Exchange Commission. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

INTERNATIONAL PAPER COMPANY
Condensed Consolidated Statement of Operations
Preliminary and Unaudited
(In millions, except per share amounts)
	Three Months Ended December 31,				Three Months Ended September 30		Twelve Months Ended December 31,
	2025		2024		2025		2025		2024
Net Sales	$           6,006		$        3,922		$                      6,222		$     23,634		$    15,835
Costs and Expenses
Cost of products sold	4,123	(a)	2,765	(j)	4,287	(a)	16,637	(a)	11,397	(j)
Selling and administrative expenses	545	(b)	481	(k)	493	(b)	2,050	(b)	1,703	(k)
Depreciation and amortization	697	(c)	221		1,099	(c)	2,747	(c)	851	(l)
Distribution expenses	543		279		524		2,000		1,180
Taxes other than payroll and income taxes	42		27		40		210	(d)	119
Restructuring charges, net	162	(e)	45	(m)	342	(e)	626	(e)	103	(m)
Net (gains) losses on sales and impairments of businesses	2,477	(f)	—		16	(f)	2,442	(f)	—
Net (gains) losses on sales and impairments of assets	(18)	(g)	(59)	(n)	15	(g)	(70)	(g)	(59)	(n)
Interest expense, net	95		58		85		372		214	(o)
Non-operating pension expense (income)	(6)		(8)		(4)		(12)		(42)
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings (Loss)	(2,654)		113		(675)		(3,368)		369
Income tax provision (benefit)	(291)	(h)	24		(250)	(h)	(533)	(h)	(361)	(p)
Equity earnings (loss), net of taxes	—		(1)		(1)		(3)		(5)
Earnings (Loss) From Continuing Operations	(2,363)		88		(426)		(2,838)		725
Discontinued Operations, net of taxes	(21)	(i)	(235)	(q)	(676)	(i)	(678)	(i)	(168)	(q)
Net Earnings (Loss)	$         (2,384)		$         (147)		$                    (1,102)		$     (3,516)		$        557
Basic Earnings (Loss) Per Common Share
Earnings (loss) from continuing operations	$           (4.48)		$          0.25		$                      (0.81)		$       (5.61)		$       2.09
Discontinued operations	(0.04)		(0.67)		(1.28)		(1.34)		(0.49)
Net earnings (loss)	$           (4.52)		$        (0.42)		$                      (2.09)		$       (6.95)		$       1.60
Diluted Earnings (Loss) Per Common Share
Earnings (loss) from continuing operations	$           (4.48)		$          0.25		$                      (0.81)		$       (5.61)		$       2.05
Discontinued operations	(0.04)		(0.67)		(1.28)		(1.34)		(0.48)
Net earnings (loss)	$           (4.52)		$        (0.42)		$                      (2.09)		$       (6.95)		$       1.57
Average Shares of Common Stock Outstanding - Diluted	528.0		347.4		528.0		505.7		354.2

 

The accompanying notes are an integral part of this Consolidated Statement of Operations.
(a)	Includes a pre-tax benefit of $5 million ($4 million after taxes), pre-tax charges of $7 million ($5 million after taxes) and $2 million ($1 million after taxes) for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, for environmental remediation adjustments, a pre-tax benefit of $41 million ($30 million after taxes) and a pre-tax charge of $29 million ($22 million after taxes) for the three months ended September 30, 2025 and the twelve months ended December 31, 2025, respectively, for the inventory step-up recognized in purchase accounting related to the DS Smith combination.
(b)	Includes pre-tax charges of $10 million ($8 million after taxes), $15 million ($12 million after taxes) and $158 million ($130 million after taxes) for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, for transaction costs and integration costs associated with the DS Smith combination.
(c)	Includes pre-tax charges of $86 million, $675 million and $958 million for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, for accelerated depreciation associated with our site closures.

(d)	Includes a pre-tax charge of $50 million (before and after taxes) for the twelve months ended December 31, 2025 for a UK stamp tax associated with the DS Smith combination.
(e)	Includes pre-tax charges of $162 million ($128 million after taxes), $342 million ($257 million after taxes) and $626 million ($482 million after taxes) for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, for severance and other costs related to our mill closures and 80/20 strategic actions.
(f)	Includes a charge of $2.5 billion (before and after taxes) for the three months and twelve months ended December 31, 2025 for the non-cash impairment of goodwill in our PS EMEA business, pre-tax charges of $5 million ($4 million after taxes), $16 million ($12 million after taxes) and $21 million ($16 million after taxes) for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, related to the sale of our kraft paper bag business and a pre-tax charge of $5 million ($4 million after taxes) and pre-tax gain of $46 million ($36 million after taxes) for the three months and twelve months ended December 31, 2025 related to the sale of five European box plants in Mortagne, Saint-Amand, and Cabourg (France), Ovar (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection with the DS Smith combination.

(g)	Includes pre-tax charges of $2 million ($1 million after taxes), $15 million ($11 million after taxes) and $17 million ($12 million after taxes) for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, related to the sale of aircraft assets, a pre-tax gain of $27 million ($20 million after taxes) for the three months and twelve months ended December 31, 2025 for asset sales related to our permanently closed Courtland, Alabama paper mill, a pre-tax gain of $62 million ($47 million after taxes) for the twelve months ended December 31, 2025 for asset sales related to our permanently closed Orange, Texas containerboard mill and a pre-tax charge of $7 million (before and after taxes) and $2 million ($3 million after taxes) for the three months and twelve months ended December 31, 2025, respectively, related to miscellaneous land sales and other items.
(h)	Includes a deferred tax benefit of $271 million for the three months and twelve months ended December 31, 2025 related to the EMEA goodwill impairment and a benefit of $62 million for the three months ended September 30, 2025 and the twelve months ended December 31, 2025 related to capital losses associated with the announced agreement to sell our Global Cellulose Fibers business. These deferred tax benefits are expected to offset cash taxes in 2027.
(i)	Includes the operating earnings of the Global Cellulose Fibers business. Also includes pre-tax charges of $62 million ($47 million after taxes), 1.0 billion ($758 million after taxes) and $1.1 billion ($805 million after taxes) for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, for the impairment of the Global Cellulose Fibers business which has been classified as held for sale, pre-tax charges of $10 million ($8 million after taxes), $15 million ($12 million after taxes) and $52 million ($40 million after taxes) for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, for costs associated with the sale of our Global Cellulose Fibers business and a pre-tax benefit of $3 million ($2 million after taxes), $5 million ($4 million after taxes) and $8 million ($6 million after taxes) for the three months ended December 31, 2025 and September 30, 2025 and the twelve months ended December 31, 2025, respectively, for adjustments related to previously announced Global Cellulose Fibers mill closures.

(j)	Includes pre-tax charges of $35 million ($26 million after taxes) and $60 million ($45 million after taxes) for the three months and the twelve months ended December 31, 2024, respectively, for environmental remediation adjustments, a pre-tax charge of $13 million ($9 million after taxes) for the twelve months ended December 31, 2024 for third-party damages related to a warehouse fire in Morocco, pre-tax income of $6 million (before and after taxes) for the twelve months ended December 31, 2024 related to the settlement of an Italian antitrust fine and a pre-tax charge of $10 million ($7 million after taxes) for the twelve months ended December 31, 2024 for a litigation reserve.
(k)	Includes pre-tax charges of $38 million (before and after taxes) and $86 million ($85 million after taxes) for the three months and twelve months ended December 31, 2024, respectively, for costs associated with our announced agreement of an all-share combination with DS Smith Plc and pre-tax charges of $37 million ($28 million after taxes) for the twelve months ended December 31, 2024 for strategic advisory fees.
(l)	Includes a pre-tax charge of $1 million (before and after taxes) for the twelve months ended December 31, 2024 for closure costs associated with our mill strategic actions.
(m)	Includes a pre-tax charge of $45 million ($34 million after taxes) and $103 million ($77 million after taxes) for the three months and twelve months ended December 31, 2024, respectively, for severance and other costs related to our mill closures and 80/20 strategic actions.
(n)	Includes a pre-tax gain of $54 million ($41 million after taxes) for the three months and twelve months ended December 31, 2024 related to the sale of a building at our Orange, Texas containerboard mill and a pre-tax gain of $5 million ($4 million after taxes) for the three months and twelve months ended December 31, 2024 related to miscellaneous land sales.
(o)	Includes pre-tax income of $10 million ($7 million after taxes) for the twelve months ended December 31, 2024 for interest income associated with the settlement of tax audits.
(p)	Includes a tax benefit of $416 million for the twelve months ended December 31, 2024 related to internal legal entity restructuring.
(q)	Includes the operating earnings of the Global Cellulose Fibers business. Also includes pre-tax charges of $117 million ($88 million after taxes) and $118 million ($89 million after taxes) for the three months and the twelve months ended December 31, 2024, respectively, for severance and other costs related to our mill strategic actions and 80/20 strategic approach, pre-tax charges of $5 million ($4 million after taxes) for the three months and twelve months ended December 31, 2024 for costs associated with our announced decision to explore strategic options for our Global Cellulose Fibers business and a pre-tax charge of $1 million (before and after taxes) and $5 million ($4 million after taxes) for the three months and twelve months ended December 31, 2024, respectively, for other items.

 

INTERNATIONAL PAPER COMPANY
Reconciliation of Earnings (Loss) from Continuing Operations to Adjusted Operating Earnings (Loss)
Preliminary and Unaudited
(In millions, except per share amounts)
		Three Months Ended December 31,				Three Months Ended September 30		Twelve Months Ended December 31,
		2025		2024		2025		2025		2024
Earnings (Loss) from Continuing Operations		$          (2,363)		$               88		$                       (426)		$         (2,838)		$               725
Add back: Non-operating pension expense (income)		(6)		(8)		(4)		(12)		(42)
Add back: Net special items expense (income)		2,626		59		354		3,237		235
Income taxes - Non-operating pension and special items		(300)		(4)		(148)		(487)		(447)
Adjusted Operating Earnings (Loss)		$              (43)		$              135		$                       (224)		$            (100)		$               471
		Three Months Ended December 31,				Three Months Ended September 30		Twelve Months Ended December 31,
		2025		2024		2025		2025		2024
Diluted Earnings (Loss) per Common Share from Continuing Operations		$            (4.48)		$             0.25		$                      (0.81)		$           (5.61)		$              2.05
Add back: Non-operating pension expense (income)		(0.01)		(0.02)		(0.01)		(0.02)		(0.12)
Add back: Net special items expense (income)		4.98		0.17		0.67		6.40		0.66
Income taxes per share - Non-operating pension and special items		(0.57)		(0.02)		(0.28)		(0.97)		(1.26)
Adjusted Operating Earnings (Loss) per Share		$            (0.08)		$             0.38		$                      (0.43)		$           (0.20)		$              1.33

Notes:
	Adjusted operating earnings (loss) and adjusted operating earnings (loss) per share are non-GAAP financial measures defined as earnings (loss) from continuing operations (a GAAP measure) excluding net special items and non-operating pension expense (income). Earnings (loss) from continuing operations and diluted earnings (loss) per common share from continuing operations are the most directly comparable GAAP measures. The Company calculates adjusted operating earnings (loss) (non-GAAP) by excluding the after-tax effect of non-operating pension expense (income) and net special items, as described in greater detail above, from the earnings (loss) from continuing operations reported under U.S. GAAP. Adjusted operating earnings (loss) per share is calculated by dividing adjusted operating earnings (loss) by the diluted average shares of common stock outstanding. Management uses these non-GAAP financial measures to focus on on-going operations, and believes that such non-GAAP financial measures are useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. The Company believes that these non-GAAP financial measures, viewed alongside the most directly comparable GAAP measures, provides for a more complete analysis of the Company's results of operations.
	Non-operating pension expense (income) represents amortization of prior service cost, amortization of actuarial gains/losses, expected return on assets and interest cost. The Company excludes these amounts from adjusted operating earnings (loss) as the Company does not believe these items reflect ongoing operations. These particular pension cost elements are not directly attributable to current employee service. The Company includes service cost in our non-GAAP financial measure as it is directly attributable to employee service, and the corresponding employees' compensation elements, in connection with ongoing operations.
	Since diluted earnings per share are computed independently for each period, twelve-month per share amounts may not equal the sum of the respective quarters.

 

INTERNATIONAL PAPER COMPANY Calculation of Adjusted EBITDA from Continuing Operations Preliminary and Unaudited (In millions)
		Three Months Ended December 31,				Three Months Ended September 30		Twelve Months Ended December 31,
		2025		2024		2025		2025		2024
Earnings (Loss) From Continuing Operations Before Income  Taxes and Equity Earnings (Loss)		$            (2,654)		$                 113		$                          (675)		$            (3,368)		$                 369
Interest expense, net		95		58		85		372		214
Special items		2,626		59		354		3,237		245
Non-operating pension expense (income)		(6)		(8)		(4)		(12)		(42)
Depreciation and amortization		697		221		1,099		2,747		850
Adjusted EBITDA from Continuing Operations		$                 758		$                 443		$                            859		$              2,976		$              1,636

Notes:

Adjusted EBITDA from continuing operations is a non-GAAP financial measure defined as earnings (loss) from continuing operations before income taxes and equity earnings (loss), interest expense, net, net special items, non-operating pension expense (income) and depreciation and amortization. Earnings (loss) from continuing operations before income taxes and equity earnings (loss) is the most directly comparable GAAP measure. Management uses this measure to focus on on-going operations and believes this measure is useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations.

 

INTERNATIONAL PAPER COMPANY
Calculation of Adjusted EBITDA Outlook from Continuing Operations
Preliminary and Unaudited
(In millions)
		Three Months Ended  March 31, 2026		Twelve Months Ended  December 31, 2026
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity  Earnings (Loss)		$169 - $189		$1,202 - $1,402
Interest expense, net		93		375
Special items		—		—
Non-operating pension expense (income)		(19)		(77)
Depreciation and amortization		497		2,000
Adjusted EBITDA from Continuing Operations		$740 - $760		$3,500 - $3,700

Notes:

Adjusted EBITDA from continuing operations is a non-GAAP financial measure defined as earnings (loss) from continuing operations before income taxes and equity earnings (loss), interest expense, net, net special items, non-operating pension expense (income) and depreciation and amortization. Earnings (loss) from continuing operations before income taxes and equity earnings (loss) is the most directly comparable GAAP measure. Management uses this measure to focus on on-going operations and believes this measure is useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. Special items excluded from the target setting are difficult to predict and quantify and may reflect the effect of future events.

 

INTERNATIONAL PAPER COMPANY
Condensed Consolidated Balance Sheet
Preliminary and Unaudited
(In millions)
		December 31, 2025		December 31, 2024
Assets
Current Assets
Cash and Temporary Investments		$                       1,145		$                       1,062
Accounts and Notes Receivable, Net		3,791		2,402
Contract Assets		635		362
Inventories		2,012		1,486
Assets Held for Sale		1,800		1,016
Other		723		96
Total Current Assets		10,106		6,424
Plants, Properties and Equipment, Net		14,443		7,916
Goodwill		5,326		3,038
Intangibles, Net		4,043		72
Long-Term Financial Assets of Variable Interest Entities		2,349		2,331
Right of Use Assets		697		402
Overfunded Pension Plan Assets		486		93
Long-Term Assets Held For Sale		—		1,876
Deferred Charges and Other Assets		514		648
Total Assets		$                     37,964		$                     22,800
Liabilities and Equity
Current Liabilities
Notes Payable and Current Maturities of Long-Term Debt		$                          992		$                          191
Liabilities Held for Sale		502		344
Accounts Payable and Other Current Liabilities		6,405		3,723
Total Current Liabilities		7,899		4,258
Long-Term Debt		8,839		5,362
Deferred Income Taxes		1,898		1,028
Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities		2,127		2,120
Long-Term Lease Obligations		486		269
Underfunded Pension Benefit Obligation		316		232
Postretirement and Postemployment Benefit Obligation		133		133
Long-Term Liabilities Held For Sale		—		125
Other Liabilities		1,439		1,100
Equity
Common Stock		627		449
Paid-in Capital		14,414		4,732
Retained Earnings		4,885		9,393
Accumulated Other Comprehensive Loss		(528)		(1,722)
		19,398		12,852
Less: Common Stock Held in Treasury, at Cost		4,571		4,679
Total Equity		14,827		8,173
Total Liabilities and Equity		$                     37,964		$                     22,800

 

INTERNATIONAL PAPER COMPANY Condensed Consolidated Statement of Cash Flows Preliminary and Unaudited (In millions)
		Twelve Months Ended December 31,
		2025		2024
Operating Activities
Net earnings (loss)		$                        (3,516)		$                             557
Depreciation and amortization		2,882		1,305
Deferred income tax expense (benefit), net		(855)		(473)
Restructuring charges, net		618		221
Net (gains) losses on sales and impairments of businesses		3,512		—
Net (gains) losses on sales and impairments of assets		(70)		(58)
Periodic pension (income) expense, net		39		1
Other, net		(78)		135
Changes in operating assets and liabilities
Accounts and notes receivable		91		59
Contract assets		(21)		36
Inventories		158		12
Accounts payable and other liabilities		(1,027)		(140)
Interest payable		22		16
Other		(57)		7
Cash Provided By (Used For) Operating Activities		1,698		1,678
Investment Activities
Capital expenditures		(1,857)		(921)
Acquisitions, net of cash acquired		414		—
Proceeds from divestitures, net of transaction costs		141		—
Proceeds from sale of fixed assets		218		91
Proceeds from insurance recoveries		28		25
Other		32		(3)
Cash Provided By (Used For) Investment Activities		(1,024)		(808)
Financing Activities
Issuance of debt		409		102
Reduction of debt		(255)		(141)
Change in book overdrafts		181		(69)
Repurchases of common stock and payments of restricted stock tax withholding		(65)		(23)
Dividends paid		(977)		(643)
Other		(1)		(1)
Cash Provided By (Used for) Financing Activities		(708)		(775)
Effect of Exchange Rate Changes on Cash and Temporary Investments		25		(38)
Change in Cash and Temporary Investments		(9)		57
Cash and Temporary Investments
Beginning of the period		1,170		1,113
End of the period		$                          1,161		$                          1,170

 

INTERNATIONAL PAPER COMPANY Reconciliation of Cash Provided by Operations to Free Cash Flow Preliminary and Unaudited (In millions)
	Three Months Ended December 31,				Twelve Months Ended December 31,
	2025		2024		2025		2024
Cash Provided By (Used For) Operating Activities	$                      905		$                      397		$                1,698		$                1,678
Adjustments:
Capital expenditures	(650)		(260)		(1,857)		(921)
Free Cash Flow	$                      255		$                      137		$                 (159)		$                  757

Free cash flow is a non-GAAP financial measure which equals cash provided by (used for) operating activities less capital expenditures. The most directly comparable GAAP measure is cash provided by operations. Management utilizes this measure in connection with managing our business and believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

The preliminary non-GAAP financial measures presented in this release have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of preliminary non-GAAP financial measures in this release may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as International Paper.

Management believes non-GAAP financial measures, when used in conjunction with information presented in accordance with GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company's financial results.  Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. Investors are cautioned to not place undue reliance on any preliminary non-GAAP financial measures used in this release.

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SOURCE International Paper

FAQ

What is International Paper's timeline to form two independent public companies (IP)?

The separation is expected to complete in 12–15 months. According to the company, the split will create two regional packaging leaders with separate management, capital allocation, and tailored strategies, subject to customary conditions and further execution steps.

How does the $2.47B goodwill impairment affect International Paper's 2025 results (IP)?

The $2.47B pre-tax goodwill impairment drove a large portion of the 2025 loss. According to the company, the charge relates to the PS EMEA reporting unit after measuring fair value versus carrying value during strategic review.

What adjusted EBITDA targets did International Paper set for 2026 (IP)?

IP targets adjusted EBITDA of $3.5–3.7B for full-year 2026 and $740–760M for Q1. According to the company, these targets assume above-industry growth and exclude assumed future price realization and recent weather impacts.

What were International Paper's key 2025 cash and earnings metrics (IP)?

Full-year 2025 net sales were $23.63B with adjusted EBITDA of $2.98B and cash provided by operations of $1.70B. According to the company, free cash flow (non-GAAP) was $(0.16)B for the year.