International Paper Company · NYSE:IP
International Paper — Q1 2026 Earnings Presentation
32 slides from International Paper's earnings presentation, Apr 30, 2026
Slide 1: First Quarter 2026 Earnings
First Quarter 2026 Earnings April 30, 2026
Slide 2: Forward-looking Statements
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 forwa
Slide 3: 1Q26 Performance Overview
1Q26 Performance Overview Packaging Solutions North America What's Working Well Continued Focus ▪ Above-market growth for the third consecutive quarter, ▪ Mill reliability – Significant improvements with outpacing the market by ~3%, driven by strategic wins meaningful upside potential ▪ Box and Mill
Slide 4: Continuing to Outpace the Market in North America
Continuing to Outpace the Market in North America YoY Volume Growth North America Box Volume Trend (Per Day Basis) 4% Demand 2% • PS NA 1Q volume up 2.5% YoY 0% • Industry 1Q volume down (0.3)% YoY (2)% • PS NA 2Q volume likely up ~3.0% YoY (4)% • PS NA FY26 to outpace industry by ~2% (6)% IP YoY IP
Slide 5: Operational Performance Improvements
Operational Performance Improvements Across the North America Mill & Box System Mill Efficiency Meaningful Improvement Driven by Capacity Utilization Our Capital Investments and (excl. planned outages) Lighthouse Rollouts • Targeted capital investment to drive productivity, reliability and capabilit
Slide 6: Strategic Investments to Win with Our Customers
Strategic Investments to Win with Our Customers End of 2025 through 2026 United States NORPAC Mill Acquisition Riverdale Lightweight Conversion Major Mill Investment Projects Waterloo, IA Greenfield Plant Jackson, MS Greenfield Plant 70+ Major Box Plant Investments Corrugators, Converting and Specia
Slide 7: Bolt-On Acquisition of NORPAC Improves Strategic Positioning
Bolt-On Acquisition of NORPAC Improves Strategic Positioning Expanding Footprint on the West Coast - Acquisition of the Longview, WA mill strengthens our West Coast presence and will improve overall system cost position and capability. Operational & Freight Synergies - Prime location and high-qualit
Slide 8: Ongoing Footprint Optimization
Ongoing Footprint Optimization Actions in EMEA Net Headcount Footprint Reduction Reduction Packaging 28 ~2,150 Facilities $200MM+ 2 of run rate footprint and Paper 1 Mill | ~350 1 Recycling Center headcount cost savings announced to date Corporate Functions 1 ~350 Total PS EMEA 31 2,850+ Material Co
Slide 9: Macro Economic Expected Near-Term Impacts
Macro Economic Expected Near-Term Impacts NORTH AMERICA EMEA Stable demand environment with uncertain Stable demand environment with uncertain consumer sentiment DEMAND consumer sentiment Contained cost exposure due to IP ENERGY Moderate impact due to effective producing 70% of own energy at mills (
Slide 10: Enterprise: 1Q26 Results
Enterprise: 1Q26 Results1 Sales ($MM) Adj. EBIT2,3 ($MM) $6,006 $5,971 $169 $188 $5,264 $61 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 Adj. EBITDA2 ($MM) Adj. EBITDA Margin2 $758 13.1% 12.6% $689 $677 11.3% 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 Adj. Operating EPS2,3 Free Cash Flow2 ($MM) $0.17 $0.15 $255 4 $94 $(0.08) $
Slide 11: PS NA: 1Q26 Results
PS NA: 1Q26 Results 4Q25 to 1Q26 ($MM) COMMENTARY 4Q25 Adj. EBITDA1 560 Price & Mix 24 Mix and export price Volume (52) Seasonality across all channels and less export Footprint cost out benefits; Improved mill and box plant performance Ops & Costs (29) Inflation; Winter weather impact $(18)MM* Main
Slide 12: PS NA: 2Q26 Outlook
PS NA: 2Q26 Outlook 1Q26 to 2Q26 ($MM) Outlook COMMENTARY 1Q26 Adj. EBITDA1 477 Favorable mix Price & Mix 20 – 25 Published price moves in February Volume 10 – 20 Seasonality; One more shipping day Non-repeat of winter storm impact Ops & Costs (10) – Flat Riverdale conversion*; Reliability work duri
Slide 13: PS NA: What Has Changed
PS NA: What Has Changed 2026E Adj. EBITDA1 Updated Outlook ($B) PS NA Adj. EBITDA1 ($B) Earnings Impacts (Approximate $MM) ~$(150)MM +$175 Price - February, March and April index publications $(200) Macro Environment - Elevated diesel and oil; OCC and raw material inflation; consumer spending $2.50
Slide 14: PS NA: 2H26 Step-up in Earnings
PS NA: 2H26 Step-up in Earnings PS NA Adj. EBITDA1 ($MM) ’26 Outlook $2,350 – 2,500MM 1H26 to 2H26 Step-up ~+$650MM Growth & Timing Impacts (Approximate $MM) +$300 Price | Volume | Mix | Seasonality 80/20 initiatives (incl. footprint, productivity improvements, reduction +$150 of on-going mill costs
Slide 15: PS EMEA: 1Q26 Results
PS EMEA: 1Q26 Results 4Q25 to 1Q26 ($MM) COMMENTARY 4Q25 Adj. EBITDA1 228 Price & Mix 12 Margin expansion in packaging Volume 3 Lower than expected due to January softness and weaker produce crop Ops & Costs (39) Change in segment allocation and incentive compensation Maintenance Outages 7 Timing of
Slide 16: PS EMEA: 2Q26 Outlook
PS EMEA: 2Q26 Outlook 1Q26 to 2Q26 ($MM) Outlook COMMENTARY 1Q26 Adj. EBITDA1 208 Price & Mix (5) – Flat Price compression Volume 15 – 20 Recovery from January softness; ramp of new volume wins Ops & Costs (45) – (40) Higher distribution costs; less energy subsidies Maintenance Outages (5) Timing of
Slide 17: PS EMEA: What Has Changed
PS EMEA: What Has Changed 2026E Adj. EBITDA1 Updated Outlook ($B) PS EMEA Adj. EBITDA1 ($B) Earnings Impacts (Approximate $MM) ~$(100)MM $(100) Commercial – Consumer spending $1.0 - $1.1 $0.9 - $1.0 $(70) Energy & Freight – Higher oil prices impacting distribution costs +$55 OCC – Availability of su
Slide 18: PS EMEA: 2H26 Step-up in Earnings
PS EMEA: 2H26 Step-up in Earnings PS EMEA Adj. EBITDA1 ($MM) ’26 Outlook $900 – 1,000MM 1H26 to 2H26 Step-up ~+$200MM Growth & Timing Impacts (Approximate $MM) Margin recovery - Flowthrough of prior paper price increase into +$110 box contracts, supported by incremental commercial growth from new cu
Slide 19: Separation Update
Separation Update Significant Progress on Separation Planning Structure ▪ IP intends to retain approximately 20% ownership stake in EMEA Packaging Business ▪ EMEA Packaging Business expected to be listed on LSE and NYSE ▪ Expect both companies to have investment grade ratings Process & Timing ▪ On t
Slide 20: IP's Focus
IP’s Focus Operational Excellence and Value Creation 80/20 approach delivering efficiency via sharpened focus on distinct value drivers and complexity reduction Separation will align capital and resource allocation to unique strategy of each business Optimal path to achieve best-in-class performance
Slide 21: Investor Relations
Investor Relations Mandi Gilliland +1-901-419-4595 mandi.gilliland@ipaper.com Michele Vargas +1-901-419-7287 michele.vargas@ipaper.com Media newsroom@ipaper.com 21
Slide 22: Appendix
Appendix
Slide 23: PS NA: 1Q26 Results
PS NA: 1Q26 Results1 Sales ($MM) Adj. EBIT2 ($MM) 4 $3,702 $3,715 $3,626 $319 $248 $142 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 Adj. EBITDA2,3 ($MM) Adj. EBITDA2,3 Margin $554 $560 $477 15.7% 15.7% 13.7% 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 (1) 1Q‘25 includes DSS from February onward. (2) See the Appendix for the no
Slide 24: PS EMEA: 1Q26 Results
PS EMEA: 1Q26 Results1 Sales ($MM) Adj. EBIT2 ($MM) $2,300 $2,323 $1,550 $46 $(51) $(223) 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 Adj. EBITDA2 ($MM) Adj. EBITDA2 Margin 9.9% 9.9% $228 $208 9.0% $153 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 (1) 1Q‘25 includes DSS from February onward. (2) See the Appendix for the non-U.S
Slide 25: 1Q25 to 1Q26 Adj. EBITDA Bridge
1Q25 to 1Q26 Adj. EBITDA1 Bridge Packaging Solutions Packaging Solutions ($MM) North America EMEA 1Q25 Adj. EBITDA1 554 153 Price & Mix 128 6 Volume (154) 6 Ops & Costs (68) (49) Maintenance Outages 23 3 Inputs (3) 42 DS Smith Legacy Adj. EBITDA1,2 (3) 47 1Q26 Adj. EBITDA1 477 208 230 259 Depreciati
Slide 26: Select Financial Metrics
Select Financial Metrics1 ($MM) 2024 2025 2026F Maintenance Outage Expense $371 $390 $442 Targeting Capital Expenditures $921 $1,857 $1,950 – $2,050 Depreciation & Amortization2 $850 $2,747 $1,900 Net Interest Expense $224 $372 $380 Corporate Expense $170 $109 $60 Effective Tax Rate 15% 32% 22-25%3
Slide 27: Maintenance Outages Expenses | 2026 Forecast
Maintenance Outages Expenses | 2026 Forecast ($MM) 1Q26A 2Q26F 3Q26F 4Q26F 2026F Packaging Solutions $70 $206 $114 $26 $416 North America Packaging Solutions $1 $8 $9 $8 $26 EMEA Total Impact $71 $214 $123 $34 $442 27
Slide 28: 4Q25 to 1Q26 Adjusted Operating EPS
4Q25 to 1Q26 Adjusted Operating EPS1 0.50 0.15 (0.08) 0.08 (0.12) (0.17) 0.06 (0.11) (0.01) 4Q25 Price/Mix Volume Operations Maintenance Input Costs Corporate Depreciation & 1Q26 & Costs Outages & Other Items Amortization (1) See the Appendix for the non-U.S. GAAP financial measures. 28
Slide 29: Sales Volume by Product
Sales Volume by Product1 | Preliminary and Unaudited Three Months Ended Three Months Ended March 31, December 31, 2026 2025 2025 PS NA (In thousands of short tons) Corrugated Packaging2 2,220 2,152 2,233 3 Containerboard 591 791 649 Recycling 448 508 514 Saturated Kraft 7 40 5 Gypsum / Release Kraft
Slide 30: 2026 Operating Earnings
2026 Operating Earnings Non-controlling Equity Diluted Pre-Tax Tax Net Income Interest Earnings Average Shares Diluted EPS1 $MM $MM $MM $MM $MM MM Earnings (Loss) from Continuing Operations 1Q26 $93 $(17) - - $76 532 $0.14 Net Special Items1 1Q26 $26 $(7) - - $19 532 $0.04 Non-Operating Pension Expe
Slide 31: Global Input Costs 1Q26 vs 4Q25
Global Input Costs 1Q26 vs 4Q25 | $(46)MM Unfavorable, $(0.11) per share By Business By Input Type 4- 7 4 (3) (54) (43) (7) Packaging Packaging Solutions Energy Fiber Chemicals Freight OCC Solutions EMEA North America Energy Fiber Chemicals Freight OCC North America EMEA 31
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management has elected to present forward-looking guidance based on Adjusted EBITDA, rather than Adjusted EBIT. This change reflects investor feedback and our view that Adjusted EBITDA provides a more meaningful measure of operating performance and cash flow generation, p
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