International Paper Company · NYSE:IP
International Paper — Q4 2025 Earnings Presentation
44 slides from International Paper's earnings presentation, Jan 29, 2026
Slide 1: IP to Create Two Independent Public Companies; Fourth Quarter and Full Year 2025 Earnings
IP to Create Two Independent Public Companies; Fourth Quarter and Full Year 2025 Earnings January 29, 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: Today’s Agenda
Today’s Agenda International Paper to Create Two Independent Public Companies Andy Silvernail | Chairman & CEO Lance Loeffler | SVP & CFO Tim Nicholls | EVP & President of DS Smith Full Year and Fourth Quarter 2025 Earnings Andy Silvernail | Chairman & CEO Lance Loeffler | SVP & CFO Q&A Session 3
Slide 4: Creating Two Best-in-Class Companies to Accelerate Our Ambitions
Creating Two Best-in-Class Companies to Accelerate Our Ambitions EMEA PACKAGING BUSINESS INTERNATIONAL Elevating European PAPER leadership as provider of Strengthening position as innovative, sustainable leading sustainable packaging solutions packaging company in $8.5B 2025 net sales2 North America
Slide 5: Executing Our Strategy to Drive Sustainable Value Creation
Executing Our Strategy to Drive Sustainable Value Creation WHERE TO PLAY RIGHT GEOGRAPHIES + RIGHT CUSTOMERS + RIGHT PRODUCTS HOW TO WIN 80/20 ADVANTAGED COST POSITION (ACP) ACP Expand margins while bolstering ability SIMPLIFY to win with customers; funds investment SUPERIOR CUSTOMER EXPERIENCE (SCX
Slide 6: Regional Businesses Strengthened by DS Smith Acquisition
Regional Businesses Strengthened by DS Smith Acquisition ADVANTAGED COST POSITION (ACP) ACP ~$710MM Full run-rate cost-out actioned through 2025, including synergy benefits SCX SUPERIOR CUSTOMER EXPERIENCE (SCX) #1 Leading customer advocacy amongst North American direct competitors1 #1 Leading custo
Slide 7: Compelling Strategic Benefits
Compelling Strategic Benefits 1 2 3 IP + DS Smith combination Actions taken to realize value Separation enables both established winning positions of combination have been businesses to accelerate with critical in-region scale, implemented via rapid progress toward maximizing and enabled cross-busin
Slide 8: Distinct Environments in North America and EMEA
Distinct Environments in North America and EMEA NORTH AMERICA EMEA Resilient and Integrated Dynamic and Localized ~$50B TAM1 ~$40B 1.0% to 1.5%2 LONG-TERM DEMAND GROWTH 1.5% to 2.0%3 ~80% TOP 5 SUPPLY POSITION ~50% More national COMPETITIVE DYNAMICS More localized High SUPPLY INTEGRATION Varies by c
Slide 9: Accelerating 80/20 and Strategy Execution by Creating Two Scaled, Regional Companies
Accelerating 80/20 and Strategy Execution by Creating Two Scaled, Regional Companies WHAT WILL CHANGE WHAT REMAINS THE SAME Sharper regional focus: North America and EMEA teams 80/20 focus: Continuing to apply fully aligned to distinct customer needs and priorities 80/20 approach, executing strategy
Slide 10: International Paper’s North American Business At-a-Glance
International Paper’s North American Business At-a-Glance Leading Sustainable Packaging Solutions Provider in North America $15.2B $2.3B 15.7% ~220+ Strengthened RSP by Combining Legacy IP and NET SALES1 ADJ. EBITDA1,2 ADJ. EBITDA MARGIN1,2 FACILITIES Legacy DS Smith Assets in North America FOCUSED
Slide 11: IP North America Priorities
IP North America Priorities STRATEGIC PRIORITIES AND 80/20 PLAN FINANCIAL PRIORITIES Accelerate organic growth Advantaged Superior Customer High Relative Cost Position Experience Supply Position Strengthen margins and cash flow to invest in: ▪ Optimize footprint and ▪ Deliver differentiated ▪ Develo
Slide 12: EMEA Packaging Business At-a-Glance
EMEA Packaging Business At-a-Glance Leading Provider of Innovative, Sustainable Packaging Solutions in EMEA $8.5B $0.8B 9.3% ~250+ Strengthened RSP by Combining NET SALES1 ADJ. EBITDA1,2 ADJ. EBITDA MARGIN1,2 FACILITIES Legacy IP and Legacy DS Smith Assets in EMEA STRONG CUSTOMER RELATIONSHIPS, HIGH
Slide 13: EMEA Packaging Business Priorities
EMEA Packaging Business Priorities STRATEGIC PRIORITIES AND 80/20 PLAN FINANCIAL PRIORITIES Deliver strong organic Advantaged Superior Customer High Relative growth and cost-out Cost Position Experience Supply Position Expand margins and drive ▪ Complete legacy ▪ Double down on ▪ Continue to strengt
Slide 14: Transaction Summary
Transaction Summary ▪ Expected to be structured as spin-off of combined EMEA Packaging Business to shareholders1 STRUCTURE ▪ IP intends to retain meaningful ownership stake in EMEA Packaging Business ▪ EMEA Packaging Business expected to be listed on LSE and NYSE PROCESS & ▪ Completion expected in 1
Slide 15: 2025 Performance Highlights
2025 Performance Highlights PACKAGING SOLUTIONS PACKAGING SOLUTIONS NORTH AMERICA (PS NA) EMEA (PS EMEA) ▪ PS NA delivered step-change in profitability with ▪ 80/20 roadmap has shifted from planning to delivery Adj. EBITDA1 +37% YoY showing strategy is working ▪ Decisive actions underway: 27 site cl
Slide 16: Enterprise: FY25 Results
Enterprise: FY25 Results1 Sales ($MM) Adj. EBIT2,3 ($MM) $23,634 $787 $786 $16,033 $15,835 $229 2023 2024 2025 2023 2024 2025 Adj. EBITDA2 ($MM) Adj. EBITDA Margin2 12.1% 12.6% $2,976 10.3% $1,933 $1,636 2023 2024 2025 2023 2024 2025 Adj. Operating EPS2,3 Free Cash Flow3 ($MM) $1.33 $692 $757 $1.18
Slide 17: PS NA FY25: +37% Adj. EBITDA
PS NA FY25: +37% Adj. EBITDA1, 340 bps of Adj. EBITDA1 Expansion 2025 EARNINGS DRIVERS PS NA Full Year Adj. EBITDA1 ($B) Commercial Commercial momentum with additional strategic $2.28 wins and above-market growth in 2H +37% Strong price realization enabled by service, quality, and customer advocacy
Slide 18: PS NA: 4Q25 Results
PS NA: 4Q25 Results 3Q25 to 4Q25 ($MM) COMMENTARY 3Q25 Adj. EBITDA1 655 Price & Mix 6 Favorable box mix Strategic wins Volume (87) Exited non-strategic business $(60)MM | 3 fewer shipping days Cost-out impact of footprint optimization +$60MM Ops & Costs 3 Transitional distribution costs | Timing/sea
Slide 19: PS NA: 2026E Adj. EBITDA
PS NA: 2026E Adj. EBITDA1 ($B) 2026E Assumptions 2026 EARNINGS DRIVERS NA Ind Growth 0 to +1% | PS NA Above-Ind Growth +2% | Excludes Impact of Future Pricing Realization Commercial PS NA Adj. EBITDA1 ($B) Strategic wins and ’25 pricing carryover Exiting non-strategic export business +9-13% $0.5 Cos
Slide 20: Transformation Costs in 1H26 | Confidence in 2H26 Step Change
Transformation Costs in 1H26 | Confidence in 2H26 Step Change PS NA Adj. EBITDA1 ($MM) 1H26 YoY Headwinds: $(165)MM 1 Normalized for 1x items ~+$100-120MM ’25 Actual ’26 Outlook Timing Impacts ($MM) $2.3B $2.5-2.6B | ~+9-13% YoY ~$(85) Mill reliability investments, timing of planned maintenance outa
Slide 21: PS NA: 1Q26 Outlook
PS NA: 1Q26 Outlook 4Q25 to 1Q26 ($MM) Outlook COMMENTARY 4Q25 Adj. EBITDA1 560 Price & Mix 51 Favorable seasonal mix | Favorable export business Strategic wins | 1 more shipping day Volume (68) Seasonality | Commercial impact of mill closure Cost-out impact from footprint optimization +$20MM Ops &
Slide 22: PS EMEA: 4Q25 Results
PS EMEA: 4Q25 Results 3Q25 to 4Q25 ($MM) COMMENTARY 3Q25 Adj. EBITDA1 209 Price & Mix (5) Board price decline Volume (3) Soft but stable demand Cost out initiatives Ops & Costs 2 Integration costs Maintenance Outages 3 Timing of planned outages Inputs 22 Lower fiber and energy costs 4Q25 Adj. EBITDA
Slide 23: PS EMEA: 2026E Adj. EBITDA Outlook
PS EMEA: 2026E Adj. EBITDA1 Outlook ($B) 2026E Assumptions 2026 EARNINGS DRIVERS EMEA Ind Growth +1-1.5% | PS EMEA Above-Ind Growth +0.5-1% | Excludes Impact of Future Pricing Realization Commercial PS EMEA Adj. EBITDA1 ($B) EMEA market growth 1-1.5% Continued progress from 80/20 customer +25-38% st
Slide 24: Significant Proposals Made to Right Size PS EMEA’s Footprint Through 80/20
Significant Proposals Made to Right Size PS EMEA’s Footprint Through 80/20 ACTIONED PROPOSED Footprint Net Headcount Footprint Net Headcount Reduction¹ Reduction¹ Reduction¹ Reduction¹ 17 7 Packaging Plants 1,000+ Plants 700+ $160MM+ of run rate footprint and 2 headcount cost savings Paper 1 Mill |
Slide 25: PS EMEA: 1Q26 Outlook
PS EMEA: 1Q26 Outlook 4Q25 to 1Q26 ($MM) Outlook COMMENTARY 4Q25 Adj. EBITDA1 228 Price & Mix 19 Favorable mix and seasonality Volume 14 Known wins Ops & Costs (42) Timing of energy allowances | Impacts of accounting process and policy changes Maintenance Outages 7 Timing of planned outages Inputs (
Slide 26: Key Takeaways
Key Takeaways TAKING SWIFT, DECISIVE ACTION 2026 TARGETS TO CREATE LONG-TERM VALUE Combination created two regional powerhouses, primarily by capturing PS NA PS EMEA Total in-region benefits Net Sales $14.6-15.0B $9.5-9.9B $24.1-24.9B 80/20 approach delivering efficiency via sharpened focus on disti
Slide 27: Investor Relations Media
Investor Relations Mandi Gilliland +1-901-419-4595 mandi.gilliland@ipaper.com Michele Vargas +1-901-419-7287 michele.vargas@ipaper.com Media newsroom@ipaper.com 27
Slide 28: Appendix
Appendix
Slide 29: Enterprise: 4Q25 Results
Enterprise: 4Q25 Results1 Sales ($MM) Adj. EBIT2,3 ($MM) $6,222 $6,006 $3,922 $222 $61 4Q24 3Q25 4Q25 $(240) 4Q24 3Q25 4Q25 Adj. EBITDA2 ($MM) Adj. EBITDA Margin2 $859 $758 13.8% 12.6% 11.3% $443 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 Adj. Operating EPS2,3 Free Cash Flow2 ($MM) $255 $0.38 $137 $150 $(0.08) 4
Slide 30: PS NA: 4Q25 Results
PS NA: 4Q25 Results1 Sales ($MM) Adj. EBIT2 ($MM) $3,898 $3,715 $3,539 $228 $319 4Q24 3Q25 4Q25 $(166) 4Q24 3Q25 4Q25 Adj. EBITDA2,3 ($MM) Adj. EBITDA2,3 Margin $655 17.5% 15.7% $560 12.9% $434 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 (1) '24 does not include DSS results | ‘25 includes DSS from February onward
Slide 31: PS NA: FY25 Results
PS NA: FY25 Results1 Sales ($MM) Adj. EBIT2 ($MM) $15,175 $839 $891 $572 $14,293 $14,293 2023 2024 2025 2023 2024 2025 Adj. EBITDA2,3 ($MM) Adj. EBITDA2,3 Margin $2,284 15.7% 14.1% $1,912 12.3% $1,666 2023 2024 2025 2023 2024 2025 (1) ’23 & '24 do not include DSS results | ‘25 includes DSS from Febr
Slide 32: PS EMEA: 4Q25 Results
PS EMEA: 4Q25 Results1 Sales ($MM) Adj. EBIT2 ($MM) $2,310 $2,300 $357 $19 4Q24 3Q25 4Q25 $(58) $(223) 4Q24 3Q25 4Q25 Adj. EBITDA2 ($MM) Adj. EBITDA2 Margin $209 $228 9.8% 9.0% 9.9% $35 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 (1) ’23 & '24 do not include DSS results | ‘25 includes DSS from February onward. (2
Slide 33: PS EMEA: FY25 Results
PS EMEA: FY25 Results1 Sales ($MM) Adj. EBIT2 ($MM) $8,451 $1,398 $1,355 $80 $60 2023 2024 2025 $(236) 2023 2024 2025 Adj. EBITDA2 ($MM) Adj. EBITDA2 Margin $784 10.3% 9.2% 9.3% $144 $124 2023 2024 2025 2023 2024 2025 (1) ’23 & '24 do not include DSS results | ‘25 includes DSS from February onward.
Slide 34: 4Q24 to 4Q25 Adj. EBITDA Bridge
4Q24 to 4Q25 Adj. EBITDA1 Bridge Packaging Solutions Packaging Solutions ($MM) North America EMEA 4Q24 Adj. EBITDA1,2 434 35 Price & Mix 148 (14) Volume (99) (3) Ops & Costs 40 23 Maintenance Outages 7 – Inputs 24 11 DS Smith Legacy EBITDA1 6 176 4Q25 Adj. EBITDA1 560 228 Depreciation & Amortization
Slide 35: Select Financial Metrics
Select Financial Metrics1 ($MM) 2024 2025 2026F Maintenance Outage Expense $371 $390 $474 Targeting Capital Expenditures $921 $1,857 $1,950 – $2,050 Depreciation & Amortization2 $850 $2,747 $2,000 Net Interest Expense $224 $372 $375 Corporate Expense $170 $109 $60 Effective Tax Rate 15% 32% 25-27%3
Slide 36: Maintenance Outages Expenses | 2025
Maintenance Outages Expenses | 2025 ($MM) 1Q25A 2Q25A 3Q25A 4Q25A 2025A Packaging Solutions $93 $132 $46 $87 $358 North America Packaging Solutions $4 $9 $11 $8 $32 EMEA Total Impact $97 $141 $57 $95 $390 36
Slide 37: Maintenance Outages Expenses | 2026 Forecast
Maintenance Outages Expenses | 2026 Forecast ($MM) 1Q26F 2Q26F 3Q26F 4Q26F 2026F Packaging Solutions $95 $215 $114 $27 $451 North America Packaging Solutions $1 $8 $9 $5 $23 EMEA Total Impact $96 $223 $123 $32 $474 37
Slide 38: 4Q25 vs 3Q25 Adjusted Operating EPS
4Q25 vs 3Q25 Adjusted Operating EPS1 (0.43) (0.08) 0.52 0.00 (0.12) 0.01 (0.05) 0.06 (0.07) 3Q25 Price/Mix Volume Operations Maintenance Input Costs Corporate Depreciation & 4Q25 & Costs Outages & Other Items Amortization (1) See the Appendix for the non-U.S. GAAP financial measures. 38
Slide 39: FY24 vs FY25 Adjusted Operating EPS
FY24 vs FY25 Adjusted Operating EPS1,2 2.00 (0.30) (0.36) 0.02 0.12 (0.06) (4.54) 1.33 (0.20) 1.59 2024 Price/Mix Volume Operations Maintenance Input Costs Corporate Depreciation & Legacy 2025 & Costs Outages & Other Items Amortization DS Smith (1) See the Appendix for the non-U.S. GAAP financial me
Slide 40: North America Box Volume Trend
North America Box Volume Trend YoY Daily Basis MSF Strategic shift in customer focus Accelerating customer-centric approach 4% 2% +2% 0% -2% IP -4% 1 -6% FBA Actuals -8% -10% -12% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 (1) The Fibre Box Association (FBA) is the U.S. trade association that
Slide 41: Sales Volume by Product | Preliminary and Unaudited
Sales Volume by Product1 | Preliminary and Unaudited Three Months Ended Three Months Ended Twelve Months Ended December 31, September 30, December 31, 2025 2024 2025 2025 2024 PS NA (In thousands of short tons) Corrugated Packaging2 2,233 2,132 2,261 8,887 8,811 Containerboard 649 715 767 3,000 3,01
Slide 42: 2025 Operating Earnings
2025 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 1Q25 $(155) $32 - $(1) $(124) 438 $(0.28) 2Q25 $116 $(40) - $(1) $75 533 $0.14 3Q25 $(675) $250 - $(1) $(426)
Slide 43: Global Input Costs 4Q25 vs 3Q25 | $46MM Favorable, $0.06 per share
Global Input Costs 4Q25 vs 3Q25 | $46MM Favorable, $0.06 per share By Business By Input Type 24 8 22 14 18 - 7 4 - (5) Packaging Packaging Solutions Energy Fiber Chemicals Freight OCC Solutions EMEA North America Energy Wood Chemicals Freight OCC North America EMEA 43
Slide 44: 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
International Paper Company — Q4 2025 Earnings Presentation on 6ix