International Paper Company · NYSE:IP
International Paper — Q3 2025 Earnings Presentation
29 slides from International Paper's earnings presentation, Oct 30, 2025
Slide 1: Third Quarter 2025 Earnings
Third Quarter 2025 Earnings October 30, 2025
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: We have a clear strategy to drive sustainable value creation
We have a clear strategy to drive sustainable value creation W H E R E T O P L AY RIGHT GEOGRAPHIES RIGHT CUSTOMERS RIGHT PRODUCTS HOW TO WIN ADVANTAGED COST POSITION SIMPLIFY Expands margins while bolstering ability to ACP win with customers; funds investment SEGMENT SUPERIOR CUSTOMER EXPERIENCE 80
Slide 4: Our transformation is well underway
Our transformation is well underway Packaging Solutions Packaging Solutions North America EMEA Transformation is delivering earnings improvement, on The combined Packaging Solutions EMEA has track to achieve ambitious adjusted EBITDA1 lift significantly strengthened our market position, with attract
Slide 5: North American YTD results demonstrate transformation progress
North American YTD results demonstrate transformation progress PS NA EARNINGS DRIVERS Packaging Solutions North America Cost Out Optimization of Mill / Plant footprint with YTD PS NA(a) $1.72 facility closures and productivity investments 1 Adj. EBITDA ($B) + 40% Enterprise overhead reduction Expand
Slide 6: Quarterly Highlights
Quarterly Highlights ➢ Adj. EBITDA1 sequential step-up improvement of 28% for Performance Packaging Solutions businesses(a) ➢ Continued market softness in North America and EMEA Demand ➢ Strategic customer wins resulting in YoY growth in Sept. for PS NA ➢ Rapidly executing cost out measures in light
Slide 7: Enterprise: 3Q'25 Results
Enterprise: 3Q’25 Results Excludes GCF as discontinued ops. Sales ($MM) Adj. EBIT1 ($MM) $6,142 $6,222 $158 $239 $3,979 $(240) (a) 3Q'24 2Q'25 3Q'25 3Q'24 2Q'25 3Q'25 Adj. EBITDA1 ($MM) Adj. Operating EPS2 $859 $670 $0.33 $0.18 $366 (a) $(0.43) 3Q'24 2Q'25 3Q'25 3Q'24 2Q'25 3Q'25 Adj. EBITDA1 Margin
Slide 8: 3Q'25 results reflect significant step up sequentially
3Q’25 results reflect significant step up sequentially 2Q’25 3Q’25 ACTUAL ACTUAL (Adj. EBITDA1 $MM) PS NA $515 $655 PS EMEA $194 $209 Corp & Other 2 (a,b) $(39) $(5) IP $670 $859 (continuing operations) GCF $63(c) $153(d) (discontinued operations) IP $733 $1,012 (incl. GCF discontinued operation) Ga
Slide 9: PS NA: 3Q'25 Results
PS NA: 3Q’25 Results 2Q’25 to 3Q’25 ($MM) Beginning Adj. EBITDA 1 515 655 Commentary Price & Mix 28 Prior price index movement Volume 4 Soft but stable demand Ops & Costs 49 Non-repeat of 2Q items | Strategic initiatives Maintenance 86 Timing of planned outages to accelerate mill closures Outages In
Slide 10: Confidence in growing at or above industry moving forward
Confidence in growing at or above industry moving forward Packaging Solutions North America Box Volume Trend(a) Y.o.Y Daily Basis Strategic commercial shift to enhance margins Accelerating customer-centric approach 2% +1.0% - (2)% (1.7)% (4)% PS NA (6)% FBA Est. (8)% PS NA (10)% (12)% 3Q'23 4Q'23 1Q
Slide 11: PS NA: 4Q'25 Outlook
PS NA: 4Q’25 Outlook 3Q’25 to 4Q’25 ($MM) Outlook Beginning Adj. EBITDA 1 655 655 Commentary Price & Mix 4 Stable Commercial impact of mill closure $(60)MM | 3 less shipping days Volume (82) Strategic wins & seasonality Cost-out impact of mill closure +$60MM Ops & Costs 44 Seasonally higher labor |
Slide 12: Meaningful progress against planned strategic initiatives
Meaningful progress against planned strategic initiatives PS NA EARNINGS DRIVERS Packaging Solutions North America Commercial PS NA Pricing improvement from prior publication 1 Adj. EBITDA ($B) + 18% increases $0.16 On-boarding commercial wins $(0.06) $1.26 Cost Out $0.13 $(0.04) Optimization of Mil
Slide 13: PS EMEA: 3Q'25 Results
PS EMEA: 3Q’25 Results 2Q’25 to 3Q’25 ($MM) Beginning Adj. EBITDA 1 194 Commentary Price & Mix 13 Realization of prior price index movement Volume (5) Continued market softness Inventory valuation from paper price decline Ops & Costs (10) Timing of expense Maintenance (2) Timing of planned outages O
Slide 14: PS EMEA: 4Q'25 Outlook
PS EMEA: 4Q’25 Outlook 3Q’25 to 4Q’25 ($MM) Outlook Beginning Adj. EBITDA 1 209 655 Commentary Price & Mix 12 Realization of prior price index movement Volume 12 Favorable seasonality Ops & Costs (24) Increased costs related to increased volume | Timing of expense non repeat Maintenance 5 Timing of
Slide 15: Soft macro climate persists with early signs of 80/20 progress
Soft macro climate persists with early signs of 80/20 progress PS EMEA EARNINGS DRIVERS Packaging Solutions EMEA Commercial PS EMEA Continued EMEA macro headwinds 1 Adj. EBITDA ($B) Cost Out +26% Procurement & overhead optimization $0.07 $0.44 Input Costs / Other (incl. inflation) One additional mon
Slide 16: Incremental ~$0.6B Adj. EBITDA secured for 2026 from 2025 actions
Incremental ~$0.6B Adj. EBITDA1 secured for 2026 from 2025 actions PS NA +$0.3B PS EMEA +$0.3B $0.3 $0.1 $0.6 $0.2 $0.3 ($0.3) (a) 1 Cost Out Commercial Non-Strategic Cost Out Commercial 2026 Adj. EBITDA Comm. Exits Incr. Benefit Target Additional 2026 upsides would include market growth, price, and
Slide 17: Updated Targets
Updated Targets 2025 2027 Investor Day Current Investor Day Current (excluding GCF) (excluding GCF) (excluding GCF) (excluding GCF) (a) Net Sales $24.5B ~$24.0B $26.0B - $28.0B ~$25.5B (a) Adjusted EBITDA1 $3.1B - $3.6B ~$3.0B $5.5B - $6.0B ~$5.0B Free Cash Flow2, 3 $0.1B - $0.3B $(0.1)B - $(0.3)B $
Slide 18: 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 Third Quarter 2025 Earnings 10/30/2025 18
Slide 19: PS NA: Q3 Results
PS NA: Q3 Results Sales ($MM) Adj. EBIT1,2 ($MM) $3,860 $3,898 $277 $190 $3,640 $(166) 3Q'24 2Q'25 3Q'25 3Q'24 2Q'25 3Q'25 Adj. EBITDA1(a) ($MM) Adj. EBITDA1(a) Margin 17.5% $655 13.9% $515 10.9% $378 3Q'24 2Q'25 3Q'25 3Q'24 2Q'25 3Q'25 Third Quarter 2025 Earnings 10/30/2025 (a) Excludes Recycling A
Slide 20: PS EMEA: Q3 Results
PS EMEA: Q3 Results Sales ($MM) Adj. EBIT1,2 ($MM) $2,291 $2,310 $7 $322 $(1) $(58) 3Q'24 2Q'25 3Q'25 3Q'24 2Q'25 3Q'25 Adj. EBITDA1 ($MM) Adj. EBITDA1 Margin 8.5% 9.0% 7.1% $194 $209 $23 3Q'24 2Q'25 3Q'25 3Q'24 2Q'25 3Q'25 Third Quarter 2025 Earnings 10/30/2025 20
Slide 21: 3Q'24 to 3Q'25 Adj. EBITDA Bridge
3Q’24 to 3Q’25 Adj. EBITDA Bridge 1 Packaging Solutions Packaging Solutions ($MM) North America EMEA Beginning Adj. EBITDA 1 378 23 Price & Mix 188 (14) Volume (18) (1) Ops & Costs 10 19 Maintenance 72 (11) Outages Inputs 13 5 DS Smith Legacy 12 188 EBITDA1 Ending Adj. EBITDA 1 655 209 Depreciation
Slide 22: Capex
Select Financial Metrics 1 5-Year Average $1.8 ($MM) 2024 2025F Maintenance Outage Expense $371 $381 Maintenance & Regulatory $761 Capex Targeting Cost Reduction $48 $1,800 - $1,900 Strategic $112 Depreciation & Amortization2 $850 $2,540 Net Interest Expense3 $224 $380 Corporate Expense $170 $115 Ef
Slide 23: 3Q'25 vs 2Q'25 Adjusted Operating EPS
3Q’25 vs 2Q’25 Adjusted Operating EPS1 0.07 (0.90) 0.11 (0.01) 0.06 0.06 - 0.18 (0.43) 2Q'25 Price/Mix Volume Operations Maintenance Input Costs Corporate Depreciation & 3Q'25 & Costs Outages & Other Items Amortization Third Quarter 2025 Earnings 10/30/2025 23
Slide 24: Maintenance Outages Expenses
Maintenance Outages Expenses 2025 Forecast ($MM) 1Q’25A 2Q’25A 3Q’25A 4Q’25F 2025F Packaging Solutions North America $93 $132 $46 $80 $351 Packaging Solutions EMEA $4 $9 $11 $6 $30 Total Impact $97 $141 $57 $86 $381 Third Quarter 2025 Earnings 10/30/2025 24
Slide 25: Sales Volume by Product
Sales Volume by Product (a) Preliminary and Unaudited Three Months Ended Three Months Ended Nine Months Ended September 30, June 30, September 30, 2025 2024 2025 2025 2024 PS NA (In thousands of short tons) Corrugated Packaging (b) 2,261 2,192 2,241 6,654 6,679 Containerboard 767 772 793 2,351 2,302
Slide 26: 2025 Operating Earnings
2025 Operating Earnings Non- Diluted Equity Pre-Tax Tax controlling Net Income Average Earnings Diluted EPS1 $MM $MM Interest $MM Shares $MM $MM MM Earnings (Loss) from Continuing Operations 1Q’25 $(155) $32 - $(1) $(124) 438 $(0.28) 2Q’25 $116 $(40) - $(1) $75 533 $0.14 3Q’25 $(675) $250 - $(1) $(4
Slide 27: Global Input Costs 3Q'25 vs 2Q'25
Global Input Costs 3Q’25 vs 2Q’25 $(8)MM Unfavorable, $(0.01) per share By Business By Input Type 19 23 8 - 1 W o - - o (1) d (4) (30) (27) (5) Packaging Packaging Solutions Energy Fiber Chemicals Freight OCC Solutions EMEA North America North America EMEA Energy Wood Chemicals Freight OCC Third Qua
Slide 28: Footnotes
Footnotes Beginning in Q3 2025, 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 generatio
Slide 29: Footnotes
Footnotes Slide 17 1 Adjusted EBITDA and Adjusted EBITDA Margin are a non-GAAP financial measures presented as a supplemental measures of our performance. It is not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measure
International Paper Company — Q3 2025 Earnings Presentation on 6ix