International Paper Company Q1 FY2026 earnings call

• North America: Delivered above market growth for third straight quarter, box shipments exceeded industry by 3%. Mill and box plant productivity improving. Made strategic investments. Need to accelerate mill reliability momentum and improve execution. • EMEA: Made progress on cost-out actions. Market softer than expected. Focus on balancing price volume trade-offs. Footprint optimization ongoing with run rate cost savings increased to over $200 million. • Strategic investments: Aggressively accelerated investment across North America network, including targeted acquisitions, greenfield facilities, etc. Bolt-on acquisition of NORPAC paper mill in Longview, Washington strengthens West Coast footprint. • Separation process: Small core team working on separation planning, on track to complete within 12 - 15 months, expected to retain ~20% ownership stake for 12 - 18 months, EMEA packaging business dual listed on LSE and NYSE.

Packaging Solutions North America: First quarter adjusted EBITDA was $477 million. Second quarter outlook for adjusted EBITDA is approximately $380 to $410 million. Full-year 2026 adjusted EBITDA outlook updated to $2.35 to $2.5 billion. Packaging Solutions EMEA: First quarter adjusted EBITDA was $208 million. Second quarter outlook for adjusted EBITDA is approximately $150 to $170 million. Full-year 2026 adjusted EBITDA target updated to $900 million to $1 billion.

• North America: Expect to deliver $2.35 to $2.5 billion of adjusted EBITDA in 2026. • EMEA: Target $900 million to $1 billion of adjusted EBITDA in 2026. • Enterprise level: Including corporate, expect $3.2 to $3.5 billion of adjusted EBITDA. Free cash flow expected to be approximately $300 to $500 million.

• Macro environment uncertainty affecting demand. • Inflationary pressures. • Weather-related disruptions. • Energy price volatility. • Freight cost pressures. • Unplanned costs higher than expected due to transformation activity and external factors. • EMEA conflict in Middle East increasing challenge with more energy exposure.

Q: Mike Roxlin with Truist Securities asked about bridging to 2027 EBITDA of 5 billion.

A: Focus on Lance's bridge from first half to second half, incremental price flow-through, operating cost improvements, market growth and share wins.

Q: Mark Weintraub with Seaport Research Partners asked about reliability showing up.

A: Saw productivity improvements in mill and box plant, need to address ancillary costs like transactional costs, contract costs, etc.

Q: Brian Bergmeier on behalf of Anthony Pitoneri asked about supply-demand outlook in Europe.

A: Demand modestly down, effective hedging strategy in place, fourth quartile assets struggling.

Q: George Staffels with Bank of America asked about cost out and step up in North America.

A: Total cost out to be over a billion, step up in second half driven by price-volume mix, timing of planned maintenance, etc.

Q: Phil Ng with Jefferies asked about supply-demand in marketplace and approach to macro.

A: Modestly short on paper, focus on strategy, holding accountable, trying to give more cushion in macro environment.