Research · Sep 3, 2026
[IP] International Paper Thesis 2026: EMEA Spinoff Sharpens Focus on North American Packaging
International Paper Company FY25 (post-DS Smith integration) revenue $24.90B (+34%); op income GAAP -$2.82B (vs +$476M FY24, reflects integration costs + asset impairments + restructuring + amortization); NI -$3.52B; EPS -$6.71. North America FY net sales >$15B / adj EBITDA ~$2.3B; NA Q4 +37% adj EBITDA YoY; volume outpacing market by 3-4pp. EMEA packaging FY net sales ~$8.5B / adj EBITDA ~$800M. Plan announced to separate EMEA packaging into standalone company. EMEA cost reduction: 20 site closures impacting ~1,400 roles; 7 sites/700 roles in works council discussions; >$160M run rate savings expected. 8020 core strategy + $710M cost-out actions achieved by 2025; NA $510M run rate cost benefits delivered. FY26 guide: enterprise net sales $24.1-$24.9B; adjusted EBITDA $3.5-$3.7B; FCF $300-$500M; NA EBITDA growth +$100M commercial + $500M cost - $200M transformation costs; EMEA EBITDA growth +$200M commercial + $200M cost-out - $100M inflation; Q1 NA EBITDA ~$534M (-$20-25M winter storm).