International Paper is undergoing a significant transformation, planning to split into two independent public companies focused on North American and EMEA packaging solutions. The company reported a substantial net loss for the full year and fourth quarter driven by significant impairment charges and restructuring, though adjusted EBITDA showed improvement year-over-year. Management expresses confidence in achieving 2026 financial targets based on commercial and cost-out initiatives.
Full-year 2025 Adjusted EBITDA from continuing operations was $2.98 billion, an increase from $1.64 billion in the prior year.
positiveFourth quarter 2025 Adjusted EBITDA from continuing operations was $0.76 billion, an increase from $0.44 billion in the prior year.
positivePackaging Solutions North America operating profit improved to $319 million in Q4 2025 from a loss of $166 million in Q3 2025.
positiveManagement anticipates full-year 2026 Adjusted EBITDA between $3.5-$3.7 billion and Q1 2026 Adjusted EBITDA between $0.74-$0.76 billion.
positiveFull-year 2025 net loss from continuing operations was $2.84 billion, including a $2.47 billion pre-tax non-cash goodwill impairment charge and $0.96 billion in accelerated depreciation.
negativeFourth quarter 2025 net loss from continuing operations was $2.36 billion, including a $2.47 billion pre-tax non-cash goodwill impairment charge and $0.09 billion in accelerated depreciation.
negativeFull-year 2025 Free Cash Flow was negative $0.16 billion, a significant decrease from positive $0.76 billion in the prior year.
negativePackaging Solutions EMEA operating loss widened to $223 million in Q4 2025 from $58 million in Q3 2025, driven by soft demand and lower sales prices.
attentionThe company recorded a $2.47 billion pre-tax, non-cash goodwill impairment charge related to the PS EMEA reporting unit.
attentionFull-year 2025 net sales of $23.63 billion represent a significant increase from $15.84 billion in 2024, but the company reported a substantial loss.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Packaging Solutions North America | N/A | — | — | — |
Packaging Solutions EMEA | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Throughout 2025, we made significant progress executing our profitable growth strategy.
By deploying and embedding 80/20, we focused resources where we can win and built two regional packaging powerhouses.
In North America we grew above market in the second half of the year and delivered 37% year-over-year adjusted EBITDA improvement.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.