International Paper Co. reported a net loss of $2.38 billion for its fourth quarter of 2025, translating to a diluted loss of $4.52 per share. Revenue rose 31.1% year‑over‑year to $6.01 billion, driven by a 31% increase in sales in the newly formed Packaging Solutions North America (PS NA) segment and a 27% rise in the Packaging Solutions EMEA (PS EMEA) segment, even as the latter posted an operating loss of $223 million on $2.30 billion of sales.
The company’s adjusted EBITDA fell to $758 million, a decline from $859 million in the third quarter. The drop reflects a combination of higher operating costs, a $2.47 billion goodwill impairment, $0.96 billion in accelerated depreciation, and $0.63 billion in restructuring charges that were recorded in 2025. PS NA delivered an operating profit of $319 million on $3.72 billion of sales, while PS EMEA’s operating loss was offset by the North American gain, leaving the company with a modest operating margin of 5.3% for the quarter.
Management explained that the loss was largely one‑time and non‑cash in nature. CEO Andy Silvernail said the company is “making significant progress executing our profitable growth strategy” and that the impairment and restructuring costs are part of a broader effort to streamline operations and unlock value. He added that the company remains confident in its 2026 targets, citing a planned split into two independent public companies—one focused on North America and the other on EMEA—as a key driver of future profitability.
International Paper set 2026 adjusted EBITDA guidance of $3.5 billion to $3.7 billion, and a first‑quarter target of $740 million to $760 million. The guidance reflects the company’s expectation of continued demand in the packaging market, especially in e‑commerce and high‑margin specialty products, while acknowledging the need for further cost discipline and capital investment in capacity upgrades.
The spin‑off plan, announced concurrently with the earnings release, is expected to unlock value by allowing each regional business to pursue tailored growth strategies and capital allocation. Silvernail noted that the split will “create two scaled, independent, regional packaging solutions leaders” and that the company believes the move will enhance market competitiveness and shareholder value.
Pre‑market trading showed a 1.7% lift in the company’s stock, driven largely by investor optimism around the spin‑off and the revenue beat, despite the earnings miss. Analysts highlighted the company’s strong revenue growth and the strategic rationale behind the split as key factors supporting the positive market reaction.
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