International Paper to split into two companies as Q4 results released
Key takeaways
- IP plans to split into two publicly traded companies, spinning off its EMEA Packaging business.
- Q4 2025 results show a net loss of US$2.38 billion, with an anticipated US$3.5–US$3.7B adjusted EBITDA for 2026.
- The split is expected to be completed in 12–15 months, subject to final board approval.
International Paper (IP) has announced plans to split into two regional, publicly traded companies. As part of the separation, its EMEA Packaging business will be spun off to shareholders, while IP intends to retain a meaningful ownership stake in the new company.
IP has also released its Fourth Quarter 2025 Results (Q4 Results), revealing a loss from continuing operations in Q4 2025 to be US$2.36 billion, and a net loss of US$2.38 billion for the same period.
The company plans to complete the separation in 12–15 months, subject to customary conditions, including a final approval by the IP Board of Directors.
“During the past year, we have created two regional powerhouses with scale, strong customer relationships, leading brands, and talented teams,” says IP chairman and CEO Andy Silvernail.
“The two businesses operate in distinct market environments and are at different stages of their transformation. We have learned a lot about how to create value in each region,” he continues.
“The next right step in our transformation journey to achieve full value creation potential is to create two independent, regionally focused companies. Taking this swift, decisive action now will enable both businesses to reach best-in-class performance and maximize long-term value creation through enhanced focus on their unique opportunities and targeted investment approaches."
Last year, IP fully acquired DS Smith, while its bag converting operations were taken over by ProAmpac. In November, IP closed down two of its US packaging production facilities “to improve customer service.”
Reaction to Q4 results
Commenting on IP’s Q4 results, Silvernail adds: "As we enter 2026, we anticipate meaningful progress on our commercial and cost-out initiatives and expect to deliver US$3.5 – US$3.7 billion of adjusted EBITDA for the full year and US$740–760 million in the first quarter.”
He notes that these targets are based on above-industry growth but do not reflect future price realization. “Further, we have not yet fully assessed the impact of this week's winter storm across the US."
"We have confidence in the plans to achieve our targets for 2026 as we work toward forming two scaled, independent, regional packaging solutions leaders in North America and EMEA."
Packaging Insights will continue to monitor this story as it unfolds.
