01—Abstract
Summary
Summary of the 10-K filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.
International Paper Company reported 2025 net sales of $23.63 billiona, up from $15.84 billion in 2024, largely reflecting the acquisition of DS Smith on January 31, 2025 (enterprise value of approximately $9.9 billion).
The company swung to a loss from continuing operations of $(2.84) billion, driven by a $2.47 billionb pre-tax non-cash goodwill impairment on the PS EMEA reporting unit, $958 million of non-cash accelerated depreciation tied to asset rationalization, and $626 million of restructuring charges. Adjusted EBITDA from continuing operations was $2.98 billion versus $1.64 billion in 2024. Cash provided by operating activities was $1.70 billion and free cash flow was $(159) million, as capital expenditures rose to $1.86 billion.
Net loss was $(3.52) billion, including $1.07 billionc of pre-tax impairment on the Global Cellulose Fibers business, which was sold to American Industrial Partners for $1.5 billion and closed in January 2026. Management announced on January 29, 2026 a plan to separate into two independent public companies, North America and EMEA, expected to be completed in 12 to 15 months. Total debt was approximately $9.8 billion at year-end 2025, and the company paid $977 million in dividends.
Management's 2026 capital expenditure outlook is $1.95 billion to $2.05 billiond. The company disclosed pending exposures, including a containerboard price-fixing class action filed in July 2025, the Italian Competition Authority matter, and a Brazilian tax dispute carried under the Sylvamo tax matters agreement with a potential company liability of approximately $274 million. Deloitte & Touche LLP issued unqualified opinions on the financial statements and internal control, which excluded DS Smith, representing approximately 43% of total assets and 33% of net sales.
02—Key points
Key Highlights
- Net sales rose to $23.63 billion in 2025 from $15.84 billion in 2024, with DS Smith contributing $7.8 billion of net sales.
- Loss from continuing operations of $(2.84) billion, including a $2.47 billion pre-tax goodwill impairment on PS EMEA and $626 million of restructuring charges.
- Adjusted EBITDA from continuing operations was $2.98 billion, compared with $1.64 billion in 2024; free cash flow was $(159) million.
- Planned separation into two independent public companies (North America and EMEA), targeted for completion in 12 to 15 months from the January 29, 2026 announcement.
- Global Cellulose Fibers business sold to American Industrial Partners for $1.5 billion, closing January 23, 2026, with proceeds intended partly to pay down debt.
- Total outstanding indebtedness of approximately $9.8 billion at December 31, 2025, with credit ratings of BBB (S&P) and Baa2 (Moody's), both stable outlook.
- 2026 capital expenditures expected at approximately $1.95 billion to $2.05 billion, and the company paid $977 million in dividends in 2025.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2025, International Paper lost $0.15.
- Revenue$23.63B100.0%
- Cost of revenue−$16.64B70.4%
- Gross profit$7.00B29.6%
- Operating costs−$9.84B41.6%
- Operating income−$2.84B12.0%
- Interest, other & tax−$678.0M2.9%
- Net income−$3.52B14.9%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 27, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $23.63B$15.84B | +49.3% |
| Cost of Revenue | $16.64B$11.40B | +46.0% |
| Gross Profit | $7.00B$4.44B | +57.7% |
| SG&A Expenses | $2.05B$1.70B | +20.4% |
| Operating Income | -$2.84B$725.00M | −491.4% |
| Interest Expense | $551.00M$432.00M | +27.5% |
| Net Income | -$3.52B$557.00M | −731.2% |
| EPS (Basic) | $-6.95$1.60 | −534.4% |
| EPS (Diluted) | $-6.95$1.57 | −542.7% |
| Shares Outstanding (Basic) | 505.70M347.20M | +45.7% |
| Shares Outstanding (Diluted) | 505.70M354.20M | +42.8% |
05—Questions
Frequently Asked Questions
Why did International Paper report a large net loss in 2025?
The net loss of $(3.52) billion reflects a $2.47 billion pre-tax non-cash goodwill impairment on the PS EMEA reporting unit, $1.07 billion of pre-tax impairment on the Global Cellulose Fibers business in discontinued operations, $958 million of non-cash accelerated depreciation, and $626 million of restructuring charges.
What is the status of the planned separation?
On January 29, 2026, the company announced a plan to spin off its EMEA packaging business as an independent public company, with International Paper retaining a meaningful ownership stake. The filing states completion is expected within 12 to 15 months, subject to customary conditions including final Board approval, an SEC registration statement, and a UK FCA-approved prospectus, and that no assurance can be given on timing or structure.
How much debt does the company carry and what are its credit ratings?
As of December 31, 2025, the company had approximately $9.8 billion of outstanding indebtedness. Long-term credit ratings were BBB (stable outlook) from S&P and Baa2 (stable outlook) from Moody's. Certain debt agreements carry interest rate step-ups on a rating downgrade, covering approximately $4.0 billion of debt.
What significant legal and tax exposures are disclosed?
The company is defending a purported class action alleging containerboard price-fixing under the Sherman Act, filed July 29, 2025, and faces claims tied to an Italian Competition Authority decision. A Brazilian tax dispute relating to Sylvamo-era assessments totals approximately $394 million including interest and penalties, with the company's potential liability under the tax matters agreement stated as approximately $274 million. The filing states it is too early to estimate outcomes for the containerboard and Italian matters.
06—Continue