Core Insights - International Paper reported a significant loss from continuing operations of $2.84 billion for the full year 2025, which includes $0.63 billion in restructuring charges, $0.96 billion in non-cash accelerated depreciation, and a $2.47 billion pre-tax non-cash goodwill impairment charge [1][3] - The company plans to create two independent public companies focused on packaging solutions in North America and EMEA, aiming to enhance operational efficiency and financial performance [1][2] Financial Performance - Full-Year 2025 Financial Summary: - Net Sales: $23.634 billion, up from $15.835 billion in 2024 - Loss from Continuing Operations: $2.84 billion compared to a profit of $725 million in 2024 - Adjusted EBITDA: $2.976 billion, up from $1.636 billion in 2024 [1][5] - Fourth Quarter 2025 Financial Summary: - Net Sales: $6.006 billion, compared to $3.922 billion in Q4 2024 - Loss from Continuing Operations: $2.363 billion, down from a profit of $88 million in Q4 2024 - Adjusted EBITDA: $758 million, compared to $443 million in Q4 2024 [1][5] Segment Information - The company operates through two segments: Packaging Solutions North America (PS NA) and Packaging Solutions EMEA (PS EMEA) - PS NA reported net sales of $15.175 billion for the full year 2025, while PS EMEA reported $8.451 billion [2][3] - PS NA's operating profit for Q4 2025 was $319 million, while PS EMEA reported a loss of $223 million [2][3] Strategic Initiatives - The company is executing a profitable growth strategy, focusing resources on areas with the highest potential for success, resulting in a 37% year-over-year adjusted EBITDA improvement in North America [1][2] - The separation into two independent companies is expected to be completed within 12-15 months, contingent on customary conditions [2][3] Impairment Charges - A significant non-cash goodwill impairment charge of $2.47 billion was recorded for the PS EMEA segment as of December 31, 2025 [3][6] - The company also reported net special items in Q4 2025 amounting to a net after-tax charge of $2.32 billion, compared to $53 million in Q4 2024 [3][6] Future Outlook - For 2026, the company anticipates adjusted EBITDA of $3.5 billion to $3.7 billion, with a first-quarter target of $740 million to $760 million [1][2] - The targets are based on above-industry growth but do not account for future price realization [1][2]

Core Insights - International Paper plans to split into two independent, publicly traded companies based on geography, following the acquisition of DS Smith in January 2025 [4][6] - The North American business will retain legacy assets from both International Paper and DS Smith, while the EMEA business will encompass legacy assets from both companies in that region [6] - The spinoff is expected to be completed within 12 to 15 months, pending necessary board and regulatory approvals in the U.S. and U.K. [6] Financial Performance - International Paper reported $15.2 billion in sales for its North American business and $8.5 billion for its EMEA business in 2025 [4] - The company experienced an overall loss of $2.84 billion for the year [4] Leadership Changes - Andy Silvernail will continue as CEO of International Paper, while Tim Nicholls will serve as CEO of the new publicly traded EMEA packaging company [5] - The leadership team will remain in their current positions, including CFO Lance Loeffler and President of Packaging Solutions North America Tom Hamic [5] Strategic Goals - The separation aims to optimize the company's footprint, reduce costs, and enhance innovation leadership, with expected benefits starting in 2026 [6] - The new company is anticipated to have enhanced capabilities for both organic and inorganic investments [6]

Core Viewpoint - International Paper Company (IP) has undergone significant transformation through its merger with DS Smith, enhancing its presence in North America and EMEA markets, and the recent completion of a $1.5 billion transaction [1] Group 1: Company Transformation - The merger with DS Smith has expanded International Paper's footprint in key markets [1] - The completion of a $1.5 billion transaction marks a significant milestone in the company's strategic growth [1]

Key Takeaways IP is expected to post Q4 revenues of $5.88B, up 28.4% YoY, driven largely by acquisitions.IP's Q4 EPS estimate fell 20% to 28 cents, though it would still improve from last year's level.IP's EMEA sales are projected to jump on DS Smith, while weaker industrial demand pressures margins.International Paper Company (IP) is scheduled to report fourth-quarter 2025 results on Jan 29, 2026, before the opening bell.The Zacks Consensus Estimate for IP’s fourth-quarter revenues is pegged at $5.88 billi ...

Core Viewpoint - American Industrial Partners (AIP) has successfully acquired the Global Cellulose Fibers (GCF) business from International Paper, establishing GCF as an independent company [1][3]. Group 1: Company Overview - GCF is headquartered in Memphis, Tennessee, and is the leading global producer of high-quality absorbent fluff pulp for personal care applications, generating approximately $2.3 billion in revenue in 2024 [2][5]. - The company employs around 3,300 people and operates nine manufacturing facilities across the U.S., Canada, and Poland [2][5]. Group 2: Strategic Insights - AIP views GCF's strong market position, experienced workforce, and established customer relationships as key factors for future growth [3]. - GCF's CEO, Clay Ellis, emphasizes the alignment of AIP's long-term investment approach with GCF's culture and priorities, focusing on customer service and employee support [3]. Group 3: Transaction Details - BofA Securities served as the exclusive financial advisor to AIP and provided financing for the acquisition [3]. - Legal counsel for the transaction included Davis Polk & Wardwell LLP, Ropes & Gray LLP, and Baker Botts LLP [3]. Group 4: AIP Overview - AIP is an operationally-oriented industrials investor, focusing on quality industrial businesses with strong management teams and transformative Operating Agendas [4]. - The AIP portfolio companies generate approximately $29 billion in annual revenues and employ over 72,000 people as of September 30, 2025 [4].

Core Viewpoint - International Paper has successfully sold its Global Cellulose Fibers (GCF) business to American Industrial Partners for $1.5 billion, which includes preferred stock valued at $190 million [1]. Group 1: Business Overview - The GCF business produces high-quality pulp for various applications, including personal care products and construction materials, contributing to health and wellness [2]. - In 2024, the GCF segment generated $2.8 billion in revenue, with the sold operations accounting for approximately $2.3 billion, excluding revenue from closed mills [2]. - The GCF business employs 3,300 people globally and operates nine manufacturing facilities and eight regional offices [2]. Group 2: Company Background - International Paper is a leader in sustainable packaging solutions, headquartered in Memphis, Tennessee, with operations in over 30 countries and more than 65,000 employees [3]. - The company reported net sales of $18.6 billion for 2024 and acquired DS Smith in 2025, enhancing its position in the North American and EMEA markets [3].

Company Overview - International Paper Company (IP) has a market capitalization of $21 billion and is a global leader in fiber-based packaging, pulp, and paper products, with operations in North America, Latin America, Europe, North Africa, and the Middle East [1] Upcoming Earnings - The company is set to release its fiscal Q4 2025 results on January 29, with analysts projecting an adjusted EPS of $0.35, a significant increase from a loss of $0.02 in the same quarter last year [2] - For fiscal 2025, analysts forecast an adjusted EPS of $0.28, which represents a decline of 75.2% from $1.13 in fiscal 2024, but a substantial increase of 746.4% to $2.37 is expected in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, shares of International Paper have decreased by 26%, underperforming the S&P 500 Index, which gained 16.8%, and the Materials Select Sector SPDR Fund, which rose by 9.1% [4] - Investor sentiment has been negatively impacted by sluggish long-term revenue growth, declining free cash flow margins, and reduced returns on invested capital, leading to a lack of confidence in the company's ability to achieve sustainable growth [5] Analyst Ratings - The consensus rating for IP stock is "Moderate Buy," with 13 analysts covering the stock: eight recommend a "Strong Buy," one a "Moderate Buy," three a "Hold," and one a "Strong Sell" [6] - The average analyst price target for International Paper is $48.07, indicating a potential upside of 21% from current levels [6]

Group 1 - The core viewpoint is that despite challenges from tariff policies and fluctuating consumer confidence, the U.S. materials sector is expected to see its highest profit growth in five years, with a projected increase of 20% in 2026, second only to the technology sector [1][4] - The profitability of companies in the metals and packaging industries is anticipated to receive the most significant boost, with both sub-sectors expected to grow by over 30% due to strengthened steel prices and increased demand for packaging from consumer goods manufacturers [5][8] - Analysts indicate that U.S. steel producers will continue to benefit from tariffs on imports, which grant them pricing power, and companies like Nucor Steel are seeing an increase in backlog orders driven by energy, infrastructure, and manufacturing sectors [8][10] Group 2 - The packaging and metal segments are leading the profitability growth in the materials sector, with companies like Amcor expected to achieve profit growth of 12% to 17% by 2026, marking the highest growth in five years [12] - Despite some challenges, the demand for packaging remains mixed, prompting companies in the packaging industry to focus on cost-cutting and operational adjustments to mitigate the impact of economic conditions [12][13] - The chemical and building materials industries are also expected to recover, with analysts predicting that lower interest rates will enhance demand for companies like Sherwin-Williams and CRH Cement, boosting confidence in residential and non-residential construction transactions [13]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Global Pulp & Paper** industry, specifically highlighting price movements and market dynamics related to **Bleached Eucalyptus Kraft Pulp (BEKP)** and **Bleached Softwood Kraft Pulp (BSKP)** prices in Asia, Europe, and North America [2][3]. Price Movements - **Suzano** has announced a price increase of **US$20/t** for BEKP in Asia and **US$120/t** in Europe and North America for January, following a previous increase of **US$20/t** on December 15 [2]. - Current imported prices for BEKP have risen to the **US$550-570/t** range [2]. - Daily resale prices for BEKP have remained stable at approximately **US$560/t** [3]. Factors Influencing Price Increases - Several factors are contributing to the upward trend in pulp prices: - **Woodchip prices** have increased by **US$30-40/t** since July [2]. - A clearer supply outlook for 2026 is anticipated due to changes in production capacities [2]. - Maintenance downtimes in Q4/Q1 are expected to remove approximately **450kt** of pulp from the market [2]. - Price hikes in paper products, particularly in China, are also influencing pulp prices [2]. Market Challenges - The near-term outlook for price increases appears more challenging due to: - Resistance from buyers, as domestic woodchip prices have recently declined [3]. - Thin margins for paper mills, despite attempts to raise prices [3]. - An increase in BHK production in China as mills revert from softwood [3]. Investment Recommendations - The report recommends a **Buy** rating for the following companies: - **Suzano** with a price target of **R$64** [4]. - **UPM** with a price target of **€27.10** [4]. - **International Paper (IP)** with a price target of **$53** [4]. Key Data Points - **China Daily Resale Prices**: BEKP at **US$561/t** (+US$1/t week-over-week); BSKP Futures at **US$683/t** (+US$6/t week-over-week) [5]. - **China Woodchip Prices**: Imported hardwood chips at **US$179/t** (-4% month-over-month); domestic hardwood chips at **US$148/t** (-2% week-over-week) [5]. - **China Pulp Stockpiles**: Total at **2,361kt**, a decrease of **33kt** week-over-week [5]. - **China Pulp Prices**: BHK at **US$535/t** (+US$7/t month-over-month); BSK at **US$661/t** (+US$5/t month-over-month) [5]. Risks and Considerations - The pulp and paper sectors in Latin America are subject to high volatility and various risk factors, including commodity price fluctuations, regulatory changes, production disruptions, and labor issues [12]. - UPM's operational leverage to currency rates and prices is mitigated by its global reach and product diversification [13]. - IP's volumes are influenced by macroeconomic factors, and any decline in economic activity could negatively impact demand [14]. This summary encapsulates the critical insights and data from the conference call, providing a comprehensive overview of the current state and outlook of the Global Pulp & Paper industry.

Core Viewpoint - International Paper is set to release its fourth-quarter and full-year 2025 earnings on January 29, 2026, before the New York Stock Exchange opens, and will host a webcast to discuss these earnings and current market conditions [1]. Earnings Release Details - The earnings release will occur on January 29, 2026, before market opening [1]. - A webcast will be held at 10 a.m. ET (9 a.m. CT) to discuss the earnings and market conditions [1]. - Interested parties can access the webcast through the company's website [1]. Teleconference Participation - Participants wishing to join the webcast via teleconference can dial +1 646-307-1963 or 800-715-9871 (U.S. only) [2]. - The conference ID number for the call is 4020847, and participants should call in by 9:45 a.m. ET (8:45 a.m. CT) [2]. - An audio-only replay will be available for ninety days after the call [2]. Company Overview - International Paper is a global leader in sustainable packaging solutions, headquartered in Memphis, Tennessee, with operations in over 30 countries [3]. - The company employs more than 65,000 team members and reported net sales of $18.6 billion for 2024 [3]. - In 2025, International Paper acquired DS Smith, enhancing its position in the North American and EMEA markets [3]. Future Earnings Dates - The company has announced earnings dates for the remainder of 2026: - First Quarter: April 30, 2026 - Second Quarter: July 30, 2026 - Third Quarter: October 28, 2026 [4].