International Paper Company (NYSE: IP) experienced a downturn in its share price on Thursday following the release of its fourth-quarter financial results and the announcement of a significant corporate restructuring. Despite surpassing revenue forecasts, the company reported an earnings loss per share, reflecting mixed performance and prompting plans to separate its business into two independent publicly traded companies.
In the fourth quarter, International Paper reported a loss of eight cents per share, falling short of market expectations which had forecast an earnings per share (EPS) of 24 cents. However, the company’s revenue for this period reached $6.01 billion, exceeding the projected $5.93 billion consensus estimate.
Andy Silvernail, Chairman and Chief Executive Officer, highlighted regional performance variations in his remarks. He noted that in North America, the firm achieved above-market growth during the latter half of the year, delivering a 37% year-over-year improvement in adjusted EBITDA. Conversely, in the Europe, Middle East, and Africa (EMEA) region, management undertook decisive measures to leverage commercial and structural cost levers, positioning the business for robust progress in the upcoming year.
Looking ahead to 2026, Silvernail conveyed optimism about the company’s operational and efficiency initiatives. The firm anticipates substantial advancements in commercial activities and cost reductions, targeting an adjusted EBITDA range of $3.5 billion to $3.7 billion for the full year, with first-quarter expectations between $740 million and $760 million.
Crucially, the company announced a strategic plan to divide into two separate public entities to enhance focus and capitalize on regional strengths. The forthcoming International Paper will encompass the company's North American operations, integrating legacy International Paper and DS Smith assets.
Meanwhile, the EMEA Packaging division will consist of DS Smith and International Paper’s assets located across Europe, the Middle East, and Africa. This separation reflects a deliberate strategy to concentrate on North American operations, supported by a more targeted approach to capital allocation.
The spin-off of the combined EMEA Packaging business is planned as a distribution to existing International Paper shareholders, with the parent company retaining a substantial ownership stake in the new entity. The newly independent company is expected to pursue listings on both the London and New York Stock Exchanges, with Tim Nicholls appointed as CEO.
International Paper projects completion of this transaction within a 12 to 15-month timeframe, contingent upon customary regulatory and shareholder approvals.
Following the announcements, share prices declined, with International Paper’s stock retreating by approximately 3.43% to $38.06 as of Thursday’s publication.
The company’s restructuring and varied financial outcomes symbolize a significant moment in its corporate trajectory as it seeks to optimize operational efficiencies and sharpen regional market focus during a transformative period.