International Paper (NYSE: IP; LSE: IPC) has reported its full-year and fourth quarter 2025 financial results, along with its plan to create two independent, publicly traded packaging solutions companies in North America and EMEA. The company's net sales for the full year were $23.63 billion, while the net sales for the fourth quarter were reported at $6.01 billion.
The full-year loss from continuing operations was $2.84 billion, which includes a $2.47 billion pre-tax non-cash goodwill impairment charge, $0.96 billion non-cash accelerated depreciation associated with asset rationalization decisions, and $0.63 billion of restructuring charges. The adjusted EBITDA from continuing operations for the full year was $2.98 billion.
For the fourth quarter of 2025, the loss from continuing operations was $2.36 billion, including a $2.47 billion pre-tax non-cash goodwill impairment charge, $0.09 billion non-cash accelerated depreciation associated with asset rationalization decisions, and $0.16 billion of restructuring charges. The adjusted EBITDA from continuing operations for the fourth quarter was $0.76 billion.
In terms of segment information, the Packaging Solutions North America (PS NA) business segment reported net sales of $3.715 billion in the fourth quarter of 2025, compared to $3.898 billion in the third quarter of 2025. The Packaging Solutions EMEA (PS EMEA) business segment reported net sales of $2.3 billion in the fourth quarter of 2025, compared to $2.31 billion in the third quarter of 2025.
Looking ahead to 2026, the company has set adjusted EBITDA targets of $3.5-$3.7 billion for the full year and $0.74-$0.76 billion for the first quarter.
It's worth noting the company's plan to form two independent, public companies through the separation of its PS NA and PS EMEA businesses. The separation is expected to be completed in 12-15 months, subject to certain conditions.
In terms of non-GAAP financial measures, International Paper reported a net after-tax charge of $2.32 billion for net special items in the fourth quarter of 2025, compared to a net after-tax charge of $53 million in the fourth quarter of 2024.
The company's efforts to create two scaled, regional packaging solutions leaders and its strategic initiatives to drive growth and profitability are reflected in the financial results and the targets set for 2026. The market has reacted to these announcements by moving the company's shares -0.71% to a price of $43.35. For more information, read the company's full 8-K submission here.
