International Paper (IP) Investor presentation summary

Strategic focus and business model

• Delivers sustainable corrugated packaging solutions across diverse industries, emphasizing supply chain value and sustainability goals.

• Strategy centers on targeting the right geographies, customers, and products, leveraging an 80/20 performance system for resource alignment and simplification.

• Prioritizes cost leadership, superior customer experience, and high relative supply position to expand margins and drive growth.

• Fosters a performance-driven culture with leadership accountability and empowerment at operational levels.

• Mission and values highlight safety, trust, and excellence, aiming for best-in-class results through strong teams.

Financial performance and key metrics

• 2025 net sales reached $23.6B, with adjusted EBITDA of $2.98B and a margin of 12.6%.

• Free cash flow for 2025 was $(159)M, impacted by transformation spending.

• Adjusted operating EPS for 2025 was $(0.20), reflecting significant transformation costs.

• Adjusted return on invested capital declined to 3.9% in 2025.

• Capital spending projected at $1.95–$2.05B for 2026, about 9% of sales.

Segment highlights: North America (PS NA)

• PS NA generated $15.2B in net sales and $2.3B in adjusted EBITDA for 2025, with a 15.7% margin.

• Operates over 220 facilities, with a strong supply position and focus on fresh food, processed food, e-commerce, and durables.

• Containerboard mill system capacity is ~10.7 million short tons, with 65% virgin and 35% recycled fiber mix.

• Maintains a 90% integration level between mills and box plants.

• Cash cost structure led by fiber (34%), materials (22%), and labor (13%).