v3.26.1
BUSINESS SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
PS NA and PS EMEA are primarily focused on producing fiber-based packaging. We produce linerboard, medium, whitetop, recycled linerboard and recycled medium of which a majority of our production is converted into corrugated packaging and
other packaging. The revenue for our PS NA and PS EMEA segments are derived from selling these products to our customers.

The CODM assesses performance for these segments and decides how to allocate resources based on business segment operating profit, which is defined as earnings (loss) before income taxes and equity earnings (losses), including the impact of less than wholly owned subsidiaries and excluding interest expense, net, corporate expenses, net, net special items and non-operating pension expense. Business segment operating profits (losses) are also used by International Paper's CODM to measure the earnings performance of its businesses and to focus on on-going operations.

INFORMATION BY BUSINESS SEGMENT

The following tables illustrate reportable segment revenue, significant segment expenses, and measures of a segment’s profit or loss for the three months ended March 31, 2026 and 2025. Certain prior year amounts have been expanded to align with current year presentation. The table also reconciles these amounts to Earnings (loss) before income taxes and equity earnings (loss).

Three Months Ended March 31, 2026
In millionsPS NAPS EMEATotal
Net sales from external customers$3,597 $2,323 $5,920 
Intersegment sales29 — 29 
3,626 2,323 5,949 
Other external sales51 
Elimination of intersegment sales(29)
Total Net Sales5,971 
Less:
Cost of products sold2,507 1,712 
Selling and administrative expenses333 157 
Depreciation and amortization230 259 
Distribution expenses276 237 
Other segment items (a)32 9 
Business Segment Operating Profit (Loss)248 (51)197 
Interest Expense, net76 
Adjustment for less than wholly owned subsidiaries (b)(1)
Corporate expenses, net10 
Net special items (i)37 
Non-operating pension (income) expense(18)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$93 
(i)Includes a charge of $11 million for costs associated with the strategic separation of our PS EMEA packaging business, a charge of $7 million for costs related to the closure of our Riceboro, Georgia containerboard mill, a charge of $16 million for restructuring charges related to resource and asset realignment and a charge of $3 million for other items.
Three Months Ended March 31, 2025
In millionsPS NAPS EMEATotal
Net sales from external customers$3,668 $1,550 $5,218 
Intersegment sales34 — 34 
3,702 1,550 5,252 
Other external sales46 
Elimination of intersegment sales(34)
Total Net Sales5,264 
Less:
Cost of products sold2,569 1,147 
Selling and administrative expenses282 93 
Depreciation and amortization413 107 
Distribution expenses266 151 
Other segment items (a)30 6 
Business Segment Operating Profit (Loss)142 46 188 
Interest Expense, net84 
Adjustment for less than wholly owned subsidiaries (b)(1)
Corporate expenses, net20 
Net special items (i)237 
Non-operating pension (income) expense3 
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$(155)

(i)Includes a charge of $221 million for transaction and other costs related to the DS Smith acquisition, a charge of $78 million for severance and other costs related to the closure of our Red River containerboard mill in Campti, Louisiana, a net gain of $67 million related to the sale of fixed assets primarily associated with our permanently closed Orange, TX containerboard mill and a net charge of $5 million for other items.

Assets
In millionsMarch 31, 2026December 31, 2025
PS NA$16,718 $16,498 
PS EMEA15,351 15,439 
Corporate and other (c)4,365 6,027 
Assets$36,434 $37,964 

Capital Expenditures
In millionsMarch 31, 2026March 31, 2025
PS NA$384 $182 
PS EMEA83 106 
Subtotal467 288 
Corporate and other (d)50 42 
Capital Expenditures$517 $330 

(a)Other segment items includes Taxes other than payroll.
(b)Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly-owned. The pre-tax earnings for these subsidiaries is added here to present consolidated earnings from continuing operations before income taxes and equity earnings.
(c)Includes corporate assets and held for sale assets related to the GCF business.
(d)Includes capital expenditures for corporate and the GCF business.