BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Operating Profit (Loss) by Industry 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 millions	PS NA		PS EMEA		Total
Net sales from external customers	$	3,597	$	2,323	$	5,920
Intersegment sales	29		—		29
	3,626		2,323		5,949
Other external sales					51
Elimination of intersegment sales					(29)
Total Net Sales					5,971

Less:
Cost of products sold	2,507		1,712
Selling and administrative expenses	333		157
Depreciation and amortization	230		259
Distribution expenses	276		237
Other segment items (a)	32		9
Business Segment Operating Profit (Loss)	248		(51)		197

Interest Expense, net					76
Adjustment for less than wholly owned subsidiaries (b)					(1)
Corporate expenses, net					10
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 millions	PS NA		PS EMEA		Total
Net sales from external customers	$	3,668	$	1,550	$	5,218
Intersegment sales	34		—		34
	3,702		1,550		5,252
Other external sales					46
Elimination of intersegment sales					(34)
Total Net Sales					5,264

Less:
Cost of products sold	2,569		1,147
Selling and administrative expenses	282		93
Depreciation and amortization	413		107
Distribution expenses	266		151
Other segment items (a)	30		6
Business Segment Operating Profit (Loss)	142		46		188

Interest Expense, net					84
Adjustment for less than wholly owned subsidiaries (b)					(1)
Corporate expenses, net					20
Net special items (i)					237
Non-operating pension (income) expense					3
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.

Schedule of Assets

Assets


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

Segment, Reconciliation of Other Items from Segments to Consolidated

Capital Expenditures


In millions	March 31, 2026		March 31, 2025
PS NA	$	384	$	182
PS EMEA	83		106
Subtotal	467		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.