v3.26.1
BUSINESS SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 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 chief operating decision maker ("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.

Beginning in the second quarter of 2026, segment information reviewed by the CODM excluded Deferred Compensation Savings Plan mark-to-market adjustments as these market-driven adjustments do not reflect on-going segment performance. The amounts are immaterial and are now reported as corporate expenses. Compensation expense related to employee contributions continues to be allocated to the segments.

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 June 30, 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 June 30, 2026
In millionsPS NAPS EMEATotal
Net sales from external customers$3,670 $2,286 $5,956 
Intersegment sales18 1 19 
3,688 2,287 5,975 
Other external sales48 
Elimination of intersegment sales(19)
Total Net Sales6,004 
Less:
Cost of products sold2,608 1,687 
Selling and administrative expenses334 171 
Depreciation and amortization226 262 
Distribution expenses285 237 
Other segment items (a)31 10 
Business Segment Operating Profit (Loss)204 (80)124 
Interest Expense, net87 
Adjustment for less than wholly owned subsidiaries (b)— 
Corporate expenses, net25 
Net special items (i)54 
Non-operating pension (income) expense(16)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$(26)
(i)Includes a charge of $43 million for costs associated with the strategic separation of our PS EMEA packaging business, a benefit of $13 million related to the closure of our Riceboro, Georgia containerboard mill, a gain of $11 million related to the completed sale of our box plant in Chile, a charge of $5 million for transaction costs for the NORPAC acquisition, a charge of $22 million for restructuring charges related to resource and asset realignment and charges of $8 million for other items.
Six Months Ended June 30, 2026
In millionsPS NAPS EMEATotal
Net sales from external customers$7,267 $4,609 $11,876 
Intersegment sales47 1 48 
7,314 4,610 11,924 
Other external sales99 
Elimination of intersegment sales(48)
Total Net Sales11,975 
Less:
Cost of products sold5,115 3,399 
Selling and administrative expenses667 328 
Depreciation and amortization456 521 
Distribution expenses561 474 
Other segment items (a)63 19 
Business Segment Operating Profit (Loss)452 (131)321 
Interest Expense, net163 
Adjustment for less than wholly owned subsidiaries (b)(1)
Corporate expenses, net35 
Net special items (i)91 
Non-operating pension (income) expense(34)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$67 

(i)Includes a charge of $54 million for costs associated with the strategic separation of our PS EMEA packaging business, a benefit of $6 million related to the closure of our Riceboro, Georgia containerboard mill, a gain of $11 million related to the completed sale of our box plant in Chile, a charge of $5 million for transaction costs for the NORPAC acquisition, a charge of $38 million for restructuring charges related to resource and asset realignment and charges of $11 million for other items.

Three Months Ended June 30, 2025
In millionsPS NAPS EMEATotal
Net sales from external customers$3,803 $2,291 $6,094 
Intersegment sales57 — 57 
3,860 2,291 6,151 
Other external sales48 
Elimination of intersegment sales(57)
Total Net Sales6,142 
Less:
Cost of products sold2,695 1,699 
Selling and administrative expenses340 154 
Depreciation and amortization236 195 
Distribution expenses281 235 
Other segment items (a)31 9 
Business Segment Operating Profit (Loss)277 (1)276 
Interest Expense, net108 
Adjustment for less than wholly owned subsidiaries (b)— 
Corporate expenses, net37 
Net special items (i)20 
Non-operating pension (income) expense(5)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$116 

(i)Includes a charge of $55 million for transaction and other costs related to the DS Smith acquisition, a charge of $7 million for costs related to the closure of our Red River containerboard mill in Campti, Louisiana, a net gain of $51 million related to the Remedies Divestiture and a net charge of $9 million for other items.
Six Months Ended June 30, 2025
In millionsPS NAPS EMEATotal
Net sales from external customers$7,471 $3,841 $11,312 
Intersegment sales91 — 91 
7,562 3,841 11,403 
Other external sales94 
Elimination of intersegment sales(91)
Total Net Sales11,406 
Less:
Cost of products sold5,264 2,846 
Selling and administrative expenses622 247 
Depreciation and amortization649 302 
Distribution expenses547 386 
Other segment items (a)61 15 
Business Segment Operating Profit (Loss)419 45 464 
Interest Expense, net192 
Adjustment for less than wholly owned subsidiaries (b)(1)
Corporate expenses, net57 
Net special items (i)257 
Non-operating pension (income) expense(2)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$(39)

(i)     Includes a charge of $276 million for transaction and other costs related to the DS Smith acquisition, a charge of $85 million for costs related to the closure of our Red River containerboard mill in Campti, Louisiana, a net gain of $51 million related to the Remedies Divestiture, a net gain of $67 million related to the sale of fixed assets primarily associated with our permanently closed Orange, Texas containerboard mill and a net charge of $14 million for other items.

Assets
In millionsJune 30, 2026December 31, 2025
PS NA$17,587 $16,498 
PS EMEA15,050 15,439 
Corporate and other (c)3,884 6,027 
Assets$36,521 $37,964 

Capital Expenditures
In millionsJune 30, 2026June 30, 2025
PS NA$792 $401 
PS EMEA203 265 
Subtotal995 666 
Corporate and other (d)55 86 
Capital Expenditures$1,050 $752 

(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.