v3.26.1
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA FINANCIAL INFORMATION BY BUSINESS SEGMENT
The Company’s three business segments, Europe, Latin America and North America, are organized by geography. These segments are consistent with the internal structure used to manage these businesses. Each of our segments derive their revenue from the manufacture and sale of paper and pulp products.

Business segment operating profits are used by the Company’s management to measure the earnings performance of its businesses. Management believes that business segment operating profit provides investors and analysts useful insights into our operating performance. Business Segment Operating Profit (Loss) (non-GAAP) is net income (loss) (GAAP) plus the sum of income taxes, net interest expense, the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items.

The Company’s chief operating decision maker is the President and Chief Executive Officer. The chief operating decision maker uses business segment operating profit to allocate resources (primarily capital spending) for each segment predominantly during the annual strategic planning, budgeting and forecasting processes. The chief operating decision maker also considers actual performance variances in business segment operating profits on a monthly basis to assess the performance of the segments.

Sales by business segment are determined using a management approach and include inter-segment sales (which are eliminated in consolidation).

Information By Business Segment

Net Sales and Business Segment Operating Profit (Loss)

Three Months Ended June 30, 2026:
In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$197 $219 $411 $827 
Intersegment sales(5)(16)— (21)
Net sales192 203 411 806 
Less:
Cost of products sold and other191 151 300 642 
Maintenance outages3 21 17 41 
Selling and administrative expenses11 22 32 65 
Depreciation, amortization and cost of timber harvested7 24 12 43 
Add:
Other special items, net (a)
— (1)— (1)
Business Segment Operating Profit (Loss)
$(20)$(16)$50 $14 
Net income (loss)
$(11)
Income tax provision (benefit)12 
Interest expense, net
11 
Foreign exchange gain on intercompany note (b)
(1)
Corporate special items, net (a)
4 
Other special items, net (a)
(1)
Business Segment Operating Profit $14 
(a) See table below for the effects of special items.
(b) Unallocated gain related to the foreign exchange on an intercompany note receivable from our Brazilian subsidiary, which is recorded within “Cost of products sold”.
Six Months Ended June 30, 2026:
In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$387 $406 $801 $1,594 
Intersegment sales(7)(26)— (33)
Net sales380 380 801 1,561 
Less:
Cost of products sold and other402 277 603 1,282 
Maintenance outages3 24 31 58 
Selling and administrative expenses24 45 68 137 
Depreciation, amortization and cost of timber harvested15 45 24 84 
Add:
Other special items, net (a)
— (1)— (1)
Business Segment Operating Profit (Loss)
$(64)$(12)$75 $(1)
Net income (loss)
$(14)
Income tax provision (benefit)9 
Interest expense, net
20 
Foreign exchange gain on intercompany note (b)
(20)
Corporate special items, net (a)
5 
Other special items, net (a)
(1)
Business Segment Operating Profit$(1)
(a) See table below for the effects of special items.
(b) Unallocated gain related to the foreign exchange on an intercompany note receivable from our Brazilian subsidiary, which is recorded within “Cost of products sold”.

Three Months Ended June 30, 2025:
In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$181 $207 $419 $807 
Intersegment sales— (13)— (13)
Net sales181 194 419 794 
Less:
Cost of products sold and other168 125 288 581 
Maintenance outages28 20 18 66 
Economic downtime— — — — 
Selling and administrative expenses15 23 34 72 
Depreciation, amortization and cost of timber harvested8 23 14 45 
Add:
Other special items, net (a)
— (1)1 — 
Business Segment Operating Profit (Loss)
$(38)$2 $66 $30 
Net income (loss)
$15 
Income tax provision (benefit)5 
Interest expense, net
10 
Corporate special items, net (a)
— 
Other special items, net (a)
— 
Business Segment Operating Profit$30 
(a) See table below for the effects of special items.
Six Months Ended June 30, 2025:
In millions
EuropeLatin AmericaNorth AmericaTotal
Sales$371 $406 $857 $1,634 
Intersegment sales— (19)— (19)
Net sales371 387 857 1,615 
Less:
Cost of products sold and other347 253 617 1,217 
Maintenance outages40 21 32 93 
Economic downtime— — 3 3 
Selling and administrative expenses30 44 71 145 
Depreciation, amortization and cost of timber harvested16 41 28 85 
Add:
Other special items, net (a)
— — 2 2 
Business Segment Operating Profit (Loss)
$(62)$28 $108 $74 
Net income (loss)
$42 
Income tax provision (benefit)11 
Interest expense, net
19 
Corporate special items, net (a)
— 
Other special items, net (a)
2 
Business Segment Operating Profit$74 
(a) See table below for the effects of special items.

Effects of Net Special Items Expense (Income)
Three Months Ended June 30,Six Months Ended June 30,
In millions2026202520262025
Professional and legal fees
$4 $— $4 $— 
Other charges— — 1 — 
Corporate special items4 — 5 — 
Georgetown mill offtake termination— 1 — 2 
Brazil environmental reserve adjustment(1)— (1)1 
Brazil foreign value-added tax refund— (1)— (1)
Other special items, net(1)— (1)2 
Net special items expense (income)$3 $— $4 $2 
Assets
In millions
June 30, 2026December 31, 2025
Europe
$482 $500 
Latin America
1,279 1,231 
North America
973 884 
Corporate and other141 148 
Assets
$2,875 $2,763 

Capital Spending
Six Months Ended June 30,
In millions
20262025
Europe
$8 $22 
Latin America
49 62 
North America
53 30 
Capital Spending
$110 $114