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BUSINESS SEGMENT INFORMATION
 9 Months Ended
Sep. 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 is 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 and nine months ended September 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 September 30, 2026
In millionsPS NAPS EMEATotal
Net sales from external customers$3,867 $2,280 $6,147 
Intersegment sales13 — 13 
3,880 2,280 6,160 
Other external sales50 
Elimination of intersegment sales(13)
Total Net Sales6,197 
Less:
Cost of products sold2,526 1,666 
Selling and administrative expenses335 154 
Depreciation and amortization242 283 
Distribution expenses319 241 
Other segment items (a)31 9 
Business Segment Operating Profit (Loss)427 (73)354 
Interest Expense, net96 
Adjustment for less than wholly owned subsidiaries (b)— 
Corporate expenses, net37 
Net special items (i)1,430 
Non-operating pension (income) expense(15)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$(1,194)
(i)Includes an impairment charge of $1.4 billion for the non-cash impairment of goodwill in our PS EMEA business, a charge of $65 million for costs associated with the strategic separation of our PS EMEA packaging business, a gain of $30 million for the sale of assets at our permanently closed Compton, California box plant, a charge of $2 million for transaction costs for the NORPAC acquisition, a charge of $9 million for restructuring
charges related to resource and asset realignment and a charge of $7 million for other items.

Nine Months Ended September 30, 2026
In millionsPS NAPS EMEATotal
Net sales from external customers$11,134 $6,889 $18,023 
Intersegment sales60 1 61 
11,194 6,890 18,084 
Other external sales149 
Elimination of intersegment sales(61)
Total Net Sales18,172 
Less:
Cost of products sold7,641 5,065 
Selling and administrative expenses1,002 482 
Depreciation and amortization698 804 
Distribution expenses880 715 
Other segment items (a)94 28 
Business Segment Operating Profit (Loss)879 (204)675 
Interest Expense, net259 
Adjustment for less than wholly owned subsidiaries (b)(1)
Corporate expenses, net72 
Net special items (i)1,521 
Non-operating pension (income) expense(49)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$(1,127)

(i)Includes an impairment charge of $1.4 billion for the non-cash impairment of goodwill in our PS EMEA business, a charge of $119 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 gain of $30 million for the sale of assets at our permanently closed Compton, California box plant, a charge of $7 million for transaction costs for the NORPAC acquisition, a charge of $47 million for restructuring charges related to resource and asset realignment, and a charge of $18 million for other items.

Three Months Ended September 30, 2025
In millionsPS NAPS EMEATotal
Net sales from external customers$3,859 $2,310 $6,169 
Intersegment sales39 — 39 
3,898 2,310 6,208 
Other external sales53 
Elimination of intersegment sales(39)
Total Net Sales6,222 
Less:
Cost of products sold2,582 1,721 
Selling and administrative expenses335 134 
Depreciation and amortization831 267 
Distribution expenses287 235 
Other segment items (a)29 11 
Business Segment Operating Profit (Loss)(166)(58)(224)
Interest Expense, net85 
Adjustment for less than wholly owned subsidiaries (b)(1)
Corporate expenses, net17 
Net special items (i)354 
Non-operating pension (income) expense(4)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$(675)

(i)Includes a charge of $38 million for transaction and other costs related to the DS Smith acquisition, a charge of $135 million for costs related to the
closure of our Savannah containerboard mill, a charge of $95 million related to the closure of our Riceboro containerboard mill, a charge of $31 million for the impairment of assets and a net charge of $55 million for other items.

Nine Months Ended September 30, 2025
In millionsPS NAPS EMEATotal
Net sales from external customers$11,330 $6,151 $17,481 
Intersegment sales130 — 130 
11,460 6,151 17,611 
Other external sales147 
Elimination of intersegment sales(130)
Total Net Sales17,628 
Less:
Cost of products sold7,846 4,567 
Selling and administrative expenses957 381 
Depreciation and amortization1,480 569 
Distribution expenses834 621 
Other segment items (a)90 26 
Business Segment Operating Profit (Loss)253 (13)240 
Interest Expense, net277 
Adjustment for less than wholly owned subsidiaries (b)(2)
Corporate expenses, net74 
Net special items (i)611 
Non-operating pension (income) expense(6)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss)$(714)

(i)     Includes a charge of $314 million for transaction and other costs related to the DS Smith acquisition, a charge of $85 million for severance and other costs related to the closure of our Red River containerboard mill in Campti, Louisiana, a net gain of $51 million related to the sale of EMEA plants, a net gain of $67 million related to the sale of fixed assets primarily associated with our permanently closed Orange, Texas containerboard mill, a charge of $135 million for costs related to the closure of our Savannah containerboard mill, a charge of $95 million for costs related to the closure of our Riceboro containerboard mill, a charge of $31 million for the impairment of assets and a net charge of $69 million for other items.

Assets
In millionsSeptember 30, 2026December 31, 2025
PS NA$17,776 $16,498 
PS EMEA13,866 15,439 
Corporate and other (c)3,995 6,027 
Assets$35,637 $37,964 

Capital Expenditures
In millionsSeptember 30, 2026September 30, 2025
PS NA$1,211 $720 
PS EMEA390 362 
Subtotal1,601 1,082 
Corporate and other (d)55 125 
Capital Expenditures$1,656 $1,207 

(a)Other segment items include 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 are 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.