stockrowWhat it does
International Paper makes fiber-based packaging used to protect, ship and display goods. It produces containerboard, the paper material used to make corrugated packaging, and converts it into products such as boxes, bulk bins, shipping containers and specialty packaging. Its customers include businesses in food and beverage, agriculture, industrial manufacturing, personal care, pharmaceuticals, consumer goods and e-commerce.
The company operates mills that make packaging paper, plants that convert paper into packaging, and recycling facilities. Its manufacturing operations span North America, Latin America, Europe and North Africa. In the United States, it operated 15 packaging mills, 159 converting and packaging plants and 15 recycling plants as of the filing date. Its facilities in Europe, North Africa and Latin America included 14 containerboard mills, 159 converting and packaging plants and 20 recycling plants.
International Paper sells to end users and other converters directly, as well as through agents, resellers and distributors. Its two operating segments are Packaging Solutions North America and Packaging Solutions EMEA, which covers Europe, the Middle East and Africa.
The company traces its founding to 1898 and is headquartered in Boston. Andrew K. Silvernail is its chief executive officer and board chair. International Paper acquired DS Smith in 2025 and is preparing to separate its EMEA packaging business while also evaluating a potential sale.
How it makes money
International Paper earns revenue by selling containerboard and finished packaging. Containerboard includes linerboard and medium, which form the layers of corrugated packaging, as well as grades such as whitetop and saturating kraft. Its converting plants turn the material into boxes and other packaging for customers’ shipping, storage and display needs. The company also sells products to other converters.
The business is organized into Packaging Solutions North America and Packaging Solutions EMEA. In 2025, North America segment revenue was $15.2 billion and EMEA segment revenue was $8.5 billion. Approximately 75% of the company’s production is converted into corrugated and other packaging by its North American corrugated packaging plants. In EMEA, operations include containerboard mills, corrugated packaging plants and recycling plants.
In 2025, net sales were $23.63 billion; in Q3 2026, adjusted EBITDA was $843 million.
The amount the company earns depends on sales volumes, prices and the mix of products sold, as well as manufacturing, raw material, energy and freight costs. Some pricing terms are written into customer contracts, while other prices are not. International Paper said that previously published price increases contributed to its sequential revenue improvement in the third quarter of 2026, while softer demand weighed on sales in EMEA.
The company uses operating cash flow to fund working capital and capital spending. In 2025, cash provided by operating activities was $1.70 billion, while free cash flow was negative. The company defines free cash flow as cash provided by operations less capital expenditures.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Packaging Solutions North America | $15.2 billion | 64.2% | 6.17% |
| Packaging Solutions EMEA Segment | $8.5 billion | 35.8% | 523.7% |
Customers and how it sells
International Paper serves businesses that need packaging for industrial and consumer goods. Its products are used across food and beverage, agriculture, industrial manufacturing, personal care, pharmaceuticals and other consumer goods. Demand is also linked to e-commerce and to products including processed foods, poultry and meat.
The company sells directly to end users and converters, and also reaches customers through agents, resellers and distributors. Its regional design centers support North American corrugated packaging plants with packaging solutions and supply-chain initiatives.
In 2025, United States revenue was $14.4 billion, or 61.1% of revenue. EMEA revenue was $8.5 billion, or 35.8% of revenue. Americas, other than U.S. revenue was $713.0 million, and Pacific Rim and Asia revenue was $31.0 million. These are geographic revenue figures, distinct from the company’s segment results.
The acquisition of DS Smith expanded International Paper’s reach across North America and EMEA. The company is preparing to separate the EMEA business, which would change the geographic composition of the remaining company. It is also evaluating a potential sale of that business. No individual customer is named in the supplied business description.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $14.4 billion | 61.1% | 5.50% |
| EMEA | $8.5 billion | 35.8% | 523.7% |
| Americas, other than U.S. | $713.0 million | 3.02% | −2.33% |
| Pacific Rim and Asia | $31.0 million | 0.13% | −51.6% |
Suppliers and costs
International Paper’s essential raw materials include wood fiber, mainly purchased as pulpwood, wood chips and old corrugated containers. It also uses chemicals including caustic soda, starch and adhesives. Its recycling plants process recovered paper, while its mills make containerboard for conversion into packaging. The company uses biomass and manufacturing residuals to generate a majority of the manufacturing energy at its mills.
Profitability depends on the costs of raw materials, energy and freight, as well as mill outages, manufacturing efficiency and product mix. In the third quarter of 2026, higher diesel, old corrugated container and energy costs increased North American input costs. In EMEA, higher energy costs were a source of input-cost pressure, and higher paper costs pressured box margins.
The company spent approximately $1.9 billion on capital expenditures in 2025. Its investments have included mill and plant improvements, equipment and new facilities. It has also closed mills and plants and reduced higher-cost capacity as part of its operating changes.
- Revenue$23.6B
- Cost of revenue−$16.6B
- Selling, general and administrative−$4.1B
- Other operating costs−$2.7B
- Operating income$200.0M
Competitive position
International Paper operates in a large, fragmented packaging sector. It competes against similar products from other forest-products companies and, in some cases, against companies in other industries and substitutes for wood-fiber products. Price, cost, product quality and service influence its competitive position. No competing company is named in the available competition description.
The company’s mills, converting plants and recycling facilities give it a manufacturing network across several regions. In North America, it converts much of its containerboard production into packaging through its own plants, supported by regional design centers. International Paper also acquired DS Smith, expanding its reach in North America and EMEA.
Our reading: The combination of paper production, converting plants and design services provides a meaningful operating base, but it does not remove exposure to competitors selling similar products. Our reading: The scale of that network may support customer service and supply, although high capital spending and a cyclical industry limit its strength as a barrier to competition.
International Paper says it aims to improve its cost position and customer experience through its 80/20 operating system. It also protects intellectual property through patents, trademarks, trade secrets and other legal protections. Our reading: Those protections support the business, but the available evidence does not establish that they give it a broad advantage over competing packaging materials.
Growth opportunities
International Paper’s growth plans include investment in packaging facilities, productivity and customer service. The company announced plans for two new plants in 2025 and has used its 80/20 operating system to simplify operations, direct resources toward selected customers and products, and reduce costs. It also intends to reinvest in its packaging business following the sale of Global Cellulose Fibers in January 2026.
The 2025 acquisition of DS Smith expanded the company’s geographic reach. By year-end 2025, International Paper had executed approximately $710 million of full run-rate cost-out actions, including benefits from the combination. The company also closed facilities and exited some markets as it adjusted capacity and concentrated on packaging.
In 2026, the completed Riverdale machine conversion began contributing to results as production ramped up. International Paper said previously won business from both large and small customers was contributing to market-share gains. It expects to outpace industry demand by approximately two percentage points for the full year, although it expects current market conditions to persist into 2027.
The company is preparing a separation of its EMEA business and evaluating a potential sale in parallel. If it proceeds with a spinoff, International Paper plans to retain approximately a 20% stake in the independent company, DS Smith. The company expects the separation to allow the regional businesses to tailor their strategies and investments to their markets.
- $19.4BFY2021
- $21.2BFY2022
- $16.0BFY2023
- $15.8BFY2024
- $23.6BFY2025
Structural risks
- Demand and pricing: The company’s businesses experience cycles related to industry capacity and economic conditions. Changes in customer preferences and competition can affect demand and put downward pressure on packaging prices.
- Input costs: Changes in the cost or availability of wood fiber, energy and transportation can affect profitability. In the third quarter of 2026, higher energy and paper costs pressured the EMEA business, while higher diesel and recovered-paper costs affected North America.
- Separation and integration: The proposed EMEA separation may not be completed on the contemplated timeline or at all. International Paper also may not achieve the expected benefits of transactions or cost savings from restructuring, including its 80/20 initiatives.
- Debt and cash requirements: The level of indebtedness could affect the company’s financial condition and ability to operate. Its cash generation is sensitive to packaging prices and demand, while mills and plants require capital investment.
- Regulation and operations: Environmental, labor and other requirements can change, and compliance or failure to comply can affect results. Manufacturing disruptions, cybersecurity incidents and difficulties retaining qualified personnel can also affect operations.
Bottom line
Our reading
International Paper is a manufacturing business that makes packaging paper and converts much of it into boxes and other products for business customers. Its mill and plant network supports that model, but earnings and cash generation remain exposed to demand, pricing, input costs and capital spending. The proposed EMEA separation or sale could change the company’s geographic footprint, while its completion and ultimate structure remain uncertain.