International Paper reported a net loss from continuing operations in 2025, largely driven by non-cash impairment and restructuring charges, while maintaining solid operating cash generation and issuing a higher adjusted EBITDA outlook for 2026.
For the full year ended December 31, 2025, the company posted net sales of $23.63 billion, compared with $15.84 billion in 2024. Loss from continuing operations totaled $2.84 billion, reflecting a $2.47 billion pre-tax, non-cash goodwill impairment, primarily related to its EMEA packaging activities, alongside $960 million in accelerated depreciation and $630 million in restructuring charges.
Despite the reported loss, adjusted EBITDA from continuing operations reached $2.98 billion, nearly doubling year over year. Operating activities generated $1.70 billion in cash, while free cash flow for the year stood at $(160) million, impacted by restructuring and asset rationalization actions.
Fourth-Quarter Performance
In the fourth quarter of 2025, International Paper reported net sales of $6.01 billion and a loss from continuing operations of $2.36 billion. The quarter included the same $2.47 billion goodwill impairment charge, as well as restructuring costs and accelerated depreciation linked to mill closures and portfolio adjustments.
Adjusted EBITDA for the quarter reached $758 million, up sharply from $443 million a year earlier. Cash provided by operating activities totaled $905 million, while free cash flow amounted to $255 million.
Segment Results
Packaging Solutions North America generated $15.18 billion in full-year net sales, with segment operating profit of $572 million. Results reflected lower volumes in non-strategic markets, partially offset by pricing gains and cost-reduction initiatives.
Packaging Solutions EMEA recorded $8.45 billion in net sales for the year and a segment operating loss of $236 million, as softer demand and acquisition-related depreciation weighed on profitability.
2026 Financial Targets
Looking ahead, International Paper issued 2026 adjusted EBITDA guidance of $3.5 billion to $3.7 billion from continuing operations. First-quarter adjusted EBITDA is expected to range between $740 million and $760 million.
Management said the outlook reflects anticipated progress on commercial initiatives and structural cost reductions, while excluding potential pricing actions and the financial impact of recent severe winter weather in the United States.
The company expects to finalize its full-year 2025 results with the filing of its Form 10-K on February 26, 2026.
International Paper is a global provider of sustainable packaging solutions, serving customers across North America, Europe, the Middle East and Africa. The company focuses primarily on corrugated packaging and packaging solutions designed to strengthen supply chains and support customer sustainability goals. International Paper is listed on the New York Stock Exchange (IP) and the London Stock Exchange (IPC).
Source: International Paper
