International Paper quarterly loss widens as readies DS Smith spin-off

International Paper Co on Wednesday reported a widened loss in the third quarter, largely due to a non-cash goodwill impairment of its European business, which it is preparing to spin off as a separate company.

The Packing Solutions EMEA business of International Paper is the result of the Memphis, Tennessee-based company's acquisition of London-based peer DS Smith PLC just two years ago. The newly independent company will once again be named DS Smith PLC.

International Paper on Wednesday said it has made "significant progress" preparing the separation. The DS Smith leadership team will hold a capital markets day in London on November 3, it said, and International Paper itself will no longer include Packaging Solutions EMEA in its own financial guidance.

International Paper reported a net loss of USD1.13 billion in the three months that ended September 30, widened from USD1.10 billion a year before. This was due to a USD1.38 billion impairment of goodwill, representing a write-down of the value of the EMEA business. International Paper had bought DS Smith at an enterprise value of £7.8 billion in 2024.

Revenue was mostly steady in the third quarter at USD6.20 billion, compared to USD6.22 billion a year before, while expenses also were steady and depreciation expense was nearly halved.

Basic and diluted loss per share both were USD2.13, widened from USD2.09 a year before.

Operating profit for the Packaging Solutions North America business was USD427 million, swung from a USD166 million loss a year before, while the Packaging Solutions EMEA business suffered an operating loss of USD73 million, widened from USD58 million.

International Paper guided for USD460 million to USD500 million in operating profit for the North America business in the fourth quarter and USD1.3 billion to USD1.4 billion for this continuing business for all of 2026.

International Paper shares were up 2.0% to 2,545.00 pence on Wednesday afternoon in London. It has a market capitalisation of £13.21 billion.

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