The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in "Financial Statements and Supplementary Data" of this Quarterly Report on Form 10-Q (this "Form 10-Q") and the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (our "Annual Report"). In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs that involve significant risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to those differences include those discussed below and in our Annual Report and subsequent quarterly reports, particularly under "Risk Factors" and "Forward-Looking Statements" of this Form 10-Q. Please see our "Cautionary Statement Regarding Forward-Looking Statements" below.
EXECUTIVE SUMMARY
Second Quarter 2026 Financial Summary
•Net sales of $6 billion
•Loss from continuing operations of $12 million
•Adjusted EBITDA (non-GAAP) from continuing operations of $587 million (1)
•Cash provided by operating activities of $1.14 billion (2)
•Free cash flow (non-GAAP) of $87 million (1) (2)
(1) See "Non-GAAP Financial Measures" for a list of our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures.
(2) Reflects amounts for the six months ended June 30, 2026, rather than the second quarter.
Overview
The Company’s second quarter results reflect continued progress against the strategic priorities of improving execution, enhancing reliability, optimizing the cost structure, and investing in our most competitive assets. Operational performance improved across the enterprise despite a significant planned maintenance outage schedule in North America and a challenging demand environment in portions of Europe.
In North America, adjusted EBITDA was sequentially lower, but better than expected as the Company continued to benefit from commercial initiatives focused on customer engagement and market share growth. Sales volumes were higher, reflecting continued strength in our domestic business, seasonal demand patterns, and the favorable impact of one additional shipping day. Our box shipments increased approximately 1.7% on a daily basis compared with the prior year period, reflecting continued success in winning and retaining customer business. Margins improved due to faster realization of previously announced pricing actions and a more favorable product mix associated with lower export sales. Operating costs were slightly improved due to stronger mill performance, additional Ixtac insurance recoveries and the non-repeat of winter storm impacts in the first quarter. These benefits were mostly offset by costs of the Riverdale paper machine conversion and other planned reliability spending. Our mill system continued to improve with capacity utilization up approximately 5% versus 2025, reflecting the benefits of reliability initiatives, operational discipline, and ongoing investments. Planned maintenance outage spending was exceptionally heavy during the second quarter as expected, reflecting the year's peak outage spending period. Input costs were favorably impacted by the non-repeat of higher natural gas and utility costs resulting from the winter storm in the first quarter, partially offset by higher recovered fiber and freight costs.
In EMEA, adjusted EBITDA was sequentially lower, but better than expected, despite a challenging macroeconomic environment. Sales volumes declined modestly, reflecting continued softness in market demand amid ongoing geopolitical uncertainty and subdued consumer sentiment. Margins were lower as higher paper prices compressed packaging margins. Higher oil prices remained a headwind to distribution costs; however, accelerated cost-out actions helped offset a portion of the impact. Energy costs were lower while old corrugated container (“OCC”) costs remained elevated over the first quarter.
Looking ahead, we expect adjusted EBITDA to be sequentially higher in the third quarter across both regions. In North America, significantly lower planned maintenance outage spending and improved margins driven by continued realization of previously announced pricing actions are expected to offset lower export sales volumes, higher input costs and the impact of the temporary suspension of operations at our Pine Hill, Alabama mill. In EMEA, improved margins driven by higher paper and box prices, higher seasonal volumes, and ongoing cost reduction initiatives are expected to offset higher energy costs.
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Recent Strategic Portfolio Actions
International Paper executed several important strategic milestones during the second quarter of 2026.
PS NA
On June 4, 2026, we completed the acquisition of North Pacific Paper Company (“NORPAC”), a portfolio company of One Rock Capital Partners, for $368 million, subject to post-closing adjustments. Located in Longview, Washington, NORPAC enhances International Paper's ability to serve growing demand for lightweight, high-performance packaging grades, improves service levels for customers on the West Coast, and strengthens our overall system position. Shortly before closing, a tragic industrial accident occurred at the adjacent Nippon Dynawave Packaging facility resulting in multiple fatalities and injuries. The mill’s production was temporarily slowed during the investigation as the mill is partially reliant on the Nippon facility for certain utilities. We responded quickly to address the reduced steam supply from their facility and mill operations have returned to pre-incident levels.
We also completed the conversion of the No. 16 paper machine at our Riverdale Mill in Selma, Alabama, from producing uncoated freesheet paper to manufacturing containerboard. This $250 million investment is an important step in optimizing our manufacturing footprint, improving mill reliability and better servicing customers. We expect the machine to continue ramping up production throughout the remainder of the year and reach full operating capacity by first quarter 2027.
PS EMEA
The Company continues to execute strategic capital projects designed to enhance the efficiency, competitiveness, and long-term growth profile of our packaging operations.
At our mill in Lucca, Italy, we are modernizing the recycled containerboard platform through the replacement of an existing paper machine with a new lightweight machine. The investment is expected to improve fiber yield, reduce energy consumption, and enhance the mill's sustainability performance while increasing overall operating efficiency. The project is expected to strengthen our ability to serve our integrated converting network and remains on track for startup during the third quarter.
In Germany, we are advancing our cost optimization strategy by consolidating production volumes from smaller facilities into a more modern and efficient plant. This initiative is consistent with our lighthouse operating model in North America and is expected to maintain overall production capacity while improving asset utilization, reducing fixed costs, and enhancing our competitive cost position.
In Romania, we are expanding capacity within an existing operation to support customer demand and capture growth opportunities in Eastern Europe. The region continues to represent one of the fastest-growing markets within our portfolio, and the investment is expected to enhance our ability to serve customers while supporting long-term volume growth.
These strategic portfolio actions reflect the Company's ongoing efforts to strengthen its packaging network, better serve strategic customers, enhance efficiency, and support long-term value creation.
Macroeconomic and Market Conditions
We continue to operate in a dynamic macroeconomic and geopolitical environment. While industry demand in North America appeared stable, demand in EMEA remained subdued reflecting cautious consumer sentiment amid ongoing economic uncertainty. Continuing tensions and instability in the Middle East contributed to volatility in oil prices, resulting in higher diesel costs. As a result, the Company incurred higher costs to transport products to customers and procure certain key manufacturing inputs, such as OCC, in both regions. In response, we remain focused on disciplined logistics management by increasing trailer fill rates, consolidating shipments and optimizing our supply chain planning.
Strategies such as this are designed to help manage exposure to cost-related conditions. Persistent fluctuations driven by geopolitical conflict, evolving trade policies, and persistent economic pressures may have a material adverse effect on our consolidated results of operations, cash flows, or financial condition.
Update on Strategic Separation of EMEA Packaging Business
Management continues to make steady progress on its plans to separate the North America and EMEA packaging operations into two independent, publicly traded companies. Under the plan for separation, International Paper will be comprised of its current business in North America including both legacy IP and DS Smith assets, and the EMEA packaging business comprised
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of both legacy DS Smith and IP assets. The Company expects that creating two regionally focused businesses will allow each to tailor strategies to their distinct markets, enhance management focus, and support long-term value creation.
During the second quarter, the Company advanced the strategic separation workstream with readiness activities. The separation is expected to be structured as a spinoff, with International Paper retaining a meaningful ownership stake of approximately 20 percent. The EMEA packaging business is expected to be listed on both the London Stock Exchange and the New York Stock Exchange.
The transaction is expected to be completed within 12 to 15 months from the announcement date, subject to customary approvals, including final approval by IP’s Board of Directors, filing and effectiveness of a registration statement with the U.S. SEC and publication of a prospectus approved by the U.K. Financial Conduct Authority.
Business Update
At the end of June 2026, the Company temporarily suspended operations at its Pine Hill, Alabama mill to complete repairs following roof damage caused by a weather event. The Company is taking actions to mitigate any potential impact of this event on customers and expects to resume manufacturing operations in August 2026.
NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures presented in this Form 10-Q as referenced below have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies utilize identical calculations, the Company's presentation of non-GAAP financial measures in this Form 10-Q may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as the Company. Users are cautioned not to place undue reliance on any non-GAAP financial measures presented in this Form 10-Q.
Below are the Company’s key non‑GAAP financial measures and their definitions:
Adjusted operating earnings (loss) and adjusted operating earnings (loss) per share are defined as earnings (loss) from continuing operations (a GAAP measure) excluding net special items and non-operating pension expense (income). Earnings (loss) from continuing operations and diluted earnings (loss) from continuing operations per share are the most directly comparable GAAP measures. The Company calculates adjusted operating earnings (loss) by excluding the after-tax effect of non-operating pension expense (income) and net special items, as described in greater detail below, from earnings (loss) from continuing operations reported under GAAP. Adjusted operating earnings (loss) per share is calculated by dividing adjusted operating earnings (loss) by diluted average shares of common stock outstanding. Management uses these non-GAAP financial measures to focus on ongoing operations and believes that such non-GAAP financial measures are useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. The Company believes that these non-GAAP financial measures, viewed alongside the most directly comparable GAAP measures, provides for a more complete analysis of the Company's results of operations.
Adjusted EBITDA from continuing operations is defined as earnings (loss) from continuing operations (a GAAP measure) before income taxes and equity earnings (loss), interest expense, net, net special items, non-operating pension expense (income) and depreciation and amortization. Earnings (loss) from continuing operations is the most directly comparable GAAP measure. Management uses this measure to focus on on-going operations and believes this measure is useful to investors. Management uses this non-GAAP financial measure to focus on on-going operations and believes this measure is useful to investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations. The Company believes that adjusted EBITDA from continuing operations, viewed alongside the most directly comparable GAAP measure, provides for a more complete analysis of the Company's results from continuing operations.
Free cash flow is defined as cash provided by (used for) operations less capital expenditures, and the most directly comparable GAAP measure is cash provided by (used for) operations. Management believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures.
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Operational income tax provision and operational effective income tax rate are calculated by adjusting the earnings (loss) from continuing operations before income taxes and equity earnings (loss), income tax provision (benefit) and rate to exclude net special items and non-operating pension expense (income). The most directly comparable GAAP measures are the reported income tax provision and effective income tax rate, respectively. Management believes that this presentation provides useful information to investors by providing a meaningful comparison of the income tax rate between past and present periods.
Below are reconciliations of the non‑GAAP financial measures noted above to their most directly comparable GAAP measures:
Non-operating pension expense (income) represents amortization of prior service cost, amortization of actuarial gains/losses, expected return on assets and interest cost. The Company excludes these amounts from our adjusted operating earnings (loss) as the Company does not believe these items reflect ongoing operations. These particular pension cost elements are not directly attributable to current employee service. The Company includes service cost in our non-GAAP measure as it is directly attributable to employee service, and the corresponding employees’ other compensation elements, in connection with ongoing operations.
See Effects of Special Items Expense (Income) for additional detail regarding the net special items expense (income) referenced in the tables below.
Reconciliation of Earnings (loss) from continuing operations to Adjusted operating earnings (loss)
Three Months Ended June 30 Three Months Ended March 31
In millions 2026 2025 2026
Earnings (loss) from continuing operations $ (12) $ 75 $ 76
Add back - Non-operating pension expense (income) (16) (5) (18)
Add back - Net special items expense (income) 54 20 26
Income taxes - Non-operating pension and special items (a) (8) 4 (3)
Adjusted operating earnings (loss) (non-GAAP) $ 18 $ 94 $ 81
(a) For the three months ended June 30, 2026, this amount includes tax expense of $4 million on the non-operating pension income and a tax benefit of $12 million associated with special items. The three months ended June 30, 2025 includes tax expense of $1 million on the non-operating pension income and tax expense of $3 million associated with special items. For the three months ended March 31, 2026 includes tax expense of $4 million on the non-operating pension income and tax benefit of $7 million associated with special items.
Reconciliation of Earnings (loss) from continuing operations to Adjusted operating earnings (loss) on a per share basis
Three Months Ended June 30 Three Months Ended March 31
2026 2025 2026
Diluted earnings (loss) per share from continuing operations $ (0.02) $ 0.14 $ 0.14
Add back - Non-operating pension expense (income) per share (0.03) — (0.03)
Add back - Net special items expense (income) per share 0.10 0.04 0.05
Income taxes per share - Non-operating pension and special items (0.01) — (0.01)
Adjusted operating earnings (loss) per share (non-GAAP) $ 0.04 $ 0.18 $ 0.15
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Reconciliation of Earnings (loss) from continuing operations to Adjusted EBITDA from continuing operations
Three Months Ended June 30 Three Months Ended March 31
In millions 2026 2025 2026
Earnings (Loss) from Continuing Operations $ (12) $ 75 76
Add back: Income tax provision (benefit) (15) 40 17
Less: Equity earnings (loss), net of taxes (1) (1) —
Earnings (Loss) from Continuing Operations Before Income Taxes and Equity Earnings (Loss) (26) 116 93
Interest expense, net 87 108 76
Special items 54 20 37
Non-operating pension expense (income) (16) (5) (18)
Depreciation and amortization 488 431 489
Adjusted EBITDA from continuing operations (non-GAAP) $ 587 $ 670 $ 677
Reconciliation of Cash provided by operations to Free cash flow
Six Months Ended June 30
In millions 2026 2025
Cash provided by operations $ 1,137 $ 188
Adjustments:
Capital expenditures (1,050) (752)
Free cash flow (non-GAAP) $ 87 $ (564)
Reconciliation of Income tax provision (benefit) to Operational tax provision (benefit) and the reported effective income tax rate to the operational effective tax rate
Three Months Ended Six Months Ended
June 30 March 31 June 30
In millions (except rates) 2026 2025 2026 2026 2025
Provision (Benefit) Rate Provision (Benefit) Rate Provision (Benefit) Rate Provision (Benefit) Rate Provision (Benefit) Rate
Income tax provision (benefit) and reported effective income tax rate $ (15) 58 % $ 40 34 % $ 17 18 % $ 2 3 % $ 8 (21) %
Income tax effect - non-operating pension (income) expense and special items (8) 4 (3) (11) (39)
Operational tax provision (benefit) and operational effective tax rate (non-GAAP) $ (7) (58) % $ 36 27 % $ 20 20 % $ 13 12 % $ 47 22 %
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Effects of Net Special Items Expense (Income)
Details of net special items expense (income) included in continuing operations for the three months ended are as follows:
Three Months Ended
June 30 March 31
2026 2025 2026
In millions Before Tax After Tax Before Tax After Tax Before Tax After Tax
PS EMEA separation costs $ 43 $ 32 (a) $ — $ — $ 11 $ 8 (a)
Severance and other costs 9 7 (b) 39 34 (b) 23 17 (b)
NORPAC acquisition transaction costs 5 4 (a) — — — —
DS Smith combination costs (benefits) — — 32 29 (a) — —
Net (gains) losses on sales and impairments of businesses (11) (8) (c) (51) (40) (c) — —
Other 8 7 — — 3 2
Total 54 42 20 23 37 27
Interest expense, net
Income tax refund interest — — — — (11) (8) (d)
Interest Total — — — — (11) (8)
Total Net Special Items $ 54 $ 42 $ 20 $ 23 $ 26 $ 19
(a) Transaction, integration and other costs/benefits that the Company believes are not reflective of the Company's underlying operations.
(b) Severance and other costs associated with the Company's 80/20 strategic approach which includes the realignment of resources and mill strategic actions.
(c) Includes the sale of the Company's box plant in Chile and the sale of five European box plants in Mortagne, Saint-Amand and Cabourg (France), Ovar (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection with the DS Smith combination.
(d) Interest income related to an income tax refund.
RESULTS OF OPERATIONS
The following summarizes our results of operations for second quarter of 2026 compared with the second quarter of 2025 and the first quarter of 2026:
Three Months Ended June 30 Three Months Ended March 31 Change Compared to June 30, 2025 Change Compared to March 31, 2026
In millions 2026 2025 2026 $ $
Net sales $ 6,004 $ 6,142 $ 5,971 $ (138) $ 33
Cost of products sold 4,344 4,422 4,244 (78) 100
Selling and administrative expenses 564 525 510 39 54
Depreciation and amortization 488 431 489 57 (1)
Distribution expenses 523 516 513 7 10
Taxes other than payroll and income taxes 42 41 41 1 1
Restructuring charges, net (a) 9 39 23
Net (gains) losses on sales and impairments of businesses (a) (11) (51) —
Interest expense, net 87 108 76 (21) 11
Non-operating pension expense (income) (16) (5) (18)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss) (26) 116 93
Income tax provision (benefit) (15) 40 17
Equity earnings (loss), net of taxes (1) (1) —
Earnings (loss) from continuing operations (12) 75 $ 76
Discontinued operations, net of tax — — $ (16)
Net earnings (loss) $ (12) $ 75 $ 60
Diluted earnings (loss) per share $ (0.02) $ 0.14 $ 0.11
(a) Refer to special items discussion on page 34
Refer to the Effects of Net Special Items Expense (Income) section on page 34 for details of net special items expense (income) discussed below.
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Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
Net sales
The decrease compared to the second quarter of 2025 was primarily driven by lower sales volumes. Additional details on net sales are provided in the Business Segment Operating Results section below.
Cost of products sold
Cost of products sold decreased by $78 million compared to the second quarter of 2025. Second quarter 2026 cost of products sold was impacted by lower raw materials, operating materials and other costs of $254 million, partially offset by higher fuel and utility expense of $162 million compared to the second quarter of 2025.
Selling and administrative expenses
Selling and administrative expenses increased by $39 million compared to the second quarter of 2025. Second quarter 2026 selling and administrative expenses were impacted by increases in professional service fees, offset by decreases in employee compensation and benefit costs compared to the second quarter of 2025. Net special items charges of $56 million and $32 million in the second quarter of 2026 and 2025, respectively, are included in selling and administrative expenses.
Depreciation and amortization
Depreciation and amortization increased by $57 million compared to the second quarter of 2025. Depreciation expense includes accelerated depreciation of $23 million in the second quarter of 2026. Depreciation and amortization expense in the second quarter of 2026 is higher compared to the second quarter of 2025 primarily due to the finalization of acquisition accounting of DS Smith in the second half of 2025.
Distribution expenses
Distribution expenses increased by $7 million compared to the second quarter of 2025. Distribution expense was impacted by higher warehousing expense in the second quarter of 2026 compared to the second quarter of 2025.
Taxes other than payroll and income taxes
Taxes other than payroll and income taxes remained relatively flat in the second quarter of 2026 compared to the second quarter of 2025.
Interest expense, net
Interest expense, net decreased by $21 million compared to the second quarter of 2025, primarily reflecting higher interest income earned on increased average cash balances and higher capitalized interest.
Income tax provision (benefit)
A net income tax benefit from continuing operations of $15 million was recorded in the second quarter of 2026 and the reported effective income tax rate was 58%. Excluding a $12 million net tax benefit for other special items and $4 million tax expense related to non-operating pension income, the operational tax benefit (non-GAAP) for the second quarter of 2026 was $7 million, or (58)% of pre-tax earnings before equity earnings.
A net income tax provision from continuing operations of $40 million was recorded for the second quarter of 2025 and the reported effective income tax rate was 34%. Excluding $3 million net tax expense for other special items and $1 million tax expense to non-operating pension income, the operational tax provision (non-GAAP) for the second quarter of 2025 was $36 million, or 27% of pre-tax earnings before equity earnings.
Refer to "Non-GAAP Financial Measures" for a reconciliation of the net income tax provision (benefit) (GAAP) to the operational income tax provision (benefit) (non-GAAP) and the reported effective income tax rate (GAAP) to the operational effective income tax rate (non-GAAP).
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Discontinued Operations, Net of Tax
On January 23, 2026, the Company completed the sale of its GCF business to AIP. See Note 9 - Divestitures of Condensed Notes to Consolidated Financial Statements for further details.
Discontinued operations for the second quarter of 2025 includes the operating earnings of the GCF business. Discontinued operations also includes net special items expense of $15 million for the second quarter 2025.
Three Months Ended June 30, 2026 Compared to the Three Months Ended March 31, 2026
Net sales
The increase in the second quarter of 2026 compared to the first quarter of 2026 was primarily driven by higher sales prices. Additional details on net sales are provided in the Business Segment Operating Results section below.
Cost of products sold
Cost of products sold increased by $100 million compared to the first quarter of 2026. The increase compared to the first quarter of 2026 was driven by higher maintenance and other costs of $129 million as well as increases in raw materials and operating materials of $37 million, partially offset by decreases in fuel and utility expense of $66 million.
Selling and administrative expenses
Selling and administrative expenses increased by $54 million compared to the first quarter of 2026. Compared to the first quarter of 2026, there were increases in administrative and other expenses offset by incentive compensation and medical costs. Net special items charges of $56 million and $14 million in the second quarter of 2026 and first quarter of 2026, respectively, are included in selling and administrative expenses.
Depreciation and amortization
Depreciation and amortization remained relatively flat compared to the first quarter of 2026. Depreciation expense includes accelerated depreciation of $23 million in the second quarter of 2026 compared to $16 million in the first quarter of 2026 associated with our site closures.
Distribution expenses
Distribution expenses increased by $10 million compared to the first quarter of 2026. The increase compared to the first quarter of 2026 was primarily driven by higher freight expense.
Taxes other than payroll and income taxes
Taxes other than payroll and income taxes were relatively flat in the second quarter of 2026 compared to the first quarter of 2026.
Interest expense, net
Interest expense, net increased by $11 million compared to the first quarter of 2026. Net special items interest income of $11 million is included in interest expense, net in the first quarter of 2026.
Income tax provision (benefit)
A net income tax provision from continuing operations of $17 million was recorded for the first quarter of 2026 and the reported effective income tax rate was 18%. Excluding a $7 million net tax benefit for other special items and $4 million tax expense related to non-operating pension income, the operational tax provision (benefit) (non-GAAP) for the first quarter of 2026 was $20 million, or 20% of pre-tax earnings before equity earnings.
Refer to "Non-GAAP Financial Measures" for a reconciliation of the net income tax provision (benefit) (GAAP) to the operational income tax provision (benefit) (non-GAAP) and the reported effective income tax rate (GAAP) to the operational effective income tax rate (non-GAAP).
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Discontinued Operations, Net of Tax
Discontinued operations for the first quarter of 2026 includes the operating earnings of the GCF business. Discontinued operations also includes net special items expense of $3 million and non-operating pension expense of $19 million for the first quarter 2026.
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
The following summarizes our results of operations for the six months ended June 30, 2026 compared with the six months ended June 30, 2025:
Six Months Ended June 30 Change
In millions 2026 2025 $
Net sales $ 11,975 $ 11,406 $ 569
Cost of products sold 8,588 8,227 361
Selling and administrative expenses 1,074 1,012 62
Depreciation and amortization 977 951 26
Distribution expenses 1,036 933 103
Taxes other than payroll and income taxes 83 128 (45)
Restructuring charges, net 32 122 (90)
Net (gains) losses on sales and impairments of businesses (11) (51) 40
Net (gains) losses on sales and impairments of assets — (67) 67
Interest expense, net 163 192 (29)
Non-operating pension expense (income) (34) (2)
Earnings (loss) from continuing operations before income taxes and equity earnings (loss) 67 (39)
Income tax provision (benefit) 2 8
Equity earnings (loss), net of taxes (1) (2)
Earnings (loss) from continuing operations 64 (49)
Discontinued operations, net of tax (16) 19
Net earnings (loss) $ 48 $ (30)
Diluted earnings (loss) per share $ 0.09 $ (0.06)
Net sales
Net sales increased by $569 million compared to the six months ended June 30, 2025, primarily due to higher sales prices. Six months of DS Smith activity is included in 2026 compared to five months in 2025.
Cost of products sold
Cost of products sold increased by $361 million compared to the six months ended June 30, 2025. Six months of DS Smith activity is included in 2026 ($3.1 billion) compared to five months in 2025 ($2.6 billion). For IP Legacy, there were decreases in maintenance and other costs of $82 million and increases in raw materials and operating materials of $29 million. Net special items charges of $70 million are included in cost of products sold for the six months ended June 30, 2025.
Selling and administrative expenses
Selling and administrative expenses increased by $62 million compared to the six months ended June 30, 2025. Six months of DS Smith activity is included in 2026 ($243 million) compared to five months in 2025 ($203 million). For IP Legacy, compared to the six months ended June 30, 2025, there were increases in professional service fees as well as employee benefit costs. Net special items charges of $70 million and $133 million for the six months ended June 30, 2026 and 2025, respectively, are included in selling and administrative expenses.
Depreciation and amortization
Depreciation and amortization increased by $26 million compared to the six months ended June 30, 2025. Six months of DS Smith activity is included in 2026 ($524 million) compared to five months in 2025 ($320 million). Depreciation expense
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includes accelerated depreciation of $39 million for the six months ended June 30, 2026 compared to $197 million for the six months ended June 30, 2025 associated with our site closures.
Distribution expenses
Distribution expenses increased by $103 million compared to the six months ended June 30, 2025. Six months of DS Smith activity is included in 2026 ($449 million) compared to five months in 2025 ($372 million). For IP Legacy, the increase compared to the six months ended June 30, 2025 was primarily driven by higher freight and warehousing expense.
Taxes other than payroll and income taxes
Taxes other than payroll and income taxes decreased by $45 million compared to the six months ended June 30, 2025. Six months of DS Smith activity is included in 2026 ($19 million) compared to five months in 2025 ($15 million). Net special items charges of $50 million are included in taxes other than payroll and income taxes in the six months ended June 30, 2025 for a UK stamp tax associated with the DS Smith combination.
Restructuring charges, net
Restructuring charges, net of $32 million and $122 million were included in net special items expense (income) for the six months ended June 30, 2026 and 2025, respectively, for severance and other costs related to our mill closures and 80/20 strategic actions.
Net (gains) losses on sales and impairments of businesses
Net (gains) losses on sales and impairments of businesses of $(11) million were included in net special items expense (income) for the six months ended June 30, 2026 related to the completed sale of our box plant in Chile.
Net (gains) losses on sales and impairments of businesses of $(51) million were included in net special items expense (income) for the six months ended June 30, 2025 related to the completed sale of five European box plants in Mortagne, Saint-Amand, and Cabourg (France), Ovar (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection with the DS Smith combination.
Net (gains) losses on sales and impairments of assets
Net (gains) losses on sales and impairments of assets of $(67) million were included in net special items expense (income) for the six months ended June 30, 2025 for asset sales related to our permanently closed Orange, Texas containerboard mill and other items.
Interest expense, net
Interest expense, net decreased by $29 million compared to the six months ended June 30, 2025. Six months of DS Smith activity is included in 2026 ($71 million) compared to five months in 2025 ($70 million). For IP Legacy, interest expense, net decreased primarily due to higher interest income earned on increased average cash balances and higher capitalized interest. Net special items interest income of $11 million is included in interest expense, net in the six months ended June 30, 2026.
Income tax provision (benefit)
A net income tax provision from continuing operations of $2 million was recorded for the six months ended June 30, 2026 and the reported effective income tax rate was 3%. Excluding a $19 million net tax benefit for other special items and $8 million tax expense related to non-operating pension income, the operational tax provision (benefit) (non-GAAP) for the six months ended June 30, 2026 was $13 million, or 12% of pre-tax earnings before equity earnings.
A net income tax provision from continuing operations of $8 million was recorded for the six months ended June 30, 2025 and the reported effective income tax rate was (21)%. Excluding a $39 million net tax benefit for other special items, the operational tax provision (benefit) (non-GAAP) for the six months ended June 30, 2025 was $47 million, or 22% of pre-tax earnings before equity earnings.
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Refer to "Non-GAAP Financial Measures" for a reconciliation of the net income tax provision (benefit) (GAAP) to the operational income tax provision (benefit) (non-GAAP) and the reported effective income tax rate (GAAP) to the operational effective income tax rate (non-GAAP).
Discontinued Operations, Net of Tax
Discontinued operations for the six months ended June 30, 2026 and the six months ended June 30, 2025 includes the operating earnings of the GCF business. Discontinued operations also includes net special items expense of $3 million and non-operating pension expense of $19 million for the six months ended June 30, 2026 compared to net special items expense of $27 million for the six months ended June 30, 2025.
BUSINESS SEGMENT OPERATING RESULTS
The Company operates in two segments: PS NA and PS EMEA.
The following tables present net sales and business segment operating profit (loss), which is the Company's measure of segment profitability and 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 profit (loss) is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments and is presented in our financial statement footnotes in accordance with ASC 280 - "Segment Reporting." For additional information regarding business segment operating profit (loss), including a description of the manner in which business segment operating profit (loss) is calculated, see Note 20 - Business Segment Information to the Condensed Notes to the Consolidated Financial Statements.
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.
PS NA
2026 2025
In millions 2nd Quarter 1st Quarter Six Months 2nd Quarter 1st Quarter Six Months
Net Sales $ 3,688 $ 3,626 $ 7,314 $ 3,860 $ 3,702 $ 7,562
Business Segment Operating Profit (Loss) $ 204 $ 248 $ 452 $ 277 $ 142 $ 419
PS NA sales were higher compared to the first quarter of 2026 reflecting higher sales prices, higher sales volumes and a favorable mix due to lower export sales. Sales volumes were higher driven by continued growth in our domestic business, typical seasonal improvement and the impact of one additional shipping day. Cost of products sold increased by $101 million and was impacted by higher planned maintenance outage costs and higher sales volumes, partially offset by lower input costs. Input costs were favorably impacted by the non-repeat of higher natural gas costs and utility costs driven by the winter storm in the first quarter of 2026, partially offset by higher recovered fiber and freight costs. Manufacturing costs were slightly lower reflecting stronger mill performance, additional Ixtac insurance recovery and the non-repeat of winter storm impacts. These benefits were mostly offset by costs of the Riverdale paper machine conversion and other planned reliability spending. Depreciation and amortization expense and selling and administrative expenses were flat. Distribution expenses increased by $9 million due to higher sales. In the second quarter of 2026, the Company successfully completed several strategic initiatives, including the Riverdale machine conversion and the acquisitions of the NORPAC mill in Longview, Washington and the Dover converting facility in Delaware.
Compared with the second quarter of 2025, PS NA sales in the second quarter of 2026 were lower driven by lower sales volumes reflecting the impact of our mill strategic actions and lower export volumes partially offset by higher sales prices for boxes. Cost of products sold decreased by $87 million driven by lower sales volumes reflecting the impact of our footprint cost out benefits partially offset by higher planned maintenance outage costs and higher operating costs and input costs. Manufacturing costs were impacted by Riverdale machine conversion spending and higher costs for goods and services. Input costs were driven by higher freight costs partially offset by lower recovered fiber costs. Depreciation and amortization expense decreased $10 million. Selling and administrative expenses decreased by $6 million reflecting lower overhead costs. Distribution expense was higher driven by higher freight costs.
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Entering the third quarter of 2026, sales volumes are expected to be lower compared to the second quarter of 2026 due to lower export sales partially offset by the impact of one additional shipping day in the third quarter of 2026. Price and mix are expected to be higher due to previously published price movements and a favorable mix. Operating costs are expected to be lower. Planned maintenance downtime costs are expected to be lower in the third quarter of 2026 compared with the second quarter of 2026. Input costs are expected to be higher.
PS EMEA
2026 2025
In millions 2nd Quarter 1st Quarter Six Months 2nd Quarter 1st Quarter Six Months
Net Sales $ 2,287 $ 2,323 $ 4,610 $ 2,291 $ 1,550 $ 3,841
Business Segment Operating Profit (Loss) $ (80) $ (51) $ (131) $ (1) $ 46 $ 45
PS EMEA sales decreased in the second quarter of 2026 compared with the first quarter of 2026 as higher sales prices for paper were more than offset by lower sales volumes in a continued soft market driven by geopolitical uncertainty and consumer sentiment. Cost of products sold decreased $25 million driven by lower sales volumes, cost-out actions and lower input costs for energy, including subsidies, partially offset by higher recovered fiber costs. Packaging margins were impacted by higher paper prices not yet realized in box pricing. Planned maintenance outage costs were higher. Depreciation and amortization expense in the second quarter of 2026 was slightly higher compared with the first quarter of 2026. Selling and administrative expenses increased $14 million driven by planned annual wage increases. Distribution expenses were flat.
Compared with the second quarter of 2025, PS EMEA sales in the second quarter of 2026 were slightly lower driven by lower sales volumes and prices for paper. Cost of products sold decreased $12 million, reflecting lower sales volumes partially offset by lower input costs. Depreciation and amortization expense increased $67 million due to changes in the valuation of intangible assets and property, plant and equipment along with changes to the estimated lives associated with the acquisition accounting of DS Smith in the second half of 2025. Selling and administrative expenses were $17 million higher compared to the second quarter of 2025 driven by higher overhead costs. Distribution expenses were slightly higher.
Looking ahead to the third quarter of 2026, sales are expected to be higher. Operating costs are expected to be lower. Input costs are expected to be lower, driven by recovered fiber partially offset by higher energy costs.
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by (used for) operations, including discontinued operations, totaled $1.1 billion and $188 million for the first six months of 2026 and 2025, respectively. Cash provided by (used for) working capital components (accounts receivable, contract assets and inventory less accounts payable and accrued liabilities, interest payable and other) totaled $54 million for the six months ended June 30, 2026 compared with cash provided by (used for) working capital components of $(683) million for the six months ended June 30, 2025. The change in cash provided by operations in the first six months of 2026 compared to the comparable 2025 six-month period was primarily due to certain significant payments related to the DS Smith acquisition transaction costs, incentive compensation and benefit payments and severance payments made in the first six months of 2025 which, in total, impacted operating cash flow by $670 million.
Cash provided by (used for) investment activities, including discontinued operations, totaled $(349) million in the first six months of 2026 compared with $(38) million in the first six months of 2025. The increase was primarily due to higher capital expenditures of $298 million, increased cash paid for acquisitions, net of cash acquired of $874 million and lower proceeds from the sale of fixed assets of $62 million. These were partially offset by cash proceeds from divestitures, net of cash divested of $945 million and higher insurance recoveries of $16 million.
Capital expenditures totaled $1.1 billion in the first six months of 2026, compared to $752 million in the first six months of 2025. Full-year 2026 capital expenditures are currently expected to be approximately $2.0 billion to $2.1 billion, or 102% to 107% of depreciation and amortization.
Financing activities for the first six months of 2026 included a $501 million net decrease in debt versus a $200 million net increase in debt during the comparable 2025 six-month period.
During the second quarter of 2026, the Company had no borrowings outstanding under its commercial paper program and its U.S. dollar denominated committed bank facility.
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See Note 16 - Debt to the Condensed Notes to the Consolidated Financial Statements for a discussion of various debt-related actions taken by the Company during the six months ended June 30, 2026.
Maintaining an investment-grade credit rating is an important element of International Paper’s financing strategy. At June 30, 2026, the Company held long-term credit ratings of BBB (stable outlook) and Baa2 (negative outlook) by S&P and Moody’s, respectively. In addition, the Company held short-term credit ratings of A2 and P2 by S&P and Moody's, respectively, for borrowings under the Company's commercial paper program.
During the first six months of 2026, International Paper used 2.2 million shares of treasury stock for various incentive plans. International Paper also acquired 0.7 million shares of treasury stock, related to restricted stock tax withholdings during the first six months of 2026. Payments of restricted stock withholding taxes totaled $31 million during this period. Our current share repurchase program approved by our Board of Directors (the "Board") on October 11, 2022, does not have an expiration date and has approximately $2.96 billion aggregate amount of shares of common stock remaining authorized for purchase as of June 30, 2026. During the six months ended June 30, 2026, no shares of common stock were repurchased under our share repurchase program.
During the first six months of 2025, International Paper used approximately 3.5 million shares of treasury stock for various incentive plans. International Paper also acquired 1.1 million shares of treasury stock, related to restricted stock tax withholding during the first six months of 2025. Payments of restricted stock withholding taxes totaled $63 million. During the six months ended June 30, 2025, no shares of common stock were repurchased under our share repurchase program.
Cash dividend payments related to common stock totaled $490 million and $488 million for the first six months of 2026 and 2025, respectively. Dividends were $0.9250 per share for the first six months of 2026 and 2025.
Our U.S. and U.K. qualified pension plans are currently fully funded.
International Paper expects to meet projected capital expenditures, service existing debt, meet working capital and dividend payments and make common stock and/or debt repurchases for the next 12 months and for the foreseeable future thereafter with current cash balances and cash from operations, supplemented as required by its existing credit facilities. The Company will continue to rely on debt and capital markets for the majority of any necessary long-term funding not provided by operating cash flows. Funding decisions will be guided by our capital structure planning objectives. The primary goals of the Company’s capital structure planning are to maximize financial flexibility and maintain appropriate levels of liquidity to meet our needs while managing balance sheet debt and interest expense. We have repurchased, and may again repurchase, our common stock (under our existing share repurchase program) and debt (including in open market purchases) to the extent consistent with this capital structure planning, and subject to prevailing market conditions, our liquidity requirements, applicable securities laws requirements, and other factors. The majority of International Paper’s debt is accessed through global public capital markets where we have a wide base of investors.
Long-Term Debt
The following summarizes certain material provisions of our long-term debt facilities and current obligations. This summary does not purport to be complete and is qualified in its entirety by reference to the documents governing such indebtedness. For additional information regarding the Company’s credit agreements, outstanding and assumed indebtedness, see Note 16 Debt of Condensed Notes to the Consolidated Financial Statements.
At June 30, 2026, International Paper’s U.S. dollar denominated credit facilities totaled $1.9 billion, comprised of a $1.4 billion contractually committed bank credit agreement and up to $500 million available under its receivables securitization program. Management believes these credit agreements provide sufficient liquidity to manage operating cash flow variability during the current economic cycle. The credit agreements generally provide for interest rates at a floating rate index plus a pre-determined margin tied to International Paper’s credit rating. At June 30, 2026, the Company had no borrowings outstanding under the $1.4 billion credit agreement or the $500 million receivables securitization program. The Company’s credit agreements contain no restrictive covenants other than the financial covenants as described in Note 16 Debt of Condensed Notes to the Consolidated Financial Statements, and the borrowings under the receivables securitization program being limited by eligible receivables. The Company was in compliance with all its debt covenants at June 30, 2026 and within the thresholds stipulated. The financial covenants do not restrict any borrowings under the credit agreements.
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Commercial Paper
In addition to the $1.9 billion capacity under the Company's credit agreements, International Paper has a commercial paper program with a borrowing capacity of $1.0 billion supported by its $1.4 billion credit agreement. Under the terms of the Company's commercial paper program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. The Company had no borrowings outstanding as of June 30, 2026 under this program.
Assumed Debt
In 2025, International Paper assumed foreign denominated debt of DS Smith in various currencies.
Euro Medium Term Notes
Our subsidiary DS Smith initiated consent solicitations with the holders of several series of its outstanding euro- and sterling denominated notes to approve certain amendments to the notes’ terms and related trust deeds (the “Euro Medium Term Notes”). The amendments were designed to align DS Smith’s reporting and covenant framework with that of International Paper, and to provide greater flexibility for the reorganization of DS Smith’s subsidiaries. As part of the solicitation process, International Paper agreed to provide guarantees of DS Smith’s obligations under each series of the Euro Medium Term Notes. These amendments and guarantees were implemented in March 2025 through supplemental trust deeds. All principal amounts of the affected Euro Medium Term Notes remain outstanding.
As part of the Company’s readiness efforts to prepare the EMEA packaging business to operate as an independent, standalone public company, on May 13, 2026, DS Smith Limited announced consent solicitations to certain holders of its outstanding notes, other than with respect to the notes due 2026 (which are proposed to be repaid on maturity and in respect of which no consent was sought), (such solicited Series, the "Solicited Notes") to approve amendments to the terms of the Solicited Notes and related governing documents. Meetings of noteholders were held on June 4, 2026, and the required quorum was reached for each series of the Solicited Notes. Noteholders approved the proposed amendments, and all entitlements to implement the proposed amendments were satisfied, other than the execution (and where applicable delivery) of the agreed form amendment documentation by DS Smith and International Paper, which will implement the amendments in respect of the relevant series of the Solicited Notes.
As a result, upon such implementation (the timing of which is at the sole discretion of International Paper and DS Smith), International Paper Company will become the issuer and primary obligor under each series of notes (other than the notes due 2026), totaling approximately $2.1 billion, replacing DS Smith. At the same time, International Paper's guarantee of the notes will be released, and the proposed amendments to the note terms and related documentation will become effective.
The consent solicitations were conducted only with eligible noteholders in accordance with applicable securities laws and offering restrictions. The consent solicitations are intended to enable the EMEA packaging business to issue new debt and optimize its debt mix and maturity profile.
Credit and Bank Facilities
In 2025, the Company amended and restated its £1.25 billion multi-currency credit facility agreement, its €200 million amortizing credit facility and €60 million committed bank facility. The amendments (i) replaced the Company's standalone financial reporting requirements with International Paper’s financial information; (ii) aligned the facility's financial covenant with those in International Paper’s existing credit facilities; and (iii) updated certain events of default and undertakings to reflect International Paper's financing framework and to provide additional flexibility for potential subsidiary reorganization within the International Paper group.
The £1.25 billion multi-currency credit facility allows for British pound sterling, euro and U.S. dollar-denominated borrowings at floating rates plus a pre-determined margin, with borrowings generally denominated to match the Company's cashflows. At June 30, 2026, the Company had €525 million and £40 million (approximately $653 million) borrowings outstanding under the credit facility. The Company’s credit facility agreement is not subject to any restrictive covenants other than that International Paper must comply with the same negative covenants as per its existing credit facilities. IP was in compliance with all its debt covenants at June 30, 2026, and was well below the thresholds stipulated under the covenants as defined in the credit facility agreement. Further the financial covenants do not restrict any borrowings under the £1.25 billion credit facility agreement.
The €200 million amortizing credit facility agreement provides for interest rates at a fixed rate for each facility. At June 30, 2026, the Company had €138 million (approximately $157 million) borrowings outstanding under the credit facility agreement.
The credit facility agreements do not impose restrictive covenants other than requiring International Paper to comply with the same negative covenants applicable to its existing credit facilities. IP was in compliance with all applicable covenants as of
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June 30, 2026, and remained well within the thresholds. The financial covenants do not restrict the Company’s ability to borrow under the credit facility agreement.
The €60 million committed bank facility, maturing in 2026, allows for British pound sterling, euro and US dollar-denominated borrowings. At June 30, 2026, there were no borrowings outstanding under this agreement. The Company has a £50 million uncommitted bank facility. At June 30, 2026, the Company had €55 million (approximately $63 million) borrowings outstanding under this agreement.
CRITICAL ACCOUNTING POLICIES AND SIGNIFICANT ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires International Paper to establish accounting policies and to make estimates that affect both the amounts and timing of the recording of assets, liabilities, revenues and expenses. Some of these estimates require judgments about matters that are inherently uncertain.
Accounting policies whose application may have a significant effect on the reported results of operations and financial position of International Paper, and that may require judgments by management that affect their application, include accounting for contingencies, impairment or disposal of long-lived assets, goodwill and other intangible assets, pensions and income taxes.
The Company has included in its Annual Report a discussion of these critical accounting policies, which are important to the portrayal of the Company’s financial condition and results of operations and may require management’s judgments. The Company has not made any changes in these critical accounting policies during the first six months of 2026.
The PS EMEA reporting unit approximated fair value after the December 31, 2025 goodwill impairment charge. Based on updated forecast information, we performed a quantitative goodwill impairment test as of June 30, 2026. The results of the test indicated that the estimated fair value of the PS EMEA reporting unit continued to approximate its carrying value. The estimated fair value is sensitive to changes in key assumptions, and a material adverse change in any individual assumption or in a combination of assumptions could result in a future goodwill impairment charge.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as “expects,” “anticipates,” “believes,” “estimates,” “could,” “should,” “can,” “forecast,” “outlook,” “intend,” “look,” “may,” “will,” “remain,” “confident,” “commit” and “plan” or similar expressions. These statements are not guarantees of future performance and reflect management’s current views and speak only as to the dates the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding anticipated financial results, economic conditions, industry trends, future prospects, and the anticipated benefits, execution and consummation of strategic corporate transactions. Factors which could cause actual results to differ include but are not limited to: (i) our ability to consummate and achieve the benefits expected from, and other risks, costs and expenses associated with, our plans to separate our North America and Europe, Middle East and Africa (“EMEA”) operations into two independent public companies and other corporate transactions on a timely basis or at all, including the risk that an impairment charge may be recorded for goodwill or other intangible assets, which may lead to decreased assets and reduced net earnings; (ii) our ability to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from corporate transactions; (iii) risks associated with our strategic business decisions including facility closures, business exits, operational changes, corporate restructurings and portfolio rationalizations intended to support the Company’s 80/20 strategic approach for long-term growth; (iv) our failure to comply with the obligations associated with being a public company listed on the New York Stock Exchange and the London Stock Exchange and the costs associated therewith; (v) risks with respect to climate change and global, regional, and local weather conditions, as well as risks related to our targets and goals with respect to climate change and the emission of greenhouse gases and other environmental, social and governance matters, including our ability to meet such targets and goals; (vi) loss contingencies and pending, threatened or future litigation, including with respect to environmental and antitrust related matters; (vii) the level of our indebtedness, risks associated with our variable rate debt, and changes in interest rates (including the impact of current elevated interest rate levels); (viii) the impact of global and domestic economic conditions and industry conditions, including with respect to current challenging macroeconomic conditions, inflationary pressures and changes in the cost or availability of raw materials, energy price increases or shortages in energy sources and transportation sources, supply chain shortages and disruptions, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products, and conditions impacting the credit, capital and financial markets; (ix) risks arising from conducting business internationally, domestic and global geopolitical conditions and tensions involving military conflict (including major global actors such as Russia, the Middle East, the further expansion of such
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conflicts, and the geopolitical and economic consequences associated therewith), as well as broader geopolitical tensions, changes in currency exchange rates, including in light of our assets, liabilities and earnings denominated in foreign currencies as we proceed with the planned separation of our North America and EMEA packaging business, trade policies (including but not limited to protectionist measures and the imposition of new or increased tariffs as well as the potential impact of retaliatory tariffs and other penalties including retaliatory policies against the United States) and global trade tensions, downgrades in our credit ratings, and/or the credit ratings of banks issuing certain letters of credit, issued by recognized credit rating organizations; (x) the amount of our future pension funding obligations, and pension and healthcare costs; (xi) the costs of compliance, or the failure to comply with, existing, evolving or new environmental (including with respect to climate change and greenhouse gas emissions), tax, trade, labor and employment, privacy, anti-bribery and anti-corruption, and other U.S. and non-U.S. governmental laws, regulations and policies (including but not limited to those in the United Kingdom and European Union); (xii) a material disruption at any of our manufacturing facilities or other adverse impact on our operations due to severe weather, natural disasters, climate change or other causes; (xiii) cybersecurity and information technology risks, including as a result of security breaches and cybersecurity incidents; (xiv) our exposure to claims under our agreements with Sylvamo Corporation; (xv) our ability to attract and retain qualified personnel and maintain good employee or labor relations; (xvi) our ability to maintain effective internal control over financial reporting; and (xvii) our ability to adequately secure and protect our intellectual property rights. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements can be found in our press releases and reports filed with the U.S. Securities and Exchange Commission. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.