Slides
Page 1
Third Quarter 2025 Earnings October 30, 2025
Page 2
Third Quarter 2025 Earnings 10/30/2025 2 Forward-Looking Statements Certain statements in this presentation 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,” “intend,” “look,” “may,” “will,” “remain,” “target,” “attractive,” “upside,” “downside,” “on track,” “drive,” “confident,” “commit,” “positioned”, “conviction,” “realize” and “plan” or similar expressions including statements about our path to profitable growth. 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 corporate transactions or contemplated acquisitions, including our business combination with DS Smith Ltd., formerly DS Smith Plc (“DS Smith”) and divestiture of our Global Cellulose Fibers business to American Industrial Partners (“AIP”). 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 associated with, acquisitions, joint ventures, divestitures, spinoffs, capital investments and other corporate transactions, including, but not limited to, our business combination with DS Smith and the divestiture of our Global Cellulose Fibers business to AIP; (ii) our ability to integrate and implement our plans, forecasts, the internal control framework of DS Smith, including assessment of its internal control over financial reporting, and achieve the synergies, value creation, target run rates and other expectations with respect to the combined company, including in light of our increased scale and global presence; (iii) risks associated with strategic business decisions including facility closures, business exits, operational changes, and portfolio rationalizations intended to support the Company’s 80/20 strategic approach for long-term growth; (iv) 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; (v) loss contingencies and pending, threatened or future litigation, including with respect to environmental and antitrust related matters; (vi) the level of our indebtedness, including our obligations related to becoming the guarantor of the Euro Medium Term Notes as a result of our acquisition of DS Smith, risks associated with our variable rate debt, and changes in interest rates ; (vii) 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 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; (viii) risks arising from conducting business internationally, domestic and global geopolitical conditions, military conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the further expansion of such conflicts, and the geopolitical and economic consequences associated therewith), changes in currency exchange rates, including in light of our increased proportion of assets, liabilities and earnings denominated in foreign currencies as a result of our business combination with DS Smith, 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); (xi) 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; (xii) our ability to realize expected benefits and cost savings associated with restructuring initiatives; (xiii) cybersecurity and information technology risks, including as a result of security breaches and cybersecurity incidents; (ixv) our exposure to claims under our agreements with Sylvamo Corporation; (xv) the qualification of the Sylvamo Corporation spin-off as a tax-free transaction for U.S. federal income tax purposes; (xvi) risks associated with the planned divestiture of our Global Cellulose Fibers to AIP, including the costs and expenses related to the transaction, the diversion of management’s attention, our ability to obtain required regulatory approvals and satisfy closing conditions, uncertainty as to whether the transaction may be completed, if at all and asset impairment charges arising from or in connection with the transaction; (xvii) our ability to attract and retain qualified personnel and maintain good employee or labor relations; (xviii) our ability to maintain effective internal control over financial reporting; and (ixx) 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 Statements Relating to Non-U.S. GAAP Measures While the Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP), during the course of this presentation, certain non-GAAP financial measures are presented. Management believes non-GAAP financial measures, when used in conjunction with information presented in accordance with GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company’s financial condition and results of operations. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. The non-GAAP financial measures in this presentation 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 use identical calculations, our presentation of non-GAAP financial measures in this presentation may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. A reconciliation of all presented non-GAAP measures (and their components) to GAAP financial measures on IP’s website at https://www.internationalpaper.com/investors/financialreports/quarterly-results. Discontinued Operations As a result of the planned divestiture of our Global Cellulose Fibers business to AIP announced on August 21, 2025, the Global Cellulose Fibers business segment has been eliminated. All current and historical operating results of the Global Cellulose Fibers business are presented as discontinued operations, net of tax. All current and historical assets and liabilities of the Global Cellulose Fibers business are classified as assets held for sale and long-term assets held for sale and liabilities held for sale and long-term liabilities held for sale. Use of Materials The images, graphics, charts, brands, and other content and information contained in this presentation are protected by the copyright and trademark laws of the United States and other jurisdictions (the “Content”). International Paper grants a limited, non-exclusive, revocable license to use individual elements of Content for financial analysis, reporting and commentary and for incorporation into educational projects and documents for educators and students without further written permission. Such licenses granted here may be withdrawn at the sole discretion of International Paper for any reason and do not otherwise constitute a waiver of International Paper’s legal rights for infringements. See slide 28 for footnoted material referenced throughout the presentation
Page 3
SIMPLIFY SEGMENT RESOURCE GROW 80/20 We have a clear strategy to drive sustainable value creation W H E R E T O P L AY H O W T O W I N RIGHT GEOGRAPHIES ADVANTAGED COST POSITION SUPERIOR CUSTOMER EXPERIENCE HIGH RELATIVE SUPPLY POSITION Expands margins while bolstering ability to win with customers; funds investment Delivers additional volume growth and earns loyalty and willingness to pay HIGH RSP SUPERIOR CX ACP RIGHT CUSTOMERS RIGHT PRODUCTS Third Quarter 2025 Earnings 10/30/2025 3 Build advantaged capabilities and offerings while driving even lower cost
Page 4
Third Quarter 2025 Earnings 10/30/2025 4 Our transformation is well underway Transformation is delivering earnings improvement, on track to achieve ambitious adjusted EBITDA 1 lift Our 80/20 focus is driving dynamic allocation of resources and pushing decision-making into the field, driving sharper commercial and operational execution We are maintaining industry-leading customer advocacy, with strong wins despite industry headwinds Structural cost improvement across mills, plants, SG&A, and sourcing will deliver significant margin expansion The combined Packaging Solutions EMEA has significantly strengthened our market position, with attractive synergy value However, the industry is challenging, with forecasted paper oversupply persisting until 2027 We have an ambitious plan to deliver profitable growth, including footprint and overhead optimization, and commercial acceleration Our focus for the coming quarters is execution of our plan, as well as further growth to 2027 and beyond Packaging Solutions North America Packaging Solutions EMEA We are staying the course on the 80/20 Transformation, anticipating and navigating risk for long-term resilience We have a clear path to profitable growth despite regional industry dynamics
Page 5
YTD '24A YTD '25A PS NA EARNINGS DRIVERS Cost Out Optimization of Mill / Plant footprint with facility closures and productivity investments Enterprise overhead reduction Expanded Lighthouse 80/20 model to 74 box plants & launched at mills Commercial Strong margin improvement Confirmed strategic customer wins Improved customer experience through 80/20 actions Adj. EBITDA1 Margin % 12.0% 15.7% North American YTD results demonstrate transformation progress Third Quarter 2025 Earnings 10/30/2025 (a) PS NA Adj. EBITDA includes DSS NA beginning Feb. ‘25 5 + 40% $1.23 $1.72 + 370 bps YTD PS NA(a) Adj. EBITDA 1 ($B) Packaging Solutions North America
Page 6
Third Quarter 2025 Earnings 10/30/2025 6 Performance Demand Actions ➢ Adj. EBITDA 1 sequential step-up improvement of 28% for Packaging Solutions businesses (a) ➢ Continued market softness in North America and EMEA ➢ Strategic customer wins resulting in YoY growth in Sept. for PS NA ➢ Rapidly executing cost out measures in light of the challenging demand environment ➢ Announced sale of GCF and Bag businesses Quarterly Highlights (a) Including Corporate & Other
Page 7
Enterprise: 3Q’25 Results $3,979 $6,142 $6,222 3Q'24 2Q'25 3Q'25 Sales ($MM) $158 $239 $(240) 3Q'24 2Q'25 3Q'25 Adj. EBIT1 ($MM) $366 $670 $859 3Q'24 2Q'25 3Q'25 Adj. EBITDA1 ($MM) $309 $54 $150 3Q'24 2Q'25 3Q'25 Free Cash Flow3 ($MM) 9.2% 10.9% 13.8% 3Q'24 2Q'25 3Q'25 Adj. EBITDA1 Margin $0.33 $0.18 $(0.43) 3Q'24 2Q'25 3Q'25 Adj. Operating EPS2 Third Quarter 2025 Earnings 10/30/2025 7 Excludes GCF as discontinued ops. (a) impacted by accelerated depreciation of $675MM “EPS $(0.81)” from facility closures (b) includes $60MM of investments related to transformation activity (a) (b) (a)
Page 8
3Q’25 results reflect significant step up sequentially (a) Recast to account for GCF stranded costs (b) Recycling Adj. EBITDA contribution included in Corp & Other (c) $18MM of stranded costs moved from GCF to Corp (d) $17MM of stranded costs moved from GCF to CorpThird Quarter 2025 Earnings 10/30/2025 8 Gaining Momentum on our Transformation Journey 2Q’25 3Q’25 (Adj. EBITDA 1 $MM) ACTUAL ACTUAL PS NA $515 $655 PS EMEA $194 $209 Corp & Other 2 (a,b) $(39) $(5) IP (continuing operations) $670 $859 GCF (discontinued operations) $63 (c) $153 (d) IP (incl. GCF discontinued operation) $733 $1,012
Page 9
IP Confidential – For Internal Use Only PS NA: 3Q’25 Results 2Q’25 to 3Q’25($MM) Beginning Adj. EBITDA 1 Ending Adj. EBITDA 1 Price & Mix Volume Ops & Costs Maintenance Outages Inputs 655 573 Commentary Third Quarter 2025 Earnings 10/30/2025 9 Depreciation & Amortization Expense Prior price index movement Soft but stable demand Non-repeat of 2Q items | Strategic initiatives Timing of planned outages to accelerate mill closures Higher energy costs 515 28 4 49 86 (27) 655 831
Page 10
Strategic commercial shift to enhance margins Accelerating customer-centric approach Third Quarter 2025 Earnings 10/30/2025 North America: Our commercial strategy is working Confidence in growing at or above industry moving forward Packaging Solutions North America Box Volume Trend(a) (a) The Fibre Box Association (FBA) is the U.S. trade association that provides industry key indicators of demand, capacity utilization, and sustainability progress for the paper and packaging sector | Data excludes legacy DSS volume (12)% (10)% (8)% (6)% (4)% (2)% - 2% 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 PS NA FBA Est. PS NA Y.o.Y Daily Basis +1.0% (1.7)% 10
Page 11
IP Confidential – For Internal Use Only PS NA: 4Q’25 Outlook 3Q’25 to 4Q’25 Outlook($MM) Beginning Adj. EBITDA 1 Ending Adj. EBITDA 1 Price & Mix Volume Ops & Costs Maintenance Outages Inputs 655 573 Commentary Third Quarter 2025 Earnings 10/30/2025 11 Depreciation & Amortization Expense Stable Commercial impact of mill closure $(60)MM | 3 less shipping days Strategic wins & seasonality Cost-out impact of mill closure +$60MM Seasonally higher labor | Reliability spend aligned with planned outages Timing of planned outages Lower fiber costs 655 4 (82) 44 (34) 13 600 245 (Outlook)
Page 12
$0.16 $1.07 $0.13 $(0.06) $(0.04) $1.26 1H'25A Commercial Cost Out Non-Strategic Comm. Exits Inflation / PPV 2H'25E PS NA EARNINGS DRIVERS Commercial Pricing improvement from prior publication increases On-boarding commercial wins Cost Out Optimization of Mill / Plant footprint Streamlining organizational complexity Mill / plant closure costs Non-Strategic Commercial Exits Exiting non-strategic export and specialty markets Inflation / PPV Higher energy partially offset by lower fiber + 18% Third Quarter 2025 Earnings 10/30/2025 12 PS NA Adj. EBITDA 1 ($B) Packaging Solutions North America Meaningful progress against planned strategic initiatives
Page 13
IP Confidential – For Internal Use Only PS EMEA: 3Q’25 Results 2Q’25 to 3Q’25($MM) Beginning Adj. EBITDA 1 Ending Adj. EBITDA 1 Price & Mix Volume Ops & Costs Maintenance Outages Inputs Depreciation & Amortization Expense Commentary Third Quarter 2025 Earnings 10/30/2025 13 Realization of prior price index movement Continued market softness Inventory valuation from paper price decline Timing of expense Timing of planned outages Lower Fiber Costs 194 13 (5) (10) (2) 19 209 267
Page 14
IP Confidential – For Internal Use Only 3Q’25 to 4Q’25 Outlook($MM) Beginning Adj. EBITDA 1 Ending Adj. EBITDA 1 Price & Mix Volume Ops & Costs Maintenance Outages Inputs 655 573 Commentary Third Quarter 2025 Earnings 10/30/2025 14 Depreciation & Amortization Expense Realization of prior price index movement Favorable seasonality Increased costs related to increased volume | Timing of expense non repeat Timing of planned outages Lower Fiber Costs 209 12 12 (24) 5 16 230 245 (Outlook) PS EMEA: 4Q’25 Outlook
Page 15
$(0.01) $0.35 $0.04 $0.07 $0.44 1H'25A Commercial Cost Out Input Costs / Other 2H'25E PS EMEA EARNINGS DRIVERS Commercial Continued EMEA macro headwinds Cost Out Procurement & overhead optimization Input Costs / Other (incl. inflation) One additional month of DSS earnings Favorable energy costs Labor & general inflation +26% Third Quarter 2025 Earnings 10/30/2025 15 (a) 1H25 includes 5 Months of DSS EBITDA (b) Cost-out estimates based on proposals and subject to consultation PS EMEA Adj. EBITDA 1 ($B) (a) Packaging Solutions EMEA (b) Soft macro climate persists with early signs of 80/20 progress
Page 16
$0.3 $0.3 ($0.3) $0.2 $0.1 $0.6 Cost Out Commercial Non-Strategic Comm. Exits Cost Out Commercial 2026 Adj. EBITDA Incr. Benefit Target PS NA +$0.3B PS EMEA +$0.3B Third Quarter 2025 Earnings 10/30/2025 16 (a) One-time impact of non-strategic market exits related to Savannah / Riceboro mill closures (a) 1 Additional 2026 upsides would include market growth, price, and future cost actions Incremental ~$0.6B Adj. EBITDA 1 secured for 2026 from 2025 actions
Page 17
17 (a) Original assumptions: GCF Revenue of $2.5B and GCF Adj. EBITDA1 of $0.36B 2025 2027 Investor Day (excluding GCF) Current (excluding GCF) Investor Day (excluding GCF) Current (excluding GCF) Net Sales $24.5B (a) ~$24.0B $26.0B - $28.0B ~$25.5B Adjusted EBITDA 1 $3.1B - $3.6B (a) ~$3.0B $5.5B - $6.0B ~$5.0B Free Cash Flow 2, 3 $0.1B - $0.3B $(0.1)B - $(0.3)B $2.0B - $2.5B ~$2.0B Updated Targets Third Quarter 2025 Earnings 10/30/2025
Page 18
Investor Relations • Mandi Gilliland +1-901-419-4595 mandi.gilliland@ipaper.com • Michele Vargas +1-901-419-7287 michele.vargas@ipaper.com Media • newsroom@ipaper.com 18Third Quarter 2025 Earnings 10/30/2025
Page 19
$3,640 $3,860 $3,898 3Q'24 2Q'25 3Q'25 Sales ($MM) $190 $277 $(166) 3Q'24 2Q'25 3Q'25 Adj. EBIT1,2 ($MM) $378 $515 $655 3Q'24 2Q'25 3Q'25 Adj. EBITDA1(a) ($MM) 10.9% 13.9% 17.5% 3Q'24 2Q'25 3Q'25 Adj. EBITDA1(a) Margin Third Quarter 2025 Earnings 10/30/2025 19 PS NA: Q3 Results (a) Excludes Recycling Adj. EBITDA
Page 20
$322 $2,291 $2,310 3Q'24 2Q'25 3Q'25 Sales ($MM) $7 $(1) $(58) 3Q'24 2Q'25 3Q'25 Adj. EBIT1,2 ($MM) $23 $194 $209 3Q'24 2Q'25 3Q'25 Adj. EBITDA1 ($MM) 7.1% 8.5% 9.0% 3Q'24 2Q'25 3Q'25 Adj. EBITDA1 Margin Third Quarter 2025 Earnings 10/30/2025 20 PS EMEA: Q3 Results
Page 21
Third Quarter 2025 Earnings 10/30/2025 21 ($MM) Beginning Adj. EBITDA 1 Ending Adj. EBITDA 1 Price & Mix Volume Ops & Costs Maintenance Outages Inputs Depreciation & Amortization Expense DS Smith Legacy EBITDA 1 Packaging Solutions North America 378 188 (18) 10 72 13 12 655 831 Packaging Solutions EMEA 23 (14) (1) 19 (11) 5 188 209 267 3Q’24 to 3Q’25 Adj. EBITDA 1 Bridge
Page 22
5-Year Average $1.8 ($MM) 2024 2025F Maintenance Outage Expense $371 $381 Maintenance & Regulatory $761 Targeting $1,800 - $1,900Cost Reduction $48 Strategic $112 Depreciation & Amortization2 $850 $2,540 Net Interest Expense3 $224 $380 Corporate Expense $170 $115 Effective Tax Rate 15% 34% - 36% 4 (a) Capex 22Third Quarter 2025 Earnings 10/30/2025 Select Financial Metrics 1 (a) Expect 24% - 26% in 2026
Page 23
0.18 (0.43) 0.06 - 0.06 0.11 (0.01) 0.07 (0.90) 2Q'25 Price/Mix Volume Operations & Costs Maintenance Outages Input Costs Corporate & Other Items Depreciation & Amortization 3Q'25 3Q’25 vs 2Q’25 Adjusted Operating EPS1 23Third Quarter 2025 Earnings 10/30/2025
Page 24
($MM) 1Q’25A 2Q’25A 3Q’25A 4Q’25F 2025F Packaging Solutions North America $93 $132 $46 $80 $351 Packaging Solutions EMEA $4 $9 $11 $6 $30 Total Impact $97 $141 $57 $86 $381 Maintenance Outages Expenses 2025 Forecast 24Third Quarter 2025 Earnings 10/30/2025
Page 25
25 (a) Sales volume includes third party and inter-segment sales and excludes sales of equity investees (b) Volumes for corrugated box sales reflect consumed tons sold (“CTS”). Board sales by these businesses reflect invoiced tons. Sales Volume by Product (a) Preliminary and Unaudited Third Quarter 2025 Earnings 10/30/2025 Three Months Ended September 30, Three Months Ended June 30, Nine Months Ended September 30, 2025 2024 2025 2025 2024 PS NA (In thousands of short tons) Corrugated Packaging (b) 2,261 2,192 2,241 6,654 6,679 Containerboard 767 772 793 2,351 2,302 Recycling 486 532 495 1,489 1,659 Saturated Kraft 14 51 30 84 147 Gypsum /Release Kraft 56 57 54 164 182 PS NA 3,584 3,604 3,613 10,742 10,969 PS EMEA (In thousands of short tons) Corrugated Packaging (b) 1,406 249 1,447 3,929 790 Containerboard 377 60 390 1,072 182 PS EMEA 1,783 309 1,837 5,001 972
Page 26
2025 Operating Earnings Pre-Tax $MM Tax $MM Non- controlling Interest $MM Equity Earnings $MM Net Income $MM Diluted Average Shares MM Diluted EPS1 Earnings (Loss) from Continuing Operations 1Q’25 $(155) $32 - $(1) $(124) 438 $(0.28) 2Q’25 $116 $(40) - $(1) $75 533 $0.14 3Q’25 $(675) $250 - $(1) $(426) 528 $(0.81) Net Special Items 2 1Q’25 $237 $(42) - - $195 438 $0.44 2Q’25 $20 $3 - - $23 533 $0.04 3Q’25 $354 $(149) - - $205 528 $0.39 Non-Operating Pension Expense (Income) 1Q’25 $3 $(1) - - $2 438 $0.01 2Q’25 $(5) $1 - - $(4) 533 $0.00 3Q’25 $(4) $1 - - $(3) 528 $(0.01) Adj. Operating Earnings 3 1Q’25 $85 $(11) - $(1) $73 438 $0.17 2Q’25 $131 $(36) - $(1) $94 533 $0.18 3Q’25 $(325) $102 - $(1) $(224) 528 $(0.43) 26Third Quarter 2025 Earnings 10/30/2025
Page 27
Global Input Costs 3Q’25 vs 2Q’25 $(8)MM Unfavorable, $(0.01) per share By Input TypeBy Business 27Third Quarter 2025 Earnings 10/30/2025 (30) - (1) (4) 8 (5) 23 1 - - Energy Fiber Chemicals Freight OCC North America EMEA (27) 19 Packaging Solutions North America Packaging Solutions EMEA Energy Wood Chemicals Freight OCC W o o d
Page 28
Footnotes Beginning in Q3 2025, management has elected to present forward-looking guidance based on Adjusted EBITDA, rather than Adjusted EBIT. This change reflects investor feedback and our view that Adjusted EBITDA provides a more meaningful measure of operating performance and cash flow generation, particularly in evaluat ing the Company’s ongoing results and future outlook during this period of transformation. See the reconciliation of all presented non -GAAP measures to the most directly comparable GAAP financi al measures on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. Slides 4, 5, 6, 9, 11, 12, 13, 14, 15 & 21 1 Adjusted EBITDA and Adjusted EBITDA Margin are a non-GAAP financial measures presented as a supplemental measures of our performance. It is not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating the Company’s performance over time, and that other companies use these measures and/or similar measures for similar purposes. However, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating Adjusted EBITDA and Adjusted EBITDA Margin, you should be aware that in the future we will incur expenses such as those used in calculating this measure. Our presentation of this measure should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. We use the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin at a segment level, along with other factors, to evaluate our segment performance against our peers. We believe that investors use these measures to evaluate our performance relative to our peers. Slide 7 1 Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures presented as supplemental measures of our performance. These non-GAAP measures are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating the Company’s performance over time, and that other companies use these and/or similar measures for similar purposes. However, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. A reconciliation of all presented non-GAAP measures to the most directly comparable GAAP financial measures is available on IP’s website at https://www.internationalpaper.com/investors/financial- reports/quarterly-results. Adjusted EBIT no longer excludes accelerated depreciation expense related to strategic mill actions. 2 Adjusted Operating EPS is; a non-GAAP financial measure based on Adjusted Operating Earnings (defined as earnings (loss) from continuing operations (GAAP) before net special items and non-operating pension expense (income)). The most directly comparable GAAP measure is diluted earnings (loss) from continuing operations per share. A reconciliation of all presented historical non-GAAP measures to the most directly comparable GAAP financial measures is available on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. Adjusted Operating EPS no longer excludes accelerated depreciation expense related to strategic mill actions. 3 Free cash flow is a non-GAAP financial measure, which equals cash provided by (used for) operations less capital expenditures. The most directly comparable GAAP measure is cash provided by operations. A reconciliation of all presented historical non-GAAP measures to the most directly comparable GAAP financial measures is available on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. Slide 8 1 Adjusted EBITDA and Adjusted EBITDA Margin are a non-GAAP financial measures presented as a supplemental measures of our performance. It is not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating the Company’s performance over time, and that other companies use these measures and/or similar measures for similar purposes. However, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating Adjusted EBITDA and Adjusted EBITDA Margin, you should be aware that in the future we will incur expenses such as those used in calculating this measure. Our presentation of this measure should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. We use the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin at a segment level, along with other factors, to evaluate our segment performance against our peers. We believe that investors use these measures to evaluate our performance relative to our peers. 2 The Company is unable to provide a reconciliation of the Adjusted EBITDA for the corporate and other, non-GAAP financial measure, without unreasonable efforts. This limitation arises from the inherent difficulty in quantifying certain expense required for the GAAP measure. Slide 16 1 The Company is unable to provide a reconciliation of this anticipated Adjusted EBITDA benefit, a forward-looking non-GAAP financial measure, on a fiscal year run rate basis associated with the actions described on this slide, as presented, without unreasonable efforts. This is due to the inherent difficulty in forecasting generally and quantifying certain types of expenses that would be required to be included in the GAAP measure. In addition, actual results may differ from this amount for a variety of reasons, including known and unknown risks and uncertainties. Third Quarter 2025 Earnings 10/30/2025 28
Page 29
Slide 17 1 Adjusted EBITDA and Adjusted EBITDA Margin are a non-GAAP financial measures presented as a supplemental measures of our performance. It is not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating the Company’s performance over time, and that other companies use these measures and/or similar measures for similar purposes. However, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating Adjusted EBITDA and Adjusted EBITDA Margin, you should be aware that in the future we will incur expenses such as those used in calculating this measure. Our presentation of this measure should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. We use the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin at a segment level, along with other factors, to evaluate our segment performance against our peers. We believe that investors use these measures to evaluate our performance relative to our peers. 2 Free cash flow is a non-GAAP financial measure, which equals cash provided by (used for) operations less capital expenditures. The most directly comparable GAAP measure is cash provided by operations. A reconciliation of all presented historical non-GAAP measures to the most directly comparable GAAP financial measures is available on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. 3 Excludes GCF and one-time item of deferred taxes paid related to timber monetization. Slide 19 & 20 1 Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures presented as supplemental measures of our performance. These non-GAAP measures are not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company believes these measures provide additional meaningful information in evaluating the Company’s performance over time, and that other companies use these and/or similar measures for similar purposes. We use the non-GAAP financial measures Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin at a segment level, along with other factors, to evaluate our segment performance against our peers. However, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. Adjusted EBIT no longer excludes accelerated depreciation expense related to strategic mill actions 2 Adjusted EBIT at a segment level is Business Segment Operating Profit for such segment defined as earnings (loss) before income taxes and equity earnings, but 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 at a segment level 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. Slide 22 1 Before special items 2 Includes expense of $233 million for 2024 associated with mill closure and plant closures, and $883 million for 2025 associated with mill closures and plant closures. 3 Excludes special items net interest income interest income of $10 million for 2024. 4 No reconciliation of the anticipated operational effective income tax rate for 2025, a forward-looking non-GAAP financial measure, to the most comparable GAAP measure, is included in this presentation because we are unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts, including forecasting net income for 2025. Slide 23 1 Adjusted operating EPS, a non-GAAP financial measure based on Adjusted Operating Earnings (defined as earnings (loss) from continuing operations (GAAP) before net special items and non-operating pension expense (income)). The most directly comparable GAAP measure is diluted earnings (loss) per share. A reconciliation of all presented historical non-GAAP measures to the most directly comparable GAAP financial measures is available on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. Adjusted Operating EPS no longer excludes accelerated depreciation expense related to strategic mill actions. Slide 26 1 A non-GAAP reconciliation to GAAP EPS is available at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. 2 Special items no longer include accelerated depreciation expense related to strategic mill actions. 3 Adjusted Operating Earnings, a non-GAAP financial measure, is based on earnings (loss) from continuing operations under GAAP before net special items and non-operating pension expense (income). The most directly comparable GAAP measure is earnings (loss) from continuing operations. A reconciliation of all presented historical non-GAAP measures to the most directly comparable GAAP financial measures is available on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. 29Third Quarter 2025 Earnings 10/30/2025 Footnotes