Slides
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Third Quarter 2026 Earnings October 28, 2026
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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,” “outlook,” “intend,” “look,” “may,” “will,” “remain,” “confident,” “commit,” “progress,” “positions,” “support,” 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 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) the possibility that, following evaluation of strategic alternatives, the separation of our EMEA operations may be effected in a different form than initially contemplated; (iii) our ability to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from corporate transactions; (iv) 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; (v) 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; (vi) 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; (vii) loss contingencies and pending, threatened or future litigation and investigation, including with respect to environmental and antitrust related matters; (viii) 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); (ix) 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; (x) 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 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; (xi) the amount of our future pension funding obligations, and pension and healthcare costs; (xii) 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); (xiii) 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; (xiv) cybersecurity and information technology risks, including as a result of security breaches and cybersecurity incidents; (xv) our exposure to claims under our agreements with Sylvamo Corporation; (xvi) our ability to attract and retain qualified personnel and maintain good employee or labor relations; (xvii) our ability to maintain effective internal control over financial reporting; and (xviii) 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 these 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 financial measures (and their components) to the most directly comparable GAAP financial measures is available on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results Discontinued Operations The Company sold its Global Cellulose Fibers business on January 23, 2026. Current and historical results have been adjusted to reflect the Global Cellulose Fibers business as a discontinued operation. Non-GAAP Reconciliations Please see Appendix at the end of this presentation as well as the Investors section of our website (www.internationalpaper.com) for more information on non-GAAP financial measures, definitions, and reconciliations to most directly comparable U.S. GAAP measures. Use of Materials The images, graphics, charts, brands, and other content and information contained in this document 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.
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3 Focused on Execution & Advancing Our Strategy 3Q26 Highlights PACKAGING SOLUTIONS NORTH AMERICA (PS NA) • Strong financial performance despite elevated inflation • Box volume expected to outpace estimated industry demand by approx. 2% for the full year1 • Price realization2 and operational performance mitigated inflationary pressures • Pine Hill repairs completed ahead of plan; financial impact confined to 3Q PACKAGING SOLUTIONS EMEA (PS EMEA) • Financial performance impacted by inflation and weak consumer confidence • Realization of previously published paper price increases • Advanced cost out actions to mitigate rising input costs • Separation preparation advancing Advantaged Cost Position High Relative Supply Position Superior Customer Experience (1) This industry outlook is based on management's current expectations, IP analysis, FBA, Oxford Economics, and Numera Analytics. Actual industry conditions may differ materially. (2) Current in-market pricing flowthrough as of October 2026.
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4 Expect to Outpace Industry 1 by ~2% for the Full Year PS NA Demand Trend ▪ PS NA box volume down approx. 2% YoY on a daily basis ▪ Impacted by West Coast agriculture and customer facility closures ▪ IP analysis estimates industry demand down approx. 3%1 ▪ IP expects to outpace industry1 ▪ Ramp of known customer wins ▪ Improvement in West Coast agriculture ▪ Seasonal uptick 3Q26 4Q26 (1) This industry outlook is based on management's current expectations, IP analysis, FBA, Oxford Economics, and Numera Analytics. Actual industry conditions may differ materially.
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5 Enterprise: 3Q26 Results $6,222 $6,004 $6,197 3Q25 2Q26 3Q26 $(0.43) $0.04 $0.37 3Q25 2Q26 3Q26 $150 $(7) $(267) 3Q25 2Q26 3Q26 $(240) $99 $317 3Q25 2Q26 3Q26 Adj. EBIT1,2 ($MM) Free Cash Flow1 ($MM)Adj. Operating EPS1,2 $859 $587 $843 3Q25 2Q26 3Q26 13.8% 9.8% 13.6% 3Q25 2Q26 3Q26 Adj. EBITDA Margin1Adj. EBITDA1 ($MM) Sales ($MM) (1) See Appendix and the Investors section of our website (www.internationalpaper.com) for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures. (2) Includes impact from step up depreciation from integration and accelerated depreciation from strategic actions. (3) Impacted by accelerated depreciation of $675MM or $(0.81) EPS from facility closures. 3 3
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PS NA: 3Q26 Results ($MM) 2Q26 to 3Q26 COMMENTARY 2Q26 Adj. EBITDA1 425 Price & Mix 141 Faster price realization Volume (46) One more shipping day Softer demand environment including West Coast agriculture | Seasonally lower daily demand | Lower export Ops & Costs 85 Mill performance | Riverdale & NORPAC on track | 80/20 strategic initiatives Maintenance Outages 133 Timing of planned outages Inputs (55) Higher diesel, OCC, and energy costs 3Q26 Adj. EBITDA1 excl. Pine Hill impact 683 Pine Hill (20) Insurance recovery Temporary suspension of operations due to roof repair 3Q26 Adj. EBITDA1 incl. Pine Hill impact 663 Depreciation & Amortization Expense 242 (Actual) (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures. Excludes Recycling business Adj. EBITDA. 6
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PS NA: 4Q26 Outlook ($MM) 3Q26 to 4Q26 Outlook COMMENTARY 3Q26 Adj. EBITDA1 663 Price & Mix 45 – 55 Realization from prior price increases2 Volume 25 – 35 Seasonally higher daily demand Two less shipping days Ops & Costs 5 – 15 Riverdale & NORPAC performance | Pine Hill nonrepeat | Ixtac insurance Seasonally higher labor and medical benefit costs Maintenance Outages (10) Timing of planned outages Inputs (30) – (20) Higher OCC and diesel3 costs 4Q26 Adj. EBITDA1 700 - 740 Depreciation & Amortization Expense 245 (Outlook) (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures. Excludes Recycling business Adj. EBITDA. (2) Includes current in-market pricing flowthrough as of October 2026. (3) Diesel prices and associated impact based on IP analysis, CME’s EIA Flat Tax On Highway Diesel Futures and Department of Energy market analysis (as of 9/29/26). 7
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8 PS NA: 2H26 Step Up Updated Full Year ‘26 Guide in a Challenging Environment (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures. Excludes Recycling business Adj. EBITDA. (2) Diesel prices and associated impact based on IP analysis, CME’s EIA Flat Tax On Highway Diesel Futures and Department of Energy market analysis (as of 9/29/26). (3) Includes current in-market pricing flowthrough as of October 2026. $477 $425 $663 $700 - $740 1Q26 2Q26 3Q26 4Q26F PS NA Adj. EBITDA1 ($MM) Prior Full Year Guide as of 2Q26 Earnings $2.35B - $2.45B Headwinds $(145) Diesel2 & Distribution $(55) Volume $(50) Pine Hill $(20) Misc. (Employee medical costs, outage timing) $(20) Price3 +$35 Net Change to Full Year Guide $(110) Updated Full Year Guide as of 3Q26 Earnings $2.27B – $2.31B Full Year 2026 PS NA Adj. EBITDA1 Guide (Approximate $MM)
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PS EMEA: 3Q26 Results ($MM) 2Q26 to 3Q26 COMMENTARY 2Q26 Adj. EBITDA1 182 Price & Mix 27 Higher paper prices for external sales Higher paper price impact on packaging Volume (32) Soft market environment Ops & Costs 76 Progress on cost-out initiatives Maintenance Outages (4) Timing of planned outages Inputs (39) Higher energy 3Q26 Adj. EBITDA1 210 Depreciation & Amortization Expense 283 (Actual) (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures. 9 We are no longer including our existing PS EMEA US GAAP financial guidance in our guidance framework and do not anticipate providing such guidance in the future.
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10 Advancing the Separation (1) Subject to final approval by IP Board of Directors, filing and effectiveness of registration statement with the U.S. SEC and publication of prospectus approved by U.K. FCA. The EMEA management team will host “DS Smith plc – Capital Markets Day” on November 3, 8am – 12pm ET Spin off scenario: ▪ Expect both companies to have investment grade ratings ▪ IP intends to retain approximately 20% ownership stake ▪ DS Smith plc is expected to be separated through the listing of the business on the London Stock Exchange with a Level II ADR program to be listed on the New York Stock Exchange Evaluating potential sale in parallel Separation Updates1
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11 Looking Ahead for International Paper Executing with Discipline and Confident in Our Path Focused on execution in a challenging macro environment Committed to our core strategy and three strategic pillars: Advantaged Cost Position Superior Customer Experience High Relative Supply Position Conviction in our trajectory ACP High RSP SCX (1) See Appendix and Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures. Updated Full Year Guide (approx.) PS NA Adj. EBITDA 1 $2.27B - $2.31B Corporate Expense $100MM Total Company Free Cash Flow 1 $100MM - $200MM
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12 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
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Appendix
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14 PS NA: 3Q26 Results $3,898 $3,688 $3,880 3Q25 2Q26 3Q26 Sales ($MM) $655 $425 $663 3Q25 2Q26 3Q26 Adj. EBITDA1,2 ($MM) 17.5% 12.2% 17.7% 3Q25 2Q26 3Q26 Adj. EBITDA1,2 Margin $(166) $204 $427 3Q25 2Q26 3Q26 Adj. EBIT1 ($MM) (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures. (2) Excludes Recycling business Adj. EBITDA.
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15 PS EMEA: 3Q26 Results $2,310 $2,287 $2,280 3Q25 2Q26 3Q26 Sales ($MM) $209 $182 $210 3Q25 2Q26 3Q26 Adj. EBITDA1 ($MM) 9.0% 8.0% 9.2% 3Q25 2Q26 3Q26 Adj. EBITDA1 Margin $(58) $(80) $(73) 3Q25 2Q26 3Q26 Adj. EBIT1 ($MM) (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures.
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16 3Q25 to 3Q26 Adj. EBITDA1 Bridge ($MM) Packaging Solutions North America 2 Packaging Solutions EMEA 3Q25 Adj. EBITDA1 655 209 Price & Mix 217 20 Volume (176) (33) Ops & Costs 38 31 Maintenance Outages (18) (1) Inputs (53) (16) 3Q26 Adj. EBITDA1 663 210 Depreciation & Amortization Expense 242 (Actual) 283 (Actual) (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures. (2) PS NA Adj. EBITDA excludes Recycling business Adj. EBITDA.
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17 Select Financial Metrics1 ($MM) 2024 2025 2026F Maintenance Outage Expense $371 $390 $432 Capital Expenditures $921 $1,857 Targeting $2,000 – $2,100 Depreciation & Amortization2 $850 $2,747 $2,020 Net Interest Expense $224 $372 $380 Corporate Expense $170 $109 $100 Operational Effective Income Tax Rate3 15% 32% 19-21%3 (1) Before special items. (2) Includes expense of $233 million for 2024 and $958 million for 2025, each associated with mill and plant closures. (3) See Appendix and the Investors section of our website for information on non-GAAP financial measures and definitions. No reconciliation of the anticipated operational effective income tax rate for 2026, a forward-looking non-GAAP financial measure, to the most comparable GAAP measure, is included in this presentation because we are unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts, including forecasting net income for 2026.
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18 Maintenance Outages Expenses | 2026 Forecast ($MM) 1Q26A 2Q26A 3Q26A 4Q26F 2026F Total Impact $71 $205 $76 $80 $432
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19 2Q26 to 3Q26 Adjusted Operating EPS1 0.04 0.37 0.49 (0.23) 0.41 0.37 (0.27) (0.33) (0.11) 2Q26 Price/Mix Volume Operations & Costs Maintenance Outages Input Costs Corporate & Other Items Depreciation & Amortization 3Q26 (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures.
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20 Sales Volume by Product1 | Preliminary and Unaudited Three Months Ended September 30, Three Months Ended June 30, 2026 2025 2026 PS NA (In thousands of short tons) Corrugated Packaging2 2,180 2,261 2,294 Containerboard3 676 767 593 Recycling 412 486 409 Saturated Kraft 7 14 6 Gypsum / Release Kraft 32 56 39 PS NA 3,307 3,584 3,341 PS EMEA (In thousands of short tons) Corrugated Packaging2 1,406 1,406 1,433 Containerboard 363 377 383 PS EMEA 1,769 1,783 1,816 (1) Sales volume includes third party and inter-segment sales and excludes sales of equity investee. (2) Volumes for corrugated box sales reflect consumed tons sold (“CTS”). Board sales by these businesses reflect invoiced tons. (3) Decline primarily attributable to lower export from mill shutdowns. (Note) Table excludes volume reported for NORPAC graphic packaging products.
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21 2026 Operating Earnings Pre-Tax $MM Tax $MM Non-controlling Interest $MM Equity Earnings $MM Net Income $MM Diluted Average Shares MM Diluted EPS Earnings (Loss) from Continuing Operations 1Q26 $93 $(17) - - $76 532 $0.14 2Q26 $(26) $15 - $(1) $(12) 530 $(0.02) 3Q26 $(1,194) $97 - - $(1,097) 530 $(2.07) Net Special Items 1Q26 $26 $(7) - - $19 532 $0.04 2Q26 $54 $(12) - - $42 530 $0.08 3Q26 $1,430 $(125) - - $1,305 530 $2.46 Non-Operating Pension Expense (Income) 1Q26 $(18) $4 - - $(14) 532 $(0.03) 2Q26 $(16) $4 - - $(12) 530 $(0.02) 3Q26 $(15) $4 - - $(11) 530 $(0.02) Adj. Operating Earnings1 1Q26 $101 $(20) - - $81 532 $0.15 2Q26 $12 $7 - $(1) $18 530 $0.04 3Q26 $221 $(24) - - $197 530 $0.37 (1) See Appendix and the Investors section of our website for information on non-GAAP financial measures, definitions, and reconciliations to comparable U.S. GAAP measures.
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(16) (3) (3) (8) (25) (37) (2) Energy Fiber Chemicals Freight OCC North America EMEA 22 Global Input Costs 3Q26 vs 2Q26 | $(94)MM Unfavorable, $(0.27) per share (55) (39) Packaging Solutions North America Packaging Solutions EMEA Energy Fiber Chemicals Freight OCC By Input TypeBy Business
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23 Non-GAAP Financial Measures Beginning 3Q 2026, due to the planned separation of the EMEA packaging business, we are no longer providing PS EMEA US GAAP f inancial guidance as part of our guidance framework and do not anticipate providing such guidance in the future. See the reconciliation of all presented non -GAAP measures to the most directly comparable GAAP financial measures on IP’s website at https://www.internationalpaper.com/investors/financial-reports/quarterly-results. Adjusted Operating Earnings, a non-GAAP financial measure, 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. Adjusted EBIT, a non-GAAP financial measure, earnings (loss) from continuing operations before income taxes and equity earnings, excluding special item s and non-operating pension expense (income), presented as a supplemental measure of our performance. The Company believes this measure provides additional meani ngful information in evaluating the Company’s performance over time, and that other companies use this and/or similar measures for similar purposes. However, Adjusted EBIT has 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. Adjusted EBITDA, a non-GAAP financial measure, earnings (loss) from continuing operations before income taxes and equity earnings and depreciatio n and amortization, excluding special items and non-operating pension expense (income) presented as a supplemental measure of our performance. The Company believes this measure provides additional meaningful information in evaluating the Company’s performance over time, and that other companies use this and/or similar measures for similar purposes. However, Adj usted EBITDA has 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. We use this non -GAAP financial measure at a segment level, along with other factors, to evaluate our segment performance against our peers. We believe that investors use this measure to evaluate our performance relative to our peers. Adjusted EBITDA Margin, a non-GAAP financial measure, presented as a supplemental measure of our performance. The Company believes this measure provides additional meaningful information in evaluating the Company’s performance over time, and that other companies use this and/or similar measures for similar purp oses. However, Adjusted EBITDA Margin has 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. We use this non-GAAP financial measure at a segment level, along with other factors, to evaluate our segment performance against our peers. We believe that investors use this measure to evaluate our pe rformance relative to our peers. 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. Free Cash Flow, a non-GAAP financial measure, presented on a consolidated Company basis, which equals cash provided by (used for) operations les s capital expenditures. The most directly comparable GAAP measure is cash provided by (used for) operations. Operational Effective Income Tax Rate, a non-GAAP financial measure, 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 comp arable GAAP measure is the effective income tax rate. PS NA & PS EMEA Adjusted EBIT, a non-GAAP financial measure, 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, corpor ate 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. PS NA Adjusted EBITDA, a non-GAAP financial measure defined as business segment operating profit before depreciation and amortization and excluding th e Recycling business adjusted EBITDA. Business segment operating profit is defined as earnings (loss) before income taxes and equity earnings, but including the im pact of less than wholly owned subsidiaries, and excluding interest expense, net, net special items and non-operating pension expense. Business segment operating profit at a segment level is a mea sure 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 i n our financial statement footnotes in accordance with ASC 280. The most directly comparable GAAP measure is business segment operating profit (loss).