You’ve probably seen the headlines about the paper industry lately, but they don't always tell the full story. Honestly, if you look at International Paper right now, you aren't just looking at a company that makes cardboard boxes. You’re looking at a legacy giant that basically decided to blow up its own floor plan to survive a changing world.
It's been a wild ride.
In early 2026, the big story isn't just about trees; it’s about a massive $9.9 billion gamble that finally crossed the finish line. The international paper company news cycle has been dominated by the fallout and the integration of DS Smith, the London-based packaging firm IP officially swallowed up. If you’re wondering why a Memphis-based company would spend that much on a European rival, the answer is simple: they had to.
The DS Smith Merger: Why It Actually Happened
For years, International Paper was a bit of a "everything" company. They did cellulose fibers, pulp, paper, and boxes. But under CEO Andy Silvernail—who took over in 2024 and immediately started moving fast—the company decided to stop being a jack-of-all-trades.
The DS Smith acquisition, which closed in early 2025 and is now fully operational in 2026, was the crown jewel of this plan. By merging, they didn’t just grow; they became the undisputed global leader in sustainable packaging. We’re talking about a combined entity where 90% of the revenue comes from fiber-based packaging.
That matters because plastic is becoming the enemy of the state in many markets.
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Silvernail has been pretty blunt about it. During an investor call, he basically said that "crappy assets" were dragging the company down. He’d rather "run tight" than keep old, inefficient mills running just for the sake of capacity. That’s why we saw the $1.5 billion sale of the Global Cellulose Fibers (GCF) business to AIP late last year. They cleared out the basement to make room for the new stuff.
The Real Cost of "Streamlining"
It hasn’t been all celebrations and synergy. Far from it.
If you live near Compton, California, or Louisville, Kentucky, the international paper company news is a lot more personal. By January 2026, those facilities officially went dark. Over 200 people lost their jobs in those two closures alone.
It’s a brutal reality of the "80/20" strategy Silvernail brought from his days at IDEX and Madison Industries. The idea is that 80% of your value comes from 20% of your activities. So, the company is cutting the bottom 20%—the facilities that aren't integrated, the ones that cost too much to maintain, and the ones that aren't close enough to the customers.
The Numbers Nobody Talks About
Let's talk money, because that's where the drama usually hides.
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Last year, specifically Q3 2025, IP reported a massive net loss of $1.1 billion. On paper, that looks like a disaster. But if you dig into the SEC filings, you see that $675 million of that was "accelerated depreciation."
Basically, they are paying the price now to close down those underperforming mills—like the ones in Savannah and Riceboro, Georgia—so they can reinvest that cash into better sites. They’re betting big on the Riverdale mill conversion, which is supposed to be done by the third quarter of 2026.
- The 2026 Target: They are chasing $600 million in incremental EBITDA (that’s a fancy word for "cash we can actually use").
- The Stock Market Reaction: Investors are cautiously optimistic. After hitting lows near $35 in late 2025, the stock has been hovering in the $42-$43 range as of mid-January 2026.
- The Dividend: Despite all the restructuring, they’ve managed to keep the dividend yield around 4.3%. That’s the only thing keeping many long-term holders from jumping ship.
Why Sustainable Packaging is the Only Game in Town
You might wonder why they are closing plants while the world is buying more stuff online than ever. It's because the type of packaging is changing.
In 2026, consumers don't want a "Russian Nesting Doll" of plastic inside a box. They want mono-materials—one substrate that can be tossed in one recycling bin. International Paper is leaning into this with digital tracking tools. These tools now let big clients see exactly what their carbon footprint looks like for every batch of boxes.
It’s kind of a "smart packaging" revolution. They are even experimenting with QR-enabled packs and NFC tags for high-end goods. It turns a boring brown box into a data-rich interface.
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Is the Transformation Actually Working?
Honestly, it’s too early to say it’s a total success, but the momentum is there. The North American segment saw a 40% jump in adjusted EBITDA recently. That suggests the "cut the fat" strategy is doing what it's supposed to.
However, Europe is a different beast.
In the U.S., International Paper owns the mills and the box plants. In Europe, thanks to the DS Smith deal, they are still only about 50% integrated. Silvernail has admitted that restructuring in Europe is slower because of the "consultation processes" (basically, you can't just fire everyone and close a plant overnight like you can in the States).
What You Should Do Next
If you’re watching the international paper company news for investment or career reasons, here is the ground-level advice:
- Watch the Q4 Earnings: Set a reminder for January 29, 2026. That’s when the full-year 2025 results drop, and it will be the first real look at the combined IP/DS Smith ledger.
- Focus on Margins, Not Sales: Don’t get distracted by the $24 billion revenue target. Watch the packaging margin. Silvernail wants it at 20%. If it stays stuck at 13-14%, the strategy is failing.
- Monitor the Riverdale Mill: The conversion of the Riverdale mill is the litmus test for their capital investment strategy. If it stays on track for Q3 2026, it shows they can actually execute on the ground.
The paper industry isn't dying; it's just becoming an tech-integrated logistics business. International Paper is betting everything that they can be the ones to lead it.