International Paper (IP) DS Smith CMD 2026 summary

Business positioning and separation

• Pan-European packaging platform with ~€8bn revenue, serving customers across 29 countries through 14 paper mills and ~180 packaging sites.

• Separation remains on track for completion within or ahead of the initial 12–15-month timeline announced 29 Jan 2026; planned listing on the London Stock Exchange Main Market with a Level II ADR program on the NYSE.

• Europe is the sector’s second-largest global profit pool; scale, geographic reach and customer relationships position the business among two truly scaled European operators.

Strategy and market

• Mission: build Europe’s most trusted and sustainable packaging business; medium-term market growth expected at 1%-2% annually, supported by GDP, population, sustainability and e-commerce trends.

• Strategy shifts from acquisition-era silos and fragmented operations to an 80/20 model: simplify, segment work and redirect resources to the highest-value customers and activities.

• Medium-term volume growth ambition is at a real GDP-plus rate; guidance does not assume material market improvement.

• Capital allocation prioritizes organic investment and a progressive dividend; bolt-on M&A is not expected in the first 24 months post-listing and would require compelling strategic and return benefits.

Transformation and operations

• EUR 480m annualised cost-savings program, equivalent to ~14% of operating costs; ~EUR 200m aggregate savings targeted for FY2026, with most savings on a run-rate basis by end-2027.

• Packaging transformation includes 29 site closures; footprint reduced 15%, headcount 10% from 2025, and 13% of plant-network volume transferred, with limited volume loss expected.

• More than 1bn sq m of volume, ~13% of total, is being rerouted; ~250 machines are being relocated, with over 60% of planned volume already running at new sites.

• Network redesign pairs low-complexity, high-runner sites with agile plants; planned division-wide productivity improvement ~20%, with the first 10% expected in next year’s budget.

• EUR 550m invested in transformational and strategic projects over two years; ~€1.1bn invested over two years including mill upgrades and lightweight capabilities. Mill investments are largely complete, with future growth capex directed more flexibly to packaging sites.