International Paper Says Separation Of EMEA Packaging Business On Track To Complete

What happened

International Paper said the separation of its EMEA packaging business is on track to finish within or ahead of its initial 12-15 month timeline. The independent company will be called DS Smith plc and list on the London Stock Exchange's main market.

Confirmed

Global impact / market context

A separate DS Smith gives investors a pure packaging company with its own targets: 2026 adjusted EBITDA of EUR 730 million to EUR 780 million, capital spending of EUR 550 million to EUR 570 million, and a dividend payout ratio of 30-50% of adjusted earnings.

Analyst inference

The plan creates two listed companies from one, so investor attention shifts to how each is valued. DS Smith targets profit margin expansion to mid-teens over the medium term while capital spending trends toward 6% of revenue, signaling lower relative investment after separation.

Analyst inference

What to watch

1. The separation is expected to complete within or ahead of the initial 12-15 month timeline, so the listing date and final structure are the key scheduled events to track. Confirmed
2. DS Smith plans to list on the London Stock Exchange's main market and set up a Level II ADR program, which means US-based shares would trade on the New York Stock Exchange. Proposed
3. Watch whether DS Smith delivers the 2026 outlook, including EUR 120 million to EUR 130 million of cost reduction and transaction costs, since separation expenses could pressure near-term profit. Analyst inference

Evidence

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