International Paper Company is executing a strategic split, separating into two public companies to maximize value. This decision is driven by the unique market positioning and customer satisfaction of each independent region, with North America and Europe expected to thrive as standalone entities. The move is a result of the successful implementation of the 8020 strategy, cost optimization, and customer-centric approach, leading to enhanced operational capabilities and competitive positioning. The focus on regional opportunities and tailored strategies will drive long-term profitable growth and shareholder value.

In North America, International Paper has made substantial progress in implementing its 8020 plan, achieving impressive year-over-year growth in 2025. The company is optimizing its footprint, enhancing customer service, and winning market share. While challenges persist, particularly in the cost structure and reliability aspects, ongoing investments and strategic initiatives are aimed at addressing these issues. The decision to spin out the European arm is not directly related to cost challenges, but rather driven by the strategic value and growth potential of each region as independent entities.

The company is focused on commercial initiatives and cost optimization strategies to drive performance in North America and Europe. Significant wins in customer acquisition and improved service quality are expected to contribute to outperforming the industry in 2026. The current guidance is based on existing wins and market trends, with potential for further upside from incremental business wins and enhanced customer experience metrics. The strategic split into two public companies aligns with the company’s goal of maximizing shareholder value and capitalizing on unique market opportunities in each region.

Read more at Yahoo Finance: International Paper (IP) Earnings Call Transcript