International Paper sets financial targets for new DS Smith ahead of spinoff
IP•International Paper set targets for the standalone DS Smith, including about €480 million in annual cost savings by the end of 2027 and 2026 core profit of €730 million to €780 million. The separation remains on track to complete within or ahead of its 12-15 month timeline.
1. Targets for new company
The standalone DS Smith, combining the legacy EMEA operations of the former DS Smith with International Paper’s EMEA packaging assets, is targeting roughly €480 million in annual cost savings by the end of 2027. It expects its core profit margin to rise from around 9% to 10% currently to the mid-teens over the medium term, with significantly stronger cash flow.
2. Separation plans
International Paper said the separation remains on track to complete within or ahead of the 12-15 month timeline. The new company expects 2026 core profit of €730 million to €780 million and plans to list on the London Stock Exchange’s main market, with a secondary listing in New York. International Paper is also weighing a sale of the EMEA packaging business after unsolicited approaches and early-stage talks with potential bidders.
