International Paper has outlined the financial targets and restructuring programme for its EMEA Packaging Business, which is preparing to become an independent publicly traded company under the DS Smith name.
The details were presented at a Capital Markets Day in London on 3 November 2026, hosted by Tim Nicholls, future Chief Executive Officer of DS Smith plc, and Vincent Bonnot, future Chief Financial Officer, alongside other senior executives.
The business, which combines the former EMEA operations of DS Smith and International Paper, generates approximately €8bn in annual revenue and operates across 29 countries, with a manufacturing network comprising 14 paper mills and approximately 180 packaging sites.
As part of its ongoing restructuring programme, DS Smith confirmed that approximately 15% of its packaging sites have been announced for closure, with production volumes expected to be largely maintained through consolidation into fewer, better-performing facilities.
The company is targeting approximately €480m in annualised cost savings, equivalent to around 14% of operating costs, with the majority expected to be achieved on a run-rate basis by the end of 2027. Aggregate savings of approximately €200m are expected for the financial year ending 31 December 2026.
DS Smith has also invested approximately €1.1bn in capital expenditure over the previous two years, including upgrades to its paper mills and investments in lightweight packaging capabilities. The company stated that its major mill investment programme is now largely complete, allowing future capital expenditure to be directed towards operational improvements and additional capabilities.
For the 2026 financial year, DS Smith expects adjusted EBITDA of €730m to €780m, representing a margin of 9.0% to 9.7%. Capital expenditure is forecast at €550m to €570m, while one-off cash costs associated with restructuring, transformation and transaction activities are expected to total €120m to €130m. Over the medium term, the company is targeting adjusted EBITDA margins in the mid-teens, with capital expenditure expected to move towards 6% of revenue.
“Today marks a significant milestone as we introduce the new DS Smith,” said Nicholls. “We are excited to demonstrate how we have brought together DS Smith’s fundamental historical strengths – including its high quality, scaled pan-European network and strong customer relationships – with International Paper’s enhanced focus on productivity and disciplined capital allocation.”
The proposed separation remains on track to be completed within or ahead of the original 12–15-month timetable outlined in January 2026. Once completed, DS Smith plc is expected to list on the London Stock Exchange, with a Level II American Depositary Receipt programme on the New York Stock Exchange.
The latest update follows International Paper’s confirmation in October that it was also evaluating unsolicited approaches from potential buyers for its EMEA Packaging Business. The company has not confirmed whether these discussions will result in a transaction, and the final structure of the separation remains subject to change.
