DS Smith Leaders to Host Capital Markets Day
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DS Smith (International Paper’s EMEA Packaging Business) Leaders to Host Capital Markets Day on 3 November 2026
Future DS Smith leadership to present investment proposition and medium-term financial targets ahead of its planned separation
London, UK, 3 November 2026 – International Paper Company (NYSE: IP; LSE: IPC) (“International Paper”), a leader in sustainable packaging solutions, announces that the future leadership team of DS Smith, led by Tim Nicholls and Vincent Bonnot, the Chief Executive Officer and Chief Financial Officer, are holding a Capital Markets Day for investors and analysts in London today. The presentation will outline the standalone business, its position as an enhanced pure-play packaging leader within the European market, and its strategy and medium-term financial targets.
The planned separation (the “Separation”) of International Paper’s EMEA Packaging Business remains on track to be completed within or ahead of the initial 12-15 month timeline as outlined in the announcement on 29 January 2026. Once the Separation is complete, the independent company will be known as DS Smith plc and will be listed on the Equity Shares (Commercial Companies) category of the Official List of the FCA and admitted to trading on London Stock Exchange plc’s Main Market for listed securities. DS Smith plc will also establish a Level II ADR program, with the American depositary shares admitted to listing and trading on the New York Stock Exchange.
This press release refers to certain Non-IFRS Measures, which are defined below.
Key Investment Highlights
- DS Smith is a leading pan-European operator in the corrugated packaging industry with c.€8 billion of revenue, serving a diversified customer base across 29 countries
- Significant operational optimisation program and cost reset well underway, driven by simplification and disciplined focus; approximately €480 million of annualised initial cost savings, equivalent to c.14% of operating costs[1], expected to be delivered largely on a run-rate basis by the end of 2027; commercial model enhancements underway
- Strengthened asset base, with large-scale capital investments to upgrade mills largely complete; significant improvement in mill cost position being delivered, freeing future capital for more flexible capital investments
- Attractive shareholder return opportunity with an Adjusted EBITDA (non-IFRS) margin targeted to grow from c.9-10% to mid-teens in the medium term, and a significant improvement in cash generation
- Disciplined capital allocation policy, underpinned by an investment grade balance sheet, focused on improving returns and delivering sustainable, profitable growth; inclusive of a dividend policy that will see dividends growing progressively over the medium term into a payout ratio of 30-50% of adjusted earnings
Tim Nicholls, Chief Executive Officer of DS Smith:
“Today marks a significant milestone as we introduce the new DS Smith. 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. We have created a packaging leader of scale within the attractive European market with a clear plan designed to enhance productivity, deliver growth and generate strong returns.
Our strategy is well underway and embedded across the organisation- we have made significant progress to date, but this is only the start of the journey. Our strategy, coupled with our scale, strength of customer partnerships, and expertise of our people, provide us with confidence that the DS Smith we are introducing today is well-placed to deliver attractive shareholder returns.”
Building on strong foundations to extract and deliver shareholder value
DS Smith combines the legacy EMEA assets of DS Smith and International Paper to form a pan-European platform uniquely positioned to manage customers’ needs at scale, with a footprint of 14 paper mills and approximately 180 packaging sites today. The strength of the business’ foundation is clear, with a strong customer-first approach and proven service levels.
Through enhancing its cost advantage, delivering a superior customer experience and harnessing enhanced scale and capabilities, the business has built a continuous and interconnected strategy for value creation:
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Enhancing cost advantage:
- Strategically investing in mill portfolio to improve performance and drive mills towards leading industry cost positions; these large-scale investments are now largely complete
- Packaging volumes consolidated into fewer, better performing sites; c.15% of packaging sites announced for closure, with volume expected to be largely maintained
- Streamlined operations, both organizationally and through reduction of peripheral activities
- Medium-term savings expected to reach approximately €480 million, with the majority of these to be achieved on a run rate basis by the end of 2027 and expected aggregate cost savings of approximately €200 million, for financial year ending 31 December 2026
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Delivering a superior customer experience:
- Launched a new commercial approach focused on allocating resources to attractive profit pools where there is a clear advantage
- Providing customers with efficiency mitigations in the face of rising cost volatility, supply chain resilience and reliability, and innovative and sustainable solutions
- Creating greater value and leveraging a solid starting point, with On-Time, In-Full delivery of 96% - 97%, Net Promoter Score well ahead of customers' alternative suppliers, and a strong history of continual innovation
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Enhanced scale and capabilities:
- DS Smith operates a high quality, pan-European network of scale including 14 paper mills and approximately 180 packaging plants
- Footprint overhaul complemented by disciplined investments focused on supporting customer needs and enhancing capabilities and asset utilisation
- Approximately €1.1 billion of capital expenditure over the last two years, including strategic investment in light-weight capabilities to leverage market trends
Financial Year 2026 Guidance
Within the presentation, DS Smith will provide its updated guidance for the year-ending 31 December 2026, its medium-term financial targets and capital allocation framework, based on IFRS accounting. The 2026 guidance comprises:
- Expect to deliver Adjusted EBITDA (non-IFRS) [2] of €730 million to €780 million at a margin of 9.0% to 9.7%[3]
- Capital expenditure of €550 million to €570 million
- One off cash costs related to ongoing transformation activities, cost reduction programme and transaction costs of €120 million to €130 million
- DS Smith plc will be separated with an investment grade balance sheet with net debt[4] / 2026E Adjusted EBITDA (non-IFRS) of approximately 2.3x to 2.5x on a post IFRS 16 basis.
Medium-Term Financial Targets
- Revenue growth to be underpinned by volume growth at a GDP+ rate
- Adjusted EBITDA (non-IFRS) margin expansion to a mid-teens level
- Capital expenditure as a percentage of revenue trending towards 6%
- Adjusted Free Cash Flow Conversion (non-IFRS) [5],[6] trending towards a mid-30s percentage, and
- Maintenance of an investment grade balance sheet with net debt / Adjusted EBITDA (non-IFRS) of between 1.5x to 2.5x on a post IFRS 16 basis
DS Smith’s Capital Allocation Framework
Focused on balancing investment for growth, sustainable shareholder returns, and maintaining an investment grade credit rating to maximise financial flexibility:
- Continuous investment in the business to deliver growth, improved profitability and Adjusted Free Cash Flow generation (non-IFRS);
- Delivering regular distributions to shareholders through a dividend policy targeting progressively growing dividends over the medium term to a payout ratio of 30-50% of adjusted earnings;
- Evaluating selective, value accretive bolt-on acquisition opportunities focused on complementary capabilities (over the medium term); and
- Over the medium term the Board will review opportunities to return capital to shareholders, if DS Smith has surplus capital after assessing other pillars of capital allocation policy.
Public filing of 20-F Registration Statement
On 28 October 2026 DS Smith filed a Form 20-F Registration Statement in connection with the Separation. This document contains, amongst other things, the audited historical financial information for DS Smith under IFRS accounting standards for the financial years to 30 April 2023, 2024 and 2025, in addition to the eight months to 31 December 2025 and unaudited financial information for the six months to 30 June 2026. The Form 20F Registration Statement is available at: https://www.dssmith.com/investors/separation-resources
Registering to Attend the Capital Markets Day
For those wishing to attend today’s event in person in London at 1pm local time, please contact investorrelations@dssmith.com
To register for a webcast of today’s event please visit: https://stream.brrmedia.co.uk/broadcast/6aa9548bba91570013153fcd
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Enquiries |
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International Paper |
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Mandi Gilliland |
+1 901 419 4595 |
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Michele Vargas |
+1 901 419 7287 |
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Media |
newsroom@ipaper.com |
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DS Smith |
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Sunita Entwisle (Investor Relations) |
+44 (0)207 756 1800 investorrelations@dssmith.com |
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Patrick Maher (Media) |
+44 (0)207 756 1800 press.office@dssmith.com |
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the use of forward-looking or conditional words such as "expects," "anticipates," "believes," "estimates," "could," "should," "can," "forecast," "outlook," "intend," "look," "may," "will," "remain," "confident," "commit" and "plan" or similar expressions. These forward-looking statements reflect management's current views and are subject to risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied in these forward-looking statements. These risks and uncertainties include the risk that the planned Separation of International Paper's North America and EMEA operations into two independent public companies will not happen on a timely basis or at all, the possibility that, following evaluation of strategic alternatives, the separation of International Paper’s EMEA operations may be effected in a different form than initially contemplated, or International Paper's or DS Smith’s ability to achieve the desired outcome and realize the anticipated benefits from the Separation and the potential uncertainty and disruption during the pendency of the Separation. These forward-looking statements are also subject to the risks and uncertainties contained in International Paper's Annual Report on Form 10-K for the fiscal year ended 31 December 2025, filed with the U.S. Securities and Exchange Commission on 27 February 2026, and subsequent reports filed by International Paper with the SEC, and DS Smith’s Form 20-F Registration Statement filed with the U.S. Securities and Exchange Commission on 28 October 2026, and subsequent reports filed by DS Smith with the SEC. In addition, other risks and uncertainties not presently known to International Paper or DS Smith or that International Paper or DS Smith currently believes to be immaterial could affect the accuracy of any forward-looking statements. International Paper and DS Smith undertake no obligation to publicly update any forward-looking statements contained in this press release, whether as a result of new information, future events or changes in expectations.
Non-IFRS Measures
DS Smith uses certain financial measures that are not defined or recognised under IFRS, being Adjusted EBITDA, Adjusted Net Debt and Adjusted Net Debt/Adjusted EBITDA Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion (“Non-IFRS Measures”), as alternative performance measures to enhance the understanding of its operating results. DS Smith uses these Non-IFRS Measures, together with the most directly comparable IFRS Accounting Standards measures, as a key constituent of its planning process, including: (i) to evaluate its operating performance and value creation, including evaluating performance against key performance indicators and banking and debt covenants; (ii) as a basis for strategic planning and forecasting; and (iii) to comprise targets against which compensation is determined. DS Smith believes that the Non-IFRS Measures provide an enhanced understanding of its results and related trends and, therefore, increased transparency and clarity in respect of the results of its business.
There are no generally accepted principles governing the calculation of these Non-IFRS Measures and the criteria upon which these measures are based can vary from company to company. As such, these Non-IFRS Measures, by themselves, do not provide a sufficient basis to compare DS Smith’s performance with that of other companies and should not be considered in isolation or as a substitute for operating profit or any other measure as an indicator of operating performance, or as an alternative to cash generated from operating activities as a measure of liquidity. DS Smith does not regard these Non-IFRS measures as a substitute for, or superior to, the equivalent IFRS measures that are calculated in accordance with IFRS. Non-IFRS Measures may not be comparable to other similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation or as a substitute for independent analysis of DS Smith’s operating results as reported under IFRS. Save where indicated, these Non-IFRS Measures have been extracted from DS Smith’s management reporting systems but have not been audited or reviewed by external auditors, consultants, independent experts or third parties.
With respect to DS Smith’s full year 2026 financial targets for Adjusted EBITDA and Net Debt/Adjusted EBITDA, a reconciliation of these Non-IFRS Measures to the corresponding IFRS measures is not available without unreasonable effort due to the variability and complexity of certain reconciling items described above that we exclude from these Non-IFRS Measures. The variability of these items may have a significant impact on our future IFRS financial results and, as a result, we are unable to prepare the forward-looking income statement and statement of financial position prepared in accordance with IFRS that would be required to produce such a reconciliation.
[1] Operating costs reflective of labour, distribution, other production costs and other non-production costs, excluding depreciation and amortisation; as per management accounts to 31 December 2025.
[2] Adjusted EBITDA (non-IFRS) is (loss)/profit for the period before income tax, share of profit of equity-accounted investments (net of tax), finance income, finance costs, amortisation, depreciation (including right of use assets) and certain other items such as acquisition and integration costs, restructuring, impairment of goodwill and other non-recurring items.
[3] Range provided is reflective of highly volatile energy backdrop with DS Smith’s main energy exposure being to the Dutch Title Transfer Facility (“TTF”) pricing. The low end of the range provided reflects average TTF pricing of c.€110/MWh and the upper end €70/MWh for the remainder of the year ending 31 December 2026.
[4] Net debt is total financial debt and operating and financial lease liabilities, less cash and cash equivalents; leverage presented as net debt / Adjusted EBITDA (non-IFRS). Excludes borrowings under DS smith’s non-recourse factoring facility.
[5] Adjusted Free cash Flow (non-IFRS) is net cash flow from operating activities, less capital expenditure, plus proceeds from the sale of property, plant and equipment and intangible assets. Note, one-off cash costs are included within Adjusted Free Cash Flow.
[6] Adjusted Free Cash Flow Conversion (non-IFRS) is Adjusted Free Cash Flow (non-IFRS) divided by Adjusted EBITDA (non-IFRS).
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