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International Paper sets financial targets for new DS Smith ahead of spinoff

By Reuters News

Nov 3 (Reuters) - International Paper IP.N on Tuesday laid out financial targets for DS Smith, the standalone company being carved out of its Europe, Middle East and Africa packaging business, and said the separation remained on track to complete within or ahead of the 12-15 month timeline.

  • The new DS Smith combines the legacy EMEA operations of the old DS Smith, which International Paper bought for $7.2 billion in 2025, with International Paper's own EMEA packaging assets, forming a pan-European corrugated packaging operator

  • The new company is targeting roughly €480 million (about $537 million) in annual cost savings by the end of 2027 and will list on the London Stock Exchange's main market, with a secondary listing in New York.

  • The new business expects to expand its core profit margin from around 9% to 10% currently to the mid-teens over the medium term, and to generate significantly stronger cash flow

  • For 2026, DS Smith's core profit is expected to be €730 million to €780 million

  • International Paper is also weighing a sale of the EMEA packaging business as an alternative to the spinoff, saying last month it was in early-stage talks with potential bidders after unsolicited approaches


($1 = 0.8937 euros)

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