International Paper Company (NYSE: IP; LSE: IPC) held a Capital Markets Day in London on 3 November 2026, where the future leadership of DS Smith — its EMEA Packaging Business — presented the investment case and medium-term financial targets ahead of a planned separation. Led by incoming Chief Executive Officer Tim Nicholls and Chief Financial Officer Vincent Bonnot, the event outlined DS Smith's strategy as a standalone, pure-play European corrugated packaging company with approximately €8 billion in revenue operating across 29 countries. The separation remains on track to complete within or ahead of the initial 12-to-15-month timeline set out in January 2026.

Key Points

  • International Paper Company (LSE: IPC) hosted a Capital Markets Day in London for the future DS Smith plc business
  • DS Smith targets Adjusted EBITDA margin expansion from approximately 9–10% currently to mid-teens in the medium term
  • 2026 Adjusted EBITDA (non-IFRS) guidance set at €730 million to €780 million; capital expenditure guided at €550 million to €570 million
  • Investors should watch for regulatory milestones and the Form 20-F Registration Statement filed on 28 October 2026 ahead of the London Stock Exchange listing

DS Smith Separation From International Paper on Track for London and NYSE Dual Listing

The planned separation of International Paper's EMEA Packaging Business is progressing within the original timeline. Once completed, DS Smith plc will be listed on the Equity Shares (Commercial Companies) category of the FCA Official List and admitted to trading on the London Stock Exchange's Main Market. The company will also establish a Level II ADR programme, with American depositary shares admitted to the New York Stock Exchange. On 28 October 2026, DS Smith filed a Form 20-F Registration Statement with the US Securities and Exchange Commission, containing audited historical financial information under IFRS for financial years to April 2023, 2024 and 2025.

€480 Million Cost Savings Programme and Pan-European Network Underpins DS Smith's Investment Case

DS Smith operates 14 paper mills and approximately 180 packaging sites across Europe. Management has announced an operational optimisation programme targeting approximately €480 million of annualised cost savings, equivalent to approximately 14% of operating costs, expected to be delivered largely on a run-rate basis by the end of 2027. Expected aggregate cost savings for the financial year ending 31 December 2026 are approximately €200 million. The programme includes consolidating packaging volumes into fewer sites, with approximately 15% of packaging sites announced for closure, while volume is expected to be largely maintained. Approximately €1.1 billion of capital expenditure has been deployed over the last two years.

DS Smith 2026 Financial Guidance: Adjusted EBITDA of €730m–€780m With Energy Volatility as Key Variable

For the year ending 31 December 2026, DS Smith guided Adjusted EBITDA (non-IFRS) of €730 million to €780 million, implying a margin of 9.0% to 9.7%. Capital expenditure is guided at €550 million to €570 million, and one-off cash costs related to transformation and transaction activities are expected to be €120 million to €130 million. The company disclosed that the guidance range reflects highly volatile energy conditions, specifically exposure to Dutch Title Transfer Facility gas pricing, with the lower end assuming average pricing of approximately €110 per MWh and the upper end approximately €70 per MWh for the remainder of the year.

Medium-Term Capital Allocation Policy Targets Progressive Dividends and Investment Grade Balance Sheet

DS Smith's medium-term financial targets include revenue growth at a GDP-plus rate and Adjusted Free Cash Flow Conversion (non-IFRS) trending towards a mid-30s percentage. The company intends to maintain an investment grade balance sheet, with net debt to Adjusted EBITDA (non-IFRS) targeted between 1.5x and 2.5x on a post-IFRS 16 basis at separation, estimated at approximately 2.3x to 2.5x based on 2026 guidance. The dividend policy targets progressively growing distributions over the medium term towards a payout ratio of 30% to 50% of adjusted earnings. Capital expenditure as a percentage of revenue is expected to trend towards 6%.