International Paper

Free cash flow is a non-GAAP financial measure, which equals cash provided by (used for) operations (a GAAP measure) less capital expenditures.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Management utilizes this measure in connection with managing our business and believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Third quarter 2025 earnings (loss) from continuing operations and adjusted operating earnings (loss) (non-GAAP) include $675 million of accelerated deprecation associated with our mill closures and 80 20 strategic actions.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

While demand remained soft across both regions, we took decisive actions to reshape our portfolio exiting non-core businesses, closing facilities, and reinvesting in our most strategic assets.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Management uses these measures to focus on on-going operations, and believes that such measures are useful to investors in assessing the operational performance of the Company and enabling investors to perform meaningful comparisons of past and present consolidated operating results from continuing operations.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

In 2025, International Paper acquired DS Smith creating an industry leader focused on the attractive and growing North American and EMEA regions.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

(c) Includes pre-tax charges of $675 million and $872 million for the three months and nine months ended September 30, 2025, respectively, for accelerated depreciation associated with our mill and 80 20 strategic actions.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

Despite near-term headwinds, Silvernail added, we remain confident in our trajectory.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

These statements are not guarantees of future performance and reflect management s current views and speak only as to the dates the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025

(j) Includes a pre-tax charge of $13 million ($9 million after taxes) for the three months and nine months ended September 30, 2024 for third-party damages related to a warehouse fire in Morocco, pre-tax income of $6 million (before and after taxes) for the three months and nine months ended September 30, 2024 related to the settlement of an Italian antitrust fine, a pre-tax charge of $25 million ($19 million after taxes) for the nine months ended September 30, 2024 for environmental remediation adjustments and a pre-tax charge of $10 million ($7 million after taxes) for the nine months ended September 30, 2024 for a litigation reserve.

SEC original ↗International Paper — Earnings release (8-K exhibit)EX-99Oct 30, 2025