IP · CIK 51434
What International Paper Company told the SEC could break it.
International Paper's disclosures center on input costs and a sweeping corporate transformation. As a packaging maker it is exposed to commodity-price volatility in energy and wood fiber — a 10% adverse move in the prices underlying its commodity contracts would have cost about $40 million at year-end 2025 — and to 2025 U.S. tariffs (notably on China) that risk retaliatory measures disrupting cross-border flows of its products and inputs. Structurally it is in flux: it completed the roughly $9.9 billion DS Smith acquisition in January 2025 and in January 2026 announced plans to separate into two public companies (North American and EMEA packaging), carrying significant integration and separation-execution risk. It also flags about $270 million in aggregate probable environmental liability, including Superfund sites such as Cass Lake, Minnesota and the Kalamazoo River PCB site.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- environmental / Superfund remediation liabilitiesmedium
IP carries ~$270M aggregate probable environmental liability, including Superfund/remediation sites such as Cass Lake, MN ($47M) and the Kalamazoo River PCB site (IP is a PRP), with potential for material additional costs.
“International Paper's estimated probable liability for these environmental matters, totaled approximately $ 270 million and $ 279 million in the aggregate as of December 31, 2025 and December 31, 2024, respectively. Cass Lake: One matter involves a closed wood-treatment facility located in Cass Lake, Minnesota. ... The estimated liability for the Cass Lake superfund site was $ 47 million”
SEC filing →As of 2026 - import tariffs (China) and retaliationmedium
The U.S. raised and broadened tariffs in 2025 (notably on China imports), straining trade relations and raising the risk of retaliatory tariffs on U.S. goods that could restrict cross-border flow of IP's products/inputs.
“the U.S. government in 2025 increased certain rates and broadened the scope of certain tariffs imposed on goods imported into the U.S., such as from China, which may strain international trade relations and increase the risk that foreign governments implement retaliatory tariffs on goods imported from the United States.”
Commodity & input dependence
- energy and fiber commodity pricesmedium
IP is exposed to commodity-price volatility (energy, wood fiber, recycled OCC); it uses commodity swaps/forward purchase contracts, and a 10% adverse move in quoted commodity prices for those contracts would have cost ~$40M at year-end 2025.
“COMMODITY PRICE RISK The objective of our commodity exposure management is to minimize volatility in earnings due to large fluctuations in the price of commodities. Commodity swap or forward purchase contracts may be used to manage risks associated with market fluctuations in energy prices. ... The potential loss in fair value from a 10% adverse change in quoted commodity prices for these contracts would have been approximately $40 million and $2 million at December 31, 2025 and 2024, respectively.”
SEC filing →As of 2026
Other disclosures
- DS Smith acquisition and planned EMEA/NA separationmedium
IP completed the ~$9.9B DS Smith acquisition (Jan 2025, ~34% dilution) and on Jan 29, 2026 announced plans to split into two public companies (Packaging Solutions NA and EMEA) — large integration, separation-execution and cost/disruption risk.
“On January 29, 2026, the Company announced a plan to create two independent, publicly traded companies through the separation of its PS NA and PS EMEA businesses.”
SEC filing →As of 2026
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