International Paper's stock fell 5.05% during intraday trading on Thursday, reversing earlier pre-market gains. The packaging company had initially risen more than 6% in pre-market activity following the announcement of plans to split into two independent public companies.

The sharp decline came after International Paper reported disappointing fourth-quarter 2025 financial results. The company swung to an adjusted operating loss of $0.08 per diluted share, compared to earnings of $0.38 per share in the same period a year earlier. This result significantly missed analyst expectations of $0.27 earnings per share.

International Paper posted a net loss of $2.36 billion for the quarter, which included a substantial $2.47 billion pre-tax non-cash goodwill impairment charge. While net sales of $6.01 billion exceeded analyst estimates of $5.91 billion, investors reacted negatively to the large loss and impairment charge, driving the stock price down during the trading session.