Companies /Consumer Cyclical

International Paper Company

NYSE: IP Packaging & Containers
$36.66
▼ $0.59 (−1.57%) today
Markets open · 3:42pm ET

Q4 2024 Earnings

Reported Jan 30, 2025, 7:39am ET · SEC source
$-0.02
Miss −300.00%
EPS · est. $0.01
$4.6B
Miss −3.76%
Revenue · est. $4.8B
−5.4%
Trailing market
IP vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%Jan 30Jan 31report 7:39am ETearnings+0.4%−2.3%
−2%0+2%Jan 30Jan 31earnings+0.4%−2.3%
IP −2.3%S&P 500 +0.4%
−2%0+2%Jan 30Jan 31report 7:39am ETearnings+0.7%−2.3%
−2%0+2%Jan 30Jan 31earnings+0.7%−2.3%
IP −2.3%NASDAQ +0.7%
−6%−3%0+3%Jan 29Feb 7report 7:39am ETearnings+0.6%−2.7%
−6%−3%0+3%Jan 29Feb 7earnings+0.6%−2.7%
IP −2.7%S&P 500 +0.6%
−6%−3%0+3%Jan 29Feb 7report 7:39am ETearnings+1.3%−2.7%
−6%−3%0+3%Jan 29Feb 7earnings+1.3%−2.7%
IP −2.7%NASDAQ +1.3%
−1.60%
Day of report
−2.49%
Next session
−2.30%
One week
−10.08%
30 days

S&P 500 over the same 30 days: −4.66%.

Did IP Beat Earnings? Q4 2024 Results

International Paper closed out 2024 with a disappointing fourth quarter, posting an adjusted loss of $0.02 per share against a consensus estimate of $0.03 and revenue of $4.58 billion that fell 3.78% short of the $4.76 billion analysts had expected, with full-year net sales slipping 0.5% to roughly $18.62 billion. The headline miss was driven largely by a brutal quarter in Global Cellulose Fibers, where $215 million in accelerated depreciation tied to the closure of the Georgetown, South Carolina pulp mill helped swing that segment to an operating loss of $250 million from a $40 million profit just one quarter prior. The restructuring pain is far from over; the company subsequently announced the permanent closure of four additional U.S. facilities, cutting roughly 800,000 tons of annual containerboard capacity and affecting 674 employees. Yet management characterized 2025 as a transformational year, pointing to the pending DS Smith integration, continued cost reductions, and strategic alternatives for Global Cellulose Fibers as catalysts intended to accelerate earnings improvement.

Key Takeaways
  • Industrial Packaging profit improved sequentially due to lower recovered fiber costs, lower planned outage costs, and insurance reimbursement from Ixtac, Mexico box plant fire
  • Global Cellulose Fibers significantly impacted by $215 million accelerated depreciation from Georgetown, SC pulp mill closure
  • Lower volumes and lower average sales prices in Global Cellulose Fibers
  • Mill reliability incidents drove higher operating costs in Global Cellulose Fibers
  • EMEA Packaging benefited from seasonally higher volumes, improved product mix, and energy subsidy

“During 2024, we initiated our strategy to deliver profitable growth as the low-cost, most reliable and innovative sustainable packaging solutions provider for our customers. Through a disciplined 80/20 approach, we have restructured our corporate organization, added resources to the business, reduced structural costs through footprint actions and successfully piloted regional box plant optimization. In the quarter, our earnings have stabilized and we intend to accelerate earnings improvement in 2025.”

International Paper CEO, on the earnings call

Forward Guidance & Outlook

Management characterized 2025 as a 'transformational year' with disciplined execution to further reduce costs and balance capacity to demand. The company intends to accelerate earnings improvement in 2025. Key priorities include continued optimization and investment in the box plant system for service excellence, exploring strategic options for the Global Cellulose Fibers business, and integrating DS Smith following the expected January 31, 2025 close of the all-share combination.

IP YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$2.0B$4.0B$4.6B$4.6BRevenue$-99,163,519$-147,000,000Net Income
$0$2.0B$4.0BRevenueNet Income

IP Revenue by Segment

Packaging Solutions North America$3.9B
Packaging Solutions EMEA

Figures from SEC filings and company reports. Not investment advice.