Companies /Consumer Cyclical

International Paper Company

NYSE: IP Packaging & Containers
$36.49
▼ $0.75 (−2.01%) today
Markets closed · 12:24am ET

Q1 2025 Earnings

Reported Apr 30, 2025, 6:59am ET · SEC source
$0.23
Miss −36.11%
EPS · est. $0.36
$5.9B
Miss −5.61%
Revenue · est. $6.3B
−3.6%
Trailing market
IP vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0Apr 30May 1report 6:59am ETearnings+1.5%−5.2%
−3%0Apr 30May 1earnings+1.5%−5.2%
IP −5.2%S&P 500 +1.5%
−6%−3%0+3%Apr 30May 1report 6:59am ETearnings+2.3%−5.2%
−6%−3%0+3%Apr 30May 1earnings+2.3%−5.2%
IP −5.2%NASDAQ +2.3%
−6%−3%0+3%Apr 29May 8report 6:59am ETearnings+2.7%−4.2%
−6%−3%0+3%Apr 29May 8earnings+2.7%−4.2%
IP −4.2%S&P 500 +2.7%
−6%−3%0+3%Apr 29May 8report 6:59am ETearnings+3.6%−4.2%
−6%−3%0+3%Apr 29May 8earnings+3.6%−4.2%
IP −4.2%NASDAQ +3.6%
−4.09%
Day of report
−3.92%
Next session
−3.63%
One week
+3.33%
30 days

S&P 500 over the same 30 days: +6.88%.

Did IP Beat Earnings? Q1 2025 Results

International Paper delivered a disappointing first quarter for 2025, missing on both the top and bottom lines as the weight of its transformational DS Smith acquisition collided with softer-than-expected market demand. Adjusted earnings came in at $0.23 per diluted share, falling well short of the $0.36 consensus estimate, a miss of 36.11%, while revenue of $5.90 billion trailed the $6.25 billion forecast by 5.61%, despite surging 27.8% year over year as DS Smith's January 31 close dramatically reshaped the company's scale. On a GAAP basis, International Paper recorded a net loss of $105 million, weighed down by $271 million in pre-tax charges tied to the closure of its Red River containerboard mill in Louisiana. Free cash flow ran deeply negative at roughly negative $618 million, reflecting heavy transformation-related costs and capital spending of $330 million. With a broader softness rippling across the forestry and packaging sector, CEO Andy Silvernail acknowledged the demand headwinds but pointed to accelerated 80/20 execution and strategic options for the Global Cellulose Fibers business as key levers for improvement ahead.

Key Takeaways
  • DS Smith acquisition contributed significant incremental sales ($127 million NA, $1.2 billion EMEA)
  • Higher sales prices for boxes in North America
  • Cost out initiatives and 80/20 strategic approach
  • Improved mill reliability in Global Cellulose Fibers segment
  • $30 million insurance reimbursement related to Ixtac, Mexico box plant fire
  • Lower recovered fiber costs in North America

“Reflecting on my first year, I am proud of the International Paper team for embracing transformational change and achieving tremendous progress together. We deployed 80/20, focusing on our most valuable customers and aligning our resources accordingly. We launched key initiatives to drive step-change improvement in our performance, and invested to grow in the most attractive markets. Most recently, we welcomed our DS Smith colleagues and outlined our strategic direction at our Investor Day.”

International Paper CEO, on the earnings call

Forward Guidance & Outlook

Management acknowledged softer-than-anticipated market demand in both North America and EMEA regions. In the uncertain macroeconomic environment, the company is focusing on actions within its control as it accelerates 80/20 execution to drive commercial excellence and cost out across the company. Capital spending is expected to increase in line with the 2025 capital spending plan. The company is also exploring strategic options for its Global Cellulose Fibers business.

IP YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$2.0B$4.0B$6.0B$4.6B$5.9BRevenue
$0$2.0B$4.0B$6.0BRevenue

IP Revenue by Segment

Packaging Solutions North America$3.7B
Packaging Solutions EMEA$1.6B

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